ADC Therapeutics

List‑price dynamics in U.S. oncology are favorable and product‑level gross margins are high (FY 2025 cost of product sales of 5.8 million dollars on 73.6 million dollars of product revenue; Q1 2026 cost of product sales of 3.6 million dollars on 20.0 million dollars of product revenue).

However, payer scrutiny, safety headlines, and multiple therapeutic substitutes limit latent pricing power. Royalty obligations to HCR do not reduce list price flexibility but they compress sustainable free cash flow, which we view as an indirect constraint on effective pricing power.