The Swiss biotech ADC Therapeutics has withdrawn its application for a €182M ($200M) Nasdaq IPO, citing adverse market conditions caused by global manufacturing slowdowns.
ADC Therapeutics declined to comment on the specific market situation. Its withdrawal is likely due to slumps in European and US stock markets seen earlier this week caused by drops in manufacturing and service industry productivity. Analysts have also reported a fall in stock markets related to ongoing political crises such as Brexit and the impeachment inquiry around the US President Donald Trump.
The Nasdaq IPO had been planned as a follow-up to ADC Therapeutics’ €271M Series E fundraising in June. According to ADC Therapeutics’ CEO, Chris Martin, the company is confident in its financial situation despite the withdrawal. “We are fortunate to have a strong balance sheet, highly supportive investors, alternative financing options and a steady flow of forthcoming milestones, all of which factored into our decision,” he stated.
ADC Therapeutics develops drugs for cancer called antibody-drug conjugates. These drugs are made of an antibody attached to a chemotherapy drug, and are designed to destroy cancer cells without harming other healthy cells as much as conventional chemotherapy. The company’s lead drug is currently in phase II trials for treating the blood cancer diffuse large B-cell lymphoma.
ADC Therapeutics wasn’t the only biotech to exercise caution on Nasdaq. The US oncology company Monopar Therapeutics also backed out of its planned €36M ($40M) Nasdaq IPO this week.
In contrast to ADC Therapeutics and Monopar Therapeutics, the US-Swedish biopharmaceutical company Aprea Therapeutics went ahead with its own IPO on Nasdaq this week. Aprea raised €68M ($75M) to fund the development of its cancer treatments and its stock price has risen by around 30% since it launched.
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