Swiss biotech firm ADC Therapeutics weighs IPO, sale

HONG KONG: ADC Therapeutics SA, a Swiss biotechnology company whose backers include UK drugmaker AstraZeneca Plc, is in the early stages of exploring options including an initial public offering (IPO) amid growing interest in innovative cancer treatments, according to people familiar with the matter.

ADC is working with advisers at Morgan Stanley on a preliminary review, the people said, asking not to be identified because the deliberations are private.

The Lausanne-based company – which specialises in treatments that target cancer cells while sparing healthy ones – is also considering a potential sale among the options, they said.

The business could fetch an estimated value of about US$2bil, one of them said.

A potential listing could take place in the US, though the venue, timing and size of the share sale hadn’t been determined, the people said.

Deliberations about a listing or sale are preliminary and no final decisions had been made, they said.

ADC didn’t comment on speculation about its financing alternatives, a spokesman said. A representative for Morgan Stanley declined to comment.

ADC raised US$200mil in October from investors including AstraZeneca, Auven Therapeutics and investment funds Redmile Group and Wild Family Office, bringing its total fundraising to about US$455mil since its inception in 2012.

The company has capital through the end of 2019 and would weigh a Nasdaq listing as it pursues six clinical development programmes in 2018, chief executive officer Chris Martin said in an interview at the time. — Bloomberg