Buy­ing time to catch up on sales, ADC Ther­a­peu­tics takes on $175M loan

With sales of its first an­ti­body-drug con­ju­gate falling be­low ex­pec­ta­tions, ADC Ther­a­peu­tics is tak­ing on a $175 mil­lion loan and buy­ing it­self some time.

Owl Rock and Oak Tree are pro­vid­ing the loan, which is main­ly be­ing used to re­pay con­vert­ible cred­it notes held by Deer­field. Back in 2020 ADC set up a cred­it fa­cil­i­ty with Deer­field that gave it $115 mil­lion to pre­pare for com­mer­cial­iza­tion of what be­came Zyn­lon­ta, with op­tions to re­pay it ei­ther in cash or shares.

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