Homburger: ADC Therapeutics in an agreement with HealthCare Royalty

ADC Therapeutics, a Lausanne-based commercial-stage oncology-focused biotechnology company, has entered into a royalty purchase agreement with HealthCare Royalty. Under the agreement, ADC Therapeutics will receive up to USD 325 million. Initial payment of USD 225 million upon closing and is eligible to receive an additional USD 75 million upon the first commercial sale of its antibody drug conjugates Zynlonta (loncastuximab tesirine) in Europe and an additional USD 25 million upon the achievement of a near-term commercial milestone for Zynlonta.  

HealthCare Royalty will receive a 7% royalty on worldwide net sales and licensing revenue from Zynlonta, with the exception of greater China, Singapore and South Korea, and a 7% royalty on worldwide net sales and licensing revenue from Cami (camidanlumab tesirine) (subject to limited carve-outs) 

Homburger advises ADC Therapeutics on the Swiss law and tax aspects of the transaction. The Homburger team is led by partner Daniel Häusermann (corporate / m&a, capital markets, pictured) and includes partners Dieter Grünblatt and Reto Heuberger (tax), Georg Rauber (ip / it), Benjamin Leisinger (financing and investment products) as well as associates Estelle Piccard (corporate / m&a, capital markets), David Borer and Stefan Bindschedler (both financing and investment products).