Why Is ADC Therapeutics Stock Falling On Friday?

ADC Therapeutics SA (NYSE:ADCT) stock is continuing its downward trajectory on Friday, following an intense market reaction to newly released clinical data.

The ongoing slide hits retail traders on the heels of a massive selloff that began during Thursday’s session, where the stock collapsed 49.68%. Investors continue to digest structural safety issues found in the biotech company’s latest study.

Mixed Trial Results Yield Fatal Safety Signals

The stock underperformance stems directly from the topline results of the Phase 3 LOTIS-5 confirmatory trial. The study evaluated ZYNLONTA in combination with rituximab for patients suffering from relapsed or refractory diffuse large B-cell lymphoma (DLBCL).

While the drug combination successfully met its primary endpoint—delivering a median progression-free survival of 6.1 months versus 4.7 months for the R-GemOx control arm—serious adverse events severely compromised the outcome. ADC Therapeutics confirmed that serious, treatment-discontinuing, and Grade 5 (fatal) adverse events were notably higher in the ZYNLONTA treatment group.

Wall Street Reacts With Steep Downgrade

The regulatory uncertainty triggered immediate action on Wall Street. On Thursday, RBC Capital directly downgraded ADC Therapeutics to Sector Perform from its previous Outperform rating.

RBC Capital adjusted its financial forecast for the oncology-focused pharmaceutical firm, slashing its price forecast down to $2.

Critical Technical Levels for ADC Therapeutics Stock

The bigger picture remains bearish: ADCT is down 67.15% over the past 12 months and is trading far below its major trend gauges, including the 20-day SMA at $3.27 and the 50-day SMA at $3.64. It's also about 70% below the 200-day SMA ($3.82), which keeps rallies vulnerable to being sold into rather than turning into sustained reversals.

Momentum is extremely stretched, with RSI at 12.18—deeply oversold.

From a structure standpoint, the stock is now trading below its prior 52-week low of $1.31, which is a classic sign that longer-term support has failed and price discovery is underway.

ADCT Stock Price Activity: ADC Therapeutics shares were down 14.02% at $1.13 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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