# EDGAR Filing Document

**Accession Number:** 0001771910
**File Stem:** 0001628280-23-008056
**Filing Date:** 2023-3
**Character Count:** 1525590
**Document Hash:** 3803f248e5bd260cfb39e7c858b410c9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-008056.hdr.sgml**: 20230315

**ACCESSION NUMBER**: 0001628280-23-008056

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 205

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230315

**DATE AS OF CHANGE**: 20230315

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ADC Therapeutics SA
- **CENTRAL INDEX KEY:** 0001771910
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** V8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39071
- **FILM NUMBER:** 23734722

**BUSINESS ADDRESS:**
- **STREET 1:** BIOPOLE
- **STREET 2:** ROUTE DE LA CORNICHE 3B
- **CITY:** EPALINGES
- **STATE:** V8
- **ZIP:** 1066
- **BUSINESS PHONE:** 41 21 653 02 00

**MAIL ADDRESS:**
- **STREET 1:** BIOPOLE
- **STREET 2:** ROUTE DE LA CORNICHE 3B
- **CITY:** EPALINGES
- **STATE:** V8
- **ZIP:** 1066

?xml version="1.0" ? adc-20221231

<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 20-F**

(Mark One)

---

| | |
|:---|:---|
| ☐ | **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| | **OR** |

---

---

| | |
|:---|:---|
| ☒ | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** <br>**For the fiscal year ended December 31, 2022** |
| | **OR** |

---

---

| | |
|:---|:---|
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| | **OR** |

---

☐ **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Commission file number: **001-39071**

**ADC Therapeutics SA**

*(Exact name of Registrant as specified in its charter)*

**Switzerland**

*(Jurisdiction of incorporation or organization)*

**Biopôle**

**Route de la Corniche 3B** 

**1066 Epalinges** 

**Switzerland**

*(Address of principal executive offices)*

**Jose "Pepe" Carmona** 

**ADC Therapeutics America, Inc.**

**430 Mountain Avenue, 4th Floor**

**Murray Hill, NJ 07974**

**(908) 546-5556**

*(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)*

**Securities registered or to be registered pursuant to Section 12(b) of the Act:**

Title of each class Trading Symbol Name of each exchange on which registered <br> Common Shares, par value CHF 0.08 per share ADCT New York Stock Exchange

**Securities registered or to be registered pursuant to Section 12(g) of the Act:**

None

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:**

None

Indicate the number of outstanding shares of each of the issuer's classes of capital stock or common stock as of the close of the period covered by the annual report.

Common shares: 80,642,527

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

□ Yes ⌧ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

□ Yes ⌧ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

⌧ Yes □ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

⌧ Yes □ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ <br> Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards † provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

US GAAP ☐ International Financial Reporting Standards Other ☐ <br> as issued by the International Accounting Standards Board ☒

If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow.

□ Item 17 □ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ⌧ No

------

<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

---

| | | |
|:---|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| <u>[FORWARD-LOOKING STATEMENTS](#i42f66f9a31784fbdb78f7a61e7467d0f_13)</u> | <u>[FORWARD-LOOKING STATEMENTS](#i42f66f9a31784fbdb78f7a61e7467d0f_13)</u> | [iii](#i42f66f9a31784fbdb78f7a61e7467d0f_13) |
| <u>[PART I](#i42f66f9a31784fbdb78f7a61e7467d0f_16)</u> | <u>[PART I](#i42f66f9a31784fbdb78f7a61e7467d0f_16)</u> | [iv](#i42f66f9a31784fbdb78f7a61e7467d0f_16) |
| <u>[ITEM 3. KEY INFORMATION](#i42f66f9a31784fbdb78f7a61e7467d0f_40)</u> | <u>[ITEM 3. KEY INFORMATION](#i42f66f9a31784fbdb78f7a61e7467d0f_40)</u> | [1](#i42f66f9a31784fbdb78f7a61e7467d0f_40) |
| | <u>D. Risk Factors</u> | [1](#i42f66f9a31784fbdb78f7a61e7467d0f_52) |
| <u>[ITEM 4. INFORMATION ON THE COMPANY](#i42f66f9a31784fbdb78f7a61e7467d0f_55)</u> | <u>[ITEM 4. INFORMATION ON THE COMPANY](#i42f66f9a31784fbdb78f7a61e7467d0f_55)</u> | [24](#i42f66f9a31784fbdb78f7a61e7467d0f_55) |
| | <u>[A. History and Development of the Company](#i42f66f9a31784fbdb78f7a61e7467d0f_58)</u> | [24](#i42f66f9a31784fbdb78f7a61e7467d0f_58) |
| | <u>[B. Business Overview](#i42f66f9a31784fbdb78f7a61e7467d0f_61)</u> | [25](#i42f66f9a31784fbdb78f7a61e7467d0f_61) |
| | <u>[C. Organizational Structure](#i42f66f9a31784fbdb78f7a61e7467d0f_64)</u> | [77](#i42f66f9a31784fbdb78f7a61e7467d0f_64) |
| | <u>[D. Property, Plant and Equipment](#i42f66f9a31784fbdb78f7a61e7467d0f_67)</u> | [77](#i42f66f9a31784fbdb78f7a61e7467d0f_67) |
| <u>[ITEM 4A. UNRESOLVED STAFF COMMENTS](#i42f66f9a31784fbdb78f7a61e7467d0f_73)</u> | <u>[ITEM 4A. UNRESOLVED STAFF COMMENTS](#i42f66f9a31784fbdb78f7a61e7467d0f_73)</u> | [77](#i42f66f9a31784fbdb78f7a61e7467d0f_73) |
| <u>[ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#i42f66f9a31784fbdb78f7a61e7467d0f_76)</u> | <u>[ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#i42f66f9a31784fbdb78f7a61e7467d0f_76)</u> | [78](#i42f66f9a31784fbdb78f7a61e7467d0f_76) |
| | <u>[A. Operating Results](#i42f66f9a31784fbdb78f7a61e7467d0f_79)</u> | [78](#i42f66f9a31784fbdb78f7a61e7467d0f_79) |
| | <u>[B. Liquidity and capital resources](#i42f66f9a31784fbdb78f7a61e7467d0f_82)</u> | [86](#i42f66f9a31784fbdb78f7a61e7467d0f_82) |
| | <u>[C. Research and Development, Patents and Licenses, etc](#i42f66f9a31784fbdb78f7a61e7467d0f_85)</u> | [88](#i42f66f9a31784fbdb78f7a61e7467d0f_85) |
| | <u>[D. Trend Information](#i42f66f9a31784fbdb78f7a61e7467d0f_88)</u> | [88](#i42f66f9a31784fbdb78f7a61e7467d0f_88) |
| | <u>[E. Critical accounting estimates](#i42f66f9a31784fbdb78f7a61e7467d0f_91)</u> | [88](#i42f66f9a31784fbdb78f7a61e7467d0f_91) |
| <u>[ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#i42f66f9a31784fbdb78f7a61e7467d0f_94)</u> | <u>[ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#i42f66f9a31784fbdb78f7a61e7467d0f_94)</u> | [93](#i42f66f9a31784fbdb78f7a61e7467d0f_94) |
| | <u>[A. Directors and Senior Management](#i42f66f9a31784fbdb78f7a61e7467d0f_115)</u> | [93](#i42f66f9a31784fbdb78f7a61e7467d0f_97) |
| | <u>[B. Compensation](#i42f66f9a31784fbdb78f7a61e7467d0f_100)</u> | [96](#i42f66f9a31784fbdb78f7a61e7467d0f_100) |
| | <u>[C. Board Practices](#i42f66f9a31784fbdb78f7a61e7467d0f_103)</u> | [98](#i42f66f9a31784fbdb78f7a61e7467d0f_103) |
| | <u>[D. Employees](#i42f66f9a31784fbdb78f7a61e7467d0f_106)</u> | [101](#i42f66f9a31784fbdb78f7a61e7467d0f_106) |
| | <u>[E. Share Ownership](#i42f66f9a31784fbdb78f7a61e7467d0f_109)</u> | [101](#i42f66f9a31784fbdb78f7a61e7467d0f_109) |
| <u>[ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#i42f66f9a31784fbdb78f7a61e7467d0f_112)</u> | <u>[ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#i42f66f9a31784fbdb78f7a61e7467d0f_112)</u> | [101](#i42f66f9a31784fbdb78f7a61e7467d0f_112) |
| | <u>[A. Major Shareholders](#i42f66f9a31784fbdb78f7a61e7467d0f_115)</u> | [101](#i42f66f9a31784fbdb78f7a61e7467d0f_115) |
| | <u>[B. Related Party Transactions](#i42f66f9a31784fbdb78f7a61e7467d0f_118)</u> | [104](#i42f66f9a31784fbdb78f7a61e7467d0f_118) |
| <u>[ITEM 8. FINANCIAL INFORMATION](#i42f66f9a31784fbdb78f7a61e7467d0f_124)</u> | <u>[ITEM 8. FINANCIAL INFORMATION](#i42f66f9a31784fbdb78f7a61e7467d0f_124)</u> | [104](#i42f66f9a31784fbdb78f7a61e7467d0f_124) |
| | <u>[A. Consolidated Statements and Other Financial Information](#i42f66f9a31784fbdb78f7a61e7467d0f_127)</u> | [104](#i42f66f9a31784fbdb78f7a61e7467d0f_127) |
| | <u>[B. Significant Changes](#i42f66f9a31784fbdb78f7a61e7467d0f_130)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_130) |
| <u>[ITEM 9. THE OFFER AND LISTING](#i42f66f9a31784fbdb78f7a61e7467d0f_133)</u> | <u>[ITEM 9. THE OFFER AND LISTING](#i42f66f9a31784fbdb78f7a61e7467d0f_133)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_133) |
| | <u>[A. Offering and Listing Detail](#i42f66f9a31784fbdb78f7a61e7467d0f_136)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_136) |
| | <u>[C. Markets](#i42f66f9a31784fbdb78f7a61e7467d0f_142)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_142) |
| <u>[ITEM 10. ADDITIONAL INFORMATION](#i42f66f9a31784fbdb78f7a61e7467d0f_154)</u> | <u>[ITEM 10. ADDITIONAL INFORMATION](#i42f66f9a31784fbdb78f7a61e7467d0f_154)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_154) |
| | <u>[B. Memorandum and Articles of Association](#i42f66f9a31784fbdb78f7a61e7467d0f_160)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_160) |
| | <u>[C. Material Contracts](#i42f66f9a31784fbdb78f7a61e7467d0f_163)</u> | [105](#i42f66f9a31784fbdb78f7a61e7467d0f_163) |
| | <u>[D. Exchange Controls](#i42f66f9a31784fbdb78f7a61e7467d0f_166)</u> | [109](#i42f66f9a31784fbdb78f7a61e7467d0f_166) |
| | <u>[E. Taxation](#i42f66f9a31784fbdb78f7a61e7467d0f_169)</u> | [109](#i42f66f9a31784fbdb78f7a61e7467d0f_169) |
| | <u>[H. Documents on Display](#i42f66f9a31784fbdb78f7a61e7467d0f_178)</u> | [114](#i42f66f9a31784fbdb78f7a61e7467d0f_178) |
| <u>[ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i42f66f9a31784fbdb78f7a61e7467d0f_184)</u> | <u>[ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i42f66f9a31784fbdb78f7a61e7467d0f_184)</u> | [115](#i42f66f9a31784fbdb78f7a61e7467d0f_184) |
| <u>[ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#i42f66f9a31784fbdb78f7a61e7467d0f_187)</u> | <u>[ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#i42f66f9a31784fbdb78f7a61e7467d0f_187)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_187) |
| <u>[PART II](#i42f66f9a31784fbdb78f7a61e7467d0f_202)</u> | <u>[PART II](#i42f66f9a31784fbdb78f7a61e7467d0f_202)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_202) |
| <u>[ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#i42f66f9a31784fbdb78f7a61e7467d0f_205)</u> | <u>[ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#i42f66f9a31784fbdb78f7a61e7467d0f_205)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_205) |
| | <u>[A. Defaults](#i42f66f9a31784fbdb78f7a61e7467d0f_208)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_208) |
| | <u>[B. Arrears and Delinquencies](#i42f66f9a31784fbdb78f7a61e7467d0f_211)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_211) |
| <u>[ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#i42f66f9a31784fbdb78f7a61e7467d0f_214)</u> | <u>[ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#i42f66f9a31784fbdb78f7a61e7467d0f_214)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_214) |
| | <u>[A. Use of Proceeds](#i42f66f9a31784fbdb78f7a61e7467d0f_217)</u> | [116](#i42f66f9a31784fbdb78f7a61e7467d0f_217) |
| <u>[ITEM 15. CONTROLS AND PROCEDURES](#i42f66f9a31784fbdb78f7a61e7467d0f_220)</u> | <u>[ITEM 15. CONTROLS AND PROCEDURES](#i42f66f9a31784fbdb78f7a61e7467d0f_220)</u> | [117](#i42f66f9a31784fbdb78f7a61e7467d0f_220) |
| | <u>[A. Disclosure Controls and Procedure](#i42f66f9a31784fbdb78f7a61e7467d0f_223)</u> | [117](#i42f66f9a31784fbdb78f7a61e7467d0f_223) |
| | <u>[B. Management's Annual Report on Internal Control over Financial Reporting](#i42f66f9a31784fbdb78f7a61e7467d0f_226)</u> | [117](#i42f66f9a31784fbdb78f7a61e7467d0f_226) |
| | <u>[C. Attestation Report of the Registered Public Accounting Firm](#i42f66f9a31784fbdb78f7a61e7467d0f_229)</u> | [117](#i42f66f9a31784fbdb78f7a61e7467d0f_229) |
| | <u>[D. Changes in Internal Control over Financial Reporting](#i42f66f9a31784fbdb78f7a61e7467d0f_232)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_232) |
| | <u>[E. Conduct of Risk Assessment](#i42f66f9a31784fbdb78f7a61e7467d0f_1398)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_1398) |
| <u>[ITEM 16.](#i42f66f9a31784fbdb78f7a61e7467d0f_235)[RESERVED](#i42f66f9a31784fbdb78f7a61e7467d0f_235)</u> | <u>[ITEM 16.](#i42f66f9a31784fbdb78f7a61e7467d0f_235)[RESERVED](#i42f66f9a31784fbdb78f7a61e7467d0f_235)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_235) |
| <u>[ITEM 16A. Audit Committee Financial Experts](#i42f66f9a31784fbdb78f7a61e7467d0f_238)</u> | <u>[ITEM 16A. Audit Committee Financial Experts](#i42f66f9a31784fbdb78f7a61e7467d0f_238)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_238) |
| <u>[ITEM 16B. Code of Ethics](#i42f66f9a31784fbdb78f7a61e7467d0f_241)</u> | <u>[ITEM 16B. Code of Ethics](#i42f66f9a31784fbdb78f7a61e7467d0f_241)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_241) |
| <u>[ITEM 16C. Principal Accountant Fees and Services](#i42f66f9a31784fbdb78f7a61e7467d0f_244)</u> | <u>[ITEM 16C. Principal Accountant Fees and Services](#i42f66f9a31784fbdb78f7a61e7467d0f_244)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_244) |

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

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| | |
|:---|:---|
| <u>[ITEM 16D. Exemptions from the Listing Standards for Audit Committees](#i42f66f9a31784fbdb78f7a61e7467d0f_247)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_247) |
| <u>[ITEM 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers](#i42f66f9a31784fbdb78f7a61e7467d0f_250)</u> | [118](#i42f66f9a31784fbdb78f7a61e7467d0f_250) |
| <u>[ITEM 16F. Change in Registrant's Certifying Accountant](#i42f66f9a31784fbdb78f7a61e7467d0f_253)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_253) |
| <u>[ITEM 16G. Corporate Governance](#i42f66f9a31784fbdb78f7a61e7467d0f_256)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_256) |
| <u>[ITEM 16H. Mine Safety Disclosure](#i42f66f9a31784fbdb78f7a61e7467d0f_259)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_259) |
| <u>[ITEM 16I. Disclosure regarding foreign jurisdictions that prevent inspections](#i42f66f9a31784fbdb78f7a61e7467d0f_262)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_262) |
| <u>[PART III](#i42f66f9a31784fbdb78f7a61e7467d0f_265)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_265) |
| <u>[ITEM 17. Financial Statements](#i42f66f9a31784fbdb78f7a61e7467d0f_268)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_268) |
| <u>[ITEM 18. Financial Statements](#i42f66f9a31784fbdb78f7a61e7467d0f_271)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_271) |
| <u>[ITEM 19. Exhibits](#i42f66f9a31784fbdb78f7a61e7467d0f_277)</u> | [119](#i42f66f9a31784fbdb78f7a61e7467d0f_274) |

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

**PRESENTATION OF FINANCIAL AND OTHER INFORMATION**

Unless otherwise indicated or the context otherwise requires, all references in this Annual Report to "ADC Therapeutics," "ADCT," the "Company," "we," "our," "ours," "us" or similar terms refer to ADC Therapeutics SA and its consolidated subsidiaries.

**Trademarks**

We own various trademark registrations and applications, and unregistered trademarks, including ADC Therapeutics, ADCT, ZYNLONTA and our corporate logo. All other trade names, trademarks and service marks of other companies appearing in this Annual Report are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Annual Report may be referred to without the <sup>®</sup> and™ symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto. We do not intend to use or display other companies' trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

**Financial Statements**

Our consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). None of the consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The terms "dollar," "USD" or "$" refer to U.S. dollars and the term "Swiss franc" and "CHF" refer to the legal currency of Switzerland, unless otherwise indicated. We have made rounding adjustments to some of the figures included in this Annual Report. Accordingly, any numerical discrepancies in any table between totals and sums of the amounts listed are due to rounding.

**Market and Industry Data**

This Annual Report contains industry, market and competitive position data that are based on general and industry publications, surveys and studies conducted by third parties, some of which may not be publicly available, and our own internal estimates and research. Third-party publications, surveys and studies generally state that they have obtained information from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. These data involve a number of assumptions and limitations and contain projections and estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty.

**FORWARD-LOOKING STATEMENTS**

This Annual Report contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this Annual Report, including statements regarding our future catalysts, results of operations and financial position, business and commercial strategy, market opportunities, products and product candidates, research pipeline, ongoing and planned preclinical studies and clinical trials, regulatory submissions and approvals, research and development costs, projected revenues and expenses and the timing of revenues and expenses, timing and likelihood of success, as well as plans and objectives of management for future operations are forward-looking statements. Many of the forward-looking statements contained in this Annual Report can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate," "will" and "potential," among others.

Forward-looking statements are based on our management's beliefs and assumptions and on information available to our management at the time such statements are made. Such statements are subject to known and unknown risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in the "Item 3. Key Information — D. Risk Factors" section of this Annual Report. Factors that may cause such differences include, but are not limited to: the Company's ability to achieve its financial guidance including the 2023 net product revenue guidance for Zynlonta and the decrease in operating expenses for 2023 and 2024, the Company's ability to continue to commercialize ZYNLONTA in the United States and future revenue from the same; Swedish Orphan Biovitrum AB (Sobi)'s ability to successfully commercialize ZYNLONTA in the European Economic Area and market acceptance, adequate reimbursement coverage, and future revenue from the same; our strategic partners', including Mitsubishi Tanabe Pharma Corporation and Overland Pharmaceuticals, ability to obtain regulatory approval for ZYNLONTA in foreign jurisdictions, and the timing and amount of future revenue and payments to us from such partnerships; the Company's ability to market its products in compliance with applicable laws and regulations; the timing and results of the Company's or its partners' research projects or clinical trials including LOTIS 2, 5, 7 and 9, ADCT 901, 701, 601, 602 and 212, the timing and outcome of regulatory submissions and actions by the U.S. Food and Drug Administration or other regulatory agencies with respect to the Company's products or product candidates; projected revenue and expenses; our indebtedness and the restrictions imposed on the Company's activities by such indebtedness, the ability to repay such indebtedness and the significant cash required to service such indebtedness; the Company's ability to obtain financial and other resources for its research, development, clinical, and commercial activities; the manufacture and supply of our products and product candidates; our expectations regarding the size of the patient populations amenable to treatment with our products and, if approved, product candidates, as well as the treatment landscape of the indications that we are targeting with our products and product candidates; our ability to identify and develop additional product candidates; the ability of our competitors to discover, develop or commercialize competing products before or more successfully than we do; our competitive position and the development of and projections relating to our competitors or our industry; our

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estimates of our expenses, revenues, capital requirements, estimated cash runway and need for or ability to obtain additional financing; our ability to identify and successfully enter into strategic collaborations or licensing opportunities in the future, and our assumptions regarding any potential revenue that we may generate under current or future collaborations or licensing arrangements; our ability to obtain, maintain, protect and enforce intellectual property protection for our products and product candidates, and the scope of such protection; our ability to operate our business without infringing, misappropriating or otherwise violating the intellectual property rights of third parties; our expectations regarding the impact of the COVID-19 pandemic; our expectations regarding the impact of the current conflict between Russia and Ukraine, including resulting sanctions and changes in commodities prices, on our business and industry and the financial markets; our expectations regarding the impact of inflation and other market risks; our ability to attract and retain qualified key management and technical personnel; our expectations regarding the effectiveness of our internal controls over financial reporting; and our expectations regarding the time during which we will be a foreign private issuer.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Annual Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

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**PART I**

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;KEY INFORMATION**

**D. Risk Factors**

Our business faces significant risks and uncertainties. You should carefully consider all of the information set forth in this Annual Report and in other documents we file with or furnish to the Securities and Exchange Commission (the "SEC"), including the following risk factors, before deciding to invest in or to maintain an investment in our securities. Our business, as well as our reputation, financial condition, results of operations, and share price, could be materially adversely affected by any of these risks, as well as other risks and uncertainties not currently known to us or not currently considered material.

**Risk Factors Summary**

Our ability to implement our business strategy is subject to numerous risks, as more fully described in this Annual Report and our other documents filed with the SEC. These risks include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have incurred substantial net losses since our inception, expect to continue to incur losses for the foreseeable future and may never achieve or sustain profitability. We may need to raise additional capital to fund our operations and execute our business plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our indebtedness under the loan agreement and guaranty (the "Loan Agreement") with certain affiliates and/or funds managed by each of Oaktree Capital Management, L.P. and Owl Rock Capital Advisors LLC, as lenders, and Owl Rock Opportunistic Master Fund I, L.P., as administrative agent and collateral agent, and the associated restrictive covenants thereunder could adversely affect our financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our purchase and sale agreement with certain entities managed by HealthCare Royalty Management, LLC ("HCR") reduces the amount of cash we are able to generate from sales of, and licensing agreements involving, ZYNLONTA and Cami and could make us a less attractive acquisition target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to complete clinical trials on our expected timelines, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our products and product candidates may cause undesirable side effects or have other properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to obtain, or experience delays in obtaining, regulatory approval for our product candidates. We may be unable to maintain regulatory approval for any approved products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We or our partners may not be able to successfully commercialize our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There can be no assurance regarding the outcome of ongoing or planned clinical trials or the sufficiency of results from such clinical trials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Coverage and reimbursement may be limited or unavailable for our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our products and product candidates are complex and difficult to manufacture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face substantial competition, which may result in others discovering, developing or commercializing products, treatment methods or technologies before or more successfully than we do.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on third parties to conduct preclinical studies and clinical trials and for the manufacture, production, storage and distribution of our products and product candidates and certain commercialization activities for our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to obtain, maintain or protect our intellectual property rights in any products or technologies we develop, or if the scope of the intellectual property protection obtained is not sufficiently broad, third parties could develop and commercialize products and technology similar or identical to ours, and we may not be able to compete effectively in our market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time-consuming and unsuccessful, and our issued patents covering one or more of our products, product candidates or technologies, including ZYNLONTA or the technology we use in our products and product candidates, could be found invalid or unenforceable if challenged in court.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be subject to claims by third parties asserting that our products infringe their intellectual property or that we or our employees, consultants or advisors have misappropriated their intellectual property, or claiming ownership of what we regard as our own intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Product liability lawsuits and product recalls could cause us to incur substantial liabilities and to limit development and commercialization of our products.

**Risks Related to Our Financial Position and Capital Requirements**

***We have incurred substantial net losses since our inception, expect to continue to incur losses for the foreseeable future and may never achieve or sustain profitability. We may need to raise additional capital to fund our operations and execute our business plan and such additional capital could be dilutive, limit our ability to operate our business and adversely impact the price of our stock.***

We have incurred substantial net losses since our inception and expect to continue to incur losses for the foreseeable future. As of December 31, 2022, we had accumulated losses of USD 1,080.7 million. We expect to continue to incur net losses for the foreseeable future as we continue to devote substantial resources to research and development and marketing and commercialization efforts, in particular to establish ZYNLONTA as the 3L+ diffuse large B cell lymphoma ("DLBCL") standard of care, continue to study and advance ZYNLONTA in earlier lines of therapy and in combinations to potentially expand our market opportunity and further develop our clinical-stage PBD-based pipeline and our ADC platform. We are unable to accurately predict whether and when we will achieve profitability. Even if we achieve profitability, we may not be able to sustain profitability in subsequent periods. This risk is heightened as we only have one approved product, ZYNLONTA, at the present time and thus are heavily dependent on its commercial performance and its continued research and development.

As a result, we may need to raise additional capital to fund our operations and execute our business plan. We do not have any committed external source of funds, and additional funds may not be available when we need them or on terms that are acceptable to us. Our ability to raise additional funds will depend on financial, economic and market conditions and other factors, over which we may have no or limited control. Further, as a Swiss company, we have less flexibility to raise capital, particularly in a quick and efficient manner, as compared to U.S. companies. See "—Risks Related to Our Common Shares—Our shareholders enjoy certain rights that may limit our flexibility to raise capital, issue dividends and otherwise manage ongoing capital needs." The restrictions contained in our contractual agreements may also limit our ability to raise certain forms of capital. For example, subject to certain exceptions, the Loan Agreement restricts our ability to incur indebtedness and our purchase and sale agreement with HCR restricts our ability to sell, finance or loan any additional royalties on ZYNLONTA outside of China, Hong Kong, Macau, Taiwan, Singapore and South Korea or on Cami, and to incur indebtedness exceeding 20% of our market capitalization. If adequate funds are not available to us on a timely basis or on terms acceptable to us, we may be required to delay, limit, reduce or terminate our research and development, commercialization or growth efforts.

We may seek additional capital through a variety of means. If we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms of such equity or convertible debt securities may include liquidation or other preferences that are senior to or otherwise adversely affect your rights as a shareholder. If we raise additional capital through the sale of debt securities or through entering into credit or loan facilities, we may be restricted in our ability to take certain actions, such as incurring additional debt, making capital expenditures, acquiring or licensing intellectual property rights, declaring dividends or encumbering our assets to secure future indebtedness. If we raise additional capital through collaborations with third parties, we may be required to relinquish valuable rights to our intellectual property, products or product candidates or we may be required to grant licenses for our intellectual property, products or product candidates on unfavorable terms.

***Our indebtedness under the Loan Agreement and the associated restrictive covenants thereunder could adversely affect our financial condition.***

We have significant indebtedness outstanding under the Loan Agreement. Such indebtedness requires us to dedicate a substantial portion of our cash and cash equivalents to the payment of interest on, and principal of, the indebtedness, thereby reducing the amounts available to fund working capital, capital expenditures, research and development efforts, commercialization efforts and other general corporate purposes. Indebtedness under the Loan Agreement bear variable rates of interest based on the prevailing SOFR, thereby making us more vulnerable to rising interest rates.

The Loan Agreement contains certain restrictions on our activities and customary covenants, including a covenant to maintain qualified cash of at least USD 60.0 million plus an amount equal to any accounts payable of the Company or its subsidiaries that remain unpaid more than ninety (90) days after the date of the original invoice therefor, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. The obligations under the Loan Agreement are secured by substantially all assets of the Company and certain of its subsidiaries and are guaranteed initially by the Company's subsidiaries in the United States and the United Kingdom. Such covenants could limit our flexibility in planning for, or reacting to, changes in our business and our industry; place us at a competitive disadvantage compared to our competitors who have less debt or competitors with comparable debt on more favorable terms; and limit our ability to borrow additional amounts.

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Our ability to maintain compliance with the covenants imposed by our indebtedness and to repay the principal of, pay interest on and refinance, our indebtedness depends on our future performance, which is subject to economic, financial, competitive and other factors, many of which are beyond our control. If we are unable to comply with the covenants imposed by our indebtedness or to generate sufficient cash flow to service or repay our indebtedness, we may be in default of the Loan Agreement and be required to adopt one or more alternatives, such as restructuring debt or obtaining additional financing on terms that may be unfavorable to us or highly dilutive.

***Our purchase and sale agreement with HCR reduces the amount of cash we are able to generate from sales of, and licensing agreements involving, ZYNLONTA and Cami and could make us a less attractive acquisition target.***

Under our purchase and sale agreement with HCR, we are obligated to pay to HCR royalties presenting a percentage of net sales of ZYNLONTA in certain jurisdictions, a percentage of any upfront or milestone payments we receive from licenses that we grant to commercialize ZYNLONTA in certain jurisdictions, and a percentage of any upfront or milestone payments (or on royalties) we receive from licenses that we grant to commercialize Cami. See "Item 10. Additional Information—C. Material Contracts." As a result, our ability to generate from sales of, and licensing agreements involving, ZYNLONTA and Cami is reduced, which could adversely affect our financial condition.

In addition, upon the occurrence of a change in control event, we are obligated to pay HCR an amount equal to 2.50 times the amount paid by HCR under the agreement, or at 2.25 times the amount paid by HCR under the agreement if HCR receives royalty payments exceeding a mid-nine-digit amount on or prior to March 31, 2029, less any amounts we previously paid to HCR. If the change in control event occurs prior to the 36-month anniversary of the closing of the royalty purchase agreement, we are obligated to pay HCR an amount equal to 2.0 times the amount paid by HCR, less any amounts we previously paid to HCR pursuant to the agreement. The foregoing may make us a less attractive acquisition target by reducing the benefit accruing to our shareholders in any change-of-control transaction.

***Our statement of operations is subject to considerable non-cash charges and volatility due to factors that may be beyond our control.***

Our warrants are presented in the audited consolidated balance sheet as a liability, which is remeasured to fair value at each reporting date. The fair value changes based on our share price and its expected volatility. Our purchase and sale agreement with HCR is accounted for as a short-term and long-term debt obligation. To determine the accretion of the liability, we are required to estimate the total amount of future royalty payments and estimated timing of such payment to HCR based on the Company's revenue projections as well as the achievement of the certain milestones. Based on our periodic review, the amount and timing of repayment is likely to be different at each reporting period. To the extent the amount or timing of such payments is materially different than our initial estimates, we will record a cumulative catch-up adjustment. As a result, our warrants and the purchase and sale agreement with HCR could result in considerable non-cash charges to, and significant volatility in, our statement of operations.

***Our ability to use tax loss carryforwards and deferred tax assets may be limited.***

As of December 31, 2022, we reported USD 926.4 million in tax loss carryforwards for Swiss corporate income tax purposes. In addition, as of December 31, 2022, we reported USD 26.8 million in deferred tax assets, consisting primarily of U.S. federal and state R&D and Orphan Drug tax credit carryforwards. Such tax loss carryforwards and tax credits could, with certain limitations, be used to offset future taxable income. Swiss tax loss carryforwards generally expire seven years after the tax year in which they were incurred; U.S. federal and state tax credits generally expire after 20 years, although some state tax credits expire as quickly as seven years after the tax year in which they were incurred, and others do not expire. There can be no assurance that we will be able to generate sufficient income that allows us to use such tax loss carryforwards or tax credits before their expiration. We recognize deferred tax assets in our financial statements based on our assessment of the value of U.S. federal and state tax credits that we will be able to realize; however, such assessments are based on our projections of our future taxable income, which are subject to uncertainty and change based on numerous factors, including those described in this "Risk Factors" section. There can be no assurance that we will realize the value of the deferred tax assets recognized on our financial statements. In addition, relevant tax authorities may not accept our claims of tax loss carryforwards or tax credits. Furthermore, changes in tax law, as well as interpretation of such tax laws, could reduce, eliminate, or otherwise impair our ability to use our tax loss carryforwards and tax assets.

***Exchange rate fluctuations may materially affect our results of operations and financial condition.***

We operate internationally and are exposed to fluctuations in foreign exchange rates between the U.S. dollar and other currencies, particularly the British pound, the Euro and the Swiss franc. Our reporting currency is the U.S. dollar and, as a result, financial line items are converted into U.S. dollars at the applicable foreign exchange rates. As our business grows, we expect that at least some of our revenues and expenses will be denominated in currencies other than the U.S. dollar. Therefore, unfavorable developments in the value of the U.S. dollar relative to other relevant currencies could adversely affect our business and financial condition.

**Risks Related to Research and Development**

***We may expend our resources to pursue particular products or product candidates and fail to capitalize on those that may be more profitable or for which there is a greater likelihood of success.***

Because we have limited financial resources and personnel, we may prioritize the research, development and commercialization of select products or product candidates and of products and product candidates in select indications or markets. As a result, we may forgo or delay the

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pursuit of other products and product candidates or of other indications and markets that later prove to have greater commercial potential. Decision-making about development and commercialization priorities involves inherent subjectivity and uncertainty, and there can be no assurance that we will pursue product candidates with the greatest likelihood of obtaining regulatory approval or products and product candidates with the greatest market potential. In addition, we may relinquish valuable rights to products or product candidates through partnering, licensing or other arrangements in cases in which it would have been more advantageous for us to retain sole development and commercialization rights to such products or product candidates.

***We may be unable to complete clinical trials on our expected timelines, if at all.***

Clinical trials are subject to the numerous risks described in this "Risk Factors" section and in our other filings with the SEC, and a failure, delay or termination of one or more clinical trials can occur at any stage of the clinical trial process. Events that could impede our ability to complete clinical trials on a timely basis include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays in the timely commencement of clinical trials due to negative preclinical data, delays in receiving the required regulatory clearance from the appropriate regulatory authorities, delays in reaching an agreement on acceptable terms with prospective clinical research organizations ("CROs") and clinical trial sites and difficulties in obtaining required Institutional Review Board ("IRB") or ethics committee approval at each clinical trial site;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges in recruiting and enrolling suitable patients that meet the study criteria to participate in clinical trials, which challenges may be heightened for clinical trials that seek to enroll patients with characteristics that are found in a small population and by the novel nature of our products and product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Third party competition from alternative clinical trials in a similar space or new treatments in similar indications which may limit or ability to enroll new subjects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties in retaining and following up with subjects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any failure by us or CROs, CMOs, and other third parties to adhere to applicable requirements, which risk may be heightened by our reliance on third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• safety issues, including occurrence of treatment emergent adverse events ("TEAEs"), which may result in trial suspension or the imposition of clinical holds such as those that were imposed and subsequently lifted by the FDA on our clinical trials for Cami due to the occurrence of Guillain–Barré syndrome;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to manufacture adequate quantities of a product or a product candidate or other materials necessary in accordance with current Good Manufacturing Practices ("cGMPs") to conduct clinical trials, including, for example, quality issues and delays in the testing, validation, manufacturing delays or failures at our CROs and delivery of the product or product candidate to the clinical trial sites;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in regulatory requirements and guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the treatment landscape, such as new therapies or the withdrawal of a competing product; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of adequate funding to continue the clinical trial.

Any delays in the completion of clinical trials could increase costs, delay or prevent regulatory approval of our product candidates and impair our ability to maintain regulatory approval of and to commercialize any approved products.

***There can be no assurance regarding the outcome of ongoing or planned clinical trials or the sufficiency of results from such clinical trials.***

Drug research and clinical trials are inherently uncertain. There can be no assurance regarding the outcome of any ongoing or planned clinical trials, including whether such trials will meet their respective endpoint, whether severe adverse events will occur during the trials and whether the final results will ultimately be sufficient to support regulatory approval. For example, we are conducting a Phase 3 confirmatory trial of ZYNLONTA in combination with rituximab for the treatment of relapsed or refractory DLBCL. Despite ZYNLONTA having received accelerated approval from the FDA and conditional approval from the EMA and UK MHRA, it is possible that ZYNLONTA will fail to achieve its endpoints in this clinical trial, which could result in our inability to maintain regulatory approval. Results from earlier-stage clinical trials are even more unpredictable due to the size of the clinical trials and number of unknown factors at such early stages.

Results from preclinical studies and early-stage clinical trials of a product candidate may not be predictive of results from late-stage clinical trials of that product candidate or of any other product or product candidate. In addition, positive and promising results from preclinical studies and clinical trials of a product or product candidate in one indication may not be predictive of results from clinical trials of that product or product candidate in other indications. There may be significant differences between clinical trials, including differences in inclusion and

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exclusion criteria, efficacy endpoints, dosing regimen and statistical design. Our product ZYNLONTA has received accelerated approval from the FDA and conditional approval from the EMA and UK on the basis of overall response rate ("ORR") from our pivotal Phase 2 clinical trial for the treatment of relapsed or refractory DLBCL. However, there can be no assurance that our confirmatory clinical trial of ZYNLONTA in combination with rituximab for the treatment of relapsed or refractory DLBCL, or any clinical trial of ZYNLONTA in other indications, will produce similar results. If the results of our confirmatory trial for ZYNLONTA or the additional trials for ZYNLONTA in other indications do not meet their primary endpoints, then we may be unable to maintain regulatory approval for ZYNLONTA or obtain regulatory approval for expanded or new indications for ZYNLONTA. Failure to maintain or obtain regulatory approval for ZYNLONTA could have an adverse impact on our ability to continue to generate and grow our revenue in the future.

From time to time, we may announce or publish preliminary data but such data are subject to the risk that one or more of the outcomes may materially change as more data become available. We also make assumptions, estimations, calculations and conclusions as part of our analyses of data, and we may not have received or had the opportunity to fully evaluate all data. Therefore, positive preliminary results in any ongoing clinical trial may not be predictive of results in the completed trial. Preliminary data also remain subject to audit and verification procedures that may result in the final data being materially different from the preliminary data we previously published. As a result, preliminary data should be viewed with caution until the final data are available.

***Our products and product candidates may cause undesirable side effects or have other properties.***

Undesirable side effects caused by our products or product candidates could cause us or regulatory authorities to interrupt, delay or halt clinical trials, result in more restrictive labeling, boxed warnings, REMS or the denial or withdrawal of regulatory approval by the FDA, the EMA or other regulatory authorities, subject us to product liability claims or require us to issue product recalls. In addition, undesirable side effects could impair our ability to market our products, limit patients' and physicians' willingness to use our products and make it more difficult for us to obtain adequate coverage and reimbursement for our products.

In our clinical trials, we have observed certain class toxicities associated with our warheads, including elevated liver enzymes, skin rash, and effusions and edema. The prescribing information for ZYNLONTA contains warnings and precautions for effusion and edema, myelosuppression, infections, cutaneous reactions and embryo-fetal toxicity. Such information is based on adverse events observed in our clinical trials. However, clinical trials by their nature utilize a sample of the potential patient population. With a limited number of subjects and limited duration of exposure, rare and severe side effects of our products or product candidates may only be uncovered with a significantly larger number of patients exposed to the drug. Therefore, there can be no assurance that ZYNLONTA will not cause side effects that are different or more severe in a greater proportion of patients when used by more patients as we commercialize the product. Similarly, as our other product candidates advance through late-stage clinical trials that involve more patients than earlier-stage clinical trials, these product candidates may cause side effects that are different in nature, severity and frequency than observed in earlier-stage clinical trials.

In addition, we are developing ZYNLONTA and certain of our product candidates in combination with other therapies, such as rituximab and checkpoint inhibitors. Combining therapies may cause additional, different or more severe side effects than when a drug is used as a monotherapy. In addition, therapies used in combination may have common toxicities. When used in combination, the severity and frequency of such undesirable side effects may be greater than the cumulative severity and frequency of such side effects when the therapies are used as monotherapies.

***We may not be successful in our efforts to expand the market opportunity of ZYNLONTA, develop additional product candidates or build up our research pipeline.***

ZYNLONTA is currently approved for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy, including DLBCL not otherwise specified, DLBCL arising from low-grade lymphoma, and also high-grade B-cell lymphoma. We are undertaking clinical trials to potentially expand ZYNLONTA into other indications and into earlier lines of therapy. However, clinical development and regulatory review is inherently unpredictable and are subject to numerous risks and uncertainties described in this "Risk Factors" section. Failure to expand the indication(s) for ZYNLONTA, could limit the market opportunity for ZYNLONTA and our potential future revenue which could have an adverse effect on our business and operations. There can be no assurance that we will succeed in expanding the market opportunity of ZYNLONTA.

A key element of our development strategy is to build a robust pipeline of PBD-based ADCs targeting both novel and clinically validated cancer targets for the treatment of hematological malignancies and solid tumors. Our license and collaboration agreement with MedImmune Limited ("MedImmune") allows us to develop PBD-based ADCs against 11 targets. See "Item 10. Additional Information—C. Material Contracts." We have selected all 11 targets under this agreement. There can be no assurance that these targets will yield safe, effective and commercially viable product candidates. If we wish to develop ADCs for additional targets, we must secure additional licenses from MedImmune, which we may not be able to obtain at a reasonable cost or on reasonable terms, if at all. We may not be successful in developing additional PBD-based ADC's against the 11 targets selected under our Medimmune license or additional targets. If we are not successful in developing these new drugs, our future market opportunity and potential revenue may be negatively impacted which could adversely impact our business and operations.

We also pursue research programs involving non-ADC product candidates. However, we may be unable to identify suitable additional product candidates for clinical development, which would limit our ability to develop product candidates and our ability to obtain revenues

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from commercializing any such product candidates. Even if we are successful in continuing to build our research pipeline, the potential product candidates that we identify may fail in clinical development or commercialization.

**Risks Related to Regulatory Approval and Government Regulation**

***We may be unable to obtain, or experience delays in obtaining, regulatory approval for our product candidates. We may be unable to maintain regulatory approval for any approved products.***

Our product candidates must be approved by the FDA in the United States, by the EMA in the European Union and by comparable regulatory authorities in other jurisdictions prior to commercialization. In order to obtain regulatory approval for the commercial sale of any product candidates, we must demonstrate through extensive preclinical studies and clinical trials that the product candidate is safe and effective for use in each target indication and that manufacturing of the product candidate is robust and reproducible. The time required to obtain regulatory approval is unpredictable, typically takes many years following the commencement of clinical trials and depends upon numerous factors.

Regulatory authorities have substantial discretion in the approval process. They may refuse to accept any application or may decide that our data are insufficient for approval and require additional clinical trials or other studies. In this Annual Report and elsewhere in our public communications, we designate certain of our clinical trials as "pivotal," if we believe that these clinical trials, if successful, will support biologics license application ("BLA") submissions; however, there can be no assurance that any clinical trial that we designate as "pivotal" will be viewed as sufficient by the FDA, the EMA and other comparable regulatory authorities in other jurisdictions to support regulatory approval. If we are required to conduct additional clinical trials or other testing of any of our products and product candidates beyond those that are contemplated, we may incur significant additional costs and regulatory approval may be delayed or prevented.

Various regulatory programs in the United States, such as Breakthrough Therapy Designation, Fast Track Designation or Priority Review Designation, are designed to expedite the development and review of therapies to treat certain diseases. We may seek such designations, and comparable designations by foreign regulatory authorities, for one or more of our product candidates for the treatment of certain indications. However, regulatory authorities have broad discretion whether or not to grant such designations, and the receipt of such designations may not result in faster development, review or approval and does not guarantee regulatory approval.

We are developing certain of our products and product candidates in combination with other therapies. If we choose to develop a product or product candidate for use in combination with an approved therapy, we are subject to the risk that the FDA, the EMA or comparable regulatory authorities in other jurisdictions could revoke approval of, or that safety, efficacy, manufacturing or supply issues could arise with, the therapy used in combination with our product or product candidate. If the therapies we use in combination with our products and product candidates are replaced as the standard of care, the FDA, the EMA or comparable regulatory authorities in other jurisdictions may require us to conduct additional clinical trials. The occurrence of any of these risks could result in our products, if approved only for use in combination with another approved therapy, being removed from the market or being less successful commercially. Where we develop a product or product candidate for use in combination with a therapy that has not been approved by the FDA, the EMA or comparable regulatory authorities in other jurisdictions, we may not be able to market our product or product candidate for use in combination with such an unapproved therapy, unless and until the unapproved therapy receives regulatory approval. Unapproved therapies face the same risks described with respect to our product candidates currently in development. In addition, other companies may also develop their products or product candidates in combination with the unapproved therapies with which we are developing our products and product candidates for use in combination. Any setbacks in these companies' clinical trials, including the emergence of serious adverse effects, may delay or prevent the development and approval of our products and product candidates for use in combination with an approved therapy.

In addition, the approval policies or regulations of the FDA, the EMA or comparable regulatory authorities in other jurisdictions may change in a manner rendering our clinical data insufficient for approval. Recently, the accelerated approval pathway has come under scrutiny within the FDA and by Congress. The FDA has put increased focus on ensuring that confirmatory studies are conducted with diligence and, ultimately, that such studies confirm the benefit. For example, FDA has convened its Oncologic Drugs Advisory Committee to review what the FDA has called dangling or delinquent accelerated approvals where confirmatory studies have not been completed or where results did not confirm benefit. In addition, Congress recently enacted the Food and Drug Omnibus Reform Act ("FDORA"), which included provisions related to the accelerated approval pathway and authorizes the FDA to require a post-approval study to be underway prior to approval or within a specified time period following approval. In addition, the Oncology Center of Excellence within the FDA is advancing Project Optimus, which is an initiative to reform the dose optimization and dose selection paradigm in oncology drug development to emphasize selection of an optimal dose, which is a dose or doses that maximizes not only the efficacy of a drug but the safety and tolerability as well. This shift from the prior approach, which generally determined the maximum tolerated dose, may require sponsors to spend additional time and resources to further explore a product candidate's dose-response relationship to facilitate optimum dose selection in a target population. Other recent Oncology Center of Excellence initiatives have included Project FrontRunner, a new initiative with a goal of developing a framework for identifying candidate drugs for initial clinical development in the earlier advanced setting rather than for treatment of patients who have received numerous prior lines of therapies or have exhausted available treatment options, and Project Equity, which is an initiative to ensure that the data submitted to the FDA for approval of oncology medical products adequately reflects the demographic representation of patients for whom the medical products are intended.

Furthermore, the process and time required to obtain regulatory approval differ by jurisdiction. Approval by one regulatory authority does not ensure approval by regulatory authorities in other jurisdictions. In particular, prior to regulatory approval, regulatory authorities may require

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additional clinical trials to be conducted with a local population. Moreover, in many countries outside the United States, a drug must be approved for reimbursement before it can be approved for sale in that country, which can take considerable time and be heavily impacted by political, economic and regulatory developments.

As part of regulatory approval, we may be subject to a number of post-marketing requirements and commitments, such as post-marketing studies or clinical trials, surveillance to monitor the safety or efficacy of any approved product and risk evaluation and mitigation strategies. For example, our post-marketing obligations with respect to ZYNLONTA include a deferred pediatric trial and a trial in patients with hepatic impairment. In particular, for any products for which we receive accelerated approval from the FDA or conditional approval from the EMA or comparable regulatory authorities in other jurisdictions, we are required to complete confirmatory clinical trials. The FDA may withdraw approval of our products approved under the accelerated approval pathway if, for example, the clinical trial(s) required to verify the predicted clinical benefit of a product fails to verify such benefit or does not demonstrate sufficient clinical benefit to justify the risks associated with the product, other evidence demonstrates that a product is not shown to be safe or effective under the conditions of use, we fail to conduct any required post-marketing confirmatory clinical trial with due diligence or we disseminate false or misleading promotional materials relating to the relevant product. There can be no assurance that we will receive full approval or maintain the current accelerated approval for ZYNLONTA for the treatment of relapsed or refractory DLBCL or that we will receive full approval for ZYNLONTA in other indications or for any of product candidates for which we receive accelerated approval. In addition, any products for which we receive regulatory approval in a particular jurisdiction and the activities associated with their commercialization, including testing, manufacture, recordkeeping, labeling, storage, approval, advertising, promotion, sale and distribution, will be subject to comprehensive regulation by the FDA, the EMA or comparable regulatory authorities in other jurisdictions. These requirements include, without limitation, submissions of safety and other post-marketing information and reports, registration and listing requirements, the FDA's cGMP requirements or comparable requirements in foreign jurisdictions, requirements relating to manufacturing, quality control, quality assurance and corresponding maintenance of records and documents, including periodic inspections by the FDA, the EMA or comparable regulatory authorities in other jurisdictions, requirements regarding the distribution of samples to physicians, tracking and reporting of payments to physicians and other healthcare providers and recordkeeping. If we are unable to complete the required confirmatory or post-marketing studies, if such studies fail to meet their safety and efficacy endpoints or if we otherwise fail to comply with post-marketing requirements and regulations, we may be unable to maintain regulatory approval for any approved products.

The policies of the FDA, the EMA and comparable regulatory authorities in other jurisdictions may change and additional regulations may be enacted. If we are slow or unable to adapt to changes in existing requirements or to the adoption of new requirements, or not able to maintain regulatory compliance, we may lose any regulatory approval that may have been obtained. We cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action, either in the United States or abroad, as the regulatory environment changes rapidly.

***We may not receive Orphan Drug Designation for our product candidates.***

Regulatory authorities in some jurisdictions, including the United States and the European Union, may designate drugs for relatively small patient populations as orphan drugs. In the United States, orphan drug designation entitles a party to financial incentives such as tax advantages and user fee waivers. In addition, if a product receives the first FDA approval for the indication for which it has orphan designation, the product is entitled to orphan drug exclusivity, which means the FDA may not approve any other application to market the same drug for the same indication for a period of seven years, except in limited circumstances, such as a showing of clinical superiority over the product with orphan exclusivity or where the manufacturer is unable to assure sufficient product quantity. In the European Union, orphan drug designation entitles a party to financial incentives such as reduction of fees or fee waivers and ten years of market exclusivity for the orphan indication following drug or biological product approval, provided that the criteria for orphan designation are still applicable at the time of the granting of the marketing authorization. This period may be reduced to six years if, at the end of the fifth year, the orphan drug designation criteria are no longer met, including where it is shown that the product is sufficiently profitable not to justify maintenance of market exclusivity. The respective orphan drug designation and exclusivity frameworks in the United States and in the European Union are subject to change, and any such changes may affect our ability to obtain, or the impact of obtaining, European Union or U.S. orphan designations in the future.

We may pursue orphan drug designation for one or more of our other product candidates. However, obtaining an orphan drug designation can be difficult, and we may not be successful in doing so. Even if we obtain orphan drug designation, we may not be able to maintain such designation. For example, in the process of seeking marketing authorization in the European Union, the Committee for Orphan Medicinal Products recommended to not uphold ZYNLONTA's previously granted orphan drug designation. Even if we obtain orphan drug designation for our product candidates in specific indications, we may not be the first to obtain regulatory approval of these product candidates for the orphan-designated indication. Orphan drug designation neither shortens the development time or regulatory review time of a product candidate nor gives the product candidate any advantage in the regulatory review or approval process. In addition, exclusive marketing rights in the United States may be limited if we seek approval for an indication broader than the orphan-designated indication or may be lost if the FDA later determines that the request for designation was materially defective or if the manufacturer is unable to assure sufficient quantities of the product to meet the needs of patients with the rare disease or condition. Furthermore, even if we obtain orphan drug exclusivity for a product, that exclusivity may not effectively protect the product from competition because different ADCs with different monoclonal antibody elements or functional elements of the conjugated molecule can be approved for the same condition. Even after an orphan product is approved, the FDA can subsequently approve the same ADC with the same monoclonal antibody element and functional element of the conjugated molecule for the same condition if the FDA concludes that the later ADC is safer, more effective or makes a major contribution to patient care. Our inability to obtain orphan drug designation for any product candidates for the treatment of rare cancers and/or our inability to maintain that designation

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for the duration of the applicable exclusivity period, could reduce our ability to make sufficient sales of the applicable product candidate to balance our expenses incurred to develop it.

***We may not receive the 12 years of data exclusivity from our anticipated Reference Product Exclusivity.*** 

We believe ZYNLONTA is the first loncastuximab tesirine product to have been licensed by the FDA and should be entitled to a period of 12 years of Reference Product Exclusivity ("RPE"). However, the FDA has not yet awarded ZYNLONTA such RPE, and the FDA may not do so for unknown reasons. The Biologics Price Competition and Innovation Act of 2009 (the "BPCIA") established an abbreviated pathway to licensure for follow-on biologics called biosimilars. Biosimilars are biological products approved under section 351(k) of the Public Health Act Service Act ("PHS Act") relying on the FDA's findings of safety, purity, and potency for a licensed biologic ("Reference Product") submitted pursuant to section 351(k) of the PHS Act. A biosimilar is highly similar to its Reference Product, excluding minor differences in clinically inactive components for which there are no clinically meaningful differences between the proposed biological product and the Reference Product in safety, purity, or potency.

The BPCIA provides a 12-year period of RPE during which an applicant may not submit, and/or the FDA may not license, a biosimilar application relying on the Reference Product. That RPE runs from the "date of first licensure," which is the date that the FDA first licensed the Reference Product, and when such a period of RPE is awarded to a given Reference Product, it is listed in the FDA's Database of Licensed Biological Products (the "Purple Book") as a "Date of First Licensure." When there is a "Date of First Licensure" listed in the Purple Book for a Reference Product, it signifies that the FDA has made a determination on the product's eligibility for RPE and has awarded that product 12 years of RPE during which the product may not serve as a Reference Product for any proposed biosimilar. The FDA historically has been slow to make these determinations and often does not do so until there is a biosimilar application pending. There is no "Date of First Licensure" listed in the Purple Book for ZYNLONTA.

RPE is available unless the putative Reference Product falls under one of several exclusions. Specifically, RPE is not available where licensure is for a supplement for the putative Reference Product or where the licensure is for a subsequent application filed by the same sponsor or manufacturer of the biological product for a change other than a modification to the structure of the biological product that results in a change in safety, purity, and potency. The "same sponsor" includes any licensor, predecessor in interest, or other related entity. For each putative Reference Product, the FDA assesses whether an application is considered a subsequent application filed by the same sponsor or manufacturer of the biological product and whether there is a modification to the structure of the biological product previously licensed by such an entity. If there is a structural modification, the FDA then determines whether such modification would result in a change in safety, purity, or potency.

ZYNLONTA is listed in the Purple Book, but the FDA has not yet listed a Date of First Licensure. Accordingly, it is unclear whether the FDA will award ZYNLONTA its 12 years of RPE. While we are not aware of any disqualifying factors, the FDA could determine that ZYNLONTA is not entitled to RPE if it determines that an entity related to us received licensure of a similar molecule in the past.

Even if ZYNLONTA does receive its 12 years of exclusivity, the value of RPE is limited. As data exclusivity, RPE would not preclude subsequent licensure of a similar or related product unless the application sought to rely on the FDA's findings of safety, purity, and potency for ZYNLONTA in a biosimilar application filed pursuant to section 351(k) of the PHS Act. Accordingly, the FDA could approve an identical loncastuximab tesirine product with full studies demonstrating safety, purity, and potency submitted under section 351(k) of the PHS Act. The FDA could also approve loncastuximab tesirine for a different indication or with a different route of administration or formulation despite any RPE for ZYNLONTA.

***If we are found to have improperly promoted off-label use of our products, we may become subject to significant liability.***

The FDA, the EMA and comparable regulatory authorities in other jurisdictions strictly regulate the promotional claims that may be made about prescription drug products, such as our products. While physicians, in the practice of medicine, may prescribe approved drugs for unapproved indications, a product may not be promoted for uses that are not approved by the applicable regulatory authority as reflected in the product's approved labeling or for uses inconsistent with the product's approved labeling. For example, despite ZYNLONTA being approved for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy, including DLBCL not otherwise specified, DLBCL arising from low grade lymphoma and high-grade B-cell lymphoma, physicians, in their professional medical judgment, may nevertheless prescribe the drug product to their patients in a manner that is inconsistent with the approved labeling. In addition, although we believe our warhead may provide for superior efficacy as compared to marketed ADCs, without head-to-head data, we will be unable to make comparative claims for our products. If we are found to have promoted such off-label use or made such unsubstantiated comparative claims, we may become subject to significant liability under the Federal Food, Drug, and Cosmetic Act (the "FDCA") and other statutory authorities, such as laws prohibiting false claims for reimbursement.

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***Failure to comply with health and data protection laws and regulations could lead to government enforcement actions, private litigation and adverse publicity and could negatively affect our operating results and business.***

We receive, generate and store significant and increasing volumes of sensitive information, such as employee and patient data. In addition, we actively seek access to medical information, including patient data, through research and development collaborations or otherwise. We and any potential collaborators may be subject to federal, state, local and foreign laws and regulations that apply to the collection, use, retention, protection, disclosure, transfer and other processing of personal data, including the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 ("HITECH"), the Regulation 2016/679, known as the General Data Protection Regulation (the "GDPR"), as well as European Union member state implementing legislations, and the UK General Data Protection Regulation ("UK GDPR"). These laws and regulations are complex and change frequently, at times due to changes in political climate, and existing laws and regulations are subject to different and conflicting interpretations, which adds to the complexity of processing personal data from these jurisdictions. Compliance with U.S. and international data protection laws and regulations could require us to take on more onerous obligations in our contracts, restrict our ability to collect, use and disclose data, or in some cases, impact our ability to operate in certain jurisdictions. Failure to comply with these laws and regulations could result in government enforcement actions, which could include civil, criminal and administrative penalties, private litigation, and adverse publicity and could negatively affect our operating results and business. Moreover, clinical trial subjects, employees and other individuals about whom we or our potential collaborators obtain personal information, as well as the providers who share this information with us, may limit our ability to collect, use and disclose the information. Claims that we have violated individuals' privacy rights, failed to comply with data protection laws, or breached our contractual obligations, even if we are not found liable, could be expensive and time-consuming to defend and could result in adverse publicity that could harm our business.

***If we are unable to comply, or do not fully comply, with applicable fraud and abuse, transparency, government price reporting, privacy and security, and other healthcare laws, we could face substantial penalties.***

Healthcare providers, physicians and third-party payors will play a primary role in the recommendation and prescription of our products for which we obtain marketing approval. Our operations, including any arrangements with healthcare providers, physicians, third-party payors and customers may expose us to broadly applicable fraud and abuse and other healthcare laws that may affect the business or financial arrangements and relationships through which we would market, sell and distribute our products. The healthcare laws that may affect our ability to operate include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The federal Anti-Kickback Statute, which prohibits any person or entity from, among other things, knowingly and willfully soliciting, receiving, offering or paying any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or reward either the referral of an individual for, or the purchase, order or recommendation of an item or service reimbursable, in whole or in part, under a federal healthcare program, such as the Medicare and Medicaid programs. The term "remuneration" has been broadly interpreted to include anything of value. The federal Anti-Kickback Statute has also been interpreted to apply to arrangements between pharmaceutical manufacturers, on the one hand, and prescribers, purchasers, and formulary managers, on the other hand. There are a number of statutory exceptions and regulatory safe harbors protecting some common activities from prosecution, but the exceptions and safe harbors are drawn narrowly and require strict compliance in order to offer protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal civil and criminal false claims laws, such as the FCA, which can be enforced by private citizens through civil qui tam actions, and the Civil Monetary Penalties Law prohibit individuals or entities from, among other things, knowingly presenting, or causing to be presented, false, fictitious or fraudulent claims for payment of federal funds, and knowingly making, using or causing to be made or used a false record or statement material to a false or fraudulent claim to avoid, decrease or conceal an obligation to pay money to the federal government. For example, pharmaceutical companies have been prosecuted under the FCA in connection with their alleged off-label promotion of drugs, purportedly concealing price concessions in the pricing information submitted to the government for government price reporting purposes, and allegedly providing free product to customers with the expectation that the customers would bill federal healthcare programs for the product. In addition, a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the FCA. As a result of a modification made by the Fraud Enforcement and Recovery Act of 2009, a claim includes "any request or demand" for money or property presented to the U.S. government. In addition, manufacturers can be held liable under the FCA even when they do not submit claims directly to government payors if they are deemed to "cause" the submission of false or fraudulent claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HIPAA, which, among other things, imposes criminal liability for executing or attempting to execute a scheme to defraud any healthcare benefit program, including private third-party payors, knowingly and willfully embezzling or stealing from a healthcare benefit program, or willfully obstructing a criminal investigation of a healthcare offense, and creates federal criminal laws that prohibit knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent statement or representation, or making or using any false writing or document knowing the same to contain any materially false, fictitious or fraudulent statement or entry in connection with the delivery of or payment for healthcare benefits, items or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HIPAA, as amended by HITECH, and its implementing regulations, which impose privacy, security and breach reporting obligations with respect to individually identifiable health information upon entities subject to the law, such as health plans, healthcare clearinghouses and certain healthcare providers, known as covered entities, and their respective business associates and covered subcontractors that perform services for them that involve individually identifiable health information. HITECH also created new tiers of civil monetary penalties, amended HIPAA to make civil and criminal penalties directly applicable to business associates, and gave

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state attorneys general new authority to file civil actions for damages or injunctions in U.S. federal courts to enforce HIPAA laws and seek attorneys' fees and costs associated with pursuing federal civil actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal and state consumer protection and unfair competition laws, which broadly regulate marketplace activities and activities that potentially harm consumers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The federal transparency requirements under the Physician Payments Sunshine Act, created under the Health Care Reform Act, which requires, among other things, certain manufacturers of drugs, devices, biologics and medical supplies reimbursed under Medicare, Medicaid, or the Children's Health Insurance Program to report annually to the CMS information related to payments and other transfers of value provided to physicians, as defined by such law, certain other healthcare professionals, and teaching hospitals and physician ownership and investment interests, including such ownership and investment interests held by a physician's immediate family members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State and foreign laws that are analogous to each of the above federal laws, such as anti-kickback and false claims laws, that may impose similar or more prohibitive restrictions, and may apply to items or services reimbursed by non-governmental third-party payors, including private insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State and foreign laws that require pharmaceutical companies to implement compliance programs, comply with the pharmaceutical industry's voluntary compliance guidelines and the relevant compliance guidance promulgated by the federal government, or to track and report gifts, compensation and other remuneration provided to physicians and other healthcare providers; state laws that require the reporting of marketing expenditures or drug pricing, including information pertaining to and justifying price increases; state and local laws that require the registration of pharmaceutical sales representatives; state laws that prohibit various marketing-related activities, such as the provision of certain kinds of gifts or meals; state laws that require the posting of information relating to clinical trials and their outcomes; and other federal, state and foreign laws that govern the privacy and security of health information or personally identifiable information in certain circumstances, including state health information privacy and data breach notification laws which govern the collection, use, disclosure, and protection of health-related and other personal information, many of which differ from each other in significant ways and often are not pre-empted by HIPAA, thus requiring additional compliance efforts.

Ensuring that our business arrangements with third parties comply with applicable healthcare laws and regulations is costly. If our operations are found to be in violation of any of these laws or any other current or future healthcare laws that may apply to us, we may be subject to significant civil, criminal and administrative penalties, damages, fines, disgorgement, imprisonment, exclusion from government funded healthcare programs, such as Medicare and Medicaid, contractual damages, reputational harm, diminished profits and future earnings, additional reporting obligations and oversight if we become subject to a corporate integrity agreement or other agreement to resolve allegations of non-compliance with these laws, and the curtailment or restructuring of our operations, any of which could substantially disrupt our operations. Although effective compliance programs can mitigate the risk of investigation and prosecution for violations of these laws, these risks cannot be entirely eliminated. Any action against us for an alleged or suspected violation could cause us to incur significant legal expenses and could divert our management's attention from the operation of our business, even if our defense is successful.

***Healthcare reform legislation and other changes in the healthcare industry and in healthcare spending may adversely affect our business model.***

Our revenues and revenue prospects could be affected by changes in healthcare spending and policies in the United States, the European Union and any other potential jurisdictions in which we or our collaborators may seek to commercialize our products. We operate in a highly regulated industry, and new laws, regulations and judicial decisions, or new interpretations of existing laws, regulations and decisions, related to healthcare availability, the method of delivery and payment for healthcare products and services could negatively affect our business, financial condition and prospects. There is significant interest in promoting healthcare reforms, and it is likely that federal and state legislatures within the United States and the governments of other countries will continue to consider changes to existing healthcare legislation. For example, there have been and continue to be a number of initiatives at the United States federal and state levels that seek to reduce healthcare costs, including the Budget Control Act (which, subject to certain sequestration periods, imposed 2% reductions in Medicare payments to providers per fiscal year), the Infrastructure Investment and Jobs Act (which added a requirement for manufacturers of certain single-source drugs (including biologics and biosimilars) separately paid for under Medicare Part B for at least 18 months and marketed in single-dose containers or packages (known as refundable single-dose container or single-use package drugs) to provide annual refunds if those portions of the dispensed drug that are unused and discarded exceed an applicable percentage defined by statute or regulation), and the Inflation Reduction Act (which will, among other things, allow U.S. Department of Health and Human Services ("HHS") to negotiate the selling price of certain drugs and biologics that CMS reimburses under Medicare Part B and Part D and penalize drug manufacturers that increase prices of Medicare Part B and Part D drugs at a rate greater than the rate of inflation). Individual states in the United States have also become increasingly active in passing legislation and implementing regulations designed to control pharmaceutical product pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in some cases, designed to encourage importation from other countries and bulk purchasing. In addition, regional healthcare authorities and individual hospitals are increasingly using bidding procedures to determine what pharmaceutical products and which suppliers will be included in their prescription drug and other healthcare programs. We expect that additional state and federal healthcare reform measures will be adopted in the future. Any adopted health reform measure could reduce the ultimate demand for our products or put pressure on our product pricing. We expect that the Infrastructure Investment and Jobs Act's requirement will apply to ZYNLONTA and that we will owe refunds to CMS. It is likely that federal and state legislatures within the United States and foreign governments will continue to consider changes to existing

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healthcare legislation. We cannot predict the reform initiatives that may be adopted in the future or whether initiatives that have been adopted will be repealed or modified.

**Risks Related to Commercialization and Manufacturing**

***We or our foreign commercialization partners may not be able to successfully commercialize our products.***

To successfully commercialize our products, we must attract and retain qualified sales and marketing personnel and attain significant market acceptance of our products. We face significant competition for qualified personnel. See "—We face substantial competition, which may result in others discovering, developing or commercializing products, treatment methods or technologies before or more successfully than we do." Establishing market acceptance of our products among physicians, patients, patient advocacy groups, third-party payors and the medical community is complex and resource intensive. The risk of our inability to establish market acceptance may be heightened as our products represent novel treatment methods and be influenced by factors beyond our control, including perceptions of ADC products generally or those of our competitors and coverage and reimbursement for our products. If we do not successfully commercialize our products, we may not generate significant product revenues and may not receive a satisfactory return on our investment into the research and development of those products.

Alternatively, we have established collaborations with third parties to commercialize our product. See "Item 10. Additional Information—C. Material Contracts." In such collaborations, we depend on the performance of the contractual counterparty, over which we have limited control. Therefore, such collaborations may generate lower product revenues or profit than if we were to commercialize our products ourselves. We may wish to establish additional collaborations with third parties to commercialize our product. We may not be successful in entering into such marketing and distribution arrangements with third parties or in entering in such marketing and distribution arrangements with third parties on favorable terms. Moreover, such arrangements are complex and time-consuming to negotiate, document and implement and they may require substantial resources to maintain.

***Coverage and reimbursement may be limited or unavailable for our products.***

In both domestic and foreign markets, sales of our products will depend substantially on the extent to which the costs of our products will be covered by third-party payors, such as government health programs, commercial insurance and managed healthcare organizations. These third-party payors decide which products will be covered and establish reimbursement levels for those products. If coverage and adequate reimbursement are not available, or are available only to limited levels, we may not be able to successfully commercialize our products.

Obtaining coverage approval and reimbursement from a government or other third-party payor is a time-consuming and costly process that could require us to provide supporting scientific, clinical and cost-effectiveness data for the use of our products to the payor, which we may be unable to provide. In particular, there is significant uncertainty related to the insurance coverage and reimbursement of newly approved products. In the United States, there is no uniform policy for coverage and reimbursement and, as a result, coverage and reimbursement can differ significantly from payor to payor. The principal decisions about reimbursement for new medicines are typically made by the Centers for Medicare & Medicaid Services (the "CMS"), which decides whether and to what extent a new medicine will be covered and reimbursed under Medicare. Private payors often, but not always, follow the CMS's decisions regarding coverage and reimbursement. Further, coverage policies and third-party payor reimbursement rates may change at any time. It is difficult to predict what third-party payors will decide with respect to coverage and reimbursement for fundamentally novel products such as ours, as there is no body of established practices and precedents for these new products. Further, one payor's determination to provide coverage and adequate reimbursement for a product does not assure that other payors will also provide coverage and adequate reimbursement for that product. In Europe, pricing and reimbursement schemes may be more restrictive than those in the United States and vary widely from country to country and may require additional clinical trials and additional cost-effectiveness assessments. In addition, countries may restrict the price of products through the use of nationalized tender processes, controls on the profitability of drug companies, guidance to physicians to limit prescriptions, reference pricing and parallel distribution. Furthermore, many countries have increased the amount of discounts required on pharmaceutical products. This risk may be heightened by our collaboration with Sobi, pursuant to which we do not control the commercialization of, including obtaining coverage and reimbursement for, ZYNLONTA. The downward pressure on healthcare costs in general, and prescription products in particular, has become increasingly intense.

Furthermore, the containment of healthcare costs has become a priority of governments and private third-party payors. Governments and private third-party payors have attempted to control costs by limiting coverage and the amount of reimbursement for particular medications. We also expect to experience pricing pressures due to the trend towards managed healthcare, the increasing influence of health maintenance organizations and additional legislative changes. In particular, we contract with group purchasing organizations, which increases our gross-to-net deductions. These and other cost-control initiatives could cause us to decrease the price we might establish for products, which could result in lower-than-anticipated product revenues. In addition, the publication of discounts by third-party payors or authorities may lead to further pressure on the prices or reimbursement levels within the country of publication and other countries. If pricing is set at unsatisfactory levels or if coverage and adequate reimbursement of our products is unavailable or limited in scope or amount, our revenues and the potential profitability of our products in those countries would be negatively affected.

***Our products and product candidates are complex and difficult to manufacture.***

Our products and product candidates are complex and difficult to manufacture. Problems with the manufacturing process, including even minor deviations from the normal process, could result in product defects or manufacturing failures that result in lot failures, product recalls,

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product liability claims, insufficient inventory and make us a less attractive collaborator for potential partners. We may encounter problems achieving adequate quantities and quality of clinical-grade materials that meet FDA, EMA or other applicable standards or specifications with consistent and acceptable production yields and costs. In the past, we have received batches of certain of ZYNLONTA and our product candidates that did not meet our specifications. There can be no assurance that manufacturing issues will not occur in the future. We currently rely on third parties to manufacture all our raw materials, components and finished products and this risk may be heighted by our reliance on contract manufacturing organizations ("CMOs") to produce our products and product candidates. See "Risks Related to Our Relationship with Third Parties." In particular, our products, product candidates and research pipeline use PBDs, which are highly potent cytotoxins that require special handling, which may subject us to liability for any contamination or injury, or failure to comply with environmental, health and safety laws and regulations.

Increases in the costs and expenses of components or raw materials may also adversely influence our business, results of operations and financial condition. Supply sources could be interrupted from time to time and, if interrupted, it is not certain that supplies could be resumed, whether in part or in whole, within a reasonable timeframe and at an acceptable cost, or at all. The cost to manufacture our products could be significantly greater than we expect, which could limit the market acceptance of our products or reduce our potential profit on such product sales.

Furthermore, given the nature of biologics manufacturing, there is a risk of contamination during manufacturing. Any contamination could materially harm our ability to produce products and product candidates on schedule and could cause reputational damage. Some of the raw materials required in our manufacturing process are derived from biologic sources, which are difficult to procure and may be subject to contamination or recall. A material shortage, contamination, recall or restriction on the use of biologically derived substances in the manufacture of any products or product candidates could adversely impact or disrupt the commercial manufacturing or the production of clinical material, which could materially harm our development timelines and our business, financial condition, results of operations and prospects.

***The market opportunities for our products and product candidates may be smaller than we estimate and any approval that we obtain may be based on a narrower definition of the patient population.***

Our projections of the number of people who have the cancers we are targeting, as well as the subset of people with these cancers in a position to receive a certain line of therapy and who have the potential to benefit from treatment with our products and product candidates, are based on estimates derived from a variety of sources, including scientific literature, surveys of clinicians and healthcare professionals and other forms of market research. These estimates may be inaccurate or based on imprecise data and are based on assumptions such as labeling, acceptance, patient access and pricing and reimbursement. The number of patients in the addressable markets may turn out to be lower than expected, new treatments may be approved in the future which may reduce our potential patient population, patients may not be otherwise amenable to treatment with our products and product candidates or new patients may become increasingly difficult to identify or gain access to, all of which could negatively impact our market opportunity estimate and materially adversely affect our business, financial condition, results of operations and prospects.

***We face substantial competition, which may result in others discovering, developing or commercializing products, treatment methods or technologies before or more successfully than we do.***

The biotechnology industry is characterized by rapidly advancing technologies, intense competition and a strong emphasis on proprietary products. We face competition with respect to our current products and product candidates and will face competition with respect to any products and product candidates that we may seek to develop or commercialize in the future. Our competitors include large pharmaceutical and biotechnology companies, academic institutions, government agencies and other public and private research organizations that conduct research, seek patent protection and establish collaborative arrangements for research, development, manufacturing and commercialization. Many of our competitors have significantly greater financial resources and capabilities in research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining regulatory approval and marketing than we do. Furthermore, mergers and acquisitions in the biotechnology industry may result in even more resources being concentrated among a smaller number of our competitors.

Many companies are active in the oncology market and are developing or marketing products for the specific therapeutic markets that we target, including both antibody- and non-antibody-based therapies. Similarly, we also face competition from other companies and institutions that continue to invest in innovation in the ADC field including new payload classes, new conjugation approaches and new targeting moieties. Specifically, we are aware of multiple companies with ADC technologies that may be competitive with our products and product candidates, including, but not limited to, AbbVie, Inc., Daiichi Sankyo Company, GlaxoSmithKline plc, Gilead Sciences, Inc., Mersana Therapeutics Inc., Sanofi S.A., Roche Holding AG and Seagen, Inc. There are hundreds of ADCs in development, the vast majority of which were being developed for the treatment of cancer.

In the relapsed or refractory DLBCL setting, for which we are commercializing ZYNLONTA, current third-line treatment options include CAR-T, allogeneic stem cell transplant, polatuzumab in combination with bendamustine and a rituximab product, selinexor, tafasitamab in combination with lenalidomide and chemotherapy using small molecules. If Zynlonta is approved for use as a second-line treatment for DLBCL patients, we will continue to compete with CAR-T, rituximab in combination with chemotherapies, polatuzumab in combination with bendamustine and a rituximab product, and tafasitamab in combination with lenalidomide. If Zynlonta is approved for use in the frontline for frail or unfit DLBCL patients we will compete with a rituximab product in combination with mini-CHOP. In addition, we expect changes to the treatment paradigm, including potential new entrants such as bispecific antibodies. New technologies, procedures or treatments could render

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our products and product candidates obsolete and there can be no assurance that our products and product candidates would be able to compete effectively. If we are unable to compete with these new treatment options, physicians may not utilize our products and our future revenues and estimates may be negatively impacted.

**Risks Related to Our Relationship with Third Parties**

***We rely on third parties to conduct preclinical studies and clinical trials and for the manufacture, production, storage and distribution of our products and product candidates and certain commercialization activities for our products.***

We rely, and we expect that we will continue to rely, on CROs and other third parties to assist in managing, monitoring and otherwise carrying out preclinical studies and clinical trials of our products and product candidates and CMOs and other third parties for the manufacture, production, storage and distribution of our products and product candidates and certain commercialization activities for our products, including government pricing, reporting and chargeback and rebate processing, pharmacovigilance and adverse event reporting. We have less control over the activities of third parties than we would otherwise have if we relied entirely upon our own staff and we are exposed to different risks, including all the risks associated with such third parties' businesses and financial condition, than if we performed such functions ourselves. There can be no assurance that these third parties will perform services for us in accordance with our timelines, standards and expectations. If these third parties do not successfully carry out their duties under their agreements or otherwise fail to comply with regulatory requirements, we may experience delays in our research and development activities, be unable to obtain and maintain regulatory approval, be unable to commercialize our products and be required to issue product recalls. In addition, if any of our relationships with these third parties terminate, we may not be able to enter into alternative arrangements on a timely basis or on commercially reasonable terms, and even if successful in entering into alternative arrangements, we may experience significant delays during the transition. This risk may be heightened by our use of single-source supplier arrangements. Furthermore, if a CMO or other third-party manufacturer cannot maintain a compliance status acceptable to the FDA, or if the EMA or a comparable regulatory authority in another jurisdiction does not approve these facilities for the manufacture of our products and product candidates or if it withdraws any such approval in the future, we may need to find alternative manufacturing facilities, which would be time consuming, costly and uncertain and significantly impact our ability to develop, obtain regulatory approval for, source adequate supply of or market our products and product candidates.

***Our collaborators may not perform as expected, and we may be unable to maintain existing or establish additional collaborations for the development and commercialization of our products and product candidates.***

We have entered into, and may in the future may enter into, collaboration agreements with third parties for the development and commercialization for products, product candidates and/or research programs. See "Item 10. Additional Information—C. Material Contracts" for a description of such agreements that are material to us. There can be no assurance that we will be able to enter into additional collaboration agreements on favorable terms, or at all. Even if we are successful in our efforts to establish collaborations, we may not be able to maintain such collaborations if, for example, development or approval of a product or product candidate is delayed or sales of an approved product are disappointing. If we fail to establish and maintain collaborations, we could bear all of the risk and costs related to the development and commercialization of any such product or product candidate, which may require us to seek additional financing, hire additional employees and otherwise develop expertise for which we have not budgeted, and may have a detrimental effect on our financial position by reducing or eliminating the potential for us to receive technology access and license fees, milestones and royalties, and/or reimbursement of development costs.

In such collaborations, we will depend on the performance of our collaborators. Our collaborators may fail to perform their obligations under the collaboration agreements or may not perform their obligations in a timely manner. If conflicts arise between our collaborators and us, the other party may act in a manner adverse to us and could limit our ability to implement our strategies. Furthermore, our collaborators may not properly obtain, maintain, enforce or defend our intellectual property or proprietary rights or may use our proprietary information in such a way as to invite litigation that could jeopardize or invalidate our proprietary information or expose us to potential litigation. In addition, we cannot control the amount and timing of resources our collaborators may devote to our products and product candidates. They may separately pursue competing products, therapeutic approaches or technologies to develop treatments for the diseases targeted by us. Competing products, either developed by the collaborators or to which the collaborators have rights, may result in the withdrawal of support for our products and product candidates. Even if our collaborators continue their contributions to the strategic collaborations, they may nevertheless determine not to actively pursue the development or commercialization of any resulting products. Additionally, if our collaborators pursue different clinical or regulatory strategies with their product candidates based on similar technology as is used in our products and product candidates, adverse events with their product candidates could negatively affect our products and product candidates. Any of these developments could harm our development and commercialization efforts which adversely impact our business and operations.

**Risks Related to Intellectual Property**

***If we are unable to obtain, maintain or protect our intellectual property rights in any products or technologies we develop, or if the scope of the intellectual property protection obtained is not sufficiently broad, third parties could develop and commercialize products and technology similar or identical to ours, and we may not be able to compete effectively in our market.***

Our success depends in significant part on our own and any of our licensors' ability to obtain, maintain and protect patents and other intellectual property rights and operate without infringing, misappropriating, or otherwise violating the intellectual property rights of others. To protect our proprietary position, we have filed numerous patent applications both in the United States and in foreign jurisdictions to obtain

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patent rights to inventions we have developed that are important to our business, including ZYNLONTA. We have also licensed from third parties rights to patents and other intellectual property, including from MedImmune with respect to the PBD technology we use for our PBD-based ADCs, from Synaffix B.V. ("Synaffix") for site-specific conjugation technology we use in ADCT-601 and ADCT-701, and from other parties for some of our other product candidates and related technology. If we or our current or future licensors are unable to obtain or maintain patent protection with respect to such inventions and technology, our business, financial condition, results of operations and prospects could be materially harmed.

The patent prosecution process is expensive, time-consuming and complex and uncertain, and we and our current or future licensors may not be able to prepare, file, prosecute, maintain and enforce all necessary or desirable patent applications at a reasonable cost or in a timely manner. Patents may be invalidated and patent applications may not be granted for a number of reasons, including known and unknown prior art (including our own prior art), deficiencies in the patent applications or the lack of novelty of the underlying inventions or technology. It is also possible that we or our current and future licensors will fail to identify patentable aspects of inventions made in the course of research, development and commercialization activities in time to obtain patent protection. Although we enter into non-disclosure and confidentiality agreements with parties who have access to confidential or patentable aspects of our research, development and commercialization activities, such as our employees, corporate collaborators, outside scientific collaborators, CROs, consultants, advisors and other third parties, any of these parties may breach the agreements and disclose such activities before a patent application is filed, thereby jeopardizing our ability to seek patent protection. In addition, publications of discoveries in the scientific literature often lag behind actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until eighteen months after filing, or in some cases not at all. Therefore, we cannot be certain that we or our current or future licensors were the first to make the inventions claimed in our owned or licensed patents or patent applications, or that we or our current or future licensors were the first to file for patent protection of such inventions.

Moreover, in some circumstances, we may not have the right to control the preparation, filing, prosecution, maintenance, enforcement and defense of patents and patent applications covering technology that we license from third parties, and are reliant on our licensors. For example, pursuant to our agreements with MedImmune, MedImmune retains control of the preparation, filing, prosecution, maintenance, enforcement and defense of certain of the patents and patent applications licensed to us. Therefore, these patents and applications may not be prepared, filed, prosecuted, maintained, enforced and defended in a manner consistent with the best interests of our business. If our current or future licensors fail to prosecute, maintain, enforce or defend such patents and other intellectual property rights, are not fully cooperative or disagree with us as to the prosecution, maintenance or enforcement of any patent rights, or lose rights to those patents or patent applications, the rights that we have licensed may be reduced or eliminated, and our right to develop and commercialize any of our products and product candidates that are the subject of such licensed rights could be adversely affected.

The patent position of biotechnology companies generally is highly uncertain, involves complex legal and factual questions and has, in recent years, been the subject of much litigation. As a result, the issuance, scope, validity, enforceability and commercial value of our and our current or future licensors' patent rights are highly uncertain. Our owned and licensed pending and future patent applications may not result in patents being issued which protect the products or technologies we develop, in whole or in part, or which effectively prevent others from commercializing competitive technologies and products. Moreover, the patent examination process may require us or our current and future licensors to narrow the scope of the claims of our owned or licensed pending and future patent applications, which may limit the scope of patent protection that may be obtained. Additionally, the scope of patent protection can be reinterpreted after issuance. Even if our owned or licensed pending and future patent applications issue as patents, they may not issue in a form that will provide us with any meaningful protection, prevent competitors or other third parties from competing with us, or otherwise provide us with any competitive advantage. Any patents that we hold or in-license may be challenged, narrowed, circumvented or invalidated by third parties in court or in patent offices in the United States and abroad. Our owned or licensed patent applications cannot be enforced against third parties practicing the technology claimed in such applications unless and until a patent issues from such applications, and then, only to the extent the issued claims cover the technology. Our competitors or other third parties may also be able to circumvent our patents by developing similar or alternative technologies or products in a non-infringing manner.

We may be subject to a third-party pre-issuance submission of prior art to the United States Patent and Trademark Office ("USPTO"). We cannot assure you that all of the potentially relevant prior art relating to our patents and patent applications has been found. If such prior art exists, it can invalidate a patent or prevent a patent from issuing from a pending patent application. Even if patents do successfully issue and even if such patents cover our products and product candidates, third parties may initiate an opposition, interference, reexamination, post-grant review, *inter partes* review, nullification or derivation action in court or before patent offices, or other proceedings challenging the inventorship, validity, enforceability or scope of such patents, which may result in the patent claims being narrowed or invalidated. An adverse determination in any such proceeding or litigation could reduce the scope of, or invalidate, the patent rights we own or license, allow third parties to commercialize the products or technologies we develop and compete directly with us, without payment to us, or result in our inability to manufacture or commercialize products without infringing third-party patent rights. Such proceedings also may result in substantial cost and require significant time and attention from our scientific and management personnel, even if the eventual outcome is favorable to us. Consequently, there can be no assurance that any product, product candidate or technology we develop will be protectable or remain protected by valid and enforceable patents. In addition, if the breadth or strength of protection provided by our patents or patent applications is threatened, regardless of the outcome, it could dissuade companies from collaborating with us to license, develop or commercialize current or future products and product candidates.

Because patent applications in the United States and most other countries are confidential for a period of time after filing, and some remain so until issued, we cannot be certain that we or our current and future licensors were the first to file any patent application related to a product or product candidate. Furthermore, if third parties have filed such patent applications on or before March 15, 2013, an interference proceeding

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in the United States can be initiated by such third parties to determine who was the first to invent any of the subject matter covered by the patent claims of our applications. If third parties have filed such applications after March 15, 2013, a derivation proceeding in the United States can be initiated by such third parties to determine whether our invention was derived from theirs. Even where we have a valid and enforceable patent, we may not be able to exclude others from practicing our invention where the other party can show that they used the invention in commerce before our filing date or the other party benefits from a compulsory license. Any of the foregoing could have a material adverse effect on our business, results of operations, financial condition and prospects.

***We may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time-consuming and unsuccessful, and our issued patents covering one or more of our products, product candidates or technologies, including ZYNLONTA or the technology we use in our products and product candidates, could be found invalid or unenforceable if challenged in court.***

Competitors and other third parties may infringe, misappropriate or otherwise violate our issued patents or other intellectual property or the patents or other intellectual property of our licensors. To protect our competitive position, we or our licensors may, from time to time, resort to litigation in order to enforce or defend any patents or other intellectual property rights owned by or licensed to us, or to determine or challenge the scope or validity of patents or other intellectual property rights of third parties. Enforcement of intellectual property rights is difficult, unpredictable and expensive, and many of our or our licensors' or collaboration partners' adversaries in these proceedings may have the ability to dedicate substantially greater resources to prosecuting these legal actions than we or our licensors or collaboration partners can. Accordingly, despite our or our licensors' or collaboration partners' efforts, we or our licensors or collaboration partners may not prevent third parties from infringing upon, misappropriating or otherwise violating intellectual property rights we own or control, particularly in countries where the laws may not protect those rights as fully as in the United States and the European Union. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. We may fail in enforcing our rights, in which case third parties, including our competitors, may be permitted to use our technology without being required to pay us any license fees.

If we or one of our current or future licensors were to initiate legal proceedings against a third party to enforce a patent covering one of our products or product candidates, the defendant could counterclaim that such patent is invalid or unenforceable. In patent litigation in the United States and in Europe, defendant counterclaims alleging invalidity or unenforceability are commonplace. A claim for a validity challenge may be based on failure to meet any of several statutory requirements, for example, lack of novelty, obviousness or non-enablement. A claim for unenforceability could involve an allegation that someone connected with prosecution of the patent withheld relevant information from the USPTO or the European Patent Office or made a misleading statement during prosecution. Third parties may also raise similar claims before the USPTO or an equivalent foreign body, even outside the context of litigation. Potential proceedings include reexamination, post-grant review, *inter parte*s review, interference proceedings, derivation proceedings and equivalent proceedings in foreign jurisdictions (e.g., opposition proceedings). Such proceedings could result in the revocation of, cancellation of, or amendment to our patents in such a way that they no longer cover our technology or any products or product candidates that we may develop. The outcome following legal assertions of invalidity and unenforceability during patent litigation is unpredictable. If a defendant were to prevail on a legal assertion of invalidity or unenforceability, we would lose at least part, and perhaps all, of the patent protection on one or more of our products or product candidates or certain aspects of the PBD technology we use in our products and product candidates, and third parties, including our competitors, could compete directly with us, without payment to us. Such a loss of patent protection could have a material adverse impact on our business, financial condition, results of operations and prospects. Further, litigation could result in substantial costs and diversion of management resources, regardless of the outcome, and this could harm our business and financial results. Patents and other intellectual property rights also will not protect our technology if competitors design around our protected technology without infringing our patents or other intellectual property rights.

In addition, our patents or the patents of our licensors may become involved in inventorship or priority disputes. Interference proceedings provoked by third parties or brought by us or declared by the USPTO may be necessary to determine the priority of inventions with respect to our or our licensors' patents or patent applications. If we or our licensors are unsuccessful in any interference proceedings to which we or they are subject, we may lose valuable intellectual property rights through the loss of one or more patents owned or licensed or our owned or licensed patent claims may be narrowed, invalidated or held unenforceable. If we or our licensors are unsuccessful in any interference proceeding or other priority or inventorship dispute, we may be required to obtain and maintain licenses from third parties, including parties involved in any such interference proceedings or other priority of inventorship disputes. Such licenses may not be available on commercially reasonable terms or at all, or may be non-exclusive. If we are unable to obtain and maintain such licenses, we may need to cease the development, manufacture and commercialization of one or more of the products and product candidates we may develop. The loss of exclusivity or narrowing of our owned or licensed patent claims could limit our ability to stop others from using or commercializing similar or identical technology and products. Any of the foregoing could have a material adverse effect on our business, results of operations, financial condition and prospects.

***If we fail to comply with our obligations in the agreements under which we license intellectual property rights from third parties or otherwise experience disruptions to our business relationships with our licensors, we could lose the ability to continue the development and commercialization of our products and product candidates.***

We are party to a number of intellectual property and technology licenses that are important to our business. For example, the PBD technology we use to generate our PBD-based ADCs was developed by, and is licensed on a target-exclusive basis from, MedImmune. All of our ADC products, product candidates and research programs utilize a PBD-based warhead. For more information regarding these agreements,

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see "Item 10. Additional Information—C. Material Contracts." If we fail to comply with our obligations under these or our other agreements, including payment and diligence terms, our current and future licensors may have the right to terminate these agreements, in which event we may not be able to develop, manufacture, market or sell any product that is covered by these agreements or may face other penalties under these agreements. Such an occurrence could adversely affect the value of the products and product candidates being developed under any such agreement. Termination of these agreements or reduction or elimination of our rights under these agreements may result in our having to negotiate new or reinstated agreements, which may not be available to us on equally favorable terms, or at all, or cause us to lose our rights under these agreements, including our rights to intellectual property or technology important to our development programs. Accordingly, termination of these agreements may require us to cease the development of our products and product candidates, including ZYNLONTA.

In addition, the agreements under which we license intellectual property or technology from third parties are generally complex, and certain provisions in such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology, or increase what we believe to be our financial or other obligations under the relevant agreements. Moreover, if disputes over intellectual property that we have licensed prevent or impair our ability to maintain our current licensing arrangements on commercially acceptable terms, we may be unable to successfully develop and commercialize the affected products and product candidates. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and prospects.

***We may not be successful in obtaining additional intellectual property rights necessary or required to further develop our products and product candidates.***

A third party may hold intellectual property, including patent rights, that is important or necessary to the development of our products and product candidates. In order to avoid infringing these third-party patents, we may find it necessary or prudent to obtain licenses from such third-party intellectual property holders. Moreover, we may need to obtain additional licenses from our existing licensors and others to advance our research or allow commercialization of products and product candidates we may develop. In addition, many of our patents are co-owned with MedImmune, which licenses its interest in such patents to us. With respect to any patents we co-own with third parties, we may require licenses to such co-owners' interest to such patents. In addition, we may need the cooperation of any co-owners of our patents in order to enforce such patents against third parties, and such cooperation may not be provided to us. We may be unable to secure such licenses or otherwise acquire or in-license any compositions, methods of use, processes or other intellectual property rights from third parties that we identify as necessary for products and product candidates we develop, including ZYNLONTA. The licensing or acquisition of third-party intellectual property rights is a competitive area, and more established companies may pursue strategies to license or acquire third-party intellectual property rights that we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size, capital resources and greater clinical development or commercialization capabilities. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. As a result, we may be unable to obtain any such licenses at a reasonable cost or on reasonable terms, if at all. In that event, we may be required to expend significant time and resources to redesign our technology, products, product candidates or the methods for manufacturing them or to develop or license replacement technology, all of which may not be feasible on a technical or commercial basis. If we are unable to do so, we may be unable to develop or commercialize the affected products and product candidates, including ZYNLONTA, which could significantly harm our business, financial condition, results of operations and prospects. In addition, even if we obtain a license, it may be non-exclusive, thereby giving third parties, including our competitors, access to the same technologies licensed to us. In addition, any license we obtain could require us to make substantial licensing and royalty payments. If we are unable to obtain an exclusive license to any third-party or co-owned patents or patent applications, such parties may be able to license their rights to other third parties, including our competitors, and such third parties could market competing products and technology. Any of the foregoing could have a material adverse effect on our business, results of operations, financial condition and prospects.

***Third parties may initiate legal proceedings against us alleging that we infringe, misappropriate, or otherwise violate their intellectual property rights or we may initiate legal proceedings against third parties to challenge the validity or scope of intellectual property rights controlled by third parties, the outcome of which would be uncertain and could have an adverse effect on the success of our business.***

Our commercial success depends upon our ability to develop, manufacture, market and sell our products and product candidates and use our and our current or future licensors' proprietary technologies without infringing, misappropriating or otherwise violating the intellectual property rights of third parties. Third parties may initiate legal proceedings against us or our current and future licensors alleging that we or our current and future licensors infringe, misappropriate or otherwise violate their intellectual property rights. In addition, we and our licensors have initiated, and we and our current and future licensors may in the future initiate, legal proceedings against third parties to challenge the validity or scope of intellectual property rights controlled by third parties, including in oppositions, interferences, reexaminations, *inter partes* reviews or derivation proceedings in the United States or other jurisdictions. These proceedings can be expensive and time-consuming, and many of our or our current and future licensors' adversaries in these proceedings may have the ability to dedicate substantially greater resources to prosecuting these legal actions than we or our current and future licensors. Numerous U.S.- and foreign-issued patents and pending patent applications which are owned by third parties exist in the fields in which we are pursuing our products and product candidates. We are aware of a patent family with issued claims that could be construed to cover the linker in ADCT-601, ADCT-701 and ADCT-212. As the biotechnology and pharmaceutical industries expand and more patents are issued, the risk increases that we may be subject to claims of infringement of the patent rights of third parties.

There are, and in the future, we may identify, other third-party patents or patent applications with claims to materials, formulations, methods of manufacture or methods for treatment related to the use or manufacture of one or more of our products and product candidates. Because patent applications can take many years to issue, there may be currently pending patent applications that may later result in issued

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patents that our products and product candidates may infringe. In addition, third parties may obtain patents in the future and claim that use of our technologies infringes upon these patents. Parties making infringement, misappropriation or other intellectual property claims against us may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize one or more of our products and product candidates, including ZYNLONTA. Defense of these claims, regardless of their merit, would involve substantial litigation expense and would be a substantial diversion of management and employee resources. In addition, even if we believe any third-party intellectual property claims are without merit, there is no assurance that a court would find in our favor on questions of validity, enforceability, priority or non-infringement. A court of competent jurisdiction could hold that such third-party patents are valid, enforceable and infringed, which could materially and adversely affect our ability to commercialize any of our products, product candidates or technologies covered by the asserted third-party patents. In order to successfully challenge the validity of any such third-party U.S. patents in federal court, we would need to overcome a presumption of validity. As this burden is a high one requiring us to present clear and convincing evidence as to the invalidity of any such U.S. patent claim, there is no assurance that a court of competent jurisdiction would invalidate the claims of any such U.S. patent. An unfavorable outcome could require us or our current and future licensors to cease using the related technology or developing or commercializing our products and product candidates, or to attempt to license rights to it from the prevailing party. If we are not successful in defending a third-party claim of infringement, we may be enjoined from continuing to sell our products or our business could be harmed if the prevailing party does not offer us or our current and future licensors a license on commercially reasonable terms or at all. Even if we or our current and future licensors obtain a license, it may be non-exclusive, thereby giving our competitors access to the same technologies licensed to us or our current and future licensors, and it could require us to make substantial licensing and royalty payments. In addition, we could be found liable for monetary damages, including treble damages and attorneys' fees, if we are found to have willfully infringed a patent. A finding of infringement, misappropriation or other violation of third-party intellectual property could prevent us from commercializing our products and product candidates or force us to cease some of our business operations, which could harm our business. Claims that we have misappropriated the confidential information or trade secrets of third parties could have a similar material adverse effect on our business, results of operations, financial condition and prospects. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation or administrative proceedings, there is a risk that some of our confidential information could be compromised by disclosure.

***We may be subject to claims by third parties asserting that we or our employees, consultants or advisors have misappropriated their intellectual property, or claiming ownership of what we regard as our own intellectual property.***

Many of our employees, consultants, and advisors, including our senior management, were previously employed at other biopharmaceutical companies, including our competitors or potential competitors. Some of these employees executed proprietary rights, non-disclosure and/or non-competition agreements in connection with such previous employment. Although we try to ensure that our employees, consultants and advisors do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that we or these individuals have used or disclosed confidential information or intellectual property, including trade secrets or other proprietary information, of any such individual's current or former employer. Litigation may be necessary to defend against these claims. If we fail in defending against any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. Such intellectual property rights could be awarded to a third party, and we could be required to obtain a license from such third party to commercialize our technology or products. Such a license may not be available on commercially reasonable terms, or at all.

In addition, while it is our policy to require our employees and contractors who may be involved in the conception or development of intellectual property to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement with each party who, in fact, conceives or develops intellectual property that we regard as our own. The assignment of intellectual property rights may not be self-executing, or the assignment agreements may be breached, and we may be forced to bring claims against third parties, or defend claims that they may bring against us, to determine the ownership of what we regard as our intellectual property. Such claims could have a material adverse effect on our business, results of operations, financial condition and prospects.

***Changes in patent law could diminish the value of patents in general, thereby impairing our ability to protect our products and product candidates.***

Obtaining and enforcing patents in the biopharmaceutical industry involves both technological and legal complexity and is therefore costly, time-consuming and inherently uncertain. Changes in either the patent laws or the interpretation of the patent laws in the United States or other jurisdictions could increase the uncertainties and costs surrounding the prosecution of patent applications and the enforcement or defense of issued patents. Depending on future actions by the U.S. Congress, the U.S. courts, the USPTO and the relevant law-making bodies in other countries, the laws and regulations governing patents could change in unpredictable ways that would weaken our ability to obtain new patents or to enforce our existing patents and patents that we might obtain in the future.

***If we do not obtain patent term extension for any product candidates we may develop, our business may be materially harmed.***

Patents have a limited lifespan. Due to the amount of time required for the development, testing and regulatory review of new product candidates, patents protecting such candidates might expire before or shortly after such candidates are commercialized. As a result, our owned and licensed patent portfolio may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours. In the United States, if all maintenance fees are timely paid, the natural expiration of a patent is generally 20 years from its earliest U.S. non-provisional filing date. Various extensions may be available, but the life of a patent, and the protection it affords, is limited. Even if patents covering our product candidates are obtained, once the patent life has expired for a product, we may be open to competition from competitive

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medications, including biosimilar or generic medications. At the time of the expiration of any relevant patents, the underlying technology covered by such patents can be used by any third party, including competitors. Although the patent term extensions under the Drug Price Competition and Patent Term Restoration Action of 1984 (the "Hatch-Waxman Amendments") in the United States may be available to extend the patent term, we cannot provide any assurances that any such patent term extension will be obtained and, if so, for how long.

***We may not be able to protect our intellectual property rights throughout the world.***

Filing, prosecuting, enforcing and defending patents on products and product candidates in all countries throughout the world would be prohibitively expensive, and our owned or licensed intellectual property rights may not exist in some countries outside the United States or may be less extensive in some countries than in the United States. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States. For example, in some jurisdictions, including Europe, it is more difficult to obtain patents protecting a medical method of use, and any such patents we are able to obtain in such jurisdictions may issue with narrower scope than their U.S. counterparts. Many countries have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties, and many countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have limited remedies, which could materially diminish the value of such patent. Consequently, we and our current and future licensors may not be able to prevent third parties from practicing our owned or licensed inventions in all countries outside the United States, or from selling or importing products made using our owned or licensed inventions in and into the United States or other jurisdictions.

***If we are unable to protect our confidential information and trade secrets, our business and competitive position would be harmed.***

In addition to seeking patents for some of our technology, products and product candidates, we also rely on trade secrets, including unpatented know-how, technology and other proprietary information to maintain our competitive position. Trade secrets can be difficult to protect. We seek to protect these trade secrets, in part, by entering into non-disclosure, confidentiality and invention assignment agreements with parties who have access to them, such as our employees, corporate collaborators, outside scientific collaborators, CROs, contract manufacturers, consultants, advisors and other third parties. We also enter into confidentiality agreements with our employees and consultants. However, there can be no assurance that we have entered into such agreements with each party that may have or have had access to our trade secrets or proprietary technology and processes. Despite these efforts, any of these parties may breach the agreements and disclose our proprietary information, including our trade secrets, and we may not be able to obtain adequate remedies for such breaches. Misappropriation or unauthorized disclosure of our trade secrets could significantly affect our competitive position and may have a material adverse effect on our business.

Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the outcome is unpredictable. Some courts both within and outside the United States may be less willing or unwilling to protect trade secrets. Furthermore, trade secret protection does not prevent competitors from independently developing substantially equivalent information and techniques, and we cannot guarantee that our competitors will not independently develop substantially equivalent information and techniques. If a competitor lawfully obtained or independently developed any of our trade secrets, we would have no right to prevent such competitor from using that technology or information to compete with us. Failure on our part to adequately protect our trade secrets or confidential information could have a material adverse effect on our business, results of operations, financial condition and prospects.

***If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets and our business may be adversely affected.***

Our registered or unregistered trademarks or trade names may be challenged, circumvented, declared generic or determined to be infringing on other marks. There can be no assurance that competitors will not infringe our trademarks, that we will have adequate resources to enforce our trademarks or that any of our current or future trademark applications will be approved. During trademark registration proceedings, we may receive rejections and, although we are given an opportunity to respond, we may be unable to overcome such rejections. In addition, in proceedings before the USPTO and in proceedings before comparable agencies in many foreign jurisdictions, trademarks are examined for registrability against prior pending and registered third-party trademarks, and third parties are given an opportunity to oppose registration of pending trademark applications and/or to seek cancellation of registered trademarks. Applications to register our trademarks may be finally rejected, and opposition or cancellation proceedings may be filed against our trademarks, which may necessitate a change in branding strategy if such rejections and proceedings cannot be overcome or resolved. For example, in some jurisdictions the applicable trademark office has rejected our corporate name for registration, or a third party has objected to a published application for a product trademark, which, in some cases, has caused us to abandon or limit our applications, and rely more on the registration for our corporate logo.

**Risks Related to Our Business and Industry**

***We may be unable to attract and retain senior management and key scientific personnel.***

Our ability to compete in the highly competitive biotechnology industry depends upon our ability to attract, motivate and retain highly qualified managerial, scientific and medical personnel. The loss of the services of our other senior management members, other key employees and scientific and medical advisors could impede the achievement of our research, development and commercialization objectives. Members of our senior management are employed pursuant to employment agreements with no term and that require advance notice for termination, but these persons may terminate their employment with us at any time. In addition, laws and regulations on executive compensation, including

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legislation in our home country, Switzerland, may restrict our ability to attract, motivate and retain the required level of qualified personnel. In Switzerland, legislation affecting public companies has been passed that, among other things, (i) imposes an annual binding shareholders' "say-on-pay" vote with respect to the compensation of the members of (a) the executive committee and (b) the board of directors, (ii) prohibits severance, advances, transaction premiums and similar payments to executive officers and directors, and (iii) requires companies to specify various compensation-related matters in their articles of association, thus requiring them to be approved by a shareholders' vote. We do not maintain "key person" insurance for any of our executives or other employees. Further, we compensate our employees, in part, using share-based compensation, the effectiveness of which is influenced by the price of our common shares. If the price of our common shares continues to decrease or is subject to continued volatility, which may occur for various factors, including those beyond our control, we may be unable to attract or retain qualified personnel. Competition for skilled personnel is intense, particularly in the biotechnology industry. We face competition for personnel from other companies, universities, public and private research institutions and other organizations. This competition may limit our ability to hire and retain highly qualified personnel on acceptable terms, or at all. This possibility is further compounded by the novel nature of our product candidates, as fewer people are trained in or are experienced with product candidates of this type.

***Our employees, agents, contractors or collaborators may engage in misconduct or other improper activities.***

We cannot ensure that our compliance controls, policies and procedures will in every instance protect us from acts committed by our employees, agents, contractors or collaborators that would violate the laws or regulations of the jurisdictions in which we operate, including, without limitation, healthcare, employment, foreign corrupt practices, environmental, competition, and patient privacy and other privacy laws and regulations. In particular, because our business is heavily regulated and therefore involves significant interaction with public officials and because the healthcare providers and drug purchasers in certain countries are employed by their government, we face heightened risk with respect to compliance with the Foreign Corrupt Practices Act (the "FCPA"). There is no certainty that all of our employees, agents, contractors, or collaborators, or those of our affiliates, will comply with all applicable laws and regulations, particularly given the high level of complexity of these laws. We have provisions in our Code of Business Conduct and Ethics, an anti-corruption policy and certain controls and procedures in place that are designed to mitigate the risk of non-compliance with anti-corruption and anti-bribery laws. However, it is not always possible to identify and deter employee misconduct, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from government investigations or other actions stemming from a failure to comply with these laws or regulations. Violations of these laws and regulations could result in, among other things, significant administrative, civil and criminal fines and sanctions against us, our officers, or our employees, the closing of our facilities, exclusion from participation in federal healthcare programs including Medicare and Medicaid, implementation of compliance programs, integrity oversight and reporting obligations, and prohibitions on the conduct of our business.

***Product liability lawsuits and product recalls could cause us to incur substantial liabilities and to limit development and commercialization of our products.***

We face an inherent risk of product liability and product recalls as a result of the clinical testing of our product candidates in human clinical trials and as a result of the commercialization of approved products. Side effects or adverse events known or reported to be associated with, or manufacturing defects in, the products sold by us could exacerbate a patient's condition or could result in serious injury or impairments or even death. This risk is heightened by our use of highly potent PBD-based ADCs. If we cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required to limit the research and development and commercialization of our products and product candidates. Even a successful defense would require significant financial and management resources. We currently carry product liability insurance in an amount that we believe is appropriate for our business. Although we maintain such insurance, any claim that may be brought against us could result in a court judgment or settlement in an amount that is not covered, in whole or in part, by our insurance or that is in excess of the limits of our insurance coverage. Our insurance policies also have various exclusions, and we may be subject to a product liability claim for which we have no coverage. If we are unable to obtain or maintain sufficient insurance coverage at an acceptable cost or to otherwise protect against potential product liability claims, it could prevent or inhibit the development of our products and product candidates and the commercial production and sale of our products.

To the extent that a product fails to conform to its specifications or comply with the applicable laws or regulations, we or our partners may be required to or may decide to voluntarily recall the product or regulatory authorities may request or require that we recall a product even if there is no immediate potential harm to a patient. Recalls are costly and take time and effort to administer and damage our reputation and attractiveness as a collaborator. Even if a recall only initially relates to a single product, product batch, or a portion of a batch, recalls may later be expanded to additional products or batches or we or our partners may incur additional costs and need to dedicate additional efforts to investigate and rule out the potential for additional impacted products or batches. Moreover, if any of our partners recall a product due to an issue with a product or component that we supplied, they may claim that we are responsible for such issue and may seek to recover the costs related to such recall or be entitled to certain contractual remedies from us. Recalls may further result in decreased demand for our or our partners' products, could cause our partners or distributors to return products to us for which we may be required to provide refunds or replacement products, or could result in product shortages. Recalls may also require regulatory reporting and prompt regulators to conduct additional inspections of our or our partners' or contractors' facilities, which could result in findings of noncompliance and regulatory enforcement actions. A recall could also result in product liability claims by individuals and third-party payers and the suspension, variation, or withdrawal of regulatory approval.

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***Our internal computer systems, or those of our partners, third-party CROs or other contractors or consultants, may fail or suffer security incidents, which could result in a material disruption of our research and development and commercialization programs and significant monetary losses.***

Despite the implementation of security measures, our internal computer systems and those of our current or future partners, third-party CROs and other contractors and consultants have been subject to attacks by, and may be vulnerable to damage from, various methods, including cybersecurity attacks, breaches, intentional or accidental mistakes or errors, or other technological failures which can include, among other things, computer viruses, malicious codes, employee theft or misuse, unauthorized copying of our website or its content, unauthorized access attempts including third parties gaining access to systems using stolen or inferred credentials, denial-of-service attacks, phishing attempts, service disruptions, natural disasters, fire, terrorism, war and telecommunication and electrical failures. As the cyber-threat landscape evolves, these attacks are growing in frequency, sophistication and intensity, and are becoming increasingly difficult to detect. If a failure, accident or security breach were to occur and cause interruptions in our, our partners' or our CROs' operations, it could result in a misappropriation of confidential information, including our intellectual property or financial information, a material disruption of our programs and significant monetary losses. In particular, because of our approach to running multiple clinical trials in parallel, any breach of our computer systems may result in a loss of data or compromised data integrity across many of our programs in many stages of development. Any such breach, loss or compromise of clinical trial participant personal data may also subject us to civil fines and penalties, including under the GDPR and relevant member state law in the European Union, the UK GDPR or the CCPA, HIPAA and other relevant state and federal privacy laws in the United States. Moreover, because we maintain sensitive company data on our computer networks, including our intellectual property and proprietary business information, any such security breach may compromise information stored on our networks and may result in significant data losses or theft of our intellectual property or proprietary business information. We currently carry cybersecurity liability insurance in an amount that we believe is appropriate for our business. However, our current cybersecurity liability insurance, and any such insurance that we may obtain in the future, may not cover the damages we would sustain based on any breach of our computer security protocols or other cybersecurity attack. To the extent that any disruption or security breach results in a loss of or damage to our data or applications or other data or applications relating to our technology, products or product candidates, or inappropriate disclosure of confidential or proprietary information, our reputation could be harmed and we could incur significant liabilities and the development and commercialization of our products and product candidates could be disrupted.

***Our business is subject to economic, political, regulatory and other risks associated with conducting business internationally.***

We are a global organization and thus subject to the risks associated with international operations, including inflationary pressures, economic weakness or political instability in particular non-U.S. economies and markets; global trends involving pharmaceutical pricing; differing regulatory requirements for drug approvals in non-U.S. countries; differing reimbursement, pricing and insurance regimes; potentially reduced protection for, and complexities and difficulties in obtaining, maintaining, protecting and enforcing, intellectual property rights; difficulties in compliance with non-U.S. laws and regulations; changes in non-U.S. regulations and customs, tariffs and trade barriers; changes in non-U.S. currency exchange rates and currency controls; changes in a specific country's or region's political or economic environment; trade protection measures, economic sanctions and embargoes, import or export licensing requirements or other restrictive actions by U.S. or non-U.S. governments; negative consequences from changes in tax laws; difficulties associated with staffing and managing international operations, including differing labor relations; production shortages resulting from any events affecting raw material supply or manufacturing capabilities abroad; business interruptions resulting from geopolitical actions and conflict, war and terrorism, including the recent conflict between Russia and the Ukraine and resulting sanctions, retaliatory measures, changes in the availability and price of various materials and effects on global financial markets; business interruptions resulting from natural disasters; and the impact of public health epidemics on employees and the global economy. In addition, as a result of the United Kingdom's exit from the European Union, we may face increasingly divergent regulations in Europe, with which may be expensive and time-consuming for us to comply.

***Our business could be adversely affected by the effects of health epidemics, pandemics and natural disasters.***

Our business could be adversely affected by health epidemics, pandemics and natural disasters. During the height of the COVID-19 pandemic, we modified our business practices to restrict employee travel and physical participation in meetings, events and conferences and experienced certain adverse impacts on our clinical trials and results of our commercialization efforts. In addition to these observed impacts of the COVID-19 pandemic, pandemics, epidemics or outbreaks of infectious diseases generally, including new variants of COVID-19, could also disrupt our research and development outcomes and schedules, clinical trials, commercialization efforts, supply and manufacturing of our products and regulatory submissions and interactions and could subject us to additional expenses and obligations. To the extent any pandemic, epidemic or outbreak of an infectious disease adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this "Risk Factors" section.

In addition, any unplanned event, such as a flood, fire, explosion, earthquake, extreme weather condition, medical epidemic, power shortage, telecommunication failure or other natural or man-made accidents or incidents that result in us being unable to fully use our facilities, or the manufacturing facilities of our third-party contract manufacturers, may have a material and adverse effect on our ability to operate our business and have significant negative consequences on our financial and operating conditions. Certain of these events may become more frequent and severe as a result of the effects of climate change. Loss of access to these facilities may result in increased costs, reduced revenues, delays in the development of our products and product candidates or the interruption of our business operations for a substantial period of time. We maintain business continuity insurance coverage at levels that we believe are appropriate for our business. However, in the event of an accident or incident at these facilities, there can be no assurance that the amounts of insurance will be sufficient to satisfy any damages and losses. If our facilities, or the manufacturing facilities of our third-party contract manufacturers, are unable to operate because of

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an accident or incident or for any other reason, even for a short period of time, any or all of our research and development programs and commercialization efforts may be harmed.

***If we fail to maintain an effective system of internal controls over financial reporting, we may not be able to accurately or timely report our financial condition or results of operations or prevent fraud.***

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls, or difficulties encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing conducted by us in connection with Section 404 of the Sarbanes-Oxley Act of 2002, or any subsequent testing conducted by our independent registered public accounting firm, may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses or that may require prospective or retroactive changes to our financial statements, or identify other areas for further attention or improvement. The failure to maintain controls compliant with Sarbanes-Oxley Act could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our shares.

***Our corporate compliance program cannot guarantee that we are in compliance with all potentially applicable laws and regulations and we have incurred and will continue to incur costs relating to compliance with applicable laws and regulations.***

As a biotechnology and pharmaceutical company, we are subject to a large body of legal and regulatory requirements, guidance, and recommendations from a variety of regulatory authorities, such as the FDA, the EMA, and HHS OIG. In addition, as a publicly traded company we are subject to significant regulations, including the Sarbanes-Oxley Act of 2002. While we have developed and instituted a corporate compliance program based on what we believe are the current best practices and continue to update the program in response to newly implemented regulatory requirements and guidance, we cannot ensure that we are or will be in compliance with all potentially applicable regulations. Failure to comply with all potentially applicable laws and regulations could lead to the imposition of fines, cause the value of our common stock to decline, and impede our ability to raise capital or list our securities on certain securities exchanges.

**Risks Related to Our Common Shares**

***The market price of our common shares has been volatile.***

The market price of shares of our common shares could be subject to wide fluctuations in response to many risk factors listed in this "Risk Factors" section, and others beyond our control such as actions by our shareholders, collaborators or competitors and general market and economic conditions. In particular, pharmaceutical, biotechnology and other life sciences company stocks have historically experienced significant volatility. As we operate in a single industry, we are especially vulnerable to these factors to the extent that they affect our industry. In the past, securities class action litigation has often been initiated against companies following periods of volatility in their stock price. This risk is especially relevant for biotechnology companies, which have experienced significant stock price volatility in recent years. Securities litigation could result in substantial costs and divert our management's attention and resources, and could also require us to make substantial payments to satisfy judgments or to settle litigation.

***Future sales, or the possibility of future sales, of a substantial number of our common shares could adversely affect the price of our common shares.***

Certain of our shareholders have entered into agreements with us, which contain certain lockup obligations that expire on February 2, 2024. A.T. Holdings II Sàrl ("A.T. Holdings II") agreed that, without our prior written consent, it will not, and will not publicly disclose an intention to offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any of our common shares or any other securities convertible into or exercisable or exchangeable for our common shares, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our common shares. The foregoing restrictions do not apply to any transfers or dispositions to affiliates (provided that such recipient enters into a customary lock-up agreement with us), any transfers or dispositions to partners, members, stockholders or other equity holders or those of a subsidiary (provided that such recipient is not the lockup party or an affiliate of the lockup party and such recipient enters into a customary lock-up agreement with us), sales in the public offering that occurred on February 2, 2023, pledges to Oaktree Fund Administration, LLC ("Oaktree") pursuant to debt agreements and any transfers to Oaktree upon foreclosure, and transfers in connection with a change-of-control transaction. Oaktree Fund Administration LLC, OCM Strategic Credit Investments S.à r.l., OCM Strategic Credit Investments 2 S.à.r.l., OCM Strategic Credit Investments 3 S.à r.l., Oaktree Gilead Investment Fund AIF (Delaware), L.P., Oaktree Huntington-GCF Investment Fund (Direct Lending AIF), L.P., Oaktree Specialty Lending Corporation, and Pathway Strategic Credit Fund III, L.P. (collectively, the "Counterparties") agreed that, without our prior written consent, it will not, and will not publicly disclose an intention to offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any of the shares held by A.T. Holdings II pledged to the Counterparties, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such shares. The foregoing restrictions do not apply to any transfers or dispositions to affiliates (provided that such recipient enters into a customary lock-up agreement with us), any transfer or dispositions to partners, members, stockholders or other equity holders (provided that such recipient enters into a customary lock-up agreement with us), and transfers in connection with a change-of-control transaction. We, in our sole discretion, may release the common shares subject to the foregoing

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restrictions in whole or in part at any time. After the end of the restricted period or if we waive the foregoing restrictions, if substantial amounts of common shares are sold in the public market or if the market perceives that such sales may occur, the market price of our common shares and our ability to raise capital through an issue of equity securities in the future could be adversely affected.

***Exercise of outstanding warrants will dilute existing shareholders' ownership interest.***

As of the date of this Annual Report, we have outstanding warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share (which are exercisable, on a cash or cashless basis, at the option of the holder at any time on or prior to May 19, 2025), warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 (which are exercisable, on a cash or cashless basis, at the option of the holder at any time on or prior to May 19, 2025) and warrants to purchase an aggregate of 527,295 common shares at an exercise price of USD 8.30 per share (which are exercisable, on a cash or a cashless basis, at the option of the holder at any time on or prior to August 15, 2032). The warrants also contain customary anti-dilution adjustments and will entitle holders to receive any dividends or other distributions paid on the underlying common shares prior to their expiration on an as-exercised basis. If our outstanding warrants are exercised into common shares, our existing shareholders' ownership interest will be diluted.

***We have never paid dividends and do not expect to pay any dividends in the foreseeable future.***

We have not paid any cash dividends since our incorporation. Even if future operations lead to significant levels of distributable profits, we currently intend to reinvest any earnings in our business and do not anticipate declaring or paying any cash dividends until we have an established revenue stream to support continuing dividends. In addition, any proposal for the payment of future dividends will be at the discretion of our board of directors after taking into account various factors including our business prospects, liquidity requirements, financial performance and new product development. Furthermore, payment of future dividends is subject to certain limitations pursuant to our current and future debt instruments, Swiss law and our articles of association. In addition, the Loan Agreement limits our ability to pay dividends. See "—Risks Related to Our Financial Position and Capital Requirements." Accordingly, investors cannot rely on dividend income from our common shares, and any returns on an investment in our common shares will likely depend entirely upon any future appreciation in the price of our common shares.

***If securities or industry analysts do not continue to publish research, or publish inaccurate or unfavorable research, about our business, the price of our common shares and our trading volume could decline.***

The trading market for our common shares depends, in part, on the research and reports that securities or industry analysts publish about us or our business. If one or more of the analysts who cover us downgrade our common shares or publish inaccurate or unfavorable research about our business, the price of our common shares would likely decline. In addition, if our operating results fail to meet the forecast of analysts, the price of our common shares would likely decline. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for our common shares could decrease, which might cause the price of our common shares and trading volume to decline.

***The rights of our shareholders may be different from the rights of shareholders in companies governed by the laws of U.S. jurisdictions.***

We are a Swiss corporation. Our corporate affairs are governed by our articles of association and by the laws governing companies incorporated in Switzerland. The rights of our shareholders and the responsibilities of members of our board of directors may be different from the rights and obligations of shareholders and directors of companies governed by the laws of U.S. jurisdictions. In particular, in the performance of its duties, our board of directors is required by Swiss law to consider the interests of our company, our shareholders, our employees and other stakeholders, in all cases with due observation of the principles of reasonableness and fairness. It is possible that some of these parties will have interests that are different from, or in addition to, shareholders' interests. Swiss law limits the ability of our shareholders to challenge resolutions made or other actions taken by our board of directors in court. Our shareholders generally are not permitted to file a suit to reverse a decision or an action taken by our board of directors, but are instead only permitted to seek damages for breaches of fiduciary duty. As a matter of Swiss law, shareholder claims against a member of our board of directors for breach of fiduciary duty would have to be brought to the competent courts in Epalinges, Canton of Vaud, Switzerland, or where the relevant member of our board of directors is domiciled. In addition, under Swiss law, any claims by our shareholders against us must be brought exclusively to the competent courts in Epalinges, Canton of Vaud, Switzerland. For a further summary of applicable Swiss company law, see "Item 10. Additional Information—B. Memorandum and Articles of Association". Accordingly, our shareholders do not have the same rights as those of a Delaware-incorporated company.

***Our shareholders enjoy certain rights that may limit our flexibility to raise capital, issue dividends and otherwise manage ongoing capital needs.***

Swiss law reserves for approval by shareholders certain corporate actions over which a board of directors would have authority in some other jurisdictions. For example, the payment of dividends and cancellation of treasury shares must be approved by shareholders. Swiss law also requires that our shareholders themselves resolve to, or authorize our board of directors to, increase our share capital. While our shareholders may authorize share capital that can be issued by our board of directors without additional shareholder approval, Swiss law limits this authorization to 50% of the issued share capital at the time of the authorization. The authorization, furthermore, has a limited duration of up to two years and must be renewed by the shareholders from time to time thereafter in order to be available for raising capital. Additionally, subject to specified exceptions, including exceptions explicitly described in our articles of association, Swiss law grants pre-emptive

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subscription rights to existing shareholders to subscribe for new issuances of shares. Swiss law also does not provide as much flexibility in the various rights and regulations that can attach to different categories of shares as do the laws of some other jurisdictions. These Swiss law requirements relating to our capital management may limit our flexibility, and situations may arise where greater flexibility would have provided benefits to our shareholders. See "Item 10. Additional Information—B. Memorandum and Articles of Association."

Our shares are not listed in Switzerland, our home jurisdiction. As a result, our shareholders do not benefit from certain provisions of Swiss law that are designed to protect shareholders in a public takeover offer or a change-of-control transaction.

Because our common shares are listed exclusively on the New York Stock Exchange ("NYSE") and not in Switzerland, our shareholders do not benefit from the protection afforded by certain provisions of Swiss law that are designed to protect shareholders in the event of a public takeover offer or a change-of-control transaction. For example, Article 120 of the Swiss Financial Market Infrastructure Act and its implementing provisions require investors to disclose their interest in our company if they reach, exceed or fall below certain ownership thresholds. Similarly, the Swiss takeover regime imposes a duty on any person or group of persons who acquires more than one-third of a company's voting rights to make a mandatory offer for all of the company's outstanding listed equity securities. In addition, the Swiss takeover regime imposes certain restrictions and obligations on bidders in a voluntary public takeover offer that are designed to protect shareholders. However, these protections are applicable only to issuers that list their equity securities in Switzerland and, because our common shares are listed exclusively on the NYSE, are not be applicable to us. Furthermore, since Swiss law restricts our ability to implement rights plans or U.S.-style "poison pills," our ability to resist an unsolicited takeover attempt or to protect minority shareholders in the event of a change of control transaction may be limited. Therefore, our shareholders may not be protected in the same degree in a public takeover offer or a change-of-control transaction as are shareholders in a Swiss company listed in Switzerland.

***U.S. shareholders may not be able to obtain judgments or enforce civil liabilities against us or certain of our executive officers and directors.***

We are organized under the laws of Switzerland and our registered office and domicile is located in Epalinges, Canton of Vaud, Switzerland. Moreover, a number of our directors and executive officers are not residents of the United States, and all or a substantial portion of the assets of such persons are located outside the United States. As a result, it may not be possible for investors to effect service of process within the United States upon us or upon such persons or to enforce against them judgments obtained in U.S. courts, including judgments in actions predicated upon the civil liability provisions of the federal securities laws of the United States. We have been advised by our Swiss counsel that there is doubt as to the enforceability in Switzerland of original actions, or in actions for enforcement of judgments of U.S. courts, of civil liabilities to the extent solely predicated upon the federal and state securities laws of the United States. Original actions against persons in Switzerland based solely upon the U.S. federal or state securities laws are governed, among other things, by the principles set forth in the Swiss Federal Act on Private International Law (the "PILA"). This statute provides that the application of provisions of non-Swiss law by the courts in Switzerland shall be precluded if the result is incompatible with Swiss public policy. Also, certain mandatory provisions of Swiss law may be applicable regardless of any other law that would otherwise apply.

Switzerland and the United States do not have a treaty providing for reciprocal recognition and enforcement of judgments in civil and commercial matters. The recognition and enforcement of a judgment of the courts of the United States in Switzerland is governed by the principles set forth in the PILA. This statute provides in principle that a judgment rendered by a non-Swiss court may be enforced in Switzerland only if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the non-Swiss court had jurisdiction pursuant to the PILA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the judgment of such non-Swiss court has become final and non-appealable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the judgment does not contravene Swiss public policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the court procedures and the service of documents leading to the judgment were in accordance with the due process of law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no proceeding involving the same parties and the same subject matter was first brought in Switzerland, or adjudicated in Switzerland, or was earlier adjudicated in a third state, and this decision is recognizable in Switzerland.

***Anti-takeover provisions in our articles of association could make an acquisition of us, which may be beneficial to our shareholders, more difficult.***

Our articles of association contain provisions that may have the effect of discouraging, delaying or preventing a change in control of us that shareholders may consider favorable, including transactions in which our shareholders may receive a premium for their shares. Our articles of association include provisions that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in certain cases, allow our board of directors to place up to 30,753,351 common shares, as well as any treasury shares that the Company may hold from time to time, and rights to acquire an additional 17,909,703 common shares with affiliates or third parties, without existing shareholders having statutory pre-emptive rights in relation to this share placement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allow our board of directors not to record any acquirer of common shares, or several acquirers acting in concert, in our share register as a shareholder with voting rights with respect to more than 15% of our share capital as set forth in the commercial register;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit the size of our board of directors to 12 members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require two-thirds of the votes represented at a shareholder meeting for amending or repealing the above-mentioned voting and recording restrictions, for amending the provision setting a maximum board size or providing for indemnification of our directors and members of our executive committee and for removing the chairman or any member of the board of directors before the end of his or her term of office.

These and other provisions, alone or together, could delay or prevent takeovers and changes in control. See "Item 10. Additional Information—B. Memorandum and Articles of Association." These provisions could also limit the price that investors might be willing to pay in the future for our common shares, thereby depressing the market price of our common shares.

***We are a foreign private issuer, and, as a result, we are not subject to certain rules and obligations that are applicable to a U.S. domestic public company and are not subject to certain NYSE corporate governance listing standards that are applicable to a NYSE-listed U.S. domestic public company.***

We report under the Exchange Act as a non-U.S. company with foreign private issuer status. Because we qualify as a foreign private issuer under the Exchange Act and although we furnish quarterly financial information to the SEC, we are exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including (i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; (ii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities, and liability for insiders who profit from trades made in a short period of time; and (iii) the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or current reports on Form 8-K upon the occurrence of specified significant events. Foreign private issuers are also exempt from the Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information.

Furthermore, because we are a foreign private issuer, we have elected to comply with our home country governance requirements and certain exemptions thereunder, rather than complying with certain of the NYSE corporate governance listing standards that are applicable to U.S. companies listed on the NYSE. For example, we are exempt from NYSE listing standards that require a listed U.S. company to have (i) a majority of the board of directors consist of independent directors, (ii) regularly scheduled executive sessions with only independent directors, (iii) a compensation committee and a nomination and corporate governance committee consist entirely of independent directors and (iv) an internal audit function. Our audit committee is required to comply with the provisions of Section 301 of the Sarbanes-Oxley Act and Rule 10A-3 of the Exchange Act, both of which are also applicable to NYSE-listed U.S. companies. Furthermore, NYSE listing standards generally require NYSE-listed U.S. companies to, among other things, seek shareholder approval for the implementation of certain equity compensation plans and issuances of securities, which we are not required to follow as a foreign private issuer. Accordingly, our shareholders may not have the same protections afforded to shareholders of companies that are not foreign private issuers. For an overview of our corporate governance principles, see "Item 10. Additional Information—B. Memorandum and Articles of Association" and "Item 16G. Corporate Governance."

***We expect that we will lose our foreign private issuer status, which would then require us to comply with the Exchange Act's domestic reporting regime and cause us to incur significant legal, accounting and other expenses.***

We qualify as a foreign private issuer and therefore we are not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act applicable to U.S. domestic issuers. We expect that we will no longer be a foreign private issuer as of June 30, 2023, which would require us to comply with all requirements of the Exchange Act applicable to U.S. domestic issuers, as of January 1, 2024. If we lose this status, we would be required to comply with the Exchange Act reporting and other requirements applicable to U.S. domestic issuers, which are more detailed and extensive than the requirements for foreign private issuers. We will also be required to make changes in our corporate governance practices in accordance with various SEC and stock exchange rules. We expect to incur significant legal, accounting and other expenses to comply with the reporting requirements applicable to a U.S. domestic issuer and additional expenses to obtain director and officer liability insurance.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION ON THE COMPANY**

**A.History and Development of the Company**

ADC Therapeutics SA is a Swiss stock corporation (*société anonyme*) organized under the laws of Switzerland. We were incorporated as a Swiss limited liability company (*société à responsabilité limitée*) on June 6, 2011, with our registered office and domicile in Epalinges, Canton of Vaud, Switzerland. We converted to a Swiss stock corporation under the laws of Switzerland on October 13, 2015. In May 2020, we completed our initial public offering on the NYSE under the ticker symbol "ADCT".

Our registered office is located at Biopôle, Route de la Corniche 3B, 1066 Epalinges, Switzerland and our phone number is +41 21 653 02 00. We are headquartered in Lausanne, Switzerland, and maintain research and development laboratories in London, clinical development operations in New Jersey and in Lausanne, commercial operations in New Jersey and CMC operations in the San Francisco Bay Area. Our

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website is www.adctherapeutics.com. Information contained on or accessible through our website is not part of, and is not incorporated by reference into, this Annual Report.

Our principal expenditures in the past three fiscal years have been our research and development expenses, and commercial expenses during the past two fiscal years, as more fully described elsewhere in this Annual Report.

We are subject to the informational requirements of the Exchange Act. Accordingly, we are required to file reports and other information with the SEC, including annual reports on Form 20-F and reports on Form 6-K. The SEC maintains an Internet site at *www.sec.gov* that contains reports, proxy and information statements and other information we have filed electronically with the SEC. We maintain a corporate website at *www.adctherapeutics.com*. The reference to our website is an inactive textual reference only, and information contained therein or connected thereto is not incorporated into this Annual Report.

**B.Business Overview**

We are a fully-integrated commercial-stage biotechnology company helping to improve the lives of those affected by cancer with our next-generation, targeted antibody drug conjugates ("ADCs"). Our flagship product, ZYNLONTA® (loncastuximab tesirine or Lonca) received accelerated approval from the FDA on April 23, 2021, and launched commercially in the U.S. shortly thereafter, for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy, including diffuse large B-cell lymphoma ("DLBCL") not otherwise specified, DLBCL arising from low-grade lymphoma, and also high-grade B-cell lymphoma. Our objective is to establish ZYNLONTA as the third line+ DLBCL standard of care while exploring ZYNLONTA in earlier lines of therapy and in combinations to expand our market opportunity. We have a strong validated technology platform including our highly potent pyrrolobenzodiazepine (PBD) technology and are advancing this proprietary PBD-based ADC technology to transform the treatment paradigm for patients with hematologic malignancies and solid tumors. Additionally, we have a growing toolbox of different components allowing us to work on next-generation ADC products. By leveraging our R&D strengths, our disciplined approach to target selection and our preclinical and clinical development strategy, we have created a diverse portfolio and research pipeline. Our clinical-stage PBD-based pipeline consists of two company-sponsored candidates, ADCT-901 (KAAG1) and ADCT-601 (mipasetamab uzoptirine) (AXL), as well as one clinical-stage candidate, ADCT-602 (CD22), which is being developed in collaboration with a partner. Our preclinical-stage PBD-based pipeline consists of one company-sponsored candidate, ADCT-212 (PSMA), as well as one preclinical-stage candidate, ADCT-701(DLK-1), which is being developed in collaboration with our partner NCI. We are also committed to broadening our ADC platform by expanding new antibody constructs and payloads and advancing our differentiated next-generation assets.

**Strengths**

We are a pioneer and leader in the ADC field with best-in-class specialized capabilities unique to ADCs. We have a strong validated technology platform in highly potent PBD-based ADCs, a growing toolbox to develop next-generation assets and a proven executional track record. In the discovery stage, we utilize intelligent choices of targeting moiety, linker and drug permutation. The intersection of our technical capabilities, integrated organization and depth of experience allows us to move efficiently through preclinical development into the clinic in pursuit of therapeutic window. Further, our CMC capabilities include high quality, consistent and scalable drug manufacturing for complex, highly potent molecules through third party CMOs. Our proven track record includes three clinical assets with proof of concept and two additional assets in the clinic. We have validated and integrated capabilities enabling the FDA and EMA approval and launch of ZYNLONTA, as well as success with a PBD-based ADC payload despite failures from others.

**Strategy**

Our longer-term strategy to maximize the value of the Company is based on three core pillars: optimizing the ZYNLONTA opportunity, advancing the PBD-based pipeline and broadening our ADC platform and leadership, as further described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maximize the ZYNLONTA opportunity.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Establish ZYNLONTA as the DLBCL standard of care in the third and later lines of therapy.* Our experienced commercial organization is unlocking this market opportunity by engaging with both academic and community-based physicians regarding ZYNLONTA's differentiated product profile. ZYNLONTA is also well-positioned in the evolving DLBCL market as ~60% of CAR-T patients will relapse and in a recent survey of relevant prescribing physicians, 27% have not referred a single patient for CAR-T and another 20% have referred only 1 patient over the last 3 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Establish ZYNLONTA as the combination agent of choice.* We are exploring the potential to move ZYNLONTA into earlier lines of therapy in combination with rituximab and other novel combinations. We are conducting LOTIS-5, a confirmatory Phase 3 clinical trial of ZYNLONTA in combination with rituximab that, if successful, we believe will serve as the basis for a supplemental BLA ("sBLA") for ZYNLONTA for the treatment of relapsed or refractory DLBCL in second or later line transplant-ineligible patients. In addition, we are conducting LOTIS-9 which is a Phase 2 clinical trial of ZYNLONTA in combination with rituximab in previously untreated unfit or frail patients with DLBCL who typically do not receive full doses

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of R-CHOP and LOTIS-7 which is a Phase 1b clinical trial of ZYNLONTA in combination with other anti-cancer agents such as polatuzumab, as well as a bispecific antibodies such as glofitamab and mosunetuzumab, in patients with relapsed or refractory B-cell non-Hodgkin lymphoma. We are also collaborating with IGM Biosciences on exploring the combination of ZYNLONTA and imvotamab (another bispecific antibody). In aggregate, we believe these development efforts, if successful, will enable ZYNLONTA to ultimately move into earlier lines of treatment with significant patient populations, potential for extended treatment and in turn greater ability to address unmet medical need.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Continue to advance the development of ZYNLONTA outside of the United States through strategic partnerships.* We are committed to providing global access to ZYNLONTA to patients who may benefit from treatment. We have entered into strategic agreements to maximize the commercial potential of ZYNLONTA, including an exclusive license agreement with Sobi for all regions other than the U.S., greater China, Singapore and Japan, an exclusive license agreement with Mitsubishi Tanabe Corporation ("MTPC") in Japan, and a joint venture with Overland Pharmaceuticals in greater China and Singapore. On December 20, 2022 the European Commission ("EC") granted conditional marketing authorization for the use of ZYNLONTA for the treatment of relapsed or refractory DLBCL in third or later lines of therapy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Advance our other clinical-stage and preclinical PBD-based programs, to address multiple indications in areas of high unmet medical need*. We have two clinical-stage company-sponsored candidates, ADCT-901 (KAAG1) and ADCT-601 (mipasetamab uzoptirine) (AXL), as well as one clinical-stage candidate, ADCT-602 (CD22), which is being developed in collaboration with a partner. We have one preclinical-stage company-sponsored candidate, ADCT-212 (PSMA), as well as one preclinical-stage candidate, ADCT-701 (DLK-1), which is being developed in collaboration with our partner NCI. We are also pursuing partnering opportunities with our clinical-stage product candidate, Cami, which produced positive results in our Phase 2 study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Broaden our ADC platform and leadership*. Our technology platform extends beyond PBD-based assets. Using new antibody constructs and payloads, we are leveraging our expertise in the ADC field to continue building our toolbox to study and advance differentiated next-generation assets.

**Overview of Antibody Drug Conjugates**

Antibody drug conjugates are an established therapeutic approach in oncology. ADCs selectively deliver potent chemotherapeutic cytotoxins directly to tumor cells, with the goal of maximizing activity in tumor cells while minimizing toxicity to healthy cells. An ADC consists of three components: (i) a monoclonal antibody that selectively targets a distinct antigen preferentially expressed on tumor cells or other cells in the tumor microenvironment; (ii) a cytotoxic molecule, often referred to as the toxin or the warhead, that kills the target cell; and (iii) a chemical linker that joins together the antibody and the warhead. The warhead and the linker are together referred to as the payload. The figure below shows the three components of an ADC.

![adc-20221231_g1.jpg](adc-20221231_g1.jpg)

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Schematic representation of an ADC, showing its three components.

Because the antibody is designed to selectively target a distinct antigen preferentially expressed on tumor cells or other cells in the tumor microenvironment, an ADC will bind preferentially to those cells that express the specific antigen. Upon binding to the antigen, most ADC molecules are internalized by the cell where the cytotoxic warhead is released through either cleavage of the linker or degradation of the entire antibody by cellular processes. Once a sufficient number of cytotoxic molecules have been released intracellularly, apoptosis occurs when the cell next attempts to replicate.

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***Components of Antibody Drug Conjugates***

*Monoclonal Antibodies*

The first component of an ADC is the monoclonal antibody, which is a highly specific targeting agent that selectively binds to a distinct antigen preferentially expressed on tumor cells or other cells in the tumor microenvironment. Since ADCs are designed to selectively target an antigen that is expressed in the tumor microenvironment, ADCs have less effect on cells that do not express the target antigen. Due to this specificity, the cytotoxins used in ADCs can be much more potent than those used in traditional chemotherapies, allowing normally systemically intolerable doses of cytotoxins to be directed at tumors.

In an ADC, two significant factors are considered in the selection of the antigen to which the antibody is targeted: (i) the preferential expression on tumor cells or other cells in the tumor microenvironment; and (ii) the level of antigen expression on these cells. As a result, it is generally recognized that high and consistent (i.e., homogeneous) antigen expression throughout the tumor microenvironment correlates with higher efficacy of the ADC. By contrast, the ability to achieve a therapeutic concentration of cytotoxins in the target cell diminishes as the level of antigen expression decreases.

*Warheads*

The second component of an ADC is the warhead which is conjugated to the antibody. Usually these warheads are cell-killing toxins. Cytotoxins commonly used in ADCs include tubulin inhibitors, such as maytansines and auristatins, and DNA-damaging toxins, such as calicheamicin. Recently, other DNA damaging or alkylating warheads such as camptothecins and pyrollobenzadiazepines have been utilized in approved ADCs. Once an ADC is internalized by the target cell, the warhead is released and ultimately causes cell death via a warhead-specific mechanism. Some warheads have the additional ability to diffuse into and kill neighboring cells in the tumor microenvironment. This bystander effect can be useful in enhancing the efficacy of ADCs in tumors with heterogeneous antigen expression by providing a mechanism to kill neighboring tumor cells that do not express the target antigen.

More recently, other drugs such as immunostimulants have been explored in an ADC format. Examples are TLR and STING agonists, which can activate the innate immune system driving an anti-tumor response. Systemic use of such immune agonists has been widely studied in the clinic but with limited success because the systemic exposure results in undesired toxicities in patients. Such systemic toxicities can be mitigated by conjugating the immune agonist to a tumor specific antibody, creating a so called Immunostimulatory Antibody Drug Conjugate (ISAC).

*Chemical Linkers*

The third component of an ADC is the chemical linker used to attach the warhead to the antibody. The chemical linker directly affects the efficacy, safety and tolerability of an ADC. Before an ADC is internalized by the target cell, it is critical that the chemical linker provides a stable connection between the warhead and the antibody in systemic circulation, as premature release of the warhead can cause significant off-target toxicity. After an ADC is internalized by the target cell, it is critical that the warhead is released from the antibody to promote rapid and efficient cell killing.

Linkers used in ADCs fall into two categories: cleavable and non-cleavable. Cleavable linkers release the warhead intracellularly after proteolytic cleavage of the linker by intracellular enzymes such as cathepsin or after weakening of the linker by the intracellular environment. In contrast, non-cleavable linkers are resistant to this type of cleavage and instead rely on the degradation of the entire antibody. As a result, the released payload in ADCs that use non-cleavable linkers remains attached to a fragment of the antibody, which limits the warhead's permeability to adjacent cells, reducing the bystander effect and potentially the ADC's efficacy in tumors with heterogeneous target antigen expression.

***Key Strengths and Attributes of Antibody Drug Conjugates***

Antibody drug conjugates are an important part of the cancer treatment paradigm for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Selective Targeting*. Traditional chemotherapies are unable to distinguish between healthy cells and tumor cells. As a result, these therapies typically have a narrow therapeutic window (i.e., the dose range that can treat disease effectively without causing unacceptable toxic side effects). In contrast, ADCs, through their use of antigen-specific antibodies, target tumor cells or other cells in the tumor microenvironment with greater selectivity than do traditional chemotherapies. This selective targeting allows ADCs to use potent cytotoxins or immune agonists at dose levels that otherwise would not be tolerable. As a result, ADCs can represent a highly effective treatment approach while maintaining manageable side effects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Wide Addressable Patient Population.* ADCs represent a treatment approach that expands the treatment options available to cancer patients. Many therapies are not appropriate for certain patient populations. For example, chemotherapy may not be appropriate when the patient is too sick to tolerate or does not respond to available chemotherapeutics, stem cell transplant may not be appropriate when the patient is frail, and some novel targeted therapies such as CAR-T (i.e., a type of treatment in which a patient's T cells are modified

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in the laboratory so they will attack cancer cells) may not be appropriate when there is significant comorbidity. As a result of these limitations, there remains a significant unmet medical need for patients for whom other treatment options are inappropriate or ineffective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Potential in Relapsed or Refractory Patients*. Traditional therapies typically have limited effectiveness for patients who exhibit relapsed (i.e., the cancer returns after an initial positive response to treatment) or refractory (i.e., the cancer is resistant to treatment) disease. In contrast, some ADCs have proven efficacious in such patient populations while maintaining a manageable tolerability profile. Therefore, ADCs represent an important part of the cancer treatment paradigm, expanding the treatment options available to patients suffering from relapsed or refractory disease.

***The Antibody Drug Conjugates Landscape***

While ADCs are an important part of cancer treatment, there are certain challenges in developing ADCs that achieve the optimal therapeutic index (i.e., the balance between efficacy and tolerability). These challenges include (i) developing warheads that are sufficiently potent to target cancers with low or heterogeneous antigen expression without causing unacceptable toxic side effects, (ii) designing linkers that are stable in systemic circulation but that release the warhead once the ADC has been internalized by the cell, and (iii) creating ADCs that achieve durable responses. We believe that our expertise in ADC research and development and access to a toolbox of different ADC technologies enables us to develop ADCs that overcome these challenges.

***Our Next-Generation PBD-Based Antibody Drug Conjugates***

We develop ADCs that use next-generation PBD warhead technology. Using this technology, we have developed a diverse and balanced portfolio of highly targeted ADCs with potential for improved therapeutic indices that may allow us to broaden the scope of addressable cancer patients for whom treatment with ADCs is feasible and appropriate.

PBDs are a class of antibiotic or anti-tumor molecules. First-generation PBDs, developed in the early 2000s, were originally used as stand-alone chemotherapeutics. They were subsequently explored for use as ADC warheads. However, these first-generation PBD warheads' hydrophobicity generally resulted in manufacturability issues and they exhibited significant toxicities that resulted in very narrow therapeutic indices. In contrast, our ADCs use next-generation PBD technology, which is designed to produce warheads that are less hydrophobic, causing them to be easier to conjugate and, based on preclinical data, have less off-target toxicity than first-generation PBD warheads. Through further in-house development of conjugation technology and highly stable linker design, we aim to develop PBD-based ADCs that achieve significant clinical activity and durable responses in difficult-to-treat patients.

Our ADCs use PBD dimer warheads, which are two PBD monomer molecules bonded together. Once inside a target cell, these PBD dimers bind irreversibly to DNA without distorting the double helix, potentially evading DNA repair mechanisms that can otherwise reduce ADCs' effectiveness. PBD dimers do this by covalently binding two guanines from opposite DNA strands in the minor groove, forming highly cytotoxic interstrand cross-links that block DNA strand separation, thus disrupting essential DNA metabolic processes such as replication, and ultimately resulting in cell death. The figure below shows the mechanism of action of our PBD-based ADCs.

![adc-20221231_g2.jpg](adc-20221231_g2.jpg)

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The mechanism of action of our PBD-based ADCs.

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We believe that our ADCs, using next-generation PBD technology, have the potential to become an important part of the cancer treatment paradigm due to their following potential benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Cytotoxic Potency*. The PBD dimer warheads used in our ADCs have been shown preclinically to be approximately 100 times more potent than warheads used in currently marketed ADCs, such as auristatin, maytansine and calicheamicin. The figure below shows the relative *in vitro* cytotoxic potency of various ADC warheads and common chemotherapeutics in comparison to a PBD dimer. Despite their potency, however, the PBD dimer warheads used in our ADCs have demonstrated a manageable tolerability profile in our preclinical studies and clinical trials to date.

![adc-20221231_g3.jpg](adc-20221231_g3.jpg)

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The relative *in vitro* cytotoxic potency of various ADC warheads (in red) and common chemotherapeutics (in black) in comparison to a PBD dimer. "IC50" means the drug concentration causing 50% inhibition of the desired activity, and "M" means molar. Source: Spirogen, a subsidiary of AstraZeneca plc.

*Activity in Tumors with Low-Expressing Targets*. Tumor cells typically require a threshold number of warhead molecules to be internalized for efficient cell killing. The high potency of our PBD-based warheads means that, compared to other warheads, fewer molecules of warhead should be needed to be internalized into the cancer cell to kill it. In cancer cells with low levels of antigen expression, ADCs with less potent warheads cannot bind in sufficient quantities to be effective. We believe that the potency of our PBD-based warheads may allow us to develop ADCs that target antigens with low expression levels in the tumor microenvironment, potentially increasing the range of cancers amenable to treatment with ADCs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Durable Responses*. Cross-links in DNA occur when an agent reacts with two nucleotides of DNA, forming a covalent linkage between them. The cross-links can occur in the same strand (i.e., *intra*strand) or between opposite strands of DNA (i.e., *inter*strand). Our PBD-based ADCs create *inter*strand cross-links in the target cells' DNA. These *inter*strand cross-links persist in target cells and can lie dormant, potentially for weeks. We believe that this allows our ADCs to target slowly proliferating cancer cells, including cancer stem cells. The persistence of the *inter*strand cross-links is explained by the fact that these cross-links do not distort the DNA helix. Cells have natural DNA repair mechanisms that detect structural changes to DNA, including those caused by cytotoxic warheads, and repair the DNA back to its original state. Warheads that create *intra*strand cross-links, and even some warheads that create *inter*strand cross-links such as calicheamicin, distort the DNA helix, triggering the cells' DNA repair mechanisms, thereby reducing their efficacy and leading to drug resistance. As PBD cross-links are non-distortive, they are designed to be able to evade the cells' DNA repair mechanisms. In addition, tumor cells also induce the expression of certain transporter proteins (i.e., proteins that are able to transport warheads across the membrane outside the tumor cell) or the activation of detoxifying mechanisms that lead to inactive toxins. These potential resistance mechanisms limit traditional ADCs' efficacy, resulting in limited clinical responses and relapses. Based on data to date, very few resistance mechanisms have been reported for PBDs. We believe that all of these factors may contribute to the frequency and durability of responses in heavily pre-treated and primary refractory patients that we have observed in our clinical trials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Bystander Effect*. The bystander effect occurs when a released warhead is able to diffuse into and kill neighboring cells in the tumor microenvironment, irrespective of those cells' antigen expression. Upon binding to the target antigen and internalization of our ADCs

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into the tumor cell, the warhead is designed to induce apoptosis. This is followed by the release of free PBD dimers into the tumor microenvironment. Since our PBD-based warheads are cell-permeable, they may be able to diffuse into adjacent cells and kill them in an antigen-independent manner. We believe that this may allow us to develop ADCs that target antigens with heterogeneous expression levels in the tumor microenvironment, potentially increasing the range of cancers amenable to treatment with ADCs. Once the PBD is released into circulation outside the tumor microenvironment, it is rapidly excreted with a short half-life, thus limiting overall systemic toxicity. We believe that this results in our ADCs' bystander effect being controlled and generally limited to tumor cells.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Immunogenic Cell Death*. PBD warheads have been observed to induce immunogenic cell death, whereby a cancer cell's death expresses certain stress signals that induce the body's anti-tumor immune response through the activation of T cells and antigen-presenting cells. This opens up the potential for combining our ADCs with other therapies, particularly with immuno-oncology therapies such as checkpoint inhibitors, that are specifically designed to activate the patient's own immune system to combat cancer.

***Our New Technologies and Platforms***

In addition to the PBD dimer platform, we have developed a proprietary exatecan drug-linker platform. Exatecans belong to the family of camptothecins, which are naturally occurring pentacyclic quinoline alkaloids that bind to DNA topoisomerase I, inhibiting DNA relegation and finally causing apoptosis. Campothecins such as exatecan therefore possesses high cytotoxic activity against a variety of tumors. Clinical development of exatecan as a stand-alone chemotherapy has been done, but was terminated due to the lack of a therapeutic window. Recently, the use of deruxtecan, based on a close analogue of exatecan was successfully used to develop the Her2 specific ADC trastuzumab deruxtecan which is now approved in the US and Europe for the treatment of Her2 expressing tumors.

The cytotoxic potency of exatecan is significantly lower compared to PBD dimer warheads, and hence we will develop exatecan based ADCs for those tumor targets that are not amenable for a PBD based ADC approach. For instance, targets that are not uniquely expressed on tumors but also show expression on healthy tissue (such as Her2) could be addressed with an exatecan based ADC. Like PBD warheads, exatecan itself has bystander activity and is also believed to cause immunogenic cell death.

Finally, we have access to a proprietary DNA alkylating cytotoxic under our development and option to license agreement with IntoCell (South Korea).

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**<u>ADCT Toolbox</u>**

![adc-20221231_g4.jpg](adc-20221231_g4.jpg)

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**Our Portfolio and Pipeline**

The following table provides an overview of our current product portfolio and research pipeline:![adc-20221231_g5.jpg](adc-20221231_g5.jpg)

![adc-20221231_g6.jpg](adc-20221231_g6.jpg)

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Anticipated milestones set forth in this chart are subject to further future adjustment. NTE: Non-Transplant Eligible

\*Zynlonta was approved under the FDA accelerated approval program and continued approval for this indication is contingent upon verification and description of clinical benefit in a confirmatory trial and is underway in our Phase 3 confirmatory clinical trial, LOTIS 5.

***The Lymphoma Disease Setting - ZYNLONTA***

Lymphoma is a group of several closely related blood cancers that develop in the lymphatic system, an interconnected network of vessels and nodes that circulate a fluid called lymph. The lymph is rich in lymphocytes, a type of white blood cells that help the body fight off infections and other diseases. Lymphoma occurs when lymphocytes become cancerous and are typically classified into two groups: non-Hodgkin lymphoma ("NHL") and Hodgkin lymphoma ("HL").

*Non-Hodgkin Lymphoma*

Non-Hodgkin lymphoma is a heterogeneous group of cancers of the lymphatic system that is characterized by the overproduction and accumulation of lymphocytes, either B lymphocytes ("B cells") or T lymphocytes ("T cells"). These cancerous lymphocytes travel to and accumulate in other organs, including the lymph nodes, bone marrow and spleen, and disrupt these organs' normal functioning. According to Decision Resources Group ("DRG"), in 2022, there were an estimated 154,500 total new cases of NHL in the United States, France, Germany, Italy, Spain and the United Kingdom ("EU5"). The various types of NHL are distinguished by the characteristics of the cancer cells associated with each disease type. The designations "indolent" (i.e., slow growing) and "aggressive" (i.e., fast growing) are often applied to types of NHL based on the diseases' progression and prognosis. The figure below shows the distribution of NHL in the United States and EU5.

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![adc-20221231_g7.jpg](adc-20221231_g7.jpg)

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The distribution of NHL in the United States and EU5. Figures represent the estimated total number of new cases of the respective diseases in 2022.

*Diffuse Large B-Cell Lymphoma*

Diffuse large B-cell lymphoma is an aggressive type of NHL that develops from the B cells in the lymphatic system. It is the most common type of NHL, with an estimated 50,400 total new cases of DLBCL in the United States and EU5 in 2022 according to DRG. Approximately 25,200 new cases were in the United States and approximately 25,200 new cases were in EU5.

Treatments for DLBCL can be divided into first-line, second-line and third-line and later therapies. The figure below shows the current DLBCL treatment landscape.

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![adc-20221231_g8.jpg](adc-20221231_g8.jpg)

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Westin J, Sehn LH. CAR T cells as a second-line therapy for large B-cell lymphoma: a paradigm shift? Blood. 2022 May 5;139(18):2737-2746, 2744. doi: 10.1182/blood.2022015789. PMID: 35240677. This Electronic Copy of Copyrighted Material Was Made and Delivered to the Government Under License from RightsDirect – No Further Reproduction is Permitted.

First-line therapy generally involves chemotherapy with a rituximab backbone, such as R-CHOP (i.e., a chemotherapy regimen consisting of cyclophosphamide, doxorubicin hydrochloride, vincristine sulfate and prednisone, plus rituximab). Although first-line therapy is effective in some patients, according to DRG, approximately 40% of patients require second-line therapy. The prognosis is generally poor for patients who do not respond to first-line therapy. For example, a study of two large randomized trials and two academic databases found that for patients who exhibit primary refractory disease, only 20% displayed a response and only 3% displayed a complete response to subsequent chemotherapy.

Second-line therapy depends on whether the patient is eligible for stem cell transplant (i.e., transplant involving a healthy donor's stem cells). Eligibility is determined by a patient's physical fitness and response to high-dose salvage chemotherapy. Second-line therapy involves cellular therapies such as CAR-T, polatuzumab in combination with bendamustine and a rituximab product, tafasitamab in combination with lenalidomide and chemotherapy. According to DRG, of the patients who require treatment in the second-line setting, approximately 50% will require third-line therapy.

Current third-line therapies include ZYNLONTA, CAR-T, allogeneic stem cell transplant, polatuzumab in combination with bendamustine and a rituximab product, selinexor, tafasitamab in combination with lenalidomide and chemotherapy using small molecules. Given the side effects and the fitness required to undergo CAR-T and allogeneic stem cell transplant, patients who are ineligible to receive CAR-T and autologous stem cell transplant as a second-line therapy may also be ineligible to receive CAR-T or allogeneic stem cell transplant as a third-line therapy. Other treatment options may be limited in efficacy or associated with severe side effects. The limited treatment options and poor outcomes observed in patients with relapsed or refractory DLBCL highlights the urgent need for alternative treatment strategies. ZYNLONTA has the potential to address this unmet medical need.

***Hodgkin Lymphoma– Camidanlumab Tesirine***

Hodgkin lymphoma is a rare but highly curable type of neoplasm of the lymph nodes. These lymphoid malignancies travel to other organs, such as the liver, lungs and bone marrow, and disrupt these organs' normal functioning. According to DRG, in 2020, there were an estimated 17,900 total new cases of HL in the United States and EU5. Approximately 9,300 new cases were in the United States and approximately 8,600

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new cases were in EU5. Patients diagnosed with HL generally have good prognoses, with a five-year overall survival rate of approximately 87%.

Treatments for HL can be divided into first-line, second-line and third-line and later therapies. The figure below shows the current HL treatment landscape.

![adc-20221231_g9.jpg](adc-20221231_g9.jpg)

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Current HL treatment landscape. Patient population data presented are for the United States and EU5. Not all relapsing patients will receive treatment. The blue box represents the initial potential addressable patient population for Cami, if approved as a third-line therapy.

Current third-line therapies include an alternative chemotherapy regimen not previously used or immunotherapy with brentuximab vedotin. Although brentuximab vedotin and checkpoint inhibitors have achieved relatively high ORRs compared to traditional chemotherapy regimens, these therapies are moving into earlier lines of treatment. Other third-line chemotherapy regimens involving bendamustine, everolimus or lenalidomide have only shown limited efficacy. Other therapies include allogeneic stem cell transplantation. However, given that stem cell transplant requires patients to be physically fit, the proportion of eligible patients is small. The limited treatment options and generally poor outcomes observed in patients with relapsed or refractory HL highlights the urgent need for alternative treatment strategies.

***The Leukemia Disease Setting – ADCT-602***

Leukemia is a group of several closely related blood cancers that develop in the bone marrow. Once the marrow cell undergoes a leukemic change, the leukemia cells may grow and survive better than healthy cells. Over time, the leukemia cells crowd out or suppress the development of healthy cells. Leukemia is classified into four groups: acute lymphoblastic leukemia, chronic lymphocytic leukemia, acute myeloid leukemia and chronic myeloid leukemia.

*Acute Lymphoblastic Leukemia*

Acute lymphoblastic leukemia ("ALL") is an aggressive form of blood cancer, characterized by the overproduction and accumulation of cancerous, immature white blood cells, known as leukemic blasts. These leukemic blasts are overproduced in the bone marrow affecting the synthesis of normal blood cells, causing a decrease in red blood cells, platelets and normal white blood cells. According to DRG, in 2016, there were an estimated 9,000 total new cases of ALL in the United States and Europe. ALL develops rapidly throughout the bone marrow and peripheral blood within a few days or a few weeks of the first symptoms. If left untreated, ALL is rapidly fatal.

Common therapies for ALL include multidrug chemotherapy regimens using available generic chemotherapeutics. Although first-line therapy is effective in some patients, according to DRG, approximately 30%-40% of patients require second-line therapy. For these patients, treatment options include targeted therapies such as tisagenlecleucel, a CD19-directed genetically modified autologous T cell immunotherapy, blinatumomab, a bispecific T cell engager targeting CD19, and inotuzumab ozogamicin, a CD22-directed ADC. However, there remains a

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significant unmet medical need for patients who exhibit relapsed or refractory ALL due to the heterogeneity of and the existence of different subgroups within ALL. We continue to investigate ADCT-602 (CD22) in this area of high unmet medical need.

***The Solid Tumor Disease Setting – ADCT-601, ADCT-901, ADCT-701, ADCT-212***

There are many different types of solid tumors and they account for the majority of cancers. The most commonly diagnosed solid tumor cancers include lung cancer, prostate cancer, breast cancer and colorectal cancer. The prognosis and treatment of solid tumor cancers vary based on the type of cancer. The remainder of the PBD-based portfolio has the potential to address unmet medical need across a number of these tumor types (dose escalation and dose expansion studies will be required to shape further clinical development and registration choices).

Despite recent significant advances in the treatment of some solid tumor cancers, there remains a high medical need for novel therapies. One of the significant recent advances in the treatment of solid tumor cancers is the introduction of PD1 and PD-L1 checkpoint inhibitors, such as pembrolizumab, that leverages the body's immune system to attack tumor cells. However, only 45% of cancer patients are eligible for treatment with checkpoint inhibitors and only 12% of cancer patients respond to treatment with checkpoint inhibitors. We are developing product candidates directed at different targets from those targeted by checkpoint inhibitors. We believe that our product candidates may enhance the efficacy of checkpoint inhibitors when they are used in combination and may provide a treatment option for patients who are not eligible for or do not respond to treatment with checkpoint inhibitors. We believe that there is a significant opportunity for our product candidates to address the high unmet medical need of these patient populations.

**ZYNLONTA (loncastuximab tesirine): PBD-Based ADC Targeting CD19**

***Overview***

Our flagship product, ZYNLONTA, is an ADC targeting CD19-expressing cancers, and was approved by the FDA and EMA for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy, including DLBCL not otherwise specified, DLBCL arising from low-grade lymphoma, and also high-grade B-cell lymphoma.

We continue to commercialize ZYNLONTA in the United States through our own infrastructure and selectively pursued strategic collaborations, business combinations, acquisitions, licensing opportunities or similar strategies in other geographies. We are committed to providing global access to ZYNLONTA to patients who may benefit from treatment. We entered an exclusive license agreement with Swedish Orphan Biovitrum AB ("Sobi") for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications in Europe and all other jurisdictions outside of the U.S., Japan, greater China and Singapore. On December 20, 2022 the EC granted conditional marketing authorization for the use of ZYNLONTA for the treatment of relapsed or refractory DLBCL. The approval follows a positive opinion issued in September 2022 by the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency ("EMA"). Sobi expects to commence launching ZYNLONTA upon completion of the marketing authorization transfer. In January 2022, we entered an exclusive license agreement with MTPC for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications in Japan. In December 2020, we entered into a joint venture with Overland Pharmaceuticals to develop and commercialize ZYNLONTA, among other product candidates, in greater China and Singapore. See "Item 10. Additional Information—C. Material Contracts."

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**<u>Key ZYNLONTA Studies</u>**

![adc-20221231_g10.jpg](adc-20221231_g10.jpg)_____________

ASCT: Autologous Stem Cell Transplant; IST: Investigator-Sponsored Trials; NHL: Non-Hodgkin Lymphoma; \* Data cutoff for 20 patients: February 28, 2022

Further, as part of our strategy, we intend to continue to evaluate ZYNLONTA in combination with other therapies for the treatment of other types of relapsed or B-cell non-Hodgkin lymphomas. We intend to move into earlier lines of treatment to ensure more patients can benefit from ZYNLONTA for a longer course of treatment.

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**<u>Critical ZYNLONTA Attributes</u>**

![adc-20221231_g11.jpg](adc-20221231_g11.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>1.</sup> Based on pivotal LOTIS-2 trial. Full prescribing information available at www.ZYNLONTA.com, including warnings and precautions. ORR: Overall Response Rate; CR: Complete Response; mDOR: Median Duration of Response; CRS: Cytokine Release Syndrome

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>2.</sup> Includes patients who did not respond to first-line therapy, patients refractory to all prior lines of therapy, patients with double/triple hit genetics ORR: Overall Response Rate; CR: Complete Response; mDOR: Median Duration of Response; CRS: Cytokine Release Syndrome

***Commercialization***

Upon receipt of FDA approval, we began to commercialize ZYNLONTA in the United States through our own U.S. organization infrastructure. Our U.S. commercial team has been able to commercialize ZYNLONTA due to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our commercial organization is led by a seasoned Chief Commercial Officer and senior commercial leadership team, including Head of Marketing and Head of Market Access each with deep experience in the oncology market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Medical Affairs function is led by an experienced Medical Affairs Leadership Team, and includes a team of highly experienced, senior medical science liaisons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A highly talented and efficient U.S. customer-facing organization of more than 60 cross-functional employees, which we believe has the potential to cover more than 90% of the DLBCL opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued investment in resources to educate on the differentiated profile of ZYNLONTA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increasing scientific interactions with academic and community thought leaders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• engaging payors and key access stakeholders to introduce ADC Therapeutics, align on the unmet medical needs in relapsed or refractory DLBCL and address questions regarding the differentiated product profile of ZYNLONTA and its unique value proposition for patients.

In addition, we have entered into strategic collaborations to maximize ZYNLONTA's commercial potential outside of the United States, including an exclusive license agreement with Sobi for regions other than the U.S., greater China, Singapore and Japan, an exclusive license agreement with MTPC for Japan, and a joint venture with Overland Pharmaceuticals for greater China and Singapore. See "Item 10. Additional Information—C. Material Contracts."

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***Structure and Mechanism of Action***

ZYNLONTA is composed of a humanized monoclonal antibody (RB4v1.2) directed against human CD19 and conjugated through a cathepsin-cleavable linker to SG3199, a PBD dimer cytotoxin. Once bound to a CD19-expressing cell, it is designed to be internalized by the cell, following which the warhead is released. The warhead is designed to bind irreversibly to DNA to create highly potent interstrand cross-links that block DNA strand separation, thus disrupting essential DNA metabolic processes such as replication and ultimately resulting in cell death. The figure below shows the structure of ZYNLONTA.

![adc-20221231_g12.jpg](adc-20221231_g12.jpg)

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Visual representation of ZYNLONTA.

The human CD19 antigen is involved in the recognition, binding and adhesion processes of cells, mediating direct interactions between surfaces of different cell types and pathogen recognition. CD19 is expressed only on B cells (i.e., a type of white blood cell that plays a significant role in protecting the body from infection by producing antibodies) throughout all stages of B cell development and differentiation. Its expression is maintained in high levels in hematologic B cell malignancies, including NHL and certain types of leukemia. For example, CD19 is expressed in activated B cells and memory B cells in DLBCL, in naïve B cells in MCL, and in memory B cells in FL.

***Regulatory Approval***

Our flagship product, ZYNLONTA, received accelerated approval from the FDA on April 23, 2021, for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy, including DLBCL not otherwise specified, DLBCL arising from low-grade lymphoma, and also high-grade B-cell lymphoma. Continued approval for this indication is contingent upon verification and description of clinical benefit in a confirmatory trial and is underway in our Phase 3 confirmatory clinical trial, LOTIS 5. On December 20, 2022, the EC granted conditional marketing authorization for the use of ZYNLONTA for the treatment of relapsed or refractory DLBCL. The EC decision is valid in all European Union Member States, Iceland, Norway, and Liechtenstein. The EC granted conditional marketing authorization for ZYNLONTA for this indication and continued approval is contingent upon verification in a confirmatory trial.

*Confirmatory Clinical Trial*

In September 2020, we commenced a confirmatory trial (LOTIS-5) concurrently with the BLA submission. The confirmatory clinical trial is a Phase 3, randomized, open-label, two-part, two-arm, multi-center clinical trial of ZYNLONTA combined with rituximab compared to immunochemotherapy in patients with relapsed or refractory DLBCL.

The primary objective of the clinical trial is to evaluate the efficacy of ZYNLONTA combined with rituximab compared to standard immunochemotherapy, as measured by progression-free survival ("PFS"). The secondary objectives of the clinical trial are to evaluate overall survival (OS) as well as: (i) characterize the safety profile of ZYNLONTA combined with rituximab, (ii) characterize the pharmacokinetic profile of ZYNLONTA combined with rituximab, (iii) evaluate the immunogenicity of ZYNLONTA combined with rituximab and (iv) evaluate the impact of ZYNLONTA combined with rituximab treatment on treatment-related and disease-related symptoms, patient-reported functions and overall health status.

The clinical trial is enrolling patients with pathologically confirmed relapsed or refractory DLBCL who are not considered by the investigator to be a candidate for SCT and who had failed at least one multi-agent systemic treatment regimen. The clinical trial is expected to enroll approximately 350 patients.

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The clinical trial is being conducted in two parts: In the safety run-in, the first 20 patients were non-randomly assigned to receive ZYNLONTA in combination with rituximab to compare the combination's toxicity against historical safety data from monotherapy clinical trials of ZYNLONTA. The randomized part of the clinical trial was initiated after the last patient in the safety run-in completed the first treatment cycle and it was observed that there were no significant increases in toxicity of the combination as compared to historical safety data of ZYNLONTA used as a monotherapy. In addition, the initial response data suggests that the combination of ZYNLONTA and rituximab is additive. Patients are randomly assigned 1:1 to receive either ZYNLONTA in combination with rituximab or rituximab in combination with gemcitabine and oxaliplatin. The randomized part of the clinical trial is expected to enroll approximately 330 patients.

We believe that this clinical trial, if successful, will support an sBLA for ZYNLONTA to be used as a second-line therapy for the treatment of relapsed or refractory DLBCL in transplant-ineligible patients.

***Phase 1 Clinical Trial in Relapsed or Refractory Non-Hodgkin Lymphoma***

We have conducted a Phase 1, open-label, dose escalation and dose expansion clinical trial of the safety and tolerability of ZYNLONTA, used as monotherapy, in 183 patients with relapsed or refractory B-NHL, which includes *de novo* and transformed DLBCL, FL, chronic lymphocytic leukemia, MCL, marginal zone B-cell lymphoma, Burkitt's lymphoma and lymphoplasmacytic lymphoma. The clinical trial's design and our main findings are summarized below.

*Clinical Trial Design*

The primary objectives of the dose escalation stage of the clinical trial were to (i) evaluate the safety and tolerability, and determine, as appropriate, the maximum tolerated dose ("MTD") of ZYNLONTA in patients with relapsed or refractory B-NHL and (ii) determine the recommended dose(s) of ZYNLONTA for the dose expansion stage of the clinical trial. The primary objective of the dose expansion stage was to evaluate the safety and tolerability of ZYNLONTA at the dose level(s) recommended from the results of the dose escalation stage. The secondary objectives of the clinical trial were to (i) evaluate the clinical activity of ZYNLONTA, as measured by ORR, DoR, overall survival ("OS") and PFS, (ii) characterize the pharmacokinetic profile of ZYNLONTA and the free warhead SG3199 and (iii) evaluate anti-drug antibodies ("ADAs") in patients' blood before, during and after treatment with ZYNLONTA.

The clinical trial enrolled patients with pathologically confirmed relapsed or refractory B-NHL who had failed or were intolerant to established therapy or for whom no other treatment options were available. Of the 183 patients who participated in the clinical trial, 139 patients were diagnosed with relapsed or refractory DLBCL, 15 patients were diagnosed with relapsed or refractory MCL, 14 patients were diagnosed with FL and the remaining 15 patients were diagnosed with other forms of relapsed or refractory B-NHL.

In the dose escalation stage, patients received intravenous infusions of ZYNLONTA, at escalating doses, on the first day of each 21-day treatment cycle. The initial dose was 15 µg/kg and the highest allowed dose was planned at 300 µg/kg. Dose escalation was conducted using a 3+3 design with oversight by a Dose Escalation Steering Committee ("DESC"). In the dose expansion stage, patients received 120 µg/kg and 150 µg/kg doses on the first day of each 21-day treatment cycle. The dose levels were determined by the DESC based on the anti-tumor activity and tolerability observed during the dose escalation stage. In this clinical trial, response to treatment was determined as complete response ("CR"), partial response ("PR"), stable disease ("SD") or progressive disease ("PD"), based on the 2014 Lugano Classification Criteria.

*Clinical Trial Results*

*Diffuse Large B-Cell Lymphoma*

For patients with relapsed or refractory DLBCL (n=139), the median prior lines of therapy received was three. The median number of treatment cycles received was two and the maximum number of treatment cycles received was 13. The median duration of treatment was 64 days.

The main observed safety and tolerability findings in patients with relapsed or refractory DLBCL were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The MTD was not reached in the dose escalation stage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grade ≥3 TEAEs were reported in 108 patients, or 77.7% of patients. The most common Grade ≥3 TEAEs that were reported in more than 10% of patients included neutrophil count decreased (reported in 38.1% of patients, including 37.1% of patients at the 150 µg/kg dose used in our pivotal Phase 2 clinical trial), platelet count decreased (reported in 26.6% of patients, including 25.7% of patients at the 150 µg/kg dose used in our pivotal Phase 2 clinical trial), gamma-glutamyltransferase increased (reported in 19.4% of patients, including 17.1% of patients at the 150 µg/kg dose used in our pivotal Phase 2 clinical trial) and anemia (reported in 13.7% of patients, including 15.7% of patients at the 150 µg/kg dose used in our pivotal Phase 2 clinical trial).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TEAEs in 26 patients, or 18.7% of patients, led to treatment discontinuation.

The main observed efficacy findings from the Phase 1 clinical trial in patients with relapsed or refractory DLBCL were as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Across all dose levels, 32 patients, or 23.4% of patients, achieved a complete response and another 26 patients, or 19.0% of patients, achieved a partial response, resulting in a 42.3% ORR. At the 150 µg/kg dose level used in our pivotal Phase 2 clinical trial, 15 patients, or 21.4% of patients, achieved a complete response and another 14 patients, or 20.0% of patients, achieved a partial response, resulting in a 41.4% ORR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ZYNLONTA's favorable clinical activity was observed across a broad patient population in this clinical trial, including transplant eligible and ineligible patients, patients who have not responded to first-line therapy or any prior therapy and patients with bulky disease, double-hit and triple-hit disease and transformed disease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Across all dose levels, the median DoR was not reached for patients who achieved a complete response (indicating that more than half of the patients continued to show a complete response as of their most recent assessment) and 2.86 months for patients who achieved a partial response, for an overall DoR of 4.47 months. At dose levels ≥120 µg/kg, the median DoR was not reached for patients who achieved a complete response (indicating that more than half of the patients continued to show a complete response as of their most recent assessment) and was 2.69 months for patients who achieved a partial response, for an overall DoR of 4.17 months.

*Mantle Cell Lymphoma*

For patients with relapsed or refractory MCL (n=15), the median prior lines of therapy received was four. The median number of treatment cycles received was two and the maximum number of treatment cycles received was 11. The median duration of treatment was 65 days.

The main observed safety and tolerability findings in patients with relapsed or refractory MCL were similar in nature, frequency and severity to those in patients with relapsed or refractory DLBCL. The main observed efficacy findings from the Phase 1 clinical trial in patients with relapsed or refractory MCL were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Across all dose levels, five patients, or 33.3% of patients, achieved a complete response and another two patients, or 13.3% of patients, achieved a partial response, resulting in a 46.7% ORR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The median DoR was not reached (indicating that more than half of the patients continued to show a complete response as of their most recent assessment).

*Follicular Lymphoma*

For patients with relapsed or refractory FL (n=14), the median prior lines of therapy received was four. The median number of treatment cycles received was three and the maximum number of treatment cycles received was 12. The median duration of treatment was 79 days.

The main observed safety and tolerability findings in patients with relapsed or refractory FL were similar in nature, frequency and severity to those in patients with relapsed or refractory DLBCL. The main efficacy findings from the Phase 1 clinical trial in patients with relapsed or refractory FL were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Across all dose levels, nine patients, or 64.3% of patients, achieved a complete response and another two patients, or 14.3% of patients, achieved a partial response, resulting in a 78.6% ORR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The median DoR was not reached (indicating that more than half of the patients continued to show a complete response as of their most recent assessment).

***Pivotal Phase 2 Clinical Trial in Relapsed or Refractory Diffuse Large B-Cell Lymphoma***

We have conducted a 145-patient Phase 2, multi-center, open-label, single-arm clinical trial to evaluate the safety and efficacy of ZYNLONTA in patients with relapsed or refractory DLBCL, as defined according to the 2016 World Health Organization classification to include DLBCL not otherwise specified, primary mediastinal large B-cell lymphoma and high-grade B-cell lymphoma with MYC and BCL2 and/or BCL6 rearrangements. The results of the clinical trial showed significant anti-tumor activity and manageable tolerability profile across a broad population of patients with relapsed or refractory DLBCL. The clinical trial's design and our main findings are summarized below.

*Clinical Trial Design*

The primary objective of the Phase 2 clinical trial was to evaluate the efficacy of ZYNLONTA in patients with relapsed or refractory DLBCL, measured by ORR based on the 2014 Lugano Classification Criteria. The secondary objectives were to (i) further evaluate the efficacy of ZYNLONTA measured by DoR, CRR, PFS, relapse-free survival ("RFS") and OS, (ii) characterize the safety profile of ZYNLONTA, (iii) characterize the pharmacokinetic profile of ZYNLONTA, (iv) evaluate the immunogenicity of ZYNLONTA and (v) evaluate the impact of ZYNLONTA treatment on health-related quality of life ("HRQoL").

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The clinical trial enrolled patients with pathologically confirmed relapsed or refractory DLBCL who have previously received two or more multi-agent systemic treatment regimens. The table below presents information about the patients' characteristics.

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| | | | |
|:---|:---|:---|:---|
| **Patient Characteristics** | | **n=145** | |
| Age, median (minimum, maximum) |  | 66 | (23, 94) |
| Histology, n (%) | DLBCL Not otherwise specified | 128 | (88.3) |
|  | HGBCL\* | 10 | (6.9) |
|  | PMBCL\*\* | 7 | (4.8) |
| Cancer characteristic, n (%) | Double-hit or triple-hit disease\*\*\* | 15 | (10.3) |
|  | Double/triple expressor | 20 | (13.8) |
|  | Transformed disease\*\*\*\* | 29 | (20.0) |
| Disease stage\*\*\*\*\*, n (%) | I-II | 33 | (22.8) |
|  | III-IV | 112 | (77.2) |
| Number of previous systemic therapies received, median (minimum, maximum) |  | 3 | (2, 7) |
| Response to first-line prior systemic therapy, n (%) | Relapsed | 99 | (68.3) |
|  | Refractory | 29 | (20.0) |
| Response to most recent prior systemic therapy, n (%) | Relapsed | 44 | (30.3) |
|  | Refractory | 88 | (60.7) |
| Refractory to all prior systemic therapies, n (%) | Yes | 24 | (16.6) |
|  | No | 115 | (79.3) |
| Prior stem cell transplant, n (%) | Autologous stem cell transplant | 21 | (14.5) |
|  | Allogeneic stem cell transplant | 2 | (1.4) |
|  | Both autologous and allogeneic stem cell transplant | 1 | (0.7) |
|  | No | 121 | (83.4) |

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Information about the patients' characteristics. \*High-grade diffuse large B-cell lymphoma. \*\*Primary mediastinal large B-cell lymphoma. \*\*\*Double-hit or triple-hit DLBCL are rare subtypes of DLBCL characterized by two or three recurrent chromosome translocations and are generally associated with poor prognosis. \*\*\*\*Transformed disease is recorded for patients who had another type of lymphoma that transformed to DLBCL. \*\*\*\*\*Disease stage is determined by the location of the tumor: Stage I means that the cancer is located in a single region, usually one lymph node and the surrounding area. Stage II means that the cancer is located in two separate regions, an affected lymph node or lymphatic organ and a second affected area, and that both affected areas are confined to one side of the diaphragm; Stage III means that the cancer has spread to both sides of the diaphragm, including one organ or area near the lymph nodes or the spleen; Stage IV means diffuse or disseminated involvement of one or more extralymphatic organs, including any involvement of the liver, bone marrow, or nodular involvement of the lungs.

The clinical trial used a two-stage design, with an interim analysis for futility based on data collected from the first 52 patients. The results of the interim analysis for futility in May 2019 showed that the clinical trial met the criteria to continue to full enrollment. Patients received a 150 µg/kg dose on the first day of each 21-day treatment cycle for two treatment cycles, followed by a reduction to a 75 µg/kg dose on the first day of each 21-day treatment cycle for up to one year. The decision for initial dosing at the 150 µg/kg dose level was predicated on higher observed and predicted ORR as compared to lower dose levels. The decision to reduce the dose level after two treatment cycles was based on the rapid onset of initial response observed in the majority of patients in the Phase 1 clinical trial and the desire to optimize the risk-benefit profile for patients. Therefore, the dosing regimen was selected to optimize the frequency of objective response, while permitting continued exposure with manageable toxicity to optimize the durability of response. In this clinical trial, response to treatment was determined as CR, PR, SD or PD, based on the 2014 Lugano Classification Criteria. We also collected liquid biopsies from all patients before and after treatment with ZYNLONTA and we are applying multi-omics approaches (i.e., biological analysis approaches in which data sets of different "omic" groups, such as genome, proteome, and epigenome, are combined) to identify genetic signatures that may predict response to ZYNLONTA.

*Clinical Trial Results*

The mean number of treatment cycles received was 4.6 and the maximum number of treatment cycles received was 26.

As of March 1, 2021, the main observed safety and tolerability findings were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grade ≥3 TEAEs were reported in 107 patients, or 73.8% of patients. The most common Grade ≥3 TEAEs that were reported in more than 10% of patients included neutropenia (reported in 26.2% of patients), thrombocytopenia (reported in 17.9% of patients), gamma-glutamyltransferase increased (reported in 17.2% of patients) and anemia (reported in 10.3% of patients).

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Treatment-related adverse events in 27 patients, or 18.6% of patients, led to treatment discontinuation. The most common of such adverse events that led to treatment discontinuation in more than 2% of patients included gamma-glutamyltransferase increased (led to treatment discontinuation in 11.7% of patients), peripheral edema (led to treatment discontinuation in 2.8% of patients) and localized edema (led to treatment discontinuation in 2.1% of patients).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No increase in adverse events was observed in patients aged ≥65 years compared to younger patients.

The main observed efficacy findings were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Thirty-six patients, or 24.8% of patients, achieved a complete response and another 34 patients, or 23.4% of patients, achieved a partial response, resulting in a 48.3% ORR. The table below shows the response rate data. The median time to first response was 41.0 days.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Histology** | **Histology** | **Histology** | **Histology** |
|<br>**Best Overall Response, n (%)** | **DLBCL-NOS**<br>**(n=128)** | **HGBCL**<br>**(n=10)** | **PMBCL**<br>**(n=7)** | **All Patients**<br>**(n=145)** |
| Complete response (CR) | 31 (24.2) | 5 (50.0) | 0 (0.0) | 36 (24.8) |
| Partial response (PR) | 33 (25.8) | 0 (0.0) | 1 (14.3) | 34 (23.4) |
| Stable disease | 20 (15.6) | 1 (10.0) | 1 (14.3) | 22 (15.2) |
| Progressive disease | 24 (18.8) | 3 (30.0) | 3 (42.9) | 30 (20.7) |
| Not evaluable | 20 (15.6) | 1 (10.0) | 2 (28.6) | 23 (15.9) |
| **Overall response rate (CR + PR)** | **64 (50.0)** | **5 (50.0)** | **1 (14.3)** | **70 (48.3)** |

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Response rate data. "Not evaluable" includes patients without any scan to independent reviewer (even clinical PD) or patients whose scan is determined as "not evaluable" by independent reviewer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ZYNLONTA's favorable clinical activity was observed across a broad patient population in this clinical trial, including transplant eligible and ineligible patients, patients who have not responded to first-line therapy or any prior therapy, patients with bulky disease, double-hit and triple-hit disease and transformed disease and patients who had received prior CD19 therapies or SCT. The tables below show the effect by tumor characteristics, age, response to prior therapy (i.e., stem cell transplant or CAR-T) on response rate data.

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| | |
|:---|:---|
| **Tumor Characteristics** | **Overall Response Rate,**<br>**responders/total (%)** |
| Double-hit or triple-hit disease | 5/15 (33.3) |
| Transformed disease | 13/29 (44.8) |
| Double/triple expressor | 10/20 (50.0) |
| Germinal center B-cell DLBCL | 26/48 (54.2) |
| Activated B-cell DLBCL | 11/23 (47.8) |

---

---

| | |
|:---|:---|
| **Age** | **Overall Response Rate,**<br>**responders/total (%)** |
| Less than 65 | 32/65 (49.2) |
| More than or equal to 65 | 38/80 (47.5) |

---

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

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| | | |
|:---|:---|:---|
| **Response to Prior Therapy** | | **Overall Response Rate,**<br>**responders/total (%)** |
| Response to first-line systemic therapy | Refractory | 11/29 (37.9) |
|  | Relapsed | 53/99 (53.5) |
| Response to prior last-line systemic therapy | Refractory | 31/88 (35.2) |
|  | Relapsed | 30/44 (68.2) |
| Response to any prior line systemic therapy | Refractory | 9/24 (37.5) |
|  | Relapsed | 60/115 (52.2) |

---

---

| | |
|:---|:---|
| **Prior Therapy** | **Overall Response Rate,**<br>**responders/total (%)** |
| Stem cell transplant | 14/24 (58.3) |
| CAR-T | 6/13 (46.2) |

---

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| | |
|:---|:---|
| **Prior Number of Systemic Therapies** | **Overall Response Rate,**<br>**responders/total (%)** |
| Two prior lines | 30/63 (47.6) |
| Three prior lines | 17/35 (48.6) |
| More than three prior lines | 23/47 (48.9) |

---

_______________

Overall response rate data by various baseline patient characteristics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The median DoR was 13.37 months for patients who achieved a response and was not reached for patients who achieved a complete response. The median DoR observed in subgroups at high risk of poor prognosis was comparable to that observed in the overall study population. The figure below shows the DoR.

![adc-20221231_g13.jpg](adc-20221231_g13.jpg)

_______________

Duration of response. \*mDoR for patients with a PR was 5.68 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sixteen patients received CD-19 directed CAR-T after receiving treatment with ZYNLONTA, with an investigator-assessed ORR of 43.8% (6 CR and 1 PR). Eleven patients received SCT as consolidation after responding to treatment with ZYNLONTA.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The median progression free survival was 4.93 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The median overall survival was 9.53 months.

**Ongoing ZYNLONTA Studies**

LOTIS-5: A Phase 3, randomized, open label, study of loncastuximab tesirine combined with rituximab versus immunochemotherapy in patients with diffuse large B-cell lymphoma (DLBCL) who are relapsed or refractory (r/r) after at least one prior therapy. A 2-part design is used to conduct the study. Part 1 was a non-randomized safety run-in with loncastuximab tesirine + rituximab (Lonca-R) to characterize the safety of the combination therapy. Part 2 is a randomized study evaluating the efficacy and safety of Lonca-R versus standard immunochemotherapy. The primary endpoint is PFS, defined as the time between randomization and the first documentation of recurrence or progression by independent central review, or death from any cause. The study will also assess OS, ORR, CR rate, and DOR.

In Part 1, 20 patients enrolled to receive Lonca-R in the safety run-in. Loncastuximab tesirine was administered as an IV infusion on Day 1 of each cycle of three weeks. Patients received 150 μg/kg for two cycles, then 75 μg/kg for up to six additional cycles. Rituximab 375 mg/m2 was administered as an IV infusion on Day 1 of each cycle for a total of eight cycles. After the 20th patient in the safety run-in completed the first cycle of treatment, the toxicity of Lonca-R was compared with historical safety data from loncastuximab tesirine monotherapy studies. No significant increase in toxicity was observed, and Part 2 was initiated in February 2022. Patients are randomized (1:1 ratio) to receive either Lonca-R or rituximab/gemcitabine/oxaliplatin (R-GemOx). The IDMC met in January 2023 and recommended continuation of the study without modifications. Among the first 20 patients, ORR of 75% and CR of 40% were observed in SOHO 2022.

LOTIS-7: A Phase 1b, multi-center, open-label, multi-arm study to evaluate the safety and anti-cancer activity of loncastuximab tesirine in combination with other anti-cancer agents in patients with R/R B-NHL. The study is designed to evaluate various combinations in two parts: Dose Escalation (Part 1) and Dose Expansion (Part 2). Part 1 of the study is ongoing with a cohort of patients receiving loncastuximab tesirine + Polivy. Two additional cohorts in combination with CD20xCD3 bispecific antibodies (mosunetuzumab and glofitamab) are planned in Q3 of 2023.

LOTIS-9: A Phase 2 open-label study of loncastuximab tesirine in combination with rituximab (Lonca-R) in previously untreated unfit/frail patients with DLBCL, as determined by the simplified geriatric assessment tool (sGA). The study is defined to assess the efficacy and tolerability of Lonca-R in patients > 80 years who are unfit (Cohort A); or frail (Cohort B). Cohort B is also open to patients 65-79 with cardiac contraindication(s) to anthracycline therapy. At Cycle 1, patients will be administered rituximab 375 mg/m<sup>2</sup> as an IV infusion on Day 1, followed by loncastuximab tesirine as an IV infusion on Day 2. Thereafter, both treatments are administered on Day 1 of each 3-week cycle. For the first 2 cycles, patients will receive 150 µg/kg; 75 µg/kg will be administered for subsequent cycles. All patients are intended to receive 4 cycles of Lonca-R, with an additional 2 cycles offered to those who do not achieve complete response at first disease assessment during prior to cycle 4. Enrollment is ongoing.

LOTIS-10: This is a Phase 1b open-label, multi-center study to evaluate the safety, PK, and anti-cancer activity of loncastuximab tesirine in patients with R/R DLBCL or HGBCL – including a dose escalation in patients with moderate or severe hepatic impairment. Patients will be assigned to one of three arms: normal hepatic function (arm A), moderate hepatic impairment (arm B), or severe hepatic impairment (arm C) as defined by the Organ Dysfunction Working Group (ODWG) hepatic impairment classification. Patients assigned to Arm A will receive loncastuximab tesirine intravenously (IV) at 150 μg/kg for two cycles, then 75 μg/kg for subsequent cycles. Patients assigned to Arms B and C will receive loncastuximab tesirine IV in a standard 3+3 design, starting at 60% of the dose level used in LOTIS-2. Enrollment is expected to start in second half of 2023.

Pediatric Trial: 'Glo-BNHL' is a global study of novel agents in pediatric and adolescent relapsed and refractory B-cell non-Hodgkin Lymphoma (R/R BNHL), sponsored by the University of Birmingham, UK. This international multi-center, adaptive, platform trial will enroll children, adolescents, and young adults with R/R BNHL to receive treatment in one of three parallel cohorts; Arm I, bispecific antibody (BsAb); Arm II, antibody-drug conjugate (ADC) with standard chemotherapy; and Arm III, chimeric antigen receptor (CAR) T-cells. Novel agents are selected for inclusion in the platform according to an overarching prioritization list and a robust systematic scientific assessment of each proposed asset, performed by the international Trial Steering Committee (TSC). Loncastuximab tesirine was selected for study in arm II in combination with modified R-ICE (rituximab, ifosfamide, carboplatin and etoposide) chemotherapy to estimate the clinical efficacy of the combination in patients with R/R B-NHL in first (only one prior line of therapy) or subsequent relapse (more than one prior line of therapy). The study is anticipated to start in the second half of 2023.

**Our PBD-based Franchise and Expanded Platform**

Our PBD-based franchise comprises four clinical-stage product candidates and two preclinical product candidates for the treatment of lymphoma and leukemia, as well as various solid tumor cancers, including colorectal cancer, head and neck cancer, non-small cell lung cancer, gastric and esophageal cancers, pancreatic cancer, bladder cancer, renal cell carcinoma, melanoma, triple negative breast cancer, ovarian cancer and prostate cancer.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

**Camidanlumab Tesirine: PBD-Based ADC Targeting CD25**

***Structure and Mechanism of Action***

Cami is composed of a human monoclonal antibody (HuMax®-TAC) directed against human CD25 and conjugated through a cathepsin-cleavable linker to SG3199, a PBD dimer cytotoxin. Once bound to a CD25-expressing cell, it is designed to be internalized by the cell, following which the warhead is released. The warhead is designed to bind irreversibly to DNA to create highly potent interstrand cross-links that block DNA strand separation, thus disrupting essential DNA metabolic processes such as replication and ultimately resulting in cell death. The figure below shows a visual representation of Cami and its mechanism of action.

![adc-20221231_g14.jpg](adc-20221231_g14.jpg)

_______________

Visual representation of Cami.

CD25, or T cell activation antigen, is the alpha chain of IL-2R. In normal human tissue, expression of CD25 is mainly limited to activated T cells and activated B cells. CD25 is involved in autoimmunity, organ transplantation, and graft rejection, and Tregs are involved in the prevention of autoimmune processes. The preponderance of CD25-expressing cells in hematological malignancies and the relationship between increased CD25 expression and poor prognosis raises the possibility of using an anti-CD25 antibody to deliver a potent cytotoxin to these cells in patients.

***Phase 2 Clinical Trial in Relapsed or Refractory Hodgkin Lymphoma***

We have completed a 117-patient Phase 2, multi-center, open-label, single-arm clinical trial to evaluate the safety and efficacy of Cami in patients with relapsed or refractory HL. The clinical trial's design and our main findings are summarized below.

*Clinical Trial Design*

The primary objective of the Phase 2 clinical trial is to evaluate the efficacy of Cami in patients with relapsed or refractory HL, measured by ORR based on the 2014 Lugano Classification Criteria. The secondary objectives are to (i) characterize additional efficacy endpoints of Cami, including DoR, complete response rate, PFS and OS, (ii) characterize the safety profile of Cami, (iii) characterize the pharmacokinetic profile of Cami, (iv) evaluate the immunogenicity of Cami, and (v) evaluate the impact of Cami treatment on HRQoL.

The clinical trial enrolled patients with pathologically confirmed relapsed or refractory HL who have failed three prior lines of therapy (or at least two prior lines in SCT-ineligible patients), including brentuximab vedotin and a checkpoint inhibitor approved for HL, such as nivolumab or pembrolizumab. The table below presents information about the 117 patients' characteristics as of March 16, 2022.

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| | | |
|:---|:---|:---|
| **Patient Characteristics** | | |
| Age, median (minimum, maximum) |  | 37 (19, 87) |
| Histology, n (%) | Nodular sclerosis cHL | 91 (77.8) |
|  | Other/unknown/not evaluable\* | 26 (22.2) |
| ECOG performance status\*\*, n (%) | 0 | 64 (54.7) |
|  | 1 | 47 (40.2) |
|  | 2 | 6 (5.1) |
| Number of previous systemic therapies received, median (minimum, maximum) |  | 6 (319) |
| Response to first-line systemic therapy, n (%) | Relapsed | 79 (67.5) |
|  | Refractory | 29 (24.8) |
| Response to last-line systemic therapy, n (%) | Refractory | 66 (56.4) |
| Prior stem cell transplant, n (%) | Autologous stem cell transplant | 59 (50.4) |
|  | Allogeneic stem cell transplant | 3 (2.6) |
|  | Both autologous and allogeneic stem cell transplant | 12 (10.3) |
| Prior treatment with brentuximab vedotin and PD-1 blockade |  | 116 (99.1) |

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_______________

Information about the patients' characteristics. One patient had a protocol deviation of no prior treatment with brentuximab vedotin. \* Includes mixed cellularity and lymphocyte-rich cHL, and subtype not specified/unknown. \*\*ECOG performance status describes a patient's level of functioning in terms of their ability to care for themself, daily activity and physical ability: Grade 0 means fully active, able to carry on all pre-disease performance without restriction; Grade 1 means restricted in physically strenuous activity but ambulatory and able to carry out work of a light or sedentary nature; Grade 2 means ambulatory and capable of all self-care but unable to carry out any work activities.

In the clinical trial, patients received a 45 µg/kg dose of Cami on the first day of each 21-day treatment cycle for two treatment cycles and receive a 30 µg/kg dose on the first day of each 21-day treatment cycle for subsequent treatment cycles. The decision for the initial dose level is based on the following observations from our Phase 1 clinical trial: (i) the favorable ORR and complete response rate together with Cami's tolerability profile, (ii) the high fraction of patients with HL who could tolerate at least two cycles of Cami before an AE leading to a dose delay or modification occurred and (iii) the ability to manage some of the severe TEAEs at this dose level. The decision to reduce the subsequent dose level to 30 µg/kg is based on the potential to mitigate the frequency and severity of AEs foreseen in patients treated with the 45 µg/kg dose level beyond two treatment cycles while being an active dose. Therefore, the dosing regimen was selected to optimize potential response to treatment, while maintaining a manageable tolerability profile. In this clinical trial, response to treatment was determined as CR, PR, SD or PD, based on the 2014 Lugano Classification Criteria.

*Interim Data*

In January 2021, we completed enrollment with 117 patients in this clinical trial. As of March 16, 2022, the median number of treatment cycles received was 5 and the maximum number of treatment cycles received was 15.

The main observed safety and tolerability findings were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grade ≥3 TEAEs were reported in 79 patients, or 67.5% of patients. The most common Grade ≥3 TEAEs that were reported in more than 5% of patients included thrombocytopenia (9.4%), anemia (7.7%), hypophosphatemia (7.7%), neutropenia (7.7%), maculopapular rash (6.8%) and lymphopenia (6.0%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Eight cases of Guillain–Barré syndrome/polyradiculopathy were reported, including two case of Grade 4 Guillain–Barré syndrome (inflammatory demyelinating polyneuropathy), 3 cases of Grade 3 Guillain-Barré syndrome/polyradiculopathy, one case of Grade 2 radiculopathy (radiculitis) and one case of Grade 2 Guillain–Barré syndrome. Another case was considered as a Grade 4 Guillain–Barré syndrome, with the following presentation: polyneuropathy, meningitis, facial paralysis and syndrome of inappropriate secretion of antidiuretic hormone. Four of eight patients recovered, three were ongoing at Grade 1 and one died of sepsis.

In March 2020, two patients in this clinical trial were diagnosed with Guillain–Barré syndrome. Pursuant to the clinical trial protocol, which included specific stopping rules for Guillain–Barré syndrome, we suspended enrollment of new patients in this clinical trial but continued to treat enrolled patients who could derive clinical benefit from continued treatment with Cami.

Before we resumed enrollment pursuant to the recommendations of an independent DSMB, on April 17, 2020, the FDA issued a

partial clinical hold on this clinical trial. The FDA agreed that, pending its review, we could continue to treat enrolled patients,

including patients with stable disease, who could derive clinical benefit from continued treatment with Cami. In May 2020, an

additional patient was diagnosed with Guillain–Barré syndrome. At the FDA's request, we submitted certain information,

including an updated investigator's brochure, an updated clinical trial protocol, the DSMB meeting minutes, an updated informed

consent form, dose and exposure analysis for safety and response and an updated safety monitoring plan. In July 2020, the FDA

lifted the partial clinical hold.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TEAEs in 32 patients, or 27.4% of patients, led to treatment discontinuation.

The main observed efficacy findings were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 39 patients, or 33.3% of patients, achieved a complete response and another 43 patients, or 36.8% of patients, achieved a partial response, resulting in a 70.1% ORR. The table below shows the response rate data.

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| | |
|:---|:---|
| **Best Overall Response, n (%)** | **(n=117)** |
| Complete response (CR) | 39 (33.3) |
| Partial response (PR) | 43 (36.8) |
| Stable disease | 21 (17.9) |
| Progressive disease | 8 (6.8) |
| Not evaluable | 6 (5.1) |
| **Overall response rate (CR + PR)** | **82 (70.1)** |

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Response rate data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 14 patients (12%) discontinued Cami treatment with the intent to proceed to hematopoietic stem cell transplantation.

We held a pre-BLA meeting in September 2022 and a Type C meeting with the FDA in late October. During the Type C meeting, the FDA provided strong guidance that, for it to consider an accelerated approval path, a randomized confirmatory Phase 3 study must be well underway and ideally fully enrolled at the time of any BLA submission for Cami. After carefully weighing this program against the rest of our portfolio in terms of resource allocation, we have decided not to proceed on our own and to seek a partner to continue developing this program within this high unmet need patient segment.

**ADCT-602: PBD-Based ADC Targeting CD22**

***Structure and Mechanism of Action***

ADCT-602 (CD22) is composed of a humanized monoclonal antibody (hLL2-C220) directed against human CD22 and conjugated through a cathepsin-cleavable linker to SG3199, a PBD dimer cytotoxin. Once bound to a CD22-expressing cell, it is designed to be internalized by the cell, following which the warhead is released. The warhead is designed to bind irreversibly to DNA to create highly potent interstrand cross-links that block DNA strand separation, thus disrupting essential DNA metabolic processes such as replication and ultimately resulting in cell death. The figure below shows the structure of ADCT-602 (CD22).

![adc-20221231_g15.jpg](adc-20221231_g15.jpg)

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Visual representation of ADCT-602.

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The human CD22 antigen plays a pivotal role in the recognition, binding and adhesion processes of cells. CD22 is only expressed on B cells throughout all stages of B cell development and differentiation. Its expression is maintained in high levels in hematological B cell malignancies, including in NHL and certain types of leukemia, including B-cell ALL. There was an estimated 7,000 new cases of ALL in the U.S. in 2022. We believe that CD22 is an attractive target for ADCs developed to treat hematological malignancies for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The CD22 antigen is rapidly internalized by the cell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increasing number of reports describe the outgrowth of CD19-negative tumor cells in patients who initially respond to CD19-targeted therapy. We believe that given CD22's broad and favorable expression profile, it may be a viable alternative B cell marker to CD19 for the targeted delivery of highly potent cytotoxic drugs.

***Preclinical Studies***

*Preclinical Efficacy Studies*

We evaluated the *in vivo* efficacy of ADCT-602 (CD22) in the Ramos xenograft model, in which mice received a single dose of (i) ADCT-602 (CD22) at 0.3 mg/kg, (ii) ADCT-602 (CD22) at 1 mg/kg, (iii) a non-targeted ADC at 1 mg/kg, or (iv) a vehicle control. We observed that ADCT-602 (CD22) exhibited dose-dependent anti-tumor activity, while the non-targeted ADC and the vehicle control did not demonstrate any significant anti-tumor activity. The table below summarizes the response data, and the figures below show the mean tumor volume in the Ramos xenograft model and the Kaplan-Meier plot from the Ramos xenograft model.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **n (%)** | **n (%)** | **n (%)** | **n (%)** |
|<br>**Response** | **ADCT-602**<br>**0.3 mg/kg**<br>**(n=10)** | **ADCT-602**<br>**1 mg/kg**<br>**(n=10)** | **Non-Targeted ADC**<br>**1 mg/kg**<br>**(n=10)** | **Vehicle Control**<br>**(n=10)** |
| Complete response | 0 (0.0) | 10 (100.0) | 0 (0.0) | 0 (0.0) |
| Partial response | 0 (0.0) | 0 (0.0) | 0 (0.0) | 0 (0.0) |
| Tumor-free survivor | 0 (0.0) | 9 (90.0) | 0 (0.0) | 0 (0.0) |

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Response data obtained in the Ramos xenograft model. Partial response is recorded when the tumor volume was 50% or less of its Day 1 volume for three consecutive measurements during the course of the study, and equal to or greater than 13.5 mm<sup>3</sup> for one or more of these three measurements. Complete response is recorded when the tumor volume was <13.5 mm<sup>3</sup> for three consecutive measurements during the course of the study. Tumor-free survivor is recorded when a complete response is recorded at the termination of a study.

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![adc-20221231_g16.jpg](adc-20221231_g16.jpg)_______________

The anti-tumor activity of ADCT-602 in the Ramos xenograft model. Data represent the mean tumor volume ± SEM for each group of mice.

![adc-20221231_g17.jpg](adc-20221231_g17.jpg)

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The Kaplan-Meier plot of the activity of ADCT-602 in the Ramos xenograft model. Data represent Kaplan-Meier survival curves for each group of mice.

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*Preclinical Safety Studies*

We evaluated the toxicity of ADCT-602 (CD22) primarily in non-human primates and with a single-dose MTD study in rats. In non-human primates, ADCT-602 (CD22) was observed to be well tolerated at the 0.6 mg/kg dose. Toxicity was characterized by dose-dependent reversible myelosuppression, bodyweight loss, lymphocyte depletion with loss of germinal centers and CD20-positive cells and nephropathy. In rats, the MTD for ADCT-602 (CD22) was 2 mg/kg.

***Phase 1/2 Clinical Trial in Relapsed or Refractory Acute Lymphoblastic Leukemia***

Pursuant to our collaboration agreement with MD Anderson Cancer Center, MD Anderson Cancer Center is conducting a Phase 1/2, open-label, dose escalation and dose expansion clinical trial of the safety and anti-tumor activity of ADCT-602 (CD22), used as monotherapy, in patients with relapsed or refractory ALL. The clinical trial's design and the interim findings are summarized below.

*Clinical Trial Design*

The primary objectives of the dose escalation stage are to (i) evaluate the safety and tolerability, and determine, as appropriate, the MTD of ADCT-602 (CD22) in patients with relapsed or refractory ALL and (ii) determine the recommended dose(s) of ADCT-602 (CD22) for the dose expansion stage. The primary objective of the dose expansion stage is to evaluate the efficacy of ADCT-602 (CD22) at the dose level(s) recommended from the results of the dose escalation stage. The secondary objectives of the clinical trial are to (i) evaluate the clinical activity of ADCT-602 (CD22), as measured by ORR, DoR, OS and PFS, (ii) characterize the pharmacokinetic profile of ADCT-602 (CD22) and the free warhead SG3199, (iii) evaluate the immunogenicity of ADCT-602 (CD22) and (iv) characterize the effect of ADCT-602 (CD22) exposure on the QT interval.

The clinical trial will enroll patients with pathologically confirmed relapsed or refractory B-ALL and patients with pathologically confirmed relapsed or refractory Ph+ ALL who have failed either first- or second-generation tyrosine kinase inhibitor. The clinical trial is expected to enroll approximately 65 patients.

In the dose escalation stage, patients receive intravenous infusions of ADCT-602 (CD22), at escalating doses, on the first day of each 21-day treatment cycle. The initial dose of ADCT-602 (CD22) is 30 µg/kg and the highest allowed dose will be 150 µg/kg. Dose escalation is conducted using a 3+3 design with oversight by a DESC. In the dose expansion stage, patients receive ADCT-602 (CD22) at the recommended dose determined by the DESC based on the anti-tumor activity and tolerability observed during the dose escalation stage. Dose expansion is conducted according to Simon's Minimax two-stage design. In the first stage, 22 patients (including six patients treated at the MTD in the dose escalation stage) will be dosed. If there are four or fewer responses in these patients, the clinical trial will stop. Otherwise, 19 additional patients will be dosed for a total of 41 patients. In this clinical trial, response to treatment is determined as CR, PR, SD or PD, based on the 2014 Lugano Classification Criteria.

*Interim Data*

As of July 2022, 21 patients have been treated with ADCT-602 (CD22). Eleven patients were enrolled on the Q3 weekly schedule and then as the PK data indicated rapid clearance of the antibody, the trial was amended to allow for weekly dosing. As of the data cutoff, ten patients were treated on a weekly schedule. One patient at the 30 µg/kg weekly dose had grade 4 thrombocytopenia possibly related to ADCT-602 (CD22). Two heavily pretreated patients achieved MRD-negative remission, one at the 30 µg/kg weekly dose and one at the 3µg/kg dose every three weeks. Dose escalation continues at the 50µg/kg weekly dose and a subsequent higher dose level weekly may be planned before expansion phase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In this ongoing Phase 1 study in pts with heavily pretreated R/R B-ALL with a median of 5 prior lines of therapy and high baseline bone marrow tumor burden, single-agent ADCT-602 (CD22) was well tolerated with one DLT noted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Four pts achieved MRD-negative remission, including 2 of 6 pts at the 50µg/kg weekly dose level; One additional pt at 50µg/kg weekly dose level had marrow blast clearance without count recovery.

***ADCT-901: PBD-Based ADC Targeting KAAG1***

***Structure and Mechanism of Action***

KAAG1 is a novel tumor-associated antigen expressed in a high percentage of ovarian tumors and triple negative breast cancers, with limited expression in healthy tissues. There were an estimated ~ 20,000 new cases of ovarian cancer and ~ 29,000 new cases of triple negative breast cancer in the U.S. in 2022. ADCT-901 (KAAG1) is an antibody-drug conjugate (ADC) composed of a humanized monoclonal antibody (3A4) directed against human kidney associated antigen 1 (KAAG1) and conjugated through a cathepsin-cleavable linker to SG3199, a pyrrolobenzodiazepine (PBD)-dimer cytotoxin. The PBD dimer cytotoxin (SG3199) attached to the linker is designated as tesirine. The figure below shows the structure of ADCT-901 (KAAG1).

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

![adc-20221231_g18.jpg](adc-20221231_g18.jpg)

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Visual representation of ADCT-901

Once bound to KAAG1, ADCT-901 (KAAG1) is internalized and the cathepsin-cleavable linker is cleaved, releasing free PBD dimers (SG3199) inside the target cell. The PBD dimers are highly efficient anticancer drugs that covalently bind in the minor groove of DNA and form highly cytotoxic DNA interstrand cross-links. The cross-links formed by the PBD dimers are relatively non-distorting the DNA structure, making them hidden to DNA's repair mechanisms.

***Preclinical Studies***

*Preclinical Efficacy Studies*

We evaluated the *in vivo* efficacy of ADCT-901 (KAAG1) in the CTG-0252, CTG-0711, CTG-1086, and CTG-1423 ovarian cancer patient-derived xenograft models, in which mice received a single dose of (i) ADCT-901 (KAAG1) at 1 mg/kg, (ii) a non-targeted ADC at 1 mg/kg, or (iii) a vehicle control. We observed that ADCT-901 (KAAG1) exhibited potent and specific anti-tumor activity, while the non-targeted ADC and the vehicle control did not exhibit any significant anti-tumor activity. The table below summarizes the response data and the figure below shows the mean tumor volumes in the CTG-0252, CTG-0711, CTG-1086, and CTG-1423 patient-derived xenograft models.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

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| | | | | |
|:---|:---|:---|:---|:---|
| **Model #** | **Test Material** | **PR** | **CR** | **TFS** |
| CTG-0252 (Day 58) | Vehicle | 0 | 0 | 0 |
| CTG-0252 (Day 58) | Isotype-control ADC | 0 | 0 | 0 |
| CTG-0252 (Day 58) | ADCT-901 | 3 | 1 | 1 |
| CTG-0711 (Day 63) | Vehicle | 0 | 0 | 0 |
| CTG-0711 (Day 63) | Isotype-control ADC | 0 | 0 | 0 |
| CTG-0711 (Day 63) | ADCT-901 | 3 | 0 | 0 |
| CTG-1086 (Day 61) | Vehicle | 0 | 0 | 0 |
| CTG-1086 (Day 61) | Isotype-control ADC | 0 | 0 | 0 |
| CTG-1086 (Day 61) | ADCT-901 | 4 | 1 | 1 |
| CTG-1423 (Day 55) | Vehicle | 0 | 0 | 0 |
| CTG-1423 (Day 55) | Isotype-control ADC | 0 | 0 | 0 |
| CTG-1423 (Day 55) | ADCT-901 | 0 | 0 | 0 |

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![adc-20221231_g19.jpg](adc-20221231_g19.jpg)

***Preclinical Safety Studies***

We evaluated the toxicity of ADCT-901 (KAAG1) primarily in non-human primates. ADCT-901 (KAAG1) was observed to be well tolerated at the 0.3 mg/kg dose and toxicity of ADCT-901 (KAAG1) was largely consistent with the toxicity of the PBD dimer warhead and characterized by skin lesions, regenerative anemia and nephropathy. In addition, degenerative changes in the tongue and esophagus were noted.

***Phase 1 Clinical Trial in KAAG1-Expressing Tumor Types***

*Clinical Trial Design*

On September 27, 2021, we announced that the first patient was dosed in the Phase 1 clinical trial evaluating ADCT-901 (KAAG1), targeting KAAG1, in patients with selected advanced solid tumors with high unmet medical needs, including platinum resistant ovarian cancer and triple negative breast cancer. The open-label, dose-escalation and dose-expansion clinical trial will evaluate the safety, tolerability, pharmacokinetics, and antitumor activity of ADCT-901 (KAAG1) as monotherapy in patients with selected advanced solid tumors.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

The primary objectives of the dose escalation stage are to (i) determine the recommended dose(s) for the expansion stage, and (ii) evaluate the safety and tolerability, and determine, as appropriate, the MTD of ADCT-901 (KAAG1) in patients with select relapsed or refractory solid tumors. The primary objective of the dose expansion stage is to evaluate the efficacy of ADCT-901 (KAAG1) at the dose level(s) recommended from the results of the dose escalation stage. The secondary objectives of the clinical trial are to (i) evaluate the anti-tumor activity of ADCT-901 (KAAG1), as measured by ORR, DoR, OS and PFS, (ii) characterize the pharmacokinetic profile of ADCT-901 (KAAG1) and, (iii) evaluate the immunogenicity of ADCT-901 (KAAG1).

The clinical trial will enroll patients with pathologically confirmed locally advanced or metastatic cholangiocarcinoma, ovarian/fallopian tube cancers, prostate cancer, renal cell carcinoma, and triple negative breast cancer who are refractory to or intolerant to exciting therapy(ies) known to provide clinical benefit for their condition. The clinical trial is expected to enroll approximately 76 patients.

In the dose escalation stage, patients receive intravenous infusions of ADCT-901 (KAAG1), at escalating doses, on the first day of each 21-day treatment cycle. The initial dose of ADCT-901 (KAAG1) is 15 µg/kg and the highest allowed dose will be 290 µg/kg. Dose escalation is conducted using a 3+3 design with oversight by a DESC. In the dose expansion stage, patients will receive ADCT-901 (KAAG1) at the recommended dose determined by the DESC based on the anti-tumor activity and tolerability observed during the dose escalation stage. Dose expansion will be conducted with the dose of ADCT-901 (KAAG1) identified as RDE/MTD during dose-escalation. In this clinical trial, response to treatment is determined as CR, PR, SD or PD, based on RECIST v1.1.

We are currently in the dose escalation stage of the Phase 1 trial at a dose of 9 mg and are proceeding with final validation of an IHC assay.

**ADCT-601: PBD-Based ADC Targeting AXL**

***Structure and Mechanism of Action***

ADCT-601 (AXL) is composed of a humanized monoclonal antibody (1H12-HAKB) directed against human AXL and conjugated through a cathepsin-cleavable linker to SG3199, a PBD dimer cytotoxin. Once bound to an AXL-expressing cell, it is designed to be internalized by the cell, following which the warhead is released. The warhead is designed to bind irreversibly to DNA to create highly potent interstrand cross-links that block DNA strand separation, thus disrupting essential DNA metabolic processes such as replication and ultimately resulting in cell death. AXL is thought to be overexpressed in various solid tumors of significant unmet medical need including non-small cell lung cancer, pancreatic cancer, renal cell carcinoma, and ovarian cancer. There were an estimated ~201,000 new cases of non-small cell lung cancer, ~62,000 new cases of pancreatic cancer, ~71,000 new cases of renal cell carcinoma, and ~20,000 new cases of ovarian cancer in the U.S. in 2022. The figure below shows the structure of ADCT-601 (AXL). ADCT-601 (AXL) also features the following unique technologies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ADCT-601 (AXL) uses Glycoconnect<sup>TM</sup> site-specific conjugation technology, which allows for fast and stable conjugation of the warhead to the antibody.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The PBD payload of ADCT-601 (AXL) contains a unique spacer, Hydraspace<sup>TM</sup>, which we have shown to provide an additional improvement in therapeutic index in preclinical models.

![adc-20221231_g20.jpg](adc-20221231_g20.jpg)

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Visual representation of ADCT-601.

AXL plays a pivotal role in various physiological and pathological processes. We believe that AXL is an attractive target for ADCs developed to treat solid tumors for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AXL is highly overexpressed or ectopically expressed in a multitude of solid tumors, including in lung, breast, prostate, pancreas, glioma and esophageal cancers. Its overexpression is maintained in both primary tumors and metastasis.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AXL expression in healthy tissues is significantly lower than that in tumor cells.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AXL is expressed on M2 macrophages, which are part of the immunosuppressive tumor microenvironment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expression and activation of AXL is associated with poor clinical prognosis in many tumor indications and several studies suggest that expression of AXL is induced by both targeted and chemotherapy drugs. Therefore, AXL-based therapies may be efficacious even where traditional therapies have failed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AXL is prevalent in tumors resistant to anti-PD1 therapy, and pre-clinical data have shown the benefit of combining AXL-targeted therapies with immunotherapies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The extracellular portion of AXL can be cleaved off from the membrane to generate soluble AXL ("sAXL"), which can be detected in serum. Recent studies suggest that sAXL can be a potential circulating biomarker in certain tumors, representing a potentially attractive biomarker for clinical use.

***Preclinical Studies***

*Preclinical Efficacy Studies*

*Breast Cancer*

We evaluated the *in vivo* efficacy of ADCT-601 (AXL) in the MDA-MB-231 xenograft model (a triple negative breast cancer model), in which mice received a single dose of (i) ADCT-601 (AXL) at 1 mg/kg, (ii) a non-targeted ADC at 1 mg/kg, or (iii) a vehicle control. We observed that ADCT-601 (AXL) exhibited potent and sustained anti-tumor activity, while the non-targeted ADC and the vehicle control did not exhibit any significant anti-tumor activity. The table below summarizes the response data, and the figures below show the mean tumor volume in the MDA-MB-231 xenograft model and the Kaplan-Meier plot from the MDA-MB-231 xenograft model.

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| | | | |
|:---|:---|:---|:---|
| **Response** | **n (%)** | **n (%)** | **n (%)** |
| **Response** | **ADCT-601**<br>**1 mg/kg**<br>**(n=10)** | **Non-Targeted ADC**<br>**1 mg/kg**<br>**(n=10)** | **Vehicle Control**<br>**(n=10)** |
| Complete response | 4 (40.0) | 0 (0.0) | 0 (0.0) |
| Partial response | 5 (50.0) | 0 (0.0) | 0 (0.0) |
| Tumor-free survivor | 4 (40.0) | 0 (0.0) | 0 (0.0) |

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Response data obtained in the MDA-MB-231 xenograft model. Partial response is recorded when the tumor volume was 50% or less of its Day 1 volume for three consecutive measurements during the course of the study, and equal to or greater than 13.5 mm<sup>3</sup> for one or more of these three measurements. Complete response is recorded when the tumor volume was <13.5 mm<sup>3</sup> for three consecutive measurements during the course of the study. Tumor-free survivor is recorded when a complete response is recorded at the termination of a study.

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![adc-20221231_g21.jpg](adc-20221231_g21.jpg)

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The anti-tumor activity of ADCT-601 in the MDA-MB-231 xenograft model. Data represent the mean tumor volume ± SEM for each group of mice.

![adc-20221231_g22.jpg](adc-20221231_g22.jpg)

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The Kaplan-Meier plot of the activity of ADCT-601 in the MDA-MB-231 xenograft model. Data represent Kaplan-Meier survival curves for each group of mice.

*Esophageal Cancer*

We evaluated the *in vivo* efficacy of ADCT-601 (AXL) in the ES0195 patient-derived xenograft model, in which mice received a single dose of (i) ADCT-601 (AXL) at 1 mg/kg, (ii) a non-targeted ADC at 1 mg/kg, or (iii) a vehicle control. We observed that ADCT-601 (AXL) exhibited potent and sustained anti-tumor activity, while the non-targeted ADC and the vehicle control did not exhibit any significant anti-tumor activity. The table below summarizes the response data and the figures below show the mean tumor volume in the ES0195 patient-derived xenograft model and the Kaplan-Meier plot from the ES0195 patient-derived xenograft model.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

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| | | | |
|:---|:---|:---|:---|
| **Response** | **n (%)** | **n (%)** | **n (%)** |
| **Response** | **ADCT-601**<br>**1 mg/kg**<br>**(n=8)** | **Non-Targeted ADC**<br>**1 mg/kg**<br>**(n=8)** | **Vehicle Control**<br>**(n=8)** |
| Complete response | 2 (25.0) | 0 (0.0) | 0 (0.0) |
| Partial response | 5 (62.5) | 0 (0.0) | 0 (0.0) |
| Tumor-free survivor | 2 (25.0) | 0 (0.0) | 0 (0.0) |

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Response data obtained in the ES0195 patient-derived xenograft model. Partial response is recorded when the tumor volume was 50% or less of its Day 1 volume for three consecutive measurements during the course of the study, and equal to or greater than 13.5 mm<sup>3</sup> for one or more of these three measurements. Complete response is recorded when the tumor volume was <13.5 mm<sup>3</sup> for three consecutive measurements during the course of the study. Tumor-free survivor is recorded when a complete response is recorded at the termination of a study.

![adc-20221231_g23.jpg](adc-20221231_g23.jpg)

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The anti-tumor activity of ADCT-601 in the ES0195 patient-derived xenograft model. Data represent the mean tumor volume ± SEM for each group of mice.

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![adc-20221231_g24.jpg](adc-20221231_g24.jpg)

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The Kaplan-Meier plot of the activity of ADCT-601 in the ES0195 patient-derived xenograft model. Data represent Kaplan-Meier survival curves for each group of mice.

*Pancreatic Cancer*

We evaluated the in vivo efficacy of ADCT-601 (AXL) and that of AXL-107-MMAE, an AXL-targeted ADC similar to HuMax-AXL-ADC, which was in clinical development by a third party for multiple types of solid tumors, in the PAXF1657 pancreatic cancer patient-derived xenograft model. Mice received a single dose of (i) ADCT-601 (AXL) at 0.075 mg/kg, (ii) ADCT-601 (AXL) at 0.15 mg/kg, (iii) ADCT-601 (AXL) at 0.3 mg/kg, (iv) AXL-107-MMAE at 0.3 mg/kg, (v) AXL-107-MMAE at 4 mg/kg, or (vi) a control vehicle. We observed that ADCT-601 (AXL) exhibited dose-dependent anti-tumor activity and superior anti-tumor activity compared to AXL-107-MMAE when tested at the same low dose of 0.3 mg/kg. The table below summarizes the response data and the figures below show the mean tumor volume in the PAXF1657 xenograft model and the Kaplan-Meier plot from the PAXF1657 patient-derived xenograft model.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **n (%)** | **n (%)** | **n (%)** | **n (%)** | **n (%)** | **n (%)** |
|<br>**Response** | **ADCT-601**<br>**0.075 mg/kg**<br>**(n=8)** | **ADCT-601**<br>**0.15 mg/kg**<br>**(n=8)** | **ADCT-601**<br>**0.3 mg/kg**<br>**(n=8)** | **AXL-107-MMAE**<br>**0.3 mg/kg**<br>**(n=8)** | **AXL-107-MMAE**<br>**4 mg/kg**<br>**(n=8)** | **Vehicle Control**<br>**(n=8)** |
| Complete response | 0 (0.0) | 0 (0.0) | 3 (37.5) | 0 (0.0) | 8 (100.0) | 0 (0.0) |
| Partial response | 0 (0.0) | 0 (0.0) | 1 (12.5) | 0 (0.0) | 0 (0.0) | 0 (0.0) |
| Tumor-free survivor | 0 (0.0) | 0 (0.0) | 3 (37.5) | 0 (0.0) | 8 (100.0) | 0 (0.0) |

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Response data obtained in the PAXF1657 patient-derived xenograft model. Partial response is recorded when the tumor volume was 50% or less of its Day 1 volume for three consecutive measurements during the course of the study, and equal to or greater than 13.5 mm<sup>3</sup> for one or more of these three measurements. Complete response is recorded when the tumor volume was <13.5 mm<sup>3</sup> for three consecutive measurements during the course of the study. Tumor-free survivor is recorded when a complete response is recorded at the termination of a study.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

![adc-20221231_g25.jpg](adc-20221231_g25.jpg)

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The anti-tumor activity of ADCT-601 in the PAXF1657 patient-derived xenograft model. Data represent the mean tumor volume ± SEM for each group of mice.

![adc-20221231_g26.jpg](adc-20221231_g26.jpg)

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The Kaplan-Meier plot of the activity of ADCT-601 in the PAXF1657 patient-derived xenograft model. Data represent Kaplan-Meier survival curves for each group of mice.

*Preclinical Safety Studies*

We evaluated the toxicity of ADCT-601 (AXL) primarily in non-human primates and with a single-dose MTD study in rats. In non-human primates, toxicity was observed in the immune system, bone marrow, kidney, mammary glands (females only), reproductive tract and skin. Most microscopic findings were not reversible after a six-week recovery phase, except for the morphologic effect on the hematopoietic system in the bone marrow in both sexes, and the immune system (spleen, thymus and gut-associated lymphoid tissue) in males. In rats, the MTD for ADCT-601 (AXL) was 6 mg/kg.

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*Preclinical Studies Combined with Gemcitabine*

In preclinical models, ADCT-601 (AXL) had additive or synergistic activity with the antimetabolite gemcitabine, which inhibits DNA synthesis. In vitro, ADCT-601 (AXL) and gemcitabine had additive activity in 6/7 pancreatic cancer cell lines, whereas synergy was observed in another pancreatic cancer cell line and one non-small cell lung cancer line. In vivo in a pancreatic PDX model, increased survival was observed in all mice treated with the combination of gemcitabine and ADCT-601 (AXL) when compared to either ADCT-601 (AXL) or gemcitabine alone, while it increased the numbers of mice with partial response or a complete response.

![adc-20221231_g27.jpg](adc-20221231_g27.jpg)___________

The anti-tumor activity of ADCT-601 in combination with gemcitabine in the PAXF1657 patient-derived xenograft model. Data represent the mean tumor volume ± SEM for each group of mice. Treatments started on day 1; ADCT-601 was tested as single dose at 0.075 mg/kg; gemcitabine was tested at 240 mg/kg, q7d x 4. Left graph shows the mean tumor volumes, whereas the Kaplan-Meier plot is shown on the right. Data represent Kaplan-Meier survival curves for each group of mice.

***Phase 1 Clinical Trial in Selected Advanced Solid Tumors***

We conducted a Phase 1, open-label, dose escalation and dose expansion clinical trial of the safety, tolerability, pharmacokinetics and anti-tumor activity of ADCT-601 (AXL), used as monotherapy, in patients with selected advanced solid or metastatic tumors, including triple-negative breast cancer, colorectal cancer, esophageal cancer, gastric cancer, head and neck cancer, mesothelioma, non-small cell lung cancer, ovarian cancer, pancreatic cancer and soft tissue sarcoma. The clinical trial's design and our interim findings are summarized below.

*Clinical Trial Design*

The primary objectives of the clinical trial were to (i) evaluate the safety and tolerability of ADCT-601 (AXL) in patients with selected advanced solid tumors and (ii) identify the recommended dose and dose schedule for future studies in patients with selected advanced solid tumors. The secondary objectives were to (i) evaluate the preliminary anti-tumor activity of ADCT-601 (AXL), (ii) characterize the pharmacokinetic profile of ADCT-601 (AXL) and (iii) evaluate the immunogenicity of ADCT-601 (AXL).

The clinical trial enrolled patients with pathologically confirmed relapsed or refractory solid tumor malignancy that is locally advanced or metastatic at the time of screening and who have failed or are intolerant to existing therapies.

In the dose escalation stage, patients received intravenous infusion of ADCT-601 (AXL), at escalating doses, on the first day of each 21-day treatment cycle. The initial dose was 50 µg/kg and the highest given dose was 150 µg/kg. Dose escalation was conducted using a 3+3 design with oversight by a DESC. In this clinical trial, response to treatment was determined as CR, PR, SD or PD, based on RECIST and iRECIST.

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*Clinical Trial Results*

The dose escalation stage of the Phase 1 clinical trial has been completed. As of November 4, 2019, 17 patients have been treated with ADCT-601 (AXL). Ten patients experienced one or more Grade ≥3 TEAEs, with the most common being abdominal pain and urinary tract obstruction. One DLT of Grade 3 hematuria was observed in a colorectal cancer patient treated at the 100 µg/kg dose level who had a history of radiotherapy involving the bladder. In addition, one DLT of hyponatremia was observed in an ovarian cancer patient treated at the 150 µg/kg dose level, which the investigator assessed as probably being related to ADCT-601 (AXL).

Thirteen patients have been assessed by the investigator for response to treatment, one of whom achieved a partial response and seven of whom displayed stable disease.

On July 27, 2022, we announced that a first patient was dosed in a Phase 1b trial for ADCT-601 (mipasetamab uzoptirine) (AXL), investigating ADCT-601 (AXL) in combination with gemcitabine in patients with sarcoma; and ADCT-601 (AXL) as a single agent, in patients with sarcoma, non-small cell lung cancer, and any solid tumors with AXL gene amplification. We expect preliminary data from the Phase I dose escalation/expansion study in 1H 2024. The IHC assay is under final validation.

**Our Preclinical Solid Tumor Product Candidates**

***ADCT-212: PBD-Based ADC Targeting PSMA***

We are developing ADCT-212 targeting PSMA for the treatment of metastatic castrate resistant prostate cancer (mCRPC). ADCT-212 (PSMA) is a second generation PBD based ADC targeting PSMA-expressing cancers. There were an estimated ~270,000 new cases of prostate cancer in the U.S. in 2022. PSMA is expressed in more than 80% of people with prostate cancer. Initially, we and Medimmune developed the PSMA-specific ADC MEDI3726 in a collaboration with Medimmune. We observed signs of clinical efficacy with MEDI3726, but patients did not tolerate multiple cycles and the pharmacokinetic profile of MEDI3726 was characterized by rapid PK and instability of MEDI3726, reducing exposure of the tumor to the ADC. In ADCT-212 (PSMA), we have changed the PSMA specific antibody, the site-specific conjugation method, the PBD linker and the PBD dimer toxin to improve PK and tolerability. ADCT-212 (PSMA) is composed of a fully human antibody directed against human PSMA and conjugated using Glycoconnect technology to a payload containing Hydraspace, a cathepsin-cleavable linker and the PBD toxin SG2000, which is a PBD toxin with a lower potency compared to the PBD toxin SG3199, which was used in MEDI3726.

We evaluated the in vivo efficacy of ADCT-212 (PSMA) in the LNCaP xenograft model, in which mice received a single dose of (i) ADCT-212 (PSMA) at 5 mg/kg or 10 mg/kg, a non-targeted isotype control ADC at 10 mg/kg, or (v) a vehicle control. We observed that ADCT-212 (PSMA) exhibited potent, specific anti-tumor activity, while the non-targeted ADC and the vehicle control did not exhibit any significant anti-tumor activity.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

![adc-20221231_g28.jpg](adc-20221231_g28.jpg)

***ADCT-701: PBD-Based ADC Targeting DLK-1***

ADCT-701 (DLK-1) is an ADC targeting DLK-1-expressing cancers. We are developing ADCT-701 (DLK-1) for the treatment of neuroendocrine tumors with high unmet medical needs, including adrenocortical carcinoma, pheochromocytoma, paraganglioma, hepatocellular carcinoma, neuroblastoma and small cell lung cancer ("SCLC"). Approximately 10-15% of all lung cancer cases are small cell lung cancer, resulting in an estimated 24,000 – 36,000 new cases of SCLC in the U.S. in 2022. ADCT-701 (DLK-1) is composed of a humanized monoclonal antibody (HuBa-1-3D) directed against human DLK-1 and conjugated through a cathepsin-cleavable linker to SG3199, a PBD dimer cytotoxin. DLK-1 is widely expressed during fetal development, but its expression is highly restricted in adults. However, DKL-1 is expressed in adults in several tumors, such as neuroblastoma, hepatocellular carcinoma ("HCC") and SCLC. We have entered into a collaboration with NCI at the National Institutes of Health for the continued development of ADCT-701 (DLK-1). We are completing preclinical studies to support an IND filing by the NCI.

We evaluated the *in vivo* efficacy of ADCT-701 (DLK-1) in the LI1097 patient-derived hepatocellular carcinoma xenograft model, in which mice received a single dose of (i) ADCT-701 (DLK-1) at 0.1 mg/kg, (ii) ADCT-701 (DLK-1) at 0.3 mg/kg, (iii) ADCT-701 (DLK-1) at 1 mg/kg, (iv) a non-targeted ADC at 1 mg/kg, or (v) a vehicle control. We observed that ADCT-701 (DLK-1) exhibited potent, specific and dose-dependent anti-tumor activity, while the non-targeted ADC and the vehicle control did not exhibit any significant anti-tumor activity. The table below summarizes the response data and the figure below shows the mean tumor volume in the LI1097 patient-derived xenograft model.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **n (%)** | **n (%)** | **n (%)** | **n (%)** | **n (%)** |
|<br>**Response** | **ADCT-701**<br>**0.1 mg/kg**<br>**(n=8)** | **ADCT-701**<br>**0.3 mg/kg**<br>**(n=8)** | **ADCT-701**<br>**1 mg/kg**<br>**(n=8)** | **Non-Targeted ADC**<br>**1 mg/kg**<br>**(n=8)** | **Vehicle Control**<br>**(n=8)** |
| Complete response | 0 (0.0) | 0 (0.0) | 2 (37.5) | 0 (0.0) | 0 (0.0) |
| Partial response | 0 (0.0) | 0 (0.0) | 3 (62.5) | 0 (0.0) | 0 (0.0) |
| Tumor-free survivor | 0 (0.0) | 0 (0.0) | 0 (0.0) | 0 (0.0) | 0 (0.0) |

---

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Response data obtained in the LI1097 patient-derived xenograft model. Partial response is recorded when the tumor volume was 50% or less of its Day 1 volume for three consecutive measurements during the course of the study, and equal to or greater than 13.5 mm<sup>3</sup> for one or more of these three measurements. Complete response is recorded when the tumor volume was <13.5 mm<sup>3</sup> for three consecutive measurements during the course of the study. Tumor-free survivor is recorded when a complete response is recorded at the termination of a study.

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![adc-20221231_g29.jpg](adc-20221231_g29.jpg)

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The anti-tumor activity of ADCT-701 in the LI1097 patient-derived xenograft model. Data represent the mean tumor volume ± SEM for each group of mice.

**Our Research Pipeline**

Our preclinical research pipeline consists of multiple programs targeting a variety of solid tumor targets for which we are selecting ADCs candidates based on PBDs, exatecans or a proprietary DNA alkylating cytotoxic which we can access under a license agreement.

We are also testing complementary technologies to expand the therapeutic index of our product candidates. For example, we are investigating novel conjugation and linker technologies to maximize the benefits of the PBD dimer technology. As an example, we benchmarked multiple site-specific conjugation technologies and identified GlycoConnect<sup>TM</sup>/Hydraspace technology (licensed from Synaffix) to provide the enhanced therapeutic index for ADCT-601 (AXL), ADCT-701 (DLK-1) and ADCT-212 (PSMA) that we observed in preclinical models. We are also exploring the use of a novel Silinol-based linker technology that we licensed from a third party. We continue to explore alternative conjugation and linker technologies as well as novel toxin strategies as they become available and determine whether there is any merit in utilizing them in product candidates.

Moreover, we are exploring the development of ADCs that use tumor-conditional binding approaches, such as antibody masking, which depends on the unique proteolytic environment in the tumor. These tumor-specific proteases can be used to remove masking peptides engineered on a masked antibody. Such masked antibodies will not bind to healthy tissue expressing the target and will not bind to soluble target shed into circulation (as there is no expression of the tumor specific proteases and the mask prevents binding to target). However, once in the tumor microenvironment, tumor-specific proteases release the masking peptide from the antibody and it will bind to the target on the tumor cell membrane, allowing internalization of the ADC into the tumor. We are also exploring ADCs based on conditionally binding antibodies, which bind stronger to target in the more acidic local tumor environment and less strong to target expressed on healthy tissue which has a neutral pH.

**Chemistry, Manufacturing and Controls**

We believe that the manufacture of ADCs requires considerable expertise, know-how and resources. Since our inception, we have made significant financial and human resource investments to become a leader in the industry for ADC chemistry, manufacture and control processes. Currently, we have a 47-person, in-house team, based in the San Francisco Bay Area, overseeing our CMC operations for each of our product candidates.

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We do not own or operate, and do not plan to own or operate, manufacturing infrastructure for the manufacture of clinical supply of our product candidates or commercial product. Instead, we contract with third-party cGMP-compliant CMOs that have the facilities and capabilities to manufacture on our behalf the intermediate components and the final product candidates for use in clinical trials and commercial supply. We believe there will be sufficient commercial-grade drug product, ZYNLONTA, in stock for the foreseeable future and we and our CMOs will be able to conduct additional manufacturing at the scheduled times. Our in-house team oversees all aspects of the CMO manufacturing process, including defining the scope of work and monitoring all aspects of the manufacturing process to ensure that they meet our specifications and quality requirements, including conducting routine site visits and audits. We also contract with external specialist quality control and stability-testing organizations to monitor the quality of the materials manufactured by the CMOs.

**Intellectual Property**

Our success depends in part on our ability to obtain and maintain proprietary protection for our technology, programs and know-how related to our business, defend and enforce our intellectual property rights, in particular, our patent rights, preserve the confidentiality of our trade secrets, and operate without infringing valid and enforceable intellectual property rights of others. We seek to protect our proprietary position by, among other things, exclusively licensing and filing U.S. and foreign patent applications related to our technology, existing and planned programs and improvements that are important to the development of our business, where patent protection is available.

We also rely on trade secrets, know-how, continuing technological innovation and confidential information to develop and maintain our proprietary position and protect aspects of our business that are not amenable to, or that we do not consider appropriate for, patent protection. We seek to protect our proprietary technology and processes, in part, by confidentiality agreements with our employees, consultants, scientific advisors, and contractors. We also seek to preserve the integrity and confidentiality of our data and trade secrets by maintaining physical security of our premises and physical and electronic security of our information technology systems.

Notwithstanding these efforts, we cannot be sure that patents will be granted with respect to any patent applications we have licensed or filed or may license or file in the future, and we cannot be sure that any patents we have licensed or patents that may be licensed or granted to us in the future will not be challenged, invalidated, or circumvented or that such patents will be commercially useful in protecting our technology. Moreover, trade secrets can be difficult to protect. While we have confidence in the measures we take to protect and preserve our trade secrets, such measures can be breached, and we may not have adequate remedies for any such breach. In addition, our trade secrets may otherwise become known or be independently discovered by competitors.

In addition, we or our licensors may be subject to claims that former employees, collaborators, or other third parties have an interest in our owned or in-licensed patents or other intellectual property as an inventor or co-inventor. If we are unable to obtain an exclusive license to any such third party co-owners' interest in such patent applications, such co-owners may be able to license their rights to other third parties, including our competitors. In addition, we may need the cooperation of any such co-owners to enforce any patents that issue from such patent applications against third parties, and such cooperation may not be provided to us. For more information regarding the risks related to intellectual property, please see "Item 3. Key Information—D. Risk Factors—Risks Related to Intellectual Property."

***Patent Portfolio***

The term of individual utility patents depends upon the countries in which they are granted. In most countries, including the United States, the utility patent term is generally 20 years from the earliest claimed filing date of a non-provisional utility patent application in the applicable country. United States provisional utility patent applications are not eligible to become issued patents until, among other things, non-provisional patent applications are filed within 12 months of the filing date of the applicable provisional patent applications and the failure to file such non-provisional patent applications within such timeline could cause us to lose the ability to obtain patent protection for the inventions disclosed in the associated provisional patent applications. In the United States, a patent's term may, in certain cases, be lengthened by patent term adjustment, which compensates a patentee for administrative delays by the USPTO in examining and granting a patent, or may be shortened if a patent is terminally disclaimed over a commonly owned patent having an earlier expiration date. In certain circumstances, U.S. patents can also be eligible for patent term extension; for more information, see "Item 4. Information on the Company—B. Business Overview—Government Regulation—Regulatory Approval in the United States—U.S. Patent Term Restoration and Marketing Exclusivity." The expiration dates referred to below are without regard to potential patent term adjustment or extension that may be available to us.

In general, our licensed, owned or co-owned patents relate to our ADC products, the underlying antibodies, the PBD-based warhead, the linker used to connect such PBD warheads to the antibodies to form an ADC, modifications of the antibodies to enhance efficacy, and the methods to formulate, co-formulate, use and administer or co-administer such ADCs. We typically file patent applications in the U.S. and other key foreign countries. We have over 400 patents issued in the U.S. and other countries with expirations ranging from 2023 to 2043 as well as numerous pending patent applications in the U.S. and other countries.

*"PBD Warhead," "PBD Warhead with Linker" Platform Patent Protection*

As of December 31, 2022, with respect to the PBD-based warhead and ADC technology we use to develop our product candidates, we have exclusively licensed from MedImmune for particular target molecules, 36 patent families directed to different aspects of the chemistry of

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the PBD molecules and methods of using the molecules in the treatment of proliferative diseases. These families include approximately 38 issued U.S. utility patents. The issued utility patents, and any utility patents granted from the pending applications in these families, are expected to expire between 2023 and 2038.

*Product-Specific Patent Protection*

As of December 31, 2022, we co-own with MedImmune, and have exclusive rights to, approximately 40 patent families directed to ADCs with PBD warheads and targeting moieties that bind to specific target molecules, combinations of these ADCs with other therapeutic molecules and therapeutic uses of these ADCs. These families include approximately 14 issued U.S. utility patents. The issued utility patents, and any utility patents granted from the pending applications in these families, are expected to expire between 2033 and 2042. Further details in relation to particular marketed products are provided below.

*ZYNLONTA*

The antibody for ZYNLONTA is in the public domain.

Patents more specifically directed to the ZYNLONTA ADC are co-owned by us and MedImmune, with us having the exclusive right to exploit the relevant patents during the term of our license and collaboration agreement with MedImmune. As of December 31, 2022, there are six such patent families directed to the ADC product, methods of using the ADC as a single agent or in combination with other named molecules in the treatment of proliferative diseases, and dosing regimens. The issued utility patents, and any utility patents granted from the pending applications in these families, are expected to expire between 2033 and 2042.

For more information on the license and collaboration agreement with MedImmune, see "Item 10. Additional Information—C. Material Contracts—MedImmune License and Collaboration Agreement."

**Competition**

The biotechnology industry, and the oncology subsector, are characterized by rapid evolution of technologies, fierce competition and strong defense of intellectual property. While we believe that our technology, intellectual property, know-how, scientific expertise and leadership team provide us with certain competitive advantages, we face potential competition from many sources, including major pharmaceutical and biotechnology companies, academic institutions and public and private research organizations. Many competitors and potential competitors have substantially greater scientific, research and product development capabilities, as well as greater financial, marketing and human resources than we do.

Many companies are active in the oncology market and are developing or marketing products for the specific therapeutic markets that we target, including both antibody drug conjugate ("ADC") and non-antibody drug conjugate therapies. Similarly, we also face competition from other companies and institutions that continue to invest in innovation in the ADC field including new payload classes, new conjugation approaches and new targeting moieties. Specifically, we are aware of multiple companies with ADC technologies that may be competitive with our product candidates, including, but not limited to, AbbVie, Inc., Daiichi Sankyo Company, GlaxoSmithKline plc, Gilead Sciences, Inc., Mersana Therapeutics Inc., Sanofi S.A., Roche Holding AG and Seagen, Inc. There are hundreds of ADCs in development, the vast majority of which were being developed for the treatment of cancer.

In the relapsed or refractory DLBCL setting, for which we have developed ZYNLONTA, current third-line treatment options include CAR-T, allogeneic stem cell transplant, polatuzumab in combination with bendamustine and a rituximab product, selinexor, tafasitamab in combination with lenalidomide and chemotherapy using small molecules. If Zynlonta is approved for use as a second-line treatment for DLBCL patients, we will continue to compete with CAR-T, rituximab in combination with chemotherapies, polatuzumab in combination with bendamustine and a rituximab product, and tafasitamab in combination with lenalidomide. If Zynlonta is approved for use in the frontline for frail or unfit DLBCL patients we will compete with a rituximab product in combination with mini-CHOP. In addition, we expect potential new competitors, including bispecific antibodies, to enter the market as potential treatment options for such patients in the future.

Any products and product candidates that we successfully develop and commercialize may compete directly with approved therapies and any new therapies that may be approved in the future. Competition will be based on their safety and effectiveness, the timing and scope of marketing approvals, the availability and cost of supply, marketing and sales capabilities, reimbursement coverage, price levels and discounts offered, patent position and other factors. Our competitors may succeed in developing competing products before we do, obtaining marketing approval for products and gaining acceptance for such products in the same markets that we are targeting.

**Government Regulation**

Government authorities in the United States at the federal, state and local level and in other countries and jurisdictions, including the European Union, extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval, labeling,

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packaging, storage, record-keeping, promotion, advertising, distribution, post-approval monitoring and reporting, marketing and export and import of drug and biological products, such as our investigational medicines and any future investigational medicines. Generally, before a new drug or biologic can be marketed, considerable data demonstrating its quality, safety and efficacy must be obtained, organized into a format specific for each regulatory authority, submitted for review and approved by the regulatory authority.

***Regulatory Approval in the United States***

In the United States, pharmaceutical products are subject to extensive regulation by the FDA. The FDCA, and other federal and state statutes and regulations, govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion and marketing, distribution, post-approval monitoring and reporting, sampling, and import and export of pharmaceutical products. Biological products used for the prevention, treatment or cure of a disease or condition of a human being are subject to regulation under the FDCA, except the section of the FDCA that governs the approval of new drug applications ("NDAs") does not apply to the approval of biological products. Biological products, such as our ADC product candidates, are approved for marketing under provisions of the Public Health Service Act (the "PHSA"), via a BLA. However, the application process and requirements for approval of BLAs are very similar to those for NDAs, and biologics are associated with similar approval risks and costs as drugs. Failure to comply with applicable U.S. requirements may subject a company to a variety of administrative or judicial sanctions, such as clinical hold, FDA refusal to approve pending NDAs or BLAs, warning or untitled letters, product recalls, product seizures, total or partial suspension of production or distribution, injunctions, fines, civil penalties, and criminal prosecution.

Our investigational medicines and any future investigational medicines must be approved by the FDA pursuant to a BLA before they may be legally marketed in the United States. The process generally involves the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• completion of extensive preclinical laboratory and animal studies in accordance with applicable regulations, including studies conducted in accordance with GLP requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• submission to the FDA of an IND, which must become effective before human clinical trials may begin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approval by an IRB or independent ethics committee at each clinical trial site before each clinical trial may be commenced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance of adequate and well-controlled human clinical trials in accordance with applicable IND regulations, GCP requirements and other clinical trial-related regulations to establish the safety and efficacy of the investigational product for each proposed indication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• submission to the FDA of a BLA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a determination by the FDA within 60 days of its receipt of a BLA to file the submission for review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfactory completion of one or more FDA pre-approval inspections of the manufacturing facility or facilities where the biologic, or components thereof, will be produced to assess compliance with cGMP requirements to assure that the facilities, methods and controls are adequate to preserve the biologic's identity, strength, quality and purity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfactory completion of any potential FDA audits of the clinical trial sites that generated the data in support of the BLA to assure compliance with GCPs and integrity of the clinical data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• payment of any user fees for FDA review of the BLA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FDA review and approval of the BLA, including consideration of the views of any FDA advisory committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with any post-approval requirements, including REMS, where applicable, and post-approval studies required by the FDA as a condition of approval.

The preclinical and clinical testing and approval process requires substantial time, effort and financial resources, and we cannot be certain that any approvals for our product candidates will be granted on a timely basis, or at all.

*Preclinical Studies*

Before testing any biological product candidates in humans, the product candidate must undergo rigorous preclinical testing. Preclinical studies include laboratory evaluation of product chemistry and formulation, as well as *in vitro* and animal studies to assess the potential for adverse events and in some cases to establish a rationale for therapeutic use. The conduct of preclinical studies is subject to federal regulations and requirements, including GLP regulations for safety/toxicology studies. An IND sponsor must submit the results of the preclinical tests,

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together with manufacturing information, analytical data, any available clinical data or literature and plans for clinical studies, among other things, to the FDA as part of an IND. An IND is a request for authorization from the FDA to administer an investigational product to humans and must become effective before human clinical trials may begin. Some long-term preclinical testing may continue after the IND is submitted. An IND automatically becomes effective 30 days after receipt by the FDA, unless before that time the FDA raises concerns or questions related to one or more proposed clinical trials and places the trial on clinical hold. In such a case, the IND sponsor and the FDA must resolve any outstanding concerns before the clinical trial can begin. As a result, submission of an IND may not result in the FDA allowing clinical trials to commence.

*Clinical Trials*

The clinical stage of development involves the administration of the investigational product to healthy volunteers or patients under the supervision of qualified investigators, generally physicians not employed by or under the trial sponsor's control. Clinical trials must be conducted: (i) in compliance with federal regulations; (ii) in compliance with GCPs, an international standard meant to protect the rights and health of patients and to define the roles of clinical trial sponsors, administrators, and monitors; as well as (iii) under protocols detailing, among other things, the objectives of the trial, the parameters to be used in monitoring safety, and the effectiveness criteria to be evaluated in the trial. Each protocol involving testing on U.S. patients and subsequent protocol amendments must be submitted to the FDA as part of the IND. Furthermore, each clinical trial must be reviewed and approved by an IRB for each institution at which the clinical trial will be conducted to ensure that the risks to individuals participating in the clinical trials are minimized and are reasonable in relation to anticipated benefits. The IRB also approves the informed consent form that must be provided to each clinical trial subject or his or her legal representative and must monitor the clinical trial until completed.

There also are requirements governing the reporting of ongoing clinical trials and completed clinical trial results to public registries. Information about certain clinical trials, including clinical trial results, must be submitted within specific timeframes for publication on the www.clinicaltrials.gov website. Information related to the product, patient population, phase of investigation, clinical trial sites and investigators, and other aspects of the clinical trial is then made public as part of the registration. Sponsors are also obligated to discuss the results of their clinical trials after completion. Disclosure of the results of these clinical trials can be delayed in certain circumstances for up to two years after the date of completion of the trial. Competitors may use this publicly available information to gain knowledge regarding the progress of development programs.

A sponsor who wishes to conduct a clinical trial outside of the United States may, but need not, obtain FDA authorization to conduct the clinical trial under an IND. If a foreign clinical trial is not conducted under an IND, the sponsor may submit data from the clinical trial to the FDA in support of a BLA. The FDA will accept a well-designed and well-conducted foreign clinical trial not conducted under an IND if the clinical trial was conducted in accordance with GCP requirements, and the FDA is able to validate the data through an onsite inspection if deemed necessary.

Clinical trials are generally conducted in three sequential phases, known as Phase 1, Phase 2 and Phase 3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Phase 1 clinical trials generally involve a small number of healthy volunteers or disease-affected patients who are initially exposed to a single dose and then multiple doses of the product candidate. The primary purpose of these clinical trials is to assess the metabolism, pharmacokinetics, pharmacologic action, side effect tolerability, safety of the product candidate, and, if possible, early evidence of effectiveness. Phase 1 clinical trials may be designated as Phase 1a, which may involve dose escalation to determine the maximum tolerated dose, or Phase 1b, which may involve dose expansion at one or more dose levels to determine the recommended dose level for Phase 2 clinical trials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Phase 2 clinical trials generally involve studies in disease-affected patients to evaluate proof of concept and/or determine the dosing regimen(s) for subsequent investigations. At the same time, safety and further pharmacokinetic and pharmacodynamic information is collected, possible adverse effects and safety risks are identified, and a preliminary evaluation of efficacy is conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Phase 3 clinical trials generally involve a large number of patients at multiple sites and are designed to provide the data necessary to demonstrate the effectiveness of the product for its intended use, its safety in use and to establish the overall benefit/risk relationship of the product, and provide an adequate basis for product labeling. In most cases, the FDA requires two adequate and well-controlled Phase 3 clinical trials to demonstrate the efficacy of the biologic.

These Phases may overlap or be combined. For example, a Phase 1/2 clinical trial may contain both a dose-escalation stage and a dose-expansion stage, the latter of which may confirm tolerability at the recommended dose for expansion in future clinical trials (as in traditional Phase 1 clinical trials) and provide insight into the anti-tumor effects of the investigational therapy in selected subpopulation(s).

Typically, during the development of oncology therapies, all subjects enrolled in Phase 1 clinical trials are disease-affected patients and, as a result, considerably more information on clinical activity may be collected during such trials than during Phase 1 clinical trials for non-oncology therapies. A single Phase 3 or Phase 2 trial may be sufficient in rare instances, including (1) where the trial is a large, multicenter trial

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demonstrating internal consistency and a statistically very persuasive finding of a clinically meaningful effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious outcome and confirmation of the result in a second trial would be practically or ethically impossible or (2) when in conjunction with other confirmatory evidence. Approval on the basis of a single trial may be subject to the requirement of additional post-approval studies.

Phase 1, Phase 2, Phase 3 and other types of clinical trials may not be completed successfully within any specified period, if at all. The FDA, the IRB, or the sponsor may suspend or terminate a clinical trial at any time on various grounds, including non-compliance with regulatory requirements or a finding that the patients are being exposed to an unacceptable health risk. Similarly, an IRB can suspend or terminate approval of a clinical trial at its institution if the clinical trial is not being conducted in accordance with the IRB's requirements or if the drug or biologic has been associated with unexpected serious harm to patients. Additionally, some clinical trials are overseen by an independent group of qualified experts organized by the clinical trial sponsor, known as a data safety monitoring board or committee. This group provides authorization for whether a trial may move forward at designated checkpoints based on access to certain data from the trial.

Concurrent with clinical trials, companies usually complete additional animal studies and also must develop additional information about the chemistry and physical characteristics of the drug or biologic as well as finalize a process for manufacturing the product in commercial quantities in accordance with cGMP requirements. The manufacturing process must be capable of consistently producing quality batches of the product and, among other things, companies must develop methods for testing the identity, strength, quality, potency, and purity of the final product. Additionally, appropriate packaging must be selected and tested and stability studies must be conducted to demonstrate that the investigational medicines do not undergo unacceptable deterioration over their shelf life.

*FDA Review Process*

Following completion of the clinical trials, the results of preclinical studies and clinical trials are submitted to the FDA as part of a BLA, along with proposed labeling, chemistry and manufacturing information to ensure product quality and other relevant data. To support marketing approval, the data submitted must be sufficient in quality and quantity to establish the safety and efficacy of the investigational product to the satisfaction of the FDA. FDA approval of a BLA must be obtained before a biologic or drug may be marketed in the United States.

The cost of preparing and submitting a BLA is substantial. Under the PDUFA, each BLA must be accompanied by a substantial user fee. The FDA adjusts the PDUFA user fees on an annual basis. Fee waivers or reductions are available in certain circumstances, including a waiver of the application fee for the first application filed by a small business. Additionally, no user fees are assessed on BLAs for products designated as orphan drugs, unless the product also includes a non-orphan indication. The applicant under an approved BLA is also subject to an annual program fee.

The FDA reviews all submitted BLAs before it files them and may request additional information. The FDA must make a decision on filing a BLA within 60 days of receipt, and such decision could include a refusal to file by the FDA. Once the submission is filed, the FDA begins an in-depth review of the BLA. Under the goals and policies agreed to by the FDA under PDUFA, the FDA has 10 months, from the filing date, in which to complete its initial review of an original BLA for a new molecular entity and respond to the applicant, and six months from the filing date of an original BLA designated for priority review. The review process for both standard and priority review may be extended by the FDA for three additional months to consider certain late-submitted information, or information intended to clarify information already provided in the submission. The FDA does not always meet its PDUFA goal dates for standard and priority BLAs, and the review process can be extended by FDA requests for additional information or clarification.

Before approving a BLA, the FDA will conduct a pre-approval inspection of the manufacturing facilities for the new product to determine whether they comply with cGMP requirements. The FDA will not approve the product unless it determines that the manufacturing processes and facilities are in compliance with cGMP requirements and adequate to assure consistent production of the product within required specifications.

The FDA also may audit data from clinical trials to ensure compliance with GCP requirements and the integrity of the data supporting safety and efficacy. Additionally, the FDA may refer applications for novel products or products that present difficult questions of safety or efficacy to an advisory committee, typically a panel that includes clinicians and other experts, for review, evaluation and a recommendation as to whether the application should be approved and under what conditions, if any. The FDA is not bound by recommendations of an advisory committee, but it generally follows such recommendations when making decisions on approval. The FDA likely will reanalyze the clinical trial data, which could result in extensive discussions between the FDA and the applicant during the review process.

After the FDA evaluates a BLA, it will issue either an approval letter or a Complete Response Letter. An approval letter authorizes commercial marketing of the biologic with specific prescribing information for specific indications. A Complete Response Letter indicates that the review cycle of the application is complete, and the application will not be approved in its present form. A Complete Response Letter generally outlines the deficiencies in the BLA and may require additional clinical data, additional pivotal clinical trial(s), and/or other significant and time-consuming requirements related to clinical trials, preclinical studies or manufacturing in order for FDA to reconsider the application. If a Complete Response Letter is issued, the applicant may either resubmit the BLA, addressing all of the deficiencies identified in the letter, or withdraw the application or request an opportunity for a hearing. The FDA has committed to reviewing such resubmissions in two

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or six months, depending on the type of information included. Even if such data and information are submitted, the FDA may decide that the BLA does not satisfy the criteria for approval.

As a condition of BLA approval, the FDA may require a risk evaluation and mitigation strategy ("REMS") to help ensure that the benefits of the biologic outweigh the potential risks to patients. A REMS can include medication guides, communication plans for healthcare professionals, and elements to assure a product's safe use ("ETASU"). An ETASU can include, but is not limited to, special training or certification for prescribing or dispensing the product, dispensing the product only under certain circumstances, special monitoring, and the use of patient-specific registries. The requirement for a REMS can materially affect the potential market and profitability of the product. Moreover, the FDA may require substantial post-approval testing and surveillance to monitor the product's safety or efficacy.

*Orphan Drug Designation*

Under the Orphan Drug Act, the FDA may grant orphan designation to a drug or biological product intended to treat a rare disease or condition, which is generally a disease or condition that affects fewer than 200,000 individuals in the United States, or more than 200,000 individuals in the United States but for which there is no reasonable expectation that the cost of developing and making the product for this type of disease or condition will be recovered from sales of the product in the United States.

Orphan drug designation must be requested before submitting a BLA. After the FDA grants orphan drug designation, the identity of the therapeutic agent and its potential orphan use are disclosed publicly by the FDA. Orphan drug designation on its own does not convey any advantage in or shorten the duration of the regulatory review and approval process.

If a product that has orphan designation subsequently receives the first FDA approval for the disease or condition for which it has such designation, the product is entitled to orphan drug exclusivity, which means that the FDA may not approve any other applications to market the same product for the same indication for seven years from the date of such approval, except in limited circumstances, such as a showing of clinical superiority to the product with orphan exclusivity by means of greater effectiveness, greater safety, or providing a major contribution to patient care, or in instances of drug supply issues. Competitors, however, may receive approval of either a different product for the same indication or the same product for a different indication. In the latter case, because healthcare professionals are free to prescribe products for off-label uses, the competitor's product could be used for the orphan indication despite another product's orphan exclusivity.

FDA's determination of whether two ADCs are the same product for purposes of orphan drug exclusivity is based on a determination of sameness of the monoclonal antibody element and the functional element of the conjugated molecule. Two ADCs are deemed to be the same product if the complementarity determining region sequences of the antibody and the functional element of the conjugated molecule are the same. A difference in either of those two elements can result in a determination that the molecules are different.

*Expedited Development and Review Programs*

The FDA is authorized to designate certain products for expedited review if they are intended to address an unmet medical need in the treatment of a serious or life-threatening disease or condition.

Fast track designation may be granted for products that are intended to treat a serious or life-threatening disease or condition for which there is no effective treatment and preclinical or clinical data demonstrate the potential to address unmet medical needs for the condition. Fast track designation applies to both the product and the specific indication for which it is being studied. The sponsor of a new biologic candidate can request the FDA to designate the candidate for a specific indication for fast track status concurrent with, or after, the submission of the IND for the candidate. The FDA must determine if the biologic candidate qualifies for fast track designation within 60 days of receipt of the sponsor's request. For fast track products, sponsors may have greater interactions with the FDA and the FDA may initiate review of sections of a fast track product's BLA before the application is complete. This "rolling review" is available if the FDA determines, after preliminary evaluation of clinical data submitted by the sponsor, that a fast track product may be effective. The sponsor must also provide, and the FDA must approve, a schedule for the submission of the remaining information and the sponsor must pay applicable user fees. Any product submitted to the FDA for marketing, including under a fast track program, may be eligible for other types of FDA programs intended to expedite development and review, such as priority review and accelerated approval.

Breakthrough therapy designation may be granted for products that are intended, alone or in combination with one or more other products, to treat a serious or life-threatening condition and preliminary clinical evidence indicates that the product may demonstrate substantial improvement over currently approved therapies on one or more clinically significant endpoints. Under the breakthrough therapy program, the sponsor of a new biologic candidate may request that the FDA designate the candidate for a specific indication as a breakthrough therapy concurrent with, or after, the submission of the IND for the biologic candidate. The FDA must determine if the biological product qualifies for breakthrough therapy designation within 60 days of receipt of the sponsor's request. The FDA may take certain actions with respect to breakthrough therapies, including holding meetings with the sponsor throughout the development process, providing timely advice to the product sponsor regarding development and approval, involving more senior staff in the review process, assigning a cross-disciplinary project lead for the review team and taking other steps to design the clinical studies in an efficient manner.

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Priority review may be granted for products that are intended to treat a serious or life-threatening condition and, if approved, would provide a significant improvement in safety and effectiveness compared to available therapies. The FDA will attempt to direct additional resources to the evaluation of an application designated for priority review in an effort to facilitate the review.

Accelerated approval may be granted for products that are intended to treat a serious or life-threatening condition and that generally provide a meaningful therapeutic advantage to patients over existing treatments. A product eligible for accelerated approval may be approved on the basis of either a surrogate endpoint that is reasonably likely to predict clinical benefit, or on a clinical endpoint that can be measured earlier than irreversible morbidity or mortality, that is reasonably likely to predict an effect on irreversible morbidity or mortality or other clinical benefit, taking into account the severity, rarity or prevalence of the condition and the availability or lack of alternative treatments. In clinical trials, a surrogate endpoint is a measurement of laboratory or clinical signs of a disease or condition that substitutes for a direct measurement of how a patient feels, functions, or survives. The accelerated approval pathway is most often used in settings in which the course of a disease is long and an extended period of time is required to measure the intended clinical benefit of a product, even if the effect on the surrogate or intermediate clinical endpoint occurs rapidly. Thus, accelerated approval has been used extensively in the development and approval of products for treatment of a variety of cancers in which the goal of therapy is generally to improve survival or decrease morbidity and the duration of the typical disease course requires lengthy and sometimes large studies to demonstrate a clinical or survival benefit. The accelerated approval pathway is contingent on a sponsor's agreement to conduct additional post-approval confirmatory studies to verify and describe the product's clinical benefit. These confirmatory trials must be completed with due diligence and, in some cases, the FDA may require that the trial be designed, initiated, and/or fully enrolled prior to approval. Failure to conduct required post-approval studies, or to confirm a clinical benefit during post-marketing studies, would allow the FDA to withdraw the product from the market on an expedited basis. All promotional materials for product candidates approved under accelerated regulations are subject to prior review by the FDA. Pursuant to the recently-enacted Food and Drug Omnibus Reform Act ("FDORA"), FDA is authorized to require a post-approval study to be underway prior to approval or within a specified time period following approval. FDORA also requires FDA to specify conditions of any required post-approval study, which may include milestones such as a target date of study completion and requires sponsors to submit progress reports for required post-approval studies and any conditions required by FDA not later than 180 days following approval and not less frequently than every 180 days thereafter until completion or termination of the study. FDORA enables FDA to initiate criminal prosecutions for the failure to conduct with due diligence a required post-approval study, including a failure to meet any required conditions specified by FDA or to submit timely reports.

Even if a product qualifies for one or more of these programs, the FDA may later decide that the product no longer meets the conditions for qualification or the time period for FDA review or approval may not be shortened. Furthermore, fast track designation, breakthrough therapy designation, priority review and accelerated approval do not change the standards for approval, but may expedite the development or approval process.

*Additional Controls for Biologics*

To help reduce the increased risk of the introduction of adventitious agents, the PHSA emphasizes the importance of manufacturing controls for products whose attributes cannot be precisely defined. The PHSA also provides authority to the FDA to immediately suspend licenses in situations where there exists a danger to public health, to prepare or procure products in the event of shortages and critical public health needs, and to authorize the creation and enforcement of regulations to prevent the introduction or spread of communicable diseases in the United States and between states.

After a BLA is approved, the product may also be subject to official lot release as a condition of approval. As part of the manufacturing process, the manufacturer is required to perform certain tests on each lot of the product before it is released for distribution. If the product is subject to official release by the FDA, the manufacturer submits samples of each lot of product to the FDA together with a release protocol showing a summary of the history of manufacture of the lot and the results of all of the manufacturer's tests performed on the lot. The FDA may also perform certain confirmatory tests on lots of some products, such as viral vaccines, before releasing the lots for distribution by the manufacturer. In addition, the FDA conducts laboratory research related to the regulatory standards on the safety, purity, potency, and effectiveness of biological products. As with drugs, after approval of biologics, manufacturers must address any safety issues that arise, are subject to recalls or a halt in manufacturing, and are subject to periodic inspection after approval.

*Pediatric Information*

Under the Pediatric Research Equity Act, ("PREA), BLAs or supplements to BLAs must contain data to assess the safety and effectiveness of the biological product for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which the biological product is safe and effective. The FDA may grant full or partial waivers, or deferrals, for submission of data. Unless otherwise required by regulation, PREA generally does not apply to any biological product for an indication for which orphan designation has been granted. However, PREA applies to BLAs for orphan-designated biologics if the biologic is a molecularly targeted cancer product intended for the treatment of an adult cancer and is directed at a molecular target that FDA has determined is substantially relevant to the growth or progression of a pediatric cancer.

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The Best Pharmaceuticals for Children Act (the "BPCA") provides a six-month extension of non-patent exclusivity for a biologic if certain conditions are met. Conditions for exclusivity include the FDA's determination that information relating to the use of a new biologic in the pediatric population may produce health benefits in that population, FDA making a written request for pediatric studies, and the applicant agreeing to perform, and reporting on, the requested studies within the statutory timeframe. Applications under the BPCA are treated as priority applications, with all of the benefits that designation confers.

*Post-Approval Requirements*

Once a BLA is approved, a product will be subject to certain post-approval requirements. For instance, the FDA closely regulates the post-approval marketing and promotion of biologics, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored scientific and educational activities and promotional activities involving the Internet. Biologics may be marketed only for the approved indications and in a manner consistent with the provisions of the approved labeling.

Adverse event reporting and submission of periodic safety summary reports is required following FDA approval of a BLA. The FDA also may require post-marketing testing, known as Phase 4 testing, REMS, and surveillance to monitor the effects of an approved product, or the FDA may place conditions on an approval that could restrict the distribution or use of the product. In addition, quality control, biological product manufacture, packaging, and labeling procedures must continue to conform to cGMPs after approval. Biologic manufacturers and certain of their subcontractors are required to register their establishments with the FDA and certain state agencies. Registration with the FDA subjects entities to periodic unannounced inspections by the FDA, during which the agency inspects a biologic product's manufacturing facilities to assess compliance with cGMPs. Accordingly, manufacturers must continue to expend time, money, and effort in the areas of production and quality-control to maintain compliance with cGMPs. Regulatory authorities may withdraw product approvals or request product recalls if a company fails to comply with required regulatory standards, if it encounters problems following initial marketing, or if previously unrecognized problems are subsequently discovered.

Once an approval is granted, the FDA may withdraw the approval if compliance with regulatory requirements and standards is not maintained or if problems occur after the product reaches the market. Later discovery of previously unknown problems with a product, including adverse events of unanticipated severity or frequency, or with manufacturing processes or failure to comply with regulatory requirements, may result in revisions to the approved labeling to add new safety information, imposition of post-market studies or clinical studies to assess new safety risks or imposition of distribution or other restrictions under a REMS program. Other potential consequences include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the marketing or manufacturing of the product, suspension of the approval, complete withdrawal of the product from the market or product recalls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fines, warning or other enforcement-related letters or holds on post-approval clinical studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• refusal of the FDA to approve pending BLAs or supplements to approved BLAs, or suspension or revocation of product license approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product seizure or detention, or refusal to permit the import or export of products; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• injunctions or the imposition of civil or criminal penalties.

*U.S. Patent Term Restoration and Marketing Exclusivity*

Depending upon the timing, duration, and specifics of FDA approval of our product candidates, some of our U.S. patents may be eligible for limited patent term extension under the Hatch-Waxman Amendments. The Hatch Waxman Amendments permit a patent term extension of up to five years as compensation for patent term lost during the FDA regulatory review process. Patent term extension, however, cannot extend the remaining term of a patent beyond a total of 14 years from the product's approval date. The patent term extension period is generally one half the time between the effective date of an IND and the submission date of a BLA, plus the time between the submission date of a BLA and the approval of that application, except that the review period is reduced by any time during which the applicant failed to exercise due diligence. Only one patent applicable to an approved drug is eligible for such an extension, only those claims covering the approved drug, a method for using it, or a method for manufacturing it may be extended and the application for the extension must be submitted prior to the expiration of the patent. The USPTO, in consultation with the FDA, reviews and approves the application for any patent term extension or restoration. In the future, we or our licensors may apply for patent term extension for our owned or licensed patents to add patent life beyond their current expiration date, depending on the expected length of the clinical trials and other factors involved in the filing of the relevant BLA. However, an extension might not be granted because of, for example, failing to exercise due diligence during the testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration of relevant patents or otherwise failing to satisfy applicable requirements. Moreover, the applicable time period or the scope of patent protection afforded could be less than requested.

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The BPCIA created an abbreviated approval pathway for biological products shown to be biosimilar to, or interchangeable with, an FDA-licensed reference biological product. Biosimilarity, which requires that the biological product be highly similar to the reference product notwithstanding minor differences in clinically inactive components and that there be no clinically meaningful differences between the biological product and the reference product in terms of safety, purity and potency, can be shown through analytical studies, animal studies and a clinical trial or trials. Interchangeability requires that a biological product be biosimilar to the reference product and that the product can be expected to produce the same clinical results as the reference product in any given patient and, for products administered multiple times to an individual, that the product and the reference product may be alternated or switched after one has been previously administered without increasing safety risks or risks of diminished efficacy relative to exclusive use of the reference biological product without such alternation or switch.

A reference biological product is granted 12 years of data exclusivity from the time of first licensure of the product and the FDA will not accept an application for a biosimilar or interchangeable product based on the reference biological product until four years after the date of first licensure of the reference product. "First licensure" typically means the initial date the particular product at issue was licensed in the United States. Date of first licensure does not include the date of licensure of (and a new period of exclusivity is not available for) a biological product if the licensure is for a supplement for the biological product or for a subsequent application by the same sponsor or manufacturer of the biological product (or licensor, predecessor in interest, or other related entity) for a change (not including a modification to the structure of the biological product) that results in a new indication, route of administration, dosing schedule, dosage form, delivery system, delivery device or strength, or for a modification to the structure of the biological product that does not result in a change in safety, purity or potency.

***Regulatory Approval in the European Union***

The EMA is a decentralized scientific agency of the European Union. It coordinates the evaluation and monitoring of centrally authorized medicinal products. It is responsible for the scientific evaluation of applications for EU marketing authorizations, as well as the development of technical guidance and the provision of scientific advice to sponsors. The EMA decentralizes its scientific assessment of medicines by working through a network of about 4,500 experts throughout the European Union, nominated by the member states. The EMA draws on resources of over 40 National Competent Authorities of European Union member states.

The process regarding approval of medicinal products in the European Union follows roughly the same lines as in the United States and likewise generally involves satisfactorily completing each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preclinical laboratory tests, animal studies and formulation studies all performed in accordance with the applicable EU Good Laboratory Practice regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• submission to the relevant national authorities of a clinical trial application ("CTA") for each trial in humans, which must be approved before the trial may begin in each country where patient enrollment is planned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance of adequate and well-controlled clinical trials to establish the safety and efficacy of the product for each proposed indication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• submission to the relevant competent authorities of a MAA, which includes the data supporting safety and efficacy as well as detailed information on the manufacture and composition of the product in clinical development and proposed labelling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfactory completion of an inspection by the relevant national authorities of the manufacturing facility or facilities, including those of third parties, at which the product is produced to assess compliance with strictly enforced cGMP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential audits of the non-clinical and clinical trial sites that generated the data in support of the MAA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approval by the relevant competent authority of the MAA before any commercial marketing, sale or shipment of the product.

*Preclinical Studies*

Preclinical tests include laboratory evaluations of product chemistry, formulation and stability, as well as studies to evaluate toxicity in animal studies, in order to assess the quality and potential safety and efficacy of the product. The conduct of the preclinical tests and formulation of the compounds for testing must comply with the relevant international, EU and national legislation, regulations and guidelines. The results of the preclinical tests, together with relevant manufacturing information and analytical data, are submitted as part of the CTA.

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*Clinical Trials*

Pursuant to the Clinical Trials Directive 2001/20/EC, as amended (the "Clinical Trials Directive"), a system for the approval of clinical trials in the European Union has been implemented through national legislation of the member states. Under this system, approval must be obtained from the competent national authority of each European Union member state in which a clinical trial is planned to be conducted. To this end, a CTA is submitted, which must be supported by an investigational medicinal product dossier and further supporting information prescribed by the Clinical Trials Directive and other applicable guidance documents including but not being limited to the clinical trial protocol. Furthermore, a clinical trial may only be started after a competent ethics committee has issued a favorable opinion on the clinical trial application in that country.

Directive 2001/20/EC will be replaced by Regulation (EU) No. 536/2014, which became effective on June 16, 2014. The Regulation introduces an authorization procedure based on a single submission via a single EU portal, an assessment procedure leading to a single decision, as well as transparency requirements (the proactive publication of clinical trial data in the EU database). Since October 2016, based on its Policy 0070, the EMA has been publishing clinical data submitted by pharmaceutical companies to support their MAA for human medicines under this centralized procedure.

Manufacturing and import into the EU of investigational medicinal products is subject to the holding of appropriate authorizations and must be carried out in accordance with cGMP.

*Review and Approval*

Authorization to market a product in the European Union member states proceeds under one of four procedures: a centralized authorization procedure, a mutual recognition procedure, a decentralized procedure or a national procedure. Since our products by their virtue of being antibody-based biologics fall under the centralized procedure, only this procedure will be described here.

Certain drugs, including medicinal products developed by means of biotechnological processes, must be approved via the centralized authorization procedure for marketing authorization. A successful application under the centralized authorization procedure results in a marketing authorization from the European Commission, which is automatically valid in all European Union member states. The other European Economic Area member states (namely Norway, Iceland and Liechtenstein) are also obligated to recognize the European Commission decision. The EMA and the European Commission administer the centralized authorization procedure.

Under the centralized authorization procedure, the Committee for Medicinal Products for Human Use (the "CHMP") serves as the scientific committee that renders opinions about the safety, efficacy and quality of human products on behalf of the EMA. The CHMP is composed of experts nominated by each member state's national drug authority, with one of them appointed to act as Rapporteur for the co-ordination of the evaluation with the possible assistance of a further member of the CHMP acting as a Co-Rapporteur. After approval, the Rapporteur(s) continue to monitor the product throughout its life cycle. The CHMP is required to issue an opinion within 210 days of receipt of a valid application, though the clock is stopped if it is necessary to ask the applicant for clarification or further supporting data. The process is complex and involves extensive consultation with the regulatory authorities of member states and a number of experts. Once the procedure is completed, a European Public Assessment Report is produced. If the CHMP concludes that the quality, safety and efficacy of the medicinal product is sufficiently proven, it adopts a positive opinion. The CHMP's opinion is sent to the European Commission, which uses the opinion as the basis for its decision whether or not to grant a marketing authorization. If the opinion is negative, information is given as to the grounds on which this conclusion was reached.

After a drug has been authorized and launched, it is a condition of maintaining the marketing authorization that all aspects relating to its quality, safety and efficacy must be kept under review. Sanctions may be imposed for failure to adhere to the conditions of the marketing authorization. In extreme cases, the authorization may be revoked, resulting in withdrawal of the product from sale.

*Conditional Approval and Accelerated Assessment*

As per Article 14(7) of Regulation (EC) 726/2004, a medicine that would fulfill an unmet medical need may, if its immediate availability is in the interest of public health, be granted a conditional marketing authorization on the basis of less complete clinical data than are normally required, subject to specific obligations being imposed on the authorization holder. These specific obligations are to be reviewed annually by the EMA. The list of these obligations shall be made publicly accessible. Such an authorization shall be valid for one year, on a renewable basis.

When an application is submitted for a marketing authorization in respect of a drug for human use which is of major interest from the point of view of public health and in particular from the viewpoint of therapeutic innovation, the applicant may request an accelerated assessment procedure pursuant to Article 14(9) of Regulation (EC) 726/2004. Under the accelerated assessment procedure, the CHMP is required to issue an opinion within 150 days of receipt of a valid application, subject to clock stops. We believe that some of the disease indications in which our

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product candidates are currently being or may be developed in the future qualify for this provision, and we will take advantage of this provision as appropriate.

*Period of Authorization and Renewals*

A marketing authorization is initially valid for five years and may then be renewed on the basis of a re-evaluation of the risk-benefit balance by the EMA or by the competent authority of the authorizing member state. To this end, the marketing authorization holder shall provide the EMA or the competent authority with a consolidated version of the file in respect of quality, safety and efficacy, including all variants introduced since the marketing authorization was granted, at least six months before the marketing authorization ceases to be valid. Once renewed, the marketing authorization shall be valid for an unlimited period, unless the European Commission or the competent authority decides, on justified grounds relating to pharmacovigilance, to proceed with one additional five-year renewal. Any authorization which is not followed by the actual placing of the drug on the EU market (in case of centralized procedure) or on the market of the authorizing member state within three years after authorization shall cease to be valid (the so-called "sunset clause").

Without prejudice to the law on the protection of industrial and commercial property, marketing authorizations for new medicinal products benefit from an 8+2+1 year period of regulatory protection. This regime consists of a regulatory data protection period of eight years plus a concurrent market exclusivity of 10 years plus an additional market exclusivity of one further year if, during the first eight years of those 10 years, the marketing approval holder obtains an approval for one or more new therapeutic indications which, during the scientific evaluation prior to their approval, are determined to bring a significant clinical benefit in comparison with existing therapies. Under the current rules, a third party may reference the preclinical and clinical data of the reference product beginning eight years after first approval, but the third party may market a generic version of the reference product after only 10 (or 11) years have lapsed.

*Orphan Drug Designation*

Regulation (EC) 141/2000 states that a drug shall be designated as an orphan drug if its sponsor can establish (i) that it is intended for the diagnosis, prevention or treatment of a life-threatening or chronically debilitating condition affecting not more than five in 10,000 persons in the European Union when the application is made, or that it is intended for the diagnosis, prevention or treatment of a life-threatening, seriously debilitating or serious and chronic condition in the European Union and that without incentives it is unlikely that the marketing of the drug in the European Union would generate sufficient return to justify the necessary investment; and (ii) that there exists no satisfactory method of diagnosis, prevention or treatment of the condition in question that has been authorized in the European Union or, if such method exists, the drug will be of significant benefit to those affected by that condition.

Regulation (EC) 847/2000 sets out criteria for the designation of orphan drugs. An application for designation as an orphan product can be made any time prior to the filing of an application for approval to market the product. Marketing authorization for an orphan drug leads to a 10-year period of market exclusivity, which means that no similar medicinal product can be authorized in the same indication. This period may, however, be reduced to six years if, at the end of the fifth year, it is established that the product no longer meets the criteria for orphan drug designation, for example because the product is sufficiently profitable not to justify continued market exclusivity. In addition, derogation from market exclusivity may be granted on an individual basis in very selected cases, such as consent from the marketing authorization holder, inability to supply sufficient quantities of the product or demonstration of "clinically relevant superiority" by a similar medicinal product. Medicinal products designated as orphan drugs pursuant to Regulation (EC) 141/2000 are eligible for incentives made available by the European Union and by the member states to support research into, and the development and availability of, orphan drugs.

If the MAA of a medicinal product designated as an orphan drug pursuant to Regulation (EC) 141/2000 includes the results of all studies conducted in compliance with an agreed PIP, and a corresponding statement is subsequently included in the marketing authorization granted, the 10-year period of market exclusivity will be extended to 12 years.

*European Data Collection and Processing*

The collection, transfer, processing and other use of personal information, including health data, in the European Union is governed by the GDPR, which came into effect in May 2018. This directive imposes several requirements relating to (i) obtaining, in some situations, the consent of the individuals to whom the personal data relates, (ii) the information provided to the individuals about how their personal information is used, (iii) ensuring the security and confidentiality of the personal data, (iv) the obligation to notify regulatory authorities and affected individuals of personal data breaches, (v) extensive internal privacy governance obligations and (vi) obligations to honor rights of individuals in relation to their personal data (for example, the right to access, correct and delete their data). The GDPR prohibits the transfer of personal data to countries outside the European Economic Area, such as the United States, which are not considered by the European Commission to provide an adequate level of data protection. Switzerland has adopted similar restrictions. Failure to comply with the requirements of the GDPR and the related national data protection laws of the European Union member states may result in fines and other administrative penalties. The GDPR introduces new data protection requirements in the EU and substantial fines for breaches of the data protection rules. The GDPR and related data protection laws may impose additional responsibility and liability in relation to personal data that

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we collect and process, and we may be required to put in place additional mechanisms ensuring compliance with such rules. This may be onerous and adversely affect our business, financial condition, results of operations, and prospects.

*Marketing*

Much like the Anti-Kickback Statute prohibition in the United States, the provision of benefits or advantages to physicians to induce or encourage the prescription, recommendation, endorsement, purchase, supply, order or use of medicinal products is also prohibited in the EU. The provision of benefits or advantages to physicians is governed by the national anti-bribery laws of European Union member states, such as the U.K. Bribery Act 2010. Infringement of these laws could result in substantial fines and imprisonment.

Payments made to physicians in certain European Union member states must be publicly disclosed. Moreover, agreements with physicians often must be the subject of prior notification and approval by the physician's employer, his or her competent professional organization, and/or the regulatory authorities of the individual European Union member states. These requirements are provided in the national laws, industry codes or professional codes of conduct, applicable in the European Union member states. Failure to comply with these requirements could result in reputational risk, public reprimands, administrative penalties, fines or imprisonment.

***International Regulation***

In addition to regulations in the United States and Europe, a variety of foreign regulations govern clinical trials, commercial sales and distribution of product candidates. The approval process varies from country to country and the time to approval may be longer or shorter than that required for FDA or European Commission approval.

***Other Healthcare Laws and Regulations***

For other material healthcare laws and regulations that affect our business, see "Item 3. Key Information – D. Risk Factors -- Risks Related to Regulatory Approval and Government Regulation."

***Environmental, Health and Safety Laws and Regulations***

We and our third-party contractors are subject to numerous environmental, health and safety laws and regulations, including those governing laboratory procedures and the use, generation, manufacture, distribution, storage, handling, treatment, remediation and disposal of hazardous materials and wastes. Hazardous chemicals, including flammable and biological materials, are involved in certain aspects of our business, and we cannot eliminate the risk of injury or contamination from the use, generation, manufacture, distribution, storage, handling, treatment or disposal of hazardous materials and wastes. In particular, our product candidates use PBDs, which are highly potent cytotoxins that require special handling by our and our contractors' staff. In the event of contamination or injury, or failure to comply with environmental, health and safety laws and regulations, we could be held liable for any resulting damages, fines and penalties associated with such liability, which could exceed our assets and resources. Environmental, health and safety laws and regulations are becoming increasingly more stringent. We may incur substantial costs in order to comply with current or future environmental, health and safety laws and regulations.

***Government Pricing and Reimbursement Programs for Marketed Drugs in the U.S.***

*Medicaid, the 340B Drug Pricing Program, and Medicare*

Federal law requires that a pharmaceutical manufacturer, as a condition of having its products receive federal reimbursement under Medicaid and Medicare Part B, must pay rebates to state Medicaid programs for all units of its covered outpatient drugs dispensed to Medicaid beneficiaries and paid for by a state Medicaid program under either a fee-for-service arrangement or through a managed care organization. This federal requirement is effectuated through a Medicaid drug rebate agreement between the manufacturer and the Secretary of Health and Human Services. CMS administers the Medicaid drug rebate agreements, which provide, among other things, that the drug manufacturer will pay rebates to each state Medicaid agency on a quarterly basis and report certain price information on a monthly and quarterly basis. The rebates are based on prices reported to CMS by manufacturers for their covered outpatient drugs. For non-innovator products, generally generic drugs marketed under ANDAs, the rebate amount is 13% of the average manufacturer price (AMP) for the quarter. The AMP is the weighted average of prices paid to the manufacturer (1) directly by retail community pharmacies and (2) by wholesalers for drugs distributed to retail community pharmacies. For innovator products (i.e., drugs that are marketed under NDAs or BLAs), the rebate amount is the greater of 23.1% of the AMP for the quarter or the difference between such AMP and the best price for that same quarter. The best price is essentially the lowest price available to non-governmental entities. Innovator products may also be subject to an additional rebate that is based on the amount, if any, by which the product's AMP for a given quarter exceeds the inflation-adjusted baseline AMP, which for most drugs is the AMP for the first full quarter after launch. Since 2017, non-innovator products are also subject to an additional rebate. To date, the rebate amount for a drug has been capped at 100% of the AMP; however, effective January 1, 2024, this cap will be eliminated, which means that a manufacturer could pay a rebate amount on a unit of the drug that is greater than the average price the manufacturer receives for the drug.

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The terms of participation in the Medicaid drug rebate program impose an obligation to correct the prices reported in previous quarters, as may be necessary. Any such corrections could result in additional or lesser rebate liability, depending on the direction of the correction. In addition to retroactive rebates, if a manufacturer were found to have knowingly submitted false information to the government, federal law provides for civil monetary penalties for failing to provide required information, late submission of required information, and false information.

A manufacturer must also participate in a federal program known as the 340B drug pricing program in order for federal funds to be available to pay for the manufacturer's drugs under Medicaid and Medicare Part B. Under this program, the participating manufacturer agrees to charge certain safety net healthcare providers no more than an established discounted price for its covered outpatient drugs. The formula for determining the discounted price is defined by statute and is based on the AMP and the unit rebate amount as calculated under the Medicaid drug rebate program, discussed above. Manufacturers are required to report pricing information to the Health Resources and Services Administration (HRSA) on a quarterly basis. HRSA has also issued regulations relating to the calculation of the ceiling price as well as imposition of civil monetary penalties for each instance of knowingly and intentionally overcharging a 340B covered entity.

Federal law also requires that manufacturers report data on a quarterly basis to CMS regarding the pricing of drugs that are separately reimbursable under Medicare Part B. These are generally drugs, such as injectable products, that are administered "incident to" a physician service and are not generally self-administered. The pricing information submitted by manufacturers is the basis for reimbursement to physicians and suppliers for drugs covered under Medicare Part B. As with the Medicaid drug rebate program, federal law provides for civil monetary penalties for failing to provide required information, late submission of required information, and false information.

On November 15, 2021, the Infrastructure Investment and Jobs Act was enacted, which added a requirement for manufacturers of certain single-source drugs (including biologics and biosimilars) separately paid for under Medicare Part B for at least 18 months and marketed in single-dose containers or packages (known as refundable single-dose container or single-use package drugs) to provide annual refunds if those portions of the dispensed drug that are unused and discarded exceed an applicable percentage defined by statute or regulation. Manufacturers will be subject to periodic audits and those that fail to pay refunds for their refundable single-dose container or single-use package drugs shall be subject to civil monetary penalties. CMS finalized regulations to implement this section on November 18, 2022, and the provision went into effect on January 1, 2023.

Medicare Part D provides prescription drug benefits for seniors and people with disabilities. Medicare Part D enrollees once had a gap in their coverage (between the initial coverage limit and the point at which catastrophic coverage begins) where Medicare did not cover their prescription drug costs, known as the coverage gap. However, beginning in 2019, Medicare Part D enrollees paid 25% of brand drug costs after they reached the initial coverage limit - the same percentage they were responsible for before they reached that limit - thereby closing the coverage gap from the enrollee's point of view. Most of the cost of closing the coverage gap is being borne by innovator companies and the government through subsidies. Each manufacturer of drugs approved under NDAs or BLAs is required to enter into a Medicare Part D coverage gap discount agreement and provide a 70% discount on those drugs dispensed to Medicare Part D enrollees in the coverage gap, in order for its drugs to be reimbursed by Medicare Part D. Beginning in 2025, the Inflation Reduction Act (IRA) eliminates the coverage gap under Medicare Part D by significantly lowering the enrollee maximum out-of-pocket cost and requiring manufacturers to subsidize, through a newly established manufacturer discount program, 10% of Part D enrollees' prescription costs for brand drugs below the out-of-pocket maximum, and 20% once the out-of-pocket maximum has been reached. Although these discounts represent a lower percentage of enrollees' costs than the current discounts required below the out-of-pocket maximum (that is, in the coverage gap phase of Part D coverage), the new manufacturer contribution required above the out-of-pocket maximum could be considerable for very high-cost patients and the total contributions by manufacturers to a Part D enrollee's drug expenses may exceed those currently provided.

The IRA will also allow the U.S. Department of Health and Human Services (HHS) to negotiate the selling price of certain drugs and biologics that CMS reimburses under Medicare Part B and Part D, although only high-expenditure single-source drugs that have been approved for at least 7 years (11 years for biologics) can be selected by CMS for negotiation, with the negotiated price taking effect two years after the selection year. The negotiated prices, which will first become effective in 2026, will be capped at a statutory ceiling price. Beginning in October 2023, the IRA will also penalize drug manufacturers that increase prices of Medicare Part B and Part D drugs at a rate greater than the rate of inflation.

*U.S. Federal Contracting and Pricing Requirements*

Manufacturers are also required to make their covered drugs, which are generally drugs approved under NDAs or BLAs, available to authorized users of the Federal Supply Schedule (FSS) of the General Services Administration. The law also requires manufacturers to offer deeply discounted FSS contract pricing for purchases of their covered drugs by the Department of Veterans Affairs, the Department of Defense, the Coast Guard, and the Public Health Service (including the Indian Health Service) in order for federal funding to be available for reimbursement or purchase of the manufacturer's drugs under certain federal programs. FSS pricing to those four federal agencies for covered drugs must be no more than the Federal Ceiling Price (FCP), which is at least 24% below the Non-Federal Average Manufacturer Price (Non-FAMP) for the prior year. The Non-FAMP is the average price for covered drugs sold to wholesalers or other middlemen, net of any price reductions.

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The accuracy of a manufacturer's reported Non-FAMPs, FCPs, or FSS contract prices may be audited by the government. Among the remedies available to the government for inaccuracies is recoupment of any overcharges to the four specified federal agencies based on those inaccuracies. If a manufacturer were found to have knowingly reported false prices, in addition to other penalties available to the government, the law provides for significant civil monetary penalties per incorrect item. Finally, manufacturers are required to disclose in FSS contract proposals all commercial pricing that is equal to or less than the proposed FSS pricing, and subsequent to award of an FSS contract, manufacturers are required to monitor certain commercial price reductions and extend commensurate price reductions to the government, under the terms of the FSS contract Price Reductions Clause. Among the remedies available to the government for any failure to properly disclose commercial pricing and/or to extend FSS contract price reductions is recoupment of any FSS overcharges that may result from such omissions.

**C.Organizational Structure**

As of December 31, 2022, we had three subsidiaries. The following table set out for each of our principal subsidiaries, the countries of incorporation, and the percentage ownership and voting interest held by us (directly or indirectly through subsidiaries).

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| | | | |
|:---|:---|:---|:---|
| **Company** | **Country of Incorporation** | **Percentage Ownership and Voting Interest** | **Main Activities** |
| ADC Therapeutics America, Inc. | United States | 100% | Clinical, commercial and U.S. operations |
| ADC Therapeutics (UK) Limited | England | 100% | Research and development |
| ADC Therapeutics (NL) BV | Netherlands | 100% | EU launch of ZYNLONTA |

---

In addition to the three subsidiaries above, as of December 31, 2022, we own a 49% equity interest in Overland ADCT BioPharma. See "Item 10. Additional Information—Item C. Material Contracts—Overland License and Collaboration Agreement" and note 18 "Interest in joint venture" within the audited consolidated financial statements.

**D.Property, Plant and Equipment**

For the year ended December 31, 2022, we had capital expenditures of USD 1.7 million, consisting of USD 1.1 million related to the purchase of intangible assets (license agreements) and internal development costs and USD 0.6 million related to the purchase of property, plant and equipment (leasehold improvements and laboratory equipment).

**Facilities**

We do not own any real property. The table below sets forth the sizes and uses of our leased facilities as of December 31, 2022:

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| | | |
|:---|:---|:---|
| **Location** | **Primary Function** | **Approximate Size** |
| Biopôle <br>Route de la Corniche 3B <br>1066 Epalinges <br>Switzerland | Head office | 500 m<sup>2</sup> |
| 430 Mountain Avenue, 4th Floor <br>Murray Hill, New Jersey 07974 <br>United States | Clinical, commercial and U.S. operations | 965 m<sup>2</sup> |
| 84 Wood Lane<br>London, W12 0BZ<br>United Kingdom | Research and preclinical development | 1,100 m<sup>2</sup> |
| 1510 Fashion Island Boulevard, Suite 205 <br>San Mateo, California 94404 <br>United States | Chemistry manufacturing and control | 375 m<sup>2</sup> |

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We are not aware of any environmental issues or other constraints that would materially impact the intended use of our facilities.

**ITEM 4A.&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS**

None.

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**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

You should read the following discussion and analysis of our financial condition and results of operations together with our audited consolidated financial statements, including the notes thereto, included in this Annual Report.

Our audited consolidated financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS"). None of our financial statements was prepared in accordance with U.S. Generally Accepted Accounting Principles. The following discussion includes forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those described under "Item 3. Key Information—D. Risk Factors" and elsewhere in this Annual Report.

**A.Operating Results**

**Overview**

We are a fully-integrated commercial-stage biotechnology company helping to improve the lives of those affected by cancer with our next-generation, targeted antibody drug conjugates ("ADCs"). Our flagship product, ZYNLONTA® (loncastuximab tesirine or Lonca) received accelerated approval from the FDA on April 23, 2021, and launched commercially in the U.S. shortly thereafter, for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy, including diffuse large B-cell lymphoma ("DLBCL") not otherwise specified, DLBCL arising from low-grade lymphoma, and also high-grade B-cell lymphoma. Our objective is to establish ZYNLONTA as the third line+ DLBCL standard of care while exploring ZYNLONTA in earlier lines of therapy and in combinations to expand our market opportunity. We have a strong validated technology platform including our highly potent pyrrolobenzodiazepine (PBD) technology and are advancing this proprietary PBD-based ADC technology to transform the treatment paradigm for patients with hematologic malignancies and solid tumors. Additionally, we have a growing toolbox of different components allowing us to work on next-generation ADC products. By leveraging our R&D strengths, our disciplined approach to target selection and our preclinical and clinical development strategy, we have created a diverse portfolio and research pipeline. Our clinical-stage PBD-based pipeline consists of two company-sponsored candidates, ADCT-901 and ADCT-601 (mipasetamab uzoptirine), as well as one clinical-stage candidate, ADCT-602, which is being developed in collaboration with a partner. Our preclinical-stage PBD-based pipeline consists of one company-sponsored candidate, ADCT-212, as well as one preclinical-stage candidate, ADCT-701, which is being developed in collaboration with a partner. We are

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also committed to broadening our ADC platform by expanding new antibody constructs and payloads and advancing our differentiated next-generation assets.

**Results of Operations**

For a comparison of our results of operations for the years ended December 31, 2021 and 2020, see "Item 5. Operating and Financial Review and Prospects—A. Operating Results—Results of Operations—Comparison of the Years Ended December 31, 2021 and December 31, 2020" in Annual Report on Form 20-F for the year ended December 31, 2021.

***Comparison of the Years Ended December 31, 2022 and December 31, 2021***

The following table summarizes our results of operations for the years ended December 31, 2022 and 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **Change** | **% Change** |
| | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Product revenues, net | 74908 | 33917 | 40991 | 120.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;License revenue | 135000 |  | 135000 | n/a |
| **Total revenue** | **209908** | **33917** | **175991** | **518.9%** |
| Operating expense |  |  |  |  |
| &nbsp;&nbsp;Cost of product sales | (4579) | (1393) | (3186) | 228.7% |
| &nbsp;&nbsp;Research & Development expenses | (187898) | (158002) | (29896) | 18.9% |
| &nbsp;&nbsp;Sales & Marketing expenses | (69052) | (64780) | (4272) | 6.6% |
| &nbsp;&nbsp;General & Administrative expenses | (72006) | (71462) | (544) | 0.8% |
| Total operating expense | (333535) | (295637) | (37898) | 12.8% |
| **Loss from operations** | **(123627)** | **(261720)** | **138093** | **(52.8)%** |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;Financial income | 17970 | 66 | 17904 | n/a |
| &nbsp;&nbsp;Financial expense | (36924) | (18340) | (18584) | 101.3% |
| &nbsp;&nbsp;Non-operating (expense) income | (12080) | 28489 | (40569) | (142.4)% |
| Total other (expense) income | (31034) | 10215 | (41249) | (403.8)% |
| **Loss before taxes** | **(154661)** | **(251505)** | **96844** | **(38.5)%** |
| &nbsp;&nbsp;Income tax (expense) benefit | (1139) | 21479 | (22618) | (105.3)% |
| **Net Loss** | **(155800)** | **(230026)** | **74226** | **(32.3)%** |

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*<u>Revenue</u>*

*Product revenues, net*

To date our sole source of product revenue has been generated from sales of ZYNLONTA in the U.S. We received accelerated approval from the FDA for ZYNLONTA for the treatment of relapsed or refractory DLBCL on April 23, 2021 and commercially launched the product in the U.S. shortly thereafter. Product revenues, net grew to USD 74.9 million for the year ended December 31, 2022, compared to USD 33.9 million for the year ended December 31, 2021. The significant increase of USD 41.0 million or 120.9% is principally due to a full year's worth of sales activity in 2022 as compared to a partial year in 2021. The increase in sales volume was partially offset with higher gross-to-net deductions.

Our ability to generate and grow product revenue will depend upon our ability to successfully commercialize ZYNLONTA and to develop, obtain regulatory approval for and commercialize ZYNLONTA in additional territories and indications, and for our other product candidates. Because of the numerous risks and uncertainties associated with commercialization, product development and regulatory approval, we are unable to predict the amount or timing of product revenue. Our product revenue may fluctuate from period to period based on a number of factors including, but not limited to, patient demand, as well as the timing, dose and duration, of patient therapy and customers' buying patterns and gross-to-net deductions.

*License revenue*

We entered into an exclusive license agreement with MTPC in January 2022 for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications in Japan. Under the terms of the agreement, we received an upfront payment of USD 30.0 million. In July 2022, we entered into an exclusive license agreement with Sobi for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications outside of the U.S., greater China, Singapore and Japan. Under the terms of the agreement, the Company received an upfront payment of USD 55.0 million in July 2022 and recognized a milestone payment of USD 50.0 million in December 2022 upon approval of the Marketing Authorisation Application by the European Commission for ZYNLONTA in third-line DLBCL. All of these items were recorded as license revenue within the audited consolidated statement of operations. We did not receive any license revenue in 2021.

*<u>Cost of sales</u>*

Cost of product sales primarily consisted of direct and indirect costs relating to the manufacture of ZYNLONTA from third-party providers of manufacturing, distribution and logistics services, intangible asset amortization expense, impairment charges and royalties paid to a collaboration partner based on net product sales of ZYNLONTA. Inventory amounts written down as a result of excess or obsolescence are charged to Cost of product sales. Cost of product sales increased to USD 4.6 million for the year ended December 31, 2022 from USD 1.4 million for the year ended December 31, 2021, an increase of USD 3.2 million primarily driven by an impairment charge of USD 2.5 million of impairment charges, of which USD 1.7 million related to the manufacturing of antibodies that did not meet our specifications and an increase of USD 0.8 million was associated with inventory manufactured using the Company's existing process at a new facility that did not meet our expectations. The specification issues did not, and are not expected to, impact the company's ability to supply commercial product. In addition, cost of product sales increased due to a full year's worth of sales activity in 2022 as compared to the comparable period in 2021 due to the commencement of ZYNLONTA sales in May 2021.

*<u>R&D Expenses</u>*

The following table summarizes our research and development expenses for our major development programs for the years ended December 31, 2022 and 2021:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** <sup>(1)</sup> | **Change** |
| | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** |
| ZYNLONTA | 74870 | 67749 | 7121 |
| Cami | 37711 | 31127 | 6584 |
| ADCT-602 | 1229 | 1883 | (654) |
| ADCT-601 | 8052 | 10584 | (2532) |
| ADCT-901 | 5455 | 7442 | (1987) |
| ADCT-212 | 19116 | 3803 | 15313 |
| Preclinical product candidates and research pipeline | 12233 | 10140 | 2093 |
| Not allocated to specific programs<sup>(2)</sup> | 11791 | 8712 | 3079 |
| Share-based compensation | 17441 | 16562 | 879 |
| **R&D expenses** | **187898** | **158002** | **29896** |

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<sup>1</sup> Prior to June 30, 2022, share-based compensation expense was allocated to the major development programs and preclinical product candidates and research pipeline. Prior to September 30, 2022, ADCT-212 was included in the Preclinical product candidates and research pipeline. Prior periods have been recast to conform to the current period presentation.

<sup>2</sup> Includes third-party contracting and employee expenses, as well as expenses for preclinical research, storage, shipping and lab consumables that span multiple programs.

Our R&D expenses increased to USD 187.9 million for the year ended December 31, 2022 from USD 158.0 million for the year ended December 31, 2021, an increase of USD 29.9 million, or 18.9%. As a result of FDA approval of ZYNLONTA in April 2021, the Company reversed KUSD 8,100 of previously recorded impairment charges during the year ended December 31, 2021, relating to inventory costs incurred for the manufacture of product prior to FDA approval. External costs increased primarily as a result of higher chemistry, manufacturing and controls ("CMC") expense due to manufacturing activities to support the ADCT-212 program as well as our continued clinical trials to expand the potential market opportunities for ZYNLONTA in earlier lines of therapy and build our pipeline. Employee expense increased primarily due to higher contract labor expenses and share-based compensation expense.

R&D expense consists principally of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• salaries for R&D staff and related expenses, including share-based compensation expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs for production of preclinical and clinical-stage product candidates by CMOs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fees and other costs paid to contract research organizations in connection with the performance of preclinical studies and clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs of related facilities, materials and equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs associated with depreciation of right-of-use assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs associated with obtaining and maintaining patents and other intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amortization and depreciation, as well as impairment charges, of tangible and intangible fixed assets used to develop our product candidates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• achieved milestone payments associated with R&D collaboration arrangements that do not qualify to be capitalized.

R&D costs are expensed in the period in which they are incurred.

We expect R&D expenses to decrease on an absolute basis in the near-term but will continue to comprise the largest component of our overall operating expenses. Our R&D expense may vary substantially from period to period according to the status of our R&D activities. The timing of expenses are impacted by the commencement of clinical trials and enrollment of patients in clinical trials. The successful development of our product candidates is uncertain.

At this time, we cannot reasonably estimate the nature, timing and estimated costs of the efforts that will be necessary to complete the development of, or the period, if any, in which material net cash inflows may commence from, any of our product candidates. This is due to numerous risks and uncertainties associated with developing drugs, including the uncertainty of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the scope, rate of progress, results and cost of our clinical trials, preclinical studies and other related activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of manufacturing clinical supplies, and establishing commercial supplies, of any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number and characteristics of product candidates that we pursue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost, timing and outcomes of regulatory approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost and timing of establishing sales, marketing and distribution capabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms and timing of any collaboration, licensing or other arrangements that we may establish, including any required milestone and royalty payments thereunder.

In addition, R&D expense may fluctuate based on the status of regulatory approval of our drug candidates. We do not capitalize inventory costs associated with certain products prior to regulatory approval as such costs are not deemed highly probable of being recovered through future sales of the drug product until regulatory approval is obtained. As such, the costs are recorded as impairment charges to R&D expense.

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Upon receiving regulatory approval, we are permitted to reverse previously recorded impairment charges to the extent highly probable of being recovered through future sales. R&D expenses for our major development programs will fluctuate from period to period primarily due to the nature and timing associated with the various lifecycle stages of each program, including but not limited to early R&D activities; manufacturing of clinical drug product; clinical trial activity; costs associated with the regulatory approval process; and manufacturing costs associated with commercialization activities prior to the receipt of regulatory approval.

As a result of FDA approval of ZYNLONTA in April 2021, the Company reversed KUSD 8,100 of previously recorded impairment charges during the year ended December 31, 2021, relating to inventory costs incurred for the manufacture of product prior to FDA approval. R&D expenses related to ZYNLONTA increased due to the undertaking of clinical trials to expand the potential market opportunities for ZYNLONTA in earlier lines of therapy, which was partially offset by lower CMC expenses due to the absence of pre-launch commercial supply activities that were performed during the year ended December 31, 2021.

The increase in R&D expenses related to Cami was primarily due to higher personnel costs and CMC expenses as various development activities and ongoing clinical trial activity occurred during the year ended December 31, 2022. This increase was partially offset by a decrease in clinical trial activity of the Phase 2 trial for HL.

The decrease in R&D expenses related to ADCT-601 was primarily due to lower CMC expenses partially offset by higher clinical expenses.

The decrease in R&D expenses related to ADCT-901 was primarily due to lower CMC expenses and preclinical expenses incurred in the year ended December 31, 2022.

The increase in R&D expenses related to ADCT-212 was primarily due to higher expenses related to IND-enabling work during the year ended December 31, 2022.

*S&M Expenses*

The following table summarizes our S&M expenses for the years ended December 31, 2022 and 2021:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **Change** |
| | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** |
| External costs <sup>(1)</sup> | 35752 | 28817 | 6935 |
| Employee expenses <sup>(2)</sup> | 33300 | 35963 | (2663) |
| **S&M expenses** | **69052** | **64780** | **4272** |
| <sup>(1)</sup> Includes depreciation expense relating to Property, plant and equipment for the year ended December 31, 2022. All other depreciation expense was not material for the year ended December 31, 2022. Depreciation expense for S&M was not material for the year ended December 31, 2021. | <sup>(1)</sup> Includes depreciation expense relating to Property, plant and equipment for the year ended December 31, 2022. All other depreciation expense was not material for the year ended December 31, 2022. Depreciation expense for S&M was not material for the year ended December 31, 2021. | <sup>(1)</sup> Includes depreciation expense relating to Property, plant and equipment for the year ended December 31, 2022. All other depreciation expense was not material for the year ended December 31, 2022. Depreciation expense for S&M was not material for the year ended December 31, 2021. | <sup>(1)</sup> Includes depreciation expense relating to Property, plant and equipment for the year ended December 31, 2022. All other depreciation expense was not material for the year ended December 31, 2022. Depreciation expense for S&M was not material for the year ended December 31, 2021. |
| <sup>(2)</sup> Includes share-based compensation expense |  |  |  |

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Our S&M expenses increased to USD 69.1 million for the year ended December 31, 2022 from USD 64.8 million for the year ended December 31, 2021, an increase of USD 4.3 million, or 6.6%. The increase was primarily due to increased professional expenses relating to the commercial launch of ZYNLONTA. This increase was partially offset by lower employee expenses primarily due to lower share-based compensation expense. S&M expense includes employee expenses (including share-based compensation expense) for commercial employees and external costs related to commercialization (including professional fees, communication costs and IT costs, travel expenses and

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depreciation of Property, plant and equipment). Depreciation expense of right-of-use assets and facilities were not material to the periods presented.

We currently expect our S&M expenses to decrease as a percentage of revenue in the near and long-term as we have transitioned to being a commercial-stage public company.

*G&A Expenses*

The following table summarizes our G&A expenses for the years ended December 31, 2022 and 2021:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **Change** |
| | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** |
| External costs <sup>(1)</sup> | 23640 | 21486 | 2154 |
| Employee expenses <sup>(2)</sup> | 48366 | 49976 | (1610) |
| **G&A expenses** | **72006** | **71462** | **544** |
| <sup>(1)</sup> Includes depreciation expense.  |  |  |  |
| <sup>(2)</sup> Includes share-based compensation expense |  |  |  |

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Our G&A expense increased to USD 72.0 million for the year ended December 31, 2022 from USD 71.5 million for the year ended December 31, 2021, an increase of USD 0.5 million, or 0.8%. External costs increased primarily due to higher professional fees, including the fees associated with the license agreement entered into with MTPC. Employee expense for the year ended December 31, 2022 decreased primarily as a result of lower share-based compensation expense partially offset by higher wages and benefits, including USD 1.3 million of executive compensation associated with the CEO transition. G&A expense includes employee expenses (including share-based compensation expense) for G&A employees, external costs (including in particular professional fees, communications costs and IT costs, facility expenses and travel expenses), G&A costs charged by related parties (including telecommunications costs), depreciation of property, plant and equipment, depreciation of right-of-use assets and amortization of intangible assets.

We expect our G&A expenses to decrease as a percentage of revenue in the near and long-term as we have transitioned to being a commercial-stage public company.

*Other (Expense) Income*

The following table summarizes our other (expense) income for the years ended December 31, 2022 and 2021:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **Change** |
| | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** |
| Financial income | 17970 | 66 | 17904 |
| Financial expense | (36924) | (18340) | (18584) |
| Non-operating (expense) income | (12080) | 28489 | (40569) |
| **Total other (expense) income** | **(31034)** | **10215** | **(41249)** |

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*Financial Income* 

Financial income consists primarily of cumulative catch-up adjustments associated with the valuation of the deferred royalty obligation with HCR. We periodically assess the expected payments to HCR based on our underlying revenue projections and to the extent the amount or timing of such payments is materially different than our initial estimates we will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in earnings as an adjustment to Financial income (expense) in the period in which the change in estimate occurred. In addition, Financial income also includes interest received from banks on our cash balances. Our policy is to invest funds in a variety of capital preservation instruments, which may include all or a combination of short-term and long-term interest-bearing instruments, investment-grade securities, and direct or guaranteed obligations of the U.S. government.

Our financial income was USD 18.0 million for the year ended December 31, 2022 as compared to USD 0.1 million for the year ended December 31, 2021. The increase was primarily related to the total cumulative catch-up adjustment of USD 15.4 million associated with the deferred royalty obligation with HCR. The total cumulative catch-up adjustment was based on revised revenue forecasts used in the valuation model, which revisions were primarily attributable to updates made for the Company's 2022 strategic planning decisions, including updated development plans. Also contributing to the increase was higher interest income due to higher yields received on our cash deposits.

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*Financial Expense*

Financial expense consists primarily of commercial banking fees, interest expense related to the accretion of our deferred royalty obligation with HCR, interest related to leases, the senior secured term loan facility and convertible loans. Our financial expense increased to USD 36.9 million for the year ended December 31, 2022 from USD 18.3 million for the year ended December 31, 2021. The increase was primarily due to interest expense related to the accretion of our deferred royalty obligation with HCR and senior secured term loans, calculated at their respective implied effective interest rate ("EIR"). The deferred royalty obligation with HCR was entered into during August 2021 and the senior secured term loan facility was entered into during August 2022.

***Non-operating (expense) income***

*Notable items other than revenue from product sales and license revenue impacting the results of operations for the year ended December 31, 2022 and 2021 included:*

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **P&L Classification** | **2022** | **2021** | **Change** |
| | | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** |
| Fair value adjustment of Facility Agreement derivatives | Non-operating income | 25650 | 34893 | (9243) |
| Loss on extinguishment | Non-operating expense | 42114 |  | 42114 |
| Fair value adjustment of senior secured term loan warrant obligation | Non-operating income | 2962 |  | 2962 |
| Fair value adjustment of Deerfield warrant obligation | Non-operating income | 11504 |  | 11504 |
| Share of Overland ADCT BioPharma net loss | Non-operating expense | 10084 | 6672 | 3412 |

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*Convertible loans, derivatives, change in fair value income*

On May 19, 2020, we received the first tranche of convertible loans in the amount of USD 65.0 million upon completion of the IPO. On May 17, 2021, we drew down the second tranche of convertible loans in the amount of USD 50.0 million upon the receipt of FDA approval of ZYNLONTA.

On August 15, 2022, pursuant to an exchange agreement with Deerfield, Deerfield exchanged USD 115.0 million aggregate principal amount of the Company's senior secured convertible notes for warrants to purchase an aggregate of 4,412,840 common shares, an aggregate of 2,390,297 common shares and cash equal to USD 117.3 million. Prior to the exchange, we accounted for the transaction as a loan and an embedded conversion option derivative. The embedded conversion option derivative was marked-to-market at the end of each reporting period while the loan was measured at its amortized cost. Changes in the fair value (gains or losses) of the derivative at the end of each period were recorded in the consolidated statement of operations.

The change in fair value of the convertible loans derivatives was recognized as income of USD 25.7 million and USD 34.9 million for the year ended December 31, 2022 and 2021, respectively. The decreases in fair values of the embedded derivatives are primarily due to decreases in the fair value of the underlying shares during the respective periods.

*Loss on debt extinguishment*

As a result of the exchange agreement, the Company recognized a loss on extinguishment of USD 42.1 million for the year ended December 31, 2022, which primarily consists of the difference between the aggregate principal amount and carrying value of the convertible loans, exit fee, as well as the unpaid interest payments through the maturity date.

*Senior secured term loans and warrants*

The Company has accounted for the first tranche of the senior secured term loan and warrants as one hybrid financial instrument, with the USD 120.0 million proceeds separated into two components: a warrant obligation and a loan. The warrant obligation has been recorded at its initial fair value at the time the agreement was entered into on August 15, 2022 and is remeasured to fair value at the end of each reporting period. The loan is presented as a liability and represents the net present value of all future cash flows associated with the loan discounted at its EIR. The income of USD 3.0 million as a result of changes in the warrant obligation for the year ended December 31, 2022 was primarily due to the decrease in fair value of the underlying shares since August 15, 2022. Our accounting for these changes in the fair value of our warrant obligation is explained in note 23, "Senior secured term loan facility and warrants" to the audited consolidated financial statements.

*Deerfield warrant obligation, change in fair value income*

Pursuant to an exchange agreement with Deerfield entered into on August 15, 2022, the Company issued warrants to Deerfield to purchase an aggregate of 4,412,840 common shares. The Deerfield warrant obligation has been recorded at its initial fair value at the time the agreement

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was entered into on August 15, 2022 and is remeasured to fair value at the end of each reporting period. The income of USD 11.5 million as a result of changes in the warrant obligation for the year ended December 31, 2022 was primarily due to the decrease in fair value of the underlying shares since August 15, 2022.

*Share of Results with Joint Venture*

We recorded our proportionate share of Overland ADCT BioPharma's net loss of USD 10.1 million and USD 6.7 million for the years ended December 31, 2022 and 2021, respectively. Our share of ADCT BioPharma's net loss increased due to higher clinical trial activity at ADCT BioPharma.

Under the equity method, an investment in a joint venture is recognized initially in the consolidated balance sheet at cost and adjusted thereafter to recognize our share of the profit or loss, other comprehensive income or loss of the joint venture, distributions from the joint venture and other adjustments to our proportionate interest in the joint venture. Our initial investment is recorded as an Interest in joint ventures in the consolidated balance sheet. Our proportionate share of net income or losses of equity investments is included within Share of results with joint venture in the consolidated statement of operation. The carrying value of our investment in a joint venture increases or decreases in relation to our proportionate share of comprehensive income or loss of the joint venture. When our share of losses of a joint venture exceeds our interest in that joint venture less the carrying value of the deferred gain described below, we cease to recognize its share of further losses. Additional losses are recognized only to the extent that we have incurred legal or constructive obligations or made payments on behalf of the joint venture. In connection with our initial investment, the gain resulting from our contribution of intellectual property was only recognized to the extent of the unrelated investors' equity interest in the joint venture, which resulted in a deferred gain of a portion of our initial investment. We will begin to recognize the deferred gain upon the commercialization of any or all of the Licensed Products by the joint venture. The deferred gain will be recognized over the estimated commercialization period in which a Licensed Product is developed and approved using a systematic approach that approximates the pattern of consumption of the Licensed IP by the joint venture. Investments accounted for under the equity method are assessed for potential impairment on a regular basis based on qualitative factors.

*Income Tax Expenses*

We recorded an income tax expense of USD 1.1 million for the year ended December 31, 2022 as compared to income tax benefit of USD 21.5 million for the year ended December 31, 2021.

We are subject to corporate taxation in Switzerland. We are also subject to taxation in other jurisdictions in which we operate, in particular, the United States and the United Kingdom, where our two wholly-owned subsidiaries are incorporated. We are entitled under Swiss laws to carry forward any losses incurred for a period of seven years, which could be used to offset future taxable income. We are also entitled under U.S. tax law to carry forward R&D tax credits for a period of up to 20 years, which could be used to offset future taxable income.

The income tax expense recorded for the year ended December 31, 2022 is significantly greater than the loss before taxes effected at the blended statutory rate due to the fact that we do not recognize current or deferred income taxes in connection with our Swiss operations. We do not expect to be able to realize the benefit of our tax loss carryforwards for Swiss corporate income tax purposes, and, therefore, we have not recognized deferred tax assets in our financial statements. Further, we do not generate or pay current income taxes in Switzerland.

Our income tax expense recorded during the year ended December 31, 2022 is driven by our U.S. operations. Generally, current income tax is recorded primarily due to our internal arrangements to reimburse our foreign subsidiaries in the U.S. and the United Kingdom for the services they render to our parent company in Switzerland. Commercial sales in the U.S. also contributed to the current period income tax expense. Ultimately, the net profit at each subsidiary is subject to local income tax.

Comparatively, our income tax benefit recorded during the year ended December 31, 2021 was driven by USD 22.7 million of deferred income tax benefit recorded in connection with the recognition of deferred tax assets associated with our U.S. operations on the basis of our projections of future taxable income. We did not recognize any deferred tax assets in connection with our U.S. operations prior to December 31, 2021.

In estimating future taxable income, management develops assumptions including the amount of future net revenue and pre-tax operating income and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage the underlying business. Management notes that its projections of future taxable profits rely on currently enacted law and are subject to revision if the U.S. legislates new tax law. As such, changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. We record the effect of a tax rate or law change on our deferred tax assets and liabilities in the period of enactment. Future tax rate or law changes could have a material effect on our financial condition, results of operations or cash flows.

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**B.Liquidity and Capital Resources** 

**Liquidity and Capital Resources**

As of December 31, 2022, we had cash and cash equivalents of USD 326.4 million. We believe that we have sufficient cash and cash equivalents to fund our operations for at least twelve months. We plan to continue to fund our operating needs through our existing cash and cash equivalents, revenues from the sale of ZYNLONTA, potential milestone and royalty payments under our licensing agreements and additional equity financings, debt financings and/or other forms of financing, as well as funds provided by collaborations. We are also continuously engaged in discussions to establish value-maximizing strategic collaborations, business combinations, acquisitions, licensing opportunities or similar strategies for clinical development and commercialization of ZYNLONTA and/or our product candidates.

***Sources of Liquidity***

To date, we have financed our operations primarily through equity financings, convertible debt and senior secured term loan financings, and additional funds provided by collaborations and royalty financings.

*Loan Agreement*

On August 15, 2022, the Company, ADC Therapeutics (UK) Limited and ADC Therapeutics America, Inc. entered into a loan agreement and guaranty (the "Loan Agreement") with certain affiliates and/or funds managed by each of Oaktree Capital Management, L.P. and Owl Rock Capital Advisors LLC, as lenders, and Owl Rock Opportunistic Master Fund I, L.P., as administrative agent and collateral agent, pursuant to which the Company may borrow up to USD 175.0 million principal amount of secured term loans, including (i) an initial tranche of USD 120.0 million principal amount of term loans and (ii) up to two additional tranches, each up to USD 27.5 million principal amount of term loans that the Company may draw upon within 18 months of the closing date, subject to satisfaction of certain customary conditions, including compliance with the Company's other material agreements for the incurrence of such debt. The secured term loans are scheduled to mature on August 15, 2029 and accrue interest at an annual rate of SOFR plus 7.50% per annum or a base rate plus 6.50% per annum for the first five years of the term loans, and thereafter, at an annual rate of SOFR plus 9.25% or a base rate plus 8.25%, in each case subject to a 1.00% per annum SOFR floor. At the Company's election, for the first three years, the Company may choose to pay an amount of interest on the outstanding principal amount of term loans corresponding to up to 2.50% of the applicable interest rate in kind (in lieu of payment in cash). The Company is obligated to pay certain exit fees upon certain prepayments and repayments of the principal amount of the term loans. In addition, the Company has the right to prepay the term loans at any time subject to certain prepayment premiums applicable during the period commencing from the closing date until the fourth anniversary of the closing date. The Loan Agreement also contains certain prepayment provisions, including mandatory prepayments from the proceeds from certain asset sales, casualty events and from issuances or incurrences of debt, which may also be subject to prepayment premiums if made on or prior to the fourth anniversary of the closing date. The obligations under the Loan Agreement are secured by substantially all assets of the Company and certain of its subsidiaries and are guaranteed initially by the Company's subsidiaries in the United States and the United Kingdom. The Loan Agreement contains customary covenants, including a covenant to maintain qualified cash of at least USD 60.0 million plus an amount equal to any accounts payable of the Company or its subsidiaries that remain unpaid more than ninety (90) days after the date of the original invoice therefor, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. The Loan Agreement also contains customary events of default, after which the term loan may become due and payable immediately, including payment defaults, material inaccuracy of representations and warranties, covenant defaults (including creation of any liens other than those that are expressly permitted), bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, judgments against the Company and its subsidiaries and change in control. We received the initial tranche of USD 120.0 million principal amount of term loans on August 15, 2022.

*Collaboration Agreements*

We are a party to various license and collaboration agreements, pursuant to which we are entitled to receive milestone and royalty payments. See "Item 10. Additional Information—C. Material Contracts."

*At-the-Market Offering Program*

We have an at-the-market ("ATM") offering program, pursuant to which we may sell our common shares with an aggregate offering price of up to USD 200.0 million. There have been no shares sold under the ATM program to date.

*Warrants*

As of the date of this Annual Report, we have outstanding warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share (which are exercisable, on a cash or cashless basis, at the option of the holder at any time on or prior to May 19, 2025), warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 (which are exercisable, on a cash or cashless basis, at the option of the holder at any time on or prior to May 19, 2025) and warrants to purchase an aggregate of 527,295 common shares at an exercise price of USD 8.30 per share (which are exercisable, on a cash or a cashless basis, at the option of the holder at any time on

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or prior to August 15, 2032). The warrants also contain customary anti-dilution adjustments and will entitle holders to receive any dividends or other distributions paid on the underlying common shares prior to their expiration on an as-exercised basis.

***Uses of Cash***

Our primary uses of capital are, and we expect will continue to be, R&D expenses, S&M expenses, compensation and related expenses, interest and principal payments on debt obligations and other operating expenses. We expect to incur substantial expenses in connection with the advancement of clinical trials, including pivotal and confirmatory clinical trials, regulatory submissions for our products, product candidates and research pipeline, and the commercialization of ZYNLONTA. Cash used to fund operating expenses is impacted by the timing of when we pay expenses, as reflected in the change in our outstanding accounts payable and accrued expenses, as well as the timing of collecting receivables from the sale of ZYNLONTA and paying royalties related to our deferred royalty obligation.

**Cash Flows**

For a comparison of our cash flows for the years ended December 31, 2021 and 2020, see "Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Cash Flows—Comparison of the Years Ended December 31, 2021 and December 31, 2020" in Annual Report on Form 20-F for the year ended December 31, 2021.

***Comparison of the Years Ended December 31, 2022 and December 31, 2021***

The following table summarizes our cash flows for the years ended December 31, 2022 and 2021:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **Change** |
| | **(in USD thousands)** | **(in USD thousands)** | **(in USD thousands)** |
| Net cash (used in) provided by: |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | (136794) | (233378) | 96584 |
| &nbsp;&nbsp;&nbsp;Investing activities | (2508) | (6673) | 4165 |
| &nbsp;&nbsp;&nbsp;Financing activities | (593) | 267394 | (267987) |
| &nbsp;&nbsp;&nbsp;Net change in cash and cash equivalents | **(139895)** | **27343** | **(167238)** |

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*Net Cash Used in Operating Activities*

Net cash used in operating activities decreased to USD 136.8 million for the year ended December 31, 2022 from USD 233.4 million for the year ended December 31, 2021, a decrease of USD 96.6 million, or 41.4%. The decrease was primarily due to the receipt of the USD 30 million upfront payment from MTPC, the receipt of the USD 55 million upfront payment from Sobi and increases in the cash received from the sale of ZYNLONTA partially offset by increased cash expenditures in the period related to operating expenses in advancing development of our pipeline and the continued commercialization of ZYNLONTA.

*Net Cash Used in Investing Activities*

Net cash used in investing activities decreased to USD 2.5 million for the year ended December 31, 2022 from USD 6.7 million for the year ended December 31, 2021, a decrease of USD 4.2 million, or 62.4%, primarily due to lower capital expenditures and lower intangible asset acquisitions for the year ended December 31, 2022. See note 15, "Property, plant and equipment" and note 17, "Intangible assets" to the audited consolidated financial statements for further information.

*Net Cash (Used in) Provided by Financing Activities*

Net cash used in financing activities was USD 0.6 million for the year ended December 31, 2022 compared to USD 267.4 million of net cash provided by financing activities for the year ended December 31, 2021. For the year ended December 31, 2022, we drew down USD 120.0 million principal amount of term loans under the Loan Agreement prior to transaction costs paid of USD 7.2 million during the year ended December 31, 2022. In addition, we received USD 6.1 million of proceeds, net of transaction costs paid during the year ended December 31, 2022, from the issuance of shares under the share purchase agreement. Additionally, we exchanged our senior secured convertible notes pursuant to the exchange agreement with Deerfield, resulting in USD 118.3 million (including exit fees and transaction costs) being used. See note 23, "Senior secured term loan facility and warrants", note 24, "Convertible loans", note 25, "Deerfield warrants" and note 28, "Share capital" to the audited consolidated financial statements for further information. During the year ended December 31, 2021, the Company received net proceeds of USD 218.0 million from the sale and purchase agreement associated with our deferred royalty obligation with HCR and receipt of the second tranche of convertible loans under the Facility Agreement of USD 49.6 million.

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**C.Research and Development, Patents and Licenses, etc.**

See "Item 4. Information on the Company—B. Business Overview" and "Item 5. Operating and Financial Review and Prospects—A. Operating Results—Results of Operations."

**D.Trend Information**

See "Item 5. Operating and Financial Review and Prospects—A. Operating Results."

We did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements or commitments.

**E.Critical Accounting Estimates**

***Revenue Recognition***

*<u>Product revenue</u>*

Revenue from the sale of products is recognized in a manner that depicts the transfer of those promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. To achieve this core principle, we follow a five-step model: (i) identify the customer contract; (ii) identify the contract's performance obligation; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; and (v) recognize revenue when, or as, a performance obligation is satisfied.

Revenue from the sale of products is presented net of sales adjustments (gross-to-net or "GTN" adjustments), which may include government rebates, chargebacks, distributor service fees, other rebates and administrative fees, sales returns and allowances and sales discounts. GTN sales adjustments involve significant estimates and judgment after considering factors including legal interpretations of applicable laws and regulations, historical experience and drug product analogs in the absence of our experience, payer channel mix, current contract prices under applicable programs, unbilled claims and processing time lags and inventory levels in the distribution channel. The Company also uses information from external sources to identify prescription trends, patient demand, average selling prices and sales return and allowance data for analog drug products. Our estimates are subject to inherent limitations of estimates that rely on third-party information, as certain third-party information was itself in the form of estimates, and reflect other limitations including lags between the date as of which third-party information is generated and the date on which we receive third-party information. Estimates will be assessed each period and adjusted as required to revise information or actual experience.

*<u>License arrangements</u>*

We may enter into agreements with multiple performance obligations. Performance obligations are identified and separated when the other party can benefit from the license on its own or together with other resources that are readily available, and the license is separately identifiable from other goods or services in the contract.

Revenues from license fees for intellectual property (IP) is recognized either at a point in time or over time. An assessment is made as to whether such a license represents a right-to-use the IP (at a point in time) or a right to access the IP (over time). Revenue is recognized immediately for a right-to-use license if the licensee can begin to use and benefit from the IP upon commencement of the license term and the Company has no further obligations in the context of the IP. A license is considered a right to access the IP when the Company undertakes activities during the license term that may significantly affect the IP, which directly exposes the customer to any positive or negative effects arising from such activities. These activities do not result in the immediate transfer of a good or service to the customer. As such, revenues from the right to access the IP are recognized over time.

Transaction prices for out-license arrangements may include fixed up-front amounts as well as variable consideration such as contingent development and regulatory milestones, sales-based milestones and royalties. The most likely amount method is used to estimate contingent development and regulatory milestones because the ultimate outcomes are binary in nature. Variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. To the extent arrangements include multiple performance obligations that are separable, the transaction price assigned to each distinct performance obligation is reflective of the relative stand-alone selling price when sold separately or estimated stand-alone selling price on the basis of comparable transactions with other customers when such goods or services are not sold separately. The residual approach is the method used to estimate a stand-alone selling price when the selling price for a good or service is highly variable or uncertain.

In determining the transaction prices, sales milestones and royalties attributable to licenses are excluded from the variable consideration guidance and recognized at the later of when the subsequent sales transaction occurs, or the satisfaction or partial satisfaction of the performance obligation to which some or all of the royalty has been allocated.

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***Current, Deferred Income Tax and Tax Credit***

The tax expense for the period comprises current and deferred tax. Tax is recognized in the consolidated statement of operation, except to the extent that it relates to items recognized in other comprehensive loss or directly in equity; in this case the related tax is recognized in other comprehensive loss or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Taxes on income are accrued in the same periods as the revenues and expenses to which they relate. Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the audited consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences or the unused tax losses can be utilized.

Deferred income tax assets from tax credit carryforwards are recognized to the extent that the national tax authority confirms the eligibility of such a claim and that the realization of the related tax benefit through future taxable profits is probable.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

***Employee Benefits***

*Pension Obligations*

We operate defined benefit and defined contribution pension schemes in accordance with the local conditions and practices in the countries in which we operate. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. A defined contribution plan is a pension plan under which we pay fixed contributions into a separate entity (a fund) and have no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to the employees' service in previous, current and future periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. However, as is the case with many Swiss pension plans, although the amount of ultimate pension benefit is not defined, certain legal obligations of the plan nevertheless create constructive obligations on the employer to pay further contributions to fund an eventual deficit. This results in the plan being accounted for as a defined benefit plan.

The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity that approximate to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used.

The current service cost of the defined benefit plan, recognized in the consolidated statement of operation in employee benefit expense, except where included in the cost of an asset, reflects the increase in the defined benefit obligation resulting from employee service in the current year.

Past service costs, resulting from a plan amendment or curtailment, are recognized immediately in the consolidated statement of operation.

The net interest cost is calculated by applying the discount rate to the net balance of the present value of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expenses in the consolidated statement of operation.

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Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive loss in the period in which they arise.

For defined contribution plans, we pay contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Once the contributions have been paid, we have no further payment obligations. The contributions are recognized as employee benefit expenses when they are due and are included in staff costs. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

*Share-Based Compensation Expense*

The fair value of shares or options granted, respectively, under share purchase or share option plans is recognized as an employee share-based compensation expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the shares or options granted:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• including any market performance conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excluding the impact of any service and non-market performance vesting conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• including the impact of any non-vesting conditions.

The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, we revise our estimate of the number of options that are expected to vest based on the non-market vesting and service conditions. We recognize the impact of the revision to original estimate, if any, within the consolidated statement of operation, with a corresponding adjustment to equity.

The proceeds received net of any directly attributable transaction costs are credited directly to equity.

The application of our accounting policy for share-based compensation is described below for each of our plans.

*2019 Equity Incentive Plan*

In November 2019, we adopted the 2019 Equity Incentive Plan to motivate and reward our employees, directors, consultants and advisors to further our best interest and those of our shareholders. Under the 2019 Equity Incentive Plan, we may at our discretion grant to plan participants (directors, certain employees and service providers working for the benefit of the Company at the time) awards in the form of restricted shares and restricted share units ("RSUs"), share options, share appreciation rights, performance awards ("PSUs") and other share-based awards.

Share options, RSUs and PSUs have been granted under this plan. The exercise price per share option was set by us at the fair market value of the underlying common shares on the date of grant, as determined by us. The awards generally vest 25% on the first anniversary of the date of grant, and thereafter evenly on a monthly basis over the subsequent three years. The contractual term of each option award granted is ten years. Under the grant, the options may be settled only in shares. Therefore, the grants of share options under this plan have been accounted for as equity-settled under IFRS 2.

We may grant RSUs to our directors, certain employees and service providers working for us at the time. The awards generally vest annually over a period of three years commencing on the first anniversary of the date of grant. Under the grant, the RSUs may be settled only in our common shares. Therefore, the grants of RSUs have been accounted for as equity-settled under IFRS 2.

In each accounting period, we take a charge for the vested portion of award grants and for partially earned but non-vested portions of award grants. This results in a front-loaded charge to the consolidated statement of operation. The charge to the consolidated statement of operation results in a corresponding credit being booked to "Other reserves" within equity.

Prior to our initial public offering, the determination of the fair value of awards involved the application of an adjusted form of the Black-Scholes option pricing model that took into account the strike price, the term of the award, the impact of dilution (where material), the share price at grant date and expected price volatility of the underlying share, the expected dividend yield, the risk-free interest rate for the term of the award and the correlations and volatilities of the shares of peer group companies. In addition, for awards granted on and subsequent to July 1, 2019 through our initial public offering, the fair value of grants was based on a probability-weighted expected returns method that took into account both the value derived by using an adjusted form of the Black-Scholes option pricing model and a discounted estimate of the price that may have been achieved in a future transaction. This method entailed further significant judgement, both in estimating a transaction price and in estimating the probabilities of different outcomes. The adjusted form of the Black-Scholes option pricing model used to derive a value for

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the common share price at grant date derived the implied equity value for one type of equity security from a contemporaneous transaction involving another type of security and considered the timing, amount, liquidation preferences and dividend rights of issues of preference shares.

After our initial public offering, the determination of the fair value of awards involves the application of the Black-Scholes option pricing model for our option equity awards, which utilizes certain assumptions including expected volatility, expected life and risk-free interest rate. In addition, the exercise price per share option is set by us at the fair market value of the underlying common shares on the date of grant, as determined by the us, which is generally the closing share price of our common shares traded on the NYSE.

We use an independent valuation firm to assist us in calculating the fair value of the award grants per participant.

***Inventory***

Inventory of ZYNLONTA is stated at the lower of cost or net realizable value with costs determined on a first-in, first-out basis. We assess the recoverability of capitalized inventory during each reporting period and will write down excess or obsolete inventory to its net realizable value in the period in which the impairment is identified within Cost of product sales in the consolidated statement of operation. We have not recorded any material inventory impairments since the FDA approved ZYNLONTA. Included in inventory are materials used in the production of preclinical and clinical products, which are charged to R&D expenses when consumed.

Prior to receiving FDA approval of ZYNLONTA, we had written down inventory costs relating to the manufacture of ZYNLONTA to a net realizable value of zero. We believed that capitalization of inventory costs associated with certain products prior to regulatory approval of such products, or for inventory produced in new production facilities, was only appropriate when management considered it highly probable that pre-approval inventory costs would be recoverable through future sales of the drug product. The determination to capitalize was based on the particular facts and circumstances related to the expected regulatory approval of the product or production facility being considered and, accordingly, the time frame within which the determination was made varied from product to product. The impairment charges were recorded as Research and development ("R&D") expenses in our consolidated statement of operation. Upon the receipt of FDA approval for ZYNLONTA during the year ended December 31, 2021, we reversed KUSD 8,100 of previously recorded impairment charges. The reversal of previously recorded impairment charges was based on a number of factors existing at that time, including the existence of inventory on hand and estimated demand, as well as expiration dating. The reversal of impairment charges was recorded as a gain to R&D expenses in our consolidated statement of operation.

We will continue to assess the likelihood that inventory costs associated with its other drug product candidates are recoverable through future sales of such product candidates to determine if and when such costs should be capitalized as inventory or be expensed to R&D expenses. The assessment of whether or not the product is considered highly probable to be saleable will be made on a quarterly basis and includes, but is not limited to, how far a particular product or facility has progressed along the approval process, any known safety or efficacy concerns, potential labeling restrictions and other impediments. If it is determined that inventory costs associated with a product candidate are not highly probable to be recovered through future sales, we would record such costs to R&D expenses.

***Intangible assets***

*<u>Licenses</u>*

Licenses acquired are capitalized as intangible assets at historical cost. Licenses with definite-useful lives are amortized over their useful lives, which are determined on a basis of the expected pattern of consumption of the expected future economic benefits embodied in the licenses and which therefore commence only once the necessary regulatory and marketing approval has been received. Prior to regulatory and marketing approval, licenses are treated as indefinite-lived assets and not amortized. These licenses are tested annually for impairment in the last quarter of each fiscal year and more frequently if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

*<u>Amortization and impairment of licenses</u>*

Prior to regulatory and marketing approval, impairment of indefinite-lived licenses is charged to R&D expenses. Subsequent to regulatory and marketing approval, amortization of licenses will be charged to Cost of product sales over the licenses' estimated useful lives. The useful life of definite-lived intangible assets will depend upon the legal term of the individual patent in the country in which the patent is obtained. In determining the useful life, we utilize the last-to-expire period of exclusivity (primary patent or regulatory approval) related to the primary marketed drug product. We may be able to obtain a patent term extension. However, we will only consider the inclusion of an extension period to the extent we believe it is highly probable of being granted. See note 17, "Intangible assets" within the audited consolidated financial statements for further information.

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*<u>Internally generated intangible assets</u>*

Internal R&D costs are fully charged to R&D expenses in the period in which they are incurred. We consider that regulatory and other uncertainties inherent in the development of new products preclude the capitalization of internal development expenses as an intangible asset until marketing approval from a regulatory authority is obtained in a major market such as the United States, the European Union or China.

Payments made to third parties, such as contract R&D organizations in compensation for subcontracted R&D, that are deemed not to transfer intellectual property to ADCT are expensed as internal R&D expenses in the period in which they are incurred. Such payments are only capitalized if they meet the criteria for recognition of an internally generated intangible asset, usually when marketing approval has been achieved from a regulatory authority in a major market. These internally generated intangible assets are recorded as an indefinite-lived intangible asset until regulatory approval is achieved and/or commercial launch. At that point, the asset will become a definite-lived intangible asset and we will commence amortization of the asset based on a systematic and rational approach. See note 17, "Intangible assets" within the audited consolidated financial statements for further information.

***Deferred royalty obligation***

On August 25, 2021, we entered into a royalty purchase agreement with certain entities managed by Healthcare Royalty Partners ("HCR"). We accounted for the initial cash received as debt, less transaction costs and will subsequently account for the value of the debt at amortized cost. The amount received by us will be accreted to the total estimated royalty payments over the life of the agreement which will be recorded as interest expense. The carrying value of the debt will decrease for royalty payments made to HCR based on actual net sales and licensing revenue. We will periodically assess the expected payments to HCR based on its underlying revenue projections and to the extent the amount or timing of such payments is materially different than its initial estimates will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in earnings as an adjustment to Financial income (expense) in the period in which the change in estimate occurred.

***Senior secured term loan facility***

The Company, ADCT UK and ADCT America entered into a USD 175.0 million Loan Agreement on August 15, 2022, pursuant to which the counterparty agreed to extend secured term loans to the Company in disbursements as follows: (i) a First Tranche and (ii) Future Tranches. See note 23, "Senior secured term loan facility and warrants."

*Accounting for the First Tranche* 

On August 15, 2022, the Company drew down the First Tranche of the senior secured term loans in the amount of USD 120.0 million and issued to the lenders under the Loan Agreement warrants to purchase an aggregate of 527,295 common shares, which warrants have an exercise price of USD 8.30 per share. These senior secured term loans have been recognized as a hybrid financial instrument and accounted for as two separate components: (i) a warrant obligation and (ii) a loan.

i) The warrant obligation is presented in the audited consolidated balance sheet as a liability given the warrants may be settled through a cash or cashless exercise by the warrant holder. The liability was initially measured at fair value using a Black-Scholes pricing model and is subsequently remeasured to fair value at each reporting date. Changes in the fair value (gains or losses) of the warrant obligation at the end of each period are recorded in the consolidated statement of operations.

ii) The senior secured term loan's initial fair value is the residual amount of the consideration received, net of attributable costs, after separating out the fair value of the warrant obligation. The loan is subsequently measured at its amortized cost using an EIR in accordance with IFRS 9. Given the interest rate in the senior secured term loans is variable and dependent upon market factors, the Company will update the EIR at the end of each reporting period for changes in the rate. The revised EIR will be used prospectively with no income or expense recorded in the period of interest rate change. The loan is presented as a financial liability in the audited consolidated balance sheet. The net present value of those cash outflows occurring within 12 months of the balance sheet date discounted at the same rate is presented as a short-term liability in the audited consolidated balance sheet. The remainder of the amount is presented as a long-term liability.

Expenses and fees payable upon the issuance of the First Tranche of senior secured term loans were allocated pro rata to the above two components. The share of expenses allocated to the warrant obligation were charged directly to the audited consolidated statement of operations, while the share of expenses allocated to the residual senior secured term loans was deducted from the loan and included in the calculation of the EIR.

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*Accounting for the Future Tranches* 

The Company has no obligation to draw down the Future Tranches of the senior secured term loans. Therefore, the Company will account for the Future Tranches when drawn upon as a liability and subsequently measure the liability at amortized cost in accordance with IFRS 9. Transaction costs associated with the Future Tranches will be deducted from the loan.

***Deerfield Warrants***

Pursuant to the exchange agreement with Deerfield entered into on August 15, 2022, the Company issued warrants to purchase an aggregate of 4,412,840 common shares. The agreement consists of warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share and warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 per share.

These warrants have been recognized as a warrant obligation and presented in the audited consolidated balance sheet as a liability given the warrants may be settled through a cash or cashless exercise by the warrant holder. The liability was initially measured at fair value and was determined to approximate the fair value of the existing embedded conversion option features immediately prior to the consummation of the Exchange Agreement. The liability is subsequently remeasured to fair value at each reporting date. Changes in the fair value (gains or losses) of the warrant obligation at the end of each period are recorded in the consolidated statement of operations. See note 25, "Deerfield Warrants."

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A.Directors and Senior Management**

The following table presents information about our current executive officers and directors. Ages are as of February 28, 2023.

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| | | |
|:---|:---|:---|
| **Name** | **Position(s)** | **Age** |
| **Executive Officers and Directors** | | |
| Ameet Mallik | Chief Executive Officer and Director | 50 |
| Jose "Pepe" Carmona | Chief Financial Officer | 50 |
| David Gilman | Chief Business and Strategy Officer | 50 |
| Peter Graham | Chief Legal Officer | 56 |
| Kristen Harrington-Smith | Chief Commercial Officer | 50 |
| Michael Mulkerrin | Chief Technical Operations Officer | 68 |
| Kimberly Pope | Chief People Officer | 56 |
| Susan Romanus | Chief Compliance Officer | 57 |
| Patrick van Berkel | Chief Scientific Officer | 54 |
| Mohamed Zaki | Chief Medical Officer | 58 |
| **Non-Executive Directors** |  |  |
| Ron Squarer | Chairman of the Board of Directors | 56 |
| Christopher Martin | Co-Founder and Director | 64 |
| Jean-Pierre Bizzari | Director | 68 |
| Stephen Evans-Freke | Director | 70 |
| Michael Forer | Vice Chairman of the Board of Directors | 57 |
| Peter Hug | Director | 64 |
| Viviane Monges | Director | 59 |
| Thomas Pfisterer | Director | 41 |
| Tyrell J. Rivers | Director | 50 |
| Victor Sandor | Director | 56 |
| Jacques Theurillat | Director | 63 |

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Unless otherwise indicated, the current business address for our executive officers and directors and our non-executive directors is ADC Therapeutics SA, Biopôle, Route de la Corniche 3B, 1066 Epalinges, Switzerland.

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**Executive Officers**

**Ameet Mallik** has been our Chief Executive Officer since May 2022 and a member of our board of directors since June 2022. From 2005 to April 2021, Mr. Mallik served in various positions at Novartis, including as Executive Vice President and Head, U.S. Oncology from November 2017 to April 2021 and as Senior Vice President, Head of Global Marketing, Value and Access from November 2015 to November 2017. Prior to that, Mr. Mallik held various commercial roles at Sandoz and was a Principal at McKinsey and Company. From May 2021 to January 2022, Mr. Mallik served as the Chief Executive Officer of Rafael Holdings, Inc. Mr. Mallik also serves on the board of directors of Atara Biotherapeutics, Inc. Mr. Mallik holds an M.B.A. from The Wharton School at the University of Pennsylvania, and an M.S. in Biotechnology and B.S. in Chemical Engineering, both from Northwestern University.

**Jose "Pepe" Carmona** has been our Chief Financial Officer since December 2022. From October 2020 to November 2022, Mr. Carmona served as Chief Financial Officer of Rubius Therapeutics, Inc. From May 2017 to September 2020, Mr. Carmona served as Chief Financial Officer of Radius Health, Inc. Prior to that, Mr. Carmona served as the Chief Financial Officer of Innocoll Holdings plc and its predecessor entity, Innocoll AG, and Chief Financial Officer of Alcon Europe, Middle East & Africa, a division of Novartis AG, and served in numerous financial management positions with increasing responsibility at Novartis. Mr. Carmona holds a B.S. in industrial civil engineering from Universidad Tecnica Federico Santa Maria and an M.B.A. from Columbia Business School.

**David Gilman** has been our Chief Business & Strategy Officer since July 2022. Mr. Gilman is responsible for all business development and portfolio strategy efforts globally. From April 2019 to June 2022, Mr. Gilman was a partner with ClearView Healthcare Partners. From May 2018 to April 2019, he served as the Global Head of Portfolio Strategy and Business Development of Novartis Oncology. Prior to that, he was a Managing Director with The Frankel Group and Huron Consulting Group. Mr. Gilman holds an M.B.A. from the Texas McCombs School of Business.

**Peter Graham** has been our Chief Legal Officer since November 2022. From 2015 until its sale to Halozyme Therapeutics, Inc. in 2022, Mr. Graham served as Executive Vice President, General Counsel, Chief Compliance Officer, Human Resources and Secretary of Antares Pharma, Inc., a commercial-stage specialty pharmaceutical and combination product company. Previously, he served as Executive Vice President, General Counsel, Chief Compliance Officer and Global Human Resources at Delcath Systems, Inc., a company with commercial operations in Europe focused on cancers of the liver. Earlier, Mr. Graham held leadership roles at ACIST Medical Systems, Inc., E-Z-EM, Inc., and AngioDynamics, Inc. Mr. Graham received his J.D. from Yeshiva University's Benjamin N. Cardozo School of Law and his B.A. in Political Science from the University of Wisconsin-Madison.

**Kristen Harrington-Smith** has been our Chief Commercial Officer since November 2022. From November 2021 to November 2022, she served as Chief Commercial Officer of Immunogen where she has been responsible for building the commercial organization and preparing for the launch of its first commercial product. From June 2000 to November 2021, she was in positions of increasing responsibility at Novartis, including as Vice President and Head, US Hematology at Novartis Pharmaceuticals, where she led the teams responsible for a portfolio of therapies in both malignant and non-malignant hematologic diseases including diffuse large B-cell lymphoma (DLBCL), acute myeloid leukemia, chronic myeloid leukemia, and myelodysplastic syndrome, and Vice President and Head, US CAR-T, responsible for the commercial launch of Kymriah®, the first CAR-T cell therapy for both DLBCL and acute lymphoblastic leukemia, building the management, sales, marketing, and market access teams, and supporting the launch of Gilenya® for the treatment of multiple sclerosis. Ms. Harrington-Smith holds an M.B.A. from the Kenan-Flagler Business School at the University of North Carolina and a B.A. from Williams College.

**Michael Mulkerrin, Ph.D.**, has been our Chief Technical Operations Officer since November 2022 and was previously our Vice President and Head of CMC from 2016 to 2022 and Head of CMC from 2014 to 2016. Prior to joining ADC Therapeutics, he was Vice President, Process Development and Manufacturing at OncoMed Pharmaceuticals. Prior to OncoMed, Dr. Mulkerrin was the Senior Director in Process Sciences at Amgen, where he led Analytical Biochemistry. He also served in leadership positions in the development of therapeutic monoclonal antibody projects at Genentech and Abgenix. In 2010, Dr. Mulkerrin was elected to the USP Council of Experts and is Chairman of the Biologics Monographs – Proteins Expert Committee. Dr. Mulkerrin has a B.S. in Biochemistry from the University of Massachusetts, Amherst, and a Ph.D. in Biochemistry from the University of Georgia, Athens.

**Kimberly Pope** has been our Chief People Officer since August 2020. From 2016 to 2020, Ms. Pope was the Senior Vice President, Head of Human Resources at Array BioPharma Inc. From 2013 to 2016, Ms. Pope was the Group Vice President, Human Resources at IDEX Corporation. Previously, Ms. Pope served in various senior positions at Hospira, Inc., including Director of Human Resources. Ms. Pope holds a B.B.A. in marketing and human resources management from the University of Iowa Tippie College of Business.

**Susan Romanus** has been our Chief Compliance Officer since June 2018. From 2015 to 2018, she served as Vice President, Compliance at Taiho Oncology, Inc. From 2009 to 2012, she served as Vice President, Chief Ethics & Compliance Officer at Daiichi Sankyo Company. Ms. Romanus holds a B.S. in biochemistry and cell biology from the University of California San Diego and an M.B.A. from the University of San Diego and a certificate in change leadership from Cornell University.

**Patrick van Berkel, Ph.D.**, has been our Chief Scientific Officer since August 2012. From 2003 to 2012, Dr. van Berkel served in various roles at Genmab A/S, including as Vice President of Antibody Technology and Vice President of Chemistry, Manufacturing and Control,

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Research and Development and as Director of Technology for the Antibody Technology division. Dr. van Berkel holds a B.S. in chemistry from the University of Nijmegen and a Ph.D. in chemistry from the University of Leiden.

**Mohamed Zaki, M.D., Ph.D.**, has been our Chief Medical Officer since January 2023. From September 2018 to December 2022, Dr. Zaki served in senior clinical development roles at AbbVie Inc., including as Vice President & Global Head of Oncology Clinical Development and Vice President & Global Head of Hematology Clinical Development. From February 2010 to September 2018, Dr. Zaki served in various senior clinical development roles at Celgene Corporation. Prior to that, Dr. Zaki worked at Sanofi-Aventis and Centocor, Inc., a subsidiary of Johnson & Johnson. Dr. Zaki holds an M.D. and an M.S. from Ain Shams University School of Medicine and a Ph.D. jointly from the University of Pennsylvania and Ain Shams University School of Medicine. Dr. Zaki also served on the faculty of both institutions and was a practicing physician earlier in his career.

**Non-Executive Directors** 

**Ron Squarer** has been the Chairman of our board of directors since April 2020. From 2012 to its acquisition by Pfizer, Inc. in August 2019, he served as the Chief Executive Officer at Array BioPharma Inc. Previously, Mr. Squarer served in various senior positions at Hospira, Inc., which was later acquired by Pfizer, Inc., including as Chief Commercial Officer. In addition, Mr. Squarer has held leadership roles at Pfizer Inc. (focused on oncology) and at SmithKline Beecham Pharmaceuticals (now GlaxoSmithKline plc). In addition to our board of directors, Mr. Squarer also serves as a member of the board of directors of Deciphera Pharmaceuticals, Inc. and Travere Therapeutics, Inc. Mr. Squarer holds a B.S. in biochemistry from the University of California, Berkeley, and an M.B.A. from Northwestern University's Kellogg School of Management.

**Christopher Martin**, **D.Phil.** has been a Non-Executive Director of our board of directors since June 2022 and was previously an Executive Director of our board of directors since our formation. From June 2015 until May 2022, he was our Chief Executive Officer. From 2000 to 2013, Dr. Martin was co-founder and Chief Executive Officer of Spirogen, which was acquired by AstraZeneca plc in 2013, at which point he became a member of both MedImmune's management leadership team and AstraZeneca plc's senior leaders group. Prior to this acquisition, Dr. Martin led numerous Spirogen collaboration transactions, including agreements with Genentech, Inc. and Seattle Genetics, Inc. He is currently a Non-Executive Chairman of Tokamak Energy Ltd. Dr. Martin holds a B.Sc. in chemical engineering from Aston University, a D.Phil. in engineering science from Oxford University and an M.B.A. from the International Institute for Management Development Lausanne and is a Fellow of the Institution of Chemical Engineers.

**Jean-Pierre Bizzari, M.D.**, has been a Non-Executive Director of our board of directors since June 2022. He is a member of the scientific advisory board of France's National Cancer Institute and a board member of the European Organisation of Research and Treatment of Cancer. From 2008 to 2015, Dr. Bizzari served as Executive Vice President, Group Head of Clinical Development Oncology at Celgene Corporation. Prior to that, he held various senior clinical development positions at Sanofi S.A., Aventis and Rhône-Poulenc. In addition to our board of directors, Dr. Bizzari also serves as a member of the board of directors of Halozyme Therapeutics, Inc., Oxford BioTherapeutics Limited, NETRIS Pharma SAS and Nordic Nanovector ASA. Dr. Bizzari holds an M.D. from Nice Medical School.

**Stephen Evans-Freke**, **M.A.**, has been a Non-Executive Director of our board of directors since June 2011. He is the co-founder and Managing General Partner of Auven Therapeutics Management L.L.L.P., Auven Therapeutics Holdings LP and its subsidiaries, of which he serves as Director, including C.T. Group Services Bermuda Ltd., C.T. Group Services America, Inc., C.T. Phinco SARL, A.T. Holdings II SARL, Kiacta SARL, ADC Products Switzerland SARL and ADC Products (UK) Ltd. Mr. Evans-Freke was also the co-founder, Chairman and Chief Executive Officer of Sugen, Inc. until its sale to Pharmacia Corporation. Previously, Mr. Evans-Freke was the President of PaineWebber Development Corporation, Managing Director of Blyth Eastman PaineWebber Inc. and a member of the board of directors of PaineWebber, Inc. In addition, he was the co-founder of CIBUS Global LLC, Fibrogen, Inc. and Royalty Pharma AG. Mr. Evans-Freke is also the Chairman and owner of Castle Freke Farms and Castle Freke Distillery, and is a 75% shareholder in HighCross Health Foods Limited, all located in Ireland. He is the Managing Partner and 50% shareholder of Water Island Development Company and the Chairman of AeroMD Air Ambulance Company, both located in the U.S. Virgin Islands. Mr. Evans-Freke holds an M.A. in law from Cambridge University.

**Michael Forer**, **LL.B.**, has been Vice Chairman of our board of directors since June 2015. From October 2020 to November 2022, Mr. Forer was our General Counsel, and from May 2016 to May 2020, Mr. Forer was our Chief Financial Officer, and from our formation to 2015, Mr. Forer was our Chief Executive Officer. From 2009 to 2013, Mr. Forer was a board member and Executive Director of Spirogen. Previously, Mr. Forer was the Managing Director for the investment activities of Auven Therapeutics Holdings L.P. and the co-founder and Managing Director of Rosetta Capital Limited, after starting his career at Rothschild Asset Management. Mr. Forer holds a B.A. in economics from the University of Western Ontario, an LL.B. from the University of British Columbia and a Diploma in international business from the University of Copenhagen.

**Peter Hug**, **Ph.D.**, has been a Non-Executive Director of our board of directors since June 2019. From 1983 to 2018, Dr. Hug served in various positions at F. Hoffmann-La Roche Ltd., including as head of Roche Pharma EEMEA region, head of Roche Pharma Europe region and Executive Vice President of Roche Pharma Partnering. In addition to our board of directors, Dr. Hug also serves as a member of the board of directors of Mundipharma MEA GmbH and at AC BioScience Ltd. Dr. Hug holds a Ph.D. in economics from the University of Basel.

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**Viviane Monge**s has been a Non-Executive Director of our board of directors since June 2021. From 2010 to 2017, she served in various senior financial leadership positions at Nestlé S.A., including as Vice President, Finance and Control from 2015 to 2017. Prior to that, Ms. Monges served as Group Chief Financial Officer of Galderma S.A., Global Chief Financial Officer of the OTC Division of Novartis A/G and Chief Financial Officer of the Global Pharma Business Unit at Wyeth Pharmaceuticals Inc. In addition to our board of directors, Ms. Monges serves on the board of directors of Novo Holdings A/S, Pharvaris, EUROAPI and Union Chimique Belge Biopharmaceutical Company S.A. (UCB). She holds a B.A. and an M.B.A. in finance and public administration from the École Supérieure de Commerce de Paris.

**Thomas Pfisterer** has been a Non-Executive Director of our board of directors since October 2016. Since 2015, Mr. Pfisterer has headed the direct investment activities of the WILD Family Investment Office. From 2011 to 2015, Mr. Pfisterer served as the head of strategic development of WILD Flavors GmbH, where he directed the company's global M&A activities. Previously, Mr. Pfisterer also worked in the investment banking division of Morgan Stanley Bank AG. In addition to our board of directors, Mr. Pfisterer also serves as a member of the board of directors of Sermonix Pharmaceuticals Inc., InSphero AG, Bloom Diagnostics AG and Imvax Inc. Mr. Pfisterer holds a B.A. in economics and a B.A. in business administration from the University of St. Gallen and an M.Phil. in finance from Cambridge University.

**Tyrell J. Rivers**, **Ph.D.**, has been a Non-Executive Director of our board of directors since June 2018. Since 2014, Dr. Rivers has been an Executive Director within AstraZeneca's Corporate Development Group. From 2009 to 2014, Dr. Rivers was at MedImmune Ventures specializing in biotechnology investing. In addition to our board of directors, Dr. Rivers also serves as a member of the board of directors of BioHealth Innovation, Cerapedics, Inc., Goldfinch Bio, Inc. and VaxEquity, Ltd. Dr. Rivers holds a B.S. in chemical engineering from the Massachusetts Institute of Technology, an M.S. in engineering from the University of Texas at Austin, an M.B.A. from New York University Stern School of Business and a Ph.D. in chemical engineering from the University of Texas at Austin.

**Victor Sandor, M.D. C.M.**, has been a Non-Executive Director of our board of directors since April 2020. From 2014 to its acquisition by Pfizer, Inc. in August 2019, he served as the Chief Medical Officer at Array BioPharma Inc. Previously, Dr. Sandor served in various senior positions at Incyte Corporation, including as Senior Vice President of Global Clinical Development, at Biogen Idec, including as Vice President and Chief Medical Officer for Oncology, and at AstraZeneca plc. In addition to our board of directors, Dr. Sandor also serves as a member of the board of directors of Merus N.V., Prelude Therapeutics Inc., Istari Oncology, Inc. and Kymera Therapeutics. Dr. Sandor holds a M.D. C.M from McGill University and completed a Fellowship in Medical Oncology at the National Cancer Institute in Bethesda Maryland.

**Jacques Theurillat**, **LL.B.**, has been a Non-Executive Director of our board of directors since July 2015. Since 2016, he has been a partner at the Sofinnova Crossover Fund. From 2008 to 2015, Mr. Theurillat served as the Chief Executive Officer of Ares Life Sciences AG. Previously, Mr. Theurillat was the Chief Financial Officer and Deputy CEO of Serono S.A. In addition to our board of directors, Mr. Theurillat also serves as a member of the board of directors of Mundipharma Ltd. Mr. Theurillat holds an LL.B. from both Madrid University and Geneva University, an M.B.A. from Centro Estudios Financieros and a Swiss federal diploma in tax.

**Relationships**

There are no family relationships between any of our directors or executive officers.

**B.Compensation**

**Compensation of Directors and Executive Officers**

For the year ended December 31, 2022, the aggregate compensation accrued and paid to the members of our board of directors and our executive officers for services in all capacities, including retirement and similar benefits, was USD 12.6 million. During the year ended December 31, 2022, the total fair value of stock options and non-vested share awards (restricted shares and restricted share units) granted to directors and executive officers was USD 33.5 million. The amount set aside or accrued by us to provide pension, retirement or similar benefits to members of our board of directors and executive officers amounted to USD 0.5 million in the year ended December 31, 2022. We are required to provide additional information regarding the compensation of our directors and executive officers under Swiss law. We incorporate by reference into this Annual Report the information in "2. Compensation of the Board of Directors" and "3. Compensation of the Members of Executive Management" included within the "Compensation Report of ADC Therapeutics SA for the Year Ended December 31, 2022" of Exhibit 99.1 to our report on Form 6-K filed with the SEC on March 15, 2023.

**Equity Incentive Plans**

***2019 Equity Incentive Plan***

The purpose of the 2019 Equity Incentive Plan is to motivate and reward performance of our employees, directors, consultants and advisors and further the best interests of the Company and our shareholders.

*Plan Administration*. The 2019 Equity Incentive Plan is administered by the compensation committee of our board of directors, subject to the board of directors' discretion to administer or appoint another committee to administer it.

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*Eligible Participants*. The administrator is able to offer equity awards at its discretion under the 2019 Equity Incentive Plan to: (1) any employees of us or any of our subsidiaries; (2) any non-employee directors serving on our board of directors; and (3) any consultants or other advisors to us or any of our subsidiaries. The administrator of the plan may determine that an award for the benefit of a non-employee director will be granted to an affiliate of such director, but only to the extent consistent with the registration of shares offered under the plan on Form S-8 under the Securities Act.

*Awards*. The maximum number of common shares in respect of which awards may be granted under the 2019 Equity Incentive Plan is 17,741,355 common shares (including share-based equity awards granted to date, less awards forfeited), subject to adjustment in the event of certain corporate transactions or events if necessary to prevent dilution or enlargement of the benefits made available under the plan. Equity incentive awards under the 2019 Equity Incentive Plan may be granted in the form of options, share appreciation rights, restricted shares, restricted share units, performance awards or other share-based awards but not "incentive stock options" for purposes of U.S. tax laws. Options and share appreciation rights will have an exercise price determined by the administrator but will not be less than fair market value of the underlying common shares on the date of grant.

*Vesting*. The vesting conditions for grants under the equity incentive awards under the 2019 Equity Incentive Plan are set forth in the applicable award documentation.

*Termination of Service and Change in Control*. In the event of a participant's termination of employment, the compensation committee may, in its discretion, determine the extent to which an equity incentive award may be exercised, settled, vested, paid or forfeited. In the event of our termination of a participant's employment without cause or a participant's resignation for good reason (as defined in the 2019 Equity Incentive Plan) upon or within 18 months following a change in control of the company (as defined in the 2019 Equity Incentive Plan), any awards outstanding to the participant (unless otherwise provided in the award agreement) will immediately vest and settle, and options and share appreciation rights will become fully exercisable. In the event of a change in control that involves a merger, acquisition or other corporate transaction, any outstanding award not assumed, substituted, replaced or continued in connection with the transaction will immediately vest and settle, and options and share appreciation rights will become fully exercisable. In connection with a change of control of the Company, the compensation committee may, in its discretion, take any one or more of the following actions with respect to outstanding awards: (i) cancel any such award, in exchange for a payment in cash, securities or other property or any combination thereof with a value equal to the value of such award based on the per share value of common shares received or to be received by other shareholders in the event (or without payment of consideration if the committee determines that no amount would have been realized upon the exercise of the award or other realization of the participant's rights); (ii) require the exercise of any outstanding option; (iii) provide for the assumption, substitution, replacement or continuation of any award by the successor or surviving corporation, along with appropriate adjustments with respect to the number and type of securities (or other consideration) of the successor or surviving corporation, subject to any replacement awards, the terms and conditions of the replacement awards (including performance targets) and the grant, exercise or purchase price per share for the replacement awards; (iv) make any other adjustments in the number and type of securities (or other consideration) subject to (a) such awards and in the terms and conditions of such awards in order to prevent the dilution or enlargement of benefits intended to be made available under the 2019 Equity Plan and (b) awards that may be granted in the future; (v) provide that any such award shall be accelerated and become exercisable, payable and/or fully vested with respect to all shares covered thereby or (vi) provide that any award shall not vest, be exercised or become payable as a result of such event.

*Termination and Amendment*. Unless terminated earlier, the 2019 Equity Incentive Plan will continue for a term of ten years. Our board of directors has the authority to amend or terminate the 2019 Equity Incentive Plan subject to shareholder approval with respect to certain amendments. However, no such action may impair the rights of the recipient of any options unless agreed to by the recipient.

During the year ended December 31, 2022, we have granted to members of our board of directors and to our executive officers, in the aggregate, the right to acquire 3,593,928 common shares at a weighted-average price of USD 8.63 per common share and have granted RSUs of 1,676,042 at a weighted-average grant date fair value of USD 8.10 under the 2019 Equity Incentive Plan. The expiration dates for these awards extend through 2032. On March 7, 2022, we issued our annual equity award and granted to certain of our board of directors and executive officers, in the aggregate, options to purchase 828,500 common shares at a weighted price of USD 14.00 and 142,967 RSUs at a weighted average grant date fair value of USD 14.00. On May 11, 2022, the Company issued a special retention award to select executive officers, which was approved by the Compensation Committee of the Board of Directors and consisted of 1,298,700 RSU's at a weighted average grant date fair value of USD 6.93. Options generally vest 25% on the first anniversary of the date of grant, and thereafter for three-years, evenly on a monthly basis. The restricted share units generally vest ratably over a three-year period, subject to the executive officer's continued employment with us, and any unvested RSUs will be forfeited should the executive officer terminate his or her employment with us.

***Employee Stock Purchase Plan***

In June 2022, the Company adopted the 2022 ESPP, which was approved by shareholders at the Company's 2022 Annual General Meeting. The Company has 782,700 common shares reserved and available for the future issuance. The number of shares available for grant and issuance under the 2022 ESPP will increase on January 1st of each of the first ten calendar years during the term of the 2022 ESPP by the number of shares equal to 1% of the shares outstanding as of the immediately preceding December 31st, or lesser number as may be

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determined by the Board. The aggregate number of shares that may be issued under the 2022 ESPP Plan is equal to 1% of the ordinary share capital of the Company.

The 2022 ESPP allows eligible employees to purchase designated shares of the Company's common shares at a discount, over a series of offering periods through accumulated payroll deductions. No offering period may be longer than 27 months. The purchase price for shares purchased under the 2022 ESPP during any given purchase period will be 85% of the lesser of the market price of the Company's common shares on (i) the offering date or (ii) the purchase date.

**Employment Agreements**

We have entered into employment agreements with certain of our executive officers. Each of these agreements provides for an initial salary and annual bonus opportunity, as well as participation in certain pension and welfare benefit plans. These agreements generally require advance notice of termination, from two to 12 months, and in some cases provide for paid garden leave. Some of our executive officers have agreed to covenants not to compete against us or solicit our employees or customers during employment and for a period of up to one year following termination. We may be required to pay some of our executive officers compensation for their covenant not to compete with us following termination.

**C.Board Practices**

**Board Composition**

Our board of directors is composed of 12 members. Each director is elected for a one-year term. The current members of our board of directors were elected at our shareholders' meeting on June 30, 2022, to serve until our annual general meeting of shareholders in 2023.

**Board Practices**

We are a foreign private issuer under the rules of the SEC. As a result, in accordance with the NYSE listing standards, we rely on home country governance requirements and certain exemptions thereunder rather than on NYSE corporate governance requirements, including the requirements. For an overview of our corporate governance principles, see "Item 10. Additional Information—B. Memorandum and Articles of Association" and "Item 16G—Corporate Governance."

**Board Meetings**

Our board of directors held eight meetings in 2022.

**Director Independence**

Our board of directors has affirmatively determined that each of Jean-Pierre Bizzari, Peter Hug, Viviane Monges, Thomas Pfisterer, Tyrell J. Rivers, Victor Sandor, Stephen Evans-Freke and Jacques Theurillat is an independent director within the meaning of NYSE standards.

**Diversity**

Our board of directors value diversity among its members. Our nomination and corporate governance committee, within the purview of its mandate, has the responsibility to take diversity into consideration as part of the overall director selection and nomination processes and to make the identification of diverse candidates a search criterion. As of the date of this Annual Report, our board of directors includes 11 male directors and 1 female director.

**Committees of the Board of Directors**

Our board of directors has established four separate committees: an audit committee, a compensation committee, a nomination and corporate governance committee and a science and technology committee.

***Audit Committee***

The audit committee, which consists of Viviane Monges (chair) and Jacques Theurillat, assists our board of directors in overseeing our accounting and financial reporting processes and the audits of our consolidated financial statements. In addition, the audit committee is directly responsible for the compensation, retention and oversight of the work of our independent registered public accounting firm that our shareholders elect as our external auditors. The audit committee consists exclusively of members of our board of directors who are financially literate, and each of Vivian Monges and Jacques Theurillat is considered an "audit committee financial expert" as defined by the SEC. Our audit committee complies with Rule 10A-3(b)(1) of the Exchange Act. Our board of directors has determined that all members of the audit committee satisfy the "independence" requirements set forth in Rule 10A-3 under the Exchange Act.

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The audit committee is governed by a charter that complies with the NYSE listing standards that apply to us. The audit committee has the responsibility to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pre-approve the audit services and non-audit services (including the fees and terms thereof) to be provided by the independent auditor pursuant to pre-approval policies and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluate the independent auditor's qualifications, performance and independence, and present its conclusions with respect to the independent auditor to the board of directors on at least an annual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• confirm and evaluate the rotation of the audit partners on the audit engagement team as required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, review management's plans with respect to the responsibilities, budget and staffing of the internal audit function and its plans for the implementation of the internal audit function, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and discuss with management and the independent auditor the annual audited consolidated and stand-alone financial statements and unaudited quarterly financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review with management, personnel responsible for the design and implementation of the internal audit function and the independent auditor (i) any analyses or other written communications prepared by management and/or the independent auditor setting forth significant financial reporting issues and judgments made in connection with the preparation of the financial statements, (ii) the Company's critical accounting policies and practices, (iii) the effect of regulatory and accounting initiatives, as well as off-balance sheet transactions and structures, on the Company's financial statements and (iv) any major issues regarding accounting principles and financial statement presentations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review the type and presentation of information included in the earnings press releases, as well as financial information and earnings guidance provided to analysts and rating agencies, and may review earnings press releases prior to public dissemination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in conjunction with the chief executive officer and chief financial officer, review disclosure controls and procedures and internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review policies and practices with respect to risk assessment and risk management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review any major litigation or investigations against the Company that may have a material impact on the Company's financial statements.

The audit committee meets as often as it determines is appropriate to carry out its responsibilities, but in any event meets at least four times per year.

***Compensation Committee***

The compensation committee, which consists of Peter Hug (chair), Stephen Evans-Freke and Thomas Pfisterer, supports our board of directors in establishing and reviewing the compensation and benefits strategy and guidelines as well as in preparing the proposals to the annual general meeting of shareholders regarding the compensation of the members of the board of directors and the executive officers. The compensation committee may submit proposals to the board of directors on other compensation-related matters. Swiss law requires that we have a compensation committee, so in accordance with NYSE listing standards, we follow home country requirements with respect to the compensation committee. As a result, our practice varies from NYSE listing standards, which set forth certain requirements as to the responsibilities, composition and independence of compensation committees for domestic issuers. Swiss law requires that our board of directors submit the aggregate amount of compensation of all members of our board of directors and of all executive officers to a binding shareholder vote every year. The members of the compensation committee are elected by our annual general meeting of shareholders. The board of directors appoints the chair of the compensation committee and fills any vacancies until the following annual general meeting of shareholders.

The compensation committee has the responsibility to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regularly review and make recommendations to the board of directors regarding our compensation and benefits strategy and guidelines;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare the proposals to the shareholders' meeting regarding the compensation of the members of the board of directors and the executive committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regularly review and make recommendations to the board of directors regarding the compensation of the members of the board of directors and of the executive committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and approve the recommendation of our chief executive officer regarding the fixed and variable compensation, including incentive plan participation and benefits, of the members of the management team other than members of the executive committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and make recommendations to the board of directors regarding our compensation and benefits plans (cash and/or equity-based plans) and, where appropriate or required, make recommendations to adopt, amend and terminate such plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent not delegated by the compensation committee to a different body or a third party, administer our compensation and benefits plans (other than equity-based plans);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and assess risks arising from our employee compensation policies and practices and whether any such risks are reasonably likely to have a material adverse effect on us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discharge any other tasks allocated or delegated to it by the board of directors.

***Nomination and Corporate Governance Committee***

The nomination and corporate governance committee, which consists of Jean-Pierre Bizzari and Viviane Monges, is responsible for director and board committee nominations, succession planning, performance evaluation and reviewing and amending, if required, our corporate governance framework and guidelines. The members of the nomination and corporate governance committee and its chair are appointed by our board of directors.

The nomination and corporate governance committee has the responsibility to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determine selection criteria for the succession of the members of the board of directors and board committees, our chief executive officer, our chief financial officer and our executive vice president, and establish such succession planning (including for the event of the incapacitation, retirement or removal of such individuals) by making recommendations to the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• oversee searches and identify qualified individuals for membership on the board of directors and for the position of chief executive officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommend individuals for membership on the board of directors and board committees and for the position of chief executive officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, prepare the board of directors' assessment of the performance of the board of directors and board committees and of our chief executive officer and review the recommendations of the other board committees based on their evaluation of their own performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review the recommendations of the other board committees based on their self-evaluations and discuss its self-evaluation with the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitor and assess developments and trends in corporate governance to the extent that these do not have an impact on the activities and tasks of the audit committee or the compensation committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review proposals to be made to the board of directors for the amendment of our amended and restated articles of association, our organizational regulations, any other rules or regulations and the Code of Conduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• periodically review and reassess the adequacy of the Code of Conduct and recommend any proposed changes to the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• periodically review and assess the adequacy of the charter of the nomination and corporate governance committee and recommend any proposed changes to the board of directors for approval;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if it deems advisable, develop and recommend to the board of directors corporate governance guidelines for the Company, and, if such guidelines are adopted, periodically review and reassess the adequacy of such guidelines, consider any requests for waivers of such guidelines and make recommendations to the board of directors regarding amendments and requests for waivers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• oversee compliance with the Code of Conduct and report on such compliance to the board of directors.

***Science and Technology Committee***

The science and technology committee, which consists of Christopher Martin (Chair), Jean-Pierre Bizzari, Tyrell J. Rivers and Victor Sandor is responsible for reviewing and making recommendations to the board of directors regarding our research and development activities, strategies, programs and objectives. The members of the science and technology committee and its chair are appointed by our board of directors.

The science and technology committee has the responsibility to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** review and make recommendations to the board of directors regarding our preclinical and clinical research and development activities, including related CMC activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and make recommendations to the board of directors regarding preclinical and clinical research and development strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and make recommendations to the board of directors regarding our preclinical and clinical research guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide strategic advice to the board of directors regarding emerging science and technology issues and trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• examine periodically our measures to keep the research and development personnel motivated, productive and entrepreneurially oriented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensure, through regular review and consultation with the Chief Executive Officer and his team, that appropriate research and development objectives are in place that are aligned with our overall research and development strategy, and that progress against these objectives is being appropriately assessed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensure that appropriate market potential assessments are being conducted.

**D.Employees**

As of December 31, 2022, we had 317 employees, 165 of whom have an advanced academic degree (Diploma/Master, D.Phil., Ph.D., M.D.). As of December 31, 2022, 233 of our employees were located in the United States, 56 in the United Kingdom and 28 in Switzerland. We are not subject to collective bargaining agreements or similar labor contracts and do not have a workers' council. We believe that our relationship with our employees is good. We provide competitive compensation and benefits to our employees, actively promote diversity and inclusion among our workforce, and strive to maintain a safe and healthy workplace for our employees. We describe these efforts, among other topics, in our Environmental, Social & Governance Report, which is available on our website. Neither the Environment, Social & Governance Report nor our website is incorporated by reference into this Annual Report.

**E. Share Ownership**

See "Item 7. Major Shareholders and Related Party Transactions—A. Major shareholders."

**F. Actions to Recover Erroneously Awarded Compensation**

Not applicable

**ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A.Major Shareholders**

The following table presents information relating to the beneficial ownership of our common shares as of February 1, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person, or group of affiliated persons, known by us to own beneficially 5% or more of our outstanding common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our executive officers and directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all executive officers and directors as a group.

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The number of common shares beneficially owned by each entity, person, executive officer or director is determined in accordance with the rules of the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any common shares over which the individual has sole or shared voting power or investment power as well as any common shares that the individual has the right to acquire within 60 days from February 1, 2023 through the exercise of any option or other right. Except as otherwise indicated, and subject to applicable community property laws, we believe that the persons named in the table have sole voting and investment power.

The percentage of outstanding common shares beneficially owned is computed based on 80,642,527 common shares outstanding as of February 1, 2023, except that ownership has been updated to reflect the public offering of 12,000,000 common shares by A.T. Holdings II Sàrl on February 2, 2023. Common shares that a person has the right to acquire within 60 days are deemed outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person, except with respect to the percentage ownership of all executive officers and directors as a group. Unless otherwise indicated below, the business address for each beneficial owner is ADC Therapeutics SA, Biopôle, Route de la Corniche 3B, 1066 Epalinges, Switzerland.

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| | | |
|:---|:---|:---|
| **Principal Shareholders** | **Number of Common Shares <br>Beneficially Owned** | **Percentage of Common Shares Beneficially Owned** |
| **5% Shareholders** | | |
| Redmile Group LLC <sup>(1)</sup> | 13565249 | 16.8% |
| Entities affiliated with Dr. Hans-Peter Wild <sup>(2)</sup> | 9773688 | 12.1% |
| Entities affiliated with Auven Therapeutics GP Ltd. <sup>(3)</sup> | 6327423 | 7.8% |
| FMR LLC <sup>(4)</sup> | 4653453 | 5.8% |
| **Executive Officers and Directors** |  |  |
| Jean-Pierre Bizzari |  | \* |
| Jose "Pepe" Carmona |  | \* |
| Stephen Evans-Freke <sup>(5)</sup> | 6351972 | 7.9% |
| Michael Forer <sup>(6)</sup>  | 858456 | 1.1% |
| David Gilman |  | \* |
| Peter Graham |  | \* |
| Kristen Harrington-Smith |  | \* |
| Peter Hug | 87466 | \* |
| Ameet Mallik |  | \* |
| Christopher Martin <sup>(7)</sup> | 1968743 | 2.4% |
| Viviane Monges | 28044 | \* |
| Michael Mulkerrin | 88537 | \* |
| Thomas Pfisterer | 570822 | \* |
| Kimberly Pope | 208424 | \* |
| Tyrell J. Rivers <sup>(8)</sup> |  | \* |
| Susan Romanus | 57426 | \* |
| Victor Sandor | 32879 | \* |
| Ron Squarer <sup>(9)</sup> | 1506898 | 1.9% |
| Jacques Theurillat | 123751 | \* |
| Patrick van Berkel <sup>(10)</sup>  | 623467 | \* |
| Mohamed Zaki |  | \* |
| All executive officers and directors as a group (21 persons) | 12506885 | 15.5% |

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\*Less than 1% of our total outstanding common shares.

<sup>(1)</sup> This information is based on a Schedule 13G/A filed with the SEC on February 10, 2023 by Redmile Group, LLC and Jeremy C. Green, which reported shared power to vote with respect to 13,565,249 common shares and shared power of disposition with respect to 13,565,249 common shares. The common shares are owned by certain private investment vehicles and/or separately managed accounts managed by Redmile Group, LLC. The reported securities may be deemed beneficially owned by Redmile Group, LLC as investment manager of such private investment vehicles and/or separately managed accounts, as well as by Jeremy C. Green as the principal of Redmile Group, LLC. Redmile Group, LLC and Mr. Green each disclaim beneficial ownership of these shares, except to the extent of its or his pecuniary interest in such shares, if any. The business address of each of Redmile Group, LLC and Mr. Green is One Letterman Drive, Building D, Suite D3-300, The Presidio of San Francisco, San Francisco, California 94129.

<sup>(2)</sup> The principal business of HPWH TH AG ("HPWH") is holding investment rights in, directly or indirectly, ADC Therapeutics. HP WILD Holding AG ("HPW Holding") is an intermediary holding company. Dr. Hans-Peter Wild is the chairman of HPWH and HPW Holding. Thomas Pfisterer is a board member of HPWH and an investment manager. By reason of a stockholders' agreement by and among Mr. Pfisterer and HPW Holding and their joint indirect minority equity interest in HPWH via their joint ownership of HPWH MH AG ("MH"), which owns a 12.5% interest in HPWH, Mr. Pfisterer may be deemed to have shared voting and investment power with respect to

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such shares held of record by HPWH. However, Mr. Pfisterer disclaims beneficial ownership of all common shares held of record by HPWH other than the shares indirectly represented by his 41.7% interest in MH. The business address of each of HPWH, HPW Holding, Dr. Wild and Mr. Pfisterer is HPWH is Neugasse 22, 6300 Zug, Switzerland.

<sup>(3)</sup> C.T. Phinco Sàrl ("C.T. Phinco") may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by A.T. Holdings II Sàrl ("A.T. Holdings II") as the Sole Member of A.T. Holdings II. Auven Therapeutics Holdings L.P. ("Auven Therapeutics") may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by A.T. Holdings II as the Sole Member of C.T. Phinco. Auven Therapeutics General L.P. ("Auven Therapeutics General") may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by A.T. Holdings II as the general partner of Auven Therapeutics. Auven Therapeutics GP Ltd. ("Auven Therapeutics GP") may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by A.T. Holdings II as the general partner of Auven Therapeutics General. Each of Stephen Evans-Freke and Peter B. Corr may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by A.T. Holdings II as each is a Director and a 50% control person of Auven Therapeutics GP and a Principal of Auven Therapeutics. A.T. Holdings II may be deemed to have voting and investment power over and thus beneficial ownership of the 2,228,085 common shares beneficially owned by ADC Products Switzerland Sàrl ("ADC Products") as the 73.77% control person of ADC Products. C.T. Phinco may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by ADC Products as the Sole Member of A.T. Holdings II. Auven Therapeutics may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by ADC Products as the Sole Member of C.T. Phinco. Auven Therapeutics General may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by ADC Products as the general partner of Auven Therapeutics. Auven Therapeutics GP may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by ADC Products as the general partner of Auven Therapeutics General. Each of Stephen Evans-Freke and Peter B. Corr may be deemed to have voting and investment power over and thus beneficial ownership of the common shares beneficially owned by ADC Products as each is a Director and a 50% control person of Auven Therapeutics GP and a Principal of Auven Therapeutics. All common shares held by A.T. Holdings have been pledged pursuant to lending arrangements. The address of each of A.T. Holdings and ADC Products is Biopôle, Route de la Corniche 3B, 1066 Epalinges, Switzerland. The address of C.T. Phinco is 6 Rue Eugene Ruppert, L-2453 Luxembourg, Luxembourg. The address of Auven Therapeutics, Auven Therapeutics General and Auven Therapeutics GP is Ritter House, P.O. Box 4041, Wickhams Cay II, Road Town, Tortola, BVI VG1110. The business address of Mr. Corr and Mr. Evans-Freke is 6501 Redhook Plaza, Suite 201, St. Thomas, U.S. Virgin Islands 00802.

<sup>(4)</sup> This information is based on a Schedule 13G/A filed with the SEC on February 9, 2023 by FMR LLC, which reported sole power to vote with respect to 4,629,165 common shares and sole power of disposition with respect to 4,653,453 common shares. All common shares are beneficially owned, or may be deemed to be beneficially owned, by FMR LLC, certain of its subsidiaries and affiliates and other companies. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders' voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders' voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act advised by Fidelity Management & Research Company LLC, a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds' Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds' Boards of Trustees. The business address of FMR LLC is 245 Summer Street, Boston, Massachusetts 02210.

<sup>(5)</sup> Includes 3,500 shares held by Mr. Evans-Freke. As described in footnote (1), the sole shareholders of Auven Therapeutics GP Ltd., Mr. Corr and Mr. Evans-Freke, may be deemed to have shared voting and investment power with respect to the common shares held by entities affiliated with Auven Therapeutics GP Ltd.

<sup>(6)</sup> Does not include common shares held by Dune Capital Inc., a company which is wholly-owned by a trust whose beneficiaries include Mr. Forer and his family. Mr. Forer does not exercise investment or voting control over the trust, and therefore such shares do not appear in the table above.

<sup>(7)</sup> Includes 981,745 shares held by Dr. Martin's spouse and 517,575 shares held by a family trust in which Dr. Martin, his spouse and certain of his other family members are beneficiaries and for which Dr. Martin and his spouse serve as protectors with the ability to appoint and remove the trustee.

<sup>(8)</sup> Mr. Rivers, an executive director within AstraZeneca's corporate development group, disclaims beneficial ownership with respect to the 4,011,215 common shares held of record by AstraZeneca.

<sup>(9)</sup> Includes 159,026 shares held by a trust in which Mr. Squarer serves as a settlor and trustee.

<sup>(10)</sup> Consists of common shares held by Dr. van Berkel and by Betulamab B.V., a Dutch private limited liability company of which Dr. van Berkel is beneficial owner. The registered office address of Betulamab B.V. is Neerdyck 3, 3601 CZ Maarssen, The Netherlands.

**Holders**

As of February 27, 2023, we had 127 shareholders of record of our common shares. We estimate that as of January 31, 2023, approximately 62% of our outstanding common shares are held by 108 U.S. record holders. The actual number of shareholders is greater than this number of record holders and includes shareholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust or by other entities.

**Significant Changes in Ownership by Major Shareholders** 

We have experienced significant changes in the percentage ownership held by major shareholders in the past three years. Prior to our initial public offering, our principal shareholders were entities affiliated with Auven Therapeutics GP Ltd., AstraZeneca UK Limited and HPWH TH AG, which held common shares representing 41.0%, 6.7% and 10.6% of our outstanding common shares. As of February 1, 2023, to our knowledge, Auven Therapeutics GP Ltd. and HPWH TH AG held common shares representing 7.8% and 12.1% of our common shares outstanding, respectively. Redmile Group LLC held common shares representing 16.8%, while AstraZeneca UK Limited held common shares representing less than 5% of our common shares outstanding.

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**B.Related Party Transactions**

The following is a description of certain related party transactions we have entered into since January 1, 2022 with any of our executive officers, directors or their affiliates and holders of more than 10% of any class of our voting securities in the aggregate, which we refer to as related parties, other than compensation arrangements which are described under "Item 6. Directors, Senior Management and Employees."

**Indemnification Agreements**

We have entered into indemnification agreements with our executive officers and directors. The indemnification agreements and our amended and restated articles of association require us to indemnify our executive officers and directors to the fullest extent permitted by law.

**Auven Letter and 365-Day Lockup Agreement**

On February 2, 2023, we entered into a letter agreement (the "Auven Agreement") with A.T. Holdings II Sàrl ("A.T. Holdings II"), pursuant to which we agreed to assist A.T. Holdings II effect the registration under the Securities Act of 1933, as amended (the "Securities Act"), of at least 12,000,000 common shares held by it and to facilitate the potential public offering of such common shares. No other registration rights has been granted to A.T. Holdings II for any other shares. The public offering contemplated by the Auven Agreement occurred on February 2, 2023.

In consideration for our assistance, A.T. Holdings II agreed that, without our prior written consent, until February 2, 2024, it will not, and will not publicly disclose an intention to offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any of our common shares or any other securities convertible into or exercisable or exchangeable for our common shares, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our common shares. The foregoing restrictions do not apply to any transfers or dispositions to affiliates (provided that such recipient enters into a customary lock-up agreement with us), any transfers or dispositions to partners, members, stockholders or other equity holders or those of a subsidiary (provided that such recipient is not the lockup party or an affiliate of the lockup party and such recipient enters into a customary lock-up agreement with us), sales in the public offering described above, pledges to Oaktree Fund Administration, LLC ("Oaktree") pursuant to debt agreements and any transfers to Oaktree upon foreclosure, and transfers in connection with a change-of-control transaction. We, in our sole discretion, may release the common shares and other securities subject to the foregoing restrictions in whole or in part at any time. In addition, A.T. Holdings II has agreed that, if during the restricted period we launch and close an underwritten equity primary financing resulting at least USD 50 million net proceeds (after underwriting discount and commission), it will enter into a customary 90-day lockup agreement with the underwriters of such offering. A.T. Holdings II reimbursed us for certain expenses incurred in connection with the registration and public offering of the common shares. We and A.T. Holdings II agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act.

**Related Person Transaction Policy**

We have adopted a related person transaction policy, which states that any related person transaction must be approved or ratified by our audit committee or board of directors. In determining whether to approve or ratify a transaction with a related person, our audit committee or board of directors will consider all relevant facts and circumstances, including, without limitation, the commercial reasonableness of the terms of the transaction, the benefit and perceived benefit, or lack thereof, to us, the opportunity costs of an alternative transaction, the materiality and character of the related person's direct or indirect interest and the actual or apparent conflict of interest of the related person. Our audit committee or board of directors will not approve or ratify a related person transaction unless it has determined that, upon consideration of all relevant information, such transaction is in, or not inconsistent with, our best interests and the best interests of our shareholders.

**ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL INFORMATION**

**A.Consolidated Statements and Other Financial Information** 

**Financial Statements**

See "Item 18. Financial Statements," which contains our financial statements prepared in accordance with IFRS.

**Legal Proceedings**

From time to time, we may be subject to various legal proceedings and claims that arise in the ordinary course of our business activities. The results of litigation and claims cannot be predicted with certainty. As of the date of this Annual Report, we do not believe that we are party to any claim or litigation, the outcome of which would, individually or in the aggregate, be reasonably expected to have a material adverse effect on our business.

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**Dividends and Dividend Policy**

We have never declared or paid cash dividends on our share capital. We intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business and we do not anticipate paying any cash dividends in the foreseeable future. In addition, the Loan Agreement limits our ability to pay dividends. Any future determination related to dividend policy will be made at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects and other factors our board of directors may deem relevant.

Under Swiss law, any dividend must be approved by our shareholders. In addition, our auditors must confirm that the dividend proposal of our board of directors to the shareholders conforms to Swiss statutory law and our amended and restated articles of association. A Swiss corporation may pay dividends only if it has sufficient distributable profits from the previous business year (*bénéfice de l'exercice*) or brought forward from previous business years (*report des bénéfices*) or if it has distributable reserves (*réserves à libre disposition*), each as evidenced by its audited stand-alone statutory balance sheet prepared pursuant to Swiss law and after allocations to reserves required by Swiss law and its articles of association have been deducted. Distributable reserves are generally booked either as free reserves (*réserves libres*) or as reserves from capital contributions (*apports de capital*). Distributions out of share capital, which is the aggregate par value of a corporation's issued shares, may be made only by way of a share capital reduction. See "Item 10. Additional Information—B. Memorandum and Articles of Association."

**B.Significant Changes**

A discussion of the significant changes in our business can be found under "Item 4. Information on the Company—B. Business Overview."

**ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;THE OFFER AND LISTING** 

**A.Offering and Listing Details** 

Our common shares are listed on the NYSE under the symbol "ADCT."

**C.Markets**

Our common shares are listed on the NYSE under the symbol "ADCT."

**ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;ADDITIONAL INFORMATION**

**B.Memorandum and Articles of Association**

Exhibit 2.1 to this Annual Report, which contains a description of our common shares and articles of association, is incorporated herein.

**C.Material Contracts**

The following descriptions of our material agreements are not complete and are qualified in their entirety by reference to the full text of such agreements, which are filed as exhibits to this Annual Report.

***MedImmune License and Collaboration Agreement***

In 2011, we (then operating under the name ADCT Sàrl) entered into a license and collaboration agreement with Spirogen (since renamed ADC Products UK Ltd.), pursuant to which Spirogen granted us access to its next-generation PBD-based warhead and linker technology. In connection with AstraZeneca plc's acquisition of Spirogen Sàrl (which was at the time the direct parent company of Spirogen) and the transfer of certain of Spirogen's intellectual property to Spirogen Sàrl, including its PBD-based warhead and linker technology, the agreement was subsequently amended and restated in October 2013 (with retroactive effect to September 2011), with Spirogen Sàrl also becoming a party to such agreement. Spirogen Sàrl subsequently transferred the PBD technology to MedImmune Limited, which, together with MedImmune LLC, is the global biologics research and development arm of AstraZeneca plc. Thereafter, Spirogen Sàrl transferred its rights and obligations under the agreement to MedImmune and the agreement was subsequently amended and restated again in May 2016 (with retroactive effect to September 2011), with MedImmune replacing Spirogen Sàrl as the licensor thereunder.

Under the terms of the agreement, MedImmune has granted us an exclusive, worldwide license under certain patent rights and related know-how to make, have made, use, sell, offer for sale and import product candidates in the field of human therapeutics and diagnostics that consist of (i) PBD-based molecules directly conjugated to an antibody (i.e., ADCs with a PBD-based warhead) that specifically bind to up to 11 approved targets ("ADC Targets"), and (ii) PBD-based molecules conjugated to a non-antibody (i.e., targeting-moiety conjugates with a PBD-based warhead) that specifically bind to up to ten approved targets ("XDC Targets"). As of the date hereof, there are 11 approved ADC Targets subject to the license, including CD19 (the target of ZYNLONTA) and CD25 (the target of Cami), and ten approved XDC Targets subject to the license.

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Under the terms of the agreement, we have the right to grant sublicenses to affiliates and, subject to MedImmune's approval (not to be unreasonably withheld), third parties. In addition, with respect to each licensed target, we agreed to use commercially reasonable efforts to develop and commercialize at least one product and submit an IND application with the FDA (or its equivalent in another jurisdiction) for one product within 48 months after formal designation of the target as an approved target, which we have done with respect to CD19 and CD25 upon submitting the IND applications for ZYNLONTA and Cami, respectively.

As consideration for the rights granted to us under the agreement, in 2011 we paid Spirogen an up-front licensing fee of USD 2.5 million. No further payments in consideration for the grant of such rights are required to be paid to Spirogen or MedImmune under the agreement.

With respect to patent rights conceived during the course of our exercise of our rights under the agreement, rights are allocated as follows under the agreement: (i) we own any such patent that claims an antibody that binds to one of the ADC Targets approved under the agreement, (ii) we and MedImmune jointly own any such patent claiming any PBD-based ADC, with us owning the exclusive right to exploit such patent during the term of the agreement and (iii) MedImmune owns any such patent that claims a PBD or any PBD attached to an antibody that does not bind to one of the ADC Targets approved under the agreement. In addition, we have the right to prosecute and maintain all patents described in clauses (i) and (ii) above and are responsible for the costs of prosecuting and maintaining such patents. The ownership of any patent rights conceived during our exercise of our rights under the agreement in connection with non-ADC Targets will be determined under U.S. patent law.

Unless earlier terminated, the agreement terminates on the date of expiration of the last to expire licensed patent right that covers a product being exploited under the license. The agreement (including the licenses granted thereunder) will terminate upon our material breach of any provision of the agreement that is not cured within an applicable cure period.

***Synaffix Commercial License Agreement***

In October 2016, we entered into a commercial license agreement with Synaffix, under which we obtained a non-exclusive, royalty-bearing, sublicensable, worldwide license under certain patent rights and related know-how owned by Synaffix relating to site-specific conjugation technology to research, develop, manufacture, use, sell, import, distribute, commercialize and market antibody-drug conjugates for human therapeutic use that bind to three selected targets, including ADCT-601, ADCT-701 and ADCT-212. In June 2020, we amended the agreement to grant us the option to extend this license to cover two additional targets.

In consideration for the rights granted under the agreement, we paid an upfront fee and two additional six-figure fees upon our selection of licensed products binding the first three specific targets, and are required to pay a one-time fee upon the acceptance of a BLA (or foreign equivalent) for a licensed product and payments in the high eight figures upon the achievement of certain milestones (of which we have already paid a high six-figure amount). In addition, for the first and third such targets, we are required to pay tiered royalties in the low-single-digit percentages on net sales of the applicable licensed products. For the second such target, we are required to pay royalties in the low-to-mid single-digit percentages on net sales of the applicable licensed products. In the event we select a fourth or fifth target, we will be required to pay a one-time license fee for each selected target, aggregate payments up to the mid eight figures upon the achievement of certain milestones and a royalty in the low-single-digit percentages on net sales of each licensed product.

The agreement remains in effect on a country-by-country and licensed product-by-licensed product basis until the expiration of the last-to-expire valid claim in a patent licensed under the agreement covering such product in such country. Upon the expiration of the agreement for each licensed product in each country, the licenses granted to us for such product in such country will become fully paid-up and perpetual. We may terminate the agreement in its entirety or on a licensed product-by-licensed product basis at any time. Either party may terminate the agreement, subject to a specified notice and cure period, for a breach by the other party of a material provision of the agreement or upon an insolvency-related event experienced by the other party.

***Bergenbio License Agreement***

In July 2014, we entered into a license agreement with Bergenbio AS ("Bergenbio") under which we obtained an exclusive, royalty-bearing, sublicensable (subject to certain restrictions), worldwide license in certain patent rights and related know-how owned by Bergenbio relating to certain AXL-targeting antibodies used in ADCT-601 to conduct research, develop, make, use, sell, offer for sale, import and otherwise commercialize products for the treatment and/or prevention of diseases in humans (with an exception for certain types of products), as well as a similar non-exclusive license relating to companion diagnostics for such licensed products.

In consideration for the rights granted under the agreement we paid an upfront fee, and we also paid a one-time low-six-figure fee upon the filing of an IND application for ADCT-601 in 2018. Additionally, we are required to make payments in the low-eight figures per licensed product upon the achievement of certain milestones, an additional one-time low-eight-figure payment upon the achievement of a specified commercialization milestone, and tiered royalties in the mid-single digit percentages on net sales of licensed products.

The agreement remains in effect on a country-by-country and licensed product-by-licensed product basis until the latest of (i) the expiration of the last-to-expire valid claim in a patent covering such product licensed under the agreement in such country, (ii) the expiration of any other exclusivity protection of such licensed product in such country and (iii) the ten-year anniversary of the first commercial sale of such

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licensed product in such country. Upon the expiration of the agreement for each licensed product in each country, the licenses granted to us for such product in such country will become fully paid-up and irrevocable. We may terminate the agreement at any time effective immediately upon providing written notice to Bergenbio. Either party may terminate the agreement, subject to specified notice and cure periods, for a material breach by the other party of the agreement or upon an insolvency-related event experienced by the other party. Bergenbio may terminate the agreement, subject to a specified notice and cure period, if we fail to undertake any reasonable steps in the development and/or commercialization of at least one licensed product for a period of more than six consecutive months.

***Overland License and Collaboration Agreement***

In December 2020, we entered into a joint venture with Overland Pharmaceuticals ("Overland") to develop and commercialize ZYNLONTA, ADCT-602, ADCT-601 and ADCT-901 in greater China and Singapore. In connection with such joint venture, we entered into a license and collaboration agreement with the joint venture entity, Overland ADCT BioPharma (CY) Limited ("Overland ADCT BioPharma") pursuant to which we granted Overland ADCT BioPharma an exclusive license or sublicense (as applicable) under all applicable patents and know-how now or in the future owned or controlled by us relating to ZYNLONTA, ADCT-602, ADCT-601 and ADCT-901 (collectively, the "Licensed Products") in order to use, sell, offer for sale, import and commercialize such product candidates in China, Hong Kong, Macau, Taiwan and Singapore (the "Territory"). We also granted Overland ADCT BioPharma an exclusive right of first negotiation to obtain a license in the event we seek to grant to a third party a license in certain circumstances.

Overland ADCT BioPharma is responsible, at its sole cost, for the development, regulatory approval and commercialization of the Licensed Products in the Territory, and must use diligent efforts in order to obtain and maintain regulatory approval for and commercialize the products in each applicable jurisdiction. We maintain an exclusive option, on a product-by-product basis, to co-promote and participate in the detailing, promotion and marketing of the Licensed Products in the Territory. Upon any exercise by us of such option, we and Overland ADCT BioPharma will negotiate in good faith commercially reasonable terms for a co-promotion agreement. We maintain the right to control clinical trials for the Licensed Products conducted both in and out of the Territory, and the license agreement sets forth the division of costs between us and Overland ADCT BioPharma with respect to clinical trials depending on the territories within which such trials are conducted or relate to. We are required to use diligent efforts to manufacture and supply to Overland ADCT BioPharma (at our manufacturing cost), and Overland ADCT BioPharma must purchase from us, all of Overland ADCT BioPharma's requirements of the Licensed Products for its development and commercialization activities.

The collaboration will be managed by a joint steering committee (and other applicable committees and subcommittees) comprised of equal numbers of representatives from us and Overland ADCT BioPharma. In the event of a dispute that cannot be resolved by discussions between our CEO and Overland ADCT BioPharma's CEO, Overland ADCT BioPharma shall have final decision-making authority with respect to matters that relate specifically to the development and commercialization of the Licensed Products in the Territory, except where such matters could also affect the products outside of the Territory and with respect to other specified matters (in which cases we shall have such authority).

As partial consideration for the rights granted to Overland ADCT BioPharma pursuant to the agreement, Overland ADCT BioPharma issued to us 44,590,000 Series A shares. We are also entitled to receive tiered quarterly royalties on Overland ADCT BioPharma's net sales of the Licensed Products ranging from the low to mid-single digit percentages. Such royalties are payable, on a product-by-product and jurisdiction-by- jurisdiction basis, from the first commercial sale of a product in a jurisdiction until the latest of (i) the expiration of the last to expire claim in licensed patent that covers such product or any components thereof in such jurisdiction, (ii) the last to expire regulatory exclusivity period for such product in such jurisdiction and (iii) a specified period after the first commercial sale of such product in such jurisdiction. Overland ADCT BioPharma must also reimburse us for any payments we are obligated to make to any of our licensors including in connection with the grant of a sublicense to Overland ADCT BioPharma under applicable intellectual property pursuant to this agreement, including any fees or payments directly resulting from or reasonable allocable to Overland ADCT BioPharma's development and commercialization of the Licensed Products.

The license agreement remains in effect, on a product-by-product basis, for as long as Overland ADCT BioPharma continues to develop or commercialize such product. Either party may terminate the license agreement for a material breach by the other party, subject to specified notice and cure periods, or upon immediate written notice for an insolvency-related event experienced by the other party. We may also terminate the license agreement, subject to a specified notice and cure period, if Overland ADCT BioPharma commences a legal action challenging the validity, enforceability or scope of any patent owned or controlled by us that cover the applicable products.

***Financing Agreement with HealthCare Royalty Partners***

On August 25, 2021, we entered into a royalty purchase agreement with certain entities managed by HCR for up to USD 325.0 million. Under the terms of the agreement, we received gross proceeds of USD 225.0 million upon closing (the "First Investment Amount") and are eligible to receive an additional USD 75.0 million upon the first commercial sale of ZYNLONTA in the United Kingdom or any European Union country (the "Second Investment Amount" and together with the First Investment Amount, the "Investment Amount"). Under the agreement, we are obligated to pay to HCR (i) a 7% royalty on the worldwide (excluding China, Hong Kong, Macau, Taiwan, Singapore and South Korea) net sales of ZYNLONTA and any product that contains ZYNLONTA and on any upfront or milestone payments we receive from licenses that we grant to commercialize ZYNLONTA or any product that contains ZYNLONTA in any region other than China, Hong Kong,

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Macau, Taiwan, Singapore and South Korea, (ii) a 7% royalty on the worldwide net sales of Cami and any product that contains Cami and on any upfront or milestone payments we receive from licenses that we grant to commercialize Cami or any product that contains Cami in the United States and Europe, and (iii) outside the United States and Europe, a 7% share of any upfront or milestone payments derived from licenses that we grant to commercialize Cami or any product that contains Cami and, in lieu of the royalty on net sales under such licenses, a mid-teen percentage share of the net royalty we receive from such licenses. These royalty rates are subject to potential upward adjustment, up to a maximum of 10%, based on performance tests in 2026 and 2027. The 7% royalty rates described above are subject to adjustment to a potential high-single-digit percentage royalty rate after September 30, 2026 and/or a 10% royalty rate after September 30, 2027, if the aggregate net sales and license revenue subject to royalty obligations in the preceding twelve months do not exceed certain mid-nine-digit milestones by such dates. Our aggregate royalty obligations are capped at 2.50 times the amount paid by HCR under the agreement, or at 2.25 times the amount paid by HCR under the agreement if HCR receives royalty payments exceeding a mid-nine-digit amount on or prior to March 31, 2029 (the "Royalty Cap"). Once the Royalty Cap is reached, the royalty purchase agreement will terminate.

Upon the occurrence of a change in control event, we are obligated to pay HCR an amount equal to the Royalty Cap, less any amounts we previously paid to HCR. If the change in control event occurs prior to the 36-month anniversary of the closing of the royalty purchase agreement, we are obligated to pay HCR an amount equal to 2.0 times the amount paid by HCR, less any amounts we previously paid to HCR pursuant to the agreement. In addition, we retain the right, at any time after the 27-month anniversary of the closing of the royalty purchase agreement, to terminate the remaining royalty obligations under the agreement by paying HCR an amount equal to the Royalty Cap, less any amounts we previously paid to HCR pursuant to the agreement (such amount, the "Buyout Amount"), provided that HCR may instead elect to receive 50% of the Buyout Amount and continue to receive 50% of the royalty payments under the agreement but with the Royalty Cap reduced to reflect our payment of 50% of the Buyout Amount.

***MTPC License Agreement***

In January 2022, we entered into a license agreement with Mitsubishi Tanabe Pharma Corporation ("MTPC") to develop and commercialize ZYNLONTA in Japan, pursuant to which we granted MPTC an exclusive license under all applicable patents and know-how relating to ZYNLONTA in order to use, sell, offer for sale, import and commercialize ZYNLONTA for all cancer indications in Japan. Under the agreement, we received an upfront payment of USD 30 million and are eligible to up to USD 205 million in regulatory and net sales-based milestones as well as royalties ranging from high teens to the low twenties based on net sales of ZYNLONTA in Japan. The royalties payable to us are subject to downward adjustment in certain circumstances, including the expiration of a patent covering ZYNLONTA, generic or biosimilar competition, and required royalty payments to third parties.

MTPC will conduct clinical studies and be responsible for the development and commercialization of ZYNLONTA in Japan and bear the associated costs. At MPTC's option, it may also participate in any clinical studies of ZYNLONTA outside of Japan by bearing a portion of the costs of such studies. In addition, MPTC agreed that it will not engage in certain activities with respect to products that are similar to ZYNLONTA.

Unless terminated earlier, the agreement terminates upon the occurrence of the earliest of (i) the expiration of the last-to-expire patent covering ZYNLONTA in Japan, (ii) the expiration of exclusivity with respect to ZYNLONTA granted to MTPC by a regulatory authority, and (iii) ten years after the first commercial sale of ZYNLONTA in Japan. In addition, MTPC may terminate the agreement at its discretion upon 180 days' notice to us, each party may terminate the agreement for the other party's material breach or insolvency and we may terminate the agreement if MTPC engages in certain challenges of patents covering ZYNLONTA.

***Sobi License Agreement***

On July 8, 2022, we entered into a license agreement with Swedish Orphan Biovitrum AB (publ) ("Sobi") to develop and commercialize ZYNLONTA in all territories other than the United States, greater China, Singapore and Japan (the territories subject to the agreement, collectively, the "Covered Territory"). Pursuant to the agreement, we granted Sobi (i) an exclusive license under applicable patents and know-how relating to ZYNLONTA in order to use, develop, sell, offer for sale, distribute, import and commercialize ZYNLONTA for all human therapeutic and diagnostic uses in the Covered Territory, (ii) a non-exclusive license under applicable patents and know-how relating to ZYNLONTA in order to package and label ZYNLONTA for all human therapeutic and diagnostic uses in the Covered Territory and (iii) a non-exclusive license under applicable patents and know-how relating to ZYNLONTA in order to manufacture and have manufactured ZYNLONTA in any territory solely for the use and sale of ZYNLONTA for human therapeutic and diagnostic uses in the Covered Territory exercisable upon Sobi assuming responsibility to manufacture or have manufactured ZYNLONTA, in each case, with the right to sublicense to affiliates and, with our written consent, other third parties and the right to subcontract to third parties. The licenses are subject to certain retained rights as specified in the agreement.

Under the agreement, we received an upfront payment of USD 55 million in July 2022 and USD 50 million in February 2023 for the approval of a Marketing Authorization Application ("MAA") by the European Commission for ZYNLONTA in third-line diffuse large B-cell lymphoma ("DLBCL"), and are eligible to up to USD 332.5 million in other regulatory and net sales-based milestones, as well as tiered royalties ranging from mid-teens to the mid-twenties based on net sales of ZYNLONTA in the Covered Territory. The royalties payable to us are subject to downward adjustment in certain circumstances, including the expiration of patents covering ZYNLONTA, generic or biosimilar

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competition and required payments to third parties. The royalty term with respect to a product in a given country begins upon the first commercial sale of the product in the country and terminates upon the latest of (x) 10 years after the first commercial sale of the product in the country, (y) the expiration of the last-to-expire valid patent claim covering the product in the country and (z) the expiration of regulatory exclusivity for the product in the country.

Sobi will conduct development and commercialization activities with respect to ZYNLONTA in the Covered Territory and bear the associated costs, other than the costs of global clinical studies that are intended to support regulatory approval in both the United States and the Covered Territory. In addition, Sobi will co-fund 25% of the costs of certain specified global clinical studies of ZYNLONTA and have the option to co-fund additional global clinical studies in exchange for use of the data generated from such additional studies, subject to an aggregate annual co-funding cap of USD 10 million.

Both we and Sobi agreed that neither party would (i) during the term of the agreement until the fifth anniversary of the first MAA approval of ZYNLONTA for the first indication in the first of Germany, France, United Kingdom, Spain or Italy, engage in the development (other than non-clinical and preclinical research activities) of any competitive product directed to CD19 for the treatment of DLBCL in the Covered Territory, or (ii) during the term of the agreement, commercialize any competitive product directed to CD19 for the treatment of DLBCL in the Covered Territory. If either party acquires or is acquired by a third party that has a competitive program, then such party may continue such competitive program as long as such party establishes firewalls to operate such competitive program separately from the ZYNLONTA program.

***Loan Agreement***

On August 15, 2022, the Company, ADC Therapeutics (UK) Limited and ADC Therapeutics America, Inc. entered into a loan agreement and guaranty (the "Loan Agreement") with certain affiliates and/or funds managed by each of Oaktree Capital Management, L.P. and Owl Rock Capital Advisors LLC, as lenders, and Owl Rock Opportunistic Master Fund I, L.P., as administrative agent and collateral agent, pursuant to which the Company may borrow up to USD 175.0 million principal amount of secured term loans, including (i) an initial tranche of USD 120.0 million principal amount of term loans and (ii) up to two additional tranches, each up to USD 27.5 million principal amount of term loans that the Company may draw upon within 18 months of the closing date, subject to satisfaction of certain customary conditions including compliance with the Company's other material agreements for the incurrence of such debt. The secured term loans are scheduled to mature on August 15, 2029 and accrue interest at an annual rate of SOFR plus 7.50% per annum or a base rate plus 6.50% per annum for the first five years of the term loans, and thereafter, at an annual rate of SOFR plus 9.25% or a base rate plus 8.25%, in each case subject to a 1.00% per annum SOFR floor. At the Company's election, for the first three years, the Company may choose to pay an amount of interest on the outstanding principal amount of term loans corresponding to up to 2.50% of the applicable interest rate in kind (in lieu of payment in cash). The Company is obligated to pay certain exit fees upon certain prepayments and repayments of the principal amount of the term loans. In addition, the Company has the right to prepay the term loans at any time subject to certain prepayment premiums applicable during the period commencing from the closing date until the fourth anniversary of the closing date. The Loan Agreement also contains certain prepayment provisions, including mandatory prepayments from the proceeds from certain asset sales, casualty events and from issuances or incurrences of debt, which may also be subject to prepayment premiums if made on or prior to the fourth anniversary of the closing date. The obligations under the Loan Agreement are secured by substantially all assets of the Company and certain of its subsidiaries and are guaranteed initially by the Company's subsidiaries in the United States and the United Kingdom. The Loan Agreement contains customary covenants, including a covenant to maintain qualified cash of at least USD 60.0 million plus an amount equal to any accounts payable of the Company or its subsidiaries that remain unpaid more than ninety (90) days after the date of the original invoice therefor, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. The Loan Agreement also contains customary events of default, after which the term loan may become due and payable immediately, including payment defaults, material inaccuracy of representations and warranties, covenant defaults (including creation of any liens other than those that are expressly permitted), bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, judgments against the Company and its subsidiaries and change in control. The Company drew down USD 120.0 million principal amount of term loans under the Loan Agreement on August 15, 2022.

**D.Exchange Controls**

There are no Swiss governmental laws, decrees or regulations that restrict, in a manner material to us, the export or import of capital, including any foreign exchange controls, or that generally affect the remittance of dividends or other payments to non-residents or non-citizens of Switzerland who hold our common shares.

**E.Taxation**

The following discussion is based on the tax laws, regulations and regulatory practices of Switzerland and the United States as in effect on the date hereof, which are subject to change (or subject to changes in interpretation), possibly with retroactive effect.

Current and prospective shareholders are advised to consult their own tax advisers in light of their particular circumstances as to the Swiss or U.S. tax laws, regulations and regulatory practices that could be relevant for them in connection with owning and selling or otherwise disposing of our common shares and receiving dividends and similar cash or in-kind distributions on our common shares (including dividends

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on liquidation proceeds and share dividends) or distributions on our common shares based upon a capital reduction or reserves paid out of capital contributions and the consequences thereof under the tax laws, regulations and regulatory practices of Switzerland or the United States.

**Swiss Tax Considerations**

***Withholding Tax***

Under present Swiss tax law, dividends due and similar cash or in-kind distributions made by the Company to a shareholder of common shares (including liquidation proceeds and bonus shares) are subject to Swiss federal withholding tax ("Withholding Tax"), currently at a rate of 35% (applicable to the gross amount of taxable distribution). However, the repayment of the par value of the common shares and any repayment of qualifying additional paid-in capital (capital contribution reserves), within the limitations accepted by the legislation in force when such Dividend becomes due and the respective administrative practice, are not subject to the Withholding Tax. The Company is obliged to deduct any applicable Withholding Tax from the gross amount of any taxable distribution and to pay the tax to the Swiss Federal Tax Administration within 30 days of the due date of such distribution.

Swiss resident individuals who hold their common shares as private assets ("Resident Private Shareholders") are in principle eligible for a full refund or credit against income tax of the Withholding Tax if they duly report the underlying income in their income tax return. In addition, (i) corporate and individual shareholders who are resident in Switzerland for tax purposes, (ii) corporate and individual shareholders who are not resident in Switzerland, and who, in each case, hold their common shares as part of a trade or business carried on in Switzerland through a permanent establishment with fixed place of business situated in Switzerland for tax purposes and (iii) Swiss resident private individuals who, for income tax purposes, are classified as "professional securities dealers" for reasons of, inter alia, frequent dealing, or leveraged investments, in shares and other securities (collectively, "Domestic Commercial Shareholders") are in principle eligible for a full refund or credit against income tax of the Withholding Tax if they duly report the underlying income in their statements of operations or income tax return, as the case may be.

Shareholders who are not resident in Switzerland for tax purposes, and who, in each case and during the respective taxation year, do not hold their common shares as part of a trade or business carried on through a permanent establishment with fixed place of business situated in Switzerland for tax purposes, and who are not subject to corporate or individual income taxation in Switzerland for any other reason (collectively, "Non-Resident Shareholders") may be entitled to a total or partial refund of the Withholding Tax if the country in which such recipient resides for tax purposes maintains a bilateral treaty for the avoidance of double taxation with Switzerland and further conditions of such treaty are met. Non-Resident Shareholders should be aware that the procedures for claiming treaty benefits (and the time required for obtaining a refund) may differ from country to country. Non-Resident Shareholders should consult their own legal, financial or tax advisors regarding receipt, ownership, purchases, sale or other dispositions of common shares and the procedures for claiming a refund of the Withholding Tax.

***Securities Transfer Stamp Duty***

Any transactions in common shares in the secondary markets are subject to Swiss securities transfer stamp duty at an aggregate rate of 0.15% of the consideration paid for such common shares, however, only if a bank or other securities dealer in Switzerland, as defined in the Swiss Federal Stamp Tax Act (*loi fédérale sur les droits de timbre*), is a party or an intermediary to the transaction and no exemption applies.

***Swiss Federal, Cantonal and Communal Individual Income Tax and Corporate Income Tax***

*Non-Resident Shareholders*

Non-Resident Shareholders are not subject to any Swiss federal, cantonal or communal income tax on dividend payments and similar distributions because of the mere holding of common shares. The same applies for capital gains on the sale of common shares subject to certain exceptions. For Withholding Tax consequences, see "—Swiss Tax Considerations—Withholding Tax."

*Resident Private Shareholders and Domestic Commercial Shareholders*

Resident Private Shareholders who receive dividends and similar cash or in-kind distributions (including liquidation proceeds as well as bonus shares or taxable repurchases of common shares as described above), which are not repayments of the par value of common shares or, within the limitations accepted by the legislation in force and the respective administrative practice, qualifying additional paid-in capital (capital contribution reserves), are required to report such receipts in their individual income tax returns and are subject to Swiss federal, cantonal and communal income tax on any net taxable income for the relevant tax period. A gain or a loss by Resident Private Shareholders realized upon the sale or other disposition of common shares to a third party will generally be a tax-free private capital gain or a not tax-deductible capital loss, as the case may be. Under exceptional circumstances the capital gain may be re-characterized into a taxable dividend, in particular upon taxable repurchase of common shares as described above. When a capital gain is re-characterized as a dividend, the relevant income for tax purposes corresponds to the difference between the repurchase price and the sum of the par value of common shares and, within the limitations accepted by the legislation in force and the respective administrative practice, qualifying additional paid-in capital (capital contribution reserves).

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Domestic Commercial Shareholders who receive dividends and similar cash or in-kind distributions (including liquidation proceeds as well as bonus shares) are required to recognize such payments in their statements of operations for the relevant tax period and are subject to Swiss federal, cantonal and communal individual or corporate income tax, as the case may be, on any net taxable earnings accumulated (including the dividends) for such period. Domestic Commercial Shareholders who are corporate taxpayers may qualify for participation relief on dividends and distributions (*réduction pour participations*), if common shares held have an aggregate market value of at least CHF 1 million or represent 10% or more of our share capital. For cantonal and communal income tax purposes, the regulations on participation relief are broadly similar, depending on the canton of residency.

Domestic Commercial Shareholders are required to recognize a gain or loss realized upon the disposal of common shares in their statement of operations for the respective taxation period and are subject to Swiss federal, cantonal and communal individual or corporate income tax, as the case may be, on any net taxable earnings (including the gain or loss realized on the sale or other disposition of common shares) for such taxation period.

***Swiss Wealth Tax and Capital Tax***

*Non-Resident Shareholders*

Non-Resident Shareholders holding common shares are not subject to cantonal and communal wealth or annual capital tax because of the mere holding of common shares.

*Resident Private Shareholders*

Resident Private Shareholders are required to report their common shares as part of their private assets and are subject to cantonal and communal wealth tax.

*Domestic Commercial Shareholders*

Domestic Commercial Shareholders are required to report their common shares as part of their business assets or taxable capital, as defined, and are subject to cantonal and communal wealth or annual capital tax.

***Automatic Exchange of Information in Tax Matters***

On November 19, 2014, Switzerland signed the Multilateral Competent Authority Agreement. The Multilateral Competent Authority Agreement is based on Article 6 of the OECD/Council of Europe administrative assistance convention and is intended to ensure the uniform implementation of Automatic Exchange of Information (the "AEOI"). The Federal Act on the International Automatic Exchange of Information in Tax Matters (the "AEOI Act") entered into force on January 1, 2017. The AEOI Act is the legal basis for the implementation of the AEOI standard in Switzerland.

The AEOI is being introduced in Switzerland through bilateral agreements or multilateral agreements. The agreements have been, and will be, concluded on the basis of guaranteed reciprocity, compliance with the principle of speciality (i.e., the information exchanged may only be used to assess and levy taxes (and for criminal tax proceedings)) and adequate data protection.

Based on such multilateral or bilateral agreements and the implementation of Swiss law, Switzerland collects and exchanges data in respect of financial assets, including common shares, held in, and income derived thereon and credited to, accounts or deposits with a paying agent in Switzerland for the benefit of individuals resident in a European Union member state or in a treaty state.

***Swiss Facilitation of the Implementation of the U.S. Foreign Account Tax Compliance Act***

Switzerland has concluded an intergovernmental agreement with the United States to facilitate the implementation of the U.S. Foreign Account Tax Compliance Act. The agreement ensures that the accounts held by U.S. persons with Swiss financial institutions are disclosed to the U.S. tax authorities either with the consent of the account holder or by means of group requests within the scope of administrative assistance. Information will not be transferred automatically in the absence of consent, and instead will be exchanged only within the scope of administrative assistance on the basis of the double taxation agreement between the United States and Switzerland. On October 8, 2014, the Swiss Federal Council approved a mandate for negotiations with the United States on changing the current direct-notification-based regime to a regime where the relevant information is sent to the Swiss Federal Tax Administration, which in turn provides the information to the U.S. tax authorities.

**Material U.S. Federal Income Tax Consequences for U.S. Holders**

The following is a description of the material U.S. federal income tax consequences to the U.S. Holders, as defined below, of owning and disposing our common shares. It does not describe all tax considerations that may be relevant to a particular person's decision to acquire common shares.

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This discussion applies only to a U.S. Holder that holds common shares as capital assets for U.S. federal income tax purposes (generally, property held for investment). In addition, it does not describe any tax consequences other than U.S. federal income tax consequences, including state and local tax consequences and estate tax consequences, and does not describe all of the U.S. federal income tax consequences that may be relevant in light of the U.S. Holder's particular circumstances, including alternative minimum tax consequences, the potential application of the provisions of the Internal Revenue Code of 1986, as amended (the "Code") known as the Medicare contribution tax and tax consequences applicable to U.S. Holders subject to special rules, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain banks, insurance companies and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokers, dealers or traders in securities who use a mark-to-market method of tax accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding common shares as part of a straddle, wash sale, conversion transaction or other integrated transaction or persons entering into a constructive sale with respect to the common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entities or arrangements classified as partnerships or S corporations for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt entities, including an "individual retirement account" or "Roth IRAs" and governmental entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• real estate investment trusts or regulated investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• former U.S. citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons subject to Section 451(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that own or are deemed to own 10% or more of the voting power or value of our shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding common shares in connection with a trade or business conducted outside of the United States or in connection with a permanent establishment or other fixed place of business outside of the United States.

If an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds common shares, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. Partnerships holding common shares and partners in such partnerships should consult their tax advisers as to the particular U.S. federal income tax consequences of owning and disposing of the common shares.

This discussion is based on the Code, administrative pronouncements, judicial decisions, final, temporary and proposed Treasury regulations, and the income tax treaty between Switzerland and the United States (the "Treaty"), all as of the date hereof, any of which is subject to change or differing interpretations, possibly with retroactive effect.

A "U.S. Holder" is a beneficial owner of our common shares who, for U.S. federal income tax purposes, is eligible for the benefits of the Treaty and who is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a citizen or individual resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.

U.S. Holders should consult their tax advisers concerning the U.S. federal, state, local and non-U.S. tax consequences of owning and disposing of common shares in their particular circumstances.

Recently released Treasury regulations may in some circumstances prohibit a U.S. person from claiming a foreign tax credit with respect to certain non-U.S. taxes that are not creditable under applicable income tax treaties (the "Foreign Tax Credit Regulations"). Accordingly, U.S. investors that are not eligible for Treaty benefits should consult their tax advisers regarding the creditability or deductibility of any Swiss taxes imposed on dividends on, or dispositions of, common shares.

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The discussion under "Taxation of Distributions" and "Sale or Other Disposition of Common Shares" below describes certain consequences to U.S. Holders in the event that we are not a passive foreign investment company for U.S. federal income tax purposes (a "PFIC") during any tax year in which a U.S. Holder holds our common shares. This discussion assumes that we were not a PFIC for our 2022 taxable year, and will not become a PFIC in the foreseeable future. See "Passive Foreign Investment Company Rules" below.

***Taxation of Distributions***

Distributions paid on common shares, other than certain *pro rata* distributions of common shares, will generally be treated as dividends to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Because we do not maintain calculations of our earnings and profits under U.S. federal income tax principles, we expect that distributions generally will be reported to U.S. Holders as dividends. Dividends paid to certain non-corporate U.S. Holders may be eligible for taxation as "qualified dividend income" and therefore, subject to applicable limitations, may be taxable at rates not in excess of the long-term capital gain rate applicable to such U.S. Holder. Dividends will constitute qualified dividend income (a) for so long as the common shares with respect to which such dividends are paid are listed on the NYSE or we are eligible for benefits under the Treaty and (b) we are not a PFIC in the year in which the dividend is paid or the prior taxable year. U.S. Holders should consult their tax advisers regarding the availability of the reduced tax rate on dividends in their particular circumstances.

The amount of a dividend will include any amounts withheld by us in respect of Swiss income taxes. The amount of the dividend will be treated as foreign-source dividend income to U.S. Holders and will not be eligible for the dividends-received deduction generally available to U.S. corporations under the Code. Dividends will be included in a U.S. Holder's income on the date of the U.S. Holder's receipt of the dividend. The amount of any dividend income paid in Swiss franc will be the U.S. dollar amount calculated by reference to the exchange rate in effect on the date of actual or constructive receipt, regardless of whether the payment is in fact converted into U.S. dollars at that time. If the dividend is converted into U.S. dollars on the date of receipt, a U.S. Holder should not be required to recognize foreign currency gain or loss in respect of the dividend income. A U.S. Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of receipt.

Subject to applicable limitations, some of which vary depending upon the U.S. Holder's particular circumstances, Swiss income taxes withheld from dividends on common shares (at a rate not exceeding the rate provided by the Treaty, in the case of a U.S. Holder eligible for a reduced rate under the Treaty) will be creditable against the U.S. Holder's U.S. federal income tax liability. The rules governing foreign tax credits are complex. For example, under the Foreign Tax Credit Regulations, in the absence of an election to apply the benefits of the Treaty, in order for foreign income taxes to be creditable, the rules imposing the taxes must be consistent with certain U.S. federal income tax principles, and we have not determined whether the Swiss income tax system meets all these requirements. U.S. Holders should consult their tax advisers regarding the creditability of foreign taxes in their particular circumstances. In lieu of claiming a foreign tax credit, U.S. Holders may, at their election, deduct foreign taxes, including any Swiss income tax, in computing their taxable income, subject to generally applicable limitations under U.S. law. An election to deduct foreign taxes instead of claiming foreign tax credits applies to all foreign taxes paid or accrued in the taxable year.

***Sale or Other Disposition of Common Shares***

Gain or loss realized by a U.S. Holder on the sale or other disposition of common shares will be capital gain or loss, and will be long-term capital gain or loss if the U.S. Holder's holding period for such common shares was more than one year as of the date of the sale or other disposition. The amount of the gain or loss will equal the difference between the U.S. Holder's tax basis in the common shares disposed of and the amount realized on the disposition, in each case as determined in U.S. dollars. Long-term capital gain recognized by a non-corporate U.S. Holder is subject to U.S. federal income tax at rates lower than the rates applicable to ordinary income and short-term capital gains, while short-term capital gains are subject to U.S. federal income tax at the rates applicable to ordinary income. This gain or loss will generally be U.S.-source gain or loss for foreign tax credit purposes. However, U.S. Holders that are eligible for benefits under the Treaty may be able to elect to treat the gain as foreign-source income under the Treaty and claim a foreign tax credit in respect of Swiss taxes on disposition gains. The Foreign Tax Credit Regulations generally preclude a U.S. Holder from claiming a foreign tax credit with respect to Swiss income taxes on gains from dispositions of common shares if the U.S. Holder does not elect to apply the benefits of the Treaty. However, in that case it is possible that any Swiss taxes on disposition gains may either be deductible or reduce the amount realized on the disposition. The rules governing foreign tax credits and deductibility of foreign taxes are complex. U.S. Holders should consult their tax advisers regarding their eligibility for benefits under the Treaty and the consequences of the imposition of any Swiss tax on disposition gains. The deductibility of capital losses is subject to various limitations.

***Passive Foreign Investment Company Rules***

Under the Code, we will be a PFIC for any taxable year in which, after the application of certain look-through rules with respect to subsidiaries, either (i) 75% or more of our gross income consists of "passive income" or (ii) 50% or more of the average quarterly value of our assets consist of assets that produce, or are held for the production of, "passive income." For purposes of the above calculations, we will be treated as if we hold our proportionate share of the assets of, and receive directly our proportionate share of the income of, any other

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corporation in which we directly or indirectly own at least 25%, by value, of the shares of such corporation. Passive income generally includes interest, dividends, certain non-active rents and royalties, and capital gains.

We believe that we were a PFIC for our 2019 taxable year. However, we believe we were not a PFIC for our 2020 or 2021 taxable year, and, based on the information available to us as of the date of this Annual Report, we believe that we were not a PFIC for our 2022 taxable year. Whether we are a PFIC in any year, or will become a PFIC in any future year, is uncertain because, among other things, (i) we currently own, and likely will continue to own, a substantial amount of passive assets, including cash, (ii) the timing of our recognition of active income for U.S. federal income tax purposes, which may differ from the timing of the recognition of such income for financial accounting purposes, may result in our recognizing minimal amounts of active income for U.S. federal income tax purposes in certain taxable years and (iii) the valuation of our assets that generate non-passive income for PFIC purposes, including our intangible assets, is uncertain and may be determined in substantial part by our market capitalization, which may vary substantially over time. Accordingly, there can be no assurance that we will not be a PFIC for any future taxable year.

If we are a PFIC for any year during which a U.S. Holder holds common shares, we will continue to be treated as a PFIC with respect to that U.S. Holder for all succeeding years during which the U.S. Holder holds common shares, even if we cease to meet the threshold requirements for PFIC status, unless the U.S. Holder elects to recognize gain, if any, as if it sold its common shares as of the last day of the last tax year in which we are a PFIC (such election, a "Purging Election"). In addition, the Company may, directly or indirectly, have held or hold equity interests in other PFICs (collectively, "Lower-tier PFICs"). Under attribution rules, if the Company is a PFIC, U.S. Holders will be deemed to own their proportionate shares of the stock of Lower-tier PFICs and will be subject to U.S. federal income tax according to the rules described in the following paragraphs on (i) certain distributions by a Lower-tier PFIC and (ii) a disposition of shares of a Lower-tier PFIC, in each case as if the U.S. Holder held such shares directly, even though holders have not received the proceeds of those distributions or dispositions directly. U.S. Holders should consult their tax advisers about the consequences to them if we own one or more Lower-tier PFICs.

If we are a PFIC for any taxable year during which a U.S. Holder holds common shares (assuming such U.S. Holder has not made certain elections, as described below), gain recognized by the U.S. Holder on sale or other disposition (including certain pledges) of common shares (including any gain recognized as a consequence of a Purging Election) will be allocated ratably over the U.S. Holder's holding period for the common shares. The amounts allocated to the taxable year of the sale or other disposition and to any year before we became a PFIC will be taxed as ordinary income. The amount allocated to each other taxable year will be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and an interest charge will be imposed on the resulting tax liability. Further, to the extent that any distribution received by a U.S. Holder on its common shares exceeds 125% of the average of the annual distributions on the common shares received during the preceding three years or the U.S. Holder's holding period, whichever is shorter, that distribution will be subject to taxation in the same manner as gain, described immediately above. Certain elections may be available (including a mark-to-market election) that may provide alternative tax treatments. U.S. Holders should consult their tax advisors regarding whether any of these elections for alternative treatment would be available and, if so, what the consequences of the alternative treatments would be in their particular circumstances.

If we are a PFIC (or, with respect to a particular U.S. Holder, are treated as a PFIC) for a taxable year in which we pay a dividend or for the prior taxable year, the preferential dividend rates discussed above with respect to dividends paid to certain non-corporate U.S. Holders will not apply.

If we were a PFIC for any taxable year during which a U.S. Holder holds common shares, the U.S. Holder would generally be required to file an annual report on IRS Form 8621 with their annual U.S. federal income tax returns, subject to certain exceptions.

Prospective U.S. holders should consult their tax advisers regarding the potential PFIC rules to an investment in common shares.

***Information Reporting and Backup Withholding***

Payments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries generally are subject to information reporting, and may be subject to backup withholding, unless (i) the U.S. Holder is a corporation or other exempt recipient or (ii) in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding.

The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a credit against the U.S. Holder's U.S. federal income tax liability and may entitle it to a refund, provided that the required information is timely furnished to the IRS.

**H.Documents on Display**

We are subject to the informational requirements of the Exchange Act. Accordingly, we are required to file reports and other information with the SEC, including annual reports on Form 20-F and reports on Form 6-K. The SEC maintains an Internet site at *www.sec.gov* that contains reports, proxy and information statements and other information we have filed electronically with the SEC.

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Additionally, pursuant to Swiss law, any shareholder of record has the right to receive a free copy of this Annual Report and to inspect this Annual Report at any time at our registered office in Lausanne, Canton of Vaud, Switzerland.

We also make available on our website, free of charge, our Annual Report and the text of our reports on Form 6-K, including any amendments to these reports, as well as certain other SEC filings, as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Our website address is *www.adctherapeutics.com*. The reference to our website is an inactive textual reference only, and information contained therein or connected thereto is not incorporated into this Annual Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Annual Report to Securityholders**

If we are required to provide an annual report to security holders in response to the requirements of Form 6-K, we will submit the annual report to security holders in electronic format in accordance with the EDGAR Filer Manual.

**ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

The Company's activities expose it to the following financial risks: market risk (share price, currency and interest rate risk), credit risk and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance.

Market risk arises from our exposure to fluctuation in share price and currency exchange rates. We are exposed to market risks in the ordinary course of our business, which are principally limited to share price fluctuations, foreign currency exchange rate fluctuations and to a lesser degree, interest rate fluctuations.

*Foreign Exchange Risk*

We operate internationally and are exposed to foreign exchange risk arising from various currency exposures, primarily with respect to British pounds, Euros and Swiss francs. Transaction exposure arises because the amount of local currency paid or received in transactions denominated in foreign currencies may vary due to changes in exchange rates. Foreign exchange risk arises from:

–forecast costs denominated in a currency other than the entity's functional currency;

–recognized assets and liabilities denominated in a currency other than the entity's functional currency; and

–net investments in foreign operations.

Management believes that foreign exchange risk is not material, as the Company pays invoices mainly in USD and holds cash principally in USD.

We have certain investments in foreign operations whose net assets are exposed to foreign currency translation risk. Currency exposure arising from these net assets of our foreign operations is managed primarily through purchasing goods and services denominated in the relevant foreign currencies.

At December 31, 2022, if the USD had weakened / strengthened by 10% against the CHF with all other variables held constant, the pre-tax loss for the year would have been KUSD 742 higher / lower, as a result of foreign exchange losses / gains on translation of CHF-denominated net monetary liabilities.

At December 31, 2022, if the USD had weakened / strengthened by 10% against the EUR with all other variables held constant, the pre-tax loss for the year would have been KUSD 98 higher / lower, mainly as a result of foreign exchange losses / gains on translation of EUR-denominated net monetary liabilities.

At December 31, 2022, if the USD had weakened / strengthened by 10% against the GBP with all other variables held constant, the pre-tax loss for the year would have been KUSD 487 higher / lower, mainly as a result of foreign exchange losses / gains on translation of GBP-denominated net monetary liabilities, and the gain on currency translation differences credited directly to equity and arising on the translation of the net assets of ADCT Therapeutics (UK) Limited would have been KUSD 633 higher / lower.

*Interest Rate Risk*

Interest rate risk arises from movements in interest rates which could have adverse effects on our net income or financial position. Changes in interest rates cause variations in interest income and expenses on interest-bearing assets and liabilities, and on the value of the net defined benefit pension obligation.

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In regards to the senior secured term loans, the interest rate is variable and dependent upon market factors. The Company will update the effective interest rate at the end of each reporting period for changes in the rate. See note 23, "Senior secured term loan facility and warrants" for further information. The average EIR for the year ended December 31, 2022 was 14.99%. A hypothetical 100 basis point increase (decrease) in the interest rate as of December 31, 2022 would have increased (decreased) the effective interest expense associated with the Company's senior secured term loan facility by KUSD 272 and (KUSD 273), respectively.

*Credit Risk*

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities and from our financing activities, including deposits with banks and other financial institutions (see note 19b, "Credit quality of financial assets" within the audited consolidated financial statements). Our cash and cash equivalents accounts are maintained with well-established, highly rated financial institutions. Our wholly-owned subsidiaries are solvent, are managed on a cost-plus service provider basis, and are supported by us as the parent.

To date, the Company's only source of product revenue, which commenced during May 2021, has been sales of ZYNLONTA only in the U.S., which is sold primarily through wholesale distributors. In addition, the Company began earning license revenues in 2022 through its license agreements with third parties. See note 7, "Revenue recognition" for further information. We continuously monitor the creditworthiness of our customers and have internal policies regarding customer credit limits. When determining customer allowances for estimated credit losses, the Company analyzes accounts that are past due, the creditworthiness of its customers, current economic conditions and, when sufficient historical data becomes available, actual credit losses incurred by the Company. As of December 31, 2022, the Company did not record an allowance for expected credit losses as it was considered immaterial.

*Liquidity Risk*

Liquidity risk is the risk that we may not be able to generate sufficient cash resources to settle our obligations in full as they fall due or can do so only on terms that are materially disadvantageous. Prudent liquidity risk management implies maintaining sufficient cash to cover working capital requirements. Cash is monitored by our management.

Funding and liquidity risks are reviewed regularly by our board of directors and management. Our board of directors reviews our ongoing liquidity risks quarterly as part of the financial review process and on an ad hoc basis. To date, we have financed our operations primarily through equity financings, including our initial public offering and follow-on offering, convertible debt financings, and additional funds

provided by collaborations and royalty financings. See note 23, "Senior secured term loan facility and warrants", note 24, "Convertible loans" and note 27, "Deferred royalty obligation" within the audited consolidated financial statements.

**ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

Not applicable

**PART II**

**ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

**A.Defaults**

None

**B.Arrears and Delinquencies** 

None

**ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

On August 15, 2022, the Company issued warrants to purchase an aggregate of 4,412,840 common shares and an aggregate of 2,390,297 common shares to Deerfield Partners, L.P., and Deerfield Private Design Fund IV, L.P., as partial consideration for such parties exchanging USD 115.0 million aggregate principal amount of the Company's senior secured convertible notes. The warrants consist of warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share and warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 per share. Each warrant is exercisable, on a cash or a cashless basis, at the option of the holder at any time prior to 4:00 p.m. (Zurich time) on May 19, 2025. The warrants contain customary anti-dilution adjustments and entitle holders to receive any dividends or other distributions paid on the underlying common shares prior to their expiration on an as-exercised basis. Each holder also may require the Company to repurchase the warrants for their Black Scholes-based fair value in connection with certain transformative transactions or changes of control of the Company that occur prior to their expiration. The transaction was not registered under the Securities Act in reliance on Section 4(a)(2) of the Securities Act, as it did not involve a public offering.

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On August 15, 2022, the Company issued warrants to purchase an aggregate of 527,295 common shares to the lenders under its Loan Agreement, as consideration for such parties providing the loans under the Loan Agreement. The warrants have an exercise price of USD 8.30 per share. Each warrant is exercisable, on a cash or a cashless basis, at the option of the holder at any time prior to 4:00 p.m. (Zurich time) on August 15, 2032. The warrants contain customary anti-dilution adjustments and will entitle holders to receive any dividends or other distributions paid on the underlying common shares prior to their expiration on an as-exercised basis. The transaction was not registered under the Securities Act in reliance on Section 4(a)(2) of the Securities Act, as it did not involve a public offering.

On September 6, 2022, the Company issued and sold an aggregate of 733,568 common shares at USD 8.52 per share to Owl Rock Opportunistic Master Fund II, L.P. and OR Opportunistic DL (C), L.P. The transaction was not registered under the Securities Act in reliance on Section 4(a)(2) of the Securities Act, as it did not involve a public offering.

**ITEM 15.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

**A.Disclosure Controls and Procedures**

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as required by Rule 13a-15(b) under the Exchange Act. Based upon this evaluation, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has concluded that, as of the end of the period covered by this annual report, our disclosure controls and procedures were effective in ensuring that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in by the SEC's rules and forms, and that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on such evaluations, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures were effective in recording, processing, summarizing and reporting on a timely basis, information required to be disclosed in the periodic filings that we file or submit under the Exchange Act, and that such information is accumulated and communicated to management, including our Chief Executive and Chief Financial Officers, as appropriate, to allow timely decisions regarding required disclosure.

**B.Management's Annual Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed by or under the supervision of the Chief Executive Officer and Chief Financial Officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with IFRS.

As of December 31, 2022, our management conducted an assessment of the effectiveness of the Company's internal control over financial reporting based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this assessment, our management has determined that the Company's internal control over financial reporting as of December 31, 2022 is effective.

Our internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of our assets; (2) provide reasonable assurances that our transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that our receipts and expenditures are being made only in accordance with authorizations of management; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

**C.Attestation Report of the Registered Public Accounting Firm**

The effectiveness of our internal control over financial reporting as of December 31, 2022 has been audited by PricewaterhouseCoopers SA, an independent registered public accounting firm. Their report is included on page F-2. PricewaterhouseCoopers SA is a member of the Chamber of Public Accountants, Lausanne, Switzerland.

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**D.Changes in Internal Control Over Financial Reporting**

There were no changes to internal control over financial reporting during the year ended December 31, 2022 that would have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**E.Conduct of Risk Assessment**

We strive to continuously identify, assess, and mitigate financial and other risks when conducting and managing our business. The responsibility of risk assessment and management is allocated to the Board of Directors, Audit Committee and management. See "Directors, Senior Management and Employees—Board Practices" and note 5, "Financial Risk Management" contained in the Consolidated IFRS Financial Statements for the year ended December 31, 2022.

**ITEM 16A.&nbsp;&nbsp;&nbsp;&nbsp;Audit Committee Financial Experts**

Our board of directors has determined that each of Vivian Monges and Jacques Theurillat is considered an "audit committee financial expert" as defined by the SEC and satisfies the "independence" requirements set forth in Rule 10A-3 under the Exchange Act.

**ITEM 16B.&nbsp;&nbsp;&nbsp;&nbsp;Code of Ethics**

We have adopted a Code of Business Conduct and Ethics (the "Code of Conduct") that is applicable to all of our employees, executive officers and directors. The Code of Conduct is available on our website *www.adctherapeutics.com.* Our board of directors is responsible for overseeing the Code of Conduct and is required to approve any waivers of the Code of Conduct. We expect that any amendments to the Code of Conduct, or any waivers of its requirements, will be disclosed in our annual report on Form 20-F. For the year ended December 31, 2022, we did not grant any waivers of the Code of Conduct.

**Item 16C.&nbsp;&nbsp;&nbsp;&nbsp;Principal Accountant Fees and Services**

---

| | | |
|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|<br>**in USD thousands** | **2022** | **2021** |
| Audit fees | 1264 | 1229 |
| Tax fees | 157 | 101 |
| Audit-related fees | 14 | 5 |
| **Total Fees** | **1435** | **1335** |

---

For the years ended December 31, 2022 and 2021, PricewaterhouseCoopers SA was the Company's auditor for the IFRS and statutory accounts.

Audit fees include the standard audit work performed each fiscal year necessary to allow the auditor to issue an opinion on our financial statements and to issue an opinion on the local statutory financial statements. Audit fees also include services that can be provided only by the external auditor such as reviews of quarterly financial results and review of our securities offering documents.

Tax fees are fees billed for professional services for tax compliance and tax advice.

Audit-related fees consisted of fees billed for assurance and related services that were reasonably related to the performance of the audit or review of our financial statements or for services that were traditionally performed by the external auditor.

*Pre-Approval Policies and Procedures*

In accordance with the requirements of the U.S. Sarbanes-Oxley Act of 2002 and rules issued by the SEC, we review and pre-approve of any services performed by PricewaterhouseCoopers SA. The procedures require that all proposed future engagements of PricewaterhouseCoopers SA for audit and permitted non-audit work are submitted to the Audit Committee for approval prior to the beginning of any such service. In accordance with this policy, all services performed by and fees paid to PricewaterhouseCoopers SA in this Item 16C. were approved by the Audit Committee.

**ITEM 16D.&nbsp;&nbsp;&nbsp;&nbsp;Exemptions from the Listing Standards for Audit Committees**

None.

**ITEM 16E.&nbsp;&nbsp;&nbsp;&nbsp;Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

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During the year ended December 31, 2022, no purchases of our equity securities were made by or on behalf of ADC Therapeutics SA or any affiliated purchaser.

**ITEM 16F.&nbsp;&nbsp;&nbsp;&nbsp;Change in Registrant's Certifying Accountant**

Not applicable.

**ITEM 16G.&nbsp;&nbsp;&nbsp;&nbsp;Corporate Governance**

As a "foreign private issuer," as defined by the SEC, we are permitted to follow home country corporate governance practices, instead of certain corporate governance standards required by the NYSE for U.S. companies. Accordingly, we follow Swiss corporate governance rules in lieu of certain of the NYSE's corporate governance requirements. The significant differences between our Swiss corporate governance rules and the NYSE's corporate governance requirements are set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from the requirement that a majority of the board of directors be comprised of independent directors and that there be regularly scheduled meetings with only the independent directors present. Swiss law does not have such a requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from the requirements that the compensation committee and the nomination and corporate governance committee be comprised of independent directors. Swiss law does not have such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from quorum requirements applicable to meetings of shareholders. Swiss law does not require such quorum requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from the requirement that independent directors meet at regularly scheduled executive sessions. Swiss law does not have such a requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from the requirement that listed companies adopt and disclose corporate governance guidelines that cover certain minimum specified subjects related to director qualifications and responsibilities. Swiss law does not require the adoption or disclosure of such guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from the requirement to disclose within four business days of any determination to grant a waiver of the Code of Conduct to directors and executive officers. Although we will require approval by our board of directors for any such waiver, we may choose not to disclose the waiver in the manner set forth in the NYSE listing standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exemption from the requirement to obtain shareholder approval for certain issuances of securities, including shareholder approval of share option plans. Our articles of association provide that our board of directors is authorized, in certain instances, to issue a certain number of common shares without re-approval by our shareholders.

**ITEM 16H.&nbsp;&nbsp;&nbsp;&nbsp;Mine Safety Disclosure**

Not applicable.

**ITEM 16I.&nbsp;&nbsp;&nbsp;&nbsp;Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**PART III**

**ITEM 17.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements**

We have responded to Item 18 in lieu of this item.

**ITEM 18.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements**

Financial Statements are filed as part of this Annual Report, beginning on page F-1.

**ITEM 19.&nbsp;&nbsp;&nbsp;&nbsp;Exhibits**

The following documents are filed as part of Annual Report on Form 20-F.

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**EXHIBIT INDEX**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporation by Reference** | **Incorporation by Reference** | **Incorporation by Reference** | **Incorporation by Reference** |
|<br>**Exhibit No.** |<br>**Description** | **Form** | **File No.** | **Exhibit No.** | **Filing Date** |
| 1.1\* | <u>[Articles of Association of ADC Therapeutics SA](exhibit11articlesofassocia.htm)</u> |  |  |  |  |
| 2.1\* | <u>[Description of Securities](exhibit21descriptionofsecu.htm)</u> |  |  |  |  |
| 2.2 | <u>[Registration Rights Agreement, dated August 15, 2022, between ADC Therapeutics SA and Deerfield Partners, L.P. and Deerfield Private Design Fund IV, L.P.](https://www.sec.gov/Archives/edgar/data/1771910/000095010322014030/dp178690_ex9902.htm)</u> | 6-K | 001-39071 | 99.2 | August 15, 2022 |
| 2.3 | <u>[Registration Rights Agreement, dated August 15, 2022, between ADC Therapeutics SA and OR Opportunistic DL (C), L.P., Owl Rock Opportunistic Master Fund II, L.P., Oaktree LSL Holdings EURRC S.à r.l., Oaktree Specialty Lending Corporation, Oaktree AZ Strategic Lending Fund, L.P., Oaktree Strategic Credit Fund, Oaktree Diversified Income Fund, Inc., and Oaktree Loan Acquisition Fund, L.P.](https://www.sec.gov/Archives/edgar/data/1771910/000095010322014030/dp178690_ex9905.htm)</u> | 6-K | 001-39071 | 99.5 | August 15, 2022 |
| 2.4 | <u>[Registration Rights Agreement, dated February 6, 2023, between ADC Therapeutics SA and Oaktree Fund Administration LLC, OCM Strategic Credit Investments S.à r.l., OCM Strategic Credit Investments 2 S.à.r.l., Oaktree Gilead Investment Fund AIF (Delaware), L.P., Oaktree Huntington-GCF Investment Fund (Direct Lending AIF), L.P., Oaktree Specialty Lending Corporation, and Pathway Strategic Credit Fund III, L.P.](https://www.sec.gov/Archives/edgar/data/1771910/000095010323001903/dp188380_ex0401.htm)</u> | 6-K | 001-39071 | 4.1 | February 6, 2023 |
| 4.1# | <u>[Second Amended and Restated License Agreement among ADC Products (UK) Limited, ADC Therapeutics SA and MedImmune Limited, dated May 9, 2016](https://www.sec.gov/Archives/edgar/data/1771910/000114036120009738/nt10009045x3_ex10-1.htm)</u> | F-1 | 333-237841 | 10.1 | April 24, 2020 |
| 4.2# | <u>[Amendment #1 to the Second Amended and Restated License Agreement among ADC Products (UK) Limited, ADC Therapeutics SA and MedImmune Limited, dated September 19, 2018](https://www.sec.gov/Archives/edgar/data/1771910/000114036120009738/nt10009045x3_ex10-2.htm)</u> | F-1 | 333-237841 | 10.2 | April 24, 2020 |
| 4.3§ | <u>[Form of Indemnity Agreement with directors and officers](https://www.sec.gov/Archives/edgar/data/1771910/000114036120009738/nt10009045x3_ex10-12.htm)</u> | F-1 | 333-237841 | 10.12 | April 24, 2020 |
| 4.4#† | <u>[Share Purchase Agreement between Overland ADCT BioPharma (CY) Limited, Overland Pharmaceuticals (CY) Inc. and ADC Therapeutics SA, dated November 30, 2020](https://www.sec.gov/Archives/edgar/data/1771910/000177191021000010/ex44-overlandxadctspa.htm)</u> | 20-F | 001-39071 | 4.4 | March 18, 2021 |
| 4.5#† | <u>[Shareholders Agreement between Overland ADCT BioPharma (CY) Limited, Overland ADCT BioPharma (HK) Limited, Overland Pharmaceuticals (CY) Inc. and ADC Therapeutics SA, dated December 11, 2020](https://www.sec.gov/Archives/edgar/data/1771910/000177191021000010/ex45-overlandxadctsha.htm)</u> | 20-F | 001-39071 | 4.5 | March 18, 2021 |
| 4.6#† | <u>[License and Collaboration Agreement between ADC Therapeutics SA and Overland ADCT BioPharma (CY) Limited, dated December 11, 2020](https://www.sec.gov/Archives/edgar/data/1771910/000177191021000010/ex46overland-adctlicensean.htm)</u> | 20-F | 001-39071 | 4.6 | March 18, 2021 |
| 4.7#† | <u>[Purchase and Sale Agreement between ADC Therapeutics SA and entities managed by HealthCare Royalty Management, LLC, dated August 25, 2021](https://www.sec.gov/Archives/edgar/data/1771910/000095010321012944/dp156677_ex9901.htm)</u> | 6-K | 001-39071 | 99.1 | August 26, 2021 |
| 4.8#† | <u>[License Agreement between ADC Therapeutics SA and Mitsubishi Tanabe Pharma Corporation, dated January 18, 2022](https://www.sec.gov/Archives/edgar/data/1771910/000177191022000004/ex415-japanagreement.htm)</u> | 20-F | 001-39071 | 4.15 | March 17, 2022 |
| 4.9\*#† | <u>[License Agreement, dated July 8, 2022, between ADC Therapeutics SA and Swedish Orphan Biovitrum AB (publ)](exhibit49adct-sobixlicense.htm)</u>  |  |  |  |  |
| 4.10† | <u>[Loan Agreement and Guaranty, dated August 15, 2022, among ADC Therapeutics SA, ADC Therapeutics (UK) Limited, ADC Therapeutics America, Inc., the lenders party thereto and Owl Rock Opportunistic Master Fund I, L.P., as administrative agent and collateral agent](https://www.sec.gov/Archives/edgar/data/1771910/000095010322014030/dp178690_ex9903.htm)</u> | 6-K | 001-39071 | 99.3 | August 15, 2022 |
| 4.11 | <u>[Form of Deerfield Warrant](https://www.sec.gov/Archives/edgar/data/1771910/000095010322014030/dp178690_ex9901.htm)</u> | 6-K | 001-39071 | 99.1 | August 15, 2022 |
| 4.12 | <u>[Form of Lender Warrant](https://www.sec.gov/Archives/edgar/data/1771910/000095010322014030/dp178690_ex9904.htm)</u> | 6-K | 001-39071 | 99.4 | August 15, 2022 |
| 4.13 | <u>[Letter Agreement, dated February 2, 2023, between ADC Therapeutics SA and A.T. Holdings II Sàrl](https://www.sec.gov/Archives/edgar/data/1771910/000095010323001903/dp188380_ex9901.htm)</u> | 6-K | 001-39071 | 99.1 | February 6, 2023 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 4.14§ | <u>[2019 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/0001771910/000095010321006862/dp150666_ex9901.htm)</u> | S-8 | 333-255831 | 99.1 | May 6, 2021 |
| 4.15§ | <u>[Employee Stock Purchase Plan](https://www.sec.gov/Archives/edgar/data/1771910/000095010322011724/dp176397_ex9901.htm)</u> | S-8 | 333-265917 | 99.1 | June 30, 2022 |
| 8.1 | <u>[List of subsidiaries](https://www.sec.gov/Archives/edgar/data/1771910/000177191022000004/ex81-subsidiarylist.htm)</u> | 20-F | 001-39071 | 8.1 | March 17, 2022 |
| 12.1\* | <u>[Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex121-ceocertification3021.htm)</u> |  |  |  |  |
| 12.2\* | <u>[Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex122-cfocertification3021.htm)</u> |  |  |  |  |
| 13.1\* | <u>[Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex131-ceocertification9061.htm)</u> |  |  |  |  |
| 13.2\* | <u>[Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex132-cfocertification9061.htm)</u> |  |  |  |  |
| 15.1\* | <u>[Consent of PricewaterhouseCoopers SA, independent registered public accounting firm](exhibit151adct-consent20xf.htm)</u> |  |  |  |  |
| 101INS | XBRL Instance Document |  |  |  |  |
| 101.SCH | XBRL Taxonomy Extension Schema Document |  |  |  |  |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  |
| \* Filed herewith. | \* Filed herewith. |  |  |  |  |
| # Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the Company as private or confidential | # Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the Company as private or confidential | # Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the Company as private or confidential | # Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the Company as private or confidential | # Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the Company as private or confidential | # Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the Company as private or confidential |
| † Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. | † Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. | † Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. | † Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. | † Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. | † Certain schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. |
| § Management contract, compensatory plan or arrangement. | § Management contract, compensatory plan or arrangement. | § Management contract, compensatory plan or arrangement. | § Management contract, compensatory plan or arrangement. | § Management contract, compensatory plan or arrangement. | § Management contract, compensatory plan or arrangement. |

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**Signatures**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

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| | | |
|:---|:---|:---|
| | | ADC Therapeutics SA |
| Date: March 15, 2023 |  |  |
|  | By:  | /s/ Ameet Mallik |
|  |  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Ameet Mallik<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |
|  | By:  | /s/ Jose Carmona |
|  |  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Jose Carmona<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer |

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

**INDEX TO FINANCIAL STATEMENTS**

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| | |
|:---|:---|
| **Audited Financial Statements — ADC Therapeutics SA** | |
| <u>[Report of Independent Registered Public Accounting Firm (PCAOB ID](#i42f66f9a31784fbdb78f7a61e7467d0f_286)</u>1358<u>[)](#i42f66f9a31784fbdb78f7a61e7467d0f_286)</u> | <u>[F-2](#i42f66f9a31784fbdb78f7a61e7467d0f_286)</u> |
| <u>[Consolidated Statement of Operation for the fiscal years ended December 31, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_289)[2](#i42f66f9a31784fbdb78f7a61e7467d0f_289)[, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_289)[1](#i42f66f9a31784fbdb78f7a61e7467d0f_289)[and 20](#i42f66f9a31784fbdb78f7a61e7467d0f_289)</u>20 | <u>[F-5](#i42f66f9a31784fbdb78f7a61e7467d0f_289)</u> |
| <u>[Consolidated Statement of Comprehensive Loss for the fiscal years ended December 31, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_292)[2](#i42f66f9a31784fbdb78f7a61e7467d0f_292)[, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_292)[1](#i42f66f9a31784fbdb78f7a61e7467d0f_292)[and 20](#i42f66f9a31784fbdb78f7a61e7467d0f_292)</u>20 | <u>[F-6](#i42f66f9a31784fbdb78f7a61e7467d0f_292)</u> |
| <u>[Consolidated Balance Sheet as of December 31, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_295)[2](#i42f66f9a31784fbdb78f7a61e7467d0f_295)[and 202](#i42f66f9a31784fbdb78f7a61e7467d0f_295)</u>1 | <u>[F-7](#i42f66f9a31784fbdb78f7a61e7467d0f_295)</u> |
| <u>[Consolidated Statement of Changes in Equity for the fiscal years ended December 31, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_298)[2](#i42f66f9a31784fbdb78f7a61e7467d0f_298)[, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_298)[1](#i42f66f9a31784fbdb78f7a61e7467d0f_298)[and 20](#i42f66f9a31784fbdb78f7a61e7467d0f_298)</u>20 | <u>[F-8](#i42f66f9a31784fbdb78f7a61e7467d0f_298)</u> |
| <u>[Consolidated Statement of Cash Flows for the fiscal years ended December 31, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_301)[2](#i42f66f9a31784fbdb78f7a61e7467d0f_301)[, 202](#i42f66f9a31784fbdb78f7a61e7467d0f_301)[1](#i42f66f9a31784fbdb78f7a61e7467d0f_301)[and 20](#i42f66f9a31784fbdb78f7a61e7467d0f_301)</u>20 | <u>[F-9](#i42f66f9a31784fbdb78f7a61e7467d0f_301)</u> |
| <u>[Notes to the Consolidated Financial Statements](#i42f66f9a31784fbdb78f7a61e7467d0f_304)</u> | <u>[F-10](#i42f66f9a31784fbdb78f7a61e7467d0f_304)</u> |

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors and Shareholders of ADC Therapeutics SA

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

We have audited the accompanying consolidated balance sheets of ADC Therapeutics SA and its subsidiaries (the "Company") as of December 31, 2022 and 2021, and the related consolidated statements of operation, comprehensive (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2022, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

***Basis for Opinions***

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Annual Report on Internal Control over Financial Reporting appearing under Item 15B. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting***

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

***Critical Audit Matters***

The critical audit matters communicated below are matters arising from the current period audit of the

consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

*Royalty purchase agreement with HealthCare Royalty Partners – Deferred royalty obligation accretion of the liability*

As described in Notes 3.14, 6 and 27 to the Consolidated financial statements, on August 25, 2021, the Company entered into a royalty purchase agreement with certain entities managed by HealthCare Royalty Management, LLC (HCR) for up to USD 325.0 million. The Company's aggregate royalty obligations are capped at 2.50 times the amount paid by HCR under the agreement (USD 562.5 million as of December 31, 2022), or at 2.25 times the amount paid by HCR under the agreement (USD 506.3 million as of December 31, 2022) if HCR receives royalty payments exceeding a mid-nine-digit amount on or prior to March 31, 2029 (the "Royalty Cap"). Once the Royalty Cap is reached, the royalty purchase agreement will terminate. The Company has evaluated the terms of the royalty purchase agreement and concluded that the features of the investment amount are similar to those of a debt instrument. To determine the accretion of the liability related to the deferred royalty obligation, the Company is required to estimate the total amount of future royalty payments and estimate the timing of such payments to HCR based on the Company's revenue projections. The Company used an independent valuation firm to assist in determining the total amount of future royalty payments and estimated timing of such payment to HCR using an option pricing Monte Carlo simulation model. The amount ultimately received by the Company will be accreted to the total amount of the royalty payments necessary to extinguish the Company's obligation under the agreement, which will be recorded as interest expense over the life of the royalty purchase agreement. The estimate of this total interest expense resulted in an effective interest rate of 10%. The Company will periodically assess the expected payments to HCR based on its underlying revenue projections and to the extent the amount or timing of such payments is materially different than its initial estimates it will record a cumulative catch-up adjustment. The significant assumptions used to estimate the HCR deferred royalty obligation accretion of the liability include the revenue projections and timing of payments.

The principal considerations for our determination that performing procedures relating to the Royalty purchase agreement with HealthCare Royalty Partners – Deferred royalty obligation accretion of the liability is a critical audit matter are the significant judgment by management when determining the value of the deferred royalty obligation liability. This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating the audit evidence obtained related to the determination of the deferred royalty obligation and management's assumptions related to the revenue projections used to determine the expected cash outflows through the Monte Carlo simulation model. In addition, the audit effort involved the use of professionals with specialized skills and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management's determination of the accretion of the liability. These procedures also include, among others, (i) reviewing the reasonableness of the timing of the future royalty payments entering in the calculation of the deferred royalty obligation liability, (ii) the involvement of professionals with specialized skill and knowledge to assist in reviewing the revenue projections as well as reviewing the reasonableness of the valuation model used to determine the carrying value of the total amount of future royalty payments. Evaluating management's assumptions related to the deferred royalty obligation liability also involved testing the completeness and accuracy of inputs provided by management and evaluating management's assumptions based on external market and industry data.

*Product Revenue – Gross-to-net (GTN) sales adjustments*

As described in Notes 3.18, 6 and 7 to the consolidated financial statements, the Company began generating revenue from the sale of ZYNLONTA in the U.S. in 2021 following FDA accelerated regulatory and marketing approval. Revenue from the sale of products is recognized in a manner that depicts the transfer of those promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods. Revenue is also reduced for gross-to-net ("GTN") sales adjustments, which include government rebates, chargebacks, distributor service fees, other rebates and administrative fees, sales returns and allowances and sales discounts. The significant assumptions used to estimate GTN sales adjustments include historical experience and drug product analogs in the absence of Company experience.

The principal considerations for our determination that performing procedures relating to the Product revenue – Gross-to-net (GTN) sales adjustments is a critical audit matter are the significant judgment by management when determining the GTN sales adjustments. This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating the audit evidence obtained related to the valuation of the GTN sales adjustments and management's assumptions related to historical experience and drug product analogs in the absence of Company experience included in the determination of the GTN sales adjustments.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management's review of GTN sales adjustments. These procedures also included, among others, (i) testing management's process for developing the estimates; and (ii) testing chargebacks settlements and performing retrospective reviews on initial estimates. Evaluating management's assumptions

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u>

related to the GTN sales adjustments also involved testing the completeness and accuracy of inputs provided by management and evaluating management's assumptions based on historical experience, external market, and industry data, and whether these assumptions were consistent with evidence obtained in other areas of the audit.

/s/ PricewaterhouseCoopers SA

Lausanne, Switzerland

March 15, 2023

We have served as the Company's auditor since 2015.

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| <u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u> |
| **ADC Therapeutics SA, Epalinges** |

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**CONSOLIDATED STATEMENT OF OPERATION**

**(in KUSD)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| |<br>**Note** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp; Product revenues, net | 7 | 74908 | 33917 |  |
| &nbsp;&nbsp; License revenue | 7 | 135000 |  |  |
| **Total revenue** |  | **209908** | **33917** | **—** |
| Operating expense |  |  |  |  |
| &nbsp;&nbsp;Cost of product sales | 9 | (4579) | (1393) |  |
| &nbsp;&nbsp;Research and development expenses | 9 | (187898) | (158002) | (142032) |
| &nbsp;&nbsp;Selling and marketing expenses | 9 | (69052) | (64780) | (22101) |
| &nbsp;&nbsp;General and administrative expenses | 9 | (72006) | (71462) | (55130) |
| Total operating expense |  | (333535) | (295637) | (219263) |
| **Loss from operations** |  | **(123627)** | **(261720)** | **(219263)** |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;Financial income | 27 | 17970 | 66 | 832 |
| &nbsp;&nbsp;Financial expense | 16, 23, 24, 27 | (36924) | (18340) | (4926) |
| &nbsp;&nbsp;Non-operating (expense) income | 10 | (12080) | 28489 | (22606) |
| Total other (expense) income |  | (31034) | 10215 | (26700) |
| **Loss before taxes** |  | **(154661)** | **(251505)** | **(245963)** |
| &nbsp;&nbsp;Income tax (expense) benefit | 11 | (1139) | 21479 | (327) |
| **Net loss** |  | **(155800)** | **(230026)** | **(246290)** |
| **Net loss attributable to:** |  |  |  |  |
| &nbsp;&nbsp;Owners of the parent |  | (155800) | (230026) | (246290) |
| **Net loss per share** |  |  |  |  |
| &nbsp;&nbsp;Net loss per share, basic and diluted | 32 | (1.99) | (3.00) | (3.77) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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| <u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u> |
| **ADC Therapeutics SA, Epalinges** |

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**CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS)**

**(in KUSD)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| |<br>**Note** | **2022** | **2021** | **2020** |
| **Net loss** |  | **(155800)** | **(230026)** | **(246290)** |
| **Other comprehensive loss:** |  |  |  |  |
| <u>Items that will not be reclassified to profit or loss</u> |  |  |  |  |
| &nbsp;&nbsp;Remeasurements of defined benefit plan | 22 | 3715 | (587) | (305) |
| Total items that will not be reclassified to profit or loss |  | 3715 | (587) | (305) |
| <u>Items that may be reclassified to profit or loss</u> |  |  |  |  |
| &nbsp;&nbsp;Currency translation differences |  | (539) | (62) | 176 |
| Total items that may be reclassified to profit or loss |  | (539) | (62) | 176 |
| **Other comprehensive loss** |  | **3176** | **(649)** | **(129)** |
| **Total comprehensive loss** |  | **(152624)** | **(230675)** | **(246419)** |
| **Attributable to:** |  |  |  |  |
| &nbsp;&nbsp;Owners of the parent |  | (152624) | (230675) | (246419) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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| <u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u> |
| **ADC Therapeutics SA, Epalinges** |

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**CONSOLIDATED BALANCE SHEET**

**(in KUSD)**

---

| | | | |
|:---|:---|:---|:---|
| | | **As of December 31,** | **As of December 31,** |
| |<br>**Note** | **2022** | **2021** |
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | 5.1, 19b | 326441 | 466544 |
| &nbsp;&nbsp;Accounts receivable, net | 3.4 | 72971 | 30218 |
| &nbsp;&nbsp;Inventory | 14 | 18564 | 11122 |
| &nbsp;&nbsp;Other current assets | 12 | 28039 | 17298 |
| **Total current assets** |  | **446015** | **525182** |
| **Non-current assets** |  |  |  |
| &nbsp;&nbsp;Property, plant and equipment | 15 | 3261 | 4066 |
| &nbsp;&nbsp;Right-of-use assets | 16 | 6720 | 7164 |
| &nbsp;&nbsp;Intangible assets | 17 | 14360 | 13582 |
| &nbsp;&nbsp;Interest in joint venture | 18 | 31152 | 41236 |
| &nbsp;&nbsp;Deferred tax asset | 20 | 26757 | 26049 |
| &nbsp;&nbsp;Other long-term assets |  | 903 | 693 |
| **Total non-current assets** |  | **83153** | **92790** |
| **Total assets** |  | **529168** | **617972** |
| **LIABILITIES AND EQUITY** |  |  |  |
| **Current liabilities** |  |  |  |
| &nbsp;&nbsp;Accounts payable |  | 12351 | 12080 |
| &nbsp;&nbsp;Other current liabilities | 21 | 73035 | 50497 |
| &nbsp;&nbsp;Lease liabilities, short-term | 16 | 1097 | 1029 |
| &nbsp;&nbsp;Current income tax payable |  |  | 3754 |
| &nbsp;&nbsp;Senior secured term loans, short-term | 23 | 12474 |  |
| &nbsp;&nbsp;Convertible loans, short-term | 24 |  | 6575 |
| **Total current liabilities** |  | **98957** | **73935** |
| **Non-current liabilities** |  |  |  |
| &nbsp;&nbsp;Senior secured term loans, long-term | 23 | 97240 |  |
| &nbsp;&nbsp;Convertible loans, long-term | 24 |  | 87153 |
| &nbsp;&nbsp;Convertible loans, derivatives | 24 |  | 37947 |
| &nbsp;&nbsp;Warrant obligations | 23, 25 | 1788 |  |
| &nbsp;&nbsp;Deferred royalty obligation, long-term | 27 | 212353 | 218664 |
| &nbsp;&nbsp;Deferred gain of joint venture | 18 | 23539 | 23539 |
| &nbsp;&nbsp;Lease liabilities, long-term | 16 | 6564 | 6994 |
| &nbsp;&nbsp;Defined benefit pension liabilities | 22 |  | 3652 |
| **Total non-current liabilities** |  | **341484** | **377949** |
| **Total liabilities** |  | **440441** | **451884** |
| **Equity attributable to owners of the parent** |  |  |  |
| &nbsp;&nbsp;Share capital | 28 | 7312 | 6445 |
| &nbsp;&nbsp;Share premium | 28 | 1007452 | 981827 |
| &nbsp;&nbsp;Treasury shares | 28 | (679) | (128) |
| &nbsp;&nbsp;Other reserves | 22, 26 | 155683 | 102646 |
| &nbsp;&nbsp;Cumulative translation adjustments |  | (356) | 183 |
| &nbsp;&nbsp;Accumulated losses |  | (1080685) | (924885) |
| **Total equity attributable to owners of the parent** |  | **88727** | **166088** |
| **Total liabilities and equity** |  | **529168** | **617972** |

---

The accompanying notes are an integral part of these consolidated financial statements.

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| <u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u> |
| **ADC Therapeutics SA, Epalinges** |

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**CONSOLIDATED STATEMENT OF CHANGES IN EQUITY**

**(in KUSD)**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Note** | **Share <br>capital** | **Share <br>premium** | **Other <br>reserves** | **Treasury <br>shares** | **Cumulative <br>translation <br>adjustment** | **Accumulated <br>losses** | **Total** |
| **January 1, 2020** |  | **4361** | **549922** | **5473** | **(100)** | **69** | **(448569)** | **111156** |
| &nbsp;&nbsp;Loss for the period |  |  |  |  |  |  | (246290) | (246290) |
| &nbsp;&nbsp;Remeasurement of defined benefit pension | 22 |  |  | (305) |  |  |  | (305) |
| &nbsp;&nbsp;Translation adjustment |  |  |  |  |  | 176 |  | 176 |
| &nbsp;&nbsp;**Total other comprehensive (loss) income** |  | **—** | **—** | **(305)** | **—** | **176** | **—** | **(129)** |
| &nbsp;&nbsp;**Total comprehensive (loss) income for the year** |  | **—** | **—** | **(305)** | **—** | **176** | **(246290)** | **(246419)** |
| &nbsp;&nbsp;Shares surrendered to redeem share purchase plan promissory notes | 26, 28 |  | 11208 |  | (11208) |  |  |  |
| &nbsp;&nbsp;Issuance of shares through capitalization of reserves | 28 | 393 | (393) |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of shares to be held as treasury shares | 28 | 34 |  |  | (34) |  |  |  |
| &nbsp;&nbsp;Grant of shares to settle 2014 incentive plan awards | 26, 28 |  | (29) |  | 29 |  |  |  |
| &nbsp;&nbsp;Issuance of shares at initial public offering | 28 | 1007 | 231661 |  |  |  |  | 232668 |
| &nbsp;&nbsp;Sale of shares under greenshoe option | 28 |  | 23591 |  | 11309 |  |  | 34900 |
| &nbsp;&nbsp;Transaction costs, initial public offering and greenshoe option | 28 |  | (23355) |  |  |  |  | (23355) |
| &nbsp;&nbsp;Issuance of shares at follow-on offering | 28 | 519 | 203481 |  |  |  |  | 204000 |
| &nbsp;&nbsp;Transaction costs, follow-on offering | 28 |  | (15084) |  |  |  |  | (15084) |
| &nbsp;&nbsp;Exercise of options | 28 |  | 54 |  |  |  |  | 54 |
| &nbsp;&nbsp;Share-based compensation expense | 26 |  |  | 37585 |  |  |  | 37585 |
| &nbsp;&nbsp;**Total transactions with owners** |  | **1953** | **431134** | **37585** | **96** | **—** | **—** | **470768** |
| **December 31, 2020** |  | **6314** | **981056** | **42753** | **(4)** | **245** | **(694859)** | **335505** |
| &nbsp;&nbsp;Loss for the period |  |  |  |  |  |  | (230026) | (230026) |
| &nbsp;&nbsp;Remeasurement of defined benefit pension | 22 |  |  | (587) |  |  |  | (587) |
| &nbsp;&nbsp;Translation adjustment |  |  |  |  |  | (62) |  | (62) |
| &nbsp;&nbsp;**Total other comprehensive loss** |  | **—** | **—** | **(587)** | **—** | **(62)** | **—** | **(649)** |
| &nbsp;&nbsp;**Total comprehensive loss for the period** |  | **—** | **—** | **(587)** | **—** | **(62)** | **(230026)** | **(230675)** |
| &nbsp;&nbsp;Issuance of shares to be held as treasury | 28 | 131 |  |  | (131) |  |  |  |
| &nbsp;&nbsp;Exercise of options and vestings of RSUs | 28 |  | 771 |  | 7 |  |  | 778 |
| &nbsp;&nbsp;Share-based compensation expense | 26 |  |  | 60480 |  |  |  | 60480 |
| &nbsp;&nbsp;**Total transactions with owners** |  | 131 | 771 | 60480 | (124) |  |  | 61258 |
| **December 31, 2021** |  | **6445** | **981827** | **102646** | **(128)** | **183** | **(924885)** | **166088** |
| Loss for the period |  |  |  |  |  |  | (155800) | (155800) |
| Remeasurement of defined benefit pension liability | 22 |  |  | 3715 |  |  |  | 3715 |
| Translation adjustment |  |  |  |  |  | (539) |  | (539) |
| **Total other comprehensive income (loss)** |  | **—** | **—** | **3715** | **—** | **(539)** | **—** | **3176** |
| **Total comprehensive income (loss) for the period** |  | **—** | **—** | **3715** | **—** | **(539)** | **(155800)** | **(152624)** |
| Issuance of shares to be held as treasury | 2 | 254 |  |  | (254) |  |  |  |
| Issuance of shares to be held as treasury, ATM Facility | 28 | 613 | (23) |  | (613) |  |  | (23) |
| Issuance of shares, Deerfield exchange agreement, net of transaction costs | 28 |  | 19640 |  | 194 |  |  | 19834 |
| Issuance of shares, share purchase agreement net of transaction costs | 28 |  | 6070 |  | 60 |  |  | 6130 |
| Vestings of RSUs | 28 |  | (62) |  | 62 |  |  |  |
| Share-based compensation expense | 26 |  |  | 49322 |  |  |  | 49322 |
| &nbsp;&nbsp;**Total transaction with owners** |  | 867 | 25625 | 49322 | (551) |  |  | 75263 |
| **December 31, 2022** |  | **7312** | **1007452** | **155683** | **(679)** | **(356)** | **(1080685)** | **88727** |

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The accompanying notes are an integral part of these consolidated financial statements.

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| |
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| <u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u> |
| **ADC Therapeutics SA, Epalinges** |

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**CONSOLIDATED STATEMENT OF CASH FLOWS**

**(in KUSD)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| |<br>**Note** | **2022** | **2021** | **2020** |
| **Cash used in operating activities** |  |  |  |  |
| Loss for the year |  | (155800) | (230026) | (246290) |
| Adjustments for non-monetary items: |  |  |  |  |
| &nbsp;&nbsp;Share-based compensation expense | 26 | 49322 | 60480 | 37585 |
| &nbsp;&nbsp;Impairment of Assets | 9 | 2704 |  |  |
| &nbsp;&nbsp;Depreciation of property, plant and equipment | 15 | 1017 | 920 | 774 |
| &nbsp;&nbsp;Amortization of intangible assets | 17 | 118 | 129 | 47 |
| &nbsp;&nbsp;Depreciation of right-of-use assets | 16 | 1193 | 1581 | 1151 |
| &nbsp;&nbsp;Gain from reversal of inventory impairment charges | 3 |  | (8100) |  |
| &nbsp;&nbsp;Share of results in joint venture | 18 | 10084 | 6672 | (24368) |
| &nbsp;&nbsp;Deferred income taxes | 20 | (708) | (26049) |  |
| &nbsp;&nbsp;Change in defined benefit pension liability | 22 | 108 | (365) | 276 |
| &nbsp;&nbsp;Convertible loans, derivatives, (decrease) increase in fair value | 10, 24 | (25650) | (34893) | 45411 |
| &nbsp;&nbsp;Warrant obligations, decrease in fair value | 10, 23, 25 | (14466) |  |  |
| &nbsp;&nbsp;Impairment of intangible assets | 17 | 226 |  | 216 |
| &nbsp;&nbsp;Financial income | 27 | (17970) | (66) | (832) |
| &nbsp;&nbsp;Financial expense | 16, 23, 24, 27 | 36733 | 18117 | 4820 |
| &nbsp;&nbsp;Loss on extinguishment | 10, 24 | 42114 |  |  |
| &nbsp;&nbsp;Exchange differences |  | (107) | (185) | 476 |
| Operating loss before working capital changes |  | (71082) | (211785) | (180734) |
| Increase in accounts receivable, net |  | (42753) | (30218) |  |
| Increase in inventory |  | (8964) | (3022) |  |
| Increase in other current assets |  | (3549) | (6356) | (4505) |
| Increase in trade accounts payable |  | 310 | 6798 | 1921 |
| Increase in income taxes |  | 1848 | 4570 | 327 |
| Increase in other liabilities and other payables |  | 20098 | 12518 | 14946 |
| Cash used in operating activities |  | (104092) | (227495) | (168045) |
| Interest paid |  | (10370) | (5280) | (1557) |
| Interest received |  | 1948 | 56 | 797 |
| Interest expense on lease obligations | 16 | 191 | 225 | 105 |
| Payments made under royalty financing transaction | 27 | (10998) | (213) |  |
| Tax paid |  | (13473) | (671) | (29) |
| **Net cash used in operating activities** |  | **(136794)** | **(233378)** | **(168729)** |
| **Cash used in investing activities** |  |  |  |  |
| Payment for purchases of property, plant and equipment | 15 | (577) | (3430) | (801) |
| Payment for purchases of intangible assets | 17 | (1721) | (2946) | (2008) |
| Payment for deposits |  | (210) | (297) | (19) |
| **Net cash used in investing activities** |  | **(2508)** | **(6673)** | **(2828)** |
| **Cash (used in) provided by financing activities** |  |  |  |  |
| Proceeds from senior secured term loans, net of transaction costs | 23 | 112813 |  |  |
| Proceeds from equity issuance, net of transaction costs | 28 | 6130 |  |  |
| Convertible loans exchange | 23, 24 | (118304) |  |  |
| Share capital increases, transaction costs | 28 | (221) |  |  |
| Proceeds from public offering of common shares, net of transaction costs | 28 |  |  | 433158 |
| Proceeds from convertible loans, net of transaction costs | 24 |  | 49591 | 62898 |
| Proceeds from deferred royalty transaction, net of transaction costs | 26 |  | 218002 |  |
| Proceeds from the exercise of stock options | 28 |  | 778 | 54 |
| Principal portion of lease obligations payments | 16 | (1011) | (977) | (1144) |
| **Net cash (used in) provided by financing activities** |  | **(593)** | **267394** | **494966** |
| **Net increase (decrease) in cash and cash equivalents** |  | **(139895)** | **27343** | **323409** |
| Exchange (losses)/gains on cash and cash equivalents |  | (208) | 6 | 235 |
| Cash and cash equivalents at beginning of year |  | 466544 | 439195 | 115551 |
| **Cash and cash equivalents at end of year** |  | **326441** | **466544** | **439195** |
| **Supplemental Non-Cash Investing Information** |  |  |  |  |
| Issuance of shares, Deerfield exchange agreement |  | 19835 |  |  |
| Capital expenditures and intangible asset acquisitions recorded in Accounts payable and Other current liabilities |  |  | 593 | 220 |

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The accompanying notes are an integral part of these consolidated financial statements.

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|:---|
| <u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u> |
| **ADC Therapeutics SA, Epalinges** |
| **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** |

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**1. Corporate information**

ADC Therapeutics SA (the "Company" or "ADCT") was incorporated on June 6, 2011 under the laws of Switzerland. The registered office of the Company is located at Route de la Corniche 3B, 1066 Epalinges, Switzerland. As of December 31, 2022, the Company controls three wholly-owned subsidiaries: ADC Therapeutics America, Inc. ("ADCT America"), which was incorporated in Delaware, USA on December 10, 2014, ADC Therapeutics (UK) Ltd ("ADCT UK"), which was incorporated in England on December 12, 2014 and ADC Therapeutics (NL) B.V. which was incorporated in the Netherlands on February 25, 2022. The Company and its three subsidiaries form the ADCT Group (the "Group").

The Group is focused on the development and commercialization of antibody drug conjugates ("ADCs"), including research, development, human clinical trials, regulatory approval and commercialization. On April 23, 2021, the U.S. Food and Drug Administration ("FDA") approved ZYNLONTA for the treatment of relapsed or refractory diffuse large B-cell lymphoma ("DLBCL") and the Company commenced recognizing revenue upon the sale of ZYNLONTA during the second quarter of 2021. ADCs are drug constructs which combine monoclonal antibodies specific to particular types of cells with cytotoxic molecules or warheads which seek to kill cancer cells to which the ADC attaches. ADCs have extensive potential therapeutic applications in cancer.

These Group consolidated financial statements were authorized for issue by the Board of Directors on March 15, 2023.

**2. Basis of preparation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(i)</u><u>Compliance with International Financial Reporting Standards</u>*

The ADCT Group consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). As of December 31, 2022, the financial statements are presented in thousand dollars (KUSD).

Prior to December 31, 2021, individual components of Non-operating (expense) income were reported separately within the consolidated statement of operations. Prior periods have been recast to conform to the current period presentation. See note 10, "Non-operating (expense) income" for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(ii)</u><u>Historical Cost Convention</u>*

The consolidated financial statements have been prepared under the historical cost convention, except for the defined benefit pension liabilities, where plan assets are measured at fair value. The embedded derivative conversion feature associated with the first and second tranche of convertible loans was measured at fair value for the year ended December 31, 2021, December 31, 2020 and up until the loans were exchanged on August 15, 2022. See note 24, "Convertible loans" for further discussion. The warrant obligations associated with the senior secured term loan facility and Deerfield warrants entered into on August 15, 2022 were measured at fair value for the year ended December 31, 2022. See note 23, "Senior secured term loan facility and warrants" and note 25, "Deerfield warrants" for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(iii)</u><u>Going concern basis</u>*

ADCT is a commercial-stage company developing innovative therapeutics. The Group is exposed to all risks inherent in establishing and developing its business, including the substantial uncertainty that current projects will succeed. The Group's success may also depend on its ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish and maintain a strong patent position and protection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• develop, gain regulatory approval and commercialize drug products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into collaborations with partners in the pharmaceutical industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquire and retain key personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquire additional funding to support its operations.

Since its incorporation, the Group has primarily funded its growth through capital increases and additional funds provided by research collaborations, license agreements, the issuance of the Company's common shares, the issuance of convertible loans, the issuance of term loans and proceeds from a royalty purchase agreement. During the 2020 fiscal year, the Company issued common shares through an initial public and follow-on offering (see 2(v) and 2(vi) within this note) and the issuance of convertible loans (see note 24, "Convertible loans"). During the 2021 fiscal year, the Group entered into a royalty purchase agreement (see note 27, "Deferred royalty obligation"). During the first quarter of 2022 and third quarter of 2022, the Company entered into exclusive license agreements with Mitsubishi Tanabe Pharma

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u><br>

Corporation ("MTPC") and Swedish Orphan Biovitrum AB ("Sobi"), respectively, for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications in Japan and all territories outside the U.S., greater China, Singapore and Japan, respectively. During the third quarter of 2022, the Company drew down USD 120.0 million principal amount of senior secured term loans, entered into an exchange agreement with Deerfield Partners, L.P., and Deerfield Private Design Fund IV, L.P. (collectively, "Deerfield") and sold shares to Owl Rock Opportunistic Master Fund II, L.P. and OR Opportunistic DL (C), L.P. (the "Purchasers") under a share purchase agreement. See note 23, "Senior secured term loan facility and warrants", note 24, "Convertible loans" and note 28, "Share capital" for further information. The Group does not have recourse to bank loans. As a result, the Group is not exposed to liquidity risk through requests for early repayment of loans, other than, pursuant to the senior secured term loan facility, it must maintain a balance of at least USD 60 million in cash and cash equivalents plus any accounts payable that are greater than ninety days old at the end of each quarter.

As of December 31, 2022, the Group's cash and cash equivalents amounted to USD 326.4 million (December 31, 2021: USD 466.5 million).

Management believes that the Group has sufficient resources to meet its financial obligations for at least the next 12 months from the date of issuance of these consolidated financial statements and, as a result, is presenting these consolidated financial statements of the Group on a going concern basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(iv)</u> <u>Share consolidation</u>*

On April 24, 2020, the Company effected a five-to-four share consolidation of its outstanding shares (see note 28, "Share capital"). Accordingly, all share and per share amounts for all periods presented in these consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this share consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(v)</u> <u>Initial Public Offering (IPO)</u>*

On May 19, 2020, the Company completed an IPO on the New York Stock Exchange ("NYSE") in which it issued and sold an aggregate of 14,082,475 common shares at USD 19.00 per share, which included 1,836,844 common shares issued and sold pursuant to the underwriters' exercise in full of their option to purchase additional common shares. The gross proceeds from the IPO were USD 267.6 million, and net proceeds were USD 244.2 million after deducting underwriting discounts and commissions as well as fees and expenses payable by the Company. The IPO resulted in a gross increase of USD 255.3 million in the Company's share premium account prior to transaction costs associated with the IPO share issuance of USD 4.7 million and underwriting discounts and commissions of USD 18.7 million, both of which were charged directly against the Company's share premium account. Further details are contained in note 28, "Share capital."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(vi) Follow-On Public Offering</u>*

On September 28, 2020, the Company completed a public offering on the NYSE in which it issued and sold 6,000,000 common shares at USD 34.00 per share. The gross proceeds of the public offering were USD 204.0 million, and net proceeds of USD 188.9 million after deducting underwriting discounts and commissions as well as fees and expenses payable by the Company. The public offering resulted in a gross increase of USD 203.5 million in the Company's share premium account prior to transaction costs associated with the public offering share issuance of USD 2.9 million and underwriting discounts and commissions of USD 12.2 million, both of which were charged directly against the Company's share premium account. Further details are contained in note 28, "Share capital."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(vii)</u> <u>Open Market Sales Agreement</u>*

On June 4, 2021, the Company entered into an open market sale agreement with Jefferies LLC ("Jefferies"), to sell its common shares from time to time through an "at the market" offering program (the "ATM Facility"). The ATM Facility provides the Company the opportunity to sell its common shares with an aggregate offering price of up to USD 200.0 million. For the year ended December 31, 2022, there have been no shares sold under the ATM Facility. The Company capitalizes transaction costs within Other current assets in the Company's consolidated balance sheet when costs are incurred associated with the ATM Facility at inception. If and when the Company sells shares under the ATM, capitalized transaction costs will be offset against the sale proceeds and will be recorded as a reduction of share premium within the Company's consolidated balance sheet. If the Company determines that it is not probable that shares will be sold under the ATM Facility by the end of a quarter, the Company will write-off capitalized transaction costs incurred during that respective quarter in the consolidated statement of operations. The Company has KUSD 31 of capitalized transaction costs within Other current assets in connection with the establishment of the ATM Facility as of December 31, 2022, which will be offset against the sales proceeds from the initial sale of shares under the ATM Facility, if and when such sale is to occur.

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<u>[**Table of Contents**](#i42f66f9a31784fbdb78f7a61e7467d0f_7)</u><br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(viii) Senior secured term loan facility and warrants, convertible loan exchange and share purchase*

On August 15, 2022, the Company, ADCT UK and ADCT America entered into a loan agreement and guaranty (the "Loan Agreement") with certain affiliates and/or funds managed by each of Oaktree Capital Management, L.P. and Owl Rock Capital Advisors LLC, as lenders, and Owl Rock Opportunistic Master Fund I, L.P., as administrative agent and collateral agent, pursuant to which the Company may borrow up to USD 175.0 million principal amount of secured term loans, including (i) an initial tranche of USD 120.0 million principal amount of term loans (the "First Tranche") and (ii) up to two additional tranches ("Future Tranches"), each up to USD 27.5 million principal amount of term loans that the Company may draw upon before February 15, 2024, subject to satisfaction of certain customary conditions including compliance with the Company's other material agreements for the incurrence of such debt. On August 15, 2022, the Company drew down USD 120.0 million principal amount of term loans under the Loan Agreement and issued to the lenders under the Loan Agreement warrants to purchase an aggregate of 527,295 common shares, which warrants have an exercise price of USD 8.30 per share. See note 23, "Senior secured term loan facility and warrants" for further information on this transaction.

On August 15, 2022, pursuant to an exchange agreement with Deerfield, Deerfield exchanged USD 115.0 million aggregate principal amount of the Company's senior secured convertible notes for warrants to purchase an aggregate of 4,412,840 common shares, an aggregate of 2,390,297 common shares and cash equal to USD 117.3 million. The warrants consist of warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share and warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 per share. As a result of the exchange agreement, the Company recognized a loss on extinguishment of USD 42.1 million, which primarily consists of the difference between the aggregate principal amount and carrying value of the convertible loans, exit fee, as well as the unpaid interest payments through the maturity date. See note 24, "Convertible loans," note 25, "Deerfield warrants" and note 28 "Share capital" for further information on this transaction.

On August 15, 2022, the Company entered into a share purchase agreement with the Purchasers, pursuant to which, on September 6, 2022, the Company issued and sold to the Purchasers an aggregate of 733,568 common shares at USD 8.52 per share for USD 6.1 million in net cash proceeds. See note 28, "Share capital" for further information on this transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(ix)</u> <u>Share Subscription Agreement</u>*

During the second quarter of 2021, ADCT issued 1,500,000 common shares to ADCT America pursuant to a share subscription agreement and immediately repurchased these shares to hold as treasury shares for purposes of administering the Company's long-term incentive program.

In addition, during the third quarter of 2022, the Company issued 3,123,865 common shares to ADCT America pursuant to a share subscription agreement and immediately repurchased these shares as treasury shares at par value. The Company subsequently issued 733,568 treasury shares to the Purchasers, in accordance with the share purchase agreement and 2,390,297 treasury shares to Deerfield in accordance with the exchange agreement entered into on August 15, 2022. During the fourth quarter of 2022, the Company issued 7,648,081 common shares to ADCT America pursuant to a subscription agreement and immediately repurchased these shares as treasury shares at par value to be used in connection with the ATM Facility. See note 28, "Share capital" for further information.

As of December 31, 2022, the Company held 8,399,419 treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*<u>(x)</u> <u>COVID – 19</u>*

The Group continues to monitor the COVID-19 pandemic and its impact to operations. During the height of the COVID-19 pandemic, the Group commercialized ZYNLONTA using hybrid launch plans. The Company continued to see an increase in face-to-face interactions with physicians in fiscal year 2022, which it believes is a key pillar of its continued success in driving the adoption of ZYNLONTA through ongoing dialogs with the healthcare provider community on ZYNLONTA's differentiated product profile. At this time, Group employees are meeting with investigators and site staff in person as allowed by institutions. The Group continues to closely monitor the potential effects of the COVID-19 pandemic and has undertaken certain risk mitigation measures. The Group has concluded that there is no material uncertainty that may cast a significant doubt upon the Group's ability to continue as a going concern.

**3. Significant accounting policies**

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

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**3.1.Consolidation**

The annual closing date of the individual financial statements is December 31. Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases. All intercompany transactions have been eliminated.

**3.2.Foreign currency translation**

*<u>Functional and presentation currency</u>*

Items included in the financial statements of each of the Group entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in US dollars ("USD" or "Dollars"), which is the Company's functional and Group's presentation currency.

*<u>Transactions and balances</u>*

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in consolidated statement of operation.

All foreign exchange gains and losses are presented in the consolidated statement of operation within "Exchange differences".

*<u>Group companies</u>*

The results and financial position of all the Group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)income and expenses for each consolidated statement of operation are translated at monthly average exchange rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)all resulting exchange differences are recognized in other comprehensive loss, under "Cumulative translation adjustments".

**3.3.Cash and cash equivalents**

Cash and cash equivalents includes cash on hand, deposits held at call with external financial institutions and other short-term highly liquid investments with original maturities to the Company of three months or less. They are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Any bank overdrafts are not netted against cash and cash equivalents but are shown as part of current liabilities on the consolidated balance sheet.

**3.4.Accounts receivable**

Accounts receivable arise from license agreements and product sales and consists of amounts due from customers, net of customer allowances for chargebacks, product returns and estimated credit losses. Upon the launch of ZYNLONTA, the Company's contracts with customers had initial payment terms that ranged from 30 to 150 days. As the Company's inventory is no longer held on consignment by the Company's third-party logistics and distribution provider and as a result of receiving a permanent J-code for ZYNLONTA, the Company's payment terms currently range from 30 to 90 days. As of December 31, 2022, Accounts receivable included the USD 50 million in license revenue for the approval of the Marketing Authorisation Application by the European Commission for ZYNLONTA in third-line DLBCL. When determining customer allowances for estimated credit losses, the Company analyzes accounts that are past due, the creditworthiness of its customers, current economic conditions and, when sufficient historical data becomes available, actual credit losses incurred by the Company. As of December 31, 2022, the Company did not record an allowance for expected credit losses as it was considered immaterial.

**3.5.Inventory**

Prior to receiving FDA approval of ZYNLONTA, the Company had written down inventory costs relating to the manufacture of ZYNLONTA to a net realizable value of zero. The Company believed that capitalization of inventory costs associated with certain products prior to regulatory approval of such products, or for inventory produced in new production facilities, was only appropriate when management considered it highly probable that pre-approval inventory costs would be recoverable through future sales of the drug product. The determination to capitalize was based on the particular facts and circumstances related to the expected regulatory approval of the product or production facility being considered and, accordingly, the time frame within which the determination was made varied from

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product to product. The impairment charges were recorded as Research and development ("R&D") expenses in the Company's consolidated statement of operation. Upon the receipt of FDA approval for ZYNLONTA during the year ended December 31, 2021, the Company reversed KUSD 8,100 of previously recorded impairment charges. The reversal of previously recorded impairment charges was based on a number of factors existing at that time, including the existence of inventory on hand and estimated demand, as well as expiration dating. The reversal of impairment charges was recorded as a gain to R&D expenses in the Company's consolidated statement of operation. For the year ended December 31, 2022, the Company designated certain capitalized pre-approval ZYNLONTA inventory for R&D use and recorded a charge to R&D expenses, which was partially offset by a reversal of previously recorded impairment charges. The Company recorded an expense to R&D in the Company's consolidated statement of operation for the year ended December 31, 2022 of KUSD 75.

Inventory of ZYNLONTA is stated at the lower of cost or net realizable value with costs determined on a first-in, first-out basis. The Company assesses the recoverability of capitalized inventory during each reporting period and will write down excess or obsolete inventory to its net realizable value in the period in which the impairment is identified within Cost of product sales in the consolidated statement of operation. See note 9, "Operating expenses" for further information. Included in inventory of ZYNLONTA are materials used in the production of preclinical and clinical products, which are charged to R&D expenses when consumed.

The Company will continue to assess the likelihood that inventory costs associated with its other drug product candidates are recoverable through future sales of such product candidates to determine if and when such costs should be capitalized as inventory or be expensed to R&D expenses. The assessment of whether or not the product is considered highly probable to be saleable will be made on a quarterly basis and includes, but is not limited to, how far a particular product or facility has progressed along the approval process, any known safety or efficacy concerns, potential labeling restrictions and other impediments. If it is determined that inventory costs associated with a product candidate are not highly probable to be recovered through future sales, the Company would record such costs to R&D expenses.

See note 14, "Inventory" for further information.

**3.6.Property, plant and equipment**

All property, plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated using the straight-line method to reduce the cost of each asset to its residual value over its estimated useful life, as follows:

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| | |
|:---|:---|
| Leasehold improvements | 3 to 10 years |
| Laboratory equipment | 5 years |
| Office equipment | 5 years |
| Hardware | 3 years |

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See note 15, "Property, plant and equipment" for further information.

**3.7.Intangible assets**

*<u>Licenses</u>*

Licenses acquired are capitalized as intangible assets at historical cost. Licenses with definite-useful lives are amortized over their useful lives, which are determined on a basis of the expected pattern of consumption of the expected future economic benefits embodied in the licenses and which therefore commence only once the necessary regulatory and marketing approval has been received. Prior to regulatory and marketing approval, licenses are treated as indefinite-lived assets and not amortized. These licenses are tested annually for impairment in the last quarter of each fiscal year and more frequently if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Prior to regulatory and marketing approval, impairment of indefinite-lived licenses is charged to R&D expenses. Subsequent to regulatory and marketing approval, amortization of licenses will be charged to Cost of product sales over the licenses' estimated useful lives. The useful life of definite-lived intangible assets will depend upon the legal term of the individual patent in the country in which the patent is obtained. In determining the useful life, the Company utilizes the last-to-expire period of exclusivity (primary patent or regulatory approval) related to the primary marketed drug product. The Company may be able to obtain a patent term extension. However, the Company will only consider the inclusion of an extension period to the extent the Company believes it is highly probable of being granted. See note 17, "Intangible assets" for further information.

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*<u>Internally generated intangible assets</u>*

Internal R&D costs are fully charged to R&D expenses in the period in which they are incurred. The Group considers that regulatory and other uncertainties inherent in the development of new products preclude the capitalization of internal development expenses as an intangible asset until marketing approval from a regulatory authority is obtained in a major market such as the United States, the European Union or China.

Payments made to third parties, such as contract R&D organizations in compensation for subcontracted R&D, that are deemed not to transfer intellectual property to ADCT are expensed as internal R&D expenses in the period in which they are incurred. Such payments are only capitalized if they meet the criteria for recognition of an internally generated intangible asset, usually when marketing approval has been achieved from a regulatory authority in a major market. These internally generated intangible assets are recorded as an indefinite-lived intangible asset until regulatory approval is achieved and/or commercial launch. At that point, the asset will become a definite-lived intangible asset and the Company will commence amortization of the asset based on a systematic and rational approach. See note 17, "Intangible assets" for further information.

**3.8.Investments in joint ventures**

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. An investment in a joint venture is accounted for using the equity method from the date on which the investee becomes a joint venture. Under the equity method, an investment in a joint venture is recognized initially in the consolidated balance sheet at cost and adjusted thereafter to recognize the Company's share of the profit or loss, other comprehensive income or loss of the joint venture, distributions from the joint venture and other adjustments to the Company's proportionate interest in the joint venture. The Company's initial investment is recorded as an Interest in joint venture in the consolidated balance sheet. The Company's proportionate share of net income or losses of equity investments is included within Share of results with joint venture in the consolidated statement of operation. The Company's carrying value of its investment in a joint venture increases or decreases in relation to the Company's proportionate share of comprehensive income or loss of the joint venture. When the Company's share of losses of a joint venture exceeds the Company's interest in that joint venture less the carrying value of the deferred gain described below, the Company ceases to recognize its share of further losses. Additional losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the joint venture. In connection with the Company's initial investment, the gain resulting from the transaction was only recognized to the extent of the unrelated investors' equity interest in the joint venture, which resulted in a deferred gain for a portion of the Company's initial investment. The Company will begin to recognize the deferred gain upon the commercialization of any or all the licensed intellectual property by the joint venture. The deferred gain will be recognized over the estimated commercialization period in which a licensed product is developed and approved using a systematic approach that approximates the pattern of consumption of the licensed intellectual property by the joint venture. Investments accounted for under the equity method are assessed for potential impairment on a regular basis based on qualitative factors. See note 18, "Interest in joint venture" for further information.

**3.9.Impairment of non-financial assets**

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows, adjusted for the risks specific to each asset, are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the general risks affecting the pharmaceutical industry. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash flows of other assets ("cash-generating units"). Impairment losses are recognized in the consolidated statement of operation. Prior impairments of non-financial assets are reviewed for possible reversal of the impairment at each reporting date.

**3.10.Employee benefits**

*<u>Employee Benefit Programs</u>*

Group companies operate defined benefit and defined contribution pension schemes in accordance with the local conditions and practices in the countries in which they operate. The defined benefit schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity (a fund) and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and

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compensation. However, as is the case with many Swiss pension plans, although the amount of ultimate pension benefit is not defined, certain legal obligations of the plan nevertheless create constructive obligations on the employer to pay further contributions to fund an eventual deficit. This results in the plan being accounted for as a defined benefit plan.

The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity that approximate the terms of the related pension obligation.

The current service cost of the defined benefit plan, recognized in the consolidated statement of operation in employee benefit expenses, except where included in the cost of an asset, reflects the increase in the defined benefit obligation resulting from employee service in the current year.

Past service costs, resulting from a plan amendment or curtailment, are recognized immediately in the consolidated statement of operation.

The net interest cost is calculated by applying the discount rate to the net balance of the present value of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expenses in the consolidated statement of operation.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity within the consolidated statement of other comprehensive loss in the period in which they arise.

For defined contribution plans, the company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Once the contributions have been paid, the company has no further payment obligations. The contributions are recognized as employee benefit expenses in the consolidated statement of operation. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

See note 22, "Pension obligations" for further information.

*<u>Share-based compensation expense</u>*

The fair value of shares or options granted, respectively, under share purchase or share option plans is recognized as an employee share-based compensation expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the shares or options granted:

–including any market and other performance conditions;

–excluding the impact of any service and non-market performance vesting conditions; and

–including the impact of any non-vesting conditions.

The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimate of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimate, if any, within the consolidated statement of operation, with a corresponding adjustment to equity.

The proceeds received upon the exercise of options are net of any directly attributable transaction costs and are credited directly to equity.

See note 26, "Share-based compensation expense" for further information.

*<u>Employee Benefits - 2022 Employee Stock Purchase Plan</u>*

In June 2022, the Company adopted the 2022 Employee Stock Purchase Plan ("2022 ESPP"), which was approved by shareholders at the Company's 2022 Annual General Meeting. The Company will account for the 2022 ESPP similar to the Company's other share plans. The 2022 ESPP allows eligible employees to purchase designated shares of the Company's common shares at a discount, over a series of offering periods through accumulated payroll deductions. The Company will offer the ESPP to employees twice a year with each having a six-month offering period. The first offering period will generally be from January 1st through June 30th and the second offering period will be from July 1st through December 31st. The grant date is the first day of each offering period.

The fair value of purchase rights granted under the 2022 ESPP is recognized as an employee share-based compensation expense with a corresponding increase in other reserves. The total amount to be expensed is determined by reference to the fair value of the purchase rights granted.

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The total expense is recognized over the offering period, which is the period over which all of the specified vesting conditions are to be satisfied. Participants that voluntarily withdrawal from the plan are accounted for as a cancellation and total share-based compensation recorded in the period in which the participant withdrawals. Terminations are accounted for as forfeitures and any share-based compensation expense reversed in the period the participant terminates. Accumulated payroll deductions are recorded within Accrued expenses in other current liabilities until the shares are purchased by the participant at the end of the offering period.

See note 26, "Share-based compensation" for further information.

**3.11.Share capital and share premium**

*<u>Share capital</u>*

The Company has issued one class of common shares, which is classified as equity (see note 28, "Share capital").

*<u>Share premium</u>*

Amounts of contribution in excess of par value are accounted for as share premium. Share premium also arises from additional capital contributions from shareholders. Incremental costs directly attributable to equity transactions such as the issue of new capital shares are shown in equity as a deduction, net of tax, from the proceeds within share premium. Transaction costs that relate to equity and non-equity transactions are allocated to those transactions using a basis of allocation that is rational and a consistent methodology with previous transactions.

**3.12.Treasury shares**

Treasury shares are recognized at acquisition cost and deducted from shareholders' equity at the time of acquisition, until they are cancelled. Where such shares are subsequently sold, any consideration received is included in shareholders' equity.

**3.13.Leases**

This policy concerns instances where a Group company is the lessee.

Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and the finance cost. The finance cost is charged to the consolidated statement of operation over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

Right-of-use assets are measured at cost comprising the following:

–the amount of the initial measurement of lease liability;

–any lease payments made at or before the commencement date less any lease incentives received;

–any initial direct costs; and

–restoration costs.

The lease term is considered to be the non-cancellable period of a lease, together with both:

–periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and

–periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option.

Assumptions as to whether the Company is reasonably likely to exercise any extension or termination options have been individually assessed based on the Company's plans.

The policy of recognizing right-of-use assets and lease liabilities is not applied to short-term (under 12 months) or low value leases.

------

For deferred tax purposes, the Group considers the net effect of temporary differences arising from the right-of-use asset and the lease liabilities.

See note 16, "Leases" for further information.

**3.14.Deferred royalty obligation**

On August 25, 2021, the Company entered into a royalty purchase agreement with certain entities managed by HealthCare Royalty Management, LLC (HCR). The Company evaluated the terms of the royalty purchase agreement and concluded that the features of the investment amount are similar to those of a debt instrument. Accordingly, the Company accounted for the initial cash received as debt, less transaction costs, and will subsequently account for the value of the debt at amortized cost. The amounts received by the Company will be accreted to the total estimated amount of the royalty payments necessary to extinguish the Company's obligation under the agreement, which will be recorded as interest expense. The carrying value of the debt will decrease for royalty payments made to HCR based on actual net sales and licensing revenue. The Company must periodically assess the expected payments to HCR based on its underlying revenue projections and to the extent the amount or timing of such payments is materially different than its initial estimates will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in earnings as an adjustment to Financial income (expense) in the period in which the change in estimate occurred. See note 27, "Deferred royalty obligation" for further information.

**3.15.Convertible loans**

The Company entered into a USD 115.0 million Facility Agreement (the "Facility Agreement") on April 24, 2020, pursuant to which Deerfield agreed to extend senior secured convertible term loans to the Company in two separate disbursements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an initial disbursement of convertible loans in the amount of USD 65.0 million upon the completion of the IPO, and satisfaction of certain other conditions (the "first tranche") and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a subsequent disbursement of convertible loans in the amount of USD 50.0 million upon the receipt of regulatory approval for ZYNLONTA, and satisfaction of certain other conditions (the "second tranche").

On August 15, 2022, pursuant to an exchange agreement with Deerfield, Deerfield exchanged USD 115.0 million aggregate principal amount of the Company's senior secured convertible loans for warrants to purchase an aggregate of 4,412,840 common shares, an aggregate of 2,390,297 common shares and cash equal to USD 117.3 million.

*Accounting for the first and second tranches*

On May 19, 2020, the Company received the first tranche of convertible loans in the amount of USD 65.0 million upon completion of the IPO. Prior to the exchange, these convertible loans were recognized as a hybrid financial instrument and accounted for as two separate components: (i) a loan and (ii) an embedded conversion option derivative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The embedded conversion option derivative was initially measured at fair value and was subsequently remeasured to fair value at each reporting date up until the exchange occurred. Under IAS 32, this derivative could have been classified as a component of equity only if in all cases the contract would be settled by the Company delivering a fixed number of its own equity instruments in exchange for a fixed amount of cash or debt redemption. However, the agreement foresees, in the event of a major transaction, the payment of "make-whole" amounts that would have to be computed in the light of the circumstances and are therefore not fixed. As a result, the derivative was presented in the balance sheet as a liability and classified as non-equity in accordance with IFRS 9 and IAS 32. Prior to the exchange, changes in the fair value (gains or losses) of the derivative at the end of each period were recorded in the consolidated statement of operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The convertible loan's initial fair value was the residual amount of the consideration received, net of attributable costs, after separating out the fair value of the embedded conversion option derivative. The loan was subsequently measured at its amortized cost in accordance with IFRS 9. Prior to the exchange, it was presented as a financial liability in the consolidated balance sheet.

On May 17, 2021, the Company drew down the second tranche of convertible loans in the amount of USD 50.0 million upon the receipt of FDA approval of ZYNLONTA. Prior to the exchange, these convertible loans were recognized as a hybrid financial instrument and accounted for as two separate components: (i) a loan and (ii) an embedded conversion option derivative. The Company accounted for the two separate components similar to the first tranche of convertible loans. Prior to the drawdown of the second tranche, the Company accounted for the second tranche as a derivative.

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Expenses and fees payable upon the issuance of the first and second tranches of convertible loans were allocated pro rata to the above two components. The share of expenses allocated to the embedded conversion option derivative was charged directly to the consolidated statement of operation, while the share of expenses allocated to the residual convertible loan was deducted from the loan.

See note 24, "Convertible loans" for further information.

**3.16.Senior secured term loan facility**

The Company, ADCT UK and ADCT America entered into a USD 175.0 million Loan Agreement on August 15, 2022, pursuant to which the counterparty agreed to extend secured term loans to the Company in disbursements as follows: (i) a First Tranche and (ii) Future Tranches. See note 23, "Senior secured term loan facility and warrants."

*Accounting for the First Tranche* 

On August 15, 2022, the Company drew down the First Tranche of the senior secured term loans in the amount of USD 120.0 million and issued to the lenders under the Loan Agreement warrants to purchase an aggregate of 527,295 common shares, which warrants have an exercise price of USD 8.30 per share. These senior secured term loans have been recognized as a hybrid financial instrument and accounted for as two separate components: (i) a warrant obligation and (ii) a loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The warrant obligation is presented in the consolidated balance sheet as a liability given the warrants may be settled through a cash or cashless exercise by the warrant holder. The liability was initially measured at fair value using a Black-Scholes pricing model and is subsequently remeasured to fair value at each reporting date. Changes in the fair value (gains or losses) of the warrant obligation at the end of each period are recorded in the consolidated statement of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The senior secured term loan's initial fair value is the residual amount of the consideration received, net of attributable costs, after separating out the fair value of the warrant obligation. The loan is subsequently measured at its amortized cost using an effective interest rate ("EIR") in accordance with IFRS 9. Given the interest rate in the senior secured term loans is variable and dependent upon market factors, the Company will update the EIR at the end of each reporting period for changes in the rate. The revised EIR will be used prospectively with no income or expense recorded in the period of interest rate change. The loan is presented as a financial liability in the consolidated balance sheet. The net present value of those cash outflows occurring within 12 months of the balance sheet date discounted at the same rate is presented as a short-term liability in the consolidated balance sheet. The remainder of the amount is presented as a long-term liability.

Expenses and fees payable upon the issuance of the First Tranche of senior secured term loans were allocated pro rata to the above two components. The share of expenses allocated to the warrant obligation were charged directly to the consolidated statement of operations, while the share of expenses allocated to the residual senior secured term loans was deducted from the loan and included in the calculation of the EIR.

*Accounting for the Future Tranches* 

The Company has no obligation to draw down the Future Tranches of the senior secured term loans. Therefore, the Company will account for the Future Tranches when drawn upon as a liability and subsequently measure the liability at amortized cost in accordance with IFRS 9. Transaction costs associated with the Future Tranches will be deducted from the loan.

See note 23, "Senior secured term loan facility and warrants" for further information.

**3.17. Deerfield warrants**

Pursuant to the exchange agreement with Deerfield entered into on August 15, 2022, the Company issued warrants to purchase an aggregate of 4,412,840 common shares. The agreement consists of warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share and warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 per share.

These warrants have been recognized as a warrant obligation and presented in the consolidated balance sheet as a liability given the warrants may be settled through a cash or cashless exercise by the warrant holder. The liability was initially measured at fair value and was determined to approximate the fair value of the existing embedded conversion option features immediately prior to the consummation of the Exchange Agreement. The liability is subsequently remeasured to fair value at each reporting date. Changes in the fair value (gains or losses) of the warrant obligation at the end of each period are recorded in the consolidated statement of operations.

------

See note 25, "Deerfield warrants."

**3.18. Revenue recognition**

Revenue from the sale of products is recognized in a manner that depicts the transfer of those promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. To achieve this core principle, the Company follows a five-step model: (i) identify the customer contract; (ii) identify the contract's performance obligation; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; and (v) recognize revenue when, or as, a performance obligation is satisfied.

*<u>Product revenue</u>*

The Company generates revenue from sales of ZYNLONTA in the U.S. for the treatment of relapsed or refractory DLBCL, which was approved by the FDA on April 23, 2021 and launched shortly thereafter.

Revenue is recognized when control is transferred to the customer at the net selling price, which includes reductions for gross-to-net ("GTN") sales adjustments such as government rebates, chargebacks, distributor service fees, other rebates and administrative fees, sales returns and allowances and sales discounts.

GTN sales adjustments involve significant estimates and judgment after considering factors including legal interpretations of applicable laws and regulations, historical experience and drug product analogs in the absence of Company experience, payer channel mix, current contract prices under applicable programs, unbilled claims and processing time lags and inventory levels in the distribution channel. The Company also uses information from external sources to identify prescription trends, patient demand, average selling prices, discarded volumes and sales return and allowance data for the Company and analog drug products. The Company's estimates are subject to inherent limitations of estimates that rely on third-party information, as certain third-party information was itself in the form of estimates, and reflect other limitations including lags between the date as of which third-party information is generated and the date on which the Company receives third-party information. Estimates will be assessed each period and adjusted as required to revise information or actual experience.

*<u>License arrangements</u>*

The Company recognizes revenues from license fees for intellectual property (IP) either at a point in time or over time. The Company must make an assessment as to whether such a license represents a right-to-use the IP (at a point in time) or a right to access the IP (over time). The Company recognizes revenue for a right-to-use license immediately if the licensee can begin to use and benefit from the IP upon commencement of the license term and the Company has no further obligations in the context of the IP. A license is considered a right to access the IP when the Company undertakes activities during the license term that may significantly affect the IP, which directly exposes the customer to any positive or negative effects arising from such activities. These activities do not result in the immediate transfer of a good or service to the customer. As such, revenues from the right to access the IP are recognized over time.

The Company may enter into agreements with multiple performance obligations. Performance obligations are identified and separated when the other party can benefit from the license on its own or together with other resources that are readily available, and the license is separately identifiable from other goods or services in the contract.

Transaction prices for out-license arrangements may include fixed up-front amounts as well as variable consideration such as contingent development and regulatory milestones, sales-based milestones and royalties. The most likely amount method is used to estimate contingent development and regulatory milestones because the ultimate outcomes are binary in nature. Variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. To the extent arrangements include multiple performance obligations that are separable, the transaction price assigned to each distinct performance obligation is reflective of the relative stand-alone selling price when sold separately or estimated stand-alone selling price on the basis of comparable transactions with other customers when such goods or services are not sold separately. The residual approach is the method used to estimate a stand-alone selling price when the selling price for a good or service is highly variable or uncertain.

In determining the transaction prices, sales milestones and royalties attributable to licenses are excluded from the variable consideration guidance and recognized at the later of when the subsequent sales transaction occurs, or the satisfaction or partial satisfaction of the performance obligation to which some or all of the royalty has been allocated.

------

**3.19.Cost of product sales**

Cost of product sales primarily includes direct and indirect costs relating to the manufacture of ZYNLONTA from third-party providers of manufacturing, distribution and logistics, intangible asset amortization expense, and royalties to a collaboration partner based on net product sales of ZYNLONTA. Inventory amounts written down as a result of excess or obsolescence are charged to Cost of product sales.

**3.20.R&D expenses**

Research expenditure is recognized in expense in the year in which it is incurred. Internal development expenses are capitalized only if it meets the recognition criteria of IAS 38 "Intangible Assets". Where regulatory and other uncertainties are such that the criteria are not met, which is almost invariably the case prior to approval of the drug by the relevant regulatory authority, the expenditure is recognized in the consolidated statement of operation. When certain criteria are met, the Company capitalizes the internal development expenses as internally generated intangible assets and amortizes the asset over its estimated useful life based on a systematic and rational approach.

**3.21.Selling and marketing ("S&M") expenses**

S&M expense is expensed when incurred and include employee expenses (including share-based compensation expense) for commercial employees, external costs related to commercialization (including professional fees, communication costs and IT costs, travel expenses and depreciation of property, plant and equipment). To date, facility expense and depreciation of right-of-use assets have not been material.

**3.22.General and administrative ("G&A") expenses**

G&A expense is expensed when incurred and include employee expenses (including share-based compensation expense) for G&A employees, external costs (including in particular professional fees, communications costs and IT costs, facility expenses and travel expenses), G&A costs charged by related parties (including telecommunications costs), depreciation of property, plant and equipment, depreciation of right-of-use assets and amortization of intangible assets.

**3.23.Current, deferred income tax and tax credit**

The tax expense for the period comprises current and deferred tax. Tax is recognized in the consolidated statement of operation, except to the extent that it relates to items recognized in other comprehensive loss or directly in equity; in this case the related tax is recognized in other comprehensive loss or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Taxes on income are accrued in the same periods as the revenues and expenses to which they relate. Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences or the unused tax losses can be utilized.

Deferred income tax assets from tax credit carryforwards are recognized to the extent that the national tax authority confirms the eligibility of such a claim and that the realization of the related tax benefit through future taxable profits is probable.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

See note 11, "Income tax expense" and note 20, "Deferred income taxes and tax credits" for additional information.

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**3.24. Segment reporting**

The Company is managed and operated as one business. A single management team that reports to the chief executive officer comprehensively manages the entire business. Accordingly, the Company views its business and manages its operations as one operating segment.

**3.25. Loss per share**

Basic loss per share is calculated by dividing the net loss attributable to shareholders by the weighted average number of common shares in issue during the year, excluding common shares owned by the Company and held as treasury shares. See note 32, "Loss per share."

Diluted loss per share adjusts the shares used in the determination of basic loss per share to take into account the after-tax effect of interest and other financing costs associated with potentially dilutive common shares, if applicable, and the weighted average number of ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares (share option plans, 2022 ESPP, outstanding warrants and convertible loans). See note 26, "Share-based compensation expense", note 23, "Senior secured term loan facility and warrants", note 24, "Convertible loans" and note 25, "Deerfield warrants", respectively, for additional information.

**4. New and amended IFRS standards**

There are no new IFRS standards, amendments to standards or interpretations that are mandatory for the financial year beginning on January 1, 2022, that are relevant to the Group. New standards, amendments to standards and interpretations that are not yet effective, which have been deemed by the Group as currently not relevant, and hence are not listed here.

**5. Financial risk management**

**5.1Financial risk factors**

The Group's activities are exposed to a variety of financial risks: market risk (including changes in the Company's share price, exposure to fluctuation in currency exchange rates and exposure to interest rate movements), credit risk and liquidity risk.

Management and the Board of Directors regularly reviews the Group cash forecast and related foreign exchange risk. It also performs the risk assessment, defines any necessary measures and ensures the monitoring of the internal control system. The Group does not use derivative financial instruments to hedge these exposures.

*<u>Foreign exchange risk</u>*

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to British pounds, Euros and Swiss francs. Transaction exposure arises because the amount of local currency paid or received in transactions denominated in foreign currencies may vary due to changes in exchange rates. Foreign exchange risk arises from:

–forecast costs denominated in a currency other than the entity's functional currency;

–recognized assets and liabilities denominated in a currency other than the entity's functional currency; and

–net investments in foreign operations.

Management believes that foreign exchange risk is minimal, as the Company pays invoices mainly in USD and holds cash principally in USD.

The Group's cash and cash equivalents are denominated in the following currencies:

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| | | | | |
|:---|:---|:---|:---|:---|
|<br>**December 31** | **2022**<br>**in KL/C**<sup>(1)</sup> | **2022**<br>**in KUSD** | **2021**<br>**in KL/C**<sup>(1)</sup> | **2021**<br>**in KUSD** |
| In USD | 319568 | 319568 | 462306 | 462306 |
| In CHF | 116 | 125 | 580 | 635 |
| In GBP | 4111 | 4974 | 2162 | 2921 |
| In EUR | 1658 | 1774 | 601 | 682 |
|  |  | **326441** |  | **466544** |

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_______________

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Thousands Local Currencies

The Group has certain investments in foreign operations whose net assets are exposed to foreign currency translation risk. Currency exposure arising from these net assets of the Group's foreign operations is managed primarily through purchasing goods and services denominated in the relevant foreign currencies.

At December 31, 2022, if the USD had weakened / strengthened by 10% against the CHF with all other variables held constant, the pre-tax loss for the year would have been KUSD 742 higher / lower, mainly as a result of foreign exchange losses / gains on translation of CHF-denominated net monetary liabilities (2021: KUSD 1,034 higher / lower on net monetary assets).

At December 31, 2022, if the USD had weakened / strengthened by 10% against the EUR with all other variables held constant, the pre-tax loss for the year would have been KUSD 98 higher / lower, mainly as a result of foreign exchange losses / gains on translation of EUR-denominated net monetary liabilities (2021: KUSD 191 higher / lower on net monetary assets).

At December 31, 2022, if the USD had weakened / strengthened by 10% against the GBP with all other variables held constant, the pre-tax loss for the year would have been KUSD 487 higher / lower, mainly as a result of foreign exchange losses / gains on translation of GBP-denominated net monetary liabilities (2021: KUSD 424 higher / lower), and the gain on currency translation differences credited directly to equity and arising on the translation of the net assets of ADCT UK would have been KUSD 633 higher / lower (2021: KUSD 544 higher / lower on net monetary assets).

*<u>Interest rate risk</u>*

Interest rate risk arises from movements in interest rates which could have adverse effects on the Group's net income or financial position. Changes in interest rates cause variations in interest income and expenses on interest-bearing assets and liabilities, and on the value of the net defined benefit pension obligation. In relation to the royalty purchase agreement with HCR, the Company is obligated to pay interest in the form of royalties in connection with certain net sales and licensing revenue. As the EIR on the deferred royalty obligation does not depend on market performance, the exposure to interest rate and market risk is deemed low. See note 27, "Deferred royalty obligations" for further information. In regards to the senior secured term loans, the interest rate is variable and dependent upon market factors. The Company will update the EIR at the end of each reporting period for changes in the rate. See note 23, "Senior secured term loan facility and warrants" for further information. A hypothetical 100 basis point increase (decrease) in the interest rate as of December 31, 2022 would have increased (decreased) the effective interest expense associated with the Company's senior secured term loan facility by KUSD 272 and (KUSD 273), respectively.

*<u>Credit risk</u>*

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities and from its financing activities including deposits with banks and other financial institutions (see note 19b, "Credit quality of financial assets"). The Group's cash and cash equivalents accounts are maintained with well established, highly rated financial institutions. The Company's wholly-owned subsidiaries are solvent, are managed on a cost-plus service provider basis, and are supported by the Company as the parent.

To date, the Company's only source of product revenue, which commenced during May 2021, has been sales of ZYNLONTA only in the U.S., which is sold primarily through wholesale distributors. In addition, the Company began earning license revenues in 2022 through its license agreements with third parties. See note 7 "Revenue recognition" for further information. We continuously monitor the creditworthiness of our customers and have internal policies regarding customer credit limits. When determining customer allowances for estimated credit losses, the Company analyzes accounts that are past due, the creditworthiness of its customers, current economic conditions and, when sufficient historical data becomes available, actual credit losses incurred by the Company. As of December 31, 2022, the Company did not record an allowance for expected credit losses as it was considered immaterial.

*<u>Liquidity risk</u>*

Liquidity risk is the risk that the Group may not be able to generate sufficient cash resources to settle its obligations in full as they fall due or can do so only on terms that are materially disadvantageous. Prudent liquidity risk management implies maintaining sufficient cash to cover working capital requirements. Cash is monitored by the Group management.

Funding and liquidity risks are reviewed regularly by management and the Board of Directors. The Board of Directors reviews the Group's ongoing liquidity risks quarterly as part of the financial review process and on an ad hoc basis as necessary. To date, the Company has funded its capital requirements through capital raises, including the issuance of the Company's common shares, the issuance of convertible loans (see note 24, "Convertible loans"), the issuance of term loans (see note 23, "Senior secured term loan facility and warrants"), partnering of its programs and royalty financings (see note 7, "Revenue recognition" and note 27, "Deferred royalty obligation").

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The table below analyzes the Group's financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in KUSD)** | **Note** | **Less than <br>1 year** | **1-3 <br>years** | **3-5 <br>years** | **More than <br>5 years** |
| Trade accounts payable |  | 12351 |  |  |  |
| Lease liabilities, contractual rent |  | 1284 | 2380 | 2323 | 2456 |
| Senior secured term loan, interest and exit fee <sup>(1)</sup> |  | 14840 | 29882 | 30440 | 27272 |
| Senior secured term loan, principal | 23 |  |  |  | 120000 |
| Deferred royalty obligation <sup>(2)</sup> | 27 | 4885 |  |  |  |
| At December 31, 2022 <sup>(2)</sup> |  | **33360** | **32262** | **32763** | **149728** |
| Trade accounts payable |  | 12080 |  |  |  |
| Lease liabilities, contractual rent |  | 1235 | 2122 | 1962 | 3706 |
| Convertible loan, interest and exit fee |  | 6938 | 13894 | 6672 |  |
| Convertible loan, principal | 24 | **—** |  | 115000 |  |
| Deferred royalty obligation <sup>(2)</sup> | 27 | 1191 |  |  |  |
| At December 31, 2021 <sup>(2)</sup> |  | **21444** | **16016** | **123634** | **3706** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> The interest on the senior secured term loans is variable and dependent upon market factors. The EIR will get updated at the end of each reporting period for changes in the rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> The Company received an initial USD 225.0 million of gross proceeds under the deferred royalty obligation. The table above includes the fixed amount to be paid to HCR next quarter. The remaining obligation has been excluded from the tabular disclosure as there is no contractual maturity date and payments are not yet fixed. The Company's aggregate royalty obligations are capped at a maximum of 2.50 times the amount received (see note 27, "Deferred royalty obligation").

**5.2Capital management**

The Group considers equity as equivalent to the IFRS equity on the balance sheet (including share capital, share premium and all other equity reserves attributable to the owners of the Company). Other than its lease liabilities, the Group's only interest-bearing debt relates to the issuance of senior secured term loans (see note 23, "Senior secured term loan facility and warrants"). While the royalty purchase agreement does not have an explicit interest rate, the Company is obligated to pay interest in the form of royalties in connection with certain net sales and licensing revenue (see note 27, "Deferred royalty obligation").

The primary objective of the Group's capital management is to maximize shareholder value. Management and the Board of Directors regularly reviews its shareholder return strategy. For the foreseeable future, management and the Board of Directors will maintain a capital structure that supports the Group's strategic objectives through managing funding and liquidity risks and optimizing shareholder return.

The Company is a commercial-stage biotechnology company with product candidates still at pre-clinical and clinical stages of development. It intends to continue to explore financing opportunities either through the equity or debt markets as well as through cooperation and collaboration with pharmaceutical and biotechnology partners – potentially along the value chain from research alliances through co-development to commercialization. As explained in note 2 (iii), "Going concern basis", management believes that the Company has sufficient financial resources available to meet all of its obligations for at least the twelve months from the issuance of these consolidated financial statements without additional capital becoming available.

**5.3Fair value estimation**

As of December 31, 2022, the carrying amount is a reasonable approximation of fair value for the following financial assets and liabilities:

–Cash and cash equivalents;

–Trade accounts receivable; and

–Trade accounts payable.

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As a result of increases in interest rates, the Company utilized a higher discount rate, 2.3%, in its most recent pension obligation actuarial valuation performed as of December 31, 2022. The use of a higher discount rate resulted in a decrease of USD 3.7 million to its Defined benefit pension liabilities with a corresponding offset to Other comprehensive loss which was recorded during 2022. The reduction in its Defined benefit pension liability was capped at the fair value of the Company's pension plan assets. The Company expects to perform its annual actuarial valuation in conjunction with its fiscal year ending December 31, 2023.

Fair values must be estimated at the end of each reporting period with regard to the senior secured term loan warrant obligation and the Deerfield warrants. The approach to valuation follows the grant date fair value principle, and the key input factors are described for the senior secured term loan facility warrant obligation in note 23, "Senior secured term loan facility and warrants" and for the Deerfield warrants in note 25, "Deerfield warrants". Commonly accepted pricing models (Black-Scholes) have been used to calculate the fair values. The valuation of the senior secured term loan facility warrant obligation and Deerfield warrants are classified as pertaining to Level 2 of the valuation hierarchy. The convertible loan derivatives previously were classified as pertaining to Level 3 of the valuation hierarchy and were extinguished on August 15, 2022. See note 24, "Convertible loans" for further information. The Company no longer has any inputs pertaining to level 3 of the valuation hierarchy set out below.

The different levels of the valuation hierarchy have been defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (for example, as prices) or indirectly (for example, derived from prices);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Level 3: inputs for the asset or liability that are not based on observable market data.

There were no transfers between the respective levels during the period.

**6. Critical accounting estimates and judgements**

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates, assumptions and judgements that have significantly affected reported results or that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

*<u>Revenue</u>*

Upon the April 23, 2021 FDA approval of ZYNLONTA for the treatment of relapsed or refractory DLBCL, the Company began generating revenue from the sale of its product candidates. In previous years, the Company had generated only service revenues from a license and collaboration arrangement. Significant judgements were required in implementing the Company's revenue recognition accounting policy as set out in note 3, "Significant accounting policies". In particular, significant judgement was required in determining the Company's GTN sales adjustments.

*<u>Reversal of previously recorded inventory impairment charges</u>*

Upon the receipt of FDA approval for ZYNLONTA during the year ended December 31, 2021, the Company reversed previously recorded impairment charges. The reversal of previously recorded impairment charges was based on a number of factors existing at that time that involved significant judgement including estimated demand for ZYNLONTA. See note 3, "Significant accounting policies".

*<u>Licenses</u>*

The Company enters into collaboration, license and sublicense agreements with third parties, which grant the Company the right to use their antibodies with the Company's licensed warhead and linker technology to develop new ADCs for anti-cancer treatments. The license fees (upfront fees, signature fees, milestone payments) paid by the Company under the agreements are capitalized as intangible assets. The Company considers that those licenses have an indefinite life until regulatory and marketing approval is obtained. Once obtained, the asset will be treated as a definite-lived intangible asset and amortization will commence. The license costs capitalized were KUSD 695 and KUSD 2,893 for the years 2022 and 2021, respectively. The intangible assets are tested annually for impairment and more frequently if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount (higher of an asset's fair value less costs of disposal and value in use). Impairment losses are recognized in the consolidated statement of operation. Testing for impairment inevitably involves the application of judgement. In 2022 and 2020, in relation to the termination of one of the Company's programs in each year, an impairment charge of KUSD 226 and KUSD 216 (corresponding to the entire carrying amount of the capitalized license) were recognized and charged to R&D expenses in the consolidated statement of operation. The Company performed its review for 2021 and concluded no impairment was required. See note 17, "Intangible assets".

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*<u>Deerfield warrants</u>*

On August 15, 2022, pursuant to an exchange agreement with Deerfield, Deerfield exchanged USD 115.0 million aggregate principal amount of the Company's senior secured convertible notes for warrants to purchase an aggregate of 4,412,840 common shares, an aggregate of 2,390,297 common shares and cash equal to USD 117.3 million.

These warrants have been recognized as a warrant obligation and presented in the consolidated balance sheet as a liability given the warrants may be settled through a cash or cashless exercise by the warrant holder. The liability was initially measured at fair value and was determined to approximate the fair value of the existing embedded conversion option features immediately prior to the consummation of the Exchange Agreement. The liability is subsequently remeasured to fair value at each reporting date. Changes in the fair value (gains or losses) of the warrant obligation at the end of each period are recorded in the consolidated statement of operations. See note 25, "Deerfield Warrants."

*<u>Senior secured term loan facility</u>*

On August 15, 2022, the Company, ADCT UK and ADCT America entered into the Loan Agreement pursuant to which the counterparty agreed to extend secured term loans to the Company in disbursements as follows: (i) a First Tranche and (ii) Future Tranches. The Company drew down the First Tranche on the same day. The first tranche has been recognized as a hybrid financial instrument and accounted for as two separate components: (i) a warrant obligation and (ii) a loan. In determining the value of the warrant obligation and loan associated with the First Tranche, the Company utilized significant estimates and judgements. In particular, significant judgement was required in selecting the appropriate model to value the warrant obligation arising from the First Tranche of the senior secured term loans and in identifying the appropriate key assumptions as inputs to the selected model. Details of the model and assumptions are set out in note 23, "Senior secured term loan facility and warrants."

*<u>Deferred royalty obligation</u>*

On August 25, 2021, the Company entered into a royalty purchase agreement with certain entities managed by HCR. The Company has accounted for the initial cash received as debt, less transaction costs and will subsequently account for the value of the debt at amortized cost. Significant judgements were used in the initial model and will continue to be used in subsequent models to estimate the total amount of future payments and the timing of such associated with the royalty purchase agreement with HCR. In particular, significant judgements were made by the Company based on revenue projections as well as the achievement of certain milestones associated with the royalty purchase agreement with HCR. Further information with respect to the model, judgements and assumptions are set out in note 27, "Deferred royalty obligation."

*<u>Deferred tax assets</u>*

Deferred income tax assets from tax loss carryforwards, R&D tax credits, and temporary differences between tax and financial statement income are initially recognized to the extent of suitable deferred income tax liabilities, then to the extent that the realization of the related tax benefit through future taxable profits is probable.

In determining taxable income for financial statement purposes, the Company makes certain estimates and judgments. These estimates and judgments affect the calculation of certain tax liabilities and the determination of the recoverability of certain of the deferred tax assets.

In evaluating the Company's ability to recover its deferred tax assets it considers all available positive and negative evidence including its past operating results, the existence of cumulative losses, as well as R&D tax credits, and its forecast of future taxable income. In estimating future taxable income, the Company develops assumptions including the amount of future net revenue and pre-tax operating income and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying business.

Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Company records the effect of a tax rate or law change on the Company's deferred tax assets and liabilities in the period the law change is enacted or substantively enacted. Future tax rate or law changes could have a material effect on the Company's financial condition, results of operations or cash flows. See note 11, "Income tax expense" and note 20, "Deferred income tax and tax credits" for further information.

*<u>Pension Obligations</u>*

The liability recognized in the balance sheet in respect of the Company's defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in

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which the benefits will be paid, and that have terms to maturity that approximate to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used.

The current service cost of the defined benefit plan, recognized in the consolidated statement of operation in employee benefit expense, except where included in the cost of an asset, reflects the increase in the defined benefit obligation resulting from employee service in the current year.

Past service costs, resulting from a plan amendment or curtailment, are recognized immediately in the consolidated statement of operation.

The net interest cost is calculated by applying the discount rate to the net balance of the present value of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expenses in the consolidated statement of operation.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive loss in the period in which they arise.

For defined contribution plans, we pay contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Once the contributions have been paid, we have no further payment obligations. The contributions are recognized as employee benefit expenses when they are due and are included in staff costs. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. See note 22, "Pension obligations" for further information.

*<u>Share-based compensation expense</u>*

The details of the ADC Therapeutics Incentive Plan 2014 (as amended and restated as of October 1, 2015, the "Incentive Plan 2014"), the Share Purchase Plan 2016, the 2019 Equity Incentive Plan and the 2022 ESPP are explained in note 26, "Share-based compensation expense".

Prior to the Company's IPO, the determination of the fair value of awards involved the application of an adjusted form of the Black-Scholes option pricing model that took into account the strike price, term of the award, impact of dilution (where material), share price at grant date and expected price volatility of the underlying share, expected dividend yield, risk free interest rate for the term of the award and correlations and volatilities of the shares of peer group companies. In addition, for awards granted on and subsequent to July 1, 2019 through the IPO date, the fair value of grants was based on a probability-weighted expected returns method that took into account both the value derived by using an adjusted form of the Black-Scholes option pricing model and a discounted estimate of the price that may have been achieved in a future transaction. This method entailed further significant judgement, both in estimating a transaction price and in estimating the probabilities of different outcomes. The adjusted form of the Black-Scholes option pricing model used to derive a value for the common share price at grant date derived the implied equity value for one type of equity security from a contemporaneous transaction involving another type of security and considered the timing, amount, liquidation preferences and dividend rights of issues of preference shares.

After the Company's IPO, the determination of the fair value of awards involves the application of the Black-Scholes option pricing model for the Company's option equity awards and purchase rights granted under the 2022 ESPP, which utilizes certain assumptions including expected volatility, expected life and risk-free interest rate. In addition, the exercise price per share option is set by the Company at the fair market value of the underlying common shares on the date of grant, as determined by the Company, which is generally the closing share price of the Company's common shares traded on the NYSE.

**7. Revenue recognition**

*<u>Product revenue, net</u>*

On April 23, 2021, the Company received FDA accelerated regulatory and marketing approval for ZYNLONTA and launched in the U.S. shortly thereafter. To date, the Company's sole source of product revenue, which commenced during May 2021, has been sales of ZYNLONTA and is only in the U.S. Product revenues, net were KUSD 74,908 and KUSD 33,917 in the years ended December 31, 2022 and December 31, 2021, respectively. The Company records its best estimate of GTN sales adjustments to which customers are likely to be entitled. See note 3, "Significant accounting policies" for further information.

The table below provides a rollforward of the Company's accruals related to the GTN sales adjustments for the year ended December 31, 2022 and December 31, 2021.

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| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **2022** | **2021** |
| Beginning balance | 2590 |  |
| GTN sales adjustments for current year sales | 15200 | 5493 |
| GTN sales adjustments for prior year sales | (549) |  |
| Credits, payments and reclassifications to Accounts payable | (13495) | (2903) |
| Ending balance as of December 31, | **3746** | **2590** |

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The table below provides the classification of the accruals related to the GTN sales adjustment included in the Company's consolidated balance sheet as of December 31, 2022 and December 31, 2021.

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| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Accounts receivable, net | 2,151 | 1,204 |
| Other current liabilities | 1,595 | 1,386 |
| | **3,746** | **2,590** |

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*<u>License revenue</u>*

On January 18, 2022, the Company entered into an exclusive license agreement with MTPC for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications in Japan. Under the terms of the agreement, the Company received an upfront payment of USD 30 million and may receive up to an additional USD 205 million in milestones if certain development and commercial events are achieved. The Company will also be entitled to receive royalties ranging in percentage from the high teens to the low twenties based on net sales of ZYNLONTA in Japan. MTPC will conduct clinical studies of ZYNLONTA in Japan and will have the right to participate in any global clinical studies by bearing a portion of the study costs. In addition, the Company will supply ZYNLONTA to MTPC for its drug development and commercialization under a supply agreement.

On July 8, 2022, the Company entered into exclusive license agreement with Sobi for the development and commercialization of ZYNLONTA for all hematologic and solid tumor indications outside of the U.S., greater China, Singapore and Japan. Under the terms of the agreement, the Company received an upfront payment of USD 55 million and is eligible to receive up to USD 382.5 million in regulatory and net sales-based milestones, of which USD 50 million in license revenue was recognized in December 2022 upon approval of the Marketing Authorisation Application by the European Commission for ZYNLONTA in third-line DLBCL.

The Company will also receive royalties ranging in percentage from the mid-teens to the mid-twenties based on net sales of the product in Sobi's licensed territories, subject to certain adjustments. Sobi will also contribute 25 percent of clinical trial costs for select global ZYNLONTA trials, up to a cap of USD 10 million per year. In addition, the Company has agreed to supply product to Sobi for its drug development and commercialization under a supply agreement.

The MTPC and Sobi license arrangements are accounted for separately. Each agreement includes a license and a performance obligation to supply product. The license and supply obligations are accounted for as separate performance obligations as they are considered distinct because MTPC and Sobi can benefit from the licenses on their own or together with other resources that are readily available, and the licenses are separately identifiable from other goods or services in the contract.

The Company completed significant development work which resulted in FDA approval of ZYNLONTA in the U.S. for the treatment of relapsed or refractory DLBCL. As a result, the up-front license fees for both MTPC and Sobi are recognized immediately at the time of license execution, as MTPC and Sobi can use and benefit from the IP and the Company has no further performance obligation with respect to the IP upon commencement of the license terms.

Although contingent development milestone amounts are assessed each period for the likelihood of achievement, they are typically constrained and recognized when the uncertainty is subsequently resolved for the full amount of the milestone and will be classified as license revenue. Sales milestones and royalties are recognized when the subsequent sales occur and classified as license revenue.

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**8. Employee expenses**

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **Note** | **2022** | **2021** | **2020** |
| Wages, salaries and other costs |  | 85660 | 78748 | 44058 |
| Social security costs |  | 12622 | 10433 | 7292 |
| Share-based compensation expense | 26 | 50637 | 60555 | 42928 |
| Defined benefit plan costs | 22 | 1076 | 436 | 966 |
| Defined contribution plan costs |  | 3019 | 1894 | 727 |
| **Employee expenses** |  | **153014** | **152066** | **95971** |

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Employee expenses increased from USD 152.1 million in 2021 to USD 153.0 million in 2022. This increase of USD 0.9 million is primarily due to higher wages and benefits, offset by lower share-based compensation expense, associated with the transition of certain key executives.

Employee expenses increased from USD 96.0 million in 2020 to USD 152.1 million in 2021. This increase of USD 56.1 million was primarily due to higher headcount as the Company continues to advance clinical trials to expand the potential market opportunities for ZYNLONTA in earlier lines of therapies and new histologies, advance Cami to support BLA submission, and build its pipeline. Employee expenses also increased due to the recruitment of commercial employees for the commercial launch of ZYNLONTA in 2021. The increase in headcount also resulted in higher share-based compensation expense. Share-based compensation also increased as a result of the Company's first annual equity award that was granted in 2021.

**9. Operating expense**

The following table provides the consolidated statement of operation classification of our total operating expense:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **Note** | **2022** | **2021** | **2020** |
| **<u>COGS</u>** |  | **4579** | **1393** | **—** |
| **<u>R&D</u>** |  |  |  |  |
| External costs <sup>(1)</sup> |  | 116550 | 91875 | 97768 |
| Employee expenses <sup>(2)</sup> | 8 | 71348 | 66127 | 44264 |
| **R&D expense** |  | **187898** | **158002** | **142032** |
| **<u>S&M</u>** |  |  |  |  |
| External costs <sup>(3)</sup> |  | 35752 | 28817 | 11887 |
| Employee expenses <sup>(2)</sup> | 8 | 33300 | 35963 | 10214 |
| **S&M expense** |  | **69052** | **64780** | **22101** |
| **<u>G&A</u>** |  |  |  |  |
| External costs <sup>(1)</sup> |  | 23640 | 21486 | 13637 |
| Employee expenses <sup>(2)</sup> | 8 | 48366 | 49976 | 41493 |
| **G&A expense** |  | **72006** | **71462** | **55130** |
| **Total operating expense** |  | **333535** | **295637** | **219263** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes depreciation expense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> Includes share-based compensation expense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup> Includes depreciation expense for Property, plant and equipment ("PP&E") for the year ended December 31, 2022. All other depreciation expense was not material for the year ended December 31, 2022. Depreciation expense was not material for year ended December 31, 2021 and 2020.

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The increase in Cost of product sales in the year ended December 31, 2022, was primarily driven by an impairment charge of USD 2.5 million, of which USD 1.7 million related to the manufacturing of antibodies that did not meet the Company's specifications, and an increase of USD 0.8 million was associated with inventory manufactured using the Company's existing process at a new facility that did not meet our specifications. In addition, Cost of product sales during the year ended December 31, 2022 increased due to a full year of sales activity in 2022 as compared to 2021 due to the commencement of ZYNLONTA sales in May 2021.

R&D external costs increased primarily as a result of higher chemistry, manufacturing and controls ("CMC") expense due to manufacturing activities to support the ADCT-212 program during the year ended December 31, 2022 as well as our continued clinical trials to expand the potential market opportunities for ZYNLONTA in earlier lines of therapy and build our pipeline. The Company reversed KUSD 8,100 of previously recorded impairment charges during the year ended December 31, 2021, relating to inventory costs incurred for the manufacture of product prior to FDA approval, which also contributed to the increase in R&D expenses in 2022 compared to 2021. Employee expense increased in the year ended December 31, 2022 primarily due to higher contract labor expenses and share-based compensation expense.

R&D expenses increased in the year ended December 31, 2021 as the Company invested in medical programs to expand the potential market opportunities for ZYNLONTA in earlier lines of therapies and new histologies, advance Cami to support BLA submission, and build its pipeline. As a result of these initiatives, employee expense increased due to increased headcount and higher share-based compensation expense. External costs increased primarily due to the advancement of our clinical trials associated with ZYNLONTA. CMC expenses increased in advance of the launch of ZYNLONTA and advancement of ADCT-601 clinical activities. The reversal of USD 8.1 million of previously recorded impairment charges during the year ended December 31, 2021 relating to inventory costs associated with the manufacture of ZYNLONTA that were historically recorded as R&D expenses, partially offset the increase in R&D expenses for 2021 compared to 2020.

The increase in S&M expenses for the year ended December 31, 2022 was primarily due to increased professional expenses relating to the commercial launch of ZYNLONTA. This increase during the year ended December 31, 2022 was partially offset by lower employee expenses primarily due to lower share-based compensation expense. S&M expenses in the year ended December 31, 2021 were primarily related to the recruitment of commercial employees for the commercial launch of ZYNLONTA. External costs increased as a result of higher professional fees for the launch of ZYNLONTA.

The increase in G&A expenses in the year ended December 31, 2022 was primarily due to higher professional fees, including the fees associated with the license agreement entered into with MTPC. Employee expense for the year ended December 31, 2022 decreased as a result of lower share-based compensation expense partially offset by higher wages and benefits including USD 1.3 million of executive compensation associated with the CEO transition. The increase in G&A expense in the year ended December 31, 2021 was primarily due to higher employee expense as a result of increased share-based compensation expense. External costs also increased primarily as a result of higher professional fees associated with being a public company.

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**10. Non-operating (expense) income**

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **Note** | **2022** | **2021** | **2020** |
| Convertible loans, derivatives, change in fair value income (expense) | 24 | 25650 | 34893 | (45411) |
| Convertible loans, derivatives, transaction costs |  |  | (148) | (1571) |
| Loss on extinguishment | 24 | (42114) |  |  |
| Deerfield warrant obligation, change in fair value income | 25 | 11504 |  |  |
| Senior secured term loan facility, warrants, transaction costs | 23 | (245) |  |  |
| Senior secured term loan facility, warrants, change in fair value income | 23 | 2962 |  |  |
| Share of results with joint venture | 18 | (10084) | (6672) | 24368 |
| Exchange differences (loss) gain |  | (110) | 50 | (576) |
| R&D tax credit |  | 357 | 366 | 584 |
| **Non-operating (expense) income** |  | **(12080)** | **28489** | **(22606)** |

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*Convertible loans, derivatives, change in fair value income* 

Changes in derivative fair values are explained in note 24, "Convertible loans". Pursuant to the Facility Agreement with Deerfield, the Company drew down the first tranche of the convertible loans amounting to USD 65 million on May 19, 2020. Additionally, in connection with the FDA approval of ZYNLONTA, the Company drew down the second tranche of convertible loans amounting to USD 50 million on May 17, 2021.

*Convertible loans, derivatives, transaction costs*

The transaction costs associated with the embedded derivatives associated with the draw-down of the second tranche of the convertible loans on April 23, 2021 were charged directly to the consolidated statement of operations. Transaction costs incurred on the issuance of the first and second tranches were allocated pro rata to the embedded conversion option derivative and to the convertible loan. The costs allocated to the loans were deducted from the initial book value of the loans and recognized over the life of the loans as part of the effective interest costs. The costs allocated to the embedded derivative feature of the first and second tranches were recognized directly in the consolidated statement of operation.

*Loss on debt extinguishment*

As a result of the exchange agreement, the Company recognized a loss on extinguishment, which primarily consists of the difference between the aggregate principal amount and carrying value of the convertible loans, exit fee, as well as the unpaid interest payments through the maturity date. See note 24, "Convertible loans" for further information on this transaction.

*Deerfield warrant obligation, change in fair value income*

Pursuant to an exchange agreement with Deerfield entered into on August 15, 2022, the Company issued warrants to purchase an aggregate of 4,412,840 common shares. The Deerfield warrant obligation has been recorded at its initial fair value and is remeasured to fair value on a quarterly basis. Changes in fair value of the Deerfield warrant obligation are explained in note 25, "Deerfield warrants."

*Senior secured term loan facility, warrants, transaction costs*

The transaction costs associated with the warrants in connection with the August 15, 2022 Loan Agreement were charged directly to the consolidated statement of operations. See note 23, "Senior secured term loan facility and warrants" for further information on this transaction.

*Senior secured term loan facility, warrants, change in fair value income*

The Company has accounted for the First Tranche of the senior secured term loan and warrants as one hybrid financial instrument, with the USD 120 million proceeds separated into two components: a warrant obligation and a loan. The warrant obligation has been recorded at its

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initial fair value and is remeasured to fair value at the end of each reporting period. Changes in fair value of the warrant obligation are explained in note 23, "Senior secured term loan facility and warrants."

*Share of results with joint venture*

In connection with the formation of Overland ADCT BioPharma in December 2020, the Company recorded its proportionate share of Overland ADCT BioPharma's net loss. See note 18, "Interest in joint venture."

*Exchange differences (loss) gain*

Also included in non-operating (expense) income are favorable or unfavorable Exchange differences. The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to British pounds, Euros and Swiss francs. Exchange differences represent gain or (loss) based on favorable or unfavorable changes in foreign currencies.

*R&D tax credit*

The Company recognizes as income amounts received and receivable by its subsidiary, ADCT UK, under the United Kingdom's R&D Expenditure Credit scheme ("UK R&D Credit Scheme"). The grants represent 13% of eligible expenditure. The claims are payable through the tax system, as a refund of corporation tax or of other taxes, including income tax and social security payments deducted at source from qualifying (research) employees' payroll and VAT. The relevant amounts have been therefore presented net in the balance sheet. As the credit is independent of ADCT UK's taxable profit, is clearly designed to incentivize companies to invest in R&D activities and is itself taxable income, the Group has recognized the income as government grants within non-operating (expense) income and not as a credit to income tax expense.

**11. Income tax expense (benefit)**

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **2022** | **2021** | **2020** |
| **Current:** |  |  |  |
| &nbsp;&nbsp;Current income taxes for the year | 3145 | 3644 | 417 |
| &nbsp;&nbsp;Current income tax (benefit) expense related to prior years | (1298) | 926 | (90) |
| **Total current income tax expense** | **1847** | **4570** | **327** |
| **Deferred:** |  |  |  |
| &nbsp;&nbsp;Recognition of previously unrecognized tax credits | 11 | (22745) | **—** |
| &nbsp;&nbsp;Origination and reversal of tax credits | (1080) | (2311) | **—** |
| &nbsp;&nbsp;Other | 361 | (993) | **—** |
| **Total deferred income tax benefit** | **(708)** | **(26049)** | **—** |
| **Income tax expense (benefit)** | **1139** | **(21479)** | **327** |

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The Group's expected tax expense for each year is based on the applicable tax rate in each individual jurisdiction, which in 2022 ranged between 13.65% and 21.0% (2021: between 13.70% and 21.0%; 2020: between 13.68% and 21.0%) in the tax jurisdictions in which the Group operates. The weighted average tax rate applicable to the profits of the consolidated entities was 13.1% (2021: 13.4%; 2020: 13.8%). This decrease is due to changes in the mix of the taxable results and the changes in tax rates of the individual group companies.

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The tax on the Group's net loss before tax differs from the theoretical amount that would arise using the weighted average applicable tax rate as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **2022** | **2021** | **2020** |
| Loss before taxes | 154661 | 251505 | 245963 |
| Pre-tax book income at the applicable statutory rate | 20191 | 34060 | 33319 |
| Tax effects of: |  |  |  |
| &nbsp;&nbsp;Tax losses for which no deferred income tax asset is recognized | (18908) | (31138) | (26112) |
| &nbsp;&nbsp;State income taxes - U.S. | 654 | 2704 |  |
| &nbsp;&nbsp;Recognition of previously unrecognized R&D tax credits and deductible temporary differences | 22 | 22270 |  |
| &nbsp;&nbsp;R&D tax credit - U.S.  | 6110 | 7232 | 546 |
| &nbsp;&nbsp;Non-deductible expenses | (8023) | (13665) | (8166) |
| &nbsp;&nbsp;Other  | (1185) | 16 | 86 |
| **Income tax (expense) benefit**  | **(1139)** | **21479** | **(327)** |

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During 2022, the Group recorded a gain of KUSD 1,298 in connection with its prior year tax liability (KUSD 926 charge in 2021). Of this total, KUSD 1,149 represents income tax benefit recognized upon filing the Group's 2021 income tax returns. This impact is reflected in the State income taxes – U.S. (KUSD 890) and Other (KUSD 259) line items in the effective tax rate reconciliation above. The remaining gain of KUSD 149 was recorded to adjust the 2020 tax liability resulting from the Group's decision that the treatment associated with the timing of intercompany expenses was not probable to be sustained upon examination (KUSD 926 charge in 2021). This gain represents income tax benefit recognized upon filing an amended income tax return. In addition, during 2022, the Group increased its deferred tax assets by KUSD 446 (KUSD 2,783 reduction in 2021 to reflect the estimated impact on the deferred tax assets of filing the 2020 amended return) to reflect the impact of the amended filing on tax credit carryforwards. The total impact is reflected in Non-deductible expenses in the effective tax rate reconciliation above.

**12. Other current assets**

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| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| VAT receivable, net | 400 | 364 |
| Withholding tax receivable | 363 | 23 |
| Prepaid insurance | 2747 | 3416 |
| Prepaid compensation | 1422 | 1489 |
| Prepaid expenses | 3143 | 2457 |
| Prepaid income tax | 7983 |  |
| Prepaid and other CMC, research and clinical expenses | 8001 | 7988 |
| Cost sharing arrangement receivable | 2869 | 1106 |
| UK R&D expenditure credit receivable | 492 | 455 |
| Interest Receivable | 619 |  |
|  | **28039** | **17298** |

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The increase of USD 10.7 million in other current assets is primarily due to prepaid income taxes.

The maturity of other current assets is less than one year. The Company considers the counterparty risk as low. The Company believes the carrying amount of the aforementioned receivables is considered to approximate their fair value.

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**13. Non-current assets by geographic area**

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| | | |
|:---|:---|:---|
| **(in KUSD)**<br>**Country** |<br>**December 31, 2022** |<br>**December 31, 2021** |
| Switzerland | 46975 | 56680 |
| United Kingdom | 6779 | 8165 |
| United States | 1739 | 1203 |
|  | **55493** | **66048** |

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Non-current assets consist of PP&E, right-of-use assets, intangible assets and interest in joint venture. The interest in joint venture and the majority of intangible assets are primarily located in Switzerland.

**14. Inventory**

Inventory as of December 31, 2022 and December 31, 2021 consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Work in progress | 18165 | 10562 |
| Finished goods <sup>(1)</sup> | 399 | 560 |
| Total inventory | **18564** | **11122** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Subsequent to December 31, 2021, the Company's inventory is no longer held on consignment by the third-party logistics and distribution provider. Finished goods includes KUSD 3 relating to ZYNLONTA held on consignment by the Company's third-party logistics and distribution provider as of December 31, 2021.

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**15. Property, plant and equipment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(in KUSD)** | **Leasehold <br>improvements** | **Laboratory <br>equipment** | **Office <br>equipment** | **Hardware** | **Construction in progress** | **Total** |
| **Cost** | | | | | | |
| **January 1, 2021** | **746** | **1002** | **671** | **870** | **67** | **3356** |
| Additions | 1761 | 1250 | 308 | 111 |  | 3430 |
| Transfers | 67 |  |  |  | (67) |  |
| Disposals and scrapping | (272) |  | (24) |  |  | (296) |
| Exchange difference | (53) | (24) | (10) |  |  | (87) |
| **December 31, 2021** | **2249** | **2228** | **945** | **981** | **—** | **6403** |
| Additions | 21 | 555 | 1 |  |  | 577 |
| Exchange difference | (188) | (251) | (54) | (2) |  | (495) |
| **December 31, 2022** | **2082** | **2532** | **892** | **979** | **—** | **6485** |
| **Accumulated depreciation** |  |  |  |  |  |  |
| **January 1, 2021** | **(362)** | **(594)** | **(457)** | **(314)** | **—** | **(1727)** |
| Depreciation charge | (312) | (251) | (99) | (258) |  | (920) |
| Disposals and scrapping | 272 |  | 24 |  |  | 296 |
| Exchange difference | 3 | 9 | 2 |  |  | 14 |
| **December 31, 2021** | **(399)** | **(836)** | **(530)** | **(572)** | **—** | **(2337)** |
| Depreciation charge | (226) | (436) | (124) | (231) |  | (1017) |
| Exchange difference | 12 | 96 | 21 | 1 |  | 130 |
| **December 31, 2022** | **(613)** | **(1176)** | **(633)** | **(802)** | **—** | **(3224)** |
| **Net book amount** |  |  |  |  |  |  |
| **December 31, 2021** | **1850** | **1392** | **415** | **409** | **—** | **4066** |
| **December 31, 2022** | **1469** | **1356** | **259** | **177** | **—** | **3261** |

---

In 2022 and 2021, the investments in tangible fixed assets related to leasehold improvements and laboratory equipment related to the UK facility. During 2021, the Company wrote-off fully depreciated PP&E no longer in use.

Depreciation of property, plant and equipment has been charged to the following categories in the consolidated statement of operation:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in KUSD)** | **2022** | **2021** | **2020** |
| R&D expense | 840 | 751 | 589 |
| S&M expense <sup>(1)</sup> | 80 | 67 |  |
| G&A expense | 97 | 102 | 185 |
|  | **1017** | **920** | **774** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Depreciation expense for S&M was not material for year ended December 31, 2020.

------

**16. Leases**

The following tables provide balance sheet classification related to leases:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Properties (offices) | 6669 | 7080 |
| Vehicles | 51 | 84 |
| **Total right-of-use assets** | **6720** | **7164** |

---

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Lease liabilities (short-term) | 1097 | 1029 |
| Lease liabilities (long-term) | 6564 | 6994 |
| **Total lease liabilities** | **7661** | **8023** |

---

During the third quarter of 2022, the Company extended the term of its existing lease related to its U.S. corporate offices in New Jersey for an additional two years commencing on December 1, 2022, including an extension option for three additional years. The Company is reasonably certain it will exercise the extension option and therefore has accounted for the lease using a five-year lease term.

During the first quarter of 2021, the Company entered into a new lease agreement with a ten-year term commencing in January 2021 for space in the iHub building on the Imperial University college campus in White City, West London. The primary function of the new facility, which consists of approximately 1,100 square meters, is R&D. Pursuant to the terms of the agreement, the aggregate minimum lease payments for the first five years are fixed at which point the parties agree to perform an open market review, subject to a minimum and maximum rent escalation of 2% and 4%, respectively. Alternatively, the Company has the contractual right to exit the lease upon the fifth anniversary of lease commencement. In accounting for its Right-of-use asset and Lease liability, the Company concluded it was reasonably certain that it would occupy the space for the full ten-year term. During the second quarter of 2021, the Company entered into a new 18-month lease for its existing U.S. corporate offices in New Jersey, which commenced in June 2021.

------

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | | | |
| **Right-of-Use Assets** |<br>**Properties (Offices)** |<br>**Vehicles** |<br>**Total** |
| **Cost** | | | |
| **January 1, 2021** | **5324** | **78** | **5402** |
| Additions | 5662 | 56 | 5718 |
| Lease termination | (1873) |  | (1873) |
| Exchange difference | (108) |  | (108) |
| **December 31, 2021** | **9005** | **134** | **9139** |
| Additions | 1234 |  | 1234 |
| Lease termination | (386) |  | (386) |
| Exchange difference | (542) |  | (542) |
| **December 31, 2022** | **9311** | **134** | **9445** |
| **Accumulated depreciation** |  |  |  |
| **January 1, 2021** | **(2253)** | **(20)** | **(2273)** |
| Depreciation charge | (1551) | (30) | (1581) |
| Lease termination | 1873 |  | 1873 |
| Exchange difference | 6 |  | 6 |
| **December 31, 2021** | **(1925)** | **(50)** | **(1975)** |
| Depreciation charge | (1160) | (33) | (1193) |
| Lease termination | 386 |  | 386 |
| Exchange difference | 57 |  | 57 |
| **December 31, 2022** | **(2642)** | **(83)** | **(2725)** |
| **Net book amount** |  |  |  |
| **December 31, 2021** | **7080** | **84** | **7164** |
| **December 31, 2022** | **6669** | **51** | **6720** |

---

Depreciation of right-of-use assets have been charged to the following categories in the consolidated statement of operation:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
| **(in KUSD)** | **2022** | **2021** | **2020** |
| R&D expenses | 946 | 1342 | 915 |
| G&A expenses | 247 | 239 | 236 |
|  | **1193** | **1581** | **1151** |

---

Depreciation expense for S&M was deemed to be not material.

------

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | | | |
| **Lease liabilities** |<br>**Properties (Offices)** |<br>**Vehicles** |<br>**Total** |
| **January 1, 2021** | **3402** | **65** | **3467** |
| Additions | 5662 | 56 | 5718 |
| Cash outflow (including interest) | (1169) | (33) | (1202) |
| Interest | 222 | 3 | 225 |
| Exchange difference | (219) | 34 | (185) |
| **December 31, 2021** | **7898** | **125** | **8023** |
| Additions | 1234 |  | 1234 |
| Cash outflow (including interest) | (1166) | (36) | (1202) |
| Interest | 189 | 2 | 191 |
| Exchange difference | (548) | (37) | (585) |
| **December 31, 2022** | **7607** | **54** | **7661** |
| **December 31, 2021** |  |  |  |
| Lease liabilities (short-term) | 994 | 35 | 1029 |
| Lease liabilities (long-term) | 6904 | 90 | 6994 |
| **December 31, 2022** |  |  |  |
| Lease liabilities (short-term) | 1061 | 36 | 1097 |
| Lease liabilities (long-term) | 6546 | 18 | 6564 |

---

The Company does not recognize right-of-use assets for short-term and low value leases. The Company has no low value leases. Expense relating to short-term leases incurred during 2022 and 2021 is recorded in the consolidated statement of operation in an amount of KUSD 46 and KUSD 164, respectively.

The amount payable in 2023 under short-term leases (with an original term of under 12 months) is KUSD 5.

------

**17. Intangible assets**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Indefinite lived** | **Indefinite lived** | **Definite lived** | **Definite lived** | **Definite lived** | |
| | **Licenses** | **Internal development costs** | **Internal development costs** | **Licenses** | **Software** |<br>**Total** |
| **Cost** | | | | | | |
| **January 1, 2021** | **11144** | **—** | **—** | **—** | **168** | **11312** |
| Additions | 2293 | 631 |  | 600 | 14 | 3538 |
| Transfers | (452) |  |  | 452 | (6) | (6) |
| **December 31, 2021** | **12985** | **631** |  | **1052** | **176** | **14844** |
| Additions | 695 | 323 |  |  | 110 | 1128 |
| Transfers |  | (954) | 954 |  |  |  |
| Exchange difference |  |  |  |  | (8) | (8) |
| **December 31, 2022** | **13680** | **—** | **954** | **1052** | **278** | **15964** |
| **Accumulated amortization** |  |  |  |  |  |  |
| **January 1, 2021** | **(1069)** | **—** | **—** | **—** | **(64)** | **(1133)** |
| Amortization charge |  |  |  | (50) | (79) | (129) |
| **December 31, 2021** | **(1069)** | **—** | **—** | **(50)** | **(143)** | **(1262)** |
| Amortization charge |  |  |  | (75) | (43) | (118) |
| Impairment charge | (226) |  |  |  |  | (226) |
| Exchange difference |  |  |  |  | 2 | 2 |
| **December 31, 2022** | **(1295)** | **—** | **—** | **(125)** | **(184)** | **(1604)** |
| **Net book amount** |  |  |  |  |  |  |
| **December 31, 2021** | **11916** | **631** | **—** | **1002** | **33** | **13582** |
| **December 31, 2022** | **12385** | **—** | **954** | **927** | **94** | **14360** |

---

Amortization and impairment of intangible assets have been charged to the following categories in the consolidated statement of operation:

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **Year ended December 31, 2022** | **Year ended December 31, 2021** | **Year ended December 31, 2020** |
| Cost of product sales | 75 | 50 |  |
| R&D expenses | 255 | 12 | 230 |
| G&A expenses | 14 | 67 | 33 |
|  | **344** | **129** | **263** |

---

*<u>Licenses</u>*

Licenses classified as definite-lived intangible assets are amortized over their useful lives, which are determined on the basis of the expected pattern of consumption of the expected future economic benefits embodied in the licenses and which therefore commence only once the necessary regulatory and marketing approval has been received for the product candidates to which they relate. The Company classifies its licenses relating to product candidates for which regulatory approval has not been received as indefinite-lived intangible assets and did not recognize amortization expense relating to these licenses.

On April 23, 2021, the Company received FDA approval for ZYNLONTA. Upon FDA approval, the Company assigned an estimated useful life of 14 years to the intangible assets related to ZYNLONTA based on the expected patent life, which includes an extension period that the Company believes is highly probable of being granted. This estimated useful life does not include additional patent protection that may be granted under applications filed but not yet approved other than the extension period discussed above. Amortization expense

------

relating to the ZYNLONTA intangible assets for the year ended December 31, 2022 and December 31, 2021 was KUSD 75 and KUSD 50, respectively, which was recorded in Cost of product sales in the consolidated statement of operations.

In 2022, the Company capitalized the following license fees paid or accrued to third parties as intangible assets:

*<u>Milestone Payments</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 500 paid upon the dosing of a specific number of patients in the first in-human clinical study related to an antibody the Company acquired from a third party to be used in research, development, manufacturing and commercialization. The amount was capitalized as an indefinite-lived intangible asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 195 paid upon the successful completion of in-vivo efficacy studies related to a license with a third party to use their specific binding proteins in the development, manufacturing and commercialization of products. The amount was capitalized as an indefinite-lived intangible asset.

In 2021, the Company capitalized the following license fees paid or accrued to third parties as intangible assets:

*<u>Milestone Payments</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 1,050 paid upon the successful completion of a pre-clinical toxicology study and IND submission related to an antibody the Company acquired from a third party to be used in research, development, manufacturing and commercialization. The amount was capitalized as an indefinite-lived intangible asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 600 paid upon final regulatory approval of ZYNLONTA related to a license agreement with a third party to use their technology to research, develop, manufacture and commercialize products. The amount was capitalized as a definite-lived intangible asset and is being amortized over its estimated useful life of 14 years as described above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 293 paid upon the commencement of a Phase 1 clinical trial related to a license agreement with a third party to use their technology to research, develop, manufacture and commercialize products. The amount was capitalized as an indefinite-lived intangible asset.

*<u>License Payments</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 400 paid relating to a license agreement with a third party to use their proprietary conjugation technology to research, develop, manufacture and commercialize products. The amount was capitalized as an indefinite-lived intangible asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 300 paid relating to a license agreement with a third party to acquire an antibody to be used in research, development, manufacturing and commercialization. The amount was capitalized as an indefinite-lived intangible asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount of KUSD 250 paid relating to a license agreement with a third party to acquire an antibody to be used in research, development, manufacturing and commercialization. The amount was capitalized as an indefinite-lived intangible asset.

*<u>Internal Development Costs</u>*

The ZYNLONTA internal development costs were initially recorded as an indefinite-lived intangible asset. In December 2022, regulatory approval was achieved in the EU, at which point the asset became a definite-lived intangible asset. The Company will commence amortization of the asset based on a systematic and rational approach.

*<u>Impairment testing</u>*

The Group performed its annual impairment test by assessing the estimated fair value less costs to sell (recoverable amount) and comparing to the carrying value of the assets. The recoverable amount of the assets is considered to be a Level 3 in the fair value hierarchy due to the unobservable inputs used in the valuation.

For purposes of assessing impairment, each of the significant indefinite-lived intangible assets were grouped at the lowest levels for which there are separately identifiable expected future cash flows. The valuation models calculate the risk-adjusted discounted cash flow observing the following key assumptions in estimating the recoverable amount:

–Timing and outcome of achieving clinical development and regulatory approval milestones;

– Anticipated research and development costs;

–Size of potential market and general commercialization expectations, such as anticipated pricing and uptake; and

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–Anticipated cost of goods and sales and marketing expenditures.

Each of the product candidates related to the indefinite-lived and definite-lived intangible assets are additionally monitored for impairment considering the following indicators:

–Future contractual commitments and internal budgets approved by the Board of Directors for ongoing and future trials;

–Consideration of the progress of clinical trials, including obtaining primary endpoint readout data, discussions with regulatory authorities for new trials and enrollment status for ongoing clinical trials; and

–Consideration of market potential, supported where available by external market studies, and assessments of competitor products and product candidates.

If a candidate fails any of those indicators, the entire balance is written off. During 2022 and 2020, the Company terminated a program in each year. Consequently, impairment charges of KUSD 226 and KUSD 216 (corresponding to the entire carrying amount of the capitalized licenses) were recognized and charged to R&D expenses in the consolidated statement of operation. No impairment losses were recognized in 2021.

**18. Interest in joint venture**

On December 14, 2020, the Company announced the formation of a new joint venture company, Overland ADCT BioPharma, with Overland Pharmaceuticals ("Overland"), a fully integrated biopharmaceutical company backed by Hillhouse Capital. Overland ADCT BioPharma will develop and commercialize one of the Company's ADC products, ZYNLONTA, and three of the Company's ADC product candidates, ADCT-601, ADCT-602 and ADCT-901 (collectively, the "Licensed Products"), in greater China and Singapore (the "Territory"). The Company agreed to supply product to Overland ADCT BioPharma for its drug development and commercialization under a supply agreement entered into between the parties.

Under the terms of the license agreement between the Company and Overland ADCT BioPharma, the Company licensed exclusive development and commercialization rights to the Licensed Products (the "Licensed IP") in the Territory to Overland ADCT BioPharma. Overland invested USD 50.0 million in Overland ADCT BioPharma, and is obligated to pay the Company potential development milestone payments related to ADCT-601, ADCT-602 and ADCT-901, for a 51% equity interest. The Company received a 49% equity interest in exchange for contribution of the Licensed IP. The Company and Overland have appointed an equal number of nominees to the board of directors of Overland ADCT BioPharma which includes the Chief Executive Officer of Overland ADCT BioPharma. Pursuant to the license agreement, the Company may also earn low to mid-single digit royalties on net sales of the Licensed Products. In addition, Overland ADCT BioPharma elected to participate in the Company's global clinical trials. The Company also received an option, which it may exercise at its sole discretion, to exchange any or all of its equity interest in Overland ADCT BioPharma into an equity interest in Overland upon an initial public offering of Overland. Given the uncertainty of an initial public offering of Overland, the Company did not assign any value to the option.

In connection with the formation of Overland ADCT BioPharma, the Company determined the fair value of its equity interest by implying a total equity value of Overland ADCT BioPharma using Overland's investment of USD 50.0 million and the fair value of the contingent milestone consideration for Overland's 51% equity interest. The fair value of the contingent consideration was determined to be nominal due to the high uncertainty related to achieving certain conditions associated with the contingent consideration as of the closing date. The fair value of the Company's equity interest as of December 31, 2020 was determined to be KUSD 48,040, which resulted in the Company recognizing a gain of KUSD 24,501 and a deferred gain of KUSD 23,539. The gain was recognized within Share of results with joint venture in the Company's Consolidated Statement of Operation for the year ended December 31, 2020. The table below provides a rollforward of the Company's interest in Overland ADCT BioPharma as of December 31, 2022 and 2021.

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| | |
|:---|:---|
| **(in KUSD)** | |
| **Interest in joint venture** | |
| **January 1, 2021** | 47908 |
| Share of results with joint venture | (6672) |
| **December 31, 2021** | **41236** |
| Share of results in joint venture | (10084) |
| **December 31, 2022** | **31152** |

---

As of December 31, 2022, the deferred gain of USD 23.5 million arising from the Company's contribution for its equity investment in the joint venture remained unchanged from December 31, 2021. The Company's carrying value of its investment in a joint venture increases or decreases in relation to the Company's proportionate share of comprehensive income or loss of the joint venture. When the Company's

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share of losses of a joint venture exceeds the Company's interest in that joint venture less the carrying value of the deferred gain, the Company ceases to recognize its share of further losses. Additional losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the joint venture.

The tables below provide summarized financial information for Overland ADCT BioPharma that is material to the Company. The following information reflects the amounts presented in the financial statements of Overland ADCT BioPharma and not the Company's share of those amounts.

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| | | |
|:---|:---|:---|
| **(in KUSD)** | **As of** | **As of** |
| **Summarized Balance Sheet** | **December 31, 2022** | **December 31, 2021** |
| Cash and cash equivalents | 19261 | 39318 |
| Prepaid and other current assets | 2 | 15 |
| Intangible assets | 49249 | 48040 |
| Total liabilities | (3062) | (2828) |
| Net assets | **65450** | **84545** |

---

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
| **Summarized Statement of Comprehensive Loss** | **December 31, 2022** | **December 31, 2021** | **December 31, 2020** |
| Operating expenses | 20228 | 13876 | 269 |
| Other income | (1232) | (259) |  |
| Net loss | **18996** | **13617** | **269** |

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**19a Financial instruments by class and by category**

The accounting policies for financial instruments have been applied as indicated below:

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| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **Note** | **December 31, 2022** | **December 31, 2021** |
| **Financial assets** | | | |
| Cash and cash equivalents | 5.1 / 19b | 326441 | 466544 |
| Accounts receivable, net | 3.4 | 72971 | 30218 |
| Other current assets (excluding prepaid expenses) | 12 | 4743 | 1948 |
| Other long-term assets |  | 903 | 693 |
| **Total financial assets** <sup>(1)</sup> |  | **405058** | **499403** |

---

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **Note** | **December 31, 2022** | **December 31, 2021** |
| **Financial liabilities** | | | |
| Accounts payable |  | 12351 | 12080 |
| Other current liabilities | 21 | 73035 | 50497 |
| Lease liabilities, short-term and long-term | 16 | 7661 | 8023 |
| Senior secured term loans, short-term and long-term | 23 | 109714 |  |
| Convertible loans, short-term and long-term | 24 |  | 93728 |
| Convertible loans, derivatives | 24 |  | 37947 |
| Warrant obligations | 23, 25 | 1788 |  |
| Deferred royalty obligation | 27 | 222277 | 225477 |
| Income taxes payable |  |  | 3754 |
| **Total financial liabilities** <sup>(1)</sup> |  | **426826** | **431506** |
| **Net financial position** |  | **(21768)** | **67897** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Financial assets and Financial liabilities are recorded at historical or amortized cost with the exception of Convertible loans, derivatives and Warrant obligations which are recorded at fair value.

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The following is the net debt rollforward for the Company for 2021 and 2022.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notes** | **Cash and cash equivalents** | **Convertible loan** <sup>(1)</sup> | **Embedded derivatives** <sup>(1)</sup> | **Derivatives** <sup>(1)</sup> | **Deferred royalty obligation** <sup>(2)</sup> | **Lease liabilities** <sup>(3)</sup> | **Total** |
| **January 1, 2021** |  | **439195** | **(38406)** | **(51229)** | **(21979)** | **—** | **(3467)** | **324114** |
| Issuance of convertible loan | 24 | 50000 | (50368) | (18158) | 20341 |  |  | 1815 |
| Fair value adjustments | 24 |  |  | 31440 | 1638 |  |  | 33078 |
| Convertible loan transaction costs | 24 | (557) | 409 |  |  |  |  | (148) |
| Convertible loan accretion | 24 |  | (10418) |  |  |  |  | (10418) |
| Interest payments | 16, 24 | (5280) | 5055 |  |  |  | 225 |  |
| Issuance of deferred royalty obligation | 27 | 225000 |  |  |  | (225000) |  |  |
| Deferred royalty transaction costs | 27 | (6998) |  |  |  | 6998 |  |  |
| Deferred royalty obligation accretion and cumulative catch-up | 27 |  |  |  |  | (7688) |  | (7688) |
| Deferred royalty obligation payments | 27 | (213) |  |  |  | 213 |  |  |
| Lease additions | 16 |  |  |  |  |  | (5718) | (5718) |
| Lease principal | 16 | (977) |  |  |  |  | 977 |  |
| Other lease activity including foreign exchange | 16 |  |  |  |  |  | (40) | (40) |
| Net cash outflow |  | (233632) |  |  |  |  |  | (233632) |
| Foreign exchange on cash |  | 6 |  |  |  |  |  | 6 |
| **December 31, 2021** |  | **466544** | **(93728)** | **(37947)** | **—** | **(225477)** | **(8023)** | **101369** |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notes** | **Cash and cash equivalents** | **Senior secured term loans**<sup>(4)</sup> | **Warrant obligations**<sup>(4)(5)</sup> | **Convertible loan** <sup>(1)</sup> | **Embedded derivatives** <sup>(1)</sup> | **Deferred royalty obligation** <sup>(2)</sup> | **Lease liabilities** <sup>(3)</sup> | **Total** |
| **January 1, 2022** |  | **466544** | **—** | **—** | **(93728)** | **(37947)** | **(225477)** | **(8023)** | **101369** |
| Fair value adjustments | 23, 24, 25 |  |  | 14466 |  | 25650 |  |  | 40116 |
| Convertible loan and senior secured term loan accretion | 24 |  | (5845) |  | (7684) |  |  |  | (13529) |
| Interest payments | 23, 24 | (10368) | 4987 |  | 5190 |  |  | 191 |  |
| Senior secured term loan transaction costs | 23 | (7432) | 7187 |  |  |  |  |  | (245) |
| Issuance of senior secured term loan facility | 23 | 120000 | (116043) | (3957) |  |  |  |  |  |
| Loss on extinguishment | 24 |  |  |  | (22082) |  |  |  | (22082) |
| Deerfield loan exchange | 24, 25 | (118304) |  |  | 118304 |  |  |  |  |
| Issuance of Deerfield warrants | 25 |  |  | (12297) |  | 12297 |  |  |  |
| Deferred royalty obligation accretion and cumulative catch- up | 27 |  |  |  |  |  | (7798) |  | (7798) |
| Deferred royalty obligation payments | 27 | (10998) |  |  |  |  | 10998 |  |  |
| Lease additions | 16 |  |  |  |  |  |  | (1234) | (1234) |
| Lease principal | 16 | (1011) |  |  |  |  |  | 1011 |  |
| Other lease activity including foreign exchange | 16 |  |  |  |  |  |  | 394 | 394 |
| Net cash outflow |  | (111782) |  |  |  |  |  |  | (111782) |
| Foreign exchange on cash |  | (208) |  |  |  |  |  |  | (208) |
| **December 31, 2022** |  | **326441** | **(109714)** | **(1788)** | **—** | **—** | **(222277)** | **(7661)** | **(14999)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> See note 24, "Convertible loans" for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> See note 27, "Deferred royalty obligation" for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup> See note 16, "Leases" for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(4)</sup> See note 23, "Senior secured term loan facility and warrants" for further information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(5)</sup> See note 25, "Deerfield warrants" for further information.

------

**19b Credit quality of financial assets**

The Company's cash and cash equivalents are held at the following financial institutions, each with a high quality credit rating ranging from BBB to A+ (by reference to S&P credit ratings):

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| **Cash and cash equivalents** | | |
| UBS | 105183 | 154961 |
| Credit Suisse | 110338 | 157098 |
| JP Morgan Chase | 654 | 1295 |
| Bank of America | 110266 | 153190 |
|  | **326441** | **466544** |

---

Accounts receivable, net, Other current assets (excluding prepaid expenses) and other long-term assets are fully performing, not past due and not impaired (see note 12, "Other current assets" and note 19a, "Financial instruments by class and by category").

------

**20. Deferred income taxes and tax credit**

**Recognized unused tax credits and temporary differences**

The Group projects its future taxable profits based on currently enacted law, and which are subject to revision if the U.S. legislates new tax law. Deferred income tax assets from ADCT America's federal and state R&D tax credit carryforwards, as well as temporary differences, are recognized to the extent that the realization of the related tax benefit through future taxable profits is probable. The components of Deferred income tax as of December 31, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **As of December 31, 2022** | **As of December 31, 2021** |
| U.S. Federal R&D credits | 21200 | 21213 |
| U.S. State R&D credits | 4924 | 3843 |
| Other items | 633 | 993 |
| Total | **26757** | **26049** |

---

U.S. federal and state R&D credits associated with recognized deferred tax assets are scheduled to expire in future years through 2042 as follows:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| 2026 | 14 |  |
| 2036 | 385 | 61 |
| 2037 | 111 |  |
| 2038 |  |  |
| 2039 | 937 | 5552 |
| 2040 | 8429 | 8429 |
| 2041 | 5736 | 7232 |
| 2042 | 6123 |  |
| **Total** | **21735** | **21274** |

---

An amount of KUSD 5,874 was utilized in 2022 (KUSD 6,010 in 2021). The U.S. R&D tax credits in the above table may be carried forward for up to 20 years. In addition, U.S. State R&D credits of KUSD 4,389 have no expiration date. These U.S. R&D tax credits relate entirely to ADCT America.

**Unused tax losses, unrecognized temporary differences and unused tax credits**

Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognized are attributable to the following:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Tax losses | 926350 | 818946 |
| Unused U.S. State R&D tax credits | 918 | 907 |
| Deductible (taxable) temporary differences | (25924) | (40380) |
| **Total** | **901344** | **779473** |

---

*<u>Tax loss carryforwards</u>*

Potential deferred income tax assets from tax loss carryforwards exceed deferred tax liabilities. Deferred income tax assets from tax loss carryforwards are initially recognized to the extent of suitable deferred income tax liabilities, then to the extent that the realization of the related tax benefit through future taxable profits is probable. On this basis, the Company has decided not to recognize any deferred income tax assets other than those described above. The amounts of deferred income tax assets that arise from sources other than tax loss carryforwards and the amounts of deferred income tax liabilities are insignificant in comparison to the unrecognized tax loss carryforwards.

------

Tax losses not recognized and to be carried forward (in KUSD):

---

| | | |
|:---|:---|:---|
| **Years of expiry** | **December 31, 2022** | **December 31, 2021** |
| 2022 |  | 31128 |
| 2023 | 38441 | 38441 |
| 2024 | 92012 | 92012 |
| 2025 | 121866 | 121866 |
| 2026 | 118943 | 118943 |
| 2027 | 190928 | 190928 |
| Beyond 2028 | 364160 | 225628 |
|  | **926350** | **818946** |

---

All of these carryforwards relate to the Company. In 2022, unused tax losses of KUSD 31,128 expired (2021: KUSD 19,889).

*<u>U.S. R&D tax credits carryforwards</u>*

As described above, Deferred income tax assets from U.S. R&D tax credit carryforwards are recognized to the extent that the realization of the related tax benefit through future taxable profits is probable. On this basis, the Group has not recognized deferred tax assets related to the following state tax credits carryforwards:

---

| | | |
|:---|:---|:---|
| **(In KUSD)**<br>**Years of expiry** |<br>**December 31, 2022** |<br>**December 31, 2021** |
| 2038 | 363 | 352 |
| 2039 | 275 | 275 |
| 2040 | 280 | 280 |
|  | **918** | **907** |

---

These U.S. R&D tax credits, which may be carried forward for up to 7 years, relate entirely to ADCT America.

**21. Other current liabilities**

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Payroll and social charges | 16306 | 16063 |
| R&D costs | 40171 | 20320 |
| GTN sales adjustments <sup>(1)</sup> | 1595 | 1386 |
| Other <sup>(2)</sup> | 14963 | 12728 |
|  | **73035** | **50497** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> See note 7, "Revenue recognition."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> Other includes the short-term component of the Deferred royalty obligation as of December 31, 2022 and 2021. See note 27, "Deferred royalty obligation."

The increase in Other current liabilities is primarily related to the increase in R&D costs due to manufacturing activities to support the ADCT-212 program as well as our continued clinical trials to expand the potential market opportunities for ZYNLONTA in earlier lines of therapy and build our pipeline.

**22. Pension obligations** 

The Swiss pension plan is classified as a defined benefit plan under IFRS. Certain employees of the UK subsidiary are covered by local defined contribution plans. Pension costs for these plans are charged to the consolidated statement of operation when incurred.

------

*<u>Swiss pension plan</u>*

The Company contracted with the Swiss Life Collective BVG Foundation based in Zurich for the provision of occupational benefits. All benefits in accordance with the regulations are reinsured in their entirety with Swiss Life SA within the framework of the corresponding contract. This pension solution fully reinsures the risks of disability, death and longevity with Swiss Life. Swiss Life invests the vested pension capital and provides a 100% capital and interest guarantee. The pension plan is entitled to an annual bonus from Swiss Life comprising the effective savings, risk and cost results.

Although, as is the case with many Swiss pension plans, the amount of ultimate pension benefit is not defined, certain legal obligations of the plan create constructive obligations on the employer to pay further contributions to fund an eventual deficit; this results in the plan nevertheless being accounted for as a defined benefit plan.

In 2022, the guaranteed interest to be credited to employees' savings was 1% for mandatory retirement savings and 0.25% for supplementary retirement savings. The rate for converting mandatory savings to an annuity at age 65 for male employees and age 64 for female employees will decrease from 6.5% in 2022 to 6.2% in 2023 and 5.9% in 2024. The rate for converting supplementary savings to an annuity decreases from 4.712% in 2022 to 4.4855% starting in 2023 for male and decreases from 4.7626% in 2022 to 4.5411% in 2023 for female employees.

The Swiss defined benefit plan scheme is valued by independent actuaries every year using the projected unit credit method. The latest actuarial valuation was carried out as at December 31, 2022.

The net amount recognized on the balance sheet comprises:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Present value of defined benefit obligation for funded plan | 12446 | 14919 |
| Fair value of plan assets | (12446) | (11267) |
| **Deficit of funded plan: liability on the balance sheet** | **—** | **3652** |

---

The movement in the net defined benefit obligation over the year is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **Present value <br>of obligation** | **Fair value of <br>plan assets** | **Total** |
| Defined benefit plan - pension costs: |  |  |  |
| **January 1, 2021** | **11809** | **(8266)** | **3543** |
| Current service cost | 1080 |  | 1080 |
| Impact of plan changes | (651) |  | (651) |
| Interest cost / (income) | 23 | (16) | 7 |
| **Defined benefit plan - pension costs** | 452 | (16) | 436 |
| Employee contributions | 404 | (404) |  |
| Employer contributions |  | (801) | (801) |
| Transfers from joiners' previous plans | 1968 | (1968) |  |
|  | 2372 | (3173) | (801) |
| Exchange differences | (382) | 269 | (113) |
| Remeasurements: |  |  |  |
| Change in financial assumptions | (310) |  | (310) |
| Other actuarial losses | 978 |  | 978 |
| Plan asset gains |  | (81) | (81) |
| **Remeasurements** | 668 | (81) | 587 |
| **December 31, 2021** | **14919** | **(11267)** | **3652** |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **Present value <br>of obligation** | **Fair value of <br>plan assets** | **Total** |
| Defined benefit plan - pension costs: |  |  |  |
| **January 1, 2022** | **14919** | **(11267)** | **3652** |
| Current service cost | 1234 |  | 1234 |
| Impact of plan changes | (171) |  | (171) |
| Interest cost / (income) | 53 | (40) | 13 |
| **Defined benefit plan - pension costs** | **1116** | **(40)** | **1076** |
| Employee contributions | 466 | (466) |  |
| Employer contributions |  | (967) | (967) |
| Transfers from joiners' previous plans | 6 | (6) |  |
|  | **472** | **(1439)** | **(967)** |
| Exchange differences | (223) | 177 | (46) |
| Remeasurements: |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in financial assumptions | (3445) |  | (3445) |
| &nbsp;&nbsp;&nbsp;Other actuarial (gains) losses | (393) | 194 | (199) |
| &nbsp;&nbsp;&nbsp;Plan asset gains |  | (71) | (71) |
| **Remeasurements** | (3838) | 123 | (3715) |
| **December 31, 2022** | **12446** | **(12446)** | **—** |

---

The positive impact of plan changes for 2022 was due to the further decrease of conversion rates for the supplementary retirement savings. Other actuarial gains in 2022 of KUSD 199 were mostly due to the increase in the discount rate. Changes in the financial assumptions in the following tables resulted in a positive balance of the funded status of the defined benefit obligations of KUSD 194. Due to the non-materiality of the amount the Company decided to record the KUSD 194 in other actuarial gains and present a nil balance of defined benefit obligations.

The positive impact of plan changes for 2021 was due to the further decrease of conversion rates for the supplementary retirement savings. Other actuarial losses in 2021 of KUSD 978 were due to increases in the plan participants' vested benefits. Changes in the financial assumptions resulted in a decrease to the defined benefit obligations.

The present value of the defined benefit obligation related to 30 active employees based in Switzerland (2021: 31 active employees).

The principal actuarial assumptions used for accounting purposes are as follows for all periods presented:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Discount rate | 2.30% | 0.35% |
| Interest credited on savings accounts | 2.30% | 0.35% |
| Future salary increases | 1.50% | 1.50% |
| Future pension increases | 0.00% | 0.00% |

---

Assumptions regarding future mortality experience are set based on actuarial advice provided in accordance with published statistics and experience in each territory.

Mortality assumptions for Switzerland are based on the LPP 2020 mortality generational tables for 2022 and 2021. The average life expectancy in years after retirement of a pensioner retiring at age 65 (male) and 64 (female) on the balance sheet date is as follows:

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| Male | 22.70 | 22.57 |
| Female | 25.48 | 25.37 |

---

The sensitivity of the defined benefit obligation and of the service cost to changes in the weighted principal assumption is:

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **2022** | **Increase in <br>assumption** | **Impact on defined <br>benefit obligation and service cost** | **Decrease in <br>assumption** | **Impact on defined <br>benefit obligation and service cost** |
| Discount rate | 0.25% | (4.00)% | (0.25)% | 4.30% |
| Future salary increases | 0.50% | 0.30% | (0.50)% | (0.30)% |
| Interest credited on savings accounts | 0.50% | 2.20% | (0.50)% | (2.10)% |
| Future pension increases | 0.50% | 5.60% | (0.50)% | (5.10)% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **2021** | **Increase in <br>assumption** | **Impact on defined <br>benefit obligation <br>and service cost** | **Decrease in <br>assumption** | **Impact on defined <br>benefit obligation and service cost** |
| Discount rate | 0.25% | (4.90)% | (0.25)% | 5.30% |
| Future salary increases | 0.50% | 0.60% | (0.50)% | (0.60)% |
| Interest credited on savings accounts | 0.50% | 2.70% | (0.50)% | (2.60)% |
| Future pension increases | 0.50% | 6.70% | (0.50)% | (6.10)% |

---

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized within the statement of financial position.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Expected employer contributions to the defined benefit plan for the year ending December 31, 2023 amount to KUSD 853.

The weighted average duration of the defined benefit obligation is 16.9 years (2021: 20.5 years).

*<u>Asset-liability strategy</u>*

The Swiss Life Collective BVG Foundation, to which the pension plan is affiliated, manages its funds in the interests of all members, with due attention to the priorities of liquidity, security and return. The Company's pension plan benefits from the economies of scale and diversification of risk available through this affiliation.

*<u>Investments by asset class</u>*

Investments by asset class are as follows:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **December 31, 2022** | **December 31, 2021** |
| Cash | 793 | 85 |
| Bonds | 6586 | 6320 |
| Shares | 553 | 531 |
| Real estates and mortgages | 3602 | 3457 |
| Alternative investments | 912 | 875 |
|  | **12446** | **11268** |

---

*<u>Defined benefit plan reserves</u>*

The movement in the defined benefit plan reserves (included in "Other reserves") is as follows:

---

| | | |
|:---|:---|:---|
| **(in KUSD)** | **2022** | **2021** |
| January 1 | (3281) | (2694) |
| Remeasurements of defined benefit pension plan | 3715 | (587) |
| **December 31** | **434** | **(3281)** |

---

------

**23. Senior secured term loan facility and warrants**

On August 15, 2022, the Company, ADCT UK and ADCT America entered into the Loan Agreement, pursuant to which the Company may borrow up to USD 175.0 million principal amount of secured term loans, including (i) a First Tranche and (ii) Future Tranches. On August 15, 2022, the Company drew down USD 120.0 million principal amount of term loans under the Loan Agreement. The secured term loans are scheduled to mature on August 15, 2029 and accrue interest at an annual rate of secured overnight financing rate (SOFR) plus 7.50% per annum (with respect to SOFR loans) or a base rate plus 6.50% per annum (with respect to alternative base rate ("ABR") loans) for the first five years of the term loans, and thereafter, at an annual rate of SOFR plus 9.25% (with respect to SOFR loans) or a base rate plus 8.25% (with respect to ABR loans), in each case subject to a 1.00% per annum SOFR floor. The Company has the option to elect for the loans to be either a SOFR loan or ABR loan. The Company has elected the First Tranche of the secured term loan to be a SOFR loan. Interest is paid on the last business day of each quarter.

The Company is obligated to pay certain exit fees upon certain prepayments and repayments of the principal amount of the term loans in an amount ranging from zero to 4.0% of the amount of the loan so paid. In addition, The Company has the right to prepay the term loans at any time subject to certain prepayment premiums applicable until the August 15, 2026. The Loan Agreement also contains certain prepayment provisions, including mandatory prepayments from the proceeds from certain asset sales, casualty events and from issuances or incurrences of debt, which may also be subject to prepayment premiums if made on or prior to August 15, 2026. The obligations under the Loan Agreement are secured by substantially all of the Company's assets and those of certain of the Company's subsidiaries and are guaranteed initially by the Company's subsidiaries in the US and the UK. The Loan Agreement contains customary covenants, including a covenant to maintain a balance at the end of each quarter of at least USD 60.0 million in cash and cash equivalents plus an amount equal to any accounts payable that remain unpaid more than ninety days after the original invoice therefore, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. The Loan Agreement also contains customary events of default, after which the term loan may become due and payable immediately, including payment defaults, material inaccuracy of representations and warranties, covenant defaults (including creation of any liens other than those that are expressly permitted), bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, judgments against the Company and its subsidiaries and change in control.

On August 15, 2022, the Company also issued to the lenders under the Loan Agreement warrants to purchase an aggregate of 527,295 common shares, which warrants have an exercise price of USD 8.30 per share. Each warrant is exercisable, on a cash or a cashless basis, at the option of the holder at any time on or prior to August 15, 2032. The warrants contain customary anti-dilution adjustments and will entitle holders to receive any dividends or other distributions paid on the underlying common shares prior to their expiration on an as-exercised basis.

*Accounting for First Tranche of senior secured term loan*

The Company has accounted for the First Tranche of the senior secured term loans and the warrants described above as one hybrid financial instrument, with the USD 120.0 million draw down separated into two components: a warrant obligation and a loan.

The Company used an independent valuation firm to assist in calculating the fair value of the warrant obligation, using the Black-Scholes option-pricing model. The warrant obligation has been recorded at an initial fair value of USD 4.0 million on August 15, 2022 and is remeasured to fair value at the end of each reporting period. Key inputs for the valuation of the warrant obligation as of August 15, 2022 were as follows:

---

| | |
|:---|:---|
| | **As of**<br>**August 15, 2022** |
| Exercise price in USD | 8.30 |
| Share price in USD  | 10.33 |
| Risk-free interest rate | 2.9% |
| Expected volatility  | 87% |
| Expected term (months) | 60 months |
| Dividend yield |  |
| Black-Scholes value in USD | 7.51 |

---

The loan's initial fair value was recorded at USD 116.0 million on August 15, 2022, representing the residual amount of the USD 120.0 million draw down, after separating out the initial fair value of USD 4.0 million of the warrant obligation. The loan is subsequently measured at its amortized cost.

------

Transaction costs have been allocated to the above two components. Transaction costs associated to the warrant obligation have been charged directly to the consolidated statement of operations, while transaction costs associated to the residual loan have been deducted from the loan. See further illustration in table below:

---

| | | | |
|:---|:---|:---|:---|
| **in KUSD** | **Warrant obligation** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residual loan** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total** |
| Loan Principal | 3957 | 116043 | 120000 |
| Transaction costs | (245) | (7187) | (7432) |
| Carrying value of loan at issuance |  | 108856 |  |

---

*Oak Tree and Owl Rock Warrant Obligations*

During the year ended December 31, 2022, the Company recognized income of KUSD 2,962 as a result of changes in the fair value of the warrant obligations from the issuance date of August 15, 2022. The fair value of the warrant obligations as of December 31, 2022 was KUSD 995. The decrease in fair value of the warrant obligation from August 15, 2022 to December 31, 2022 was primarily due to the decrease in the fair value of the underlying shares during that period, which was recorded directly to Non-operating (expense) income in the consolidated statement of operations. See note 10, "Non-operating (expense) income" for further information.

The Company used an independent valuation firm to assist in calculating the fair value of the warrant obligations, using the Black-Scholes option-pricing model. Key inputs for the valuation of the warrant obligations as of December 31, 2022 were as follows:

---

| | |
|:---|:---|
| | **As of**<br>**December 31, 2022** |
| Exercise price in USD | 8.30 |
| Share price in USD  | 3.84 |
| Risk-free interest rate | 4.0% |
| Expected volatility | 80% |
| Expected term (months) | 55.5 months |
| Dividend yield |  |
| Black-Scholes value in USD | 1.89 |

---

*Senior Secured Term Loan*

As illustrated in the table above, the transaction costs of the residual loan (net of the fair value of warrant obligations) were deducted from the loan to determine the deemed net present value as of August 15, 2022 of all future cash outflows associated with the loan. The implied EIR that would be needed to increase the book value of the loan to cover all future expected outflows, taking into account the deduction of transaction costs from the initial loan balance, and based on a 360-day year for a SOFR loan, was computed at inception at 14.99%. Given the interest rate in the senior secured term loans is variable and dependent upon market factors, the Company will update the EIR at the end of each reporting period for changes in the rate. For the year ended December 31, 2022, the Company recorded interest expense on the senior secured term loan in the amount of KUSD 5,845 which was recorded in Financial expense in the consolidated statement of operations. The EIR at December 31, 2022 was 16.10%.

The amount at which the senior secured term loan is presented as a liability in the consolidated balance sheet represents the net present value of all future cash outflows associated with the loan discounted at the EIR. The net present value of those cash outflows occurring within 12 months of the balance sheet date discounted at the same rate is presented as a short-term liability in the consolidated balance sheet. The remainder of the amount is presented as a long-term liability in the consolidated balance sheet. The carrying value of the senior secured term loan was USD 109.7 million as of December 31, 2022, of which USD 12.5 million and USD 97.2 million represented the short-term and long-term portion of the liability, respectively.

**24. Convertible loans**

On April 24, 2020, the Company entered into a USD 115 million Facility Agreement with Deerfield, pursuant to which Deerfield extended a tranche of USD 65 million of convertible loans on May 19, 2020 upon completion of the Company's initial public offering (the "Deerfield First Tranche") and a tranche of USD 50 million of convertible loans on May 17, 2021 after the receipt of regulatory approval for ZYNLONTA (the "Deerfield Second Tranche").

------

On August 15, 2022, pursuant to an exchange agreement with Deerfield, Deerfield exchanged USD 115.0 million aggregate principal amount of the Company's senior secured convertible notes for warrants to purchase an aggregate of 4,412,840 common shares, an aggregate of 2,390,297 common shares and cash equal to USD 117.3 million.

As a result of the exchange agreement on August 15, 2022, the Company recognized a loss on extinguishment of USD 42.1 million, which primarily consists of the difference between the aggregate principal amount and carrying value of the convertible loans, exit fee, as well as the unpaid interest payments through the maturity date.

*<u>Embedded conversion option derivatives</u>*

Prior to the exchange, the Company accounted for the Facility agreement as a loan and embedded conversion option features. The embedded conversion option derivative was marked-to-market while the loan was measured at its amortized cost at the end of each reporting period.

The following table summarizes the changes in fair value income (expense) and profit or loss activity of the embedded conversion option derivatives during the years ended December 31, 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| **(in KUSD)** | **2022** | **2021** | **2020** |
| Deerfield First Tranche <sup>(1)</sup> | 15556 | 28003 | (23432) |
| Deerfield Second Tranche - prior to FDA approval <sup>(2)</sup> |  | 3454 | (21979) |
| Deerfield Second Tranche - after FDA approval <sup>(1)</sup> | 10094 | 3436 |  |
| **Total** | **25650** | **34893** | **(45411)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> The fair value expense recognized during the year ended December 31, 2022 represents the change in fair value up until the point of exchange on August 15, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> In addition to the changes in fair value, the Company recorded a gain of KUSD 1,816 during the year ended December 31, 2021 with the receipt of the USD 50 million subsequent disbursement, the establishment of the embedded derivative and residual loan associated with the subsequent disbursement and elimination of the derivative immediately prior to FDA approval of ZYNLONTA.

The increases (decreases) in fair values of the embedded derivatives are primarily due to increases (decreases) in the fair value of the underlying shares during the respective periods. These amounts were charged directly to the consolidated statements of operations. See note 10, "Non-operating (expense) income" for further information.

The fair value of the embedded derivative associated with the Deerfield First Tranche was KUSD 7,670 at the time of exchange on August 15, 2022 and KUSD 23,226 on December 31, 2021. The fair value of the embedded derivative associated with the Deerfield Second Tranche was KUSD 4,627 at the time of exchange on August 15, 2022 and KUSD 14,721 as of December 31, 2021.

The Company used an independent valuation firm to assist in calculating the fair value of the Deerfield First Tranche and Deerfield Second Tranche of the embedded conversion option derivatives, which is based on the mean of values derived from application of the Hull and Goldman Sachs convertible bond pricing models. Key inputs for the valuations as of August 15, 2022 and December 31, 2021 were as follows:

*Deerfield First Tranche*

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **August 15, 2022** | **December 31, 2021** |
| Exercise price at 130% of the IPO price of 19.00, in USD | 24.70 | 24.70 |
| Forced conversion price, in USD | 67.93 | 67.93 |
| Share price in USD | 10.33 | 20.20 |
| Risk-free interest rate | 3.2% | 1.0% |
| Expected volatility | 85% | 77% |
| Expected term (months) | 32.5 months | 40 months |
| Dividend yield |  |  |
| Recovery rate | 5% | 5% |
| Implied bond yield | 12.0% | 8.8% |

---

------

*Deerfield Second Tranche*

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **August 15, 2022** | **December 31, 2021** |
| Exercise price in USD | 28.07 | 28.07 |
| Forced conversion price, in USD | 77.19 | 77.19 |
| Share price in USD | 10.33 | 20.20 |
| Risk-free interest rate | 3.2% | 1.0% |
| Expected volatility | 85% | 77% |
| Expected term (months) | 32.5 months | 40 months |
| Dividend yield |  |  |
| Recovery rate | 5% | 5% |
| Implied bond yield | 12.0% | 8.8% |

---

*<u>Residual convertible loan</u>*

The following table summarizes the interest expense recorded on the convertible loan for the years ended December 31, 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| **(in KUSD)** | **2022** | **2021** | **2020** |
| Deerfield First Tranche | 5664 | 8389 | 4756 |
| Deerfield Second Tranche | 2020 | 2029 |  |
| **Total** | **7684** | **10418** | **4756** |

---

**25. Deerfield warrants**

Pursuant to the exchange agreement with Deerfield entered into on August 15, 2022, the Company issued warrants to purchase an aggregate of 4,412,840 common shares. The warrants consist of warrants to purchase an aggregate of 2,631,578 common shares at an exercise price of USD 24.70 per share and warrants to purchase an aggregate of 1,781,262 common shares at an exercise price of USD 28.07 per share. Each warrant is exercisable, on a cash or a cashless basis, at the option of the holder, at any time on or prior to May 19, 2025. The warrants contain customary anti-dilution adjustments and entitle holders to receive any dividends or other distributions paid on the underlying common shares prior to their expiration on an as-exercised basis. Each holder also may require the Company to repurchase the warrants for their Black Scholes-based fair value in connection with certain transformative transactions or change of control of the Company that occur prior to their expiration.

The terms of the warrants are reflective of the terms of the embedded conversion option features of the Deerfield Facility Agreement prior to the Exchange Agreement. As a result, the fair value of the warrants was determined to approximate the fair value of the existing embedded conversion option features immediately prior to the consummation of the Exchange Agreement. As such, the warrant obligation was recorded at an initial fair value of KUSD 12,297 on August 15, 2022. Subsequent to issuance, the warrant obligation is remeasured to fair value at the end of each reporting period.

During the year ended December 31, 2022, the Company recognized income of KUSD 11,504 as a result of changes in the fair value of the warrant obligation. The fair value of the warrant obligation as of December 31, 2022 was KUSD 793. The decrease in fair value of the warrant obligation from August 15, 2022 to December 31, 2022 was primarily due to the decrease in the fair value of the underlying shares during that period. These amounts were recorded to Non-operating (expense) income in the consolidated statement of operations. See note 10, "Non-operating (expense) income" for further information.

------

The Company used an independent valuation firm to assist in calculating the fair value of the Deerfield warrant obligation, using the Black-Scholes option-pricing model. Key inputs for the valuation of the warrant obligation as of December 31, 2022 were as follows:

---

| | |
|:---|:---|
| | **As of**<br>**December 31, 2022** |
| Exercise price in USD | 24.70 and 28.07 |
| Share price in USD  | 3.84 |
| Risk-free interest rate | 4.3% |
| Expected volatility | 70% |
| Expected term (months) | 28.7 months |
| Dividend yield |  |
| Black-Scholes value in USD | 0.20 and 0.16 |

---

------

**26. Share-based compensation expense**

Share data have been revised to give effect to the share consolidation explained in note 2 (iv), "Share consolidation."

*<u>Share Purchase Plan 2013 and Share Purchase Plan 2016</u>*

Under the terms of the 2013 and 2016 promissory notes issued in connection with the Share Purchase Plan 2013 and Share Purchase Plan 2016, in the case of an IPO the relevant plan participants were required to repay the outstanding amounts under the promissory notes prior to the IPO by delivering a number of shares of equivalent value to cover the amount to be repaid. In anticipation of the IPO, each of the plan participants holding promissory notes entered into loan settlement agreements with the Company dated as of April 15, 2020 pursuant to which they repaid all amounts outstanding under the promissory notes, including accrued interest, by delivering a number of shares of equivalent value to cover the amounts outstanding under the promissory notes.

After consideration of all relevant factors, the Board of Directors determined the value of such shares delivered pursuant to the loan settlement agreements as of the settlement date to be USD 18.75 per share, resulting in the delivery of an aggregate of 597,774 common shares by all plan participants for the settlement of the promissory notes. These shares were held by the Company as treasury shares.

These transactions resulted in the termination of both plans on May 15, 2020. All compensation expense relating to the ADC Therapeutics SA 2013 Share Purchase Plan (the "Share Purchase Plan 2013") was recognized in prior periods. During the year ended December 31, 2020, unrecognized expense relating to the Share Purchase Plan 2016 amounting to KUSD 6,425 was charged to the consolidated statement of operation with a corresponding increase to Other reserves within equity on the consolidated balance sheet on completion of these transactions. The amounts of expense for all awards recognized for services received during the year ended December 31, 2020 was KUSD 7,417 (including the KUSD 6,425 discussed above). There was no expense recognized for the Share Purchase Plan 2013 for the years ended December 31, 2022 and 2021.

*<u>Incentive Plan 2014</u>*

All existing awards under the Incentive Plan 2014 vested and were settled in shares upon the completion of the IPO. The Company calculated for each participant the gain arising from the difference between the exercise price and the USD 19.00 IPO price, undertook to settle in cash on behalf of the participant any associated tax and social charges liability, and transferred to the participant the remaining balance from treasury shares, valued at USD 19.00 per share. A total of 356,144 common shares were transferred to participants and an amount of KUSD 5,343 was withheld for tax and social charges during fiscal year 2020.

For participants whose awards had an exercise price greater than USD 19.00 — i.e., were "out-of-the-money" — the Company made an equal number of new awards under the Equity Incentive Plan 2019 (see below) with an exercise price of USD 19.00 and with a vesting period of only three years instead of the usual four years. These new awards have been accounted for as a modification of the previous awards under the Incentive Plan 2014. Accordingly, the original compensation expense calculated for the old awards that were "out-of-the-money" will continue to be recognized over their remaining vesting period while the expense to be recognized for the new awards under the 2019 Equity Incentive Plan will be limited to the incremental fair value of the new awards over the fair value, as of May 15, 2020, of the old awards.

The amounts of expense for all awards recognized for services received during the period ended December 31, 2020 was KUSD 361. There was no expense recognized for the periods ended December 31, 2022 and 2021.

*<u>2019 Equity Incentive Plan</u>*

In November 2019, the Company adopted the 2019 Equity Incentive Plan. Under the 2019 Equity Incentive Plan, the Company may at its discretion grant to plan participants, such as directors, certain employees and service providers, awards in the form of restricted shares and restricted share units ("RSUs"), share options, share appreciation rights, performance awards and other share-based awards. The Company has reserved 16,027,550 common shares for future issuance under the 2019 Equity Incentive Plan (including share-based equity awards granted to date less awards forfeited), which includes an additional 6,000,000 common shares approved by the Company's board of directors on March 29, 2021 and an additional 2,207,550 common shares approved by the Company's board of directors on November 16, 2022. As of December 31, 2022, the Company has 2,437,884 common shares available for the future issuance of share-based equity awards. On March 7, 2022, the Company issued its annual equity award, which was approved by the Compensation Committee of the Board of Directors and consisted of 1,867,076 share options and 570,340 RSUs. On May 11, 2022, the Company issued a special retention award to select employees, which was approved by the Compensation Committee of the Board of Directors and consisted of 1,298,700 RSU's. As of December 31, 2022, the Company has only granted share options, RSU's and performance awards under the Equity Incentive Plan 2019.

------

As of December 31, 2022 and 2021, the cumulative amount recorded as a net increase to Other Reserves within equity on the consolidated balance sheet in respect of the 2019 Equity Incentive Plan was KUSD 145,102 and KUSD 95,978. An amount of KUSD 1,315 and KUSD 75 was withheld for tax charges during fiscal years 2022 and 2021, respectively. The amounts of expense for all awards recognized for services received during the years ended December 31, 2022, 2021 and 2020 were KUSD 50,439, KUSD 60,555 and KUSD 35,150, respectively.

*Share Options*

Pursuant to the 2019 Equity Incentive Plan, the Company may grant share options to its directors, certain employees and service providers working for the benefit of the Company at the time. The exercise price per share option is set by the Company at the fair market value of the underlying common shares on the date of grant, as determined by the Company, which is generally the closing share price of the Company's common shares traded on the NYSE. The awards generally vest 25% on the first anniversary of the date of grant, and thereafter evenly on a monthly basis over the subsequent three years. The contractual term of each share option award granted is ten years. Under the grant, the options may be settled only in common shares of the Company. Therefore, the grants of share options under the 2019 Equity Incentive Plan have been accounted for as equity-settled under IFRS 2. As such, the Company records a charge for the vested portion of award grants and for partially earned but non-vested portions of award grants. This results in a front-loaded charge to the Company's consolidated statement of operation and a corresponding increase to Other Reserves within equity on the consolidated balance sheet.

The expense recognized for services received during the years ended December 31, 2022, 2021 and 2020 is KUSD 31,849, KUSD 50,647 and KUSD 33,355, respectively.

Movements in the number of awards outstanding and their related weighted average strike prices are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
| | **Average** <br>**strike** <br>**price in** <br>**USD** <br>**per share** | **Number of** <br>**awards** | **Average** <br>**strike** <br>**price in** <br>**USD** <br>**per share** | **Number of** <br>**awards** | **Average** <br>**strike** <br>**price in** <br>**USD** <br>**per share** | **Number of** <br>**awards** |
| At the beginning of the year | 27.23 | 6640200 | 26.45 | 4276973 | 18.75 | 1020434 |
| Granted | 9.63 | 5754786 | 28.22 | 2572008 | 28.62 | 3347766 |
| Forfeited | 23.27 | (1358167) | 24.82 | (165724) | 19.83 | (88332) |
| Expired | 27.53 | (281325) | 18.75 | (1675) | **—** | **—** |
| Exercised |  |  | 18.81 | (41382) | 18.75 | (2895) |
| **At the end of the year** | **18.30** | **10755494** | **27.23** | **6640200** | **26.45** | **4276973** |
| Weighted average remaining contractual life of awards outstanding at end of period | 8.46 |  |  | 8.70 |  | 9.29 |

---

The option awards granted during the year ended December 31, 2020 include 388,333 awards that were made to compensate holders of "out-of-the-money" awards under the Incentive Plan 2014 that expired on May 15, 2020. As of December 31, 2022, 3,760,408 awards are vested and exercisable out of the total outstanding awards of 10,755,494 common shares. As of December 31, 2022, the weighted average strike price and weighted average remaining life for vested and exercisable awards is USD 18.77 and 7.29 years, respectively. Awards outstanding as of December 31, 2022 have expiration dates through 2032. The weighted average grant date fair value of awards granted during the year ended December 31, 2022 was USD 6.24 per award (2021: USD 19.76 and 2020: USD 21.27).

The fair values of the options granted after the IPO were determined on the date of the grant using the Black-Scholes option-pricing model. Prior to the IPO, the fair value of the options granted were determined using an adjusted form of the Black-Scholes option pricing model. The Company has used an independent valuation firm to assist in calculating the fair value of the award grants per participant. See note 6, "Critical accounting estimates and judgements."

------

The fair values of the options granted during the years ended December 31, 2022, 2021 and 2020 were determined on the date of grant using the following assumptions:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31, 2022** | **Year ended December 31, 2021** | **Year ended December 31, 2020** |
| Share price, in USD | 3.04-19.69 | 19.94-32.22 | 15.95-48.77 |
| Strike price, in USD | 3.04-19.69 | 19.94-32.22 | 18.75-48.77 |
| Expected volatility, in % | 70-80 | 70-85  | 80-206 |
| Award life, in years | 6.08  | 5.50-6.08 | 5.02-6.08 |
| Expected dividends |  |  |  |
| Risk-free interest rate, in % | 1.46-4.13 | 0.51-1.33 | 0.29-0.70 |

---

The expected volatility was based on the Company's historical volatility and selected volatility determined by median values observed among other comparable public companies. The expected volatility utilized after FDA approval of ZYNLONTA decreased from those used prior to FDA approval due to a change in the peer group. Prior to FDA approval, the Company utilized a peer group primarily comprised of clinical-stage companies. Upon receipt of FDA approval, the Company updated the peer group to primarily comprise of commercial-stage companies, which lowered the expected volatility assumption.

The award life for options granted was based on the time interval between the date of grant and the date during the ten-year life after which, when making the grant, the Company expected on average that participants would exercise their options.

*RSUs*

Pursuant to the 2019 Equity Incentive Plan, the Company may grant RSUs to its directors, certain employees and service providers working for the benefit of the Company at the time. The awards generally vest annually over a period of three years commencing on the first anniversary of the date of grant. The special retention awards discussed above vest 50% and the remainder at the six-month and one year anniversaries, respectively, of the date of grant. The RSUs may be settled only in common shares of the Company. Therefore, the grant of RSUs under the 2019 Equity Incentive Plan have been accounted for as equity-settled under IFRS 2. As such, the Company records a charge for the vested portion of award grants and for partially earned but non-vested portions of award grants. This results in a front-loaded charge to the Company's consolidated statement of operation and a corresponding increase to Other Reserves within equity on the consolidated balance sheet. The expense recognized for services received during the years ended December 31, 2022, 2021 and 2020 is KUSD 18,590, KUSD 9,908 and KUSD 1,795, respectively.

---

| | | |
|:---|:---|:---|
| | **Number of awards** | **Weighted average grant date fair value** |
| **December 31, 2020** | 149984 | 46.50 |
| Granted | 574143 | 28.17 |
| Vested | (51828) | 45.56 |
| Forfeited | (9244) | 28.70 |
| **December 31, 2021** | 663055 | 30.95 |
| Granted | 2139831 | 9.34 |
| Vested | (995629) | 15.12 |
| Forfeited | (221380) | 20.00 |
| **December 31, 2022** | **1585877** | **13.26** |

---

*<u>2022 Employee Stock Purchase Plan</u>*

In June 2022, the Company adopted the 2022 ESPP, which was approved by shareholders at the Company's 2022 Annual General Meeting. The Company has 782,700 common shares reserved and available for the future issuance. The number of shares available for grant and issuance under the 2022 ESPP will increase on January 1<sup>st</sup> of each of the first ten calendar years during the term of the 2022 ESPP by the number of shares equal to 1% of the shares outstanding as of the immediately preceding December 31<sup>st</sup>, or lesser number as may be determined by the Board. The aggregate number of shares that may be issued under the 2022 ESPP Plan is equal to 1% of the ordinary share capital of the Company.

The 2022 ESPP allows eligible employees to purchase designated shares of the Company's common shares at a discount, over a series of offering periods through accumulated payroll deductions. No offering period may be longer than 27 months. The purchase price for shares purchased under the 2022 ESPP during any given purchase period will be 85% of the lesser of the market price of the Company's common shares on (i) the offering date or (ii) the purchase date.

------

The grant date of the initial offering period was July 18, 2022, and that offering period ended on December 31, 2022.

The Company recognizes share-based compensation expense related to purchase rights granted pursuant to its 2022 ESPP on a straight-line basis over the requisite service period, which is generally a six-month period. The fair value of the purchase rights granted were determined on the date of the grant using the Black-Scholes option-pricing model. The Company used an independent valuation firm to assist in calculating the fair value of the purchase rights.

The expense recognized for services received during the year ended December 31, 2022 was KUSD 198. As of December 31, 2022, the Company recorded a liability of KUSD 450 related to the accumulated payroll deductions. This amount is included within Accrued expenses in other current liabilities in the consolidated balance sheet.

*<u>Share-based Compensation Reserves</u>*

The cumulative reserve position in the Share-based Compensation Reserves (included in Other reserves within equity) is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **2022** | **2021** | **2020** |
| Incentive Plan 2014 |  |  | 361 |
| Share Purchase Plan 2016 |  |  | 7417 |
| 2019 Equity Incentive Plan - Options | 31849 | 50647 | 33355 |
| 2019 Equity Incentive Plan - RSUs | 18590 | 9908 | 1795 |
| ESPP Expense | 198 |  |  |
| Tax and social charge deductions - Incentive Plan 2019 | (1315) | (75) |  |
| Tax and social charge deductions - Incentive Plan 2014 |  |  | (5343) |
| **December 31,** | **49322** | **60480** | **37585** |

---

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**27. Deferred royalty obligation**

*<u>Royalty purchase agreement</u>*

On August 25, 2021, the Company entered into a royalty purchase agreement with certain entities managed by HCR for up to USD 325.0 million. Under the terms of the agreement, the Company received gross proceeds of USD 225.0 million upon closing (the "First Investment Amount") and is eligible to receive an additional USD 75.0 million upon the first commercial sale of ZYNLONTA in the United Kingdom or any European Union country (the "Second Investment Amount") and together with the First Investment Amount, the "Investment Amount"). Under the agreement, the Company is obligated to pay to HCR (i) a 7% royalty on the worldwide (excluding China, Hong Kong, Macau, Taiwan, Singapore and South Korea) net sales of ZYNLONTA and any product that contains ZYNLONTA and on any upfront or milestone payments the Company receives from licenses that it grants to commercialize ZYNLONTA or any product that contains ZYNLONTA in any region other than China, Hong Kong, Macau, Taiwan, Singapore and South Korea, (ii) a 7% royalty on the worldwide net sales of Cami and any product that contains Cami and on any upfront or milestone payments the Company receives from licenses that it grants to commercialize Cami or any product that contains Cami in the United States and Europe, and (iii) outside the United States and Europe, a 7% share of any upfront or milestone payments derived from licenses that the Company grants to commercialize Cami or any product that contains Cami and, in lieu of the royalty on net sales under such licenses, a mid-teen percentage share of the net royalty the Company receives from such licenses. These royalty rates are subject to potential upward adjustment, up to a maximum of 10%, based on performance tests in 2026 and 2027. The 7% royalty rates described above are subject to adjustment to a potential high-single-digit percentage royalty rate after September 30, 2026 and/or a 10% royalty rate after September 30, 2027, if the aggregate net sales and license revenue subject to royalty obligations in the preceding twelve months do not exceed certain mid-nine-digit milestones by such dates. The Company's aggregate royalty obligations are capped at 2.50 times the amount paid by HCR under the agreement (USD 562.5 million as of December 31, 2022 and December 31, 2021), or at 2.25 times the amount paid by HCR under the agreement (USD 506.3 million as of December 31, 2022 and December 31, 2021) if HCR receives royalty payments exceeding a mid-nine-digit amount on or prior to March 31, 2029 (the "Royalty Cap"). Once the Royalty Cap is reached, the royalty purchase agreement will terminate.

Upon the occurrence of a change in control event, the Company is obligated to pay HCR an amount equal to the Royalty Cap, less any amounts the Company previously paid to HCR. If the change in control event occurs prior to the 36-month anniversary of the closing of the royalty purchase agreement, the Company is obligated to pay HCR an amount equal to 2.0 times the amount paid by HCR, less any amounts the Company previously paid to HCR pursuant to the agreement (USD 438.8 million and USD 450.0 million as of December 31, 2022 and December 31, 2021, respectively). In addition, the Company retains the right, at any time after the 27-month anniversary of the closing of the royalty purchase agreement, to terminate the remaining royalty obligations under the agreement by paying HCR an amount equal to the Royalty Cap, less any amounts the Company previously paid to HCR pursuant to the agreement (such amount, the "Buyout Amount"), provided that HCR may instead elect to receive 50% of the Buyout Amount and continue to receive 50% of the royalty payments under the agreement but with the Royalty Cap reduced to reflect the Company's payment of 50% of the Buyout Amount. During the year ended December 31, 2021, the Company received gross proceeds of USD 225.0 million before deducting transaction costs of USD 7.0 million, all of which were paid during 2021, which resulted in net proceeds of USD 218.0 million. During December 31, 2022, no additional proceeds were received.

*<u>Accounting for royalty purchase agreement</u>*

The Company has evaluated the terms of the royalty purchase agreement and concluded that the features of the Investment Amount are similar to those of a debt instrument. Accordingly, the Company has accounted for the transaction as a short-term and long-term debt obligation which are recorded within Other current liabilities and Deferred royalty obligation, long-term, respectively, within the Company's consolidated balance sheet. Interest expense is recorded in Financial expense within the Company's consolidated statement of operation. The table below provides a rollforward of the Company's debt obligation relating to the royalty purchase agreement.

------

---

| | |
|:---|:---|
| **(in KUSD)** | |
| **Liability balance at January 1, 2021** | **—** |
| Proceeds from the sale of future royalties | 225000 |
| Less: transaction costs | 6998 |
| Less: royalty payments | 213 |
| Plus: interest expense | 6752 |
| Plus: cumulative catch-up adjustment, Financial expense | 936 |
| **Liability balance at December 31, 2021** | **225477** |
| Less: royalty payments | 10998 |
| Plus: interest expense | 23200 |
| Less: cumulative catch-up adjustment, Financial income | 15402 |
| **Liability balance at December 31, 2022** | **222277** |

---

The Company recorded a liability relating to the initial gross proceeds received less transaction costs. The Company will record additional liabilities upon the receipt of eligible amounts when such contingent events occur. To determine the accretion of the liability related to the deferred royalty obligation, the Company is required to estimate the total amount of future royalty payments and estimated timing of such payment to HCR based on the Company's revenue projections. Based on the Company's initial revenue projections, the Company used an independent valuation firm to assist in determining the total amount of future royalty payments and estimated timing of such payment to HCR using an option pricing Monte Carlo simulation model. The amount ultimately received by the Company will be accreted to the total amount of the royalty payments necessary to extinguish the Company's obligation under the agreement, which will be recorded as interest expense over the life of the royalty purchase agreement. The estimate of this total interest expense resulted in an EIR of 10%. As royalty payments are made to HCR, the balance of the debt obligation will be effectively repaid over the life of the royalty purchase agreement. During the year ended December 31, 2022 and December 31, 2021, the Company made royalty payments to HCR of KUSD 10,998 and KUSD 213, respectively.

Based on the Company's periodic review, the exact amount and timing of repayment is likely to be different each reporting period as compared to those estimated based on the Company's initial revenue projections. A significant increase or decrease in actual net sales of ZYNLONTA compared to the Company's revenue projections, and regulatory approval and commercialization of Cami, as well as ZYNLONTA in other indications as well as licensing revenue could change the royalty rate and royalty cap due to HCR, which could materially impact the debt obligation as well as interest expense associated with the royalty purchase agreement. Also, the Company's total obligation to HCR can vary depending on the achievement of the sales milestones as well as the timing of a change in control event. The Company will periodically assess the expected payments to HCR based on its underlying revenue projections and to the extent the amount or timing of such payments is materially different than its initial estimates it will record a cumulative catch-up adjustment.

The Company recorded a total cumulative catch-up adjustment of KUSD 15,402 recorded as Financial income for the year ended December 31, 2022. The total cumulative catch-up adjustment was based on revised revenue forecasts used in the valuation model, which revisions were primarily attributable to updates made for the Company's 2022 strategic planning decisions, including updated development plans. Under the cumulative catch-up method, the EIR is not revised when actual or estimated net sales differ from those estimated as of the inception of the debt obligation. Instead, the carrying amount of the debt obligation is adjusted to an amount equal to the present value of the estimated remaining future payments, discounted by using the original EIR, 10%, as of the date on which the estimate changes.

**28. Share capital**

Share data has been revised to give effect to the share consolidation as explained in note 2 (iv), "Share consolidation."

On September 5, 2022, the Company issued 3,123,865 common shares to ADCT America pursuant to a share subscription agreement and immediately repurchased these shares as treasury shares at par value. During the fourth quarter of 2022, the Company issued 7,648,081 common shares to ADCT America pursuant to a subscription agreement and immediately repurchased these shares as treasury shares at par value to be used in connection with the ATM Facility.

On August 15, 2022, the Company entered into a share purchase agreement with the Purchasers, pursuant to which, on September 6, 2022, the Company issued and sold to the purchasers an aggregate of 733,568 common shares at USD 8.52 per share. The shares were issued from the Company's treasury shares at par value, which arose from the Share Subscription Agreement. See note 2, "Basis of Preparation." The transaction was recorded as a USD 6.1 million net increase to share premium for the issuance of the common shares, net of transaction costs accrued and paid, and an increase in cash and cash equivalents.

------

The Company also recorded a USD 19.6 million non-cash net increase to share premium for the issuance of the 2,390,297 common shares to Deerfield in connection with the exchange of the senior secured convertible notes. The shares were issued from the Company's treasury shares at par value, which arose from the Share Subscription Agreement. See note 24, "Convertible loans" and note 2, "Basis of Preparation" for further information on this transaction and Share Subscription Agreement, respectively.

The movements in the Company's share capital, share premium and treasury shares accounts for the years ended December 31, 2022, 2021 and 2020 are set out in the following table:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Issued share capital** | **Share premium** | **Treasury shares** | **Increase / (Decrease) in net assets** | **Price per share** | **Issued share capital** | **Treasury shares** | **Outstanding share capital** |
| | | **In KUSD** | **In KUSD** | **In KUSD** | **In KUSD** | | **Number of shares issued** | **Number of shares (held or received) / delivered** | **Number of shares outstanding** |
| **Balance at December 31, 2019** |  | **4361** | **549922** | **(100)** | **554183** |  | **53337500** | **(1240540)** | **52096960** |
| April 15, 2020 | Shares surrendered by Share Purchase Plan 2013 and Share Purchase Plan 2016 participants to settle share purchase plan promissory notes |  | 11208 | (11208) |  | USD 18.75 |  | (597774) | (597774) |
| April 16, 2020 | Issuance of shares per shareholder's agreement addendum through capitalization of reserves | 393 | (393) |  |  | CHF 0.008 | 4777996 |  | 4777996 |
| April 24, 2020 | Elimination of fractional holdings |  |  |  |  | CHF 0.008 |  | 51 | 51 |
| May 19, 2020 | Issuance of shares to be held as treasury | 34 |  | (34) |  | CHF 0.008 | 408873 | (408873) |  |
| May 19, 2020 | Grant of shares to settle Incentive Plan 2014 awards, net |  | (29) | 29 |  | CHF 0.008 |  | 356144 | 356144 |
| May 19, 2020 | Issuance of shares at IPO | 1007 | 231661 |  | 232668 | USD 19.00 | 12245631 |  | 12245631 |
| May 19, 2020 | Sale of shares under greenshoe option |  | 23591 | 11309 | 34900 | USD 19.00 |  | 1836844 | 1836844 |
| May 19, 2020 | Transaction costs, IPO and greenshoe option |  | (23355) |  | (23355) |  |  |  |  |
| September 28, 2020 | Issuance of shares at follow-on offering | 519 | 203481 |  | 204000 | USD 34.00 | 6000000 |  | 6000000 |
| September 28, 2020 | Transaction costs, follow-on offering |  | (15084) |  | (15084) |  |  |  |  |
| September 30, 2020 | Other |  |  |  |  | CHF 0.08 |  | 2796 | 2796 |
| December 31, 2020 | Shares issued for exercise of option awards |  | 54 |  | 54 | CHF 0.08 |  | 2895 | 2895 |
| **Movements during the year ended December 31, 2020** |  | **1953** | **431134** | **96** | **433183** |  | **23432500** | **1192083** | **24624583** |
| Balances reported at December 31, 2019 |  | 4361 | 549922 | (100) | 554183 |  | 53337500 | (1240540) | 52096960 |
| **Balance at December 31, 2020** |  | **6314** | **981056** | **(4)** | **987366** |  | **76770000** | **(48457)** | **76721543** |
| April 1, 2021 | Issuance of shares to be held as treasury | 131 |  | (131) |  | CHF 0.008  | 1500000 | (1500000) |  |
| January 1, 2021 - December 31, 2021 | Exercise of options and vestings of RSUs |  | 771 | 7 | 778 |  |  | 88935 | 88935 |
| **Movements during the year ended December 31, 2021** |  | **131** | **771** | **(124)** | **778** |  | **1500000** | **(1411065)** | **88935** |
| Balances reported at December 31, 2020 |  | 6314 | 981056 | (4) | 987366 |  | 76770000 | (48457) | 76721543 |
| **Balance at December 31, 2021** |  | **6445** | **981827** | **(128)** | **988144** |  | **78270000** | **(1459522)** | **76810478** |

---

------

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| August 15, 2022 | Issuance of shares, Deerfield exchange agreement, net of transaction costs |  | 19640 | 194 | 19834 | CHF 0.08 |  | 2390297 | 2390297 |
| September 05, 2022 | Issuance of shares to be held as treasury shares | 254 |  | (254) |  | CHF 0.08 | 3123865 | (3123865) |  |
| September 06, 2022 | Issuance of shares, share purchase agreement, net of transaction costs |  | 6070 | 60 | 6130 | CHF 0.08 |  | 733568 | 733568 |
| January 1, 2022 - December 31, 2022 | Vesting of RSUs |  | (62) | 62 |  |  |  | 708184 | 708184 |
| November 01, 2022 | Issuance of shares to be held as treasury, ATM Facility | 613 | (23) | (613) | (23) | CHF 0.08 | 7648081 | (7648081) |  |
| **Movements during the year ended December 31, 2022** |  | 867 | 25625 | (551) | 25941 |  | 10771946 | (6939897) | 3832049 |
| Balances reported at December 31, 2021 |  | 6445 | 981827 | (128) | 988144 |  | 78270000 | (1459522) | 76810478 |
| **Balance at December 31, 2022** |  | **7312** | **1007452** | **(679)** | **1014085** |  | **89041946** | **(8399419)** | **80642527** |

---

*<u>Authorized Capital</u>*

The Board of Directors is authorized to increase the share capital at any time until June 9, 2023, by a maximum amount of CHF 2,460,268, by issuing a maximum of 30,753,351 common shares, fully paid up, with a par value of CHF 0.08 each. An increase of the share capital in partial amounts is permissible.

*<u>Conditional Share Capital</u>*

*Conditional Share Capital for Financing Acquisitions and Other Purposes*

The Company's nominal share capital may be increased, including to prevent takeovers and changes in control, by a maximum aggregate amount of CHF 1,432,776 through the issuance of not more than 17,909,703 common shares, which would have to be fully paid-in, each with a par value of CHF 0.08 per share, by the exercise of option and conversion rights granted in connection with warrants, convertible bonds or similar instruments of the Company or one of its subsidiaries. Shareholders will not have pre-emptive subscription rights in such circumstances, but may have advance subscription rights to subscribe for such warrants, convertible bonds or similar instruments. The holders of warrants, convertible bonds or similar instruments are entitled to the new shares upon the occurrence of the applicable conversion feature.

*Conditional Share Capital for Equity Incentive Plans*

*<u>Dividend</u>* 

The Company did not declare a dividend during fiscal years 2022, 2021 or 2020.

------

**29. Commitments**

The Company has contractual obligations as follows:

*<u>Collaborations and co-operations with development partners</u>*

The Company has entered into various collaborations with development partners, including in-licensing and manufacturing agreements. These agreements provide for the Company to make potential future milestone and royalty payments that are conditional on success, and that are spread over various stages of development and commercialization, including achieving preclinical proof of concept, filing an investigational new drug ("IND") application, commencing or completing multiple clinical development stages, obtaining regulatory approval in multiple countries, and achieving various levels of commercial sales. Due to the nature of these arrangements, the future potential payments related to the attainment of the specified milestones are inherently uncertain, and accordingly, no amounts have been recorded for these future potential payments in the Company's consolidated balance sheet as of December 31, 2022 and 2021. As of December 31, 2022, the aggregate amount of such potential milestone payments, under all such collaboration agreements, was KUSD 434,313 (2021: KUSD 446,575). These milestone payments relate to product candidates in the following phases:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in KUSD):** | | | | |
| **R&D Phase** |<br>**Development** |<br>**Regulatory** |<br>**Sales-based** |<br>**Total** |
| Pre-clinical | 54861 | 20500 | 188655 | 264016 |
| Phase I | 40559 | 19150 | 103900 | 163609 |
| Phase II | 6688 |  |  | 6688 |
| **December 31, 2022** | **102108** | **39650** | **292555** | **434313** |
| **R&D Phase** | **Development** | **Regulatory** | **Sales-based** | **Total** |
| Pre-clinical | 55111 | 25000 | 192055 | 272166 |
| Phase I | 41225 | 19150 | 103900 | 164275 |
| Phase II | 10134 |  |  | 10134 |
| **December 31, 2021** | **106470** | **44150** | **295955** | **446575** |

---

The net decrease in the aggregate milestone payments from December 31, 2021 primarily relates to amendments entered into on the Company's existing agreements as well as pre-clinical and Phase I milestones achieved in fiscal year 2022. See note 17, "Intangible assets" for further details.

As of December 31, 2022, the Company had one candidate, CAMI, evaluated in a phase II clinical trial. Cami is the subject of a collaboration and license agreement with Genmab A/S ("Genmab"), under which there are no upfront or future milestone payments payable and no revenue receivable. On October 30, 2020, the Company announced that it amended its existing collaboration and license agreement with Genmab for the continued development and commercialization of Cami. Under the terms of the amended and restated license agreement, the parties have agreed to eliminate the defined divestment process which was agreed in 2013 and that envisaged, among other things, offering the opportunity for third parties to continue the development and commercialization of Cami. The parties have also agreed, among other things, that Genmab will convert its economic interest in Cami into a mid-to-high single-digit tiered royalty on net sales. Cami is subject to manufacturing agreements under which payment of the amounts indicated under Phase II above could become payable upon the achievement of certain milestones, none of which were achieved as of December 31, 2022.

A milestone associated with a collaboration agreement was achieved during December 2020, which the Company recorded as an R&D expense of USD 5.0 million within the consolidated statement of operation for the year ended December 31, 2020. The milestone continued to be recorded as an accrued expense on the consolidated balance sheet as of December 31, 2022 and December 31, 2021.

**30. Contingent liabilities**

The Group has no contingent liabilities in respect of legal claims arising in the ordinary course of business. There are no material legal proceedings to which the Company is a party.

------

**31. Related parties**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. The Company has identified the following related parties and related transactions.

A.T. Holdings II Sàrl ("AT Holdings II") is a shareholder in the Company. AT Holdings II is in turn ultimately entirely owned by Auven Therapeutics Holdings, L.P. ("ATH"), a limited partnership registered in the British Virgin Islands. ATH's General Partner is Auven Therapeutics General L.P., which itself is a limited partnership whose General Partner is Auven Therapeutics GP Ltd. The manager of ATH is Auven Therapeutics Management L.L.L.P. ("ATM").

Based on the Company's contribution and equity interest in Overland ADCT BioPharma, certain of the Company's employees serve on its board of directors. As a result, Overland ADCT BioPharma is considered a related party.

*<u>Services provided by the Company</u>*

The Company provides certain administrative services to three subsidiaries of ATH and provides Overland ADCT BioPharma clinical supply for use in trials and supply for early access programs, the amounts of which have been deemed immaterial.

As contemplated by the license agreement with Overland ADCT BioPharma, Overland ADCT BioPharma has elected to participate in certain of the Company's global clinical trials, in exchange for which it reimburses the Company for a portion of the cost of those trials. Overland ADCT BioPharma also reimburses the Company for certain expenses in connection with technology transfer and assistance of clinical personnel. During the year ended December 31, 2022, the Company incurred KUSD 2,768 of clinical trial and service costs to be reimbursed by Overland ADCT BioPharma, which is recorded as a reduction of R&D expenses in the Company's consolidated statement of operations (2021: KUSD 2,268 and 2020: KUSD nil).

*<u>Services provided to the Company</u>*

There were no material services provided to the Company during 2022, 2021 or 2020 by related parties.

*<u>Other transactions with related parties</u>*

Of the 597,774 shares surrendered by Share Purchase Plan 2013 and Share Purchase Plan 2016 participants to settle share purchase plan promissory notes on April 15, 2020 (see note 28, "Share capital"), 556,799 were surrendered by related parties.

Of the 4,777,996 shares issued by way of capitalization of reserves on April 16, 2020 (see note 28, "Share capital"), 1,222,966 shares were issued to related parties.

In connection with the Company's IPO, HPWH TH AG purchased 950,000 shares on the same terms as other investors.

In connection with the Company's follow-on offering Auven Therapeutics GP Ltd., through A.T. Holdings II Sàrl and ADC Products Switzerland Sàrl ("the Selling Shareholders") granted to the underwriters an option to purchase up to 900,000 additional common shares at the public offering price of USD 34.00 per share, less underwriting discounts and commissions. On October 9, 2020, the underwriters exercised in full their option to purchase an additional 900,000 common shares from the Selling Shareholders at a price of USD 34.00, less underwriting discounts and commissions. The Company did not receive any proceeds or incur any costs related to the sale of these shares by the Selling Shareholders. The Selling Shareholders incurred all costs in addition to underwriting fees and commissions.

*<u>Chairman's equity awards</u>*

The Company granted the Chairman, Mr. Squarer, options to acquire 1,125,545 common shares at USD 18.75 per share in connection with his election to the Board of Directors, representing approximately 2% of our then-outstanding share capital. These options are scheduled to vest upon Mr. Squarer's continued service through designated dates over a three-year period, or immediately upon a change in control. In accordance with its agreement with Mr. Squarer, the Company provided Mr. Squarer with an additional grant of 341,403 options on June 4, 2020 with an exercise price equal to the fair market value of the Company's shares on that date, to bring Mr. Squarer's total rights to acquire the Company's shares to 2% of the then-outstanding share capital (measured without consideration of the shares underlying these grants).

------

*<u>Related party balances</u>*

The Company had a related party receivable balance with Overland ADCT BioPharma of KUSD 805 and KUSD 789 as of December 31, 2022 and December 31, 2021, respectively. There was KUSD 20 in trade accounts payable with related parties as of December 31, 2022 (2021: KUSD nil).

*<u>Key management compensation</u>*

The compensation of key management is shown below:

---

| | | | |
|:---|:---|:---|:---|
| **(in KUSD)** | **Year ended December 31, 2022** | **Year ended December 31, 2021** | **Year ended December 31, 2020** |
| Salaries and other short-term employee costs | 10582 | 8872 | 7690 |
| Pension costs | 426 | 442 | 455 |
| Share-based compensation expense | 23323 | 24649 | 16752 |
| Other compensation | 241 | 142 | 196 |
| **Total** | **34572** | **34105** | **25093** |

---

During 2022, there was an organizational realignment of certain key management as a result of the appointment of the Company's new CEO and other key executives. The key management compensation for 2022 reflects the new management structure, while the comparable prior periods have not been recast to conform to the current structure.

**32. Loss per share**

The basic loss per share is calculated by dividing the net loss attributable to shareholders by the weighted average number of shares in issue during the period, excluding common shares owned by the Company and held as treasury shares, as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **(in KUSD, except per share amounts)** | **2022** | **2021** | **2020** |
| Loss attributable to owners | (155800) | (230026) | (246290) |
| Weighted average number of shares outstanding <sup>(1)</sup> | 78152964 | 76748204 | 65410292 |
| **Basic and diluted loss per share**  | **(1.99)** | **(3.00)** | **(3.77)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Share data have been revised to give effect to the share consolidation as explained in note 2 (iv) as all Class B, C, D and E preferred shares were converted into common shares upon the completion of the IPO, loss per share data are presented on that basis for all periods.

For the year ended December 31, 2022, basic and diluted loss per share are calculated on the weighted average number of shares issued and outstanding and exclude shares to be issued under the Equity Incentive Plan 2019, 2022 ESPP and the Company's warrant agreements, as the effect of including those shares would be anti-dilutive. For the years ended December 31, 2021 and 2020, basic and diluted loss per share are calculated on the weighted average number of shares issued and outstanding and exclude shares to be issued under the 2019 Equity Incentive Plan and the conversion of the principal amount of the convertible loans into the Company's common shares as the effect of including those shares would be anti-dilutive. See note 26, "Share-based compensation expense," note 23, "Senior secured term loan facility and warrants," note 25, "Deerfield warrants" and note 24, "Convertible loans" for further information.

Potentially dilutive securities that were not included in the diluted per share calculations because the effect of including them would be anti-dilutive were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2022** | **2021** | **2020** |
| 2019 Equity Incentive Plan - Share Options | 11156101 | 5951115 | 2904673 |
| 2019 Equity Incentive Plan - RSUs | 1633507 | 495879 | 63281 |
| Conversion of the principal amount of convertible loans into the Company's common shares |  | 3866261 | 1665465 |
| Outstanding warrants | 4940135 |  |  |
| 2022 ESPP | 130348 |  |  |
|  | **17860091** | **10313255** | **4633419** |

---

------

**33. Foreign currency exchange rate**

The following exchange rates have been used for the translation of the financial statements of ADCT UK, the functional currency of which is the British pound:

---

| | | | |
|:---|:---|:---|:---|
| **USD / GBP** | **Year ended December 31, 2022** | **Year ended December 31, 2021** | **Year ended December 31, 2020** |
| Closing rate, GBP 1 | 1.2097 | 1.3512 | 1.3650 |
| Weighted average exchange rate, GBP 1 | 1.1847 | 1.3741 | 1.2842 |

---

**34. Events after the reporting date**

The Company has evaluated its subsequent events through March 15, 2023, the date the financial statements were available to be issued, and has concluded that there are no subsequent events requiring disclosure in the consolidated financial statements, other than the item described below.

On January 30, 2023, the Company expanded the square footage of its existing lease related to its U.K. office. The lease commences on January 30, 2023 and expires on January 27, 2031, and includes an option to terminate early on January 26, 2026. The Company is reasonably certain it will not terminate the lease early and therefore will account for the lease using an eight-year lease term. Total rent payments through January 27, 2031 are estimated to be USD 7.9 million.

On February 2, 2023, the Company entered into a letter agreement (the "Auven Agreement") with A.T. Holdings II Sàrl ("A.T. Holdings II"), pursuant to which the Company agreed to assist A.T. Holdings II effect the registration under the Securities Act of 1933, as amended (the "Securities Act"), of at least 12,000,000 common shares held by it and to facilitate the potential public offering of such common shares. No other registration rights have been granted to A.T. Holdings II for any other shares. The public offering contemplated by the Auven Agreement occurred on February 2, 2023.

On February 8, 2023 the Company's board of directors approved an additional 1,713,805 common shares which increased the number of common shares which may be granted under the 2019 Equity Incentive Plan to 17,741,355 common shares.

On March 6, 2023, the Company commenced a tender offer with employees to exchange eligible options for new options as detailed in our Schedule TO filed March 6, 2023 with the Securities and Exchange Commission (the "Exchange Offer"), to, among other things, further align employee incentives with the current market. The Exchange Offer will expire on April 3, 2023, unless extended or earlier terminated, and new options are expected to be granted on or around April 4, 2023. Approximately 256 employees holding stock options to purchase 3.2 million common shares, with exercise prices ranging from USD 8.12 per share to USD 48.77 per share, are eligible to participate in the Exchange Offer, and assuming all eligible stock options are exchanged and cancelled, approximately 1.4 million new stock options will be granted based on the exchange ratios set forth in the Exchange Offer. The new awards will include additional vesting conditions.

The Company will continue to recognize share-based compensation expense equal to the grant date fair value of the exchanged options plus the incremental share-based compensation expense, if any, of the new options when granted. The incremental share-based compensation expense associated with this Exchange Offer will be measured as the excess of the fair value of each award of new options granted to participants in this Exchange Offer, measured as of the date the new options are granted, over the fair value of the eligible options replaced in exchange for the new options, measured immediately prior to the replacement.

The amount of incremental share-based compensation expense, if any, will depend on a number of factors, including the level of participation in this Exchange Offer, the exercise price per share of the eligible options exchanged in the Exchange Offer and the exercise price per share of the new options. Since these factors cannot be predicted with any certainty as of the date of the Exchange Offer and will not be known until the fair value is determined on the expiration date of April 4, 2023, the Company cannot predict the exact amount of the incremental share-based compensation expense that will result from this Exchange Offer, if any. The Company will recognize any such incremental share-based compensation expense ratably over the vesting period of the new options.

## Exhibit 1.1

**Articles of Association**

**of ADC Therapeutics SA**

**(ADC Therapeutics AG)**

**(ADC Therapeutics Ltd)**

**Statuts**

**de ADC Therapeutics SA**

**(ADC Therapeutics AG)**

**(ADC Therapeutics Ltd)**

332012\|9899338v5

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Articles of Association of ADC Therapeutics SA

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| | | | |
|:---|:---|:---|:---|
| | **Section 1***<br>Name, Registered Office, Purpose and Duration of the Company* |  | **Section 1***<br>Raison sociale, siège, but de la société, durée* |
| | **Article 1** |  | **Article 1** |
| &nbsp;&nbsp;Name, Place of Incorporation | Under the name ADC Therapeutics SA (ADC Therapeutics AG) (ADC Therapeutics Ltd) (the **Company**) shall exist a corporation with its registered office in Epalinges, canton of Vaud. | &nbsp;&nbsp;Raison sociale, siège | Sous la raison sociale ADC Therapeutics SA (ADC Therapeutics AG), (ADC Therapeutics Ltd) (la **Société**) existe une société anonyme avec siège à Epalinges, canton de Vaud. |
|  | **Article 2** |  | **Article 2** |
| &nbsp;&nbsp;Purpose | <sup>1</sup> The Company's purpose is to research, develop, produce and sell products in the fields of biotechnology, pharmaceutics, medical technology, diagnosis and therapy as well as to purchase, sell and use patents and licenses in these fields. The Company may engage in all types of transactions that appear appropriate to promote the purpose of the Company or that are related thereto. | &nbsp;&nbsp;But | <sup>1</sup> La Société a pour but la recherche, le développement, la production et la vente de produits dans les domaines de la biotechnologie, de la pharmaceutique, de la technologie médicale, du diagnostic et de la thérapie ainsi que l'acquisition, la vente et l'utilisation de brevets et de licences dans ces domaines. La Société peut exercer toutes activités aptes à favoriser son but ou en rapport avec ce dernier. |
|  | <sup>2</sup> The Company may open branch offices and subsidiaries in Switzerland and abroad. It may also acquire participations or otherwise invest in other companies in Switzerland and abroad. |  | <sup>2</sup> La Société peut constituer des succursales et des filiales en Suisse et à l'étranger et participer à ou investir autrement dans d'autres entreprises en Suisse et à l'étranger. |
|  | <sup>3</sup> The Company may acquire, hold, manage, mortgage, exploit and sell real estate and intellectual property rights in Switzerland and abroad and may also finance other companies. |  | <sup>3</sup> La Société peut acquérir, détenir, gérer, gager, mettre en valeur et aliéner des immeubles et des droits de propriété intellectuelle en Suisse et à l'étranger, ainsi que financer d'autres sociétés. |
|  | **Article 3** |  | **Article 3** |

---

2 \| #NUM_PAGES#

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Articles of Association of ADC Therapeutics SA

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Duration | The duration of the Company shall be unlimited. | Durée | La durée de la Société est illimitée. |
|  | **Section 2**<br>*Share Capital, Shares, Restrictions of Transferability* |  | **Section 2**<br>*Capital-actions, actions et restrictions à la transmissibilité* |
|  | **Article 4** |  | **Article 4** |
| &nbsp;&nbsp;Share Capital | The share capital of the Company is CHF 7,123,355.68 and is divided into 89,041,946 fully paid in registered shares with a par value of CHF 0.08 each. | Capital-actions | Le capital-actions de la Société s'élève à <br>CHF 7'123'355.68 et est divisé en 89'041'946 actions nominatives entièrement libérées d'une valeur nominale de CHF 0.08 chacune. |
|  | **Article 4a** |  | **Article 4a** |
| &nbsp;&nbsp;Authorized Share Capital | <sup>1</sup> The Board of Directors shall be authorized to increase the share capital at any time, including in connection with an intended takeover, until June 9, 2023 by a maximum amount of CHF 2,460,268.08 by issuing a maximum of 30,753,351 fully paid in registered shares with a par value of CHF 0.08 each. Increases in partial amounts shall be permissible. | Capital-actions autorisé | <sup>1</sup> Le Conseil d'administration est autorisé à augmenter le capital-actions d'un montant maximum de CHF 2'460'268.08, en tout temps, y inclus en lien avec une future offre publique d'acquisition, mais jusqu'au <br>9 juin 2023 au plus tard, par l'émission d'un maximum de 30'753'351 actions nominatives d'une valeur nominale de CHF 0.08 chacune, qui doivent être intégralement libérées. Des augmentations par montants partiels sont autorisées. |
|  | <sup>2</sup> The subscription and acquisition of the new shares as well as any subsequent transfer of the shares shall be subject to the restrictions pursuant to Article 6 of these articles of association. |  | <sup>2</sup> La souscription et l'acquisition des nouvelles actions ainsi que tout transfert ultérieur des actions sont assujettis aux restrictions à la transmissibilité conformément à l'article 6 des présents statuts. |

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Articles of Association of ADC Therapeutics SA

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| | |
|:---|:---|
| <sup>3</sup> The Board of Directors shall determine the issue price, the type of contribution, the date of issue, the conditions for the exercise of pre-emptive rights and the beginning date for dividend entitlement. In this regard, the Board of Directors may issue new shares by means of a firm underwriting through a financial institution, a syndicate of financial institutions or another third party and a subsequent offer of these shares to the existing shareholders or third parties (if the pre-emptive rights of the existing shareholders have been withdrawn or have not been duly exercised). The Board of Directors is entitled to permit, to restrict or to exclude the trading of pre-emptive rights. It may permit the expiration of pre-emptive rights that have not been exercised, or it may place such rights or shares as to which pre-emptive rights have been granted, but not exercised, at market conditions or may use them otherwise in the interest of the Company. | <sup>3</sup> Le Conseil d'administration détermine le prix d'émission, la nature des apports, le moment de l'émission, les conditions de l'exercice du droit de souscription préférentiel et le moment à partir duquel les actions donneront droit à des dividendes. A cet effet, le Conseil d'administration peut émettre des nouvelles actions par voie de prise ferme par un établissement financier, un consortium bancaire ou un tiers et d'offre subséquente de ces actions aux actionnaires actuels ou à des tiers (si les droits de souscription préférentiels des actionnaires actuels ont été supprimés ou qu'ils n'ont pas été valablement exercés). Le Conseil d'administration est en droit d'autoriser, de limiter ou d'exclure le négoce des droits de souscription préférentiels. Le Conseil d'administration peut laisser s'éteindre les droits de souscription préférentiels non exercés; il peut aussi aliéner ceux-ci, respectivement les actions pour lesquelles des droits de souscription ont été accordés sans toutefois être exercés, aux conditions du marché ou les utiliser autrement dans l'intérêt de la Société. |
| <sup>4</sup> The Board of Directors is further authorized to withdraw or restrict pre-emptive rights of existing shareholders and to allocate such rights to third parties, the Company or any of its group companies: | <sup>4</sup> Le Conseil d'administration peut aussi exclure ou limiter les droits de souscription préférentiels des actionnaires actuels et les attribuer à des tiers, à la Société ou à une des sociétés du groupe: |
| (a)&nbsp;&nbsp;&nbsp;&nbsp;if the issue price of the new shares is determined by reference to the market price; or | (a)&nbsp;&nbsp;&nbsp;&nbsp;si le prix d'émission des nouvelles actions est déterminé en fonction du prix du marché; ou |
| (b)&nbsp;&nbsp;&nbsp;&nbsp;for raising capital in a fast and flexible manner, which would not be possible, or might only be possible with great difficulty or delays or at significantly less favorable conditions, without the exclusion of the pre-emptive rights of existing shareholders; or | (b)&nbsp;&nbsp;&nbsp;&nbsp;pour créer des fonds de manière rapide et flexible, ce qui ne serait pas possible ou possible qu'avec difficulté ou tardivement ou à des conditions nettement plus défavorables sans l'exclusion des droits de souscription préférentiels des actionnaires actuels; ou |

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Articles of Association of ADC Therapeutics SA

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| | |
|:---|:---|
| (c)&nbsp;&nbsp;&nbsp;&nbsp;for the acquisition of companies, part(s) of companies or participations, for the acquisition of products, intellectual property or licenses by or for investment projects of the Company or any of its group companies, or for the financing or refinancing of any of such transactions through a placement of shares; or | (c)&nbsp;&nbsp;&nbsp;&nbsp;pour l'acquisition de sociétés, de partie(s) de sociétés ou de participations, pour l'acquisition de produits, de droits de propriété intellectuelle, ou licences par ou pour des projets d'investissement de la Société ou de l'une des sociétés du groupe, ou pour le financement ou le refinancement de telles transactions par le placement d'actions; ou |
| (d)&nbsp;&nbsp;&nbsp;&nbsp;for purposes of broadening the shareholder constituency of the Company in certain geographic, financial or investor markets, for purposes of the participation of strategic partners, or in connection with the listing of new shares on domestic or foreign stock exchanges; or | (d)&nbsp;&nbsp;&nbsp;&nbsp;pour élargir le cercle des actionnaires de la Société dans certains marchés géographiques, financiers ou d'investisseurs, pour permettre la participation de partenaires stratégiques, ou en relation avec la cotation de nouvelles actions sur des bourses nationales ou étrangères; ou |
| (e)&nbsp;&nbsp;&nbsp;&nbsp;for purposes of granting an over-allotment option (*Greenshoe*) or an option to subscribe for additional shares in a placement or sale of shares to the respective initial purchaser(s) or underwriter(s); or | (e)&nbsp;&nbsp;&nbsp;&nbsp;pour octroyer une option de surallocation (*Greenshoe*) ou une option de souscription d'actions supplémentaires lors d'un placement ou de la vente d'actions à un ou plusieurs acheteurs initiaux ou souscripteurs; ou |
| (f)&nbsp;&nbsp;&nbsp;&nbsp;for the participation of members of the Board of Directors, members of the executive management, employees, contractors, consultants or other persons performing services for the benefit of the Company or any of its group companies; or | (f)&nbsp;&nbsp;&nbsp;&nbsp;pour la participation de membres du Conseil d'administration, de membres de la direction, d'employés, de co-contractants, de consultants ou d'autres personnes exerçant des services au bénéfice de la Société ou de l'une des sociétés du groupe; ou |
| (g)&nbsp;&nbsp;&nbsp;&nbsp;following a shareholder or a group of shareholders acting in concert having accumulated shareholdings in excess of 20% of the share capital registered in the commercial register without having submitted to all other shareholders a takeover offer recommended by the Board of Directors; or | (g)&nbsp;&nbsp;&nbsp;&nbsp;si un actionnaire ou un groupe d'actionnaires agissant de concert a acquis ou réuni une participation de plus de 20% du capital-actions inscrit au registre du commerce sans avoir présenté à tous les autres actionnaires une offre publique d'achat dont l'acceptation a été recommandée par le Conseil d'administration; ou |

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| | (h)&nbsp;&nbsp;&nbsp;&nbsp;for the defense of an actual, threatened or potential takeover bid that the Board of Directors, upon consultation with an independent financial adviser retained by it, has not recommended or will not recommend to the shareholders to accept on the basis that the Board of Directors does not find such takeover bid to be financially fair to the shareholders or not to be in the Company's interest. |  | (h)&nbsp;&nbsp;&nbsp;&nbsp;pour se défendre contre une offre publique d'achat hostile présentée, menaçante ou potentielle dont le rejet est, respectivement sera, recommandé par le Conseil d'administration, après consultation d'un conseiller financier indépendant qu'il aura choisi, dans la mesure où le Conseil d'administration estime que l'offre publique d'achat n'est pas équitable d'un point de vue financier vis-à-vis des actionnaires ou n'est pas dans l'intérêt de la Société. |
| | **Article 4b** | | **Article 4b** |
| &nbsp;&nbsp;Conditional Share Capital for Employee Participation | <sup>1</sup> The share capital may be increased in an amount not to exceed CHF 936,000.00 through the issuance of up to 11,700,000 fully paid in registered shares with a par value of CHF 0.08 per share through the direct or indirect issuance of shares, options or related subscription rights to members of the Board of Directors, members of the executive management, employees, contractors or consultants of the Company or its group companies, or other persons providing services to the Company or its group companies. | &nbsp;&nbsp;Capital-actions conditionnel pour la participation des employés | <sup>1</sup> Le capital-actions peut être augmenté d'un montant maximum de CHF 936'000.00 par l'émission de 11'700'000 actions nominatives au plus, d'une valeur nominale de CHF 0.08 chacune, qui doivent être intégralement libérées, par l'émission directe ou indirecte d'actions, d'options ou de droits de souscription y relatifs, octroyés aux membres du Conseil d'administration, aux membres de la direction, ou aux employés, co-contractants ou consultants de la Société ou de l'une des sociétés du groupe, ou d'autres personnes exerçant des services au bénéfice de la Société ou de l'une des sociétés du groupe. |
|  | <sup>2</sup> The pre-emptive rights and advance subscription rights of the shareholders of the Company shall be excluded in connection with the issuance of any shares, options, other rights to receive shares, or subscription rights therefor. Shares, options, other rights to receive shares, or subscription rights therefor shall be issued pursuant to one or more regulations to be issued by the Board of Directors or, to the extent delegated to it, the Compensation Committee, and to the extent applicable, taking into account the compensation principles pursuant to Article 28 of these articles of association. Shares, options, other rights to receive shares, or subscription rights therefor may be issued at a price or with an exercise price lower than the market price. |  | <sup>2</sup> Le droit de souscription préférentiel ainsi que le droit de souscription préalable des actionnaires de la Société sont exclus en relation avec l'émission de toutes actions, options, autres droits à recevoir des actions ou des droits de souscription qui y sont attachés. L'émission d'actions, d'options, d'autres droits à recevoir des actions ou des droits de souscription qui y sont attachés est faite selon un ou plusieurs règlements adoptés par le Conseil d'administration ou le Comité de rémunération, dans la mesure où cette compétence lui a été déléguée, et le cas échéant en tenant compte des principes de rémunération selon l'article 28 des présents statuts. L'émission d'actions, d'options, d'autres droits à recevoir des actions ou des droits de souscription qui y sont attachés peut se faire à un prix ou avec un prix d'exercice en-dessous du prix du marché. |

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| | <sup>3</sup> The direct or indirect acquisition of the new shares by persons listed in paragraph 1 in connection with an employee participation program and any subsequent transfer of such shares shall be subject to the restrictions of Article 6 of these articles of association. | | <sup>3</sup> L'acquisition directe ou indirecte de nouvelles actions par des personnes mentionnées à l'alinéa 1 dans le cadre d'un programme de participation des collaborateurs ainsi que le transfert subséquent de ces actions sont assujettis aux restrictions à la transmissibilité conformément à l'article 6 des présents statuts. |
| | **Article 4c** | | **Article 4c** |
| &nbsp;&nbsp;Conditional Share Capital for Financing, Acquisitions and other Purposes | <sup>1</sup> The share capital may be increased including in connection with an intended takeover in an amount not to exceed CHF 1,432,776.24 through the issuance of up to 17,909,703 fully paid in registered shares with a par value of CHF 0.08 per share through the exercise or mandatory exercise of conversion, exchange, option, warrant or similar rights or obligations for the subscription of shares granted to shareholders or third parties on a stand-alone basis or in connection with bonds, notes, options, warrants or other securities or contractual obligations of the Company or any of its group companies, including without limitation a convertible debenture to be entered into by the Company, as may be amended or novated from time to time (hereinafter collectively, the **Financial Instruments**). | &nbsp;&nbsp;Capital-actions conditionnel aux fins de financement, acquisitions ou d'autres buts | <sup>1</sup> Le capital-actions peut être augmenté, y compris en lien avec une future offre publique d'acquisition, d'un montant maximum de CHF 1'432'776.24 par l'émission de 17'909'703 actions nominatives au plus, d'une valeur nominale de CHF 0.08 chacune, qui doivent être intégralement libérées par l'exercice ou l'exercice obligatoire de droits de conversion, d'échange, d'option, de warrant ou d'autres droits ou obligations similaires pour la souscription d'actions octroyés aux actionnaires ou à des tiers de manière autonome ou en rapport avec des obligations, effets, options, warrants ou autres instruments financiers ou obligations contractuelles de la Société ou de l'une des sociétés du groupe, y compris, mais sans s'y limiter, une débenture convertible de la société, laquelle peut être amenée à être modifiée ou actualisée (ci-après désignés collectivement les **Instruments Financiers**). |
|  | <sup>2</sup> The pre-emptive rights of shareholders shall be excluded for the exercise of any Financial Instruments in connection with the issuance of shares. The then-current owners of such Financial Instruments shall be entitled to acquire the new shares issued upon conversion, exchange or exercise of any Financial Instruments. The key conditions of the Financial Instruments shall be determined by the Board of Directors. |  | <sup>2</sup> Le droit de souscription préférentiel des actionnaires est exclu en relation avec l'émission d'actions à l'occasion de l'exercice d'Instruments Financiers. Les personnes qui détiendront alors de tels Instruments Financiers seront en droit d'acquérir les nouvelles actions émises à l'occasion de la conversion, de l'échange ou de l'exercice d'Instruments Financiers. Le Conseil d'administration détermine les principales conditions des Instruments Financiers. |

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| <sup>3</sup> The Board of Directors shall be authorized to restrict or withdraw advance subscription rights of shareholders in connection with the issuance of Financial Instruments by the Company or one of its group companies (1) if the issuance is for purposes of financing or refinancing, or the payment for, the acquisition of companies, parts of a company, participations, intellectual property rights, licenses or investments, (2) if the issuance occurs in domestic or international capital markets or through a private placement, (3) following a shareholder or a group of shareholders acting in concert having accumulated shareholdings in excess of 20% of the share capital registered in the commercial register without having submitted to all other shareholders a takeover offer recommended by the Board of Directors, or (4) for the defense of an actual, threatened or potential takeover bid that the Board of Directors, upon consultation with an independent financial adviser retained by it, has not recommended or will not recommend to the shareholders to accept on the basis that the Board of Directors does not find such takeover bid to be financially fair to the shareholders or not in the Company's interest. If the advance subscription rights are neither granted directly nor indirectly by the Board of Directors, the following shall apply: | <sup>3</sup> Le Conseil d'administration est autorisé à limiter ou retirer le droit de souscription préalable des actionnaires en relation avec l'émission d'Instruments Financiers par la Société ou une des sociétés du groupe (1) si l'émission a pour but le financement, le refinancement ou le paiement de l'acquisition d'entreprises, de parties d'une entreprise, de participations, de droits de propriété intellectuelle, de licences ou d'investissements, (2) si l'émission a lieu sur les marchés de capitaux nationaux ou internationaux ou par le biais d'un placement privé, (3) si un actionnaire ou un groupe d'actionnaires agissant de concert a acquis ou réuni une participation de plus de 20% du capital-actions inscrit au registre du commerce sans avoir présenté à tous les autres actionnaires une offre publique d'achat dont l'acceptation a été recommandée par le Conseil d'administration, ou (4) pour se défendre contre une offre publique d'achat hostile présentée, menaçante ou potentielle dont le rejet est, respectivement sera, recommandé par le Conseil d'administration, après consultation d'un conseiller financier indépendant qu'il aura choisi, dans la mesure où le Conseil d'administration estime que l'offre publique d'achat n'est pas équitable d'un point de vue financier vis-à-vis des actionnaires ou n'est pas dans l'intérêt de la Société. Si le droit de souscription préalable n'est pas accordé, de manière directe ou indirecte, par le Conseil d'administration, les règles suivantes s'appliquent: |
| (a)&nbsp;&nbsp;&nbsp;&nbsp;the Financial Instruments shall be issued or entered into at market conditions;  | (a)&nbsp;&nbsp;&nbsp;&nbsp;les Instruments Financiers sont émis ou conclus aux conditions du marché;  |
| (b)&nbsp;&nbsp;&nbsp;&nbsp;the Financial Instruments may be converted, exchanged or exercised during a maximum period of 10 years from the date of issuance or contract conclusion; and | (b)&nbsp;&nbsp;&nbsp;&nbsp;les Instruments Financiers peuvent être convertis, échangés ou exercés durant une période maximale de 10 ans suivant la date de l'émission ou de la conclusion du contrat; et |
| (c)&nbsp;&nbsp;&nbsp;&nbsp;the conversion, exchange or exercise price of the Financial Instruments shall be set with reference to, and/or shall be subject to change based upon, the valuation of the Company's equity and/or market conditions. | (c)&nbsp;&nbsp;&nbsp;&nbsp;le prix de conversion, d'échange ou d'exercice des Instruments Financiers est fixé en prenant en compte, et/ou peut être modifié en fonction, de la valorisation des fonds propres de la société et/ou des conditions du marché. |

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| | <sup>4</sup> The direct or indirect acquisition of the new shares acquired through the exercise of Financial Instruments and any subsequent transfer of such shares shall be subject to the restrictions of Article 6 of these articles of association. | | <sup>4</sup> L'acquisition de nouvelles actions acquises directement ou indirectement par l'exercice d'Instruments Financiers ainsi que le transfert subséquent de ces actions sont assujettis aux restrictions à la transmissibilité conformément à l'article 6 des présents statuts. |
| | **Article 5** | | **Article 5** |
| &nbsp;&nbsp;Share Certificates and Intermediated Securities | <sup>1</sup> The Company may issue its registered shares in the form of single certificates, global certificates and uncertificated securities. Subject to applicable law, the Company may convert its registered shares from one form into another form at any time and without the approval of the shareholders. The Company shall bear the cost associated with any such conversion. | Certificats d'actions et titres intermédiés | <sup>1</sup> La Société émet ses actions nominatives sous forme de certificats individuels, de certificats globaux ou de droits-valeurs. La Société est libre, dans les limites du droit applicable, en tout temps et sans l'approbation des actionnaires, de convertir ses actions nominatives émises sous l'une des formes ci-dessus, en une autre forme. La Société supporte les coûts d'une telle conversion. |
|  | <sup>2</sup> A shareholder has no right to request a conversion of the registered shares issued in one form into another form. Each shareholder may, however, at any time request from the Company a written confirmation of the registered shares held by such shareholder, as reflected in the share register. |  | <sup>2</sup> Un actionnaire n'a pas le droit de réclamer la conversion d'actions nominatives émises sous une certaine forme en une autre forme. Chaque actionnaire peut toutefois exiger en tout temps que la Société établisse une attestation relative aux actions nominatives qu'il détient selon le registre des actions. |
|  | <sup>3</sup> Intermediated securities based on registered shares of the Company cannot be transferred by way of assignment. A security interest in any such intermediated securities also cannot be granted by way of assignment. |  | <sup>3</sup> Les titres intermédiés fondés sur des actions nominatives de la Société ne peuvent pas être transférés par cession. Il ne peut pas non plus être constitué de sûretés par cession sur ces titres intermédiés. |
|  | **Article 6** |  | **Article 6** |

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| &nbsp;&nbsp;Share Register, Restrictions on Registration, Nominees | <sup>1</sup> The Company shall maintain, itself or through a third party, a share register for the registered shares that lists the surname and name (the name of the company in case of a legal entity), the address and domicile (the registered office in case of a legal entity) of the shareholders or usufructuaries. A person registered in the share register shall notify the share registrar of any change of address. Until such notification has occurred, all written communications from the Company to persons registered in the share register shall be deemed to have validly been made if sent to the address previously recorded in the share register. | Registre des actions, limitations à l'inscription, Nominees | <sup>1</sup> La Société ou un tiers mandaté par elle tient un registre des actions qui mentionne le nom et le prénom (la raison sociale pour les personnes morales), l'adresse et le domicile (le siège pour les personnes morales) des propriétaires et des usufruitiers. Si une personne inscrite au registre des actions change d'adresse, elle doit le communiquer à la personne en charge de la tenue du registre. Aussi longtemps que cette communication n'a pas eu lieu, toutes les communications écrites de la Société aux personnes inscrites au registre des actions seront valablement envoyées à l'adresse inscrite au registre des actions. |
|  | <sup>2</sup> Persons acquiring shares shall be registered in the share register as shareholders with voting rights upon their request if they expressly declare to have acquired these shares in their own name and for their own account. Subject to paragraph 4 of this Article 6 and article 685*d* para. 3 of the Swiss Code of Obligations, no person or entity shall be registered in the share register as a shareholder with voting rights for, and no person or entity may directly or indirectly, formally, constructively or beneficially own, or otherwise control alone or together with third parties voting rights (whether exercisable or not) with respect to more than 15% of the share capital as set forth in the commercial register as a shareholder with voting rights. This restriction shall also apply to persons or entities who hold some or all of their shares through Nominees (as defined in paragraph 4 of this Article 6).  |  | <sup>2</sup> Les personnes qui acquièrent des actions sont inscrites dans le registre des actions, à leur demande, comme actionnaires avec droit de vote, pour autant qu'ils déclarent expressément avoir acquis les actions en leur nom et pour leur propre compte. Sous réserve de l'alinéa 4 du présent article 6 et de l'article 685d al. 3 du Code des obligations, aucune personne physique ou morale ne peut être inscrite au registre des actions comme actionnaire avec droit de vote et aucune personne physique ou morale ne peut détenir, directement ou indirectement, formellement, de fait ou comme ayant droit économique, ou contrôler autrement, seul ou avec des tiers, des droits de vote (exerçables ou non), par rapport à plus de 15% du capital-actions inscrit au registre du commerce en tant qu'actionnaire avec droit de vote. Cette restriction s'applique également aux personnes ou entités qui détiennent tout ou partie de leurs actions par l'intermédiaire de Nominees (tels que définis à l'alinéa 4 du présent article 6). |

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| <sup>3</sup> Subject to Art. 652b para. 3 of the Swiss Code of Obligations, this transfer restriction also applies in the case of the acquisition of shares by the exercise of subscription, option and conversion rights. The transfer restriction does not apply to acquisitions by inheritance, division of an estate or matrimonial property law. | <sup>3</sup> Sous réserve de l'art. 652b al. 3 CO, les restrictions au transfert s'appliquent également lors de l'acquisition d'actions dans le cadre de l'exercice d'un droit de souscription, d'option ou de conversion. Les restrictions au transfert ne s'appliquent pas lors d'acquisitions par succession, partage successoral ou en vertu du droit matrimonial. |
| <sup>4</sup> The Board of Directors may, in its own discretion, register persons who declare in the registration application that they hold the shares as nominees (each a **Nominee**) on behalf of third party beneficiaries (each a **Beneficial Owner**) in the share register as shareholders with voting rights. If, however, any Beneficial Owner should as a result of such registration being made or upheld, directly or indirectly, formally, constructively or beneficially own, or otherwise control or direct, alone or together with third parties, voting rights (whether exercisable or not) with respect to more than 15% of the share capital as set forth in the commercial register, the Board of Directors may cancel the registration of the Nominee holding shares for the account of such Beneficial Owner with respect to any shares in excess of such limit. The Board of Directors may make the registration with voting rights of the shares held by a Nominee subject to conditions, limitations and reporting requirements or may impose or adjust such conditions, limitations and requirements once registered. | <sup>4</sup> Le Conseil d'administration peut, à son entière discretion inscrire les personnes qui déclarent dans leur requête d'inscription qu'elles détiennent les actions en tant que nominees (chacun un **Nominee**) pour le compte de tiers ayants droit économiques (chacun un **Ayant Droit Economique**) en tant qu'actionnaires avec droit de vote. Toutefois, si suite à l'inscription ou à la confirmation de l'inscription, un Ayant Droit Economique détient directement ou indirectement, formellement, de fait ou comme ayant droit économique, ou contrôle ou dirige autrement, seul ou avec des tiers, des droits de votes (exerçables ou non) par rapport à plus de 15% du capital-actions inscrit au registre du commerce, le Conseil d'administration peut annuler l'inscription du Nominee détenant les actions pour le compte d'un tel Ayant Droit Economique pour les actions dépassant cette limite. Le Conseil d'administration peut soumettre l'inscription avec droit de vote des actions détenues par un Nominee à des conditions, limitations, exigences de rapports ou peut imposer de telles conditions, limitiations ou exigences suite à l'inscription. |
| <sup>5</sup> Legal entities and partnerships or other groups of persons or joint owners who are interrelated to one another through capital ownership, voting rights, uniform management or are otherwise linked, as well as individuals or legal entities or partnerships who act in concert or otherwise act in a coordinated manner or acquire shares indirectly, thereby circumventing the restrictions or limits pursuant to paragraph 2 or 4 of this article 6 shall be treated as one single person, entity, Nominee or as a person acquiring shares, as applicable, for purposes of paragraphs 2 and 4 of this article 6. | <sup>5</sup> Les personnes morales et communautés de personnes ou autres groupes de personnes ou de copropriétaires qui sont liés par le capital, les droits de vote, la gestion commune ou de toute autre manière, de même que les personnes physiques ou morales ou communautés de personnes qui agissent de concert ou de manière coordonnée ou acquièrent indirectement des actions, et contournent ainsi les restrictions ou limites visées aux alinéas 2 ou 4 du présent article 6 sont traités comme une seule personne, personne morale, Nominee ou comme une personne acquérant des actions, selon le cas, aux fins des alinéas 2 et 4 du présent article 6. |

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| | <sup>6</sup> The Board of Directors may grant exceptions from the restrictions or limits pursuant to paragraph 2 or 4 of this article 6 for justified reasons with the majority vote of two thirds of all its members. A justified reason may include the situation where a person extends an offer to purchase with respect to all other shares of the Company, which the Board of Directors, after having consulted an independent financial advisor, recommends to the shareholders. Shareholders, other than Nominees, already being registered directly or through a Nominee with more than 15% at the time that this article takes effect remain registered with voting rights for such shares.  |  | <sup>6</sup> Le Conseil d'administration peut octroyer des dérogations aux restrictions et limites mentionnées aux alinéas 2 ou 4 du présent article 6 pour des raisons justifiées, à la majorité des deux tiers de l'ensemble de ses membres. Peut aussi être considérée comme une raison justifiée le fait qu'une personne étende une offre d'achat par rapport à l'ensemble des autres actions de la Société et que le Conseil d'administration, après avoir consulté un conseiller financier indépendant, recommande aux actionnaires d'accepter cette offre. Les actionnaires autres que les Nominees déjà inscrits directement ou par l'intermédiaire d'un Nominee pour plus de 15% au moment où le présent article entre en vigueur demeurent enregistrés avec droit de vote pour ces actions. |
| | <sup>7</sup> After hearing the registered shareholder or Nominee, the Board of Directors may cancel such person's registration in the share register with retroactive effect as of the date of registration if such registration was made based on false or misleading information or if such information becomes untrue or misleading. The relevant shareholder or Nominee shall be promptly informed of the cancellation. |  | <sup>7</sup> Le Conseil d'administration peut, après avoir entendu l'actionnaire ou le Nominee, radier du registre des actions l'inscription qui a été faite sur la base d'informations fausses ou trompeuses données par l'acquéreur, ou si les informations deviennent fausses ou trompeuses. L'actionnaire ou le Nominee doit être informé immédiatement de la radiation. |
| | <sup>8</sup> The Board of Directors shall regulate all details and issue the instructions necessary to ensure compliance with the preceding provisions. The Board of Directors may delegate its duties. |  | <sup>8</sup> Le Conseil d'administration règle les détails et prend les mesures nécessaires au respect des dispositions ci-dessus. Le Conseil d'administration peut déléguer ses tâches. |
| | **Article 7** | | **Article 7** |
| &nbsp;&nbsp;Exercise of Rights | <sup>1</sup> The Company shall only accept one representative per share. | Exercice des droits | <sup>1</sup> La Société ne reconnaît qu'un représentant par action. |

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| | <sup>2</sup> The voting right and the rights associated therewith may be exercised vis-à-vis the Company by a shareholder, usufructuary or Nominee only to the extent that such person is registered in the share register with voting rights. |  | <sup>2</sup> Le droit de vote et les droits y relatifs ne peuvent être exercés à l'égard de la Société que par un actionnaire, un usufruitier ou un Nominee uniquement dans la mesure où celui-ci est inscrit avec droit de vote au registre des actions. |
|  | **Section 3**<br>*Corporate Bodies* |  | **Section 3**<br>*Organes* |
|  | **A.&nbsp;&nbsp;&nbsp;&nbsp;The General Meeting of Shareholders** |  | **A.&nbsp;&nbsp;&nbsp;&nbsp;L'Assemblée générale** |
|  | **Article 8** |  | **Article 8** |
| &nbsp;&nbsp;Powers of the General Meeting of Shareholders | <sup>1</sup> The General Meeting of Shareholders is the supreme corporate body of the Company.  | Pouvoirs de l'Assemblée générale | <sup>1</sup> L'Assemblée générale est l'organe suprême de la Société.  |
| &nbsp;&nbsp;Powers of the General Meeting of Shareholders | <sup>2</sup> The General Meeting of Shareholders shall have the following inalienable powers: | Pouvoirs de l'Assemblée générale | <sup>2</sup> L'Assemblée générale a le droit inaliénable: |
| &nbsp;&nbsp;Powers of the General Meeting of Shareholders | 1.&nbsp;&nbsp;&nbsp;&nbsp;the adoption and amendment of these articles of association; | Pouvoirs de l'Assemblée générale | 1.&nbsp;&nbsp;&nbsp;&nbsp;d'adopter et de modifier les présents statuts; |
| &nbsp;&nbsp;Powers of the General Meeting of Shareholders | 2.&nbsp;&nbsp;&nbsp;&nbsp;the election of the members of the Board of Directors, the Chairman of the Board of Directors and the members of the Compensation Committee; | Pouvoirs de l'Assemblée générale | 2.&nbsp;&nbsp;&nbsp;&nbsp;de nommer les membres du Conseil d'administration, le président du Conseil d'administration et les membres du Comité de rémunération; |
|  | 3.&nbsp;&nbsp;&nbsp;&nbsp;the election of the Auditors; |  | 3.&nbsp;&nbsp;&nbsp;&nbsp;de nommer l'organe de révision; |

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| | 4.&nbsp;&nbsp;&nbsp;&nbsp;the election of the independent voting rights representative; |  | 4.&nbsp;&nbsp;&nbsp;&nbsp;de nommer le représentant indépendant; |
| | 5.&nbsp;&nbsp;&nbsp;&nbsp;the approval of the annual management report and the consolidated financial statements; |  | 5.&nbsp;&nbsp;&nbsp;&nbsp;d'approuver le rapport annuel et les comptes consolidés; |
| | 6.&nbsp;&nbsp;&nbsp;&nbsp;the approval of the annual financial statements as well as the resolution on the allocation of profit shown on the balance sheet, in particular the determination of dividends; |  | 6.&nbsp;&nbsp;&nbsp;&nbsp;d'approuver les comptes annuels et de déterminer l'emploi du bénéfice résultant du bilan, en particulier de fixer le dividende; |
| | 7.&nbsp;&nbsp;&nbsp;&nbsp;the discharge from liability of the members of the Board of Directors and the persons entrusted with management; |  | 7.&nbsp;&nbsp;&nbsp;&nbsp;de donner décharge aux membres du Conseil d'administration et aux personnes chargées de la gestion; |
| | 8.&nbsp;&nbsp;&nbsp;&nbsp;the approval of the compensation of the Board of Directors and of the Executive Committee pursuant to Article 26 of these articles of association; and |  | 8.&nbsp;&nbsp;&nbsp;&nbsp;d'approuver la rémunération du Conseil d'administration et de la Direction exécutive selon l'article 26 des présents statuts; et |
| | 9.&nbsp;&nbsp;&nbsp;&nbsp;the adoption of resolutions on matters that are reserved to the General Meeting of Shareholders by law or these articles of association or that are, subject to article 716a CO, submitted to the General Meeting of Shareholders by the Board of Directors. |  | 9.&nbsp;&nbsp;&nbsp;&nbsp;de prendre toutes les décisions qui lui sont réservées par la loi ou les présents statuts ou qui lui sont soumises par le Conseil d'administration, sous réserve de l'article 716a CO. |
| | **Article 9** | | **Article 9** |
| &nbsp;&nbsp;Ordinary and Extraordinary General Meetings of Shareholders | <sup>1</sup> The Ordinary General Meeting of Shareholders shall be held each year within six months of the close of the financial year of the Company. | &nbsp;&nbsp;Assemblées générales ordinaires et extraordinaires | <sup>1</sup> L'Assemblée générale ordinaire a lieu chaque année dans les six mois qui suivent la clôture de l'exercice de la Société. |
|  | <sup>2</sup> Extraordinary General Meetings of Shareholders shall be held if |  | <sup>2</sup> Des Assemblées générales extraordinaires ont lieu lorsque |
|  | (a)&nbsp;&nbsp;&nbsp;&nbsp;the Board of Directors or the Auditors deem it necessary; |  | (a)&nbsp;&nbsp;&nbsp;&nbsp;le Conseil d'administration ou l'organe de révision l'estime nécessaire; |

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| | (b)&nbsp;&nbsp;&nbsp;&nbsp;so resolved by a General Meeting of Shareholders; or |  | (b)&nbsp;&nbsp;&nbsp;&nbsp;une Assemblée générale le décide; ou |
| | (c)&nbsp;&nbsp;&nbsp;&nbsp;shareholders who hold, alone or together, shares representing at least 10% of the share capital so request in writing, indicating the matters to be discussed and the corresponding proposals and, in case of elections, the names of the nominated candidates. |  | (c)&nbsp;&nbsp;&nbsp;&nbsp;des actionnaires représentant seuls ou ensemble 10% au moins du capital-actions le requièrent par écrit en indiquant les objets de discussion et les propositions, et en cas d'élections, les noms des candidats proposés. |
| | **Article 10** | | **Article 10** |
| &nbsp;&nbsp;Notice | <sup>1</sup> Notice of a General Meeting of Shareholders shall be given by the Board of Directors or, if necessary, by the Auditors, no later than 20 calendar days prior to the date of the meeting. Liquidators and representatives of bond-holders are also entitled to call a General Meeting of Shareholders. | Convocation | <sup>1</sup> L'Assemblée générale est convoquée par le Conseil d'administration ou, si nécessaire, par l'organe de révision au plus tard 20 jours calendaires avant le jour de l'assemblée. Les liquidateurs et les représentants de détenteurs d'obligations ont également le droit de convoquer l'Assemblée générale. |
|  | <sup>2</sup> Notice of the General Meeting of Shareholders shall be given by way of a single announcement in the official means of publication of the Company pursuant to Article 36 of these articles of association. Registered shareholders may in addition be notified in writing. |  | <sup>2</sup> La convocation à l'Assemblée générale a lieu par une annonce unique dans l'organe de publication de la Société selon l'article 36 des présents statuts. La convocation peut également être envoyée par écrit aux actionnaires inscrits. |
|  | <sup>3</sup> The annual report, the compensation report and the Auditors' reports shall be made available for inspection by the shareholders at the registered office of the Company no later than 20 calendar days prior to the Ordinary General Meeting of Shareholders. Registered shareholders shall be informed in writing in the notice. |  | <sup>3</sup> Le rapport de gestion, le rapport de rémunération et les rapports de révision sont mis à la disposition des actionnaires au siège de la Société au plus tard 20 jours calendaires avant l'Assemblée générale ordinaire. Les actionnaires inscrits doivent en être informés par écrit dans la convocation. |
|  | <sup>4</sup> The notice shall specify the items on the agenda as well as the proposals of the Board of Directors and the shareholder(s) who requested that a General Meeting of Shareholders be held or an item be included on the agenda and, in the event of elections, the names of the proposed candidates. |  | <sup>4</sup> La convocation mentionne les objets portés à l'ordre du jour ainsi que les propositions du Conseil d'administration et du ou des actionnaires qui ont demandé la convocation de l'Assemblée générale ou l'inscription d'un objet à l'ordre du jour et, en cas d'élections, les noms des candidats proposés. |

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| | **Article 11** | | **Article 11** |
| &nbsp;&nbsp;Agenda | <sup>1</sup> Shareholders who, alone or together, either hold shares with a par value of at least CHF 1,000,000 or who represent at least 10% of the share capital may request that an item be included on the agenda. Such request must be made in writing and be received at the registered office of the Company at least 45 calendar days prior to the General Meeting of Shareholders, specifying the agenda item and the proposals of the shareholders. | Objets à l'ordre du jour | <sup>1</sup> Des actionnaires qui représentent seuls ou ensemble des actions totalisant une valeur nominale d'au moins CHF 1'000'000 ou qui représentent au moins 10% du capital-actions peuvent requérir l'inscription d'un objet à l'ordre du jour. La demande doit être faite par écrit et reçue au siège de la Société au moins 45 jours calendaires avant l'Assemblée générale avec indication des objets à l'ordre du jour et des propositions des actionnaires. |
|  | <sup>2</sup> No resolutions may be passed at a General Meeting of Shareholders on proposals concerning agenda items for which proper notice was not given. This provision shall not apply, however, to proposals made during a General Meeting of Shareholders to convene an Extraordinary General Meeting of Shareholders or to initiate a special audit. Each request for inclusion of an item on the agenda shall include (i) a brief description of the agenda item and the reason for which it is to be discussed at the meeting; (ii) the motions regarding the agenda item; (iii) the name and address, as they appear on the Company's register of shareholders, of the shareholder proposing such business; (iv) the number of shares of the Company which are beneficially owned by such shareholder; (v) the dates upon which the shareholder acquired such shares; (vi) documentary support for any claim of beneficial ownership; (vii) any material interest of such shareholder in including the item in the agenda; (viii) a statement in support of the matter; and (ix) all other information required under applicable law and stock exchange rules. |  | <sup>2</sup> Aucune décision ne peut être prise par l'Assemblée générale sur des objets qui n'ont pas été dûment portés à l'ordre du jour, à l'exception des propositions de convoquer une Assemblée générale extraordinaire et d'instituer un contrôle spécial. Toute requête visant l'inscription d'un objet à l'ordre du jour doit inclure (i) une brève description de cet objet et la raison pour laquelle il doit être discuté lors de l'Asemblée générale; (ii) les propositions relatives à cet objet; (iii) le nom et l'adresse, tels qu'ils apparaissent dans le registre des actions, de l'actionnaire proposant un tel objet; (iv) le nombre d'actions de la Société dont cet actionnaire est ayant droit économique; (v) les dates auxquelles l'actionnaire a acquis ces actions; (vi) les pièces justificatives démontrant le statut d'ayant droit économique; (vii) l'intérêt important de l'actionnaire à l'inscription de l'objet à l'ordre du jour; (viii) une déclaration à l'appui de la requête; et (ix) toute autre information requise par la loi ou les règles boursières applicables. |
|  | <sup>3</sup> No prior notice is required to bring motions related to items already on the agenda or for the discussion of matters on which no resolution is to be taken. |  | <sup>3</sup> En revanche, il n'est pas nécessaire d'annoncer à l'avance les propositions entrant dans le cadre des objets portés à l'ordre du jour ni les délibérations qui ne doivent pas être suivies d'un vote. |

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| | **Article 12** | | **Article 12** |
| &nbsp;&nbsp;Chairman, Vote Counters, Minutes | <sup>1</sup> The Chairman of the Board of Directors shall chair the General Meeting of Shareholders. In his absence, the Vice-Chairman of the Board of Directors, another member or a person designated by the Board of Directors shall chair the General Meeting of Shareholders. If no member of the Board of Directors is available and no other person has been designated by the Board of Directors, the acting chair shall be elected by the General Meeting of Shareholders. | Présidence, scrutateurs, procès-verbal | <sup>1</sup> Le président du Conseil d'administration préside l'Assemblée générale. En son absence, le vice-président du Conseil d'administration, un autre membre ou une personne désignée par le Conseil d'administration préside l'Assemblée générale. Si aucun membre du Conseil d'administration n'est disponible et aucune personne n'a été désignée par le Conseil d'administration, l'Assemblée générale élit son président. |
|  | <sup>2</sup> The acting chair of the General Meeting of Shareholders shall appoint the secretary and the vote counter(s), none of whom need be shareholders. The minutes shall be signed by the acting chair of the General Meeting of Shareholders and the secretary. |  | <sup>2</sup> Le président de l'Assemblée générale désigne un rédacteur du procès-verbal et le ou les scrutateurs, qui ne doivent pas nécessairement être des actionnaires. Le procès-verbal doit être signé par le président de l'Assemblée générale et le secrétaire. |
|  | <sup>3</sup> The acting chair of the General Meeting of Shareholders shall have all powers and authority necessary and appropriate to ensure the orderly conduct of the General Meeting of Shareholders. |  | <sup>3</sup> Le président de l'Assemblée générale a tous les pouvoirs nécessaires et appropriés pour s'assurer de la conduite régulière de l'Assemblée générale.  |
|  | **Article 13** |  | **Article 13** |

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| &nbsp;&nbsp;Voting Rights, Representation | <sup>1</sup> Each share shall convey the right to one vote. The voting rights are subject to the conditions of Articles 6 and 7 of these articles of association.  | Droit de vote, représentation | <sup>1</sup> Chaque action donne droit à une voix. Les droits de vote sont soumis aux conditions des articles 6 et 7 des présents statuts. |
| &nbsp;&nbsp;Voting Rights, Representation | <sup>2</sup> The Board of Directors shall issue the rules regarding the participation in and representation at the General Meeting of Shareholders and determine the requirements as to proxies and instructions. A shareholder may only be represented at the General Meeting of Shareholders by the independent voting rights representative, its legal representative or, by means of a written proxy, by another shareholder with the right to vote. All shares held by a shareholder may only be represented by one person. |  | <sup>2</sup> Le Conseil d'administration prend les dispositions relatives à la participation et à la représentation à l'Assemblée générale et détermine les exigences applicables aux procurations et instructions. Un actionnaire ne peut être représenté à l'Assemblée générale que par le représentant indépendant, par son représentant légal ou, au moyen d'une procuration écrite, par un autre actionnaire ayant droit de vote. Toutes les actions détenues par un actionnaire ne peuvent être représentées que par une seule personne. |
|  | <sup>3</sup> The General Meeting of Shareholders shall elect the independent voting rights representative for a term of office until completion of the next Ordinary General Meeting of Shareholders. Re-election is possible. |  | <sup>3</sup> L'Assemblée générale nomme le représentant indépendant pour une durée de fonctions s'achevant à la fin de l'Assemblée générale ordinaire suivante. La réélection est possible. |
|  | <sup>4</sup> If the Company does not have an independent voting rights representative, the Board of Directors shall appoint the independent voting rights representative for the next General Meeting of Shareholders. |  | <sup>4</sup> Dans le cas où la Société n'a pas de représentant indépendant, le Conseil d'administration nommera le représentant indépendant pour l'Assemblée générale suivante. |
|  | **Article 14** |  | **Article 14** |
| &nbsp;&nbsp;Resolutions, Elections | <sup>1</sup> The General Meeting of Shareholders shall pass its resolutions and decide its elections by the absolute majority of the votes attached to the shares represented, unless required otherwise by law or these articles of association. In the event of a tie, the resolution shall be deemed refused. | Décisions, élections | <sup>1</sup> Les décisions de l'Assemblée générale sont prises à la majorité absolue des voix attribuées aux actions représentées, à moins que la loi ou les présents statuts n'en disposent autrement. En cas d'égalité de voix, la décision est refusée.  |

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| <sup>2</sup> Two thirds of the votes represented and the absolute majority of the par value of shares represented shall be required for the General Meeting of Shareholders to adopt resolutions on the following matters: | <sup>2</sup> Une décision de l'Assemblée générale recueillant au moins les deux tiers des voix attribuées aux actions représentées et la majorité absolue des valeurs nominales représentées est nécessaire pour: |
| 1.&nbsp;&nbsp;&nbsp;&nbsp;the amendment of the purpose of the Company; | 1.&nbsp;&nbsp;&nbsp;&nbsp;la modification du but social de la Société; |
| 2.&nbsp;&nbsp;&nbsp;&nbsp;the creation of shares with privileged voting rights; | 2.&nbsp;&nbsp;&nbsp;&nbsp;l'introduction d'actions à droit de vote privilégié; |
| 3.&nbsp;&nbsp;&nbsp;&nbsp;the restriction on the transferability of registered shares or their registration with voting rights and the cancelation of such a restriction; | 3.&nbsp;&nbsp;&nbsp;&nbsp;la restriction de la transmissibilité des actions nominatives ou leur inscription avec droit de vote ainsi que la suppression d'une telle restriction; |
| 4.&nbsp;&nbsp;&nbsp;&nbsp;an authorized or conditional increase in share capital; | 4.&nbsp;&nbsp;&nbsp;&nbsp;l'augmentation autorisée ou conditionnelle du capital-actions; |
| 5.&nbsp;&nbsp;&nbsp;&nbsp;an increase in share capital through the conversion of equity surplus, against contributions in kind or for purposes of an acquisition of assets, or the granting of special benefits; | 5.&nbsp;&nbsp;&nbsp;&nbsp;l'augmentation du capital-actions au moyen de la conversion de fonds propres, contre apport en nature ou en vue d'une reprise de biens et l'octroi d'avantages particuliers; |
| 6.&nbsp;&nbsp;&nbsp;&nbsp;the limitation or withdrawal of pre-emptive rights; | 6.&nbsp;&nbsp;&nbsp;&nbsp;la limitation ou la suppression du droit de souscription préférentiel; |
| 7.&nbsp;&nbsp;&nbsp;&nbsp;the relocation of the registered office of the Company;  | 7.&nbsp;&nbsp;&nbsp;&nbsp;le transfert du siège de la Société;  |
| 8.&nbsp;&nbsp;&nbsp;&nbsp;the dissolution of the Company; | 8.&nbsp;&nbsp;&nbsp;&nbsp;la dissolution de la Société; |
| 9. &nbsp;&nbsp;&nbsp;&nbsp;mergers, demergers and conversions pursuant to the Merger Act;  | 9.&nbsp;&nbsp;&nbsp;&nbsp;une fusion, scission ou transformation conformément à la Loi sur la fusion; |
| 10. &nbsp;&nbsp;&nbsp;&nbsp;the conversion of registered shares into bearer shares;<br>11. &nbsp;&nbsp;&nbsp;&nbsp;the removal of any member of the Board of Directors or of its Chairman before the end of his or her term of office; and | 10.&nbsp;&nbsp;&nbsp;&nbsp;la conversion d'actions nominatives en actions au porteur;<br>11. &nbsp;&nbsp;&nbsp;&nbsp;la révocation de tout membre du Conseil d'administration ou de son président avant la fin de son mandat; et |

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| | 12. the amendment or repeal of the following provisions of these articles of association, with the exception of editorial amendments that do not effectively change their content:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;article 6;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;article 14; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;article 15; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;article 18. |  | 12.&nbsp;&nbsp;&nbsp;&nbsp;la modification ou la suppression des dispositions suivantes des présents statuts, à l'exception des modifications rédactionnelles qui ne modifient pas effectivement leur contenu:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;article 6;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;article 14; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;article 15; et<br>&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;article 18. |
| | <sup>3</sup> Resolutions and elections shall be decided by open ballot, unless the acting chair of the General Meeting of Shareholders decides that a secret ballot be held or that it be voted by electronic means. The acting chair may at any time order that a resolution or election be repeated if he considers the vote to be in doubt. The resolution or election previously held shall then be deemed not to have taken place.  |  | <sup>3</sup> Les décisions et élections ont lieu à main levée, à moins qu'un vote à bulletins secrets ou électronique ne soit ordonné par le président de l'Assemblée générale. Le président peut en tout temps ordonner qu'une décision ou élection soit répétée s'il estime qu'il existe des doutes sur le résultat. Dans ce cas, la décision ou l'élection précédente est réputée ne pas avoir eu lieu. |
| | **B.&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors** | | **B.&nbsp;&nbsp;&nbsp;&nbsp;Le Conseil d'administration** |
| | **Article 15** | | **Article 15** |
| &nbsp;&nbsp;Number of Directors | The Board of Directors shall consist of not less than 3 and no more than 12 members. | Nombre de membres | Le Conseil d'administration se compose de 3 membres au moins et de 12 membres au plus. |
|  | **Article 16** |  | **Article 16** |
| &nbsp;&nbsp;Election and Term of Office | <sup>1</sup> The General Meeting of Shareholders shall elect the members of the Board of Directors and the Chairman of the Board of Directors individually and for a term of office until the completion of the next Ordinary General Meeting of Shareholders. Re-election is possible. | Élection et durée des fonctions | <sup>1</sup> Les membres du Conseil d'administration et le président du Conseil d'administration sont élus individuellement par l'Assemblée générale pour une durée de fonctions s'achevant à la fin de l'Assemblée générale ordinaire suivante. La réélection est possible. |

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| | <sup>2</sup> If the office of the Chairman of the Board of Directors is vacant, the Board of Directors shall appoint a new Chairman from among its members for a term of office extending until completion of the next Ordinary General Meeting of Shareholders. |  | <sup>2</sup> Lorsque la fonction de président du Conseil d'administration est vacante, le Conseil d'administration désigne un nouveau président parmi ses membres pour une durée de fonctions s'achevant à la fin de l'Assemblée générale ordinaire suivante. |
| | **Article 17** | | **Article 17** |
| &nbsp;&nbsp;Organization of the Board of Directors | <sup>1</sup> Except for the election of the Chairman of the Board of Directors and the members of the Compensation Committee by the General Meeting of Shareholders, the Board of Directors shall constitute itself. The Board of Directors may elect one or several Vice-Chairmen. The Board of Directors shall further appoint a secretary who need not be member of the Board of Directors. | Organisation du Conseil d'administration | <sup>1</sup> A l'exception de l'élection par l'Assemblée générale du président du Conseil d'administration et des membres du Comité de rémunération, le Conseil d'administration se constitue lui-même. Il peut désigner au besoin, un ou plusieurs vice-présidents. Le Conseil d'administration désigne en outre un secrétaire, qui ne doit pas nécessairement être membre du Conseil d'administration. |
|  | <sup>2</sup> Subject to these articles of association, the Board of Directors shall regulate its organization and the adoption of resolutions in the organizational regulations. |  | <sup>2</sup> Le Conseil d'administration règle en outre son organisation et la manière de prendre des décisions dans un règlement d'organisation, sous réserve des présents statuts. |
|  | **Article 18** |  | **Article 18** |
| &nbsp;&nbsp;Reimbursement of Expenses, Indemnification | <sup>1</sup> The members of the Board of Directors shall be entitled to the reimbursement of all expenses incurred in the interest of the Company. | Remboursement des frais, indemnisation | <sup>1</sup> Les membres du Conseil d'administration ont droit au remboursement de tous les frais engagés dans l'intérêt de la Société. |
| &nbsp;&nbsp;Reimbursement of Expenses, Indemnification | <sup>2</sup> To the extent not included in insurance coverage or paid by third parties, the Company shall indemnify and hold harmless, to the extent permitted by law, the existing and former members of the Board of Directors and Executive Committee, and their heirs, executors and administrators, out of the assets of the Company from and against all threatened, pending or completed actions, suits or proceedings – whether civil, criminal, administrative or investigative – and all costs, charges, losses, damages, and expenses which they or any of them, their heirs, executors or administrators, shall or may incur or sustain by or by reason of any actual or alleged actions, consents or omissions in or about the execution of their duty, or alleged duty, or by reason of the fact that he is or was a member of the Board of Directors or Executive Committee of the Company or one of its subsidiaries, or, while serving as a member of the Board of Directors or Executive Committee of the Company, is or was serving at the request of the Company as a director, member of the executive management, employee or agent of another corporation, partnership, joint venture, trust or other enterprise; provided, however, that this indemnity shall not extend to any matter in which any of said persons is found, in a final judgment or decree of a court or governmental or administrative authority of competent jurisdiction not subject to appeal, to have committed an intentional or grossly negligent breach of his statutory duties as a member of the Board of Directors or Executive Committee. | Remboursement des frais, indemnisation | <sup>2</sup> Dans la mesure où la loi le permet, la Société indemnisera, à concurrence de la portion non couverte par une assurance ou payée par un tiers, sur ses propres biens les membres actuels et passés du Conseil d'administration et de la Direction exécutive ainsi que leurs héritiers, masse en faillite ou masse successorale contre toutes actions, procès ou poursuites, menaçants, en cours ou terminés, de nature civile, pénale, administrative ou autre, et tous les coûts, dépenses, pertes, dommages et frais qu'ils (ou leurs héritiers, masse en faillite ou masse successorale) subiraient ou pourraient subir en raison d'actions, consentements ou omissions, effectifs ou présumés, en relation avec l'exercice de leurs fonctions, leurs fonctions supposées ou en raison du fait d'être ou d'avoir été membres du Conseil d'administration ou de la Direction exécutive de la Société ou de l'une de ses filiales ou, sur instruction de la Société en tant que membres du Conseil d'administration ou de la Direction exécutive, en raison du fait d'être ou d'avoir été administrateur, membre de la direction, employé ou mandataire d'une autre société, entreprise, coentreprise, personne morale dénuée de la personnalité ou trust. L'obligation d'indemnisation s'éteint dès qu'un jugement définitif et exécutoire d'un tribunal ou d'une autorité compétente a décidé que la personne en question a violé, volontairement ou par grave négligence, ses devoirs de membre du Conseil d'administration ou de la Direction exécutive. |

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| | <sup>3</sup> Without limiting the foregoing paragraph 2 of this Article 18, the Company shall advance costs and expenses idemnifiable thereunder to the existing and former members of the Board of Directors and Executive Committee to the extent not included in insurance coverage or advanced by third parties. The Company may however recover such advanced costs if any of said persons is found, in a final judgment or decree of a court or governmental or administrative authority of competent jurisdiction not subject to appeal, to have committed an intentional or grossly negligent breach of his statutory duties as a member of the Board of Directors or Executive Committee. |  | <sup>3</sup> Sans préjudice de l'alinéa 2 du présent article 18, la Société avancera les frais et les coûts indemnisables en vertu de la disposition précitée aux membres actuels et passés du Conseil d'administration et de la Direction exécutive, à concurrence de la portion non couverte par une assurance ou payée par un tiers. La Société peut cependant recouvrer ces avances de frais si l'une de ces personnes a été reconnue coupable de violation intentionnelle ou par négligence grave de ses devoirs de membre du Conseil d'administration ou de la Direction exécutive par un jugement ou une décision final et exécutoire d'un tribunal ou d'une autorité gouvernementale ou administrative compétente.  |
| | **Article 19** | | **Article 19** |
| &nbsp;&nbsp;Convening of Meetings, Resolutions, Minutes | <sup>1</sup> The Board of Directors shall meet at the invitation of its Chairman or, if not available, of the Vice-Chairman or of another member of the Board of Directors as often as the business of the Company shall require or if a member requests it in writing or via telefax, e-mail or another form of electronic communication, indicating the reasons. | Convocation, décisions, procès-verbal | <sup>1</sup> Le Conseil d'administration est convoqué par son président ou, en cas d'empêchement de ce dernier, par son vice-président ou par un autre membre du Conseil d'administration, aussi souvent que cela apparaît nécessaire ou lorsqu'un membre du Conseil d'administration le demande par écrit, par télécopie, courriel ou par un autre moyen de communication électronique, avec indication des motifs. |
|  | <sup>2</sup> Unless the organizational regulations adopted by the Board of Directors or a board resolution taken with the applicable attendance quorum provide otherwise, the Board of Directors shall only have a quorum if a majority of the members of the Board of Directors is present. No attendance quorum shall be required for resolutions of the Board of Directors providing for the amendment and ascertainment of a capital increase. |  | <sup>2</sup> A moins que le contraire ne résulte d'une disposition du règlement d'organisation adopté par le Conseil d'administration ou d'une décision du Conseil d'administration prise conformément aux dispositions applicables au quorum de présence, la majorité des membres du Conseil d'administration doivent être présents afin de pouvoir prendre une décision. Ce quorum de présence n'est pas nécessaire pour les décisions de modification et de constatation du Conseil d'administration en lien avec les augmentations du capital-actions. |
|  | <sup>3</sup> The Board of Directors shall adopt its resolutions by a majority of votes cast. In the case of a tie, the Chairman of the Board of Directors shall have the casting vote.  |  | <sup>3</sup> Les décisions du Conseil d'administration sont prises à la majorité des voix exprimées. En cas d'égalité des voix, la voix du président du Conseil d'administration prévaut. |

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| | <sup>4</sup> Resolutions may also be adopted by way of written consent or by approval via telefax, e-mail or another form of electronic communication, unless a member requests discussion thereof. |  | <sup>4</sup> Les décisions du Conseil d'administration peuvent également être prises par voie de circulation ou être adoptées par télécopie, courriel ou par un autre moyen de communication électronique, à moins qu'une discussion ne soit requise par l'un des membres du Conseil d'administration. |
| | <sup>5</sup> The decisions of the Board of Directors shall be recorded in minutes to be signed by the acting chair and the secretary. |  | <sup>5</sup> Les décisions du Conseil d'administration sont consignées dans un procès-verbal signé par le président et par le secrétaire. |
| | **Article 20** | | **Article 20** |
| &nbsp;&nbsp;Powers of the Board of Directors | <sup>1</sup> The Board of Directors may pass resolutions with respect to all matters which are not delegated to another corporate body of the Company by law, by these articles of association or by regulations. | Attributions du Conseil d'administration | <sup>1</sup> Le Conseil d'administration peut prendre des décisions sur toutes les affaires qui ne sont pas attribuées à un autre organe de la Société par la loi, les présents statuts ou un règlement. |
|  | <sup>2</sup> It shall have the following non-transferable and inalienable duties: |  | <sup>2</sup> Il a les attributions intransmissibles et inaliénables suivantes: |
|  | 1.&nbsp;&nbsp;&nbsp;&nbsp;the ultimate management of the Company and the issuance of necessary instructions; |  | 1.&nbsp;&nbsp;&nbsp;&nbsp;exercer la haute direction de la Société et établir les instructions nécessaires; |
|  | 2.&nbsp;&nbsp;&nbsp;&nbsp;the determination of the organization of the Company; |  | 2.&nbsp;&nbsp;&nbsp;&nbsp;fixer l'organisation de la Société; |
|  | 3.&nbsp;&nbsp;&nbsp;&nbsp;the structuring of the accounting system, of the financial controls and of the financial planning; |  | 3.&nbsp;&nbsp;&nbsp;&nbsp;fixer les principes de la comptabilité et du contrôle financier ainsi que le plan financier; |
|  | 4.&nbsp;&nbsp;&nbsp;&nbsp;the appointment and dismissal of the persons entrusted with management and representation of the Company, and issuance of rules on the signature authority; |  | 4.&nbsp;&nbsp;&nbsp;&nbsp;nommer et révoquer les personnes chargées de la gestion et de la représentation de la Société et réglementer le droit de signature; |
|  | 5.&nbsp;&nbsp;&nbsp;&nbsp;the ultimate supervision of the persons entrusted with management, in particular in view of compliance with the law, these articles of association, regulations and directives; |  | 5.&nbsp;&nbsp;&nbsp;&nbsp;exercer la haute surveillance sur les personnes chargées de la gestion pour s'assurer notamment qu'elles observent la loi, les présents statuts, les règlements et les instructions données; |

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| 6.&nbsp;&nbsp;&nbsp;&nbsp;the preparation of the annual report and the compensation report; | 6.&nbsp;&nbsp;&nbsp;&nbsp;établir le rapport de gestion et le rapport de rémunération; |
| 7.&nbsp;&nbsp;&nbsp;&nbsp;the preparation of the General Meeting of Shareholders and the implementation of its resolutions; | 7.&nbsp;&nbsp;&nbsp;&nbsp;préparer l'Assemblée générale et exécuter ses décisions; |
| 8.&nbsp;&nbsp;&nbsp;&nbsp;the adoption of resolutions on the increase of the share capital to the extent that such power is vested in the Board of Directors, the ascertainment of capital increases, the preparation of the report on the capital increase, and the respective amendments of the articles of association (including deletions); | 8.&nbsp;&nbsp;&nbsp;&nbsp;prendre les décisions relatives aux augmentations du capital-actions, dans la mesure où elles sont de la compétence du Conseil d'administration, ainsi que les décisions relatives à la constatation d'augmentations de capital, à l'établissement du rapport d'augmentation du capital-actions et aux modifications des statuts qui en résultent (radiation comprise); |
| 9.&nbsp;&nbsp;&nbsp;&nbsp;the non-transferable and inalienable duties and powers of the Board of Directors pursuant to the Merger Act; | 9.&nbsp;&nbsp;&nbsp;&nbsp;les attributions et compétences intransmissibles et inaliénables du Conseil d'administration selon la Loi sur la fusion; |
| 10.&nbsp;&nbsp;&nbsp;&nbsp;the notification of the judge if liabilities exceed assets; and | 10.&nbsp;&nbsp;&nbsp;&nbsp;informer le juge en cas de surendettement; et |
| 11.&nbsp;&nbsp;&nbsp;&nbsp;other powers and duties reserved to the Board of Directors by law or these articles of association. | 11.&nbsp;&nbsp;&nbsp;&nbsp;d'autres attributions et compétences réservées au Conseil d'administration par la loi ou les présents statuts. |
| &nbsp;&nbsp;<sup>3</sup> In all other respects, the Board of Directors may delegate in whole or in part the management and the representation of the Company within the framework set forth by these articles of association and the law to one or several of its members or to third parties by means of organizational regulations. | &nbsp;&nbsp;<sup>3</sup> En outre, le Conseil d'administration peut déléguer en tout ou en partie la gestion ainsi que la représentation de la Société, dans le cadre des présents statuts et de la loi, à un ou plusieurs de ses membres ou à des tiers conformément au règlement d'organisation. |
| **C.&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee** | **C.&nbsp;&nbsp;&nbsp;&nbsp;Le Comité de rémunération** |

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| | **Article 21** | | **Article 21** |
| &nbsp;&nbsp;Number of Members | The Compensation Committee shall consist of at least two members of the Board of Directors. | Nombre de membres | Le Comité de rémunération se compose d'au moins deux membres du Conseil d'administration. |
|  | **Article 22** |  | **Article 22** |
| &nbsp;&nbsp;Election and Term of Office | <sup>1</sup> The General Meeting of Shareholders shall elect the members of the Compensation Committee individually for a term of office until the completion of the subsequent Ordinary General Meeting of Shareholders. Only members of the Board of Directors may be elected. Re-election is possible. | Election et durée de fonctions | <sup>1</sup> L'Assemblée générale élit individuellement les membres du Comité de rémunération pour une durée de fonctions s'achevant à la fin de l'Assemblée générale ordinaire suivante. Seuls des membres du Conseil d'administration sont éligibles. La réélection est possible. |
|  | <sup>2</sup> If there are vacancies on the Compensation Committee, the Board of Directors may appoint substitute members from among its members for a term of office extending until completion of the next Ordinary General Meeting of Shareholders. |  | <sup>2</sup> En cas de vacance au sein du Comité de rémunération, le Conseil d'administration peut désigner des substituts parmi ses membres pour une durée de fonctions s'achevant à la fin de l'Assemblée générale ordinaire suivante. |
|  | **Article 23** |  | **Article 23** |
| &nbsp;&nbsp;Organization of the Compensation Committee | <sup>1</sup> The Compensation Committee shall constitute itself. Unless the organizational regulations provide otherwise, the Board of Directors shall elect a chairman from among the Compensation Committee's members. | Organisation du Comité de rémunération | <sup>1</sup> Le Comité de rémunération se constitue lui-même. A moins que le règlement d'organisation n'en dispose autrement, le Conseil d'administration élit le Président du Comité de rémunération parmi les membres du Comité de rémunération.  |
| &nbsp;&nbsp;Organization of the Compensation Committee | <sup>2</sup> The Board of Directors shall issue regulations establishing the organization and decision-making process of the Compensation Committee, which may be part of the organizational regulations. | Organisation du Comité de rémunération | <sup>2</sup> Le Conseil d'administration établit un règlement concernant l'organisation et le processus de décision du Comité de rémunération, qui peut être intégré au règlement d'organisation. |
|  | **Article 24** |  | **Article 24** |

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| &nbsp;&nbsp;Duties and Powers | <sup>1</sup> The Compensation Committee shall support the Board of Directors in establishing and reviewing the compensation strategy and guidelines as well as in preparing the proposals to the General Meeting of Shareholders regarding the compensation of the Board of Directors and the Executive Committee. It may submit proposals to the Board of Directors in other compensation-related issues. | &nbsp;&nbsp;Attributions | <sup>1</sup> Le Comité de rémunération assiste le Conseil d'administration dans l'établissement et la révision de la stratégie et des directives de rémunération, ainsi que dans la préparation des propositions à soumettre à l'Assemblée générale concernant la rémunération du Conseil d'administration et de la Direction exécutive. Il peut soumettre au Conseil d'administration des propositions en toutes autres matières relatives à la rémunération. |
|  | <sup>2</sup> The Board of Directors shall determine in regulations for which positions of the Board of Directors, the Executive Committee and other member of management (if any) the Compensation Committee shall submit proposals for the performance metrics, target values and/or the compensation of the members of the Board of Directors and the Executive Committee, and for which positions it shall itself determine, in accordance with these articles of association and the compensation guidelines established by the Board of Directors, such performance metrics, target values and/or the compensation. |  | <sup>2</sup> Le Conseil d'administration détermine dans un règlement pour quelles fonctions du Conseil d'administration, de la Direction exécutive et d'autres membres de la direction (si applicable) le Comité de rémunération proposera au Conseil d'administration les mesures de performances, les valeurs cibles et/ou la rémunération des membres du Conseil d'administration et de la Direction exécutive, et pour quelles fonctions il aura la compétence de déterminer de son propre chef, en accord avec les statuts et les directives de rémunération établies par le Conseil d'administration, les mesures de performances, les valeurs cibles et/ou la rémunération. |
|  | <sup>3</sup> The Board of Directors may delegate further tasks to the Compensation Committee. |  | <sup>3</sup> Le Conseil d'administration peut déléguer d'autres tâches au Comité de rémunération. |
|  | **D.&nbsp;&nbsp;&nbsp;&nbsp;The Auditors** |  | **D.&nbsp;&nbsp;&nbsp;&nbsp;L'organe de révision** |
|  | **Article 25** |  | **Article 25** |

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| | <sup>1</sup> The General Meeting of Shareholders shall elect the Auditors for a term of office until the completion of the next Ordinary General Meeting of Shareholders. Re-election is possible. |  | <sup>1</sup> L'Assemblée générale élit l'organe de révision pour une durée de fonctions s'achevant à la fin de l'Assemblée générale ordinaire suivante. La réélection est possible. |
| | <sup>2</sup> The Auditors shall have the powers and duties vested in them by law. |  | <sup>2</sup> L'organe de révision a les pouvoirs et obligations que lui confère la loi. |
| | <sup>3</sup> The Board of Directors may mandate the Auditors at any time to perform special investigations, in particular interim audits, and to prepare a report on their findings. |  | <sup>3</sup> Le Conseil d'administration peut en tout temps charger l'organe de révision de procéder à des contrôles spéciaux, notamment des révisions intermédiaires, et de lui en soumettre un rapport. |
|  | **Section 4***<br>Compensation of the Members of the Board of Directors and the Executive Committee and Related Matters* |  | **Section 4***<br>Rémunération des membres du Conseil d'administration et de la Direction exécutive et affaires connexes* |
|  | **Article 26** |  | **Article 26** |
| &nbsp;&nbsp;Approval of the Compensation by the General Meeting of Shareholders | <sup>1</sup> The General Meeting of Shareholders shall approve the proposals of the Board of Directors in relation to the aggregate amounts of:  | &nbsp;&nbsp;Approbation de la rémunération par l'Assemblée générale | <sup>1</sup> L'Assemblée générale approuve les propositions du Conseil d'administration en relation avec les montants maximaux suivants: |
| &nbsp;&nbsp;Approval of the Compensation by the General Meeting of Shareholders | 1.&nbsp;&nbsp;&nbsp;&nbsp;the maximum compensation of the Board of Directors until the completion of the next Ordinary General Meeting of Shareholders; | &nbsp;&nbsp;Approbation de la rémunération par l'Assemblée générale | 1.&nbsp;&nbsp;&nbsp;&nbsp;la rémunération maximale du Conseil d'administration jusqu'à la fin de l'Assemblée générale ordinaire des actionnaires suivante; |
|  | 2.&nbsp;&nbsp;&nbsp;&nbsp;the maximum fixed compensation of the Executive Committee for the following financial year; and |  | 2.&nbsp;&nbsp;&nbsp;&nbsp;la rémunération fixe maximale de la Direction exécutive pour l'année comptable suivante; et |
|  | 3.&nbsp;&nbsp;&nbsp;&nbsp;the maximum variable compensation of the Executive Committee for the current financial year. |  | 3.&nbsp;&nbsp;&nbsp;&nbsp;la rémunération variable maximale de la Direction exécutive pour l'exercice en cours. |

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| | <sup>2</sup> The Board of Directors may submit for approval by the General Meeting of Shareholders deviating, additional or conditional proposals relating to the maximum aggregate amount or maximum partial amounts for the same or different periods and/or specific compensation components and/or in relation to additional amounts for specific compensation components. |  | <sup>2</sup> Le Conseil d'administration peut soumettre à l'approbation de l'Assemblée générale des propositions divergentes, supplémentaires ou conditionnelles concernant le montant maximal total ou les montants maximaux partiels pour les mêmes périodes ou des périodes différentes et/ou des éléments de rémunération spécifiques et/ou en relation avec des montants additionnels pour des éléments de rémunération spécifiques. |
| | <sup>3</sup> In the event that the General Meeting of Shareholders does not approve a proposal of the Board of Directors, the Board of Directors shall determine, taking into account all relevant factors, the respective (maximum) aggregate amount or (maximum) partial amounts, and submit the amount(s) so determined for approval by a General Meeting of Shareholders. |  | <sup>3</sup> Si l'Assemblée générale n'approuve pas une proposition du Conseil d'administration, le Conseil d'administration détermine, en prenant en compte tous les critères pertinents, le montant (maximal) total ou des montants (maximaux) partiels respectifs, et soumet le(s) montant(s) ainsi déterminé(s) à l'approbation d'une Assemblée générale. |
| | <sup>4</sup> The Company or companies controlled by it may pay or grant compensation prior to approval by the General Meeting of Shareholders, subject to subsequent approval. |  | <sup>4</sup> La rémunération peut être versée ou octroyée par la Société ou les sociétés qu'elle contrôle avant l'approbation de l'Assemblée générale, sous réserve d'une approbation ultérieure. |
| | **Article 27** | | **Article 27** |
| &nbsp;&nbsp;Supplementary Amount for Changes to the Executive Committee | If the maximum aggregate amount of compensation already approved by the General Meeting of Shareholders is not sufficient to also cover the compensation of one or more persons who become members of the Executive Committee or are being promoted within the Executive Committee after the General Meeting of Shareholders has approved the compensation of the Executive Committee for the relevant period, then the Company or companies controlled by it shall be authorized to pay such member(s) a supplementary amount during the compensation period(s) already approved. The supplementary amount per compensation period per member shall not exceed 100% of the aggregate amount of (maximum) compensation of the Executive Committee last approved. | &nbsp;&nbsp;Montant complémentaire en cas de changements au sein de la Direction exécutive | Si le montant global maximal de la rémunération déjà approuvé par l'Assemblée générale n'est pas suffisant pour couvrir également la rémunération d'une ou plusieurs personnes devenant membre(s) de la Direction exécutive ou étant promue(s) au sein de la Direction exécutive après que l'Assemblée générale a approuvé la rémunération de la Direction exécutive pour la période visée, la Société ou toute autre société qu'elle contrôle est alors autorisée à verser à ce(s) membre(s) un montant complémentaire au cours de la (ou les) période(s) de rémunération déjà approuvée(s). Le montant complémentaire par période de compensation par membre ne doit pas dépasser 100% du montant global de la rémunération (maximale) de la Direction exécutive approuvée en dernier. |

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| | **Article 28** | | **Article 28** |
| &nbsp;&nbsp;General Compensation Principles | <sup>1</sup> The compensation of the non-executive members of the Board of Directors may consist of fixed and variable compensation elements. Total compensation shall take into account the position and level of responsibility of the recipient. | &nbsp;&nbsp;Principes généraux de rémunération | <sup>1</sup> La rémunération des membres non-exécutifs du Conseil d'administration peut être constituée d'éléments de rémunérations fixes et variables. La rémunération totale prend en compte la position et le niveau de responsabilité du bénéficiaire. |
| &nbsp;&nbsp;General Compensation Principles | <sup>2</sup> The compensation of the members of the Executive Committee may consist of fixed and variable compensation elements. Fixed compensation comprises the base salary and may consist of other compensation elements. Variable compensation may take into account the achievement of specific performance targets. Total compensation shall take into account the position and level of responsibility of the recipient. | &nbsp;&nbsp;Principes généraux de rémunération | <sup>2</sup> La rémunération des membres de la Direction exécutive peut être constituée d'éléments de rémunération fixes et variables. La rémunération fixe comprend le salaire de base et peut être constituée d'autres éléments de rémunération. La rémunération variable peut prendre en compte l'accomplissement d'objectifs de performance spécifiques. La rémunération totale prend en compte la position et le niveau de responsabilité du bénéficiaire. |
|  | <sup>3</sup> The performance targets may include individual targets, targets of the Company, group or parts thereof or targets in relation to the market, other companies or comparable benchmarks, taking into account the position and level of responsibility of the recipient. The Board of Directors or, to the extent delegated to it, the Compensation Committee shall determine the relative weight of the performance targets and the respective target values. |  | <sup>3</sup> Les objectifs de performance peuvent comprendre des objectifs personnels, des objectifs liés à la performance de la Société ou de tout ou partie du groupe ou des buts en relation avec le marché, d'autres sociétés ou d'autres repères comparables, prenant en compte la position et le niveau de responsabilité du bénéficiaire. Le Conseil d'administration ou le Comité de rémunération, dans la mesure où cette compétence lui est déléguée, détermine le poids relatif des objectifs de performance et les valeurs cibles respectives. |

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|  | <sup>4</sup> Compensation may be paid in the form of cash, shares, options or other share-based instruments or units, or in the form of other types of benefits. The Board of Directors or, to the extent delegated to it, the Compensation Committee shall determine grant, vesting, exercise, restriction and forfeiture conditions and periods. In particular, they may provide for continuation, acceleration or removal of vesting, exercise, restriction and forfeiture conditions and periods, for payment or grant of compensation based upon assumed target achievement, or for forfeiture, in each case in the event of pre-determined events such as a change of control or termination of an employment or mandate agreement. The Company may procure the required shares or other securities through purchases in the market, from treasury shares or by using conditional or authorized share capital. |  | <sup>4</sup> La rémunération peut être versée en espèces, sous forme d'actions, d'options ou d'instruments ou unités sur base d'actions ou d'autres types de prestations. Le Conseil d'administration ou le Comité de rémunération, dans la mesure où cette compétence lui a été déléguée, détermine les conditions et périodes d'octroi, d'acquisition (*vesting*), d'exercice, de restriction et de péremption. Ils peuvent en particulier prévoir la continuation, l'accélération ou la suppression des conditions ou périodes d'acquisition (*vesting*), d'exercice, de restriction et de péremption, le versement ou l'octroi d'une rémunération supposant l'atteinte des objectifs ou encore la déchéance des droits, dans chaque cas lors d'événements prédéterminés tels que, notamment, un changement de contrôle ou la fin d'un contrat de travail ou de mandat. La Société peut se procurer les actions ou autres instruments des marchés financiers requis par le biais d'achats sur le marché ou d'actions propres, ou en utilisant son capital-actions conditionnel ou autorisé. |
|  | <sup>5</sup> Compensation may be paid by the Company or companies controlled by it. |  | <sup>5</sup> La rémunération peut être versée par la Société ou tout autre société qu'elle contrôle. |
|  | **Article 29** |  | **Article 29** |
| &nbsp;&nbsp;Agreements with Members of the Board of Directors and the Executive Committee | <sup>1</sup> The Company or companies controlled by it may enter into agreements with non-executive members of the Board of Directors relating to their compensation for a fixed term or for an indefinite term. The duration and termination are subject to the term of office and the law. | &nbsp;&nbsp;Contrats avec les membres du Conseil d'administration et de la Direction exécutive | <sup>1</sup> La Société, ou toute société qu'elle contrôle, peut conclure des contrats de durée déterminée ou indéterminée avec les membres non-exécutifs du Conseil d'administration en relation avec leur rémunération. La durée et la résiliation doivent être conformes avec la durée des fonctions ainsi qu'avec les dispositions légales applicables. |

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| | <sup>2</sup> The Company or companies controlled by it may enter into employment agreements with executive members of the Board of Directors and other members of the Executive Committee for a fixed term or for an indefinite term. Fixed term agreements may have a maximum duration of one year; renewal is possible. Agreements for an indefinite term may have a notice period of maximum twelve months. |  | <sup>2</sup> La Société, ou toute société qu'elle contrôle, peut conclure des contrats de travail de durée déterminée ou indéterminée avec les membres exécutifs du conseil d'administration et les autres membres de la Direction exécutive. Les contrats de durée déterminée peuvent avoir une durée maximale d'une année; le renouvellement est possible. Les contrats de durée indéterminée peuvent prévoir un délai de congé d'au maximum douze mois. |
| | <sup>3</sup> The Company or companies controlled by it may enter into non-compete agreements with members of the Executive Committee for the time after termination of employment. Their duration shall not exceed two years, and consideration paid per year for such non-compete undertaking shall not exceed the sum of the total annual compensation of such member last paid or payable for the first time. |  | <sup>3</sup> La Société, ou toute société qu'elle contrôle, peut conclure des accords de non-concurrence avec les membres de la Direction exécutive pour la période suivant la fin des rapports de travail. Leur durée ne peut excéder deux ans, et l'indemnisation par an versée en contrepartie d'un tel accord de non concurrence ne peut excéder la somme de la dernière rémunération annuelle totale versée ou à verser pour la première fois au membre concerné. |
| | **Article 30** | | **Article 30** |
| &nbsp;&nbsp;Mandates Outside of the Group | <sup>1</sup> The number of mandates on the board of directors or the executive committee of legal entities that have to be registered in a Swiss commercial register or a similar foreign register outside the group is limited: | &nbsp;&nbsp;Mandats en dehors du groupe | <sup>1</sup> Le nombre de mandats d'administrateur et/ou au sein de la Direction exécutive d'entités juridiques tenues d'être inscrites au registre du commerce suisse ou dans un registre similaire étranger est limité: |
|  | (a)&nbsp;&nbsp;&nbsp;&nbsp;for members of the Executive Committee, to seven mandates, of which no more than two in a listed company; and |  | (a)&nbsp;&nbsp;&nbsp;&nbsp;pour les membres de la Direction exécutive, à sept mandats, dont pas plus de deux au sein de sociétés cotées; et |
|  | (b)&nbsp;&nbsp;&nbsp;&nbsp;for members of the Board of Directors, to fifteen mandates, of which no more than five in listed companies. |  | (b)&nbsp;&nbsp;&nbsp;&nbsp;pour les membres du Conseil d'administration à quinze mandats, dont pas plus de cinq au sein de sociétés cotées. |

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| | <sup>2</sup> Mandates in different legal entities being part of the same group or for the same group are deemed to be one mandate. |  | <sup>2</sup> Les mandats dans différentes entités juridiques appartenant au même groupe ou assumés pour le même groupe sont considérés comme un mandat. |
| | <sup>3</sup> Mandates in associations, charitable organizations, family trusts and foundations relating to post-retirement benefits are not subject to the above limitations. No member of the Board of Directors or the Executive Committee shall hold more than 10 such mandates. |  | <sup>3</sup> Les mandats dans des associations, organisations caritatives, fondations de famille et fondations de prévoyance professionnelle ne sont pas soumis aux limites mentionnées ci-dessus. Aucun membre du Conseil d'administration ou de la Direction exécutive ne peut exercer plus de 10 mandats de ce genre. |
| | **Article 31** | | **Article 31** |
| &nbsp;&nbsp;Post-Retirement Benefits | The Company or companies controlled by it may grant to members of the Board of Directors and the Executive Committee post-retirement benefits beyond the occupational benefit schemes which do not exceed the annual compensation of the respective member of the Board of Directors or the Executive Committee last paid or payable for the first time. | &nbsp;&nbsp;Prestations de retraite | La Société ou toute société qu'elle contrôle peut octroyer aux membres du Conseil d'administration et de la Direction exécutive des prestations de retraite allant au-delà du régime de prévoyance professionnelle n'excédant pas la rémunération annuelle du membre du Conseil d'administration ou de la Direction exécutive concerné versée ou à verser pour la première fois. |
|  | **Section 5***<br>Financial Year, Profit Allocation* |  | **Section 5***<br>Exercice, répartition du bénéfice* |
|  | **Article 32** |  | **Article 32** |

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| &nbsp;&nbsp;Financial Year, Annual and Compensation Report | <sup>1</sup> The Company's financial year shall be determined by the Board of Directors.  | &nbsp;&nbsp;Exercice social, rapport de gestion et de rémunération | <sup>1</sup> L'exercice est fixé par le Conseil d'administration. |
| &nbsp;&nbsp;Financial Year, Annual and Compensation Report | <sup>2</sup> The Board of Directors shall prepare an annual report for each financial year, comprising the annual financial statements, if required, the management report and the consolidated financial statements, as well as a compensation report. | &nbsp;&nbsp;Exercice social, rapport de gestion et de rémunération | <sup>2</sup> Le Conseil d'administration établit pour chaque exercice un rapport de gestion, qui se compose des comptes annuels et, cas échéant, du rapport annuel et des comptes de groupe, ainsi qu'un rapport de rémunération. |
|  | **Article 33** |  | **Article 33** |
| &nbsp;&nbsp;Allocation of Profit Shown on the Balance Sheet, Reserves | <sup>1</sup> The General Meeting of Shareholders shall resolve on the allocation of the profit as shown on the balance sheet in accordance with applicable law. The Board of Directors shall submit its proposals to the General Meeting of Shareholders.  | &nbsp;&nbsp;Utilisation du bénéfice résultant du bilan, réserves | <sup>1</sup> L'Assemblée générale détermine l'emploi du bénéfice résultant du bilan, sous réserve des prescriptions légales concernant la répartition du bénéfice. Le Conseil d'administration lui soumet ses propositions. |
| &nbsp;&nbsp;Allocation of Profit Shown on the Balance Sheet, Reserves | <sup>2</sup> In addition to the reserves required by law, the General Meeting of Shareholders may create other reserves.  | &nbsp;&nbsp;Utilisation du bénéfice résultant du bilan, réserves | <sup>2</sup> En sus des réserves légales, l'Assemblée générale peut constituer des réserves supplémentaires. |
|  | <sup>3</sup> Dividends that have not been collected within five years after their payment date shall inure to the Company and be allocated to the general statutory reserves. |  | <sup>3</sup> Les dividendes qui n'ont pas été perçus dans un délai de cinq ans après leur date de paiement sont prescrits et sont alloués aux réserves statutaires de la Société. |
|  | **Section 6***<br>Dissolution, Liquidation* |  | **Section 6***<br>Dissolution, liquidation* |
|  | **Article 34** |  | **Article 34** |
| &nbsp;&nbsp;Dissolution, Liquidation | <sup>1</sup> The General Meeting of Shareholders may at any time resolve to dissolve and liquidate the Company in accordance with the law and the provisions set forth in these articles of association. | &nbsp;&nbsp;Dissolution, liquidation | <sup>1</sup> L'Assemblée générale peut décider en tout temps de la dissolution et de la liquidation de la Société en conformité avec les prescriptions légales et statutaires. |

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Articles of Association of ADC Therapeutics SA

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| | |
|:---|:---|
| <sup>2</sup> The liquidation shall be effected by the Board of Directors, unless the General Meeting of Shareholders appoints other persons as liquidators. | <sup>2</sup> La liquidation a lieu par les soins du Conseil d'administration, à moins que l'Assemblée générale ne désigne d'autres liquidateurs. |
| <sup>3</sup> The liquidation of the Company shall be effected pursuant to applicable law. The liquidators shall be entitled to sell assets (real estate included) in private transactions. | <sup>3</sup> La liquidation de la Société s'effectue conformément au droit applicable. Les liquidateurs sont autorisés à vendre des actifs (immeubles y compris) de gré à gré. |
| <sup>4</sup> Upon discharge of all liabilities of the Company, the assets shall be distributed to the shareholders in proportion to the share capital, unless these articles of association provide otherwise. | <sup>4</sup> Après paiement des dettes de la Société, l'actif est réparti entre les actionnaires au prorata du capital-actions, à moins que les présents statuts n'en disposent autrement. |
| **Section 7***<br>Notices, Communications* | **Section 7***<br>Communications, organe de publication* |
| **Article 35** | **Article 35** |

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Articles of Association of ADC Therapeutics SA

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Notices, Communications | <sup>1</sup> The official means of publication of the Company shall be the Swiss Official Gazette of Commerce.  | &nbsp;&nbsp;Communications, organe de publication | <sup>1</sup> L'organe de publication de la Société est la Feuille officielle suisse du commerce.  |
| &nbsp;&nbsp;Notices, Communications | <sup>2</sup> To the extent that personal notification is not mandated by law, all communications to the shareholders shall be deemed valid if published in the Swiss Official Gazette of Commerce. Written communications by the Company to its shareholders shall be sent by ordinary mail to the last address of the shareholder or authorized recipient entered in the share register. If neither these articles of association nor the law mandatorily require a communication to be in written form, the Company can validly send communications to the shareholders to the last e-mail address of the shareholder or authorized recipient communicated to the Company, through the banking system, electronically, by publication in the Swiss Official Gazette of Commerce or in any other way. To comply with a written form, a facsimile or electronic copy of a signature shall be sufficient. | &nbsp;&nbsp;Communications, organe de publication | <sup>2</sup> Dans la mesure où la loi n'exige pas de notification personnelle, toutes les communications aux actionnaires publiées dans la Feuille officielle suisse du commerce seront réputées valides. Les communications écrites adressées par la Société à ses actionnaires seront envoyées par courrier ordinaire à la dernière adresse de l'actionnaire ou de son bénéficiaire autorisé qui figure sur le registre des actions. Si ni la loi ni les présents statuts n'imposent qu'une communication revête la forme écrite, la Société peut valablement envoyer une telle communication aux actionnaires par courriel, à la dernière adresse e-mail de l'actionnaire ou de son bénéficiaire autorisé communiquée à la Société, par l'intermédiraire du système bancaire, électroniquement, par publication dans la Feuille officielle suisse du commerce ou de toute autre manière. Un téléfax ou une copie électronique de la signature suffisent pour se conformer à la forme écrite. |
|  | **Section 8***<br>Authoritative Language* |  | **Section 8***<br>Langue faisant foi* |
|  | **Article 36** |  | **Article 36** |
| &nbsp;&nbsp;Authoritative Language | In the event of discrepancies between the French and English version of these articles of association, the French version shall prevail. | &nbsp;&nbsp;Langue faisant foi | En cas de désaccord entre la version française et la version anglaise, la version française des présents statuts prévaut. |

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Articles of Association of ADC Therapeutics SA

Lausanne, le 1<sup>er</sup> novembre 2022

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## Exhibit 2.2

**EXHIBIT 2.1**

**DESCRIPTION OF SHARE CAPITAL AND ARTICLES OF ASSOCIATION**

**The Company**

We are a Swiss stock corporation (société anonyme) organized under the laws of Switzerland. We were incorporated as a Swiss limited liability company (société à responsabilité limitée) on June 6, 2011 with our registered office and domicile in Epalinges, Canton of Vaud, Switzerland. We converted to a Swiss stock corporation under the laws of Switzerland on October 13, 2015. Our domicile is in Epalinges, Canton of Vaud, Switzerland. Our registered office and head office is currently located at Biopôle, Route de la Corniche 3B, 1066 Epalinges, Switzerland.

As of January 1, 2023, certain amendments to the law governing, among other things, Swiss stock corporations, took effect. Provisions in the articles of association or regulations of companies that do not comply with the new rules continue to be effective until they are amended, but for not longer than two years after January 1, 2023. Our articles of association have not yet been amended to reflect the new provisions of Swiss corporation law.

Unless otherwise noted, the following is a summary of the material provisions of our share capital and our articles of association that are in effect on the date of this Annual Report.

**Share Capital**

As of December 31, 2022, our share capital as registered with the commercial register of the Canton of Vaud, Switzerland (the "Commercial Register") amounted to 89,041,946 common shares with a par value of CHF 0.08 per share, 80,642,527 of which were outstanding.

**Changes in Our Share Capital During the Last Three Fiscal Years**

In this section, share amounts are presented as of the date of the relevant transaction. Since January 1, 2020, our share capital has changed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the five-to-four reverse share split of all issued shares effected on April 24, 2020, each of our issued shares was consolidated into 0.8 shares of the same class with a par value of CHF 0.08 per share, and an aggregate of 44 common shares were converted into 6 Class C preferred shares, 12 Class D preferred shares and 26 Class E preferred shares, each with a par value of CHF 0.08;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On May 15, 2020, our share capital as registered with the Commercial Register on May 15, 2020, was increased by issuing 17,432,500 common shares with a par value of CHF 0.08 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 28, 2020, our share capital as registered with the Commercial Register on September 28, 2020, was increased by issuing 6,000,000 common shares with a par value of CHF 0.08 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On April 1, 2021, our share capital as registered with the Commercial Register on April 8, 2021, was increased by issuing 1,500,000 common shares with a par value of CHF 0.08 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 5, 2022, we issued 733,568 common shares out of our authorized share capital. In addition, we amended our articles of association to reflect the issuance of 2,390,297 common shares out of our conditional share capital that occurred on August 15, 2022; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 1, 2022, we issued 7,648,081 common shares out of our authorized share capital.

**Registration Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On August 15, 2022, we entered into a registration rights agreement with Deerfield Partners, L.P. and Deerfield Private Design Fund IV, L.P. that provides them with certain registration rights with respect to the common shares issuable to them upon the exercise of their warrants. We have filed a registration statement as required by the registration rights agreement. We are required to keep such registration statement effective until all such common shares have been sold, are eligible to be immediately sold to the public without registration or restriction, are no longer outstanding, are no longer held by persons entitled to registration rights or until the date that is one month following expiry of their warrants.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On August 15, 2022, we entered into a registration rights agreement with OR Opportunistic DL (C), L.P., Owl Rock Opportunistic Master Fund II, L.P., Oaktree LSL Holdings EURRC S.à r.l., Oaktree Specialty Lending Corporation, Oaktree AZ Strategic Lending Fund, L.P., Oaktree Strategic Credit Fund, Oaktree Diversified Income Fund, Inc. and Oaktree Loan Acquisition Fund, L.P. that provides them with certain registration rights with respect to the common shares issuable upon the exercise of their warrants and the common shares issued to OR Opportunistic DL (C), L.P. and Owl Rock Opportunistic Master Fund II, L.P. pursuant to a share purchase agreement. We have filed a registration statement as required by the registration rights agreement. We are required to keep such registration statement effective until all such common shares have been sold, are eligible to be immediately sold to the public without registration or restriction, are no longer outstanding, are no longer held by persons entitled to registration rights or the date that is three years from the initial effective date of the registration statement. The registration rights agreement includes certain demand registration rights and piggyback registration rights exercisable if we do not maintain current public information for Rule 144 purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On February 6, 2023, we entered into a registration rights agreement with Oaktree Fund Administration LLC, OCM Strategic Credit Investments S.à r.l., OCM Strategic Credit Investments 2 S.à.r.l., OCM Strategic Credit Investments 3 S.à r.l., Oaktree Gilead Investment Fund AIF (Delaware), L.P., Oaktree Huntington-GCF Investment Fund (Direct Lending AIF), L.P., Oaktree Specialty Lending Corporation and Pathway Strategic Credit Fund III, L.P. that provides them with certain registration rights with respect to the common shares received after a default by A.T. Holdings II Sarl and in the event of a foreclosure or other exercise of remedies under their lending arrangements with A.T. Holdings II Sàrl. If requested by such parties, we are required to file a registration statement with respect to such common shares. We are required to keep such registration statement effective until all such common shares have been sold, are no longer outstanding, are no longer held by persons entitled to registration rights or the date that is three years from the initial effective date of the registration statement.

**Dividend Policy**

We have never declared or paid cash dividends on our share capital. We intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business and we do not anticipate paying any cash dividends in the foreseeable future. In addition, agreements governing our indebtedness, including the loan agreement and guaranty, dated August 15, 2022 (the "Loan Agreement"), among us, ADC Therapeutics (UK) Limited, ADC Therapeutics America, Inc., the lenders party thereto and Owl Rock Opportunistic Master Fund I, L.P., as administrative agent and collateral agent, limit our ability to pay dividends. Any future determination related to dividend policy will be made at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects and other factors our board of directors may deem relevant.

**Articles of Association**

***Ordinary Capital Increase, Capital Range and Conditional Share Capital***

Under Swiss law, we may increase our share capital (capital-actions) with a resolution of the general meeting of shareholders (ordinary capital increase) that must be carried out by the board of directors within six months of the respective general meeting in order to become effective. Under our articles of association and Swiss law, in the case of subscription and increase against payment of contributions in cash, a resolution passed by a majority of the shares represented at the general meeting of shareholders is required. In the case of subscription and increase against contributions in kind or to fund acquisitions in kind, when shareholders' statutory pre-emptive subscription rights or advance subscription rights are limited or withdrawn or where transformation of freely disposable equity into share capital is involved, a resolution passed by two-thirds of the shares represented at a general meeting of shareholders and the majority of the par value of the shares represented is required.

As of January 1, 2023 companies can no longer adopt, increase or extend authorized share capital (*capital-actions autorisé*). Instead, companies may adopt a capital range as further explained below. As of the date of this prospectus, our articles of association still provide for authorized share capital (see "Description of Share Capital and Articles of Association—Our Authorized Share Capital").

Furthermore, under the Swiss Code of Obligations (Code des obligations) (the "CO"), our shareholders, by a resolution passed by two-thirds of the shares represented at a general meeting of shareholders and the majority of the par value of the shares represented, can:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adopt conditional share capital *(capital-actions conditionnel*) in the aggregate amount of up to 50% of the share capital for the purpose of issuing shares in connection with, among other things, option and conversion rights granted to shareholders, the creditors of bonds and similar debt instruments, employees, members of the board of directors of the Company or of any group company, or to any third parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may, in the form of capital range (*marge de fluctuation du capital*), empower our board of directors to increase and/or decrease our share capital by up to 50% of the share capital, by issuing or canceling shares,

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or by increasing or decreasing the par value of shares, including through the creation of conditional share capital; such capital range is to be utilized by the board of directors within a period determined by the shareholders but not exceeding five years from the date of the shareholder approval.

***Pre-Emptive and Advance Subscription Rights***

Pursuant to the CO, shareholders have pre-emptive subscription rights (*droits de souscription préférentiels*) to subscribe for new issuances of shares. With respect to conditional capital, shareholders have (i) pre-emptive subscription rights for the subscription of option rights and (ii) advance subscription rights (*droit de souscription préalable*) for the subscription of bonds and similar debt instruments to which option or conversion rights are attached.

A resolution passed at a general meeting of shareholders by two-thirds of the shares represented and the majority of the par value of the shares represented may authorize our board of directors to withdraw or limit pre-emptive subscription rights or advance subscription rights in certain circumstances.

If pre-emptive subscription rights are granted, but not exercised, the board of directors may allocate the unexercised pre-emptive subscription rights at its discretion.

***Our Authorized Share Capital***

Under our articles of association, our board of directors is authorized at any time, including to prevent takeovers and changes in control, until June 9, 2023 to increase our nominal share capital by a maximum aggregate amount of CHF 2,460,268.08 through the issuance of not more than 30,753,351 shares, which would have to be fully paid-in, each with a par value of CHF 0.08 per share.

Increases in partial amounts are permitted. The board of directors has the power to determine the type of contributions, the issue price and the date on which the dividend entitlement starts.

With respect to our authorized share capital, the board of directors is authorized by our articles of association to withdraw or to limit the pre-emptive subscription rights of shareholders, and to allocate them to third parties or to us, in the event that the newly issued shares are issued under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the issue price of the new registered shares is determined by reference to the market price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for raising of capital (including private placements) in a fast and flexible manner, which would not be possible, or might only be possible with great difficulty or delays or at significantly less favorable conditions, without the exclusion of the statutory pre-emptive subscription rights of the existing shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the acquisition of an enterprise, parts of an enterprise or participations, for the acquisition of products, intellectual property or licenses by or for investment projects of the Company or any of its group companies, or for the financing or refinancing of any of such transactions through a placement of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for purposes of broadening the shareholder constituency of the Company in certain geographic, financial or investor markets, for purposes of the participation of strategic partners, or in connection with the listing of new shares on domestic or foreign stock exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for purposes of granting an over-allotment option or an option to purchase additional shares in a placement or sale of shares to the respective initial purchaser(s) or underwriter(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the participation of members of the board of directors, members of the executive committee, employees, contractors, consultants or other persons performing services for the benefit of the Company or any of its group companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following a shareholder or a group of shareholders acting in concert having accumulated shareholdings in excess of 20% of our share capital registered in the Commercial Register without having submitted to all other shareholders a takeover offer recommended by the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the defense of an actual, threatened or potential takeover bid, that the board of directors, upon consultation with an independent financial adviser retained by it, has not recommended to the shareholders acceptance on the basis that the board of directors has not found the takeover bid to be financially fair to the shareholders or not to be in the Company's interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for other valid grounds in the sense of Article 652b para. 2 of the CO.

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This authorization is exclusively linked to the particular available authorized share capital set out in the respective article. If the period to increase our share capital out of authorized share capital lapses without having been used by the board of directors, the authorization to withdraw or to limit the pre-emptive subscription rights lapses simultaneously with such capital.

***Our Conditional Share Capital***

*Conditional Share Capital for Warrants and Convertible Bonds*

Our nominal share capital may be increased, including to prevent takeovers and changes in control, by a maximum aggregate amount of CHF 1,432,776.24 through the issuance of not more than 17,909,703 common shares, which would have to be fully paid-in, each with a par value of CHF 0.08 per share, by the exercise of option and conversion rights granted in connection with warrants, convertible bonds or similar instruments of the Company or one of our subsidiaries. Shareholders will not have pre-emptive subscription rights in such circumstances, but will have advance subscription rights to subscribe for such warrants, convertible bonds or similar instruments. The holders of warrants, convertible bonds or similar instruments are entitled to the new shares upon the occurrence of the applicable conversion feature.

When issuing convertible bonds, warrants or similar instruments, the board of directors is authorized to withdraw or to limit the advance subscription right of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the purpose of financing or refinancing, or the payment for, the acquisition of enterprises, parts of enterprises, participations, intellectual property rights, licenses or investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the issuance occurs in domestic or international capital markets, including private placements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following a shareholder or a group of shareholders acting in concert having accumulated shareholdings in excess of 20% of the share capital registered in the Commercial Register without having submitted to all other shareholders a takeover offer recommended by the board of directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for the defense of an actual, threatened or potential takeover bid that the board of directors, upon consultation with an independent financial adviser retained by it, has not recommended to the shareholders to accept on the basis that the board of directors has not found the takeover bid to be financially fair to the shareholders or not to be in the Company's interest.

To the extent that the advance subscription rights are withdrawn or limited, (i) the convertible bonds, warrants or similar instruments are to be issued at market conditions; (ii) the term to exercise the convertible bonds, warrants or similar instruments may not exceed ten years from the date of issue of the respective instrument and (iii) the conversion, exchange or exercise price of the convertible bonds, warrants or similar instruments has to be set with reference to or be subject to change based upon the valuation of the Company's equity or market conditions.

*Conditional Share Capital for Equity Incentive Plans*

***Uncertificated Securities***

Our shares are in the form of uncertificated securities (*droits-valeurs*, within the meaning of Article 973c of the CO). In accordance with Article 973c of the CO, we maintain a non-public register of uncertificated securities (*registre des droits-valeurs*). We may at any time convert uncertificated securities into share certificates (including global certificates), one kind of certificate into another, or share certificates (including global certificates) into uncertificated securities. Following entry in the share register, a shareholder may at any time request from us a written confirmation in respect of his or her shares. Shareholders are not entitled, however, to request the conversion and/or printing and delivery of share certificates. We may print and deliver certificates for shares at any time.

***General Meeting of Shareholders***

*Ordinary/Extraordinary Meetings, Powers*

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The general meeting of shareholders is our supreme corporate body. Under Swiss law, an annual general meeting of shareholders must be held annually within six months after the end of a corporation's financial year. In our case, this generally means on or before June 30. In addition, extraordinary general meetings of shareholders may be held.

A general meeting of shareholders may take place at different places simultaneously if the votes of the participants are immediately transmitted to all meeting venues (multilocal shareholders' meeting). If the articles of association so permit, a general meeting of shareholders may be held outside Switzerland. The board of directors may allow shareholders that are not present at the meeting venue of the general meeting of shareholders to participate and exercise their rights electronically ("hybrid shareholder meeting"). A general meeting of shareholders without a physical meeting venue but that takes place using electronic means ("virtual shareholder meeting") may be held, subject to certain legal requirements and if the articles of association so allow. Our articles of association currently do not provide for general meetings of shareholders outside Switzerland or virtual shareholder meetings.

According to our articles of association, the following powers are vested exclusively in the general meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adopting and amending the articles of association, including the change of a company's purpose or domicile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• electing the members of the board of directors, the chairman of the board of directors, the members of the compensation committee, the auditors and the independent proxy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the business report, the annual statutory and consolidated financial statements, and deciding on the allocation of profits as shown on the balance sheet, in particular with regard to dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the aggregate amount of compensation of members of the board of directors and the executive committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discharging the members of the board of directors and the executive committee from liability with respect to their conduct of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dissolving a company with or without liquidation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• deciding matters reserved to the general meeting of shareholders by law or the articles of association or submitted to it by the board of directors.

In addition, the following powers are vested exclusively in the general meeting of shareholders by operation of statutory law: (i) determination of the interim dividend and approval of the requisite interim financial statements and (ii) repayment of the statutory capital reserve (*réserve légale*).

An extraordinary general meeting of shareholders may be called by a resolution of the board of directors or the general meeting of shareholders or, under certain circumstances, by a company's auditors, liquidator or the representatives of bondholders, if any. In addition, our articles of association require the board of directors to convene an extraordinary general meeting of shareholders if shareholders representing at least 10% of our share capital request such general meeting of shareholders in writing. The amended Swiss corporation law requires the board of directors to convene an extraordinary general meeting of shareholders if shareholders representing at least 5% of the share capital or of the voting rights so request in writing. Our articles of association do not yet comply with this lower threshold. A request for an extraordinary general meeting of shareholders must set forth the items to be discussed and the proposals to be acted upon. Further, the board of directors must convene an extraordinary general meeting of shareholders and propose financial restructuring measures if, based on our stand-alone annual statutory balance sheet, half of our share capital and statutory reserves are not covered by our assets and a contemplated restructuring measure falls within the competence of the general meeting of shareholders.

*Voting and Quorum Requirements*

Shareholder resolutions and elections (including elections of members of the board of directors) require the affirmative vote of the majority of shares represented at the general meeting of shareholders, unless otherwise stipulated by law or our articles of association.

Under our articles of association, a resolution of the general meeting of shareholders passed by two-thirds of the votes and the majority of the par value of the shares, each as represented at the meeting, is required for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amending the Company's corporate purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating shares with preference rights;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cancelling or amending the transfer restrictions of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating authorized or conditional share capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing share capital out of equity, against contributions in-kind or for the purpose of acquiring specific assets and granting specific benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting or withdrawing shareholder's pre-emptive subscription rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing a company's domicile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amending or repealing the voting and recording restrictions, the provision setting a maximum board size or the indemnification provision for the board of directors and the executive committee set forth in our articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• converting registered shares into bearer shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• removing the chairman or any member of the board of directors before the end of his or her term of office; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dissolving or liquidating the Company.

In addition, a resolution of the general meeting of shareholders passed by two-thirds of the votes and the majority of the par value of the shares, each as represented at the meeting is, by operation of statutory law required for: (i) a consolidation of shares (reverse split); (ii) a capital increase through contribution by set-off; (iii) the introduction of a capital range (*marge de fluctuation du capital*); (iv) a conversion of participation certificates into shares; (v) a change of currency of the share capital; (vi) the introduction of a casting vote of the chairperson at the general meeting of shareholders; (vii) a provision in the articles of association regarding the holding of the general meeting of shareholders outside Switzerland; (viii) a delisting of the equity securities; and (ix) the introduction of an arbitration clause in the articles of association.

The same voting requirements apply to resolutions regarding transactions among corporations based on Switzerland's Federal Act on Mergers, Demergers, Transformations and the Transfer of Assets of 2003, as amended (the "Swiss Merger Act"). See "—Articles of Association—Compulsory Acquisitions; Appraisal Rights."

In accordance with Swiss law and generally accepted business practices, our articles of association do not provide quorum requirements generally applicable to general meetings of shareholders. To this extent, our practice varies from NYSE listing standards, which require an issuer to provide in its bylaws for a generally applicable quorum, and that such quorum may not be less than one-third of the outstanding voting shares.

*Notice*

General meetings of shareholders must be convened by the board of directors at least 20 days before the date of the meeting. The general meeting of shareholders is convened by way of a notice appearing in our official publication medium, currently the Swiss Official Gazette of Commerce. Registered shareholders may also be informed by ordinary mail or e-mail. The notice of a general meeting of shareholders must state the date, the starting time, the form and location of the meeting, the items on the agenda, the motions to the shareholders including a short explanation for these motions, the name and address of the independent representative and, in case of elections, the names of the nominated candidates. A resolution on a matter which is not on the agenda may not be passed at a general meeting of shareholders, except for motions to convene an extraordinary general meeting of shareholders or to initiate a special investigation, on which the general meeting of shareholders may vote at any time. No previous notification is required for motions concerning items included in the agenda or for debates that do not result in a vote.

All owners or representatives of our shares may, if no objection is raised, hold a general meeting of shareholders without complying with the formal requirements for convening general meetings of shareholders (a universal meeting). This universal meeting of shareholders may discuss and pass binding resolutions on all matters within the purview of the general meeting of shareholders, provided that the owners or representatives of all the shares are present at the meeting.

*Agenda Requests*

Pursuant to our articles of association, one or more shareholders whose combined shareholdings represent the lower of (i) one tenth of our share capital and (ii) an aggregate par value of at least CHF 1,000,000 may request that an item be included in the agenda for a general meeting of shareholders. The amended Swiss corporation law gives one or more shareholders whose combined shareholdings represent 0.5% of our voting rights or of our share capital

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the right to request that an item including a proposal, or a proposal with respect to an existing agenda item, be included in the agenda of a general meeting of shareholders. Our articles of association do not yet comply with this lower threshold.

To be timely, the shareholder's request must be received by us generally at least 45 calendar days in advance of the meeting. The request must be made in writing and contain, for each of the agenda items, the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a brief description of the business desired to be brought before the general meeting of shareholders and the reasons for conducting such business at the general meeting of shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the motions regarding the agenda item;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the name and address, as they appear in the share register, of the shareholder proposing such business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of shares which are beneficially owned by such shareholder (including documentary support of such beneficial ownership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the dates upon which the shareholder acquired such shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any material interest of the proposing shareholder in the proposed business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a statement in support of the matter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other information required under the applicable laws and stock exchange rules.

In addition, if the shareholder intends to solicit proxies from the shareholders of a company, such shareholder shall notify the company of this intent in accordance with SEC Rule 14a-4 and/or Rule 14a-8.

Our business report, the compensation report and the auditor's report must be made available for inspection by the shareholders at our registered office no later than 20 days prior to the general meeting of shareholders. Shareholders of record may be notified of this in writing.

***Voting Rights***

Each of our common shares entitles a holder to one vote. The common shares are not divisible. The right to vote and the other rights of share ownership may only be exercised by shareholders (including any nominees) or usufructuaries who are entered in the share register at a cut-off date determined by the board of directors. Those entitled to vote in the general meeting of shareholders may be represented by the independent proxy holder (annually elected by the general meeting of shareholders), by its legal representative or by another registered shareholder with written authorization to act as proxy. The chairman has the power to decide whether to recognize a power of attorney.

Our articles of association contain provisions that prevent investors from acquiring voting rights exceeding 15% of our issued share capital. Specifically, if an individual or legal entity acquires common shares and, as a result, directly or indirectly, has voting rights with respect to more than 15% of the registered share capital recorded in the Commercial Register, the registered shares exceeding the limit of 15% shall be entered in the share register as shares without voting rights (*limitation à l'inscription*). This restriction applies equally to parties acting in concert and to shares held or acquired via a nominee, including via Cede & Co., New York (or any successor), as the nominee of The Depository Trust Company ("DTC"), New York, acting in its capacity as clearing nominee. Specifically, if shares are being held by a nominee for third-party beneficiaries, which control (alone or together with third parties) voting rights with respect to more than 15% of the share capital recorded in the Commercial Register, our articles of association provide that the board of directors may cancel the registration of the shares with voting rights held by such nominee in excess of the limit of 15%. Furthermore, our articles of association contain provisions that allow the board of directors to make the registration with voting rights of shares held by a nominee subject to conditions, limitations and reporting requirements or to impose or adjust such conditions, limitations and requirements once registered. However, any shareholders who held more than 15% prior to our initial public offering remain registered with voting rights for such shares. Furthermore, the board of directors may in special cases approve exceptions to these restrictions.

***Dividends and Other Distributions***

Our board of directors may propose to shareholders that a dividend or interim dividend or other distribution be paid but cannot itself authorize the distribution. Dividend and interim dividend payments require a resolution passed by a majority of the shares represented at a general meeting of shareholders. In addition, our auditors must confirm that the dividend proposal of our board of directors conforms to Swiss statutory law and our articles of association.

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Under Swiss law, we may pay dividends only if we have sufficient distributable profits from the previous business year (*bénéfice de l'exercice*) or brought forward from the previous business years (*report des bénéfices*), or if we have distributable capital reserves (*réserve légale issue du capital*), each as evidenced by audited stand-alone statutory annual or interim financial statements prepared pursuant to Swiss law, and after allocations to reserves required by Swiss law and by the articles of association have been deducted..

Under the CO at least 5% of our annual profit must be retained as statutory profit reserve (*réserve légale*). If there is a loss carried forward, such loss must be eliminated before allocation to the statutory profit reserve. The statutory profit reserve shall be accumulated until it reaches, together with the statutory capital reserve, 50% of our share capital recorded in the Commercial Register. In addition, we have to allocate, among other things, the net proceeds of share issuances to the statutory capital reserve. The CO permits us to accrue additional reserves. Further, a purchase of our own shares (whether by us or a subsidiary) reduces the distributable reserves in an amount corresponding to the purchase price of such own shares. Finally, the CO under certain circumstances requires the creation of revaluation reserves which are not distributable.

Distributions out of issued share capital (i.e., the aggregate par value of our issued shares) are not allowed and may be made only by way of an ordinary capital reduction or within a capital range that (also) allows for a capital reduction (see "Description of Share Capital and Articles of Association—Articles of Association—Ordinary Capital Increase, Capital Range and Conditional Share Capital"). An ordinary capital reduction requires a resolution passed by a majority of the shares represented at a general meeting of shareholders. The board of directors must publish a call to creditors in the Swiss Official Gazette of Commerce in which creditors are advised that they may request, subject to certain conditions, security for their claims within 30 days of the publication of the creditor call. A licensed audit expert must then confirm, based on the results of the call to creditors, that the claims of the creditors remain fully covered despite the reduction in our share capital recorded in the Commercial Register. If all requirements for an ordinary capital reduction have been met, the board of directors has to amend the articles of association in a public deed. Our share capital may be reduced below CHF 100,000 only if and to the extent that at the same time the statutory minimum share capital of CHF 100,000 is reestablished by sufficient new fully paid-up capital. An ordinary capital reduction must be completed within six months after the resolution of the general meeting of shareholders.

Our board of directors determines the date on which the dividend entitlement starts. Dividends are usually due and payable shortly after the shareholders have passed the resolution approving the payment, but shareholders may also resolve at the annual general meeting of shareholders to pay dividends in quarterly or other installments.

***Transfer of Shares***

Shares in uncertificated form (*droits-valeurs*) may only be transferred by way of assignment. Shares or the beneficial interest in shares, as applicable, credited in a securities account may only be transferred when a credit of the relevant intermediated securities to the acquirer's securities account is made in accordance with applicable rules. Our articles of association provide that in the case of securities held with an intermediary such as a registrar, transfer agent, trust corporation, bank or similar entity, any transfer, grant of a security interest or usufructuary right in such intermediated securities and the appurtenant rights associated therewith requires the cooperation of the intermediary in order for such transfer, grant of a security interest or usufructuary right to be valid against us.

Voting rights may be exercised only after a shareholder has been entered in the share register (*registre des actions*) with his or her name and address (in the case of legal entities, the registered office) as a shareholder with voting rights. For a discussion of the restrictions applicable to the control and exercise of voting rights, see "Description of Share Capital and Articles of Association—Articles of Association—Voting Rights."

***Inspection of Books and Records***

Under the CO, a shareholder has a right to inspect the share register with respect to his or her own shares and otherwise to the extent necessary to exercise his or her shareholder rights. No other person has a right to inspect the share register. Shareholders holding in the aggregate at least 5% of our nominal share capital or of our voting rights have the right to inspect our books and correspondence, subject to the safeguarding of our business secrets and other legitimate interests. Our board of directors is required to decide on an inspection request within four months after receipt of such request. Denial of the request will need to be justified in writing. If an inspection request is denied by the board of directors, shareholders may request the order of an inspection by the court within thirty days. See "Comparison of Swiss Law and Delaware Law—Inspection of books and records."

***Special Investigation***

If a shareholder has exercised its information or inspection rights, such shareholder may propose to the general meeting of shareholders that specific facts be examined by a special examiner in a special investigation. If the general meeting of shareholders approves the proposal, we or any shareholder may, within 30 calendar days after the general meeting of shareholders, request a court at our registered office (currently Epalinges, Canton of Vaud,

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Switzerland) to appoint a special examiner. If the general meeting of shareholders rejects the request, one or more shareholders representing at least 5% of our share capital or voting rights may request that the court appoint a special examiner. The court will issue such an order if the petitioners can demonstrate that members of the board of directors or our executive committee infringed the law or our articles of association and that such violation is suitable to cause a damage to the Company or the shareholders. The costs of the investigation would generally be allocated to us and only in exceptional cases to the petitioners.

***Compulsory Acquisitions; Appraisal Rights***

Business combinations and other transactions that are governed by the Swiss Merger Act (i.e., mergers, demergers, transformations and certain asset transfers) are binding on all shareholders. A statutory merger or demerger requires approval of two-thirds of the shares represented at a general meeting of shareholders and the majority of the par value of the shares represented.

If a transaction under the Swiss Merger Act receives all of the necessary consents, all shareholders are compelled to participate in such transaction.

Swiss corporations may be acquired by an acquirer through the direct acquisition of the shares of the Swiss corporation. The Swiss Merger Act provides for the possibility of a so-called "cash-out" or "squeeze-out" merger with the approval of holders of 90% of the issued shares. In these limited circumstances, minority shareholders of the corporation being acquired may be compensated in a form other than through shares of the acquiring corporation (for instance, through cash or securities of a parent corporation of the acquiring corporation or of another corporation). For business combinations effected in the form of a statutory merger or demerger and subject to Swiss law, the Swiss Merger Act provides that if equity rights have not been adequately preserved or compensation payments in the transaction are unreasonable, a shareholder may request the competent court to determine a reasonable amount of compensation.

In addition, under Swiss law, the sale of "all or substantially all of our assets" by us may require the approval of two-thirds of the number of shares represented at a general meeting of shareholders and the majority of the par value of the shares represented. Whether a shareholder resolution is required depends on the particular transaction, including whether the following test is satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a core part of our business is sold without which it is economically impracticable or unreasonable to continue to operate the remaining business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our assets, after the divestment, are not invested in accordance with our corporate purpose as set forth in the articles of association; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the proceeds of the divestment are not earmarked for reinvestment in accordance with our corporate purpose but, instead, are intended for distribution to our shareholders or for financial investments unrelated to our corporate purpose.

A shareholder of a Swiss corporation participating in certain major corporate transactions may, under certain circumstances, be entitled to appraisal rights. As a result, such shareholder may, in addition to the consideration (be it in shares or in cash) receive an additional amount to ensure that the shareholder receives the fair value of the shares held by the shareholder. Following a statutory merger or demerger, pursuant to the Swiss Merger Act, shareholders can file an appraisal action against the surviving company. If the consideration is deemed inadequate, the court will determine an adequate compensation payment.

***Board of Directors***

Our articles of association provide that the board of directors shall consist of at least three and not more than 12 members.

The members of the board of directors and the chairman are elected annually by the general meeting of shareholders for a period until the completion of the subsequent annual general meeting of shareholders and are eligible for re-election. Each member of the board of directors must be elected individually.

*Powers*

According to our articles of association, the board of directors has the following non-delegable and inalienable powers and duties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ultimate direction of the business of the Company and issuing of the relevant directives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laying down the organization of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• formulating accounting procedures, financial controls and financial planning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• nominating and removing persons entrusted with the management and representation of the Company and regulating the power to sign for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ultimate supervision of those persons entrusted with management of the Company, with particular regard to adherence to law, our articles of association, and regulations and directives of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issuing the business report and the compensation report, and preparing for the general meeting of shareholders and carrying out its resolutions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• informing the court in case of over-indebtedness.

By operation of statutory law, the board of directors has the additional non-delegable and inalienable power and duty to submit an application for debt-restructuring moratorium if needed.

The board of directors may, while retaining such non-delegable and inalienable powers and duties, delegate some of its powers, in particular direct management, to a single or to several of its members, committees or to third parties (such as executive officers) who need be neither members of the board of directors nor shareholders. Pursuant to Swiss law and our articles of association, details of the delegation and other procedural rules such as quorum requirements have been set in the organizational rules established by the board of directors.

*Indemnification of Executive Officers and Directors*

Subject to Swiss law, our articles of association provide for indemnification of the existing and former members of the board of directors and the executive committee and their heirs, executors and administrators, against liabilities arising in connection with the performance of their duties in such capacity, and permits us to advance the expenses of defending any act, suit or proceeding to our directors and executive officers to the extent not included in insurance coverage or advanced by third parties.

In addition, under general principles of Swiss employment law, an employer may be required to indemnify an employee against losses and expenses incurred by such employee in the proper execution of his or her duties under the employment agreement with the employer. See "Comparison of Swiss Law and Delaware Law—Indemnification of directors and executive officers and limitation of liability."

We have entered into indemnification agreements with each of the members of our board of directors and executive officers.

*Conflicts of Interest, Management Transactions*

The members of the board of directors and the executive committee are required to immediately and fully inform the board of directors about conflicts of interests concerning them. The board of directors is furthermore required to take measures in order to protect the interests of the company. More generally, the CO requires our directors and executive officers to safeguard the Company's interests and imposes a duty of loyalty and duty of care on our directors and executive officers. This rule is generally understood to disqualify directors and executive officers from participation in decisions that directly affect them. Our directors and executive officers are personally liable to us for breaches of these obligations. In addition, Swiss law contains provisions under which directors and all persons engaged in the Company's management are liable to the Company, each shareholder and the Company's creditors for damages caused by an intentional or negligent violation of their duties. Furthermore, Swiss law contains a provision under which payments made to any of the Company's shareholders or directors or any person related to any such shareholder or director, other than payments made at arm's length, must be repaid to the Company if such shareholder or director acted in bad faith.

Our board of directors has adopted a Code of Business Conduct and Ethics and other policies that cover a broad range of matters, including the handling of conflicts of interest.

*Principles of the Compensation of the Board of Directors and the Executive Committee*

Pursuant to Swiss law, the aggregate amount of compensation of the board of directors and the persons whom the board of directors has, fully or partially, entrusted with the management (which we refer to as our "executive committee") of the Company has to be submitted to our shareholders for approval each year. Our executive committee currently comprises the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, the Chief Scientific Officer and the Chief Legal Officer.

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The board of directors must issue, on an annual basis, a written compensation report that must be reviewed by our auditors. The compensation report must disclose, among other things, all compensation granted by the Company, directly or indirectly, to current members of the board of directors and the executive committee and, to the extent related to their former role within the Company or not on customary market terms, to former members of the board of directors and former executive officers.

The disclosure concerning compensation, loans and other forms of indebtedness must include the aggregate amount for the board of directors and the executive committee, respectively, as well as the particular amount for each member of the board of directors and for the highest paid executive officer, specifying the name and function of each of these persons.

We are prohibited from granting certain forms of compensation to members of our board of directors and executive committee, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• severance payments (compensation due until the termination of a contractual relationship does not qualify as severance payment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incentive fees for the acquisition or transfer of companies, or parts thereof, by the Company or by companies being, directly or indirectly, controlled by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loans, other forms of indebtedness, pension benefits not based on occupational pension schemes and performance-based compensation not provided for in the articles of association; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equity-based compensation not provided for in the articles of association.

Compensation to members of the board of directors and the executive committee for activities in entities that are, directly or indirectly, controlled by the Company is prohibited if (i) the compensation would be prohibited if it were paid directly by the Company, (ii) the articles of association do not provide for it, or (iii) the compensation has not been approved by the general meeting of shareholders.

In each year, the general meeting of shareholders has to vote on the proposals of the board of directors with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maximum aggregate amount of compensation of the board of directors for the term of office until the next annual general meeting of shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maximum aggregate amount of fixed compensation of the executive committee for the following financial year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maximum aggregate amount of variable compensation of the executive committee for the current financial year.

The board of directors may submit for approval at the general meeting of shareholders deviating or additional proposals relating to the same or different periods.

If, at the general meeting of shareholders, the shareholders do not approve a compensation proposal of the board of directors, the board of directors must prepare a new proposal, taking into account all relevant factors, and submit the new proposal for approval by the same general meeting of shareholders, at a subsequent extraordinary general meeting of shareholders or the next annual general meeting of shareholders.

In addition to fixed compensation, members of the board of directors and the executive committee may be paid variable compensation, depending on the achievement of certain performance criteria. The performance criteria may include individual targets, targets of the Company or parts thereof and targets in relation to the market, other companies or comparable benchmarks, taking into account the position and level of responsibility of the recipient of the variable compensation. The board of directors or, where delegated to it, the compensation committee shall determine the relative weight of the performance criteria and the respective target values.

Compensation may be paid or granted in the form of cash, shares, financial instruments, in kind, or in the form of other types of benefits. The board of directors or, where delegated to it, the compensation committee shall determine grant, vesting, exercise and forfeiture conditions.

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***Borrowing Powers***

Neither Swiss law nor our articles of association restricts our power to borrow and raise funds. The decision to borrow funds is made by or under the direction of our board of directors, and no approval by the shareholders is required in relation to any such borrowing.

***Repurchases of Shares and Purchases of Own Shares***

The CO limits our ability to repurchase and hold our own shares. We and our subsidiaries may repurchase shares only to the extent that (i) we have freely distributable reserves in the amount of the purchase price; and (ii) the aggregate par value of all shares held by us does not exceed 10% of our share capital. Pursuant to Swiss law, where shares are acquired in connection with a transfer restriction set out in the articles of association, the foregoing upper limit is 20%. If we own shares that exceed the threshold of 10% of our share capital, the excess must be sold or cancelled by means of a capital reduction within two years.

Shares held by us or our subsidiaries are not entitled to vote at the general meeting of shareholders but are entitled to the economic benefits applicable to the shares generally, including dividends and pre-emptive subscription rights in the case of share capital increases.

In addition, selective share repurchases are only permitted under certain circumstances. Within these limitations, as is customary for Swiss corporations, we may, subject to applicable law, purchase and sell our own shares from time to time in order to meet imbalances of supply and demand, to provide liquidity and to even out variances in the market price of shares.

***Notification and Disclosure of Substantial Share Interests***

The disclosure obligations generally applicable to shareholders of Swiss corporations under the Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading, or the Financial Market Infrastructure Act (the "FMIA"), do not apply to us since our shares are not listed on a Swiss exchange.

***Mandatory Bid Rules***

The obligation of any person or group of persons that acquires more than one-third of a company's voting rights to submit a cash offer for all the outstanding listed equity securities of the relevant company at a minimum price pursuant to the FMIA does not apply to us since our shares are not listed on a Swiss exchange.

**Stock Exchange Listing**

Our common shares are listed on the NYSE under the symbol "ADCT."

**The Depository Trust Company**

Each person owning a beneficial interest in common shares held through DTC must rely on the procedures thereof and on institutions that have accounts therewith to exercise any rights of a holder of the shares.

**Transfer Agent and Registrar of Shares**

Our share register is kept by Computershare Trust Company, N.A., which acts as transfer agent and registrar. The share register reflects only record owners of our shares. Swiss law does not recognize fractional share interests.

**Comparison of Swiss Law and Delaware Law**

The Swiss laws applicable to Swiss corporations and their shareholders differ from laws applicable to U.S. corporations and their shareholders. The following table summarizes significant differences in shareholder rights pursuant to the provisions of the CO, by which our Company is governed (but see "Description of Share Capital and Articles of Association—The Company" regarding the two-year transition period that currently applies), and the Delaware General Corporation Law applicable to companies incorporated in Delaware and their shareholders. Please note that this is only a general summary of certain provisions applicable to companies in Delaware. Certain Delaware companies may be permitted to exclude certain of the provisions summarized below in their charter documents.

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| **DELAWARE CORPORATE LAW** | **SWISS CORPORATE LAW** |
| ***Mergers and similar arrangements*** | ***Mergers and similar arrangements*** |

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| Under the Delaware General Corporation Law, with certain exceptions, a merger, consolidation, sale, lease or transfer of all or substantially all of the assets of a corporation must be approved by the board of directors and a majority of the outstanding shares entitled to vote thereon. A shareholder of a Delaware corporation participating in certain major corporate transactions may, under certain circumstances, be entitled to appraisal rights pursuant to which such shareholder may receive cash in the amount of the fair value of the shares held by such shareholder (as determined by a court) in lieu of the consideration such shareholder would otherwise receive in the transaction. The Delaware General Corporation Law also provides that a parent corporation, by resolution of its board of directors, may merge with any subsidiary, of which it owns at least 90.0% of each class of capital stock without a vote by the shareholders of such subsidiary. Upon any such merger, dissenting shareholders of the subsidiary would have appraisal rights. | Under Swiss law, with certain exceptions, a merger or a demerger of the corporation or a sale of all or substantially all of the assets of a corporation must be approved by two-thirds of the voting rights represented at the respective general meeting of shareholders as well as the majority of the par value of shares represented at such general meeting of shareholders. A shareholder of a Swiss corporation participating in a statutory merger or demerger pursuant to the Swiss Merger Act *(Loi sur la fusion*) can file a lawsuit against the surviving company. If the consideration is deemed "inadequate," such shareholder may, in addition to the consideration (be it in shares or in cash) receive an additional amount to ensure that such shareholder receives the fair value of the shares held by such shareholder. Swiss law also provides that if the merger agreement provides only for a compensation payment, at least 90% of all members in the transferring legal entity who are entitled to vote shall approve the merger agreement. |
| ***Shareholders' suits*** | ***Shareholders' suits*** |
| Class actions and derivative actions generally are available to shareholders of a Delaware corporation for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law. In such actions, the court has discretion to permit the winning party to recover attorneys' fees incurred in connection with such action. | Class actions and derivative actions as such are not available under Swiss law. Nevertheless, certain actions may have a similar effect. A shareholder is entitled to bring suit against directors, officers or liquidators for breach of their duties and claim the payment of the company's losses or damages to the corporation and, in some cases, to the individual shareholder. Likewise, an appraisal lawsuit won by a shareholder may indirectly compensate all shareholders. In addition, to the extent that U.S. laws and regulations provide a basis for liability and U.S. courts have jurisdiction, a class action may be available. |
|  | Under Swiss law, the winning party is generally entitled to recover a limited amount of attorneys' fees incurred in connection with such action. The court has discretion to permit the shareholder who lost the lawsuit to recover attorneys' fees incurred to the extent that he or she acted in good faith. |
| ***Shareholder vote on board and management compensation*** | ***Shareholder vote on board and management compensation*** |

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| Under the Delaware General Corporation Law, the board of directors has the authority to fix the compensation of directors, unless otherwise restricted by the certificate of incorporation or bylaws. | Pursuant to Swiss law, the general meeting of shareholders has the non-transferable right, amongst others, to vote separately and bindingly on the aggregate amount of compensation of the members of the board of directors, of the executive committee and of the advisory boards. |
| ***Annual vote on board renewal*** | ***Annual vote on board renewal*** |
| Unless directors are elected by written consent in lieu of an annual meeting, directors are elected in an annual meeting of shareholders on a date and at a time designated by or in the manner provided in the bylaws. Re-election is possible. <br>Classified boards are permitted. | The general meeting of shareholders elects the members of the board of directors, the chairperson of the board of directors and the members of the compensation committee individually and annually for a term of office until the end of the following general meeting of shareholders. Re-election is possible. |
| ***Indemnification of directors and executive officers and limitation of liability*** | ***Indemnification of directors and executive officers and limitation of liability*** |

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| The Delaware General Corporation Law provides that a certificate of incorporation may contain a provision eliminating or limiting the personal liability of directors and officers (but not other controlling persons) of the corporation for monetary damages for breach of a fiduciary duty as a director, except no provision in the certificate of incorporation may eliminate or limit liability of: <br>• a director or officer for any breach the duty of loyalty to the corporation or its shareholders; <br>• a director or officer for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; <br>• a director for statutory liability for unlawful payment of dividends or unlawful share purchase or redemption; <br>• a director or officer for any transaction from which the director or officer derived an improper personal benefit; or<br>• an officer in any action by or in right of the corporation.<br>A Delaware corporation may indemnify any person who was or is a party or is threatened to be made a party to any proceeding, other than an action by or on behalf of the corporation, because the person is or was a director or officer, against liability incurred in connection with the proceeding if the director or officer acted in good faith and in a manner reasonably believed to be in, or not opposed to, the best interests of the corporation; and the director or officer, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. | Under Swiss corporate law, an indemnification by the corporation of a director or member of the executive committee in relation to potential personal liability is not effective to the extent the director or member of the executive committee intentionally or negligently violated his or her corporate duties towards the corporation (certain views advocate that at least a grossly negligent violation is required to exclude the indemnification). Furthermore, the general meeting of shareholders may discharge (release) the directors and members of the executive committee from liability for their conduct to the extent the respective facts are known to shareholders. Such discharge is effective only with respect to claims of the company and of those shareholders who approved the discharge or who have since acquired their shares in full knowledge of the discharge. Most violations of corporate law are regarded as violations of duties towards the corporation rather than towards the shareholders. In addition, indemnification of other controlling persons is not permitted under Swiss corporate law, including shareholders of the corporation. <br>The articles of association of a Swiss corporation may also set forth that the corporation shall indemnify and hold harmless, to the extent permitted by the law, the directors and executive managers out of assets of the corporation against threatened, pending or completed actions. <br>Also, a corporation may enter into and pay for directors' and officers' liability insurance, which may cover negligent acts as well. |

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| Unless ordered by a court, any foregoing indemnification is subject to a determination that the director or officer has met the applicable standard of conduct: <br>• by a majority vote of the directors who are not parties to the proceeding, even though less than a quorum; <br>• by a committee of directors designated by a majority vote of the eligible directors, even though less than a quorum; <br>• by independent legal counsel in a written opinion if there are no eligible directors, or if the eligible directors so direct; or <br>• by the shareholders. <br>Moreover, a Delaware corporation may not indemnify a director or officer in connection with any proceeding in which the director or officer has been adjudged to be liable to the corporation unless and only to the extent that the court determines that, despite the adjudication of liability but in view of all the circumstances of the case, the director or officer is fairly and reasonably entitled to indemnity for those expenses which the court deems proper. | |
| ***Directors' fiduciary duties*** | ***Directors' fiduciary duties*** |
| A director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: <br>• the duty of care; and<br>• the duty of loyalty.<br>The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself or herself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction.<br>The duty of loyalty requires that a director act in a manner he or she reasonably believes to be in the best interests of the corporation. He or she must not use his or her corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties.<br>Should such evidence be presented concerning a transaction by a director, a director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation. | The board of directors of a Swiss corporation manages the business of the corporation, unless responsibility for such management has been duly delegated to the executive committee based on organizational rules. However, there are several non-transferable duties of the board of directors:<br>• the overall management of the corporation and the issuing of all necessary directives;<br>• determination of the corporation's organization;<br>• the organization of the accounting, financial control and financial planning systems as required for management of the corporation;<br>• the appointment and dismissal of persons entrusted with managing and representing the corporation;<br>• overall supervision of the persons entrusted with managing the corporation, in particular with regard to compliance with the law, articles of association, operational regulations and directives;<br>• compilation of the annual report, preparation for the general meeting of the shareholders, the compensation report and implementation of its resolutions; and<br>• the filing an application for a debt restructuring moratorium and notification of the court in the event that the company is over-indebted. |

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| | The members of the board of directors must perform their duties with all due diligence and safeguard the interests of the corporation in good faith. They must afford the shareholders equal treatment in equal circumstances.<br>The duty of care requires that a director act in good faith, with the care that an ordinarily prudent director would exercise under like circumstances.<br>The members of the board of directors and the executive committee are required to immediately and fully inform the board of directors about conflicts of interests concerning them. The board of directors is furthermore required to take measures in order to protect the interests of the company.<br>The duty of loyalty requires that a director safeguard the interests of the corporation and requires that directors act in the interest of the corporation and, if necessary, put aside their own interests. If there is a risk of a conflict of interest, the board of directors must take appropriate measures to ensure that the interests of the company are duly taken into account.<br>The burden of proof for a violation of these duties is with the corporation or with the shareholder bringing a suit against the director.<br>The Swiss Federal Supreme Court has established a doctrine that restricts its review of a business decision if the decision has been taken following proper preparation, on an informed basis and without conflicts of interest. |
| ***Shareholder action by written consent*** | ***Shareholder action by written consent*** |
| A Delaware corporation may, in its certificate of incorporation, eliminate the right of shareholders to act by written consent. | Shareholders of a Swiss corporation may exercise their voting rights in a general meeting of shareholders. Shareholders can only act by written consents if no shareholder requests a general meeting of shareholders. The articles of association must allow for (independent) proxies to be present at a general meeting of shareholders. The instruction of such (independent) proxies may occur in writing or electronically. |
| ***Shareholder proposals*** | ***Shareholder proposals*** |

---

------

---

| | |
|:---|:---|
| A shareholder of a Delaware corporation has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings. | At any general meeting of shareholders any shareholder may put proposals to the meeting if the proposal is part of an agenda item. No resolution may be taken on proposals relating to the agenda items that were not duly notified. Unless the articles of association provide for a lower threshold or for additional shareholders' rights, and subject to the two-year transition period described above (see "Description of Share Capital and Articles of Association—The Company"):<br>• shareholders together representing at least 5% of the share capital or voting rights may demand that a general meeting of shareholders be called for specific agenda items and specific proposals; and<br>• shareholders together representing shares with a par value of at least 0.5% of the share capital or the voting rights may demand that an agenda item including a specific proposal, or a proposal with respect to an existing agenda item, be put on the agenda for a scheduled general meeting of shareholders, provided such request is made with appropriate lead time.<br>Any shareholder can propose candidates for election as directors or make other proposals within the scope of an agenda item without prior written notice. |
|  | In addition, any shareholder is entitled, at a general meeting of shareholders and without advance notice, to (i) request information from the board of directors on the affairs of the company (note, however, that the right to obtain such information is limited), (ii) request information from the auditors on the methods and results of their audit, (iii) request that the general meeting of shareholders resolve to convene an extraordinary general meeting, or (iv) request that the general meeting of shareholders resolve to appoint an examiner to carry out a special examination ("*examen spécial*"). |
| ***Cumulative voting*** | ***Cumulative voting*** |

---

------

---

| | |
|:---|:---|
| Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation provides for it. | Cumulative voting is not permitted under Swiss corporate law. Pursuant to Swiss law, shareholders can vote for each proposed candidate, but they are not allowed to cumulate their votes for single candidates. An annual individual election of (i) all members of the board of directors, (ii) the chairperson of the board of directors, (iii) the members of the compensation committee, (iv) the election of the independent proxy for a term of office of one year (i.e., until the following annual general meeting of shareholders), as well as the vote on the aggregate amount of compensation of the members of the board of directors, of the executive committee and of the members of any advisory board, is mandatory for listed companies. Re-election is permitted. |
| ***Removal of directors*** | ***Removal of directors*** |
| A Delaware corporation with a classified board may be removed only for cause with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. | A Swiss corporation may remove, with or without cause, any director at any time with a resolution passed by a majority of the shares represented at a general meeting of shareholders. The articles of association may require the approval by a supermajority of the shares represented at a meeting for the removal of a director. |
| ***Transactions with interested shareholders*** | ***Transactions with interested shareholders*** |
| The Delaware General Corporation Law generally prohibits a Delaware corporation from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or group who or which owns or owned 15.0% or more of the corporation's outstanding voting shares within the past three years. | No such rule applies to a Swiss corporation. |
| ***Dissolution; Winding up*** | ***Dissolution; Winding up*** |

---

------

---

| | |
|:---|:---|
| Unless the board of directors of a Delaware corporation approves the proposal to dissolve, dissolution must be approved by shareholders holding 100.0% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board. | A dissolution of a Swiss corporation requires the approval by two-thirds of the voting rights represented at the respective general meeting of shareholders as well as the majority of the par value of shares represented at such general meeting of shareholders. The articles of association may increase the voting thresholds required for such a resolution. |
| ***Variation of rights of shares*** | ***Variation of rights of shares*** |
| A Delaware corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. | The general meeting of shareholders of a Swiss corporation may resolve that preference shares be issued or that existing shares be converted into preference shares with a resolution passed by a majority of the shares represented at the general meeting of shareholders. Where a company has issued preference shares, further preference shares conferring preferential rights over the existing preference shares may be issued only with the consent of both a special meeting of the adversely affected holders of the existing preference shares and of a general meeting of all shareholders, unless otherwise provided in the articles of association.<br>Shares with preferential voting rights are not regarded as preference shares for these purposes. |
| ***Amendment of governing documents*** | ***Amendment of governing documents*** |
| A Delaware corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. | The articles of association of a Swiss corporation may be amended with a resolution passed by a majority of the shares represented at a general meeting of shareholders, unless otherwise provided in the articles of association.<br>There are a number of resolutions, such as an amendment of the stated purpose of the corporation, the introduction of a capital range and conditional capital and the introduction of shares with preferential voting rights that require the approval by two-thirds of the votes and a majority of the par value of the shares represented at such general meeting of shareholders. The articles of association may increase these voting thresholds. |

---

------

---

| | |
|:---|:---|
| ***Inspection of books and records*** | ***Inspection of books and records*** |
| Shareholders of a Delaware corporation, upon written demand under oath stating the purpose thereof, have the right during the usual hours for business to inspect for any proper purpose, and to obtain copies of list(s) of shareholders and other books and records of the corporation and its subsidiaries, if any, to the extent the books and records of such subsidiaries are available to the corporation. | Shareholders of a Swiss corporation holding in the aggregate at least 5% of the nominal share capital or voting rights have the right to inspect books and records, subject to the safeguarding of the company's business secrets and other interests warranting protection. A shareholder is only entitled to receive information to the extent required to exercise his or her rights as a shareholder. The board of directors has to decide on an inspection request within four months after receipt of such request. Denial of the request will need to be justified in writing. If the board of directors denies an inspection request, shareholders may request the order of an inspection by the court within thirty days. <br>A shareholder's right to inspect the share register is limited to the right to inspect his or her own entry in the share register. |
| ***Payment of dividends*** | ***Payment of dividends*** |
| The board of directors may approve a dividend without shareholder approval. Subject to any restrictions contained in its certificate of incorporation, the board may declare and pay dividends upon the shares of its capital stock either:&nbsp;&nbsp;&nbsp;&nbsp; | Dividend (including interim dividend) payments are subject to the approval of the general meeting of shareholders. The board of directors may propose to shareholders that a dividend shall be paid but cannot itself authorize the distribution. |
| • out of its surplus, or<br>• in case there is no such surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.<br>Shareholder approval is required to authorize capital stock in excess of that provided in the charter. Directors may issue authorized shares without shareholder approval. | Payments out of a corporation's share capital (in other words, the aggregate par value of the corporation's shares) in the form of dividends are not allowed and may be made only by way of a share capital reduction. Dividends may be paid only from the profits of the previous or current business year or brought forward from previous business years or if the corporation has distributable reserves, each as evidenced by the corporation's audited stand-alone statutory balance sheet prepared pursuant to Swiss law and after allocations to reserves required by Swiss law and the articles of association have been deducted. |

---

------

---

| | |
|:---|:---|
| ***Creation and issuance of new shares*** | ***Creation and issuance of new shares*** |
| All creation of shares require the board of directors to adopt a resolution or resolutions, pursuant to authority expressly vested in the board of directors by the provisions of the company's certificate of incorporation. | All creation of shares require a shareholders' resolution. The creation of a capital range or conditional share capital requires at least two-thirds of the voting rights represented at the general meeting of shareholders and a majority of the par value of shares represented at such meeting. The board of directors may issue or cancel shares out of the capital range during a period of up to five years by a maximum amount of 50% of the current share capital.. Shares are created and issued out of conditional share capital through the exercise of options or of conversion rights that the board of directors may grant to shareholders, creditors of bonds or similar debt instruments, employees, directors of the company or another group company or third parties. |

---

## Exhibit 4.9

**Exhibit 4.9**

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

**LICENSE AGREEMENT**

**BETWEEN**

**ADC Therapeutics SA** 

**AND**

**Swedish Orphan Biovitrum AB (publ)**

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| <u>[ARTICLE 1](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[DEFINITIONS](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [1](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 2](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[LICENSES](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [24](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Exclusive License Grant to Sobi](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [24](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Non-Exclusive License Grant to Sobi](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [25](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[License Grant to ADCT](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [25](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sublicenses](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [26](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sublicense Requirements](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [26](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Subcontractors](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [26](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Pre-Existing Agreements](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [26](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.8.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[ADCT Covenants](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [26](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.9.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sobi Covenants.](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [27](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.10.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Reservation of Rights](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [27](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.11.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Combination Products Rights](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [28](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.12.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Exclusivity](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [28](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.13.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Rights in Bankruptcy](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [29](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.14.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Right of Reference](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [29](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[2.15.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Know-How Transfer](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [30](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 3](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[GOVERNANCE](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [31](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[3.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Joint Steering Committee](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [31](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[3.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Procedures](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [33](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[3.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[JSC Decision-Making](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [34](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[3.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Expenses](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [35](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[3.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Alliance Manager](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [35](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[3.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Discontinuation of the JSC](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [35](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 4](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[INTELLECTUAL PROPERTY](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [36](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Ownership](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [36](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Patent Prosecution](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [38](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Patent Term Extensions](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [41](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Patent Enforcement](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [41](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Third Party Infringement Claims](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [43](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[European Patents](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [44](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Third Party In-Licenses](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [44](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[4.8.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Data Ownership](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [44](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 5](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[DEVELOPMENT ACTIVITIES](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [45](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[5.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[ADCT Global Development Strategy](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [45](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[5.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sobi Territory-Specific Development](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [46](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[5.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Clinical Studies](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [46](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[5.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Development Activities](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [49](#i63660f39bed744b5a3975de5e1518f60_7) |

---

i

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

---

| | |
|:---|:---|
| <u>[5.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Development Cooperation](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [50](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 6](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[REGULATORY ACTIVITIES](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [51](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Regulatory Responsibility](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [51](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Transfer of Regulatory Filings](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [52](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Regulatory Meetings](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [52](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Registration Plans](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [53](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Regulatory Audits](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [53](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Safety; Adverse Event Reporting](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [53](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Notification of Threatened Action](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [55](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.8.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[No Harmful Actions](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [55](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.9.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Recalls](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [55](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.10.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sunshine Reporting Laws](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [55](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[6.11.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Company Core Data Sheet](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [56](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 7](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[COMMERCIALIZATION](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [56](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Commercial Responsibility](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [56](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Commercial Diligence](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [56](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Commercialization Plan](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [56](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Pricing; Reimbursement Approvals](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [57](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Commercialization Reports](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [57](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sobi Territory Commercialization Costs](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [57](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Marketing and Promotional Literature; Packaging](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [57](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.8.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[ADCT Co-Promotion Option](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [58](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.9.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Trademarks](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [58](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[7.10.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Diversion](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [59](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 8](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[MANUFACTURING AND SUPPLY](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [60](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[8.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Manufacturing Coordinators](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [60](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[8.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Supply Agreement](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [60](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[8.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Quality Agreements](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [60](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[8.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Supply by ADCT](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [60](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[8.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Supply by Sobi](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [61](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[8.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Packaging and Labeling](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [61](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 9](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[MEDICAL AFFAIRS](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [62](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Responsibility](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [62](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Medical Affairs Plan](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [62](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Medical Affairs Sponsored Clinical Studies](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [63](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Investigator Sponsored Clinical Study](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [63](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Medical Affairs Reports](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [63](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sobi Territory Medical Affairs Costs](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [63](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[9.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Joint Medical Committee](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [64](#i63660f39bed744b5a3975de5e1518f60_7) |

---

ii

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

---

| | |
|:---|:---|
| <u>[ARTICLE 10](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[FINANCIAL TERMS](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [64](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Upfront Payment](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [64](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Milestone and Royalty Payments](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [64](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Manufacturing Cost and Reimbursements](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [68](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Payment of Invoices; Disputes](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [69](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Remittance](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [70](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Late Payments](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [70](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Taxes](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [70](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[10.8.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Records; Audits](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [71](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 11](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[CONFIDENTIALITY](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [72](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[11.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Non-Use and Non-Disclosure](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [72](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[11.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Exclusions](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [72](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[11.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Authorized Disclosures](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [73](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[11.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Terms of this Agreement; Technology](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [74](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[11.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[No License](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [74](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 12](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[PUBLICITY; PUBLICATIONS](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [74](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[12.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Publicity](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [74](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[12.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Publications](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [74](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[12.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Publications of Joint Know-How](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [75](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[12.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Publication Plan](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [76](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[12.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[No Right to Use Names](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [76](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 13](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[REPRESENTATIONS AND WARRANTIES](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [76](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[13.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Mutual Representations and Warranties](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [76](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[13.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Representations and Warranties of ADCT](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [77](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[13.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Disclaimers](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [80](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 14](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[INDEMNIFICATION](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [80](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[14.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Indemnification by Sobi](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [80](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[14.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Indemnification by ADCT](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [80](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[14.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Indemnification Procedure](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [81](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[14.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Mitigation of Loss.](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [83](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[14.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Limitation of Liability](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [83](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[14.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Insurance](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [84](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 15](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[TERM AND TERMINATION](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [84](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[15.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Term](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [84](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[15.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Termination](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [84](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[15.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Effects of Termination](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [86](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[15.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Country-by-Country Termination](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [90](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[15.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Sobi's Rights In Lieu of Termination for ADCT Material Breach](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [90](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[15.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Survival](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [90](#i63660f39bed744b5a3975de5e1518f60_7) |

---

iii

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

---

| | |
|:---|:---|
| <u>[15.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Post-Expiration Supply](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [91](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 16](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[DISPUTE RESOLUTION](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [92](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[16.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Disputes](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [92](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[16.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Binding Arbitration](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [92](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[ARTICLE 17](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[MISCELLANEOUS](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [93](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.1.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Governing Law](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [93](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.2.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Performance Through Affiliates](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [93](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.3.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Force Majeure](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [93](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.4.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Notices](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [94](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.5.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Assignment](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [94](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.6.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Anti-Corruption Law Compliance](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [95](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.7.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Independent Contractors](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [95](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.8.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Entire Agreement; Amendments](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [95](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.9.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Cumulative Remedies](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [96](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.10.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Amendment; Waiver](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [96](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.11.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Business Day Requirements](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [96](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.12.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Further Assurances](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [96](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.13.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Severability](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [96](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.14.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Construction](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [96](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.15.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Language; Translations](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [97](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.16.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Interpretation](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [97](#i63660f39bed744b5a3975de5e1518f60_7) |
| <u>[17.17.](#i63660f39bed744b5a3975de5e1518f60_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i63660f39bed744b5a3975de5e1518f60_7)<u>[Counterparts](#i63660f39bed744b5a3975de5e1518f60_7)</u> | [97](#i63660f39bed744b5a3975de5e1518f60_7) |

---

iv

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

**LICENSE AGREEMENT**

**This License Agreement** ("**Agreement**") is made and entered into, effective as of July 8, 2022 ("**Effective Date**"), by and between **ADC Therapeutics SA**, having a registered office at Biopôle, Route de la Corniche 3B, 1066 Epalinges, Switzerland ("**ADCT**") and **Swedish Orphan Biovitrum AB (publ)**, organized and existing under the laws of Sweden with a principal place of business at Tomtebodavägen 23A, Solna, Sweden ("**Sobi**"). ADCT and Sobi are sometimes referred to herein individually as a "**Party**" and collectively as the "**Parties**."

BACKGROUND

**WHEREAS**, ADCT has developed and is conducting research, development and commercialization of its proprietary compound loncastuximab tesirine for the treatment of cancer;

**WHEREAS**, Sobi is a pharmaceutical company with experience in developing and commercializing pharmaceutical products;

**WHEREAS**, ADCT and Sobi desire to engage in a collaborative effort to develop, seek regulatory approvals for market, and market certain products containing loncastuximab tesirine; and

**WHEREAS**, ADCT desires to grant, and Sobi desires to take, a license under certain of ADCT's intellectual property to develop and commercialize Products (as defined below) in the Sobi Territory (as defined below)

**NOW THEREFORE**, the Parties, for consideration as provided herein, agree as follows:

**ARTICLE 1<br>DEFINITIONS**

Capitalized terms used in this Agreement, whether used in the singular or plural, shall have the meanings set forth below in this ARTICLE 1 (Definitions), unless otherwise specifically indicated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1"**Accounting Standards**" means, as applicable, the International Financial Reporting Standards (IFRS) or generally accepted accounting principles (GAAP) in the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2"**ADCT**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3"**ADCT Corporate Marks**" has the meaning set forth in Section 7.9.4 (ADCT Corporate Marks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4"**ADCT-Funded Global Study**" has the meaning set forth in Section 5.3.5 (Opt-In for Global Study).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5"**ADCT-Funded Global Study Data**" has the meaning set forth in Section 5.3.5 (Opt-In for Global Study).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6"**ADCT-Funded Global Study Opt-In**" has the meaning set forth in Section 5.3.5 (Opt-In for Global Study).

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7"**ADCT Indemnitee**" has the meaning set forth in Section 14.1 (Indemnification by Sobi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8"**ADCT Know-How**" means all Know-How (excluding ADCT's interest in the Joint Know-How) Controlled by ADCT or any of its Affiliates as of the Effective Date or during the Term (including Know-How Controlled by ADCT or any of its Affiliates that arises under this Agreement) that relate to a Product and are necessary or useful to use, Develop, Manufacture, have Manufactured, sell, offer for sale, distribute, import, export, or Commercialize, the Products in the Field in the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "**ADCT Patents**" means all Patents (excluding ADCT's interest in the Joint Patents) Controlled by ADCT or any of its Affiliates as of the Effective Date or during the Term (including Patents Controlled by ADCT or any of its Affiliates that arise under this Agreement) that (a) Cover the composition of, matter of, or the method of making or using, the sale, the offer for sale or the importation of a Product in the Field in the Sobi Territory or (b) would otherwise be infringed by the use, Development, Manufacture, sale, offering for sale, distribution, import, export, or Commercialization of the Products in the Field in the Sobi Territory. The ADCT Patents that exist as of the Effective Date are set forth in Exhibit A (ADCT Patents). The ADCT Patents will include any continuation, divisional, continuation-in-part that relies for priority on disclosure in a patent application in Exhibit A (ADCT Patents), reissue, or re-examination thereof, and any patent issuing on any of the foregoing as of the Effective Date, in each case, that satisfies the requirements in the foregoing clause (a) or (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10"**ADCT Technology**" means ADCT Patents, ADCT Know-How and ADCT's interest in the Joint Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11"**ADCT Territory**" means the United States (including its territories), Japan, mainland China, the Hong Kong Special Administrative Region, Macau Special Administrative Region, Taiwan and Singapore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12"**ADCT Territory License**" has the meaning set forth in Section 2.3 (License Grant to ADCT).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13"**ADCT Withholding Tax Action**" has the meaning set forth in Section 10.7.4 (Withholding Taxes Resulting from ADCT's Action).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14"**Additional Global Study**" has the meaning set forth in Section 5.3.3 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15"**Additional Global Study Notice**" has the meaning set forth in Section 5.3.3 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16"**Additional Global Study Plan**" has the meaning set forth in Section 5.3.3 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17"**Adverse Event**" means any adverse medical occurrence in a patient or clinical investigation subject to whom a Product is administered and which could but does not necessarily have a causal relationship with such Product, including any unfavorable and unintended sign (including an abnormal laboratory finding, for example), symptom or disease temporally associated with the administration of such Product, whether or not considered related to Product administration.

&nbsp;&nbsp;&nbsp;&nbsp;

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18"**Affiliate**" means any entity that, directly or indirectly (through one or more intermediaries) controls, is controlled by, or is under common control with a Party. For purposes of this Section 1.18 (Affiliate), "control" means (a) the direct or indirect ownership of greater than fifty percent (50%) of the voting stock or other voting interests or interest in the profits of the Party or (b) the ability to otherwise control or direct the decisions of the board of directors or equivalent governing body thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19"**Agreement**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20"**Alliance Manager**" has the meaning set forth in Section 3.5.1 (Appointment of Alliance Managers).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21"**Alternative Product Trademark**" has the meaning set forth in Section 7.9.1 (Product Trademark).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22"**ANSM**" means the French National Agency for the Safety of Medicines and Health Products or any successor agency thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23"**Anti-Corruption Laws**" has the meaning set forth in Section 17.6 (Anti-Corruption Law Compliance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24"**ANVISA**" means the Brazilian National Health Surveillance Agency or any successor agency thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25"**Applicable Laws**" means any federal, state, local, national, and supra-national laws, statutes, rules, or regulations, including any rules, regulations, guidance, guidelines, or requirements of Regulatory Authorities, national securities exchanges, or securities listing organizations (to the extent such rules, regulations, guidance, guidelines, or requirements are legally binding) that may be in effect from time to time during the Term and apply to a particular activity hereunder, including laws, regulations and guidelines governing the import, export, Development, Manufacture or Commercialization of, or Medical Affairs Activities relating to, any Product in or for the applicable jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26**"Approved Labeling"** means, with respect to a Product: (a) the Regulatory Authority-approved full prescribing information for such Product; and (b) the Regulatory Authority-approved labels and other written, printed, or graphic materials on any container, wrapper, or any package insert that is used with or for such Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27"**Bankruptcy Laws**" has the meaning set forth in Section 2.13 (Rights in Bankruptcy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28"**Biosimilar Product**" means, with respect to a Product sold by Sobi (or any of its Affiliates or Sublicensees) in a particular country in the Sobi Territory, any product that (a) is approved for sale in such country in reliance on or by reference to the prior Regulatory Approval of such Product(s) as determined by the applicable Regulatory Authority and (i) is approved for sale in such country as structurally similar to such Product as determined by the applicable Regulatory Authority, or (ii) is otherwise approved or recognized by the applicable Regulatory Authority as an interchangeable substitute for such Product in such country; and (b) is sold by a Third Party that is not a Sublicensee of Sobi (or any of its Affiliates) and did not acquire such Product from a chain of distribution that included any of Sobi's or any of its Affiliates or Sublicensees. "Biosimilar Product(s)" includes any biosimilar, follow-on biologic or generic biological product, as those terms are commonly understood under Article 10 of EU Directive

&nbsp;&nbsp;&nbsp;&nbsp;

------

**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

2001/83/EC, the PFSB/ELD Notification No. 0304007 dated March 4, 2009 and any successor legislation or regulations relating thereto, and all similar foreign legislation in the Sobi Territory with regard to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29"**Breaching Party**" has the meaning set forth in Section 15.2.2 (Termination for Material Breach).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30"**Business Day**" means a day other than Saturday, Sunday or any day on which banks located in New York, New York, U.S., Geneva, Switzerland, or Stockholm, Sweden, are authorized or obligated to close. Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31"**Calendar Half**" has the meaning set forth in Section 5.4.3 (Development Reports).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32"**Calendar Quarter**" means each successive period of three (3) consecutive calendar months ending on March 31, June 30, September 30, or December 31; *provided*, *however*, that (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the first to occur of March 31, June 30, September 30, or December 31 of the calendar quarter in which the Effective Date falls; and (b) the last Calendar Quarter of the Term shall end upon the expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33"**Calendar Year**" means each successive period of twelve (12) calendar months commencing on January 1 and ending on December 31; *provided*, *however*, that (a) the first Calendar Year of the Term shall extend from the Effective Date to the first December 31 of the calendar year in which the Effective Date falls; and (b) the last Calendar Year of the Term shall end upon the expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34"**CD19**" means the transmembrane glycoprotein known as Cluster of Differentiation 19, also known as B-Lymphocyte Surface Antigen B4 or CVID3, which is encoded by the CD19 gene that is located on the short arm of chromosome 16.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35"**Chairperson**" has the meaning set forth in Section 3.2.1 (Chairperson).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36"**Challenge**" has the meaning set forth in Section 4.4.1 (Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37"**Challenger**" has the meaning set forth in Section 4.4.1 (Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38"**Change of Control**" means, with respect to a Party, that: (a) any Third Party acquires directly or indirectly the beneficial ownership of any voting security of such Party (or its parent entity), or if the percentage ownership of such Third Party in the voting securities of such Party (or its parent entity) is increased through stock redemption, cancellation, or other recapitalization, and immediately after such acquisition or increase such Third Party is, directly or indirectly, the beneficial owner of voting securities representing more than fifty percent (50%) of the total voting power of all of the then outstanding voting securities of such Party (or its parent entity); (b) any merger, consolidation, recapitalization, or reorganization of such Party (or its parent entity) is consummated that would result in shareholders or equity holders of such Party (or its parent entity) immediately prior to such transaction owning fifty percent (50%) or less of the outstanding voting securities of the surviving entity (or its parent entity) immediately following such transaction; (c) the shareholders or equity holders of such Party (or its parent entity) approve any plan of complete liquidation of such Party (or its parent entity), or an agreement for the sale or disposition by such Party (or its parent entity) of all or substantially all

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of such Party's (or its parent entity's) assets, in each case, through one or more related transactions, other than to an Affiliate or pursuant to one or more related transactions that would result in shareholders or equity holders of such Party (or its parent entity) immediately prior to such transaction owning more than fifty percent (50%) of the outstanding voting securities of the surviving entity (or its parent entity) immediately following such transaction; or (d) the sale or transfer to any Third Party, in one or more related transactions, of all or substantially all of such Party's (or its parent entity's) consolidated assets taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39"**Claims**" has the meaning set forth in Section 14.1 (Indemnification by Sobi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40"**Clinical Study**" means a clinical study of a Product in humans, including a Phase 1 clinical trial, Phase 2 clinical trial, Phase 3 clinical trial, a Sobi post-registration study, an ADCT post-registration study or a Global Study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41"**Co-Funded Global Study**" has the meaning set forth in Section 5.3.3 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42"**Co-Funding Notice**" has the meaning set forth in Section 5.3.3 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43"**Co-Funding Option Exercise Period**" has the meaning set forth in Section 5.3.3 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44"**Co-Promotion**" or "**Co-Promote**" means: (a) discussions by a Sales Representative with a prescribing health care professional during a Detail to educate that prescribing health care professional regarding the Product in accordance with the Approved Labeling; (b) such other promotional activities as are mutually agreed by the Parties from time to time and included in the Co-Promotion Agreement; (c) Medical Affairs Activities; and (d) any other activities in respect of the Products in the Sobi Territory with respect to which the Parties agree to collaborate following ADCT's exercise of the Co-Promotion Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45"**Co-Promotion Agreement**" has the meaning set forth in Section 7.8 (ADCT Co-Promotion Option).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46"**Co-Promotion Option**" has the meaning set forth in Section 7.8 (ADCT Co-Promotion Option).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47"**Combination Product**" has the meaning set forth in Section 1.128.3 (Net Sales).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48"**Commercialization**" means any and all activities undertaken before and after obtaining Regulatory Approval relating specifically to the pre-launch, launch, promotion, marketing, sale, and distribution (including importing, exporting, transporting, customs clearance, warehousing, invoicing, handling, and delivering a Product to customers) of a Product, including (a) seeking, obtaining, and maintaining Pricing Approval for such Product; (b) strategic marketing, sales force detailing, advertising, medical education, and market and product support within the Field; and (c) all customer support, invoicing and sales activities within the Field; but excluding, in all cases, Development, Manufacturing and Medical Affairs Activities. "**Commercialize**" means to engage in Commercialization activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49"**Commercially Reasonable Efforts**" means, in relation to an obligation of either Party under the this Agreement, the efforts and resources (including reasonably necessary personnel) equivalent to those that an entity in the biotechnology or pharmaceutical industry of

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similar resources and expertise as such Party generally uses to accomplish an equivalent task in the respective geography and, if used in relation to the Development, Manufacture or Commercialization of a Product, efforts used by such an entity in the biotechnology or pharmaceutical industry of similar resources and expertise as such Party in relation to the development, manufacture, or commercialization of its own products (including internally developed, acquired and in-licensed products) of a similar market potential or profit potential at a similar stage in development or product life, based on conditions then prevailing and taking into account, without limitation, issues of safety and efficacy, Approved Labeling, product profile, the competitiveness of alternative products in the marketplace, the likely timing of the product's entry into the market, the patent and other proprietary position, the likelihood of regulatory approval and other relevant scientific, technical and commercial factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50"**Committed Global Studies**" has the meaning set forth in Section 5.3.2 (Committed Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51"**Company Core Data Sheet**" means a document prepared by the marketing authorization holder for a product that contains safety information as well and information relating to indications, dosing, pharmacology and other applicable information, in each case, with respect to such product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.52"**Competitive Activities**" has the meaning set forth in Section 2.12.1 (Mutual Exclusivity Covenant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53"**Competitive Product**" means (a) with respect to Development, [\*\*] Directed to CD19 and (b) with respect to Commercialization, [\*\*] Directed to CD19 that has received Regulatory Approval in DLBCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54"**Compound**" means ADCT's compound known as ADCT-402 (loncastuximab tesirine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55"**Confidential Information**" means (a) Know-How and any technical, scientific, trade, research, manufacturing, business, financial, marketing, product, supplier, intellectual property, and other non-public or proprietary data or information (including unpublished patent applications) that may be disclosed by or on behalf of one Party or its Affiliates to the other Party or its Affiliates pursuant to this Agreement (including information disclosed prior to the Effective Date pursuant to the Confidentiality Agreement), regardless of whether such information is specifically marked or designated as confidential and regardless of whether such information is in written, oral, electronic, or other form, and (b) the terms of this Agreement. For the avoidance of doubt, "Confidential Information" includes a Party's research, development plans, clinical study designs, preclinical and clinical data, technology, products, or business information or objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.56"**Confidentiality Agreement**" means that certain Mutual Nondisclosure Agreement dated August 25, 2021 entered into by and between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.57"**Control**" means with respect to any intellectual property (including any Patent, Know-How, or other data, information or materials), possession of the ability (whether by sole or joint ownership, license or otherwise, other than pursuant to this Agreement) to grant a license, sublicense, access or other right in, to or under such intellectual property, without violating the terms of any agreement with a Third Party. Notwithstanding any provision to the contrary set forth in this Agreement, a Party and its Affiliates will not be deemed to "Control" any intellectual property (including any Patent, Know-How, or other data, information or materials)

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that, prior to the consummation of a Change of Control of such Party, is owned or in-licensed by a Third Party that becomes an Affiliate of such acquired Party after the Effective Date as a result of such Change of Control unless (a) prior to the consummation of such Change of Control, such acquired Party or any of its Affiliates also Controlled such intellectual property (including any Patent, Know-How, or other data, information or materials), (b) any such intellectual property (including any Patent, Know-How, or other data, information or materials) arises from participation by employees or consultants of such Third Party in any activities under this Agreement prior to such Change of Control, or (c) the intellectual property (including any Patent, Know-How, or other data, information or materials) owned or in-licensed by such Third Party were not used in the performance of activities under this Agreement prior to the consummation of such Change of Control, but after the consummation of such Change of Control, such acquired Party or any of its Affiliates uses any such intellectual property (including any Patent, Know-How, or other data, information or materials) in the performance of its obligations or exercise of its rights under this Agreement or with respect to the Products in the ADCT Territory, in each case ((a) through (c)), such intellectual property (including any Patent, Know-How, or other data, information or materials) will be "Controlled" by such Party for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58"**Cover**" means, with respect to a particular subject matter at issue and a relevant Patent, that the manufacture, use, sale, offer for sale, importation of such subject matter would fall within the scope of a claim in such Patent. Cognates of the word "Cover" shall have correlative meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59"**Covered Person**" has the meaning set forth in Section 17.6 (Anti-Corruption Law Compliance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.60"**CPI**" means the Consumer Price Index-Urban Wage Earners and Clerical Workers, U.S. City Average, All Items 1982-84=100, published by the United States Department of Labor, Bureau of Labor Statistics (or its successor equivalent index), in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.61"**Cure Period**" has the meaning set forth in Section 15.2.2 (Termination for Material Breach).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62"**Data**" means any and all scientific, technical, test, marketing or sales data pertaining to any Product that are Controlled by Sobi, its Affiliates or Sublicensees, or ADCT or its Affiliates, including, to the extent Controlled by Sobi, its Affiliates or Sublicensees, or ADCT or its Affiliates, research data, clinical pharmacology data, preclinical data, CMC data, clinical data (including clinical data, datasets and other related information generated in compliance with standards regulated by the Clinical Data Interchange Standards Consortium / CDISC), Safety Data, clinical study reports, or submissions made in association with an IND or an MAA with respect to any Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63"**Data Access Reimbursement Payment**" has the meaning set forth in Section 5.3.5 (Opt-In for Global Study).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64"**Data Security and Privacy Laws**" shall mean all Applicable Laws related to data protection and privacy, including and to the extent applicable (a) the GDPR along with national laws in EU and EEA Member States implementing the GDPR; (b) the Privacy and Electronic Communications Directive 2002/58/EC as amended and implemented through national legislation; (c) the UK Data Protection Act 2018 ("**UK DPA**"), the UK General Data Protection Regulation as defined by the UK DPA and amended by the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019 (SI 2019/419) ("**UK GDPR**"), and the Privacy and Electronic Communications Regulations 2003; (d) the

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Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act; (e) the California Consumer Privacy Act of 2018 (CCPA); (f) the Federal Trade Commission Act and relevant state law equivalents; and (g) any supranational, federal, state, or national legislation relating to the processing of Personally Identifiable Information, data security or privacy that is applicable to a Party, in each case as applicable and in force from time to time, and as amended, consolidated, re-enacted or replaced from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65"**Detail**" means an interactive, one-to-one in person contact by a Sales Representative with a prescribing health care professional (as described below), during which the Sales Representative promotes use of the Product and discusses the attributes, benefits, prescribing information, and safety information of the Product, all and in each case in a fair and balanced manner, strictly in accordance with the Approved Labeling, the terms of this Agreement and the Co-Promotion Agreement and all Applicable Laws. As used herein, a "prescribing health care professional" means (a) a licensed physician with prescribing authority or (b) a nurse, nurse practitioner or physician assistant with influence over the pharmaceutical treatment of patients. For purposes of this Section 1.65 (Detail), "in person" may include virtual meetings (*e.g.*, through Zoom, Microsoft Teams or similar platform) as and to the extent set forth in the Co-Promotion Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66"**Development**" means all internal and external development and regulatory activities related to pharmaceutical or biologic products, including (a) Clinical Studies, toxicology, pharmacokinetic, and pharmacological studies, statistical analyses, assay development, protocol design and development, all development activities for and related to chemical, manufacture and control portion of any MAA; (b) preparation, submission, review, and development of data or information (or reports relating thereto and analysis and review of such reports) for the purpose of reviewing the progress and status of the activities under subsection (a) or for the purposes of submission to a Regulatory Authority to obtain authorization to conduct Clinical Studies and to obtain, support, or maintain Regulatory Approval of a pharmaceutical or biologic product; (c) the preparation, filing, and prosecution of any IND or MAA a pharmaceutical or biologic product; (d) development activities directed to label expansion or obtaining Regulatory Approval for one or more additional indications following initial Regulatory Approval (including Clinical Studies) initiated following receipt of Regulatory Approval or any Clinical Study to be conducted after receipt of Regulatory Approval that was mandated by the applicable Regulatory Authority as a condition of such Regulatory Approval with respect to an approved formulation or indication (such as post-marketing studies, observational studies, implementation and management of registries and analysis thereof, in each case, if required by any Regulatory Authority in any region in the applicable Territory to support or maintain Regulatory Approval for a pharmaceutical or biologic product in such region); and (e) all regulatory affairs related to any of the foregoing; but excluding, in all cases, Manufacturing and Medical Affairs Activities. "**Develop**" and "**Developing**" have correlative meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67"**Direct Development Cost**" means, with respect to any Development activities [\*\*] conducted during the Term, (a) [\*\*], and (b) [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.68"**Directed to**" means, with respect to a molecule, compound or other therapeutic product and CD19, that (a) [\*\*] and (b) [\*\*]. [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.69"**Disclosing Party**" has the meaning set forth in Section 12.2.1 (Publications by Sobi).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70"**Distributor**" means any Person appointed by Sobi or any of its Affiliates or its Sublicensees to distribute, market and sell a Product, as applicable, with or without packaging rights, in one or more countries in the Sobi Territory in circumstances where such Person purchases its requirements of Product from Sobi or its Affiliates or Sublicensees, but does not otherwise make any royalty or other revenue-based payment to Sobi or its Affiliates or its Sublicensees with respect to its intellectual property rights with respect to, or its purchase of, such Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.71"**DLBCL**" means diffuse large B-cell lymphoma.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72"**Effective Date**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.73"**EMA**" means the European Medicines Agency or any successor agency thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.74"**European Economic Area**" or "**EEA**" means the European Union, Iceland, Lichtenstein, and Norway.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.75"**European Patent**" means a Patent granted under the provisions of the European Patent Convention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.76"**European Union**" or "**EU**" means the economic, scientific, and political organization of member states of the European Union as it may be constituted from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.77"**Exchange Rate**" means the exchange rate used by a Party for the calculation of any payment under this Agreement that involves the conversion from other currencies to US Dollars or Euros, being the applicable exchange rate used by such Party or its Affiliates consistently for such Party's Accounting Standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.78"**Executive Officers**" means each Party's respective Chief Executive Officer or his or her designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.79"**Existing Patents**" has the meaning set forth in Section 13.2.3 (Representations and Warranties of ADCT).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.80"**Facility Agreement**" has the meaning set forth in Section 13.2.21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.81"**FD&C Act**" means the United States Federal Food, Drug and Cosmetic Act, as amended from time-to-time, together with any rules, regulations, and requirements promulgated thereunder (including all additions, supplements, extensions, and modifications thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.82"**FDA**" means U.S. Food and Drug Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.83"**Field**" means all uses of Products for human therapeutics and diagnostics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.84"**First Commercial Sale**" means, on a Product-by-Product basis, the first commercial sale by Sobi, its Affiliates, or its Sublicensees of any Product to a Third Party; *provided*, *however*, that (a) sales of Products to an Affiliate or Sublicensee of Sobi shall not constitute a First Commercial Sale unless such Affiliate or Sublicensee is an end user or prescriber of the Product and (b) complimentary delivery and delivery at nominal value of a Product for end use or consumption as "named patient sales," as "compassionate use" or through other "patient access programs" shall not constitute a First Commercial Sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.85"**First Line DLBCL**" means use of a Product for initial treatment (*i.e.*, prior to any other treatment) of DLBCL, as indicated on the Approved Labeling for such Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.86"**FTE**" means the equivalent of the work of one duly qualified employee of a Party full time for one Calendar Year carrying out Development, Manufacturing, Medical Affairs Activities, or other scientific or technical work under this Agreement. Overtime and work on weekends, holidays, and the like, in each case, will not be counted with any multiplier (*e.g.*, time-and-a-half or double time) toward the number of hours that are used to calculate the FTE contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87"**FTE Costs**" means for any period of time, the product obtained by multiplying the actual total FTEs (or portion thereof) devoted to the performance of applicable activities under this Agreement during such period, by the FTE Rate for such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.88"**FTE Rate**" means the amount for an FTE per Calendar Year, which for the Calendar Year ending on December 31, 2022 will be [\*\*] per FTE, pro-rated for the period beginning on the Effective Date and ending on December 31, 2022. Beginning on January 1, 2024 and on January 1 of each subsequent Calendar Year during the Term, the FTE Rate is subject to annual adjustment by the percentage increase or decrease in the applicable CPI comparing the levels of the applicable CPI as of September 30 of the two most recently completed Calendar Years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.89"**GCP**" means all applicable current good clinical practice standards for the design, conduct, performance, monitoring, auditing, recording, analyses, and reporting of Clinical Studies, including, as applicable, (a) as set forth in the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use Harmonized Tripartite Guideline for Good Clinical Practice (CPMP/ICH/135/95) and any other applicable guidelines for good clinical practice for trials on medicinal products anywhere in the world, (b) the Declaration of Helsinki (2013) as last amended at the 64th World Medical Association in October 2013 and any further amendments or clarifications thereto, (c) C.F.R. Title 21, Parts 50 (Protection of Human Subjects), 56 (Institutional Review Boards), and 312 (Investigational New Drug Application), as may be amended from time to time, and (d) any equivalent Applicable Law in any relevant country, each as may be amended and applicable from time to time, and, in each case, that provide for, among other things, assurance that the clinical data and reported results are credible and accurate, and protect the rights, integrity, and confidentiality of trial subjects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.90"**GDP**" means all applicable current good distribution practices and standards, as applicable, promulgated or endorsed by the EMA and EU as set out in European Commission Guidelines of 5 November 2013 on Good Distribution Practice of medicinal products for human (2013/C 343/01) and the European Commission Guidelines of 19 March 2015 and the European Commission Guidelines of 19 March 2015 on principles of Good Distribution Practice of active substances for medicinal products for human use (2015/C 95/01), each as may be amended and applicable from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.91"**GDPR**" shall mean Regulation 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.92"**Global Commercialization Strategy**" has the meaning set forth in Section 7.3 (Commercialization Plan).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.93"**Global Development Strategy**" has the meaning set forth in Section 5.1 (ADCT Global Development Strategy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.94"**Global Medical Affairs Strategy**" has the meaning set forth in Section 9.2 (Medical Affairs Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.95"**Global Registration Strategy**" has the meaning set forth in Section 6.4 (Registration Plans).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.96"**Global Study**" has the meaning set forth in Section 5.1 (ADCT Global Development Strategy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.97"**GLP**" means the current standards, practices, and procedures on good laboratory practice as set forth in Applicable Laws, including (a) 21 C.F.R. Part 58; and (b) EU Directive 2004/10/EC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.98"**GMP**" or "**cGMP**" means all Applicable Laws and guidelines applicable to Manufacture of the Compound or Product, including (in each case to the extent applicable to the jurisdiction in question) (a) the FD&C Act (21 U.S.C. 321 *et seq*.); (b) relevant United States regulations in Title 21 of the United States Code of Federal Regulations (including Parts 11, 210, and 211); (c) EU Directives 2001/83/EC and 2003/94/EC and Delegated Regulation (EU) 2017/1569; (d) the EU Guidelines to Good Manufacturing Practice Medicinal Products for Human and Veterinary Use, as set out in Volume 4 of the European Commission's Rules governing medicinal products in the EU; (e) ICH, Q7 Good Manufacturing Practice Guidance for Active Pharmaceutical Ingredients; (f) similar standards and Applicable Laws to those in (a) through (f), as are in effect at the time of Manufacture of the Compound or Product; and (g) all additional Regulatory Authority regulations that replace, amend, modify, supplant or complement any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.99"**Governmental Authority**" means any federal, national, state, provincial, or local government, or political subdivision thereof, or any multinational organization or any authority, agency, regulatory body, or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, or any court or tribunal (or any department, bureau or division of any of the foregoing, or any governmental arbitrator or arbitral body). Governmental Authorities include all Regulatory Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.100"**Identified Rights**" has the meaning set forth in Section 4.7 (Third Party In-Licenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.101"**IND**" means an investigational new drug application as set forth in Title 21 of the United States Code of the Federal Regulations, Section 312.20 *et seq.*, or the equivalent filed with a Regulatory Authority in another country (such as an application for a clinical trial authorization in the EU).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.102"**Indemnification Claim Notice**" has the meaning set forth in Section 14.3.1 (Notice of Claim).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.103"**Indemnified Party**" has the meaning set forth in Section 14.3.1 (Notice of Claim).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.104"**Indemnifying Party**" has the meaning set forth in Section 14.3.1 (Notice of Claim).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.105"**Infringement**" has the meaning set forth in Section 4.4.1 (Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.106"**Infringer**" has the meaning set forth in Section 4.4.1 (Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.107"**Initial Know-How Transfer**" has the meaning set forth in Section 2.15 (Know-How Transfer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.108"**Intellectual Property**" means inventions, discoveries, Patents, patent applications, trademarks, trademark applications, designs, Know-How, copyrights, and trade secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.109"**Investigator Sponsored Clinical Study**" means a Clinical Study of the Compound or Product in the Field that is sponsored and conducted by a physician, physician group or other Third Party not acting on behalf of a Party, its Affiliates, or its Sublicensees or (sub)licensees, as applicable, and who does not have a license from a Party, its Affiliates, or its Sublicensees to Commercialize such Compound or Product, pursuant to an IND owned by such Third Party, and with respect to which a Party, its Affiliates, or its Sublicensees provides clinical supplies of the Compound and Product, funding or other support for such Clinical Study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.110"**Joint Firm**" has the meaning set forth in Section 4.2.4(a) (Right to Prosecute).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.111"**Joint Know-How**" means all Know-How developed jointly by a Party or its Affiliates', licensees', Sublicensees', or Subcontractors' employees, agents, or independent contractors, or any Persons that are contractually required to assign or license such Know-How to such Party or any Affiliate of such Party, on the one hand, and the other Party's or its Affiliates', licensees', Sublicensees', or Subcontractors' employees, agents, or independent contractors, or any Persons that are contractually required to assign or license such Know-How to such Party or any Affiliate of such Party, on the other hand, in the performance of activities under this Agreement during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.112"**Joint Patents**" means all Patents that cover or claim any development or invention made jointly by a Party or its Affiliates', licensees', Sublicensees', or Subcontractors' employees, agents, or independent contractors, or any Persons that are contractually required to assign or license such Patents to such Party or any Affiliate of such Party, on the one hand, and the other Party's or its Affiliates', licensees', Sublicensees', or Subcontractors' employees, agents, or independent contractors, or any Persons that are contractually required to assign or license such Patents to such Party or any Affiliate of such Party, on the other hand, in the performance of activities under this Agreement during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.113"**Joint Technology**" means the Joint Know-How and the Joint Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.114"**JSC**" has the meaning set forth in Section 3.1 (Joint Steering Committee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.115"**Know-How**" means all information, data, results, materials, processes, protocols, formulations, regulatory information, inventions, discoveries, trade secrets, formulas, practices, knowledge, know-how, experience, dosage regimens, assays, diagnostics, product specifications, manufacturing techniques and costs, analytical and quality control methods and data, and marketing, pricing and distribution costs and sales practices, methods, and descriptions. Know-How shall not include any Patents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.116"**Knowledge**" means, when referring to the "knowledge" of ADCT, or similar phrase or qualification based on knowledge, the actual knowledge, without any inquiry or investigation, of [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.117"**Losses**" has the meaning set forth in Section 14.1 (Indemnification by Sobi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.118"**LOTIS-5 Clinical Trial**" means the clinical trial coded as NCT04384484 to evaluate the Compound with rituximab versus immunochemotherapy in participants with relapsed or refractory DLBCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.119"**MAA**" or "**Marketing Authorization Application**" means any (a) Biologics License Application submitted under Section 351(a) of the PHSA, (b) New Drug Application as defined in the FD&C Act, or (c) substantially similar application or submission to those set forth in clause (a) or clause (b) filed with a Regulatory Authority in a country or group of countries to obtain Regulatory Approval to Commercialize a biopharmaceutical or diagnostic product in that country or in that group of countries, including, with respect to the EU, a Marketing Authorization Application filed with the EMA pursuant to the centralized approval procedure or with the applicable Regulatory Authority of a country in the EU with respect to the mutual recognition or any other national approval, in each case ((a) through (c)), including any amendments thereto and supplemental applications, but excluding Pricing Approval applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.120"**Major European Countries**" means France, Germany, Italy and Spain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.121"**Major Market**" means each of: (a) the Major European Countries, (b) the United Kingdom and (c) Brazil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.122"**Manufacture**" and "**Manufacturing**" mean activities directed to manufacturing, processing, filling, finishing, packaging, labelling, quality control, quality assurance testing and release, stability testing, post-marketing validation testing, inventory control and management, storing and transporting any Product, including oversight and management of vendors therefor. For avoidance of doubt, Manufacture excludes all development activities for and related to the chemistry, manufacturing and control portion of an MAA, which activities will be considered "Development" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.123"**Manufacturing Coordinator**" has the meaning set forth in Section 8.1 (Manufacturing Coordinators).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.124"**Manufacturing Cost**" means, [\*\*]. In the case of Manufacturing Costs made in one or more currencies other than US Dollars, the amount of Manufacturing Costs in such other currencies shall be converted into US Dollars in accordance with ADCT's accounting procedure, to the extent reasonable and consistently applied by ADCT across all of its products and in accordance with ADCT's Accounting Standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.125"**Medical Affairs Activities**" means: (a) activities and training of field based medical liaisons, the coordination of medical information requests and medical education with respect to Products commercially launched in any Territory; and (b) those clinical studies conducted in any Territory after Regulatory Approval of a Product has been obtained that are neither intended nor designed to support a Regulatory Filing including medical affairs studies, post marketing studies, and Investigator Sponsored Clinical Studies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.126"**MedImmune**" has the meaning set forth in Section 1.127 (MedImmune Agreement).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.127"**MedImmune Agreement**" means the Second Amended and Restated License Agreement, by and between ADC Products (UK) Limited, MedImmune Limited ("**MedImmune**") and ADCT, dated May 9, 2016 and amended September 19, 2018 and March 12, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.128"**Net Sales**" means, with respect to any Product, the gross amounts invoiced, billed or otherwise recorded for sales or transfers of Products by Sobi or its Affiliates or Sublicensees (each, a "**Selling Party**") to any Third Party (including wholesalers or Distributors), less the following deductions, to the extent such deductions are actually paid, incurred, or otherwise taken, and are reasonable and customary, including: [\*\*];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1Components of Net Sales shall be determined in the ordinary course of business in accordance with the Selling Party's Accounting Standards, consistently applied. No deductions will be permitted for commissions paid to individuals or agents, nor for the cost of collections. For purposes of determining Net Sales, a "sale" shall not include complimentary delivery and delivery at nominal value of a Product for end use or consumption as "named patient sales," as "compassionate use" or through other "patient access programs." Amounts invoiced by Sobi or its Affiliates or its Sublicensees for the sale of Products to or among Affiliates or Sublicensees for resale shall not be included in the computation of Net Sales hereunder (unless such sales are final sales to the end user), but resales by Affiliates or Sublicensees will be included in the computation of Net Sales hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2With respect to any sale of any Product in the Sobi Territory for any substantive consideration other than monetary consideration on arm's length terms (which has the effect of reducing the invoiced amount below what it would have been in the absence of such non-monetary consideration), for purposes of calculating the Net Sales, such Product shall be deemed to be sold exclusively for cash at the average Net Sales price charged to Third Parties for cash sales of such Product in such country during the applicable reporting period (or if there were only de minimis cash sales in such country, at the fair market value as determined in good faith based on pricing in comparable markets).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3If a Product either is sold in the form of a combination product containing both the Compound and one or more active ingredient(s) as separate molecular entity(ies) that are not the Compound (a "**Combination Product**"), the Net Sales of such Product for the purpose of calculating royalties and sales-based milestones owed under this Agreement for sales of such Product, shall be determined as follows with respect to the country of sale: first, Sobi shall determine the actual Net Sales of such Combination Product (using the above provisions) in such country and then such amount shall be multiplied by the fraction A/(A+B), where A is the weighted (by sales volume) average invoice price of a Product containing, as its sole active ingredient, such Compound when sold separately in finished form (the "**Non-Combination Product**") and B is the weighted average invoice price of the other active ingredient(s) sold separately in finished form, in each case ((A) and (B)) during the applicable royalty reporting period or, if sales of both the Non-Combination Product and the other active ingredient(s) did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred; *provided* that the value attributed to the Non-Combination Product as a component of the Combination Product resulting from such calculation shall never be less than the weighted (by sales volume) average invoice price of the Non-Combination Product when sold separately in finished form. In the event that the Combination Product and the Non-Combination Product are

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not sold separately in finished form in the applicable country, Net Sales for purposes of determining payments hereunder shall be mutually agreed by the Parties based on the relative value contributed by each component (taking into account in good faith any applicable allocations and calculations that may have been made for the same period in other countries), and such agreement shall not be unreasonably withheld, conditioned, or delayed [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.129"**New Affiliate**" has the meaning set forth in Section 2.12.2 (New Affiliate Exception).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.130"**Non-Breaching Party**" has the meaning set forth in Section 15.2.2 (Termination for Material Breach).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.131"**Non-Combination Product**" has the meaning set forth in Section 1.128.3 (Net Sales).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.132"**Non-Disclosing Party**" has the meaning set forth in Section 12.2.1 (Publications by Sobi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.133"**Offset Floor**" has the meaning set forth in Section 10.2.7(d) (Limitations on Deductions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.134"**Opt-In**" means the withdrawal under Article 83(4) of the Agreement on a Unified Patent Court between the participating Member States of the European Union (2013/C 175/01) of the Opt-Out of a Patent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.135"**Opt-Out**" means the opt-out of a Patent from the exclusive competence of the Unified Patent Court under Article 83(3) of the Agreement on a Unified Patent Court between the participating Member States of the European Union (2013/C 175/01).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.136"**Out-of-Pocket Costs**" means any and all amounts paid to Third Parties (or payable to Third Parties and accrued in accordance with the Party's Accounting Standards) by a Party (or any of its Affiliates) in consideration for the performance of applicable activities by such Third Party, including for Development activities and Manufacture or supply of materials. For the avoidance of doubt, to avoid double counting of the same cost, Out-of-Pocket Costs allocable to Direct Development Costs but otherwise included within FTE Costs shall not be charged separately within Direct Development Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.137"**Packaging and Labeling**" means all activities required to prepare Product supplied by ADCT to Sobi as finished drug product for clinical use and commercial sale in the Sobi Territory, including secondary packaging and labelling with the approved packaging and label for the country in the Sobi Territory in which it is to be sold; stability or other testing; quality control; serialization and reporting; retaining samples according to cGMP; and release of the Product for sale in the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.138"**Party**" or "**Parties**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.139"**Patent**" means any patents and patent applications, including any patents issuing therefrom or claiming priority thereto, anywhere in the world, together with any extensions (including patent term extensions and supplementary protection certificates) and renewals thereof, reissues, re-examinations, restorations, substitutions, confirmation patents, registration patents, invention certificates, patents of addition, renewals, provisionals, converted provisionals, divisionals, continuations, and continuations-in-part, of any of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.140"**Patent Challenge**" has the meaning set forth in Section 15.2.4 (Termination for Patent Challenge).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.141"**Person**" means any individual, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company, limited liability partnership, unincorporated organization, government (or any agency or political subdivision thereof) or other legal entity or organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.142"**Personal Data**" shall have the same meaning as in the applicable European Data Protection Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.143"**Personally Identifiable Information**" means any data or information that identifies or can be used to identify a natural person, including any information defined as "personally identifiable information," "personal information," "personal data," "protected health information," or "non-public personal information" or their equivalents under applicable Data Security and Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.144"**Pharmacovigilance Agreement**" has the meaning set forth in Section 6.6.2 (Pharmacovigilance Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.145"**Pre-Existing Agreements**" means the agreements listed in Exhibit B (List of Pre-Existing Agreements) that ADCT entered into prior to the Effective Date under which ADCT has obtained the licenses or rights to ADCT Technology relevant to the Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.146"**Pricing Approval**" means an approval, agreement, determination, or other decision by the applicable Governmental Authority that establishes prices charged for pharmaceutical or biologic products at which a particular pharmaceutical or biologic product will be reimbursed by the Regulatory Authorities or other applicable Governmental Authorities in the applicable Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.147"**Prime Rate**" means the rate published in the print edition of the Wall Street Journal on that date on which such rate applies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.148"**Product**" means any pharmaceutical product comprised of or containing the Compound, in any dosage form, formulation, or mode of administration, and whether alone or in combination with one or more other therapeutically active ingredients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.149"**Product Packaging and Marketing Materials**" has the meaning set forth in Section 7.7 (Marketing and Promotional Literature; Packaging).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.150"**Product Trademark**" has the meaning set forth in Section 7.9.1 (Product Trademark).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.151"**Quality Agreement**" has the meaning set forth in Section 8.3 (Quality Agreements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.152"**Recall**" has the meaning set forth in Section 6.9 (Recalls).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.153"**Regulatory Approval**" means any approval, product and establishment license, registration, or authorization of any Regulatory Authority required for the manufacture, use, storage, import, transport, or Commercialization of a Product in accordance with Applicable Laws (excluding Pricing Approval).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.154"**Regulatory Authority**" means any applicable Governmental Authority responsible for granting Regulatory Approvals or Pricing Approvals or otherwise regulating or exercising authority with respect to the Development or Commercialization of Products, including FDA, EMA, and like authorities in other countries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.155"**Regulatory Exclusivity**" means, with respect to any Product in any country or jurisdiction in the Sobi Territory, the period of time during which: (a) a Party or its Affiliate or Sublicensee has been granted the exclusive legal right by a Regulatory Authority, other than through a Patent right, or is otherwise entitled to the exclusive legal right by operation of Applicable Law in such country to market and sell such Product, and such right precludes the receipt of Regulatory Approval of any Third Party product that is deemed to be the same or a similar pharmaceutical or biologic product; or (b) the data and information submitted by a Party or its Affiliate or Sublicensee to the relevant Regulatory Authority in such country or jurisdiction for purposes of obtaining Regulatory Approval of such Product may not be disclosed, referenced, or relied upon in any way by any Third Party or such Regulatory Authority to support the Regulatory Approval or marketing of any product by any Third Party in such country or jurisdiction, or if such data and information is disclosed, referenced, or relied upon to support a Regulatory Approval granted to any Third Party in such country or jurisdiction, then the product may not be placed on the market for any indication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.156"**Regulatory Filings**" means all filings, applications, documentation, correspondence, submissions, and notifications submitted to or received from a Regulatory Authority that are necessary or reasonably useful in order to Manufacture, Develop or Commercialize the Product in the Field, including, with respect to each Product, all INDs, MAAs, Regulatory Approvals, Pricing Approvals, and amendments and supplements of any of the foregoing, as well as the contents of any minutes from meetings (whether in person or by audio conference or videoconference) with a Regulatory Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.157"**Regulatory Milestone**" has the meaning set forth in Section 10.2.1 (Regulatory Milestone Payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.158"**Regulatory Milestone Payment**" has the meaning set forth in Section 10.2.1 (Regulatory Milestone Payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.159"**Related Substances**" means related substances for a Product (*e.g.*, reference standard, internal standard, impurities and radio-labelled equivalent) necessary for Sobi to conduct acceptance tests, preclinical studies or Clinical Studies, for Regulatory Filings or Commercialization in the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.160"**Royalty Term**" has the meaning set forth in Section 10.2.6 (Royalty Term).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.161"**Safety Data**" means Data (a) regarding any Adverse Event and serious adverse drug experience as such information is reportable to Regulatory Authorities; and (b) to the extent not included in (a), side effects, injury, toxicity or sensitivity reaction and incidents or severity thereof relating to a Product, and any other safety information relevant to the benefit risk evaluation of the Product. Safety Data also includes "adverse events," "adverse drug reactions," and "unexpected adverse drug reactions" as defined in the ICH Harmonised Tripartite Guideline for Clinical Safety Data Management: Definitions and Standards for Expedited Reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.162"**Sales Milestone**" has the meaning set forth in Section 10.2.3 (Sales Milestone Payments).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.163"**Sales Milestone Payment**" has the meaning set forth in Section 10.2.3 (Sales Milestone Payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.164"**Sales Representative**" means an individual who has been employed or engaged by a Party to conduct in-person presentations of the Product to prescribing healthcare professionals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.165"**Second Line DLBCL**" means the use of the Product as the second line treatment (*i.e.*, after one other treatment) of DLBCL, as indicated in the Approved Labeling for such Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.166"**Selling Party**" has the meaning set forth in Section 1.128 (Net Sales).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.167"**Sobi**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.168"**Sobi Agreement Technology**" means any Know-How and Patents arising from the performance of activities pursuant to this Agreement made or conceived, as between the Parties, solely by employees of Sobi or its Affiliates (or a Third Party acting on any of their behalf) to the extent related to the Compound or Products or the Manufacture thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.169"**Sobi Annual Co-Funding Cap**" has the meaning set forth in Section 5.3.4 (Option to Co-Fund Additional Global Studies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.170"**Sobi Commercialization Plan**" has the meaning set forth in Section 7.3 (Commercialization Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.171"**Sobi Development Plan**" has the meaning set forth in Section 5.2.1 (Sobi Development Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.172"**Sobi Existing Product Patents**" means all Patents Controlled by Sobi as of the Effective Date (and excluding, for clarity, Patents that may come into Sobi's Control after the Effective Date) that (a) Cover the composition of matter of, or the method of making or using, the sale, the offer for sale or importation of the Products as they exist as of the Effective Date or (b) are otherwise necessary to use, Develop, Manufacture, have Manufactured, sell, offer for sale, distribute, import, export or Commercialize the Products as they exist as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.173"**Sobi Global Study Cost Contribution**" means, with respect to a Co-Funded Global Study and a particular Calendar Quarter, twenty-five percent (25%) of the Direct Development Costs incurred by or on behalf of ADCT or its Affiliates during such Calendar Quarter in connection with such Global Study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.174"**Sobi Indemnitee**" has the meaning set forth in Section 14.2 (Indemnification by ADCT).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.175"**Sobi Know-How**" means all Know-How (excluding Sobi's interest in the Joint Know-How) that is Controlled by Sobi as of the Effective Date or during the Term that relates to a Product and is necessary to use, Develop, Manufacture, have Manufactured, sell, offer for sale, distribute, import, export, or Commercialize the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.176"**Sobi Medical Affairs Plan**" has the meaning set forth in Section 9.2 (Medical Affairs Plan).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.177"**Sobi Patents**" means all Patents (excluding Sobi's interest in the Joint Patents) Controlled by Sobi as of the Effective Date or during the Term that (a) Cover the composition of matter of, or the method of making or using, the sale, the offer for sale or importation of a Product or (b) are otherwise necessary to use, Develop, Manufacture, have Manufactured, sell, offer for sale, distribute, import, export, or Commercialize the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.178"**Sobi Registration Plan**" has the meaning set forth in Section 6.4 (Registration Plans).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.179"**Sobi Technology**" means Sobi Patents and Sobi Know-How, and Sobi's interest in the Joint Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.180"**Sobi Territory**" means any country excluding the ADCT Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.181"**Sobi Territory-Specific Budget**" has the meaning set forth in Section 10.3.3 (Reimbursement of Sobi Territory-Specific Costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.182"**Sobi Territory-Specific Costs**" means [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.183"**Sobi Territory-Specific Supply**" has the meaning set forth in Section 8.4 (Supply by ADCT).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.184"**Sobi Third Party License**" means a license or other agreement that Sobi obtains after the Effective Date under or otherwise in respect of one or more issued Patents from one or more Third Parties that Cover the Compound or Product (but excluding Patents that Cover the other active ingredient(s) in a Combination Product) in the Sobi Territory and that would be infringed by the sale of the Product in the Sobi Territory in the absence of such license or other rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.185"**Sobi Withholding Tax Action**" has the meaning set forth in Section 10.7.3 (Withholding Taxes Resulting from Sobi's Action).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.186"**Standard Contractual Clauses**" means (a) where the GDPR applies, the clauses annexed to European Commission Implementing Decision (EU) 2021/914 of 4 June 2021 on standard contractual clauses for the transfer of personal data to third countries pursuant to Regulation (EU) 2016/679 of the European Parliament and of the Council; and (b) where the UK GDPR applies, the International Data Transfer Agreement adopted under section 119A(1) of the Data Protection Act 2018 on 21 March 2022 or the International Data Transfer Addendum to the EU Commission Standard Contractual Clauses adopted under section 119A(1) of the Data Protection Act 2018 on 21 March 2022, in each case as amended, updated or replaced from time to time (or such other standard data protection clauses as may be adopted or approved by the UK Government or European Commission).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.187 "**Subcontractor**" has the meaning set forth in Section 2.6 (Subcontractors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.188 "**Sublicensee**" means either a Third Party or an Affiliate of Sobi that is not a Distributor, in each case that is granted a sublicense by Sobi (whether directly or through multiple tiers) to any of the ADCT Technology or Joint Technology to Develop, use, Manufacture, have Manufactured, sell, offer for sale, distribute, import and export or otherwise Commercialize a Product in the Field in the Sobi Territory pursuant to Section 2.4 (Sublicenses).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.189"**Sunshine Reporting Laws**" has the meaning set forth in Section 6.10 (Sunshine Reporting Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.190"**Supply Agreement**" has the meaning set forth in Section 8.2 (Supply Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.191"**Technology**" means Know-How and Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.192"**Term**" has the meaning set forth in Section 15.1 (Term).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.193"**Terminated Country**" has the meaning set forth in Section 15.4 (Country-by-Country Termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.194"**Territory**" means the ADCT Territory or the Sobi Territory, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.195"**Third Line DLBCL**" means the use of the Product for third line treatment (*i.e.,* after two or more other treatments) of DLBCL, as indicated in the approved labelling for such Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.196"**Third Party**" means a Person other than ADCT, Sobi or their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.197"**Third Party Infringement Claim**" has the meaning set forth in Section 4.5.1 (Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.198"**Third Party Stacking Floor**" has the meaning set forth in Section 10.2.7(d) (Third Party Royalty Payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.199"**Transaction**" has the meaning set forth in Section 2.12.2 (New Affiliate Exception).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.200"**Transaction Party**" has the meaning set forth in Section 2.12.2 (New Affiliate Exception).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.201"**Transfer Completion**" has the meaning set forth in Section 8.5 (Supply by Sobi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.202"**Transferred Regulatory Filings**" has the meaning set forth in Section 6.2 (Transfer of Regulatory Filings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.203"**UK DPA**" has the meaning set forth in Section 1.64 (Data Security and Privacy Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.204"**UK GDPR**" has the meaning set forth in Section 1.64 (Data Security and Privacy Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.205"**Unitary Patent Regulation**" means Regulation (EU) 1257/2012 implementing enhanced cooperation in the area of creation of unitary patent protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.206"**United States**" or "**U.S.**" means the United States of America and its territories and possessions (including the District of Columbia and Puerto Rico).

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.207"**US Dollars**," "**USD**" or "**$**" means United States Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.208"**Valid Claim**" means (a) a claim of an issued and unexpired patent included within the ADCT Patents, which has not been permanently revoked or declared unenforceable or invalid by an unappealable or unappealed decision of a court or other appropriate body of competent jurisdiction, and that has not been abandoned, disclaimed, denied, or admitted to be invalid or unenforceable through reissue, re-examination, or disclaimer or otherwise; or (b) a claim of a pending patent application included within the ADCT Patents, which claim has not been cancelled, withdrawn or abandoned, nor been pending for more than [\*\*] years from the earliest filing date to which such patent application or claim is entitled (unless and until granted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.209"**VAT**"&nbsp;&nbsp;&nbsp;&nbsp; means, within the European Union, any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2008/112) and, outside the European Union, any similar tax levied by reference to added value or sales.

**ARTICLE 2<br>LICENSES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Exclusive License Grant to Sobi**. Subject to the terms and conditions of this Agreement, ADCT hereby grants to Sobi an exclusive (even as to ADCT and its Affiliates) license, with the right to sublicense in accordance with Section 2.4 (Sublicenses), under the ADCT Technology, to use, Develop, sell, offer for sale, distribute, import, and Commercialize (but not Manufacture or have Manufactured) the Products in the Field in the Sobi Territory, and have such acts performed for it on Sobi's or its Affiliates' behalf and for Sobi's or its Affiliate's benefit by a Subcontractor in accordance with this Agreement (including Section 2.6 (Subcontractors)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Non-Exclusive License Grant to Sobi**. Subject to the terms and conditions of this Agreement, ADCT hereby grants to Sobi a non-exclusive license, with the right to sublicense in accordance with Section 2.4 (Sublicenses), under the ADCT Technology, to (a) conduct Packaging and Labeling of the Product in the Sobi Territory for use in the Field in the Sobi Territory; and (b) Manufacture and have Manufactured the Compound and Products in any country in the ADCT Territory or the Sobi Territory solely for use and sale of the Products in the Field in the Sobi Territory, which Manufacturing rights shall be exercisable by or on behalf of Sobi only upon Sobi notifying ADCT in writing that Sobi desires to assume the responsibility and obligation to Manufacture or have Manufactured the Compound or Products for the Sobi Territory-Specific Supply pursuant to Section 8.5 (Supply by Sobi).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.License Grant to ADCT**. Subject to the terms and conditions of this Agreement, Sobi hereby grants to ADCT a royalty-free, fully paid-up, non-exclusive license (with the right to grant sublicenses through multiple tiers) under the Sobi Technology (including the Sobi Agreement Technology) that is necessary (or, with respect to Sobi Agreement Technology, necessary or useful) to (a) Develop (including to conduct Global Studies) the Compound and Products in the Sobi Territory solely to the extent consented to by Sobi pursuant to Section 5.4.1 (Responsibility), (b) Manufacture the Compound and Products worldwide, (c) conduct non-clinical research with respect to the Compound and Products in the Sobi Territory (for the avoidance of doubt, any such non-clinical research excludes other Development activities), (d) conduct regulatory activities in the Sobi Territory in respect of the Product in Third Line DLBCL as described in Section 6.1.3 (Third Line DLBCL Exception) and in accordance with this Agreement, (e) Co-Promote the Products in the Sobi Territory in the event that ADCT exercises its Co-Promotion Option under Section 7.8 (ADCT Co-Promotion Option) and (f) otherwise

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perform ADCT's obligations and responsibilities under this Agreement in both the ADCT Territory and the Sobi Territory. Subject to the terms and conditions of this Agreement, Sobi hereby grants to ADCT a royalty-free, fully paid-up, non-exclusive license (with the right to grant sublicenses through multiple tiers) under the [\*\*] that is necessary or useful to Develop, Manufacture, perform Medical Affairs Activities for, and Commercialize the Compound and Products in the ADCT Territory (the "**ADCT Territory License**"). If ADCT desires to convert the ADCT Territory License into an exclusive license, then ADCT shall notify Sobi and the Parties shall negotiate in good faith the terms pursuant to which Sobi would grant such exclusive license to ADCT. If the Parties are unable to reach resolution on the terms of such exclusive license by the date that is [\*\*] following the date of notice of ADCT's desire to obtain an exclusive license, such terms shall be determined under the dispute resolution provisions of ARTICLE 16 (Dispute Resolution). Subject to the terms and conditions of this Agreement, Sobi hereby grants to ADCT a royalty-free, fully paid-up, non-exclusive license (with the right to grant sublicenses through multiple tiers to entities that perform services for ADCT with respect to the Development, Manufacture, performance of Medical Affairs Activities for or Commercialization of the Compound or any Product in the ADCT Territory) under the [\*\*] that are necessary to Develop, Manufacture, perform Medical Affairs Activities for and Commercialize the Compound and Products in the ADCT Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Sublicenses**. Subject to the terms and conditions of this Agreement, Sobi shall have the right to sublicense, or further sublicense as the case may be, the license rights granted in Section 2.1 (Exclusive License Grant to Sobi) and Section 2.2 (Non-Exclusive License Grant to Sobi) through multiple tiers in the Field and in the Sobi Territory to (a) its Affiliates (without ADCT's prior consent) or (b) Third Parties solely with ADCT's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Sublicense Requirements**. For any sublicense granted by Sobi under Section 2.4 (Sublicenses), (a) such sublicense shall be consistent with the applicable terms and conditions of this Agreement; (b) Sobi shall remain fully liable for the performance of such Affiliate and Third Party in connection with this Agreement and such Affiliate's or Third Party's compliance with all obligations under this Agreement; and (c) Sobi shall provide ADCT with a copy of each agreement with any Third Party pursuant to which a sublicense is granted pursuant to Section 2.4 (Sublicenses), from which Sobi may redact any terms unrelated to this Agreement. For clarity, no grant of any sublicense to a Third Party or an Affiliate shall relieve Sobi of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Subcontractors**. Subject to the terms and conditions of this Agreement, Sobi shall have the right to subcontract the rights granted to it under Section 2.1 (Exclusive License Grant to Sobi) and Section 2.2 (Non-Exclusive License Grant to Sobi) to Third Parties that (a) are performing services on behalf of, or for the benefit of, Sobi or its Affiliates or Sublicensees in connection with Sobi's or its Affiliates' or Sublicensees' efforts to Develop, use, Manufacture, have Manufactured, sell, offer for sale, distribute, import and export or otherwise Commercialize the Compound and the Products in the Sobi Territory in accordance with the terms of this Agreement, including for example, academic institutions, clinical trial sites, investigators, contract research organizations, Third Party manufacturers, co-promotion partners or any similar independent contractors, and (b) in each case, are not granted any rights to use such subcontracted rights for any other purposes and will not be granted by Sobi any rights for any other purposes to the Compound, Products, or intellectual property therein that may be created, in each case, in connection with the exercise of such subcontracted rights (each such Third Party, a "**Subcontractor**"); *provided* that any such subcontract shall be made pursuant to a written agreement that is consistent with this Agreement, including the confidentiality provisions hereof. Sobi shall assume responsibility for the breach of the terms of this Agreement, by any such Subcontractor. For clarity, any sublicenses granted by Sobi to Third Parties under the ADCT

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Technology must be in accordance with Section 2.4 (Sublicenses) and Section 2.5 (Sublicense Requirements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Pre-Existing Agreements**. The rights and licenses granted herein are subject in all cases to all restrictions and limitations with respect to the ADCT Technology or to which ADCT is subject, and to the rights of MedImmune, in each case, under the MedImmune Agreement. ADCT will be responsible for the payment obligations to the Third Parties under the Pre-Existing Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.ADCT Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.1.Pre-Existing Agreements**. ADCT hereby covenants that it shall not and shall cause its Affiliates not to, (a) terminate any Pre-Existing Agreement, (b) assign any Pre-Existing Agreement or any obligation of ADCT thereunder, except in connection with an assignment of this Agreement in its entirety pursuant to Section 17.5 (Assignment), or (c) change any term and condition of any Pre-Existing Agreement, in each case in a manner that does, or is reasonably expected to, adversely affect any of Sobi's rights or obligations under this Agreement, without the prior written consent of Sobi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.2.**[\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.Sobi Covenants**. Other than as permitted under this Agreement (including pursuant to ARTICLE 8 (Manufacturing and Supply) and the Supply Agreement) or by law, Sobi will not use, make, have made, sell, offer for sell, import, Develop, Manufacture, perform Medical Affairs Activities for, Commercialize, or otherwise exploit the Compound or Products outside of the Field or outside of the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10.Reservation of Rights**. ADCT reserves all rights to ADCT Technology that are not specifically granted to Sobi, and Sobi reserves all rights to Sobi Technology that are not specifically granted to ADCT, under this ARTICLE 2 (Licenses), or, following any termination of this Agreement, under Section 15.3.2 (License Back to ADCT), and no further licenses, either by implication or estoppel, are contemplated or granted hereunder. In addition, and without limiting the foregoing sentence, ADCT hereby expressly retains, for itself and its Affiliates and (sub)licensees, (a) the rights under the ADCT Technology to exercise its rights and perform its obligations under this Agreement in both the ADCT Territory and the Sobi Territory, whether directly or through one or more Affiliates or (sub)licensees (other than Sobi) or Subcontractors, (b) the right to Develop, Commercialize, perform Medical Affairs Activities, and otherwise exploit the Compound and Products in the ADCT Territory, (c) the right to Manufacture the Compound and Products worldwide, (d) the right to conduct non-clinical research (for the avoidance of doubt, any such non-clinical research excludes other Development activities) in the Sobi Territory, (e) the right to Develop (including to conduct Global Studies) the Compound and Products in the Sobi Territory solely to the extent consented to by Sobi pursuant to Section 5.4.1 (Responsibility), (f) the right to conduct regulatory activities in the Sobi Territory in respect of the Product in Third Line DLBCL as described in Section 6.1.3 (Third Line DLBCL Exception) and in accordance with this Agreement, and (g) the right to Co-Promote the Products in the Sobi Territory in the event that ADCT exercises its Co-Promotion Option under Section 7.8 (ADCT Co-Promotion Option).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11.Combination Products Rights**. Notwithstanding any other provision of this Agreement, for purposes of the license grants under Section 2.1 (Exclusive License Grant to Sobi), Section 2.2 (Non-Exclusive License Grant to Sobi), Section 2.3 (License Grant to ADCT) and Section 15.3.2 (License Back to ADCT), with respect to any Product that is a Combination

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Product, such license will only include rights with respect to the Compound component of such Combination Product and not any other active ingredient Controlled by ADCT or any of its Affiliates, or by Sobi or any of its Affiliates, as applicable, unless the Parties agree otherwise in a separate written agreement or amendment to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12.Exclusivity**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.Mutual Exclusivity Covenant**. Subject to Section 2.12.2 (New Affiliate Exception), commencing on the Effective Date, except with respect to the exploitation of the Compound and Products in accordance with and pursuant to this Agreement, neither Party nor any of its Affiliates shall, alone or with or for any Third Party, (a) during the time period commencing on the Effective Date and lasting solely during the Term until the fifth (5<sup>th</sup>) anniversary of the first MAA approval of the Product for the first indication in the first of any of Germany, France, United Kingdom, Spain, or Italy, engage in, or obtain rights from a Third Party to engage in, Development of any Competitive Product in DLBCL in the Sobi Territory, or (b) during the Term, Commercialize, or obtain rights from a Third Party to Commercialize, any Competitive Product in the Sobi Territory (each of (a) and (b), "**Competitive Activities**"). Notwithstanding the foregoing, ADCT's or its Affiliates' or licensees' exploitation of the Compound and Products in the Sobi Territory pursuant to any of ADCT's retained rights under Section 2.10 (Reservation of Rights) will not be considered Competitive Activities hereunder. [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.2.New Affiliate Exception**. Notwithstanding Section 2.12.1 (Mutual Exclusivity Covenant), if (a) a Third Party becomes an Affiliate of a Party during the Term through merger, acquisition, consolidation, Change of Control, or other similar transaction (any such Third Party, a "**New Affiliate**" and any such merger, acquisition, consolidation, Change of Control, or other similar transaction, a "**Transaction**") and (b) such New Affiliate, as of the execution date of the definitive agreement with respect to such Transaction, is engaged in Competitive Activities with respect to one or more Competitive Products, unless otherwise agreed by the Parties in writing, then such Party (the "**Transaction Party**") and its Affiliates may continue to perform such Competitive Activities after such Transaction, and such Transaction Party will not be in violation of its exclusivity obligations set forth in Section 2.12.1 (Mutual Exclusivity Covenant), as long as [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13.Rights in Bankruptcy**. All licenses and similar use rights granted under or pursuant to any section of this Agreement are and will otherwise be deemed to be for purposes of the bankruptcy law or any other comparable or similar laws or regulations in any relevant country or jurisdiction (collectively, the "**Bankruptcy Laws**") and licenses of rights to "intellectual property." The Parties agree that the applicable Party, as licensees or sublicensees of such rights under this Agreement, will retain and may fully exercise all of its rights and elections under the applicable Bankruptcy Laws. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against a Party under the applicable Bankruptcy Laws, the other Party will be entitled to a complete duplicate of (or complete access to, as appropriate) such intellectual property and all embodiments of such intellectual property (including supporting materials such as files relating to prosecution or enforcement), which, if not already in such other Party's possession, will be promptly delivered to it upon its written request thereof. Any agreements supplemental to this Agreement will be deemed to be "agreements supplementary to" this Agreement for purposes of the Bankruptcy Laws. The upfront payment under Section 10.1 (Upfront Payment), Regulatory Milestone Payments, Sales Milestone Payments and royalty payments payable under Section 10.2 (Milestone and Royalty Payments) will be considered "royalties" for purposes of the Bankruptcy Laws.

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.14.Right of Reference**. Subject to Section 5.3 (Clinical Studies), each Party hereby grants to the other Party, its Affiliates, and its licensees and Sublicensees, without any charge or fee, a right of reference to all Data included in the Regulatory Filings and marketing authorizations Controlled by such Party and to all Data Controlled by such Party included in Regulatory Filings and marketing authorizations Controlled by such other Party, in each case, relating to the Compound and Products to the extent necessary or useful for such other Party (a) in the case of Sobi, its Affiliates, and its Sublicensees, to Develop, conduct Packaging and Labeling, and Commercialize the Products in the Field in the Sobi Territory, and, upon Sobi notifying ADCT in writing that Sobi desires to assume the responsibility and obligation to Manufacture or have Manufactured the Compound or Products for the Sobi Territory-Specific Supply pursuant to Section 8.5 (Supply by Sobi), to Manufacture the Compound and Products in the Field in the Sobi Territory and the ADCT Territory, in accordance with this Agreement, and (b) in the case of ADCT, its Affiliates, and its licensees, to Develop, Manufacture, and Commercialize the Compound and Products in any field in any country in the ADCT Territory. Each Party shall provide a signed statement to the other Party that such other Party may rely on, in support of the approval of such other Party's Regulatory Filings, and provide the applicable Regulatory Authority access to (i) the underlying raw data included in such Regulatory Filings and marketing authorizations Controlled by such Party and (ii) the underlying raw data Controlled by such Party included in such Regulatory Filings and marketing authorizations Controlled by such other Party. Each Party shall store the relevant Data and information Controlled by such Party to be used for applying, obtaining and maintaining Regulatory Approval for the Products in accordance with such Party's standard operating procedures or as reasonably requested in writing by the other Party for purposes of the other Party's compliance with Applicable Law in the Territory. Each Party will bear its own costs and expenses associated with providing the other Party with the right of reference pursuant to this Section 2.14 (Right of Reference). Each Party will take such actions as may be reasonably requested by the other Party to give effect to the intent of this Section 2.14 (Right of Reference) and to give the other Party the benefit of the granting Party's Regulatory Filings in the other Party's Territory as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.15.Know-How Transfer**. Within [\*\*] days after the Effective Date, ADCT shall transfer and deliver to Sobi, in order to enable Sobi to practice under the licenses granted to Sobi under Section 2.1 (Exclusive License Grant to Sobi) and under Section 2.2 (Non-Exclusive License Grant to Sobi), copies of the ADCT Know-How (including materials) that are necessary or useful to enable Sobi to Develop, conduct Packaging and Labeling and Commercialize (but not Manufacture or have Manufactured) the Products in the Sobi Territory as contemplated under this Agreement ("**Initial Know-How Transfer**"); *provided* that ADCT shall not transfer to Sobi any ADCT-Funded Global Study Data unless and until Sobi has exercised its ADCT-Funded Global Study Opt-In right for the applicable ADCT-Funded Global Study under Section 5.3.5 (Opt-In for Global Study). Following any such exercise of the ADCT-Funded Global Study Opt-In right, ADCT shall promptly transfer to Sobi all such ADCT-Funded Global Study Data available as of the date of such exercise, and thereafter promptly following any subsequent development or acquisition of such ADCT-Funded Global Study Data. Additionally, in connection with the Initial Know-How Transfer, ADCT will transfer to Sobi, to the extent within ADCT's Control, copies of all relevant materials related to the Products and that are relevant for Development, Packaging and Labeling, or Commercialization of Products in the Sobi Territory. If, following the Initial Know-How Transfer from ADCT, Sobi identifies additional materials or information within the ADCT Know-How (other than ADCT-Funded Global Study Data) that Sobi reasonably believes are necessary or useful to enable Sobi to Develop, conduct Packaging and Labeling and Commercialize the Products in the Sobi Territory as contemplated under this Agreement, if Sobi notifies ADCT of such additional materials or information, then ADCT will provide copies of such materials and information to the extent within ADCT's Control and that

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already exist and are available to ADCT as of the Effective Date or at the applicable transfer time, and such additional materials and information provided by ADCT will be considered part of the Initial Know-How Transfer. ADCT will provide such Initial Know-How Transfer [\*\*] at no cost to Sobi. For clarity, the Initial Know-How Transfer and related assistance provided under this Section 2.15 (Know-How Transfer) will not include (a) the activities conducted by ADCT under Section 5.3 (Clinical Studies), Section 5.5 (Development Cooperation), Section 6.1.3 (Third Line DLBCL Exception), or ARTICLE 8 (Manufacturing and Supply) or (b) ADCT Know-How related to the Manufacture of Products (other than Packaging and Labeling and ADCT Know-How necessary or reasonably useful for Sobi to perform its obligations and exercise its rights under this Agreement to Develop or Commercialize, but not Manufacture, the Products), which transfer, if any, will be governed by the provisions of Section 8.5 (Supply by Sobi).

**ARTICLE 3<br>GOVERNANCE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Joint Steering Committee**. Within the first [\*\*] days after the Effective Date, the Parties shall establish a joint steering committee ("**JSC**") composed of three (3) senior representatives of each Party with appropriate expertise (or such other number as reasonably agreed by the Parties based on available staffing resources with an equal number of representatives from each Party at all times) to manage the overall collaboration of the Parties with respect to the Sobi Territory under this Agreement. The JSC shall in particular:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)provide a forum for the discussion and coordination of the Parties' activities under this Agreement, including with respect to the Development of the Products in their respective Territories;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)review and discuss the Global Development Strategy provided by ADCT under Section 5.1 (ADCT Global Development Strategy) and any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)review and discuss the Global Registration Strategy provided by ADCT under Section 6.4 (Registration Plans) and any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)review and discuss the Global Commercialization Strategy provided by ADCT under Section 7.3 (Commercialization Plan) and any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)review and discuss the Global Medical Affairs Strategy provided by ADCT under Section 9.2 (Medical Affairs Plan) and any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)review, discuss and approve the overall strategy for the Development, Medical Affairs Activities, and Commercialization of the Products in the Sobi Territory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)review, discuss, and approve the Sobi Development Plan and amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)review, discuss and approve the conduct of an Investigator Sponsored Clinical Study to be conducted by Sobi in the Sobi Territory, subject to Section 9.4 (Investigator Sponsored Clinical Study) (to be under the joint medical committee once established under Section 9.7 (Joint Medical Committee));

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)review and discuss the progress and results of the Development of the Products in the Sobi Territory, including the Development reports provided by Sobi under Section 5.4.3 (Development Reports);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)review and approve, on an annual basis, the Sobi Territory-Specific Budget, as described in Section 10.3.3 (Reimbursement of Sobi Territory-Specific Costs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)attempt to resolve any disputed reports or invoices as described in Section 10.4 (Payment of Invoices; Disputes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)review, discuss and approve the Sobi Commercialization Plan, including any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)review, discuss and approve the Sobi Development Plan, including any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)review, discuss and approve the Sobi Medical Affairs Plan, including any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)review, discuss and approve the Sobi Registration Plan, including any amendments thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)review and discuss the Development reports provided by ADCT under Section 5.4.3 (Development Reports);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)review and discuss the reports provided by Sobi under Section 5.4.3 (Development Reports), Section 7.3 (Commercialization Plan), and Section 9.5 (Medical Affairs Reports);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) review, discuss and approve any amendments to any Additional Global Study Plan for any Co-Funded Global Studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)discuss concerns raised by either Party pursuant to Section 6.8 (No Harmful Actions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)review and discuss Product Packaging and Marketing Materials that Sobi intends to use in the Sobi Territory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)coordinate with the Manufacturing Coordinators on Manufacturing-related matters and review and discuss the Manufacturing Cost summary presented to the JSC by ADCT's Manufacturing Coordinator each year, as described in Section 8.1 (Manufacturing Coordinators);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)review, discuss, approve and oversee the technology transfer plan, if initiated, and monitor the progress activities set forth in Section 8.5 (Supply by Sobi) until the occurrence of the Transfer Completion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)determine whether to conduct any medical affairs sponsored study as a Global Study;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)review, discuss and approve the Company Core Data Sheet for the Product or any updates thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)coordinate the wind-down of Sobi's activities during the termination transition period, if any, as described in Section 15.3.5 (JSC Coordination; Cooperation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)establish joint subcommittees as necessary or advisable to further the purpose of this Agreement, which joint subcommittees may include a joint development committee, a joint commercialization committee, joint patent committee, joint medical committee, joint supply committee and a joint safety committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)direct and oversee the operation of any joint subcommittee established by the JSC, including resolving any disputed matter of such committees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ab)perform such other functions or obligations specifically delegated to it as expressly set forth in this Agreement or delegated to it by the Parties' written agreement.

The Parties anticipate that the JSC will not be involved in day-to-day implementation of activities under this Agreement. The members of the JSC for each Party shall be individuals who have the authority to make decisions on behalf of such Party. Each Party may replace its representatives on the JSC at any time upon written notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Procedures**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Chairperson**. The JSC (or any sub-committee) shall be co-chaired, with one (1) member of the JSC (or any sub-committee) designated by ADCT and one (1) member of the JSC designated by Sobi (each, a "**Chairperson**"), who will be responsible for organizing meetings, including, if feasible, ensuring that objectives for each meeting are set and achieved. Either Party shall have the right to change its Chairperson by written notice to the other Party. Responsibility for running each meeting of the JSC (or any sub-committee) will alternate between the Chairpersons from meeting to meeting, with ADCT's Chairperson running the first meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.Meetings**. The JSC (or any sub-committee) will hold meetings no less frequently than four (4) times per Calendar Year during the Term unless otherwise agreed by the Parties. Meetings of the JSC (or any sub-committee, including the JDC) shall be effective only if at least one (1) representative of each Party is present or participating. The JSC (or any sub-committee) may meet either (a) in person at either Party's facilities or at such locations as the Parties may otherwise agree; or (b) by audio or video teleconference; *provided* that at least one (1) meeting per Calendar Year shall be held in person with the location to alternate between ADCT's and Sobi's offices, with the first such meeting to be held at ADCT's offices. With the prior consent of the other Party's representatives (such consent not to be unreasonably withheld, conditioned or delayed), each Party may invite non-members to participate in the discussions and meetings of the JSC (or any sub-committee); *provided*, *further*, that such participants shall have no vote and shall be subject to the confidentiality provisions set forth in ARTICLE 11 (Confidentiality). Additional meetings of the JSC (or any sub-committee) may also be held with mutual agreement of the Parties, or as required under this Agreement, and neither Party will unreasonably withhold, delay or condition its consent to hold such an additional meeting. The Alliance Managers for the JSC (or Chairpersons or their designees in case of sub-committees) will jointly prepare reasonably detailed written draft minutes that reflect, without limitation, all material discussions, proposals, responses and decisions at such meetings. The Chairperson of

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each committee meeting or his or her delegate shall (i) circulate meeting minutes prepared by the Alliance Managers within [\*\*] Business Days after each committee meeting to each committee member for review and (ii) facilitate review of such meeting minutes by the committee members for approval in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.Limitation of Authority**. The JSC and its subcommittees will have only such powers as are specifically delegated to it hereunder and will not be a substitute for the rights of the Parties. Without limiting the generality of the foregoing, neither the JSC nor any of its subcommittees will have any power to amend this Agreement, waive compliance with any obligation or term hereunder or determine whether any breach hereunder has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.JSC Decision-Making**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.1.Decision-Making Procedure**. Subject to the terms of this Section 3.3 (JSC Decision-Making), actions to be taken and decisions made by the JSC shall be taken or made only following a unanimous vote, with each Party's representatives collectively having one (1) vote on behalf of such Party. For each meeting of the JSC, the attendance of at least one (1) representative of each Party shall constitute a quorum. Action or decision on any matter may be taken at a meeting, in-person, by teleconference, videoconference or by written consent. If the JSC fails to reach unanimous consent on a particular matter within [\*\*] days of a Party having requested a formal vote on such matter (or, if such matter is urgent, within [\*\*] days of such request), then either Party may submit such matter for resolution to the Executive Officers for attempted resolution by good faith negotiations within [\*\*] days after such notice is received (or, if such matter is urgent, within [\*\*] days of such request), subject to Section 3.3.2 (Final Decision-Making Authority). Except as otherwise expressly set forth in this Agreement, only the phrases "determine," "designate," "confirm," "approve," or "determine whether to approve" by the JSC and similar phrases used in this Agreement will mean approval in accordance with this Section 3.3 (JSC Decision-Making), including the escalation and tie-breaking provisions herein. For the avoidance of doubt, matters that are specified to be reviewed and discussed by the JSC (as opposed to reviewed, discussed, and approved) do not require any agreement or decision by either Party and are not subject to the voting and decision-making procedures set forth in this Section 3.3 (JSC Decision-Making).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.2.Final Decision-Making Authority**. If the JSC is unable to reach a decision by unanimous vote pursuant to Section 3.3.1 (Decision-Making Procedure) and the Executive Officers cannot unanimously agree on such matter within [\*\*] days of such matter being submitted to them pursuant to Section 3.3.1 (Decision-Making Procedure) (or, if such matter is urgent, within [\*\*] days of such request), then [\*\*]. In no event shall the JSC, any subcommittee or working group thereof, or the Executive Officers, have the right or power to (A) amend this Agreement, (B) expand or narrow the responsibilities of the JSC, (C) decide any matter in contravention of any terms of this Agreement, or (D) change any rights or obligations of either Party under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.3.Limitations on Decision-Making**. Notwithstanding anything to the contrary in this Agreement, to the extent that a Party has final decision-making authority with respect to any matter pursuant to Section 3.3.2 (Final Decision-Making Authority), such decision-making Party shall not exercise such final decision-making authority to: (a) [\*\*]; or (b) [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Expenses**. Each Party will be responsible for all of its own travel and other costs and expenses for its respective members, designees, and non-member invitees to attend meetings of, and otherwise participate on, the JSC and any subcommittees or working groups.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Alliance Manager**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.1.Appointment of Alliance Managers**. Promptly after the Effective Date, each Party shall appoint an employee of such Party having appropriate qualification and experience to act as the liaison with the other Party (the "**Alliance Manager**"). Each Alliance Manager shall be responsible for coordinating and managing processes and interfacing between the Parties on a day-to-day basis throughout the Term. The Alliance Managers will ensure communication to the JSC of all relevant matters raised at any joint subcommittees or working groups. Each Alliance Manager shall attend meetings of the JSC as a non-voting participant. The Alliance Manager shall be the primary contact for the Parties regarding the activities contemplated by this Agreement and shall facilitate all such activities hereunder. Each Party may replace its Alliance Manager with an alternative employee at any time in its sole discretion with prior written notice to the other Party. Each Alliance Manager shall be charged with creating and maintaining a collaborative work environment within the JSC and its subcommittees. Each Party will be responsible for all of its own costs with respect to its Alliance Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.2.Specific Alliance Manager Responsibilities**. The Alliance Managers shall be responsible for (a) scheduling meetings of the JSC, (b) preparing and circulating an agenda in advance of each JSC meeting, and (c) acting as secretary at each JSC meeting and preparing the draft minutes of such JSC meeting, which shall provide a description in reasonable detail of the discussions held at the meeting and a list of any actions, decisions or determinations approved by the JSC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Discontinuation of the JSC**. The activities to be performed by the JSC shall solely relate to governance under this Agreement, and are not intended to be or involve the delivery of services. Subject to the provisions of Section 15.3.5 (JSC Coordination; Cooperation), the JSC shall continue to exist until the date when the Parties mutually agree to disband the JSC. Once the Parties mutually agree to disband the JSC, the JSC shall have no further obligations under this Agreement; *provided*, *however*, that the Parties may re-establish a new JSC after the disbandment of the former one if agreed by the Parties. After the disbandment of the JSC, each Party shall designate a contact person for the exchange of information under this Agreement or such exchange of information shall be made through the Alliance Managers, and decisions of the JSC shall be decisions as between the Parties, subject to the other terms and conditions of this Agreement. In the event the JSC is disbanded as provided above, any decisions that are designated under this Agreement as being subject to the review, discussion or decision-making of the JSC shall be subject to the review, discussion or decision-making of the Parties directly.

**ARTICLE 4****<br> **INTELLECTUAL PROPERTY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Ownership**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.Background Intellectual Property**. As between the Parties, and subject to the licenses granted under this Agreement, each Party retains all right, title and interest in and to all intellectual property rights that such Party owns or Controls as of the Effective Date or that it develops or otherwise acquires after the Effective Date and outside the activities conducted pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.2.ADCT Ownership of New Intellectual Property**. Subject to the terms and conditions set forth in this Agreement, including the licenses granted in ARTICLE 2

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(Licenses), as between the Parties, the entire right, title and interest in and to all Know-How and Patents arising from the performance of activities pursuant to this Agreement made or conceived solely by employees of ADCT or its Affiliates (or a Third Party acting on any of their behalf) shall be owned by ADCT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.3.Sobi Ownership of New Intellectual Property**. Subject to the terms and conditions set forth in this Agreement, including the licenses granted in ARTICLE 2 (Licenses), as between the Parties, the entire right, title and interest in and to all Know-How and Patents arising from the performance of activities pursuant to this Agreement made or conceived solely by employees of Sobi or its Affiliates (or a Third Party acting on any of their behalf) shall be owned by Sobi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.4.Joint Ownership of New Intellectual Property**. Subject to the terms and conditions set forth in this Agreement, including the licenses granted in ARTICLE 2 (Licenses), as between the Parties, the entire right, title and interest in and to all Joint Know-How and Joint Patents shall be owned jointly by ADCT and Sobi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.5.Inventorship**. For purposes of this Section 4.1 (Ownership), inventorship for inventions and discoveries first made during the course of the performance of activities pursuant to this Agreement shall be determined in accordance with U.S. patent law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.6.Disclosure**. On an ongoing basis during the Term, on or before the date that is [\*\*] days after the next-to-occur JSC meeting (and in any event, prior to the filing of any patent application), (a) ADCT shall disclose in writing to Sobi a detailed description of any ADCT Know-How that could reasonably result in a patentable invention, in each case which have not been previously disclosed to Sobi under this Section 4.1.6 (Disclosure); *provided* that ADCT shall not be obligated to disclose any such ADCT Know-How that could reasonably result in a patentable invention related to Manufacturing prior to initiation of a technology transfer in accordance with Section 8.5 (Supply by Sobi); (b) Sobi shall promptly disclose to ADCT in writing any Sobi Know-How that could reasonably result in a patentable invention necessary for ADCT to exercise the license under Section 2.3 (License Grant to ADCT) (if any), in each case which have not been previously disclosed to ADCT under this Section 4.1.6 (Disclosure); and (c) each Party shall disclose the development, making, conception or reduction to practice of any Joint Know-How that could reasonably result in a patentable invention, together with all invention disclosures or other similar documents submitted to ADCT or Sobi (as applicable) by its or its Affiliates' employees, agents, or independent contractors relating thereto, in each case which have not been previously disclosed by the applicable Party. Each Party will also promptly respond to reasonable requests from the other Party for additional information relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.7.Invention Assignment**. Each Party and its respective Affiliates performing activities under this Agreement will enter into with each of their respective employees legally binding and sufficient agreements or employment policies for the development of inventions by such employees. Without limiting the generality of the foregoing, each Party and its respective Affiliates will, and will cause its applicable licensees and sublicensees of Development or Commercialization rights for the Product, as applicable, to, enter into an agreement or employment policy with each of its employees performing activities under this Agreement that (a) compels prompt disclosure to such Party (or its licensee or sublicensee, as applicable) of all Intellectual Property developed, invented, or filed by such employee during any performance under this Agreement; (b) automatically assigns to such Party (or its licensee or Sublicensee, as applicable) all rights, title, and interests in and to all such Intellectual Property, and requires each employee to execute all documents and take such other actions as may be

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necessary to effectuate such assignment; and (c) solely to the extent applicable, includes a waiver of pre-emption rights under any Applicable Law in such region to the effect that the employee will confirm that she will not have any right or claim with respect to any Intellectual Property derived from her work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.8.Right to Practice Joint Know-How and Joint Patents**. Except to the extent the applicable Party is restricted by the express terms of this Agreement and subject to the licenses granted under ARTICLE 2 (Licenses), including the retained rights under Section 2.10 (Reservation of Rights), during the Term, each Party shall have the right to practice and exploit the Joint Patents and Joint Know-How, with full rights to license its interest therein only in its respective Territory or, with respect to ADCT and its Affiliates pursuant to its retained rights under Section 2.10 (Reservation of Rights), and without any duty of accounting to or any duty to seek consent from the other Party. Subject to the licenses granted under ARTICLE 2 (Licenses), including the retained rights under Section 2.10 (Reservation of Rights), during the Term, each Party may only practice or exploit the Joint Patents and Joint Know-How, including license its interest therein, in the other Party's Territory with the prior written consent of the other Party; *provided* that ADCT and its Affiliates may practice and exploit the Joint Patents and Joint Know-How pursuant to its retained rights under Section 2.10 (Reservation of Rights). Each Party shall protect Joint Know-How by taking all reasonable steps (of no less standard than it uses to protect its own confidential know-how) to prevent its public disclosure. Upon the reasonable request of either Party, the other Party shall take such further actions reasonably requested by the other Party to evidence or confirm the requesting Party's right to engage in such activities with respect to the Joint Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.9.Joint Patent Committee**.&nbsp;&nbsp;&nbsp;&nbsp; Within [\*\*] days of the Effective Date, the Parties, acting through the JSC, shall (a) establish a joint patent committee, which shall be a subcommittee of the JSC, and (b) determine the scope of the joint patent committee's functions, which shall include (i) facilitating the efficient handling of matters set forth in Section 4.2 (Patent Prosecution) to Section 4.6 (European Patents) and (ii) making decisions as to day-to-day Patent-related matters (as determined by the JSC) but not, for the avoidance of doubt, decisions as to new Patent application filings, abandonments, enforcement, defense of Patents or other matters set forth in Section 4.2 (Patent Prosecution) to Section 4.6 (European Patents) that expressly require approvals or other decisions of a Party. The joint patent committee shall comprise one representative of each Party, who may be replaced at any time by providing written notice thereof (but otherwise Section 3.2 (Procedures) shall apply to the joint patent committee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.10.Assignment Obligation**. ADCT shall cause all Persons who perform any Global Study on behalf of, and run by, ADCT, and Sobi shall cause all Persons who perform any Development of the Products on behalf of, and run by, Sobi, to be under an obligation to assign (or, if such Party is unable to cause such Person to agree to such assignment obligation despite using commercially reasonable efforts to negotiate such assignment obligation, provide a license under) their rights in any Know-How, including Data, resulting therefrom to such Party, except where Applicable Law requires otherwise and except in the case of governmental, not-for-profit and public institutions that have standard policies against such an assignment (in which case a suitable license, or right to obtain such a license, shall be obtained).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Patent Prosecution**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Definition of Prosecution**. As used herein, "prosecution" of Patents shall include all communication and other interaction with any patent office or patent authority having jurisdiction over a Patent application throughout the world in connection with pre-grant proceedings or post-grant proceedings.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.ADCT Patents**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Right to Prosecute**. Except as otherwise provided in Section 4.2.2(b) (Review and Consult) or Section 4.2.2(c) (Abandonment), as between the Parties, ADCT shall have the sole right to prepare, file, prosecute and maintain the ADCT Patents throughout the world. Sobi will be responsible for one hundred percent (100%) of the reasonable costs of patent attorneys and filing and other official fees incurred by or on behalf of ADCT after the Effective Date with respect to the prosecution of such ADCT Patents in the Sobi Territory, and will reimburse ADCT for such costs no later than [\*\*] days after receiving an invoice with reasonable supporting documentation for such costs. ADCT will be responsible for one hundred percent (100%) of the costs incurred by or on behalf of ADCT with respect to the prosecution of such ADCT Patents in the ADCT Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Review and Consult**. Once each calendar year (but without limiting ADCT's other notification obligations under this ARTICLE 4 (Intellectual Property)), ADCT will provide to Sobi a status update on the prosecution of the ADCT Patents in the ADCT Territory. ADCT will consult with Sobi and keep Sobi informed of the prosecution of the ADCT Patents in the Sobi Territory. In addition, ADCT will provide Sobi with drafts of all proposed substantive filings in the Sobi Territory and correspondence to any patent authority in the Sobi Territory in connection with the prosecution of the ADCT Patents in the Sobi Territory for Sobi's review and comment prior to the submission of such proposed filings and correspondence to the European Patent Office or other applicable patent office in the Sobi Territory. ADCT will consider in good faith and incorporate Sobi's reasonable comments on such prosecution; *provided*, *however*, that ADCT shall have final decision-making authority with respect to prosecution of the ADCT Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Abandonment**. If ADCT decides not to, or not to continue to, prosecute a particular ADCT Patent in any country in the Sobi Territory during the Term, then it will promptly (but in any event at least [\*\*] days before any due date for filing, payment, or other action in the European Patent Office or other applicable patent office in the Sobi Territory to avoid loss of rights) provide written notice to Sobi of such decision. Sobi may, upon written notice to ADCT, assume the prosecution of such ADCT Patent in ADCT's name at Sobi's sole cost and expense. In such event, (i) ADCT will promptly deliver to Sobi copies of all necessary files related to such ADCT Patent in such country(ies) in the Sobi Territory and will take all actions and execute all documents reasonably necessary for Sobi to assume such responsibility, (ii) Sobi will continue to be responsible for one hundred percent (100%) of the costs and expenses of the prosecution of such ADCT Patent in such country(ies) in the Sobi Territory, and (iii) ADCT will have the rights to review and consult set forth in Section 4.2.2(b) (Review and Consult) *mutatis mutandis* [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.Sobi Patents**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Right to Prosecute**. Except as otherwise provided in Section 4.2.3(b) (Review and Consult) or Section 4.2.3(c) (Abandonment), as between the Parties, Sobi will have the sole right to control the prosecution of all Sobi Patents throughout the world. Sobi will be responsible for one hundred percent (100%) of the costs and expenses incurred with respect to the prosecution of such Sobi Patents throughout the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Review and Consult**. Sobi will consult with ADCT and keep ADCT reasonably informed of the prosecution of the Sobi Patents inside and outside the Sobi Territory and will provide ADCT with all substantive correspondence received from any patent authority in connection therewith. In addition, Sobi will provide ADCT with drafts of all

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proposed substantive filings and correspondence to any patent authority in connection with the prosecution of the Sobi Patents for ADCT's review and comment prior to the submission of such proposed filings and correspondence. Sobi will consider in good faith and incorporate ADCT's reasonable comments on such prosecution and will take into consideration ADCT's commercial strategy outside the Territory relating to the Products; *provided*, *however*, that Sobi shall have final decision-making authority with respect to the prosecution of the Sobi Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Abandonment**. If Sobi decides not to, or not to continue to, prosecute a particular Sobi Patent in any country or region inside or outside the Sobi Territory during the Term, then it will promptly (but in any event at least [\*\*] days before any due date for filing, payment, or other action to avoid loss of rights) provide written notice to ADCT of such decision. ADCT may, upon written notice to Sobi, assume such prosecution of such Sobi Patent in Sobi's name at ADCT's sole cost and expense. In such event, (i) Sobi will promptly deliver to ADCT copies of all necessary files related to such Sobi Patent in such country(ies) or region(s) and will take all actions and execute all documents reasonably necessary for ADCT to assume such responsibility, (ii) ADCT will then be responsible for one hundred percent (100%) of the future costs and expenses of the prosecution of such Sobi Patent, and (iii) Sobi will have the rights to review and consult set forth in Section 4.2.3(b) (Review and Consult) *mutatis mutandis* (including that ADCT will have final decision-making authority with respect to such prosecution activities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4.Joint Patents**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Right to Prosecute**. The Parties shall agree in writing upon the joint control the prosecution of any Joint Patents in each of the ADCT Territory and the Sobi Territory, including any decision to prepare and file for a Joint Patent, *provided* that, following any filing of a Joint Patent, subject to Section 4.2.4(b) (Review and Consult), Section 4.2.4(c) (Abandonment) and Section 4.3 (Patent Term Extensions), each Party shall have the final decision-making authority with respect to the prosecution of such Joint Patent in its respective Territory and shall have the right to instruct the Joint Firm with respect thereto. The Parties shall jointly appoint and thereafter instruct an independent patent attorney firm (the "**Joint Firm**") with respect to the prosecution of Joint Patents pursuant to this Section 4.2.4 (Joint Patents). Each Party will be responsible for the costs and expenses incurred with respect to the prosecution of such Patents in their respective Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Review and Consult**. The Parties will instruct the Joint Firm to consult with the Parties and keep the Parties reasonably informed of the prosecution of the Joint Patents in each Territory and will provide each Party with all substantive correspondence received from any patent authority in each Territory in connection therewith and drafts of all proposed substantive filings and correspondence to any patent authority in each Territory in connection with the prosecution of the Joint Patents for review and comment prior to the submission of such proposed filings and correspondence. Each Party will consider in good faith and incorporate the other Party's reasonable comments on such prosecution; *provided*, *however*, that following the filing of any Joint Patent in the ADCT Territory or the Sobi Territory, [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Abandonment**. If a Party decides that it does not wish to continue the prosecution of a particular Joint Patent in one or more particular countries or regions during the Term, then it will promptly (but in any event at least [\*\*] days before any due date for filing, payment or other action to avoid loss of rights) provide written notice to the other Party of such decision. The other Party may, upon written notice to such Party, assume the sole control of prosecution of such Patent in the applicable country(ies) or region(s). In such event, (i) such Party will instruct the Joint Firm accordingly and will take all actions and execute all documents

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reasonably necessary for the other Party to assume such responsibility, (ii) the other Party will become the sole prosecuting Party with respect to such Joint Patents in the applicable country(ies) or region(s), and (iii) the other Party (that is no longer the prosecuting Party) will retain the rights to review and consult set forth in Section 4.2.4(b) (Review and Consult).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5.Cooperation**. Each Party will provide the other Party all reasonable assistance and cooperation in the Patent prosecution efforts under this Section 4.2 (Patent Prosecution), including providing any necessary powers of attorney and executing any other required documents or instruments for such prosecution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Patent Term Extensions**. Sobi shall have the final decision-making authority with respect to applying for any patent term extension for the Sobi Patents throughout the world and Joint Patents in the Sobi Territory. ADCT shall have the final decision-making authority with respect to applying for any patent term extension for the ADCT Patents in the Sobi Territory (at Sobi's expense as to reasonable costs of patent attorneys and filing and other official fees incurred by or on behalf of ADCT with respect thereto) and the ADCT Territory (at ADCT expense as to the costs incurred by or on behalf of ADCT with respect thereto) and Joint Patents in the ADCT Territory; *provided*, *however*, that (a) Sobi has the right to request that ADCT apply for patent term extension if ADCT decides not to apply for any patent term extension for the ADCT Patents in the Sobi Territory, and following such request, ADCT will apply for patent term extension for the applicable ADCT Patents in the Sobi Territory; and (b) if any country in the Sobi Territory only permits one patent to be extended for the approved Product, then unless the Parties agree otherwise, an ADCT Patent Covering the composition of matter of the Product will be selected by ADCT (in consultation with Sobi) for a patent term extension. Sobi will assist ADCT with providing all documentation and authorization needed by ADCT to apply for such patent term extensions to ADCT Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Patent Enforcement**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.1.Notice**. Each Party shall promptly notify (and will use reasonable efforts to so notify within [\*\*] Business Days), in writing, the other Party upon learning of any actual or suspected infringement of any ADCT Patent, Sobi Patent, or Joint Patent (the "**Infringement**," and a Third Party engaged in such Infringement, the "**Infringer**"), or of any claim, opposition or action alleging invalidity, unenforceability, or non-infringement of any ADCT Patent, Sobi Patent or Joint Patent (other than post-grant proceedings in front of a patent office or patent authority, which will be considered prosecution for purposes of this Agreement) (the "**Challenge**," and a Third Party engaged in such Challenge, the "**Challenger**"). If a Party receives such notice, such Party shall provide to the other Party all evidence in its possession pertaining to the actual or suspected infringement, or claim of invalidity or unenforceability that it can disclose without breach of a pre-existing obligation to a Third Party or waiver of a privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.2.ADCT Enforcement and Challenge Rights**. Subject to Section 4.5 (Third Party Infringement Claims), ADCT shall have the exclusive right to bring and control any legal action to enforce the ADCT Patents against any Infringement in the ADCT Territory, and defend against any Challenge to the ADCT Patents in the ADCT Territory or the Sobi Territory, in each case, at its own expense and as it reasonably determines appropriate, and shall have the right to retain all recoveries. In connection with any such defense against any Challenge in the Sobi Territory, ADCT shall consider in good faith any comments from Sobi and shall keep Sobi reasonably informed of any steps taken, and shall provide copies of all documents filed, in connection with such defense.

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.3.Sobi Enforcement and Challenge Rights**. Subject to Section 4.5 (Third Party Infringement Claims) and the terms of the applicable rights of the licensor of ADCT under the applicable Pre-Existing Agreement, as between the Parties, Sobi shall have the first right to bring and control any legal action to enforce the ADCT Patents or the Sobi Patents against any Infringement in the Sobi Territory and in the Field, and defend against any Challenge to the Sobi Patents in the Sobi Territory, at its own expense as it reasonably determines appropriate. If Sobi does not bring such legal action or take any other reasonable action within [\*\*] days after the notice provided pursuant to Section 4.5.1 (Notice) (or such shorter time period as may be required to avoid material prejudice to such action), ADCT shall have the right to bring and control any legal action in connection with such Infringement or Challenge in the Sobi Territory at its own expense as it reasonably determines appropriate. The Party bringing and controlling the action shall provide the other Party with copies of all pleadings and other documents filed with the court and shall consider reasonable input from the other Party during the course of the proceedings. Subject to Section 4.5 (Third Party Infringement Claims), Sobi shall have the exclusive right to bring and control any legal action to enforce the Sobi Patents against any Infringement in the ADCT Territory, and defend against any Challenge to the Sobi Patents in the ADCT Territory (and the foregoing two (2) sentences shall apply to such actions *mutatis mutandis*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.4.Enforcement and Challenge Rights for Joint Patents**. Sobi shall have the initial right to elect to enforce or defend Joint Patents against Infringers or Challengers within the Sobi Territory at Sobi's cost and expense for a period of [\*\*] days (as may be extended by Sobi's reasonable request) after the first notice under Section 4.5.1 (Notice) (or such shorter time period as may be required to avoid material prejudice to such action). If Sobi elects not to pursue action against such Infringers or Challengers within such period, then Sobi shall so notify ADCT in writing, and ADCT shall have a step-in right to pursue action against such Infringers or Challengers at ADCT's cost and expense. ADCT shall have the initial right to enforce or defend Joint Patents against Infringers or Challengers within the ADCT Territory at ADCT's cost and expense for a period of [\*\*] days (as may be extended by ADCT's reasonable request) after the first notice under Section 4.5.1 (Notice) (or such shorter time period as may be required to avoid material prejudice to such action). If ADCT elects not to pursue action against such Infringers or Challengers within such period, then ADCT shall so notify Sobi in writing, and Sobi shall have a step-in right to pursue action against such Infringers or Challengers at Sobi's costs and expenses. The Party bringing and controlling the action shall provide the other Party with copies of all pleadings and other documents filed with the court and shall consider reasonable input from the other Party during the course of the proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.5.Cooperation**. At the request of the Party bringing an action related to an Infringement or defending a Challenge, the other Party will provide reasonable assistance in connection therewith, including by executing reasonably appropriate documents, cooperating in discovery, and joining as a party to the action if required by Applicable Law to pursue such action. Each Party agrees to be joined in any litigation or administrative proceedings if necessary for the other Party to enforce or defend such intellectual property against Infringers or Challengers in accordance with this Section 4.4 (Patent Enforcement) at the enforcing Party's cost and expense. The Parties shall coordinate with respect to enforcement strategies in the Sobi Territory, and Sobi shall have the final decision-making authority with regard to any enforcement and defense of matters within the Sobi Territory; *provided* that Sobi shall work in good faith with and reasonably consider input of ADCT with regard to such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.6.Settlement**. Sobi shall have the right and authority to settle disputes arising from Infringement(s) or Challenge(s) that it controls pursuant to this Section 4.4 (Patent Enforcement), to the extent that Sobi controls such Infringement or Challenge under this Section

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4.4 (Patent Enforcement); *provided*, *however*, that if any such settlement would adversely affect the validity or enforceability of the ADCT Patents, impose any monetary or legal obligation on ADCT, conflict with any of ADCT's legal obligations or materially alter ADCT's rights to sell a Product in the ADCT Territory, then ADCT's written consent (not to be unreasonably withheld, conditioned or delayed) to the settlement shall be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.7.Damages in Sobi Territory**. Any recoveries resulting from an enforcement action relating to a claim of Infringement in the Sobi Territory shall be paid (a) first, to reimburse the Party bringing the suit or taking an action for any costs and expenses in connection therewith; (b) second, to reimburse the other Party for any costs and expenses in connection therewith; and (c) third to the enforcing Party [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Third Party Infringement Claims**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.1.Notice**. In the event that a Third Party shall make any claim, give notice, or bring any suit against (a) Sobi or ADCT, any of their respective Affiliates or Sobi's customers or sublicensees, for infringement or misappropriation of any intellectual property rights with respect to the making, using, selling, offering for sale, or importing of any Product in the Sobi Territory ("**Third Party Infringement Claim**") or (b) ADCT, any of their respective Affiliates or ADCT's customers or licensees, for infringement or misappropriation of any intellectual property rights with respect to the making, using, selling, offering for sale, or importing of any Product in the ADCT Territory, in each case ((a) or (b)), the Party receiving notice of such claim, notice or suit (as applicable) shall promptly (within [\*\*] Business Days) notify the other Party and provide all information in its possession pertaining to the claim or suit that it can disclose without breach of a pre-existing obligation to a Third Party or waiver of a privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.2.Defense**. The Parties shall consult as to potential strategies to defend against any Third Party Infringement Claim. The Parties shall cooperate in all reasonable respects in the defense of any Third Party Infringement Claim and any counterclaim related thereto. Subject to the respective indemnity obligations of the Parties set forth in ARTICLE 14 (Indemnification), Sobi shall be solely responsible for defending such Third Party Infringement Claim in the Sobi Territory, including selection of counsel, venue, and directing all aspects, stages, motions, and proceedings of litigation and ADCT shall be solely responsible for defending any Third Party claim, notice, or suit against ADCT, any of their respective Affiliates or ADCT's customers or sublicensees, for infringement or misappropriation of any intellectual property rights with respect to the making, using, selling, offering for sale, or importing of any Product in the ADCT Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.3.Settlement**. If any defense by Sobi under this Section 4.5 (Third Party Infringement Claims) would impose a financial obligation upon ADCT, conflict with any of ADCT's legal obligations or grant rights in respect of or affect the validity or enforceability of the ADCT Patents, then any settlement, consent judgment or other voluntary final disposition of such Third Party Infringement Claim shall not be entered into without the written consent of ADCT (not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.4.Costs and Expenses**. Subject to the respective indemnity obligations of the Parties set forth in ARTICLE 14 (Indemnification), Sobi shall bear all costs and expenses to defend against any Third Party Infringement Claim in the Sobi Territory and ADCT shall bear all costs and expenses to defend against any Third Party claim, notice, or suit against ADCT, any of their respective Affiliates or ADCT's customers or sublicensees, for infringement or misappropriation of any intellectual property rights with respect to the making, using, selling, offering for sale, or importing of any Product in the ADCT Territory.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.European Patents**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.1.**Insofar as any of the Patents licensed under this Agreement by ADCT to Sobi are granted European Patents or applications for European Patents, at the request of either Party, the Parties shall in good faith discuss and jointly determine (which determination shall be recorded in writing) whether or not ADCT shall (at Sobi's cost unless otherwise agreed), in respect of any such European Patent or European Patent application:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)apply for unitary effect under the Unitary Patent Regulation (and in such event ADCT shall promptly make such application and on so doing, and promptly on receipt of notification of unitary effect from the European Patent Office, notify Sobi in writing); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)elect to Opt-Out or Opt-In.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Third Party In-Licenses**. If either Party determines that a license under any Know-How or Patents owned or controlled by a Third Party is necessary to exploit a Compound or Product in the Field in the ADCT Territory (and for which there are corresponding rights in the Sobi Territory) or Sobi Territory ("**Identified Rights**"), then Parties agree to discuss in good faith and cooperate in respect of addressing issues related to Identified Rights [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.Data Ownership**. As between the Parties, the Party generating any Data shall own such Data, and such Data will be the generating Party's Confidential Information, in each case, subject to (a) the terms of Section 4.1 (Ownership) and (b) the licenses and other rights granted by such Party to the other Party under this Agreement with respect to such Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.1.Privacy Compliance**. Each Party shall comply in full with their respective obligations under the Data Security and Privacy Laws in relation to any Data they collect, use, disclose, receive, or otherwise process in the course of exercising its rights and fulfilling its obligations under this Agreement. To the extent that the GDPR or the UK GDPR apply, each Party acknowledges that they will each act as an independent controller in relation to Personally Identifiable Information they collect, use, disclose or otherwise process in the course of exercising their rights and fulfilling their obligations under this Agreement, unless otherwise agreed in writing between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.11.Disclosures of Personally Identifiable Information Between the Parties**. To the extent that one Party discloses Personally Identifiable Information to the other Party, the disclosing Party shall ensure that such disclosure complies with the Data Security and Privacy Laws, including (but not limited to) ensuring that there is a valid legal basis for any such disclosure, providing any information required by the Data Security and Privacy Laws to individuals whose Personally Identifiable Information will be disclosed, ensuring that only the minimum Personally Identifiable Information required to meet the purpose of the disclosure is actually disclosed, and ensuring that Personally Identifiable Information is kept appropriately secure. The Parties shall also ensure that they have a process in place to honor any valid requests that they receive relating to the exercise of rights individuals may have over Personally Identifiable Information under the applicable Data Security and Privacy Laws that has been disclosed by one Party to the other. Each Party shall also inform the other without undue delay of any communication or complaint concerning possible infringements of the Data Security and Privacy Laws arising from the collection, use, disclosure or other processing of Personally Identifiable Information disclosed from one Party to the other. Prior to one Party disclosing Personally Identifiable Information in accordance with this Section 4.8.2 (Disclosures of Personally Identifiable Information Between the Parties) to the other Party, the Parties shall enter

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into a written agreement governing their respective obligations with respect to the Personally Identifiable Information including, in the case of transfers of Personal Data outside the EEA, the Standard Contractual Clauses or other required measures under Applicable Law to safeguard such Personal Data.

**ARTICLE 5****<br> **DEVELOPMENT ACTIVITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.ADCT Global Development Strategy**. The initial global development strategy (as may be amended by ADCT from time to time in accordance with this Section 5.1 (ADCT Global Development Strategy)) sets forth the high-level objectives and strategies for the Development of the Products by ADCT and its Affiliates worldwide and is designed to support Regulatory Approvals for the Product in both the Sobi Territory and the ADCT Territory (such strategy as may be amended by ADCT from time to time in accordance with this Section 5.1 (ADCT Global Development Strategy), the "**Global Development Strategy**") and is attached as Schedule 5.1 (Initial Global Development Strategy). Within [\*\*] days after the Effective Date, ADCT shall provide to the JSC for review and discussion an updated version of the Global Development Strategy. Thereafter, if from time to time ADCT wishes to amend the Global Development Strategy, ADCT shall prepare and present the revised strategy at a JSC meeting for review and discussion. [\*\*]. For clarity, ADCT will nevertheless have the final decision with respect to the Global Development Strategy and any amendments thereto. Each Clinical Study conducted or proposed to be conducted by ADCT for the Products involving countries or jurisdictions, or the Data from which can be used to support Regulatory Approvals, in each case, in both the United States and the Sobi Territory shall be deemed a "**Global Study**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Sobi Territory-Specific Development**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Sobi Development Plan**. Prior to commencing any Development activities with respect to the Products in the Sobi Territory, Sobi shall present to the JSC an initial version of Sobi's development plan for the Products in the Sobi Territory, including the strategy, activities and timeline for such Development (the "**Sobi Development Plan**") for the JSC's review and approval. The Sobi Development Plan shall govern Development of the Products in or for the Sobi Territory. The Sobi Development Plan shall include all Development activities (but excluding any Global Studies to be conducted by ADCT) that Sobi intends to perform in the Sobi Territory, at Sobi's cost and expense, with respect to the Products, including any studies or other Development activities that may be required by the EMA. Sobi shall submit to the JSC any proposed amendment to the Sobi Development Plan for the JSC's review and approval, and amendments approved by the JSC shall be incorporated into the Sobi Development Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.Sobi Territory Development Costs**. Sobi shall be responsible for all costs incurred in connection with the Development of the Products conducted by Sobi under the Sobi Development Plan. Additionally, Sobi shall be responsible for all Sobi Territory-Specific Costs incurred by ADCT in connection with Development of the Products for the Sobi Territory (excluding Global Studies), as set forth in Section 10.3.3 (Reimbursement of Sobi Territory-Specific Costs) to the extent within the Sobi Territory-Specific Budget. ADCT shall not conduct any Development activities with respect to the Products for the Sobi Territory that have not been approved by Sobi and set forth in the Sobi Territory-Specific Budget. Upon Sobi's reasonable request and each Party's approval of the applicable Sobi Territory-Specific Budget containing the costs of such support activities (such approval not to be unreasonably withheld, delayed or conditioned), ADCT shall provide Sobi the following support for the Sobi Territory: analytical technology transfers (in jurisdictions where needed), reference standards, analytical control,

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reagents and analytical equipment, in addition to performing analytical testing for Sobi (*e.g.*, for transport validation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Clinical Studies**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.1.General**. ADCT will be responsible, at its discretion, for the conduct, itself or with or through its Affiliates, licensees or subcontractors, of any Global Studies for the Product. Subject to Section 5.3.2 (Committed Global Studies), Section 5.3.3 (Option to Co-Fund Additional Global Studies) and Section 5.3.5 (Opt-In for Global Study), ADCT shall bear the costs associated with the Global Studies conducted by it (or its Affiliates, licensees or subcontractors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.2.Committed Global Studies**. Notwithstanding Section 5.3.1 (General), Sobi will fund twenty-five percent (25%) of the Direct Development Costs incurred by or on behalf of ADCT in connection with the following Global Studies: (a) [\*\*] and (b) [\*\*] ((a) and (b), the "**Committed Global Studies**"). Sobi will reimburse ADCT for its twenty-five percent (25%) portion of the Committed Global Studies (subject to the Sobi Annual Co-Funding Cap) in accordance with the procedures set forth in Section 10.3.2 (Reimbursement of the Sobi Global Study Cost Contribution).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.3.Option to Co-Fund Additional Global Studies**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If ADCT intends to commence or continue any Global Study that is not a Committed Global Study (an "**Additional Global Study**"), ADCT shall promptly notify Sobi thereof (the "**Additional Global Study Notice**"), and such notice shall include the protocol for such Additional Global Study and a plan containing reasonable particulars of the Additional Global Study, including key study parameters, anticipated timelines and costs (such plan, an "**Additional Global Study Plan**"). Sobi shall have the option, on a Global Study-by-Global Study basis, to fund [\*\*] of the Direct Development Costs to be incurred by or on behalf of ADCT in connection with such Additional Global Study, and such option shall be exercisable upon written notice to ADCT (a "**Co-Funding Notice**") within [\*\*] days from the date of Sobi's receipt of such Additional Global Study Notice (including the applicable protocol and Additional Global Study Plan) from ADCT (such [\*\*]-day period, the "**Co-Funding Option Exercise Period**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If Sobi exercises its option to co-fund an Additional Global Study in accordance with this Section 5.3.3 (Option to Co-Fund Additional Global Studies), then: (i) Sobi will pay to ADCT the Sobi Global Study Cost Contribution each Calendar Quarter under Section 10.3.2 (Reimbursement of the Sobi Global Study Cost Contribution); (ii) Sobi shall reimburse to ADCT the Sobi Global Study Cost Contribution for such Additional Global Study in accordance with Section 10.3.2 (Reimbursement of the Sobi Global Study Cost Contribution); and (iii) ADCT shall share with Sobi in accordance with Section 2.15 (Know-How Transfer), and grant a right of reference to Sobi in accordance with Section 2.14 (Right of Reference) with respect to, the Data generated in such Additional Global Study (any such Global Study, together with the Committed Global Studies, a "**Co-Funded Global Study**"). For the avoidance of doubt, all such Data Controlled by ADCT shall constitute ADCT Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If Sobi does not provide a Co-Funding Notice within the applicable Co-Funding Option Exercise Period in accordance with Section 5.3.3 (Option to Co-Fund Additional Global Studies) for an Additional Global Study, then (i) for the avoidance of doubt, ADCT may conduct such Additional Global Study as contemplated in the Global Development Strategy, and (ii) notwithstanding any provision to the contrary herein, Sobi shall not have the

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right to use or reference under Section 2.14 (Right of Reference) the Data generated from such Additional Global Study to support an MAA or maintain a Regulatory Approval or Commercialization of the Products in the Sobi Territory unless Sobi has exercised the ADCT-Funded Global Study Opt-In for such Additional Global Study as set forth in Section 5.3.5 (Opt-In for Global Study).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)If ADCT wishes to amend any Additional Global Study Plan for a Co-Funded Global Study, ADCT shall provide a copy of the proposed amendment to the JSC for review and approval, and such amendment shall not be effective unless and until JSC has approved such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.4.Co-Funding Cap**. Notwithstanding the foregoing in Section 5.3.2 (Committed Global Studies) and Section 5.3.3 (Option to Co-Fund Additional Global Studies), Sobi's total Sobi Global Study Cost Contribution for all Co-Funded Global Studies shall not exceed ten million US Dollars ($10,000,000) per Calendar Year during the Term (the "**Sobi Annual Co-Funding Cap**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.5.Opt-In for Global Study**. Upon Sobi's request following completion of the final study report of an ADCT-Funded Global Study, ADCT will provide a high level summary of the results of such ADCT-Funded Global Study and a reasonably detailed summary of the Direct Development Costs incurred in connection with such ADCT-Funded Global Study and shall promptly respond to reasonable requests from Sobi for additional information relating thereto. In the event that Sobi does not provide a Co-Funding Notice for an Additional Global Study within the applicable Co-Funding Option Exercise Period in accordance with Section 5.3.3 (Option to Co-Fund Additional Global Studies) (each such Additional Global Study, an "**ADCT-Funded Global Study**"), but thereafter desires to use and reference the Data generated from such ADCT-Funded Global Study for the further Development, MAA, Regulatory Approval, or Commercialization of one or more Products in the Sobi Territory, Sobi shall have a right to elect to use and reference the Data generated from such ADCT- Funded Global Study (the "**ADCT-Funded Global Study Data**") and such right shall be exercisable by written notice to ADCT following completion of the final study report of such ADCT-Funded Global Study (such right, "**ADCT-Funded Global Study Opt-In**"). For the avoidance of doubt, ADCT-Funded Global Study Data Controlled by ADCT shall constitute ADCT Know-How. If Sobi has exercised such right with respect to any ADCT-Funded Global Study at any time following completion of the final study report of such ADCT-Funded Global Study, Sobi shall pay an amount equal to [\*\*] of the Direct Development Costs incurred by ADCT in connection with such ADCT-Funded Global Study on or prior to the date of exercise of the applicable ADCT-Funded Global Study Opt-In (each, a "**Data Access Reimbursement Payment**") within [\*\*] days after delivery of the ADCT-Funded Global Study Data. For clarity, any amounts paid under this Section 5.3.5 (Opt-In for Global Study) will not be subject to the Sobi Annual Co-Funding Cap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.6.Safety Data Exception**. Notwithstanding Section 5.3.2 (Committed Global Studies), Section 5.3.3 (Option to Co-Fund Additional Global Studies) and Section 5.3.5 (Opt-In for Global Study), Sobi shall have the right to access from ADCT's global drug safety database all Safety Data necessary for Sobi to comply with all Applicable Laws in the Sobi Territory, including Safety Data generated by ADCT in connection with an ADCT-Funded Global Study.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.7.Pre-Existing Data**. For the avoidance of doubt, the payment and data sharing restrictions and obligations of Section 5.3.2 (Committed Global Studies), Section 5.3.3 (Option to Co-Fund Additional Global Studies) and Section 5.3.5 (Opt-In for Global Study) shall only apply with respect to Data generated in the course of Global Studies conducted following

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the Effective Date or that are not yet completed as of the Effective Date. Sobi shall have the right, at no charge, to use and reference any and all Data Controlled by ADCT that was generated by or on behalf of ADCT in any Clinical Studies of Products that have been completed as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Development Activities**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.1.Responsibility**. Each Party shall be responsible for all Development activities relating to the Products within its respective Territory at its own cost, except that (a) [\*\*] and (b) [\*\*]. All Development activities conducted by Sobi in respect of the Products in the Sobi Territory will be materially in accordance with the Sobi Development Plan that has been approved by the JSC. All Development activities conducted by ADCT in respect of the Products in the ADCT Territory will be materially in accordance with the Global Development Strategy. [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.2.Diligence**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Sobi shall use Commercially Reasonable Efforts, itself or through its Affiliates, or Sublicensees, to: (i) Develop at least one (1) Product; and (ii) seek Regulatory Approval and Pricing Approval of at least one (1) Product in at least one (1) indication in each Major Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)ADCT shall use Commercially Reasonable Efforts to perform the Co-Funded Global Studies; *provided* that, without limiting any other obligation of ADCT, ADCT shall provide Sobi with prior written notice of any intention to discontinue any Co-Funded Global Study, which notice shall include detailed reasons for such decision to discontinue such Co-Funded Global Study. With respect to each Global Study performed by ADCT, ADCT shall perform such Global Study in accordance with: (a) the applicable clinical study protocol, Additional Global Study Plan (solely with respect to any Additional Global Study that is a Co-Funded Global Study) and the Global Development Strategy, as applicable; and (b) all Applicable Laws and clinical standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.3.Development Reports**. Sobi shall provide to ADCT and the JSC with a high-level written report in English once every half Calendar Year from January to June, and July to December ("**Calendar Half**") during the Term, describing (a) the progress of its efforts and results achieved, during the last Calendar Half, to (i) Develop the Products in Sobi Territory under the Sobi Development Plan, and (ii) seek Regulatory Approvals and Pricing Approvals for the Product(s) in the Sobi Territory, including progress made under the Sobi Registration Plan since the last report; and (b) the expected Development and regulatory achievements relating to the Products in the next Calendar Half. Once per Calendar Half during the Term, ADCT will provide, at a regularly scheduled meeting of the JSC: (A) a high-level global development update (PowerPoint slides or similar) regarding ADCT's global Development of the Products during the preceding six (6)-month period describing the progress of its efforts and results achieved, during such period, to (1) Develop the Products in the ADCT Territory in accordance with the Global Development Strategy, and (2) seek Regulatory Approvals and Pricing Approvals for the Product(s) in the ADCT Territory; (B) a high-level written report in English describing the progress of its efforts and results achieved, during the last Calendar Half, in connection with each Co-Funded Global Study; and (C) the expected Development and regulatory achievements relating to the Products in the next Calendar Half; *provided*, *however*, that such high-level updates will not include any Data obtained from any ADCT-Funded Global Studies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.4.Development Records**. Each Party shall maintain complete, current and accurate records of all Development and other activities conducted by or on behalf of such Party hereunder, and all Data and other information resulting from such activities and all written reports required to be provided hereunder or maintained under Applicable Law with respect to any such Development and other activities. Such records and reports shall fully and properly reflect all work done and results achieved in the performance of the Development activities in good scientific manner appropriate for regulatory and patent purposes. Each Party shall document all Clinical Studies in formal written study reports according to Applicable Laws and national and international guidelines (*e.g.*, ICH, GCP and GLP) and shall provide copies of such reports to the JSC for review at each regularly scheduled JSC meeting; *provided* that, with respect to any ADCT-Funded Global Study, only if the applicable ADCT-Funded Global Study Opt-In has been exercised by Sobi. Each Party will promptly provide to the other Party copies of all Data and results and all supporting documentation (*e.g.*, protocols, investigator's brochures, case report forms, and analysis plans) Controlled by such Party that are generated by or on behalf of such Party or its Affiliates, Sublicensees, or Subcontractors, if applicable, in the Development of each Product and each Party and its Affiliates and (sub)licensees shall have the right to review and copy such records maintained by the other Party at reasonable times and to use such records and obtain access to the original for its research and development activities and regulatory and patent purposes or for other legal proceedings; *provided* that, with respect to any ADCT-Funded Global Study, only if the applicable ADCT-Funded Global Study Opt-In has been exercised by Sobi. The Parties will cooperate and reasonably agree upon formats and procedures to facilitate the efficient exchange of such Data and results in accordance with this Section 5.4.4 (Development Records).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Development Cooperation**. ADCT shall, at Sobi's request, (a) use reasonable efforts to assist Sobi in the Development of Products in the Sobi Territory; and (b) use reasonable efforts to assist Sobi in applying, obtaining and maintaining Regulatory Approval for the Product in the Sobi Territory, in each case ((a) and (b)), at Sobi's cost and expense, which costs and expenses will be agreed in advance.

**ARTICLE 6**<br>**REGULATORY ACTIVITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Regulatory Responsibility**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.General**. Subject to Section 6.1.3 (Third Line DLBCL Exception), each Party shall be responsible for all regulatory activities (including preparing, maintaining, formatting, and making Regulatory Filings and communications with Regulatory Authorities) relating to the Products within its respective Territory at its own cost, except that (a) [\*\*], (b) [\*\*], and (c) Sobi and its Affiliates and Sublicensees shall conduct regulatory registration activities for the Products in the Sobi Territory in accordance with the Sobi Registration Plan. Each Party shall hold title to all Regulatory Filings (including Regulatory Approvals and Pricing Approvals) with respect to the Products filed by such Party in and for its respective Territory. Subject to the terms of this Agreement, each Party shall be solely responsible for all decisions regarding the day-to-day conduct of registration and regulatory activities within its respective Territory. Through the JSC, each Party shall keep the other Party informed of regulatory developments related to the Products in its Territory (*e.g.*, any decision by any Regulatory Authority in its Territory regarding the Products) including (in the case of Sobi) by providing the development reports as set forth in Section 5.4.3 (Development Reports). Each Party shall reasonably cooperate with, and provide reasonable assistance to (at no charge), the other Party in connection with regulatory activities and Regulatory Filings in such other Party's respective Territory.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.2.Right to Review Regulatory Filings**. Each Party will have the right to review any material Regulatory Filings for a Product that the other Party or its Affiliate intends to file in its Territory; *provided* that Sobi's right to review ADCT's Regulatory Filings shall be limited to those Regulatory Filings to be filed in the U.S. Sobi and ADCT will each provide to the other Party for review and comment such drafts of such Regulatory Filings in the Sobi Territory or the U.S., respectively, for the Products sufficiently in advance of submission thereof to provide adequate opportunity for the other Party to review, and shall consider in good faith any comments received in a timely manner from the other Party on such Regulatory Filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.3.Third Line DLBCL Exception**. Notwithstanding Section 6.1.1 (General) or any other provision to the contrary set forth in this Agreement, ADCT will continue to lead and conduct all interactions with the EMA, and make all Regulatory Filings with the EMA, with respect to the Development and seeking of Regulatory Approval for the Product for Third Line DLBCL. In connection with such interactions and Regulatory Filings with the EMA in respect of the Product for Third Line DLBCL, ADCT shall provide Sobi with drafts of all material Regulatory Filings (including Regulatory Authority responses), to the extent practicable, within a reasonable time prior to submission to allow Sobi a reasonable period for review and comment, and ADCT shall implement any reasonable changes requested by Sobi in a timely manner; *provided* that under no circumstances will ADCT be required to delay submissions to wait for Sobi's comments prior to submitting such Regulatory Filing if doing so could reasonably be expected to result in ADCT failing to meet any applicable deadline set by a Regulatory Authority for such Regulatory Filing; *provided*, *further*, that notwithstanding the foregoing ADCT shall involve Sobi in final negotiations for the Approved Labeling for the Product and agreement of post-authorization measures with the Committee for Medicinal Products for Human Use. Additionally, Sobi may submit a request to ADCT to be present in any meeting with the EMA in connection with the Regulatory Filings for the Product for Third Line DLBCL and, upon such request, ADCT shall use reasonable efforts to request the inclusion of a representative of Sobi in such meeting. Out-of-Pocket Costs and FTE Costs incurred by ADCT in connection with the regulatory activities set forth in this Section 6.1.3 (Third Line DLBCL Exception) will be considered "Sobi Territory-Specific Costs" and Sobi shall be responsible for such Sobi Territory-Specific Costs as set forth in Section 10.3.3 (Reimbursement of Sobi Territory-Specific Costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Transfer of Regulatory Filings**. Following the Effective Date, ADCT will provide to Sobi copies (in electronic or other format) of any Regulatory Filings in respect of the Products in the Sobi Territory that are owned by ADCT or its Affiliates as of the Effective Date. Following grant by the European Commission of the Regulatory Approval of the Product for Third Line DLBCL in the EU and completion of any regulatory activities by ADCT with respect thereto as described in Section 6.1.3 (Third Line DLBCL Exception), ADCT will submit applications to the EMA or an equivalent Regulatory Authority to transfer the MAA for the Product in the EU to Sobi, together with any related Regulatory Approvals specific to the Sobi Territory, including the orphan medicinal product designation and paediatric investigation plan for the Product in the EU, but excluding any Regulatory Approvals specific to the Manufacture of the Products or the conduct of any Clinical Study listed on Schedule 5.4.1 (In-Progress ADCT Clinical Studies) (the "**Transferred Regulatory Filings**"). Sobi will be responsible for the applicable fees associated with the application for such transfer. Upon Sobi's written request, ADCT will execute and deliver, or will cause to be executed and delivered, to Sobi such endorsements, assignments, and other documents as may be reasonably necessary to assign, convey, transfer, and deliver to Sobi all of ADCT's rights, title, and interests in and to the Transferred Regulatory Filings, including submitting to each applicable Regulatory Authority a letter or other necessary documentation (with a copy to Sobi) notifying such Regulatory Authority of, or requesting approval from such Regulatory Authority for, the transfer of each MAA and Regulatory Approval included in the Transferred Regulatory Filings and transferred to

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Sobi pursuant to this Section 6.2 (Transfer of Regulatory Filings). ADCT and its Affiliates and licensees will continue to have a right of reference to the Transferred Regulatory Filings under Section 2.14 (Right of Reference), and the Data included in the Transferred Regulatory Filings will remain ADCT Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Regulatory Meetings**. Subject to Section 6.1.3 (Third Line DLBCL Exception), each Party shall be responsible for responding to any material communications with Regulatory Authorities with respect to any Products in its respective Territory; *provided* that any response by a Party shall be aligned with the Global Registration Strategy. Sobi shall provide ADCT with drafts in English of all material Regulatory Authority responses within a reasonable time prior to submission to allow ADCT a reasonable period for review and comment, and shall consider in good faith any comments received in a timely manner from ADCT. Each Party may request the other Party to be present in any meeting with a Regulatory Authority in its respective Territory (which, in the case of ADCT, will be limited to the United States) and, upon such request, such other Party shall use reasonable efforts to request the inclusion of a representative of the requesting Party in such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Registration Plans**. The Parties shall discuss the regulatory strategy for the Products in their respective Territories through the JSC in order to identify any material risk, value and impact on regulatory assessment and labeling, in markets throughout the world. No later than [\*\*] days after the Effective Date, ADCT shall prepare and present at a JSC meeting for discussion a global registration strategy for Products for consistency of content and labeling, and optimal filing timelines (parallel and staggered) for markets throughout the world (such strategy, as may be amended by ADCT from time to time in accordance with this Section 6.4 (Registration Plans), the "**Global Registration Strategy**"). If from time to time ADCT wishes to amend the Global Registration Strategy, ADCT shall prepare and present the revised strategy at a JSC meeting for review and discussion. [\*\*]. Sobi shall present its registration plan for the Sobi Territory to the JSC for review and approval (such plan, as may be amended with approval of the JSC during the Term, the "**Sobi Registration Plan**"). Sobi shall deliver to the JSC an update of relevant sections of the Sobi Registration Plan no less frequently than twice per Calendar Year during the Term for the JSC's review and approval. All regulatory activities conducted by Sobi in respect of the Products in the Sobi Territory will be in accordance with the Sobi Registration Plan that has been approved by the JSC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Regulatory Audits**. If Sobi or ADCT receives a notice that a Regulatory Authority desires to conduct an inspection or audit of any facilities regarding the Compound or Products applicable to the Sobi Territory, then such Party shall promptly notify the other Party of such inspection or audit. The Parties shall discuss in good faith the response to such notice of an inspection or audit from Regulatory Authority. The inspected Party shall, at its cost, permit such inspection or audit, or obtain consent by such contracted facility for such inspection or audit, and cooperate with the Regulatory Authority for such inspection and audit. Upon the reasonable written request of the inspected Party, the other Party shall assist the inspected Party in connection with such inspection or audit and cooperate with the Regulatory Authority in the Territory for such inspection and audit. Following receipt of the inspection or audit observations of such Regulatory Authority in writing (a copy of which the inspected Party will promptly provide to the other Party), the inspected Party, as applicable, shall prepare the response to any such observations, if necessary, and shall provide a copy of such response to the other Party, if any. ADCT's obligations under this Section 6.5 (Regulatory Audits) are subject to the terms of ADCT's agreements with its contractors, including contract manufacturing organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Safety; Adverse Event Reporting**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.1.Pharmacovigilance and Safety Data**. ADCT shall establish and maintain, at ADCT's sole cost and expense, a global drug safety database for the Products. Consistent with Section 5.3.6 (Safety Data Exception), Sobi shall have the right to access from such global drug safety database all Safety Data necessary for Sobi and its Affiliates and its and their Sublicensees to comply with all Applicable Laws in the Sobi Territory. Sobi may, and will to the extent required by Applicable Laws, establish and maintain, at Sobi's sole cost and expense, its own drug safety database for the Products; *provided* that all data therein shall also be provided to ADCT for inclusion in the global drug safety database. Each Party will be responsible, at its sole cost and expense, for: (a) collecting all pharmacovigilance and other Safety Data for the Products in its respective Territory as required by Applicable Laws; (b) reporting any such pharmacovigilance and other Safety Data, including Adverse Events, in its respective Territory, to the applicable Regulatory Authorities in its respective Territory, as appropriate to be in compliance with all Applicable Laws, (c) with respect to Sobi, reporting Safety Data to ADCT in XML files (or CIOMS or E2B format) (in English) for entry into the global safety database, and (d) with respect to ADCT, reporting Safety Data to Sobi in XML files (or CIOMS or E2B format) (in English) for entry into Sobi's safety database. Each Party expressly acknowledges that the other Party may provide information it receives pursuant to this Section 6.6.1 (Pharmacovigilance and Safety Data) to appropriate Regulatory Authorities within its respective Territory itself or through any of its Affiliates or Sublicensees engaged in Development and Commercialization activities of the Products in its respective Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.2.Pharmacovigilance Agreement**. Promptly following the Effective Date, the Parties shall discuss a mutually acceptable pharmacovigilance agreement ("**Pharmacovigilance Agreement**") setting forth the Parties' respective obligations in detail regarding pharmacovigilance and the exchange of Safety Data during the period before the first Regulatory Approval of the first Product in the Sobi Territory and the Parties shall enter into such Pharmacovigilance Agreement no later than [\*\*] days after the Effective Date. In the Pharmacovigilance Agreement, the Parties shall define how clinical safety and pharmacovigilance will be managed by both Parties, how the safety databases for the Products will be set up and how safety information will be exchanged, and in particular shall: (a) set forth how cases will be processed in the global safety database; (b) provide for submitting expedited reports in the agreed format to Regulatory Authorities, in accordance with the requirements of the Regulatory Authorities; (c) include provisions regarding producing outputs (tables, line listings) and preparation of aggregate reports such as periodic safety update reports and development safety update reports; (d) include provisions regarding evaluation of safety and benefit-risk and preparation of risk management plans; (e) include provisions regarding performing ongoing safety signal detection and assessment; and (f) include provisions governing safety statements in aggregate reports. At least [\*\*] days before the estimated date of the first Regulatory Approval of the first Product in the Sobi Territory, the Parties shall commence discussions with respect to the amendment of such Pharmacovigilance Agreement to set forth the Parties' respective obligations in detail regarding pharmacovigilance and the exchange of Safety Data during the period after the first Regulatory Approval of the first Product in the Sobi Territory and the Parties shall enter into such mutually acceptable amended Pharmacovigilance Agreement at least [\*\*] before the estimated date of the of the first Regulatory Approval of the first Product in the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.4.Pharmacovigilance Audits**. Each Party will have the right, upon reasonable (and at least [\*\*] days') prior written notice, to periodically audit the other Party's relevant Product-related pharmacovigilance activities to monitor compliance with such other Party's obligations under the Pharmacovigilance Agreement and Applicable Laws. Neither Party may request a pharmacovigilance audit more than once every [\*\*], except where there is a

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reasonable basis for such Party to suspect that the other Party has failed or is failing to comply with its obligations under the Pharmacovigilance Agreement and Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Notification of Threatened Action**. Each Party shall notify the other Party within twenty-four (24) hours of any information it receives regarding any threatened or pending action, inspection, or communication by any Regulatory Authority that may be reasonably likely to affect the safety or efficacy claims of any Product or the continued Development or Commercialization of any Product in the Sobi Territory. Upon receipt of such information, the Parties shall promptly consult with each other in an effort to arrive at a mutually acceptable procedure for taking appropriate action in the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.No Harmful Actions**. If a Party reasonably believes that the other Party is taking or intends to take any action with respect to a Product that could reasonably be expected to have a material adverse impact upon the regulatory status, approval, labeling, safety, market clearance, or the ability of such Party to sell, market, Develop, or Commercialize any Product in such Party's Territory, then such Party may bring the matter to the attention of the JSC and the JSC shall discuss such concern in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.Recalls**. If a recall, withdrawal, or correction (including the dissemination of relevant information) of any Product in a Party's Territory (a "**Recall**") is required by a Regulatory Authority of competent jurisdiction, or if a Recall of a Product in its respective Territory is deemed advisable by such Party in its sole discretion, then such Party shall so notify the other Party no later than the earlier of (a) twenty-four (24) hours after receipt by the applicable Party of such requirement from a Regulatory Authority and (b) one (1) Business Day in advance of the earlier of (i) initiation of a Recall, or (ii) the submission of plans for such an action to a Regulatory Authority. Promptly after being notified of a Recall, each Party shall provide the other Party with such assistance in connection with such Recall as may be reasonably requested by such other Party. All costs and expenses in connection with a Recall in a Party's Territory, including the costs and expenses related to the dissemination of relevant information, shall be borne by such Party unless such Party proves that such Recall is required due to (x) the other Party's breach of the representations, warranties, covenants or obligations under this Agreement (or the Supply Agreement or Quality Agreement) or violation of Applicable Laws, (y) the intentional misconduct or negligent acts by the other Party or (z) defects in the Product caused by the other Party; *provided* that, with respect to a Recall of Product and Related Substance that is supplied by or on behalf of ADCT pursuant to a Supply Agreement entered into between the Parties pursuant to Section 8.2 (Supply Agreement), any applicable provisions of the applicable supply agreement shall solely apply. Sobi shall determine and communicate with applicable Regulatory Authority regarding whether to initiate any Recall, of any Product in the Sobi Territory and ADCT shall determine and communicate with the applicable Regulatory Authorities regarding whether to initiate any Recall of any Product in the ADCT Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10.Sunshine Reporting Laws**. Each Party acknowledges that the other Party may be subject to national, state, local, and international laws, regulations, and rules related to the tracking and reporting of payments and transfers of value provided to health care professionals, health care organizations, and other relevant individuals and entities (collectively, "**Sunshine Reporting Laws**"), and agrees to provide the other Party with all information regarding such payments or transfers of value by such Party as necessary for such other Party to comply in a timely manner with its reporting obligations under the Sunshine Reporting Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11.Company Core Data Sheet**. Promptly after the Effective Date, the Parties shall coordinate regarding the process for the preparation of the Company Core Data Sheet (and any updates thereto) for the Product for submission to the JSC for review, discussion and approval.

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**ARTICLE 7****<br> **COMMERCIALIZATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Commercial Responsibility**. Each Party shall be responsible for all Commercialization activities relating to the Products within its respective Territory, including obtaining and maintaining Pricing Approval for the Product in its respective Territory, at its own cost, and each Party shall have sole decision-making authority with respect to commercial strategy and execution in its respective Territory (including booking of sales, inventory management, and distribution), except that (a) any decision made by Sobi in the Sobi Territory that could reasonably be expected to materially and adversely affect the ability of ADCT to obtain or maintain regulatory approval, market clearance or have a materially negative impact on ADCT's ability to market Products outside the Sobi Territory shall require approval of ADCT and (b) Sobi and its Affiliates and Sublicensees shall Commercialize Products in the Sobi Territory materially in accordance with the Sobi Commercialization Plan. ADCT shall reasonably assist Sobi with commercialization strategy and implementation upon Sobi's reasonable request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Commercial Diligence**. Sobi shall use Commercially Reasonable Efforts, itself or through its Affiliates or Sublicensees, to Commercialize a Product for each indication in each Major Market for which such Product has achieved Regulatory Approval. After the first approval of an MAA by the European Commission for a Product, Sobi intends to evaluate Commercializing such Product in each country in the EEA that is not a Major European Country, but, for the avoidance of doubt, Sobi shall have no obligation to Commercialize such Product in any such country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Commercialization Plan**. ADCT shall present, no later than [\*\*] days prior to the anticipated date of the first MAA approval of the Product in the Sobi Territory, to the JSC a global sales and marketing strategy for the worldwide sales of Products by ADCT and its Affiliates (such strategy, as may be amended by ADCT from time to time in accordance with this Section 7.3 (Commercialization Plan)) (the "**Global Commercialization Strategy**"). If from time to time ADCT wishes to amend the Global Commercialization Strategy, ADCT shall prepare and present the revised strategy at a JSC meeting for review and discussion. ADCT shall have the final decision with respect to the Global Commercialization Strategy and any amendments thereto; *provided* that ADCT shall consider in good faith any comments from Sobi on the Global Commercialization Strategy. Sobi shall submit to the JSC for review and approval a plan containing strategy, activities and timelines for Commercialization of Products in the Sobi Territory, including planned marketing activities for the Sobi Territory (such plan, as may be amended with approval of the JSC during the Term, the "**Sobi Commercialization Plan**"). Sobi shall use reasonable efforts to materially align the Sobi Commercialization Plan with the Global Commercialization Strategy as notified to Sobi by ADCT in accordance with the foregoing. Sobi shall update the Sobi Commercialization Plan and present such updates to the JSC at least annually for the JSC's review and approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Pricing; Reimbursement Approvals**. Notwithstanding any provision to the contrary set forth in this Agreement, each Party will have the right to determine the price of the Products sold in its respective Territory and neither Party will have the right to direct, control, or approve the pricing of the Products in the other Party's Territory. Sobi will keep ADCT reasonably informed with respect to its high-level pricing strategies with respect to any Product in the Sobi Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5. Commercialization Reports**. Sobi shall provide to ADCT and the JSC a high-level written report once every Calendar Half during the Royalty Term, describing the progress

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of its efforts and results achieved, during the last Calendar Half, to Commercialize the Products in the Major Markets in the Sobi Territory, including achievements under the Sobi Commercialization Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Sobi Territory Commercialization Costs**. Sobi shall be responsible for all costs incurred in connection with the Commercialization of the Products conducted by Sobi under the Sobi Commercialization Plan or otherwise. Additionally, Sobi shall be responsible for all Sobi Territory-Specific Costs incurred by ADCT in connection with Commercialization of the Products for the Sobi Territory to the extent within the Sobi Territory-Specific Budget, as set forth in Section 10.3.3 (Reimbursement of Sobi Territory-Specific Costs). Subject to Section 7.8 (ADCT Co-Promotion Option), ADCT shall not conduct any Commercialization activities with respect to the Products in the Sobi Territory that have not been approved by Sobi and set forth in the Sobi Territory-Specific Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Marketing and Promotional Literature; Packaging**. Each Party shall prepare all marketing and promotional literature related to Products for use in its respective Territory in accordance with Applicable Laws and consistent with the Global Commercialization Strategy and subject to Section 7.3 (Commercialization Plan). ADCT shall promptly provide the JSC with copies of such marketing and promotional literature utilized by ADCT, its Affiliates and its Sublicensees in the ADCT Territory. Prior to Sobi, its Affiliates or its Sublicensees utilizing any marketing or promotional literature in the Sobi Territory, Sobi shall provide the JSC with copies of such proposed core marketing and promotional literature for the JSC's review. For the avoidance of doubt, Sobi may subsequently translate and localize any previously provided core marketing and promotional literature, without review of the JSC. In certain marketing and promotional literature, ADCT will be presented and described as the Party who developed the Product in a manner to be determined by the JSC, including on all labels, packaging, packaging inserts, and promotional literature related to the Product, in each case, to the extent permitted by Applicable Laws. Sobi will provide the Product packaging it intends to use for the Product in the Sobi Territory to the JSC in advance, and the JSC will have the right to review such Product packaging. The marketing and promotional literature, labels, packaging, packaging inserts, Product packaging presented to the JSC under this Section 7.7 (Marketing and Promotional Literature; Packaging) shall be referred to as the "**Product Packaging and Marketing Materials**" hereunder. The Parties may mutually agree to jointly develop certain Product Packaging and Marketing Materials that may be used in both the ADCT Territory and Sobi Territory and share the costs with respect to such developed as agreed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.ADCT Co-Promotion Option**. ADCT shall have an option to Co-Promote the Products in the Sobi Territory in collaboration with Sobi (the "**Co-Promotion Option**") in accordance with the terms and conditions of this Section 7.8 (ADCT Co-Promotion Option). ADCT may exercise its Co-Promotion Option at any time during the Term upon [\*\*] prior written notice to Sobi. Without limiting its other functions, the JSC shall be responsible for coordinating the Co-Promotion activities of the Parties in the event ADCT has exercised its Co-Promotion Option in accordance with this Section 7.8 (ADCT Co-Promotion Option). If ADCT exercises the Co-Promotion Option, the Parties shall negotiate terms and conditions of such Co-Promotion arrangement and enter into a Co-Promotion agreement, which agreement shall include such terms and conditions as are usual and customary in co-promotion agreements between collaboration partners (the "**Co-Promotion Agreement**"). The Parties shall negotiate the Co-Promotion Agreement reasonably and in good faith and with such diligence as is required to execute and deliver the Co-Promotion Agreement by the date that is [\*\*] months following the date of notice of ADCT's exercise of the Co-Promotion Option or such other period as the Parties may agree in writing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.Trademarks**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.1.Product Trademark**. Sobi will market the Product in the Sobi Territory initially under the brand name ZYNLONTA™ or its equivalent in the applicable language of the applicable country in the Territory (the "**Product Trademark**"); *provided* that if it is necessary or desirable to address regulatory requirements or legal concerns regarding the viability of the registration of the Product Trademark or otherwise desirable to promote the Product in the Sobi Territory under a different trademark, then the Parties shall discuss and select one (1) or more alternative brand names for the Commercialization of the Product in the Sobi Territory (each, an "**Alternative Product Trademark**"); *provided* that if the Parties are unable to agree on such Alternative Product Trademark, Sobi shall have the right to select such Alternative Product Trademarks, subject to ADCT's approval (which approval shall not be unreasonably withheld, conditioned or delayed). ADCT shall be responsible for the prosecution, registration, and maintenance of the Product Trademarks in the Sobi Territory at Sobi's sole cost. Sobi shall own all rights, title and interests in and to any Alternative Product Trademark. ADCT shall own all rights, title and interests in and to the Product Trademark (including any trademark registration or application therefor or goodwill associated with any Product Trademark) throughout the world and shall have the sole right to register, prosecute and maintain the Product Trademark in the ADCT Territory using counsel of its own choice and at its own expenses. To the extent Sobi acquires any rights, title, or interests in or to the Product Trademark (including any trademark registration or application therefor or goodwill associated with any Product Trademark), Sobi will, and hereby does, assign the same to ADCT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.2.Trademark License; Use**. Subject to the terms and conditions of this Agreement and in consideration for payments payable to ADCT under ARTICLE 10 (Financial Terms), ADCT will and hereby does grant Sobi an exclusive license, with the right to sublicense (through multiple tiers) solely in conjunction with the grant of a permitted sublicense under Section 2.4 (Sublicenses), with no additional royalty payment, to use the Product Trademark in connection with the Commercialization of the Products in the Field in the Sobi Territory. Sobi agrees that it and its Affiliates and Sublicensees will Commercialize each of the Products in the Field in the Sobi Territory in a manner consistent with the Product Trademark and will: (a) ensure that all Products that are sold bearing the Product Trademark are of a high quality consistent with industry standards for global pharmaceutical and biologic therapeutic products; (b) ensure that each use of the Product Trademark by or on behalf of Sobi and its Affiliates and Sublicensees is accompanied by an acknowledgement that such Product Trademark is owned by ADCT; (c) not use such Product Trademark in a way that might prejudice their distinctiveness or validity or the goodwill of ADCT therein; (d) use the trademark registration symbol® or™ in connection with the Product Trademark as appropriate; (e) not use any Product packaging in connection with its Commercialization of the Products in the Sobi Territory until such Product packaging has been approved by ADCT in accordance with Section 7.7 (Marketing and Promotional Literature; Packaging); and (f) not use any trademarks or trade names so resembling the Product Trademark as to be likely to cause confusion or deception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.3.Product Trademark Infringement**. Each Party shall promptly notify the other Party in writing upon becoming aware of any infringement of a Product Trademark in the Sobi Territory, in which event the Parties shall promptly confer in good faith and determine how to proceed with any enforcement activity. ADCT shall have the first right, but not the obligation, to enforce the Product Trademark in the Sobi Territory and each Party shall bear [\*\*] of the expense of such enforcement in the Sobi Territory. If ADCT elects not to enforce the Product Trademark in the Sobi Territory, then Sobi shall have the right, but not the obligation, to enforce the Product Trademark in the Sobi Territory at its own expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.4.ADCT Corporate Marks**. Except to the extent prohibited by Applicable Law in the Sobi Territory, or otherwise directed by ADCT in writing, all packaging, labeling, advertising and promotional material used by Sobi, its Affiliates and Sublicensees in connection with the Products may feature ADCT's corporate trade name and logo ("**ADCT Corporate Marks**"). Subject to the terms and conditions of this Agreement, ADCT hereby grants to Sobi during the Term a non-exclusive, royalty-free license, with the right to sublicense solely in conjunction with the grant of a permitted sublicense under Section 2.4 (Sublicenses), to use the ADCT Corporate Marks in connection with the Commercialization of Products in the Field in the Sobi Territory in accordance with this Agreement, including the use of the ADCT Corporate Marks on Product packaging, labeling, advertising and promotional material. As between the Parties, ADCT shall have the sole right, but not the obligation, to prosecute, maintain and enforce the ADCT Corporate Marks in the Sobi Territory at its own expense. Sobi shall as soon as practicable notify ADCT of any apparent infringement by a Third Party of any of the ADCT Corporate Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10.Diversion**. Except under any Co-Promotion Agreement entered into by the Parties, each Party agrees that it will not, and will ensure that its Affiliates and Sublicensees will not, and will not cause any Third Party, to promote, market, distribute, import, sell, or have sold any Products to any Third Party or to any address or Internet Protocol address or the like outside of such Party's respective Territory, including via the Internet or mail order. Except under any Co-Promotion Agreement entered into by the Parties, neither Party will engage, and each Party will not permit its Affiliates or Sublicensees to engage, in any advertising or promotional activities relating to any Products for use directed primarily to customers or other buyers or users of the Products located in any country or jurisdiction outside of such Party's respective Territory, or solicit orders from any prospective purchaser located in any country or jurisdiction outside of such Party's respective Territory. If either Party or its respective Affiliates or Sublicensees receives any order for any Products from a prospective purchaser located in a country or jurisdiction outside of such Party's respective Territory, then such Party will immediately refer that order to the other Party and will not accept any such orders.

**ARTICLE 8**<br>**MANUFACTURING AND SUPPLY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Manufacturing Coordinators**. Each Party shall designate a qualified individual who has experience in pharmaceutical supply chain management to serve as primary contact and coordinator of supply of Products in connection with this Agreement ("**Manufacturing Coordinator**"). The Parties may, at their discretion, replace the Manufacturing Coordinator initially selected and, in such circumstance, shall provide a written notice to the other Party. The Manufacturing Coordinators shall be responsible for facilitating information exchange and discussion between the Parties regarding the supply of Products under this Agreement. The Manufacturing Coordinators will coordinate with the JSC on Manufacturing-related matters. ADCT's Manufacturing Coordinator will provide the JSC with a summary of the then-current Manufacturing Cost at least one (1) time per Calendar Year for the JSC's review and discussion. Each Party will be responsible for all of its own costs with respect to its Manufacturing Coordinator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Supply Agreement**. No later than [\*\*] days after the Effective Date, the Parties shall negotiate and execute one or more separate supply agreements (each, a "**Supply Agreement**") setting forth the agreed terms and conditions (such as the quantities and timelines for forecasting and supply of Products from ADCT to Sobi) for the Manufacture and supply of the Products to Sobi for the Sobi Territory-Specific Supply, which terms and conditions shall be consistent with those set forth on Schedule 8.2 (Supply Agreement Terms). The Supply

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Agreement shall include Sobi's good faith estimate of its and its Affiliates' and sublicensees' requirements for the Products for the [\*\*] following execution of the Supply Agreement. In addition, Sobi shall supply ADCT or the JSC with a [\*\*] rolling forecast, the first [\*\*] of which shall be a binding forecast, of its and its Affiliates' and sublicensees' requirements for the Products and months [\*\*] through [\*\*] of which shall be a semi-binding forecast with a [\*\*] variance permitted, which forecast shall be updated quarterly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Quality Agreements**. No later than [\*\*] days after the Effective Date, in connection with the execution of the Supply Agreement, and in any event, prior to the delivery of any Products thereunder, the Parties shall in good faith negotiate an execute one or more related quality agreements (each, a "**Quality Agreement**"), which will include such terms as are reasonable and customary for quality agreements governing pharmaceutical products of a similar nature, including.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Supply by ADCT**. Until occurrence of the Transfer Completion pursuant to Section 8.5 (Supply by Sobi), ADCT shall, either by itself or through its Affiliates or Third Party contract manufacturers, Manufacture and supply to Sobi and Sobi shall purchase from ADCT, in accordance with the Supply Agreement, all of Sobi's and its Affiliates' and sublicensees' reasonable requirements for the Products for use in the Development of Products under the Sobi Development Plan or Medical Affairs Activities under the Sobi Medical Affairs Plan (including any Investigator Sponsored Clinical Studies) and Commercialization of the Products in the Field in the Sobi Territory (the "**Sobi Territory-Specific Supply**"). ADCT shall provide all Products in [\*\*], unless otherwise agreed to by the Parties, and shall deliver the Products to Sobi in accordance with the delivery terms described on Schedule 8.2 (Supply Agreement Terms), and shall invoice Sobi for the Manufacturing Cost plus [\*\*] upon such delivery in accordance with the Supply Agreement. Sobi shall pay such invoiced amount within [\*\*] days after the date of the invoice. [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Supply by Sobi**. If, during the Term of this Agreement (a) Sobi desires in writing to assume the responsibility and obligation to Manufacture or have Manufactured the Compound or Products for the Sobi Territory-Specific Supply at any time during the period commencing on [\*\*] and ending the day at least [\*\*] prior to the anticipated expiration of the Royalty Term; and (b) such Manufacturing activities (if and when conducted by Sobi) would be permitted by Applicable Laws, then ADCT shall complete a technology transfer to Sobi of such rights, Know-How, materials (including intermediates), in each case, within ADCT's Control, and otherwise the ability to Manufacture and have Manufactured (through a contract manufacturing organization with which ADCT has entered into an agreement), including contracts or arrangements with Third Party vendors (including distributors), such Compound and Product for Sobi Territory-Specific Supply in accordance with a technology transfer plan to be developed by ADCT and submitted to the JSC for its discussion and approval (the completion of such technology transfer, the "**Transfer Completion**"). Such technology transfer plan shall include: [\*\*]. All technology transfer under this Section 8.5 (Supply by Sobi) shall be at Sobi's sole cost and expense (as to Sobi's costs and expenses), and Sobi shall reimburse ADCT's FTE Costs and Out-of-Pocket Costs directly incurred in connection therewith, to the extent accompanied by supporting documentation, incurred in accordance with the technology transfer plan budget, and accrued in accordance with ADCT's Accounting Standards. Following Transfer Completion, Sobi will be responsible for Manufacturing Products for its own use in the Sobi Territory and all costs of Manufacturing will be at Sobi's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6. Packaging and Labeling**. Sobi shall be responsible for all Packaging and Labeling of Product supplied by ADCT or, if applicable, Manufactured by Sobi following Transfer Completion. Following Packaging and Labeling of Product by Sobi, Sobi shall be

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solely responsible for (a) supply chain operations for the countries of the Sobi Territory (including stock-holding of bulk finished goods, distribution, the appropriate distribution licenses and customer operations) and (b) Commercialization of such packaged and labeled Product in the Sobi Territory pursuant to ARTICLE 7 (Commercialization), including distribution thereof. Until such time that Sobi is able to conduct all Packaging and Labeling steps, ADCT will, upon formal request by Sobi, conduct all or a portion of the Packaging and Labeling steps at Sobi's cost and expense. For avoidance of doubt, ADCT's cost of conducting such Packaging and Labeling steps, if any, will be included in the Manufacturing Cost of the Product. Upon Sobi's request, ADCT shall provide Sobi with any information or materials available to ADCT that Sobi needs in order to set up Packaging and Labeling, including Product specifications, safety data for handling, temperature control data and analytical methods and reference standards for identification testing.

**ARTICLE 9<br>MEDICAL AFFAIRS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Responsibility**. Each Party would have the sole responsibility to engage in Medical Affairs Activities in its respective Territory, at its own expense, except that (a) [\*\*], (b) [\*\*], and (c) Sobi and its Affiliates and Sublicensees shall perform Medical Affairs Activities for the Products in the Sobi Territory materially in accordance with the Sobi Medical Affairs Plan. ADCT shall reasonably assist Sobi with strategy and implementation of Medical Affairs Activities in the Sobi Territory upon Sobi's reasonable request. The Parties shall coordinate with each other through the JSC with respect to Medical Affairs Activities for the Product in their respective Territories, including with respect to global conferences. The Parties shall coordinate regarding the Parties' participation regarding the Product in international congresses. Notwithstanding any other term of this Agreement, ADCT shall not conduct any Medical Affairs Activities in the Sobi Territory without Sobi's prior written consent (not be unreasonably withheld, conditioned or delayed); *provided* that Sobi is deemed to have consented to the conduct of the Investigator Sponsored Clinical Studies in the Sobi Territory set forth on Schedule 9.1 (In-Progress Investigator Sponsored Clinical Studies) in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Medical Affairs Plan**. ADCT shall prepare and present, no later than [\*\*] days prior to the anticipated date of the first Regulatory Approval of the Product in the Sobi Territory, at a JSC meeting for review and discussion a strategy containing the worldwide strategy, activities and timeline with respect to ADCT's and its Affiliates' Medical Affairs Activities in support of the Products in the Field (such strategy, as may be amended by ADCT from time to time in accordance with this Section 9.2 (Medical Affairs Plan)) (the "**Global Medical Affairs Strategy**"). If from time to time ADCT wishes to amend the Global Medical Affairs Strategy, ADCT shall prepare and present the revised strategy at a JSC meeting for review and discussion. ADCT shall have the final decision with respect to the Global Medical Affairs Strategy and any amendments thereto; *provided* that ADCT shall consider in good faith any comments from Sobi on the Global Medical Affairs Strategy. Sobi shall prepare and present, from time to time (but in any event before Sobi commences any Medical Affairs Activities), at a JSC meeting a plan containing the strategy, activities and timeline with respect to the Medical Affairs Activities in support of the Products in the Sobi Territory for the JSC to review and approve (such plan, as may be amended with approval of the JSC during the Term, the "**Sobi Medical Affairs Plan**"). Sobi shall update the Sobi Medical Affairs Plan and present such updates to the JSC at least annually or upon request of the JSC for the JSC's review and approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Medical Affairs Sponsored Clinical Studies**. Each Party may propose to the JSC the conduct of any medical affairs-sponsored Clinical Study (*e.g.*, clinical trial,

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epidemiological study, post-marketing surveillance, or cost effectiveness or HEOR study, but excluding Investigator Sponsored Clinical Studies), commenced after receipt of Regulatory Approval (but excluding any Phase 3b clinical trial in its respective Territory). The Parties shall discuss, through the JSC (or the joint medical committee once established under Section 9.7 (Joint Medical Committee)), and determine whether to conduct such medical affairs sponsored Clinical Study as a Global Study hereunder. For the sake of clarity, ADCT would not require the approval of Sobi to conduct any medical affairs-sponsored Clinical Study (or other Clinical Study, including an Investigator Sponsored Clinical Study) in the ADCT Territory. ADCT may only withhold its approval (including through decisions of the JSC or the joint medical committee, if applicable) to Sobi's conduct of any medical affairs-sponsored Clinical Study (or other Clinical Study, but excluding an Investigator Sponsored Clinical Study) in the Sobi Territory if such Clinical Study could reasonably be expected to materially and adversely impact the sale, marketing, Development, approval, label, safety or Commercialization of the Compound and Products in the ADCT Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Investigator Sponsored Clinical Study**. Sobi will have the right to submit to the JSC (or the joint medical committee once established under Section 9.7 (Joint Medical Committee)), proposals for Investigator Sponsored Clinical Studies in the Sobi Territory and to support such Investigator Sponsored Clinical Study at its own discretion. Sobi shall propose any Investigator Sponsored Clinical Study to ADCT through the joint medical committee, and if ADCT agrees, such agreement not to be unreasonably withheld, conditioned or delayed, then such Investigator Sponsored Clinical Study will be added to an updated version of the Sobi Medical Affairs Plan. Neither Party shall authorize or support an Investigator Sponsored Clinical Study in the other Party's Territory without such other Party's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Medical Affairs Reports**. Sobi shall provide to ADCT and the JSC a high-level written report once every Calendar Half during the Royalty Term, describing (a) the progress of its efforts and results achieved, during the last Calendar Half, to perform Medical Affairs Activities with respect to the Products in Sobi Territory, including achievements under the Sobi Medical Affairs Plan and (b) the expected Medical Affairs Activities relating to the Products in the Sobi Territory to be performed in the next Calendar Half under the Sobi Medical Affairs Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Sobi Territory Medical Affairs Costs**. Sobi shall be responsible for all costs incurred in connection with the Medical Affairs Activities for the Products conducted by Sobi under the Sobi Medical Affairs Plan. Additionally, Sobi shall be responsible for all Sobi Territory-Specific Costs incurred by ADCT in connection with Medical Affairs Activities for the Products in the Sobi Territory, as set forth in Section 10.3.3 (Reimbursement of Sobi Territory-Specific Costs). Subject to Section 7.8 (ADCT Co-Promotion Option), ADCT shall not conduct any Medical Affairs Activities with respect to the Products in the Sobi Territory that have not been approved by Sobi and set forth in the Sobi Territory-Specific Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Joint Medical Committee**. Within [\*\*] days of the Effective Date, the Parties, acting through the JSC, shall (a) establish a joint medical committee, which shall be a subcommittee of the JSC, and (b) determine the scope of the joint medical committee's functions, which may include (i) review of Global Medical Affairs Strategy and the Sobi Medical Affairs Plan, (ii) review of Investigator Sponsored Clinical Studies and (iii) determination of a publication strategy. The joint medical committee shall be comprised of three (3) representatives of each Party, who may be replaced at any time by providing written notice thereof (but otherwise Section 3.2 (Procedures) shall apply to the joint medical committee).

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**ARTICLE 10****<br> **FINANCIAL TERMS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Upfront Payment**. In partial consideration of the rights granted to Sobi under this Agreement, Sobi shall pay to ADCT a one-time, non-refundable, non-creditable upfront payment of Fifty-Five Million US Dollars ($55,000,000) within [\*\*] Business Days following the execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Milestone and Royalty Payments**. In further consideration of the rights granted to Sobi under this Agreement, Sobi shall pay to ADCT the following amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Regulatory Milestone Payments**. Sobi shall notify ADCT in writing within [\*\*] days after the first achievement of each applicable milestone event set forth below (whether by Sobi or its Affiliate or Sublicensee) (each, a "**Regulatory Milestone**"). Sobi shall pay to ADCT the corresponding one-time, non-refundable, non-creditable payment for each such milestone event (each, a "**Regulatory Milestone Payment**"), within [\*\*] days following receipt of an invoice for such Regulatory Milestone Payment from ADCT.

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| | | |
|:---|:---|:---|
| **TABLE 10.2.1 – REGULATORY MILESTONES FOR PRODUCTS** | **TABLE 10.2.1 – REGULATORY MILESTONES FOR PRODUCTS** | **TABLE 10.2.1 – REGULATORY MILESTONES FOR PRODUCTS** |
| | **Regulatory Milestone** | **Regulatory Milestone Payment** |
| 1. | &nbsp;&nbsp;Receipt of approval of an MAA by the European Commission for a Product for Third Line DLBCL | USD 50,000,000 |
| 1. | &nbsp;&nbsp;[\*\*] | [\*\*] |
| 1. | &nbsp;&nbsp;[\*\*] | [\*\*] |
| 1. | &nbsp;&nbsp;[\*\*] | [\*\*] |
| 1. | &nbsp;&nbsp;[\*\*] | [\*\*] |
| 1. | &nbsp;&nbsp;[\*\*] | [\*\*] |
| 1. | &nbsp;&nbsp;[\*\*] | [\*\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.Limitation on Regulatory Milestone Payments; Skipped Regulatory Milestones**. Each Regulatory Milestone Payment listed in Table 10.2.1 is payable only once during the Term upon the first achievement of such Regulatory Milestone by Sobi, its Affiliates, or Sublicensees regardless of the number of times the Regulatory Milestone is achieved with respect to one or more Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.Sales Milestone Payments**. Sobi shall notify ADCT in writing within [\*\*] days after the end of the Calendar Year in which the applicable sales milestone event set forth below (each, a "**Sales Milestone**") is first achieved by Sobi, its Affiliates, or Sublicensees. Sobi shall pay to ADCT the corresponding one-time, non-refundable, non-creditable payment for such milestone event (each, a "**Sales Milestone Payment**"), within [\*\*] days following receipt of an invoice from ADCT for such Sales Milestone Payment. Sales Milestones are based on aggregate Net Sales of all Products across all indications in the Field in the Sobi Territory in a given Calendar Year.

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| | |
|:---|:---|
| **Table 10.2.3 – SALES MILESTONES FOR PRODUCTS** | **Table 10.2.3 – SALES MILESTONES FOR PRODUCTS** |
| **Sales Milestone** | **Sales Milestone Payment** |
| &nbsp;&nbsp;[\*\*] | [\*\*] |
| &nbsp;&nbsp;[\*\*] | [\*\*] |
| &nbsp;&nbsp;[\*\*] | [\*\*] |
| &nbsp;&nbsp;[\*\*] | [\*\*] |
| &nbsp;&nbsp;[\*\*] | [\*\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4.Limitation on Sales Milestone Payments; Skipped Sales Milestones**. Each of the Sales Milestone Payments listed in Table 10.2.3 shall be payable only once during the Term regardless of the number of times such milestone is achieved. In the event that more than one (1) of the Net Sales thresholds set forth in Table 10.2.3 is exceeded in the same Calendar Year, Sobi shall pay to ADCT each separate Sales Milestone Payment with respect to each such threshold that is exceeded during such Calendar Year, to the extent such Sales Milestone Payments have not already been paid or are not payable with respect to a previous Calendar Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5.Royalty Rate**. Subject to Section 10.2.6 (Royalty Term) and Section 10.2.7 (Royalty Adjustments), Sobi shall pay to ADCT royalties on aggregate Net Sales of Products in the Sobi Territory in each Calendar Year as set forth below:

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| | |
|:---|:---|
| **Annual Net Sales of Products in the Sobi Territory** | **Royalty Rate** |
| &nbsp;&nbsp;Portion of Net Sales less than or equal to [\*\*] | [\*\*] |
| &nbsp;&nbsp;Portion of Net Sales greater than [\*\*] but less than or equal to [\*\*] | [\*\*] |
| &nbsp;&nbsp;Portion of Net Sales greater than [\*\*] but less than or equal to [\*\*] | [\*\*] |
| &nbsp;&nbsp;Portion of Net Sales greater than [\*\*] but less than or equal to [\*\*] | [\*\*] |
| &nbsp;&nbsp;Portion of Net Sales greater than [\*\*] but less than or equal to [\*\*] | [\*\*] |
| &nbsp;&nbsp;Portion of Net Sales greater than [\*\*]  | [\*\*] |

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Each royalty rate set forth in the table above will apply only to that portion of the aggregate Net Sales of Products in the Sobi Territory during a given Calendar Year that falls within the indicated portion. For example, if there is $200,000,000 in aggregate annual Net Sales of the Product in the Sobi Territory in a given Calendar Year, then Sobi would owe a royalty payment of [\*\*]. For the avoidance of doubt, royalties are payable on a Calendar Quarter basis, as set forth in Section 10.2.8 (Royalty Reports and Royalty Payments) below.

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No multiple royalties will be payable under this Section 10.2.5 (Royalty Rate) regardless of the number of Valid Claims in any ADCT Patent Covering a Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.6.Royalty Term**. The term of the royalties payable under this ARTICLE 10 (Financial Terms), on a Product-by-Product and country-by-country basis in the Sobi Territory, shall commence on the First Commercial Sale of such Product in such country and will expire on the latest of: (a) ten (10) years after the First Commercial Sale of the relevant Product in such country, (b) the date of expiration of the last-to-expire of any Valid Claim in such country, and (c) the expiration of Regulatory Exclusivity with respect to such Product in such country (collectively, the **"Royalty Term"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.7.Royalty Adjustments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Valid [\*\*] Claim Expiration**. On a Product-by-Product and country-by-country basis, if the last Valid Claim in such country in the Sobi Territory claiming the Compound in such Product [\*\*] has expired during the Royalty Term, then, on a Product-by-Product and country-by-country basis, the royalties payable by Sobi under Section 10.2.5 (Royalty Rate) with respect to Net Sales of such Product in such country in the Sobi Territory shall be reduced by [\*\*] for the remainder of the Royalty Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Valid Claim Expiration**. On a Product-by-Product and country-by-country basis, if the last Valid Claim in such country in the Sobi Territory has expired during the Royalty Term, then, on a Product-by-Product and country-by-country basis, the royalties payable by Sobi under Section 10.2.5 (Royalty Rate) with respect to Net Sales of such Product in such country in the Sobi Territory shall be reduced by [\*\*] for the remainder of the Royalty Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Biosimilar Competition Reduction**. If, during the Royalty Term of a Product in a country in the Sobi Territory, one or more Biosimilar Product(s) with respect to such Product is sold in such country in the Sobi Territory, and either (i) such Biosimilar Product(s), by unit equivalent volume in such country, exceed a [\*\*] share of the aggregate market in such country of such Product and all such Biosimilar Product(s) (based on the number of units of such Product and such Biosimilar Product(s) in the aggregate sold in such country, as reported by a well-known reporting service agreed between the Parties acting reasonably (*e.g.*, IQVIA)); or (ii) the Net Sales of such Product in such country are reduced by [\*\*] in a Calendar Quarter when compared to [\*\*] immediately prior to the entry of the first Biosimilar Product for such Product in such country, then, in either case ((i) or (ii)), the royalties payable by Sobi under Section 10.2.5 (Royalty Rate) with respect to Net Sales of such Product in such country in the Sobi Territory shall be reduced by [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**Third Party Royalty Payments**. If Sobi actually pays any payment to any Third Party for such Sobi Third Party License in consideration for issued Patents that Cover the Compound or Product (but excluding Patents that Cover the other active ingredient(s) in a Combination Product) in the Sobi Territory and that would be infringed by the sale of the Product in the Sobi Territory in the absence of such license or other rights, then Sobi shall be entitled to reduce, on a Product-by-Product and country-by-country basis, from any of the royalties otherwise payable by Sobi pursuant to Section 10.2.5 (Royalty Rate), an amount equal to [\*\*] of any such payments paid by Sobi to such Third Party pursuant to the applicable Sobi Third Party License with respect to the Development, Manufacture, Final Manufacture or Commercialization of the same Product in the Sobi Territory; *provided* that such reduction will not reduce the royalties payable to ADCT for such Product in such country in a particular Calendar Quarter by more than [\*\*] of what would have been payable to ADCT under Section

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10.2.5 (Royalty Rate) for such Product in such country without taking such reductions (the "**Third Party Stacking Floor**"); *provided*, *further*, that to the extent that any such amount cannot be offset or deducted against any royalty payment due with respect to such Product in such country for any given Calendar Quarter due to for foregoing limitations for such payment, then the unused portion of such amount may be carried forward and offset against the royalty payment(s) with respect to such Product in such country in the following Calendar Quarter(s) (subject always to the Third Party Stacking Floor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**Limits on Deductions**. Notwithstanding the foregoing in Section 10.2.7(a) (Valid Claim Expiration) to Section 10.2.7(d) (Third Party Royalty Payments), during any Calendar Quarter in the Royalty Term, the aggregate amount of the reductions on a Product-by-Product and country-by-country basis under Section 10.2.7(a) (Valid [\*\*] Claim Expiration), Section 10.2.7(b) (Valid Claim Expiration), Section 10.2.7(c) (Biosimilar Competition Reduction), and Section 10.2.7(d) (Third Party Royalty Payments), shall not reduce the royalties payable to ADCT under Section 10.2.5 (Royalty Rate) to less than [\*\*] of the amount that would have been payable to ADCT under Section 10.2.5 (Royalty Rate) for such Product in such country without taking such reductions (the "**Offset Floor**"); *provided* that to the extent that any such amount cannot be offset or deducted against any royalty payment due with respect to such Product in such country for any given Calendar Quarter due to the Offset Floor for such payment, then the unused portion of such amount may be carried forward and offset against the royalty payment(s) with respect to such Product in such country in the following Calendar Quarter(s) (subject always to the Offset Floor for each Calendar Quarter for any such payment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.8.Royalty Reports and Royalty Payments**. Commencing with the First Commercial Sale of a Product in the Sobi Territory, Sobi shall deliver, in writing, to ADCT (a) non-binding estimates of Net Sales for each Calendar Quarter, on a country-by-country and Product-by-Product basis, within [\*\*] days following the end of such Calendar Quarter and (b) written reports of actual Net Sales for each Calendar Quarter within [\*\*] days after the end of each Calendar Quarter. Such report of actual Net Sales shall include the converted US Dollars amounts, which conversion shall be made at the Exchange Rate for the each calendar month in the Calendar Quarter. Such written report of actual Net Sales shall also include, on a consolidated basis in reasonably specific detail: [\*\*]. Sobi shall pay ADCT the royalties set forth in each such report within [\*\*] days of receipt by Sobi of ADCT's invoice for such royalty payment. If no royalties are due, Sobi shall so report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Manufacturing Cost and Reimbursements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.1.Manufacturing Costs**. Unless otherwise set forth in the applicable Supply Agreement between the Parties, in consideration for Products and Related Substances supplied from ADCT pursuant to Section 8.2 (Supply Agreement), ADCT shall invoice Sobi, and Sobi shall pay within [\*\*] days of receipt by Sobi of ADCT's invoice, for the Manufacturing Cost plus [\*\*] and other costs set forth in the Supply Agreement, in US Dollars; *provided* that any currency conversion into US Dollars will be made pursuant to the currency conversion scheme set forth in Section 1.77 (Exchange Rate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.2.Reimbursement of the Sobi Global Study Cost Contribution**. Within [\*\*] days after the end of every Calendar Quarter during the Term, ADCT shall submit to Sobi a non-binding estimate of Direct Development Costs incurred by or on account of ADCT in the preceding Calendar Quarter for the Co-Funded Global Studies. Within [\*\*] days after the end of every Calendar Quarter during the Term, ADCT shall submit to Sobi a reasonably detailed reconciliation report setting forth the Direct Development Costs incurred by or on account of ADCT in the preceding Calendar Quarter for the Co-Funded Global Studies. Subject to the Sobi

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Annual Co-Funding Cap, Sobi shall pay to ADCT the Sobi Global Study Cost Contribution for such Calendar Quarter within [\*\*] days following receipt of an invoice from ADCT therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.3.Reimbursement of Sobi Territory-Specific Costs**. Sobi will reimburse ADCT for all Sobi Territory-Specific Costs incurred by ADCT prior to or during the Term that are within the Sobi Territory-Specific Budget. Within [\*\*] days after the end of every other Calendar Quarter (*i.e.*, two (2) times per year) during the Term, ADCT shall submit to Sobi a non-binding estimate of Sobi Territory-Specific Costs incurred by or on behalf of ADCT in the two (2) preceding Calendar Quarters. Within [\*\*] days after the end of such two (2) Calendar Quarters during the Term, ADCT shall submit to Sobi a reasonably detailed reconciliation report setting forth the actual Sobi Territory-Specific Costs incurred by or on behalf of ADCT in the two (2) preceding Calendar Quarters. Sobi shall pay to ADCT such Sobi Territory-Specific Costs (to the extent within the Sobi Territory-Specific Budget) for such two (2) Calendar Quarters within [\*\*] days following receipt of an invoice from ADCT therefor. On an annual basis during the Term, ADCT will prepare and submit to the JSC for approval a budget for the Sobi Territory-Specific Costs anticipated to be incurred by or on behalf of ADCT for the upcoming Calendar Year (the "**Sobi Territory-Specific Budget**"). Within [\*\*] weeks following the Effective Date, the Parties will agree to an initial Sobi Territory-Specific Budget for 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.4.Payment of Data Access Reimbursement Payment**. For each ADCT-Funded Global Study for which Sobi elects to use and exploit the Data pursuant to Section 5.3.5 (Opt-In for Global Study), Sobi shall pay to ADCT the Data Access Reimbursement Payment within [\*\*] days following the receipt of an invoice therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.5.Other Reimbursements**. To the extent that either Party incurs costs that are subject to reimbursement by the other Party hereunder, other than as set forth in Section 10.3.1 (Manufacturing Costs) or Section 10.3.2 (Reimbursement of the Sobi Global Study Cost Contribution), the Party incurring such costs shall provide such other Party an invoice therefor in US Dollars, based on the applicable Exchange Rate. The invoicing Party shall provide the other Party with such supporting documentation for such invoice as such other Party may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Payment of Invoices; Disputes**. Each Party shall pay any such undisputed invoice provided by the other Party under this Agreement within [\*\*] days following its receipt thereof. All payments shall be made in US Dollars, calculated at the applicable Exchange Rate. If the Party receiving such invoice disputes any portion thereof in good faith, then it shall give the invoicing Party written notice of such dispute and pay the undisputed portions of such invoice and the Parties shall promptly seek to reasonably resolve the disputed portions. Any dispute with respect to the amounts set forth in a report or invoice delivered under this Section 10.4 (Payment of Invoices; Disputes) that are not resolved by the Parties within [\*\*] days after such dispute is first raised shall be referred to the JSC for attempted resolution. If the JSC does not resolve such dispute within [\*\*] days, the matter shall be determined under the dispute resolution provisions of ARTICLE 16 (Dispute Resolution).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.1.No Double Charges**. Neither Party will double charge the other Party for any costs or expenses subject to reimbursement under this Section 10.3 (Manufacturing Cost and Reimbursements) or any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Remittance**. All amounts paid under this Agreement will be made in US Dollars through wire transfer to such bank account as the invoicing Party may designate in writing from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Late Payments**. If either Party does not receive payment of any sum due to it on or before the due date, simple interest shall thereafter accrue on the sum due to such Party until the date of payment at the per annum rate of [\*\*] points above the Prime Rate assessed from the day payment was initially due within the regular office hours of the paying Party; *provided*, *however*, that in no case shall such interest rate exceed the highest rate permitted by Applicable Laws. The payment of such interest shall not foreclose each Party from exercising any other rights it may have because any payment is overdue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Taxes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.1.Cooperation and Coordination**. The Parties acknowledge and agree to cooperate in order to appropriately calculate consistently with Applicable Laws, withholding taxes payable with respect to their collaborative efforts under this Agreement and any appropriate reductions, credits, or deductions that may lawfully reduce otherwise applicable withholding taxes. In particular, where any such deduction or withholding in relation to any payment made under this Agreement can be reduced, eliminated or recovered by an application under any double tax treaty, the Parties shall cooperate with each other and use commercially reasonable efforts with regards to such application. ADCT shall provide to Sobi any taxation documents and other documents that may be reasonably necessary in order for Sobi not to withhold tax or to withhold tax at a reduced rate under an appropriate income tax treaty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.2.Payment of Tax**. A Party receiving a payment pursuant to this Agreement shall pay any and all taxes levied on such payment except as provided in this Section 10.7 (Taxes). If one Party is required by Applicable Laws to make a payment to the other Party subject to a deduction or withholding of tax, the paying Party may deduct or withhold the applicable tax without increase of the amount and shall (a) deduct those taxes from the payment; (b) pay the taxes to the proper taxing authority; and (c) send evidence of the obligation together with proof of payment to the other Party within [\*\*] days following that payment. If the paying Party is required by the proper taxing authority to make a payment of withholding tax, the other Party shall collaborate reasonably to seek a refund under the tax treaty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.3.Withholding Taxes Resulting from Sobi's Action**. Without limiting the generality of the foregoing, if Sobi (or Sobi's assignees or successors) is required to make a payment to ADCT subject to a deduction or withholding of tax, and if such deduction or withholding of tax obligation arises solely as a result of (a) an assignment of this Agreement as permitted under Section 17.5 (Assignment), (b) there is a change in the tax residency of Sobi after the date of this Agreement, or (c) the payments arise or are deemed to arise through a branch of Sobi outside of Sweden and such action has the effect of increasing the amount of tax deducted or withheld (each, a "**Sobi Withholding Tax Action**"), then notwithstanding Section 10.7.2 (Payment of Tax), the payment by Sobi (in respect of which such deduction or withholding of tax is required to be made) shall be increased by the amount necessary to ensure that the other Party receives an amount equal to the same amount that it would have received had no Sobi Withholding Tax Action occurred; *provided* that if ADCT has assigned this Agreement, changed its tax residency after the date of this Agreement or received the payment through a branch, agency or permanent establishment, Sobi's obligation to pay such additional amounts under this Section 10.7.3 (Withholding Taxes Resulting from Sobi's Action) shall not exceed such amounts that would have been payable had ADCT not assigned this Agreement, changed its tax residency after the date of this Agreement or received the payment through a branch, agency or permanent establishment. For the avoidance of doubt this Section 10.7.3 (Withholding Taxes Resulting from Sobi's Action) shall not apply to any obligation of Sobi to withhold amounts as required by the Applicable Laws of Germany (unless Sobi has assigned this Agreement to

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Germany, changed its tax residency to Germany or received the payment through a branch, agency or permanent establishment in Germany) or Sweden.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.4.Withholding Taxes Resulting from ADCT's Action**. Without limiting the generality of the foregoing, if ADCT (or ADCT's assignees or successors) is required to make a payment to Sobi subject to a deduction or withholding of tax, and if such deduction or withholding of tax obligation arises solely as a result of (a) an assignment of this Agreement by ADCT as permitted under Section 17.5 (Assignment), (b) there is a change in the tax residency of ADCT after the date of this Agreement, or (c) the payments arise or are deemed to arise through a branch of ADCT outside of Switzerland and such action has the effect of increasing the amount of tax deducted or withheld (each, an "**ADCT Withholding Tax Action**"), then notwithstanding Section 10.7.2 (Payment of Tax), the payment by ADCT (in respect of which such deduction or withholding of tax is required to be made) shall be increased by the amount necessary to ensure that Sobi receives an amount equal to the same amount that it would have received had no ADCT Withholding Tax Action occurred; *provided* that if Sobi has assigned this Agreement, changed its tax residency after the date of this Agreement or received the payment through a branch, agency or permanent establishment ADCT's obligation to pay such additional amounts under this Section 10.7.4 (Withholding Taxes Resulting from ADCT's Action) shall not exceed such amounts that would have been payable had Sobi not assigned this Agreement, changed its tax residency after the date of this Agreement or received the payment through a branch, agency or permanent establishment. For the avoidance of doubt, this Section 10.7.4 (Withholding Taxes Resulting from ADCT's Action) shall not apply to any obligation of ADCT to withhold amounts as required by the Applicable Laws of Switzerland.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.5.VAT**. All payments under this Agreement are exclusive of VAT. If any VAT is chargeable on any supply under this Agreement the Party with the payment obligation shall pay an additional amount equal to such VAT at the applicable rate in respect of such supply, on the due date of the payment to which such VAT relates and on receipt of a valid VAT invoice addressed to that Party; *provided* that this Section 10.7.5 (VAT) does not apply to any VAT that is payable by the recipient of the payment under a reverse charge mechanism or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.Records; Audits**. Sobi and its Affiliates and Sublicensees on one hand, and ADCT and its Affiliates on the other hand, will maintain complete and accurate records in sufficient detail to permit the other Party to, or have an independent certified public accountant selected by the other Party to, confirm the accuracy of the calculation of any royalty, Direct Development Cost, Manufacturing Cost or other payments under this Agreement. Upon reasonable prior notice, such records shall be available during regular business hours for a period of [\*\*] years from the end of the Calendar Year concerned for examination at the auditing Party's expense, and not more often than once each Calendar Year, by an independent certified public accountant selected by one Party and reasonably acceptable to the other Party (which acceptance shall not be unreasonably withheld, conditioned or delayed), for the sole purpose of verifying the accuracy of the financial reports furnished by the audited Party pursuant to this Agreement. Any such auditor shall not disclose Confidential Information of the audited Party, except to the extent such disclosure is necessary to demonstrate a discrepancy discovered by the auditor. For clarity, the auditor shall disclose the Confidential Information of the audited Party to the auditing Party only to the extent necessary to confirm calculation of royalty payments and supply price under this Agreement, as applicable. The auditing Party shall provide the audited Party with a copy of audit report within [\*\*] days from its receipt of such audit report from the accountant. Any amounts shown to be owed but unpaid shall be paid within [\*\*] days from the receipt of the copy of audit report by the audited party, plus interest (as set forth in Section 10.6 (Late Payments)) from the original due date. Any amounts shown to have been overpaid shall be

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creditable and refunded within [\*\*] days from the accountant's report. The auditing Party shall bear the full cost of such audit unless such audit discloses an underpayment of the amount actually owed during the applicable Calendar Year of more than [\*\*] of the amounts actually owed, in which case the audited Party shall bear the full cost of such audit.

**ARTICLE 11**<br>**CONFIDENTIALITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Non-Use and Non-Disclosure**. During the Term and for [\*\*] years thereafter, each Party shall: (a) except to the extent permitted by this Agreement or otherwise agreed to in writing by the Parties, keep confidential and not disclose any Confidential Information of the other Party to any Third Party; (b) except in connection with activities contemplated by, the exercise of rights permitted by, or in order to further the purposes of, this Agreement or as otherwise agreed to in writing by the Parties, not use for any purpose any Confidential Information of the other Party; and (c) take all reasonable precautions to protect the Confidential Information of the other Party (including all precautions a Party employs with respect to its own confidential information of a similar nature and taking reasonable precautions to assure that no unauthorized use or disclosure is made by others to whom access to the Confidential Information of the Party is granted); *provided*, *however*, that with respect to Confidential Information that constitutes trade secrets and that the disclosing Party notifies the receiving Party is subject to trade secret protection when initially disclosed to the receiving Party, the Parties will comply with the obligations of confidentiality and non-use set forth in this ARTICLE 11 (Confidentiality) for so long as such Confidential Information remains a trade secret under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Exclusions**. Notwithstanding anything set forth in this ARTICLE 11 (Confidentiality) to the contrary, the obligations of Section 11.1 (Non-Use and Non-Disclosure) shall not apply (and such information will not be considered Confidential Information hereunder) to the extent that the Party seeking the benefit of the exclusion can demonstrate by competent written evidence that the Confidential Information of the other Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.**was already known to the receiving Party, other than under an obligation of confidentiality, at the time of receipt by the receiving Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.**was generally available to the public or otherwise part of the public domain at the time of its receipt by the receiving Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.**became generally available to the public or otherwise part of the public domain after its receipt by the receiving Party other than through any act or omission of the receiving Party in breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4.**was received by the receiving Party without an obligation of confidentiality from a Third Party having the right to disclose such information without restriction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5.**was independently developed by or for the receiving Party outside of the scope of this Agreement and without use of or reference to the Confidential Information of the other Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.6.**was released from the restrictions set forth in this Agreement by express prior written consent of the other Party;

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*provided* that the exceptions in Section 11.2.1 and Section 11.2.5 shall not apply with respect to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Authorized Disclosures**. Notwithstanding the foregoing, a Party may use and disclose the Confidential Information of the other Party as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.1.**if required by applicable law, rule or governmental regulation, including as may be required in connection with any filings made with, or by the disclosure policies of an applicable major stock exchange; *provided* that the Party seeking to disclose the Confidential Information of the other Party shall (a) use all reasonable efforts to inform the other Party prior to making any such disclosures and cooperate with the other Party in seeking a protective order or other appropriate remedy (including redaction) and (b) whenever possible, request confidential treatment of such information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.2.**to obtain or maintain any regulatory approval, including to conduct preclinical studies and Clinical Studies and for Pricing Approvals, for any Product; *provided* that the disclosing Party shall take all reasonable steps to limit disclosure of the Confidential Information outside such Regulatory Authority and to otherwise maintain the confidentiality of the Confidential Information to the same extent to which it maintains its own confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.3.**to Affiliates, Sublicensees, licensees, attorneys, collaborators, vendors, consultants, lenders, commercial partners, accountants and Subcontractors under written agreements of confidentiality on terms at least as restrictive on those set forth in this Agreement, who have a need to know such information in connection with such Party performing its obligations or exercising its rights under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.4.**disclosure of this Agreement, its terms, and the status and results of exploitation of the Products (including Data, Net Sales, and milestones) to actual or *bona fide* potential investors, acquirors, (sub)licensees, lenders, and other financial or commercial partners (including in connection with any royalty financing transaction), and their respective attorneys, accountants, banks, investors, and advisors, solely for the purpose of evaluating or carrying out or complying with the terms of an actual or potential investment, acquisition, (sub)license, debt or other transaction, or collaboration; *provided* that, in each such case, on the condition that such Persons are bound by obligations of confidentiality and non-use at least as stringent as those set forth this ARTICLE 11 (Confidentiality) or otherwise customary for such type of arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Terms of this Agreement; Technology**. The Parties agree that this Agreement and the terms hereof will be considered Confidential Information of both Parties. The ADCT Technology will be considered Confidential Information of ADCT. The Sobi Technology will be considered Confidential Information of Sobi. The Joint Technology will be the Confidential Information of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.No License**. Confidential Information disclosed hereunder shall remain the property of the disclosing Party. Disclosure or receipt of Confidential Information shall not constitute any grant, option or license to the other Party, beyond those licenses expressly granted hereunder, under any patent, trade secret or other rights now or hereinafter held by the disclosing Party.

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**ARTICLE 12****<br> **PUBLICITY; PUBLICATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Publicity**. The Parties shall agree to and issue a press release announcing the transactions contemplated hereby. Neither Party shall distribute any other press release or other public communication relating to this Agreement or the substance hereof without the written consent of the other Party, except that each Party may file such further disclosures in connection herewith as may be required by the rules of the Securities and Exchange Commission, the New York Stock Exchange, Nasdaq Stockholm or other similar stock exchange, as applicable; *provided* that if a Party is required to make such a public disclosure, such Party shall submit the proposed disclosure in writing to the other Party as far in advance as reasonably practicable (and in no event less than [\*\*] Business Days prior to the anticipated date of disclosure unless such earlier disclosure is required by Applicable Law or the rules of the Securities and Exchange Commission, the New York Stock Exchange, Nasdaq Stockholm or other similar stock exchange) so as to provide a reasonable opportunity to comment thereon and shall consider such other Party's comments with respect thereto in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Publications**. Both Parties recognize that the publication or disclosure of papers, abstracts or any other written or oral presentations regarding results of and other information regarding the Products may be beneficial to both Parties; *provided* that such publications or presentations are subject to reasonable controls to protect Confidential Information, the patentability of inventions and other commercial or regulatory considerations. For the avoidance of doubt, the terms of this ARTICLE 12 (Publicity; Publications) shall not apply to patent applications filed by a Party in accordance with this Agreement. Accordingly, the following shall apply with respect to papers and presentations proposed for disclosure by either Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Publications by Sobi**. With respect to any paper or presentation proposed for disclosure by Sobi (the "**Disclosing Party**") that utilizes information generated by or on behalf of either Party relating to the Compound or Products (including any publications containing Confidential Information of ADCT), ADCT (the "**Non-Disclosing Party**") shall have the right to review any such proposed publication or presentation and Sobi shall not publish the proposed publication or present the proposed presentation without the written consent of ADCT; *provided* that ADCT may only withhold its consent if such proposed publication or presentation could reasonably be expected to materially and adversely affect the ability of ADCT to obtain or maintain regulatory approval, market clearance or have a materially negative impact on ADCT's ability to market Products outside the Sobi Territory. Sobi shall submit to ADCT a draft of the proposed publication (such as abstracts or manuscripts) or the proposed presentation (such as posters, slides, or oral presentations) at least [\*\*] days prior to the date of submission for publication or the date of presentation, as applicable. ADCT shall review such submitted materials and respond to Sobi as soon as reasonably possible, but in any case within [\*\*] days of receipt thereof. At the option of ADCT, Sobi shall (a) delete from such proposed publication or presentation any Confidential Information of ADCT and (b) delay the date of such submission for publication or the date of such presentation for a period of time sufficiently long (but in no event longer than [\*\*] days) to permit ADCT to seek appropriate patent protection. Once a publication has been approved by ADCT, then Sobi may make subsequent public disclosure of the contents of such publication without the further approval of ADCT; *provided* that such content is not presented with any new data or information or conclusions or is in a form or manner that materially alters the subject matter therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.Publications by ADCT**. ADCT may publish any paper or presentation (including posters, slides, abstracts, manuscripts, oral presentations and written descriptions thereof) relating to the Compound or Products under this Agreement upon providing notice

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thereof to Sobi at least [\*\*] days prior to the date of submission for publication or the date of presentation, as applicable, which shall include a draft of the proposed publication or the proposed presentation and compliance with the remainder of this Section 12.2.2 (Publications by ADCT). If Sobi receives a proposed publication or presentation from ADCT pursuant to the foregoing sentence, Sobi shall review the proposed publication or presentation and respond to ADCT as soon as reasonably possible, but in any case within [\*\*] days of receipt thereof, and if such proposed publication or presentation contains any data or information generated under a Co-Funded Global Study, ADCT shall consider in good faith any timely comments provided by Sobi with respect thereto. Sobi may, at its option (a) delete from such proposed publication, paper or presentation any Confidential Information of Sobi and (b) delay the date of such submission for publication or the date of such presentation for a period of time sufficiently long (but in no event longer than [\*\*] days) to permit Sobi to seek appropriate patent protection in accordance with this Agreement. For clarity, ADCT shall not be required to obtain permission from Sobi to (i) publish any paper or presentation after complying with the review procedures described in this Section 12.2.2 (Publications by ADCT) or (ii) publish any paper, presentation or data resulting from a Global Study or that otherwise does not contain any data or information that was generated solely by or on behalf of Sobi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Publications of Joint Know-How**. Notwithstanding Section 12.2.1 (Publications by Sobi) or Section 12.2.2 (Publications by ADCT), neither Party shall publish any paper or presentation (including posters, slides, abstracts, manuscripts, oral presentations and written descriptions thereof) that utilizes any Joint Know-How, without the prior written consent of the other Party, such consent not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Publication Plan**. The Parties may, through the joint medical committee, establish a publication plan setting forth the strategy, procedures, and rules governing academic, scientific, medical, and other publications and presentations for the Compound and Products. If any such plan is established, the Parties shall comply with such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.No Right to Use Names**. Except as expressly provided herein, neither Party may use in any manner the name or any trade name, symbol, logo or trademark of the other Party without such other Party's written consent.

**ARTICLE 13****<br> **REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Mutual Representations and Warranties**. Each Party represents and warrants to the other Party as of the Effective Date and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.**it is a company or corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.2.**it has the corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder, it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder, and this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, and binding obligation of such Party that is enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditors' rights generally and to general equitable principles;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.3.**Except as set forth on Schedule 13.1.3, (a) it is not a party to, and will not enter into during the Term, any agreement that would prevent it from granting the licenses and other rights granted to the other Party under this Agreement or performing its obligations under this Agreement, and that its grant of the licenses and other rights to the other Party under this Agreement, and, giving effect to any consent obtained as of the Effective Date, the exercise thereof by the other Party, are not and will not breach or conflict or be inconsistent with the terms and conditions of any other agreement by which it is bound (including, in the case of ADCT, any Pre-Existing Agreement without taking into account Section 2.7 (Pre-Existing Agreements)) and (b) ADCT's grant of the licenses to Sobi under this Agreement, after giving effect to any consent obtained as of the Effective Date, is not a breach of the MedImmune Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.4.**in the course of performing its obligations or exercising its rights under this Agreement, it shall, and shall ensure that each of its Affiliates, Sublicensees, and subcontractors, comply with all Applicable Laws, including as applicable, cGMP, GDP, GCP, and GLP standards, and shall not employ or engage any person or entity who has been debarred by any Regulatory Authority or otherwise excluded by any Governmental Authority from participating in any program sponsored or administered by a Governmental Authority, or, to such Party's knowledge, is the subject of debarment or exclusion proceedings or investigation by a Regulatory Authority or other Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.5.**it is not debarred or disqualified under the FD&C Act or comparable Applicable Laws in any country or jurisdiction other than the United States and, to its knowledge, does not, and will not during the Term knowingly, employ or use, directly or indirectly, including through Affiliates or (sub)licensees or Subcontractors, the services of any person who is debarred or disqualified, in connection with activities relating to any Product. In the event that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing services to such Party, directly or indirectly, including through Affiliates or (sub)licensees or Subcontractors, which directly or indirectly relate to activities contemplated by this Agreement, such Party shall promptly notify the other Party in writing and such Party shall cease employing, contracting with, or retaining any such person to perform any such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Representations and Warranties of ADCT**. ADCT represents and warrants to Sobi as of the Effective Date, and covenants, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.**ADCT has provided Sobi with true, complete and correct copies of all of the Pre-Existing Agreements. ADCT has obtained any necessary written consents or approvals from all licensors under the Pre-Existing Agreements to grant Sobi the licenses purported to be granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.**ADCT has not granted, and will not grant during the Term, any option, license or other right to any Third Party under the ADCT Technology that prevents Sobi from exercising the license rights granted to Sobi under Section 2.1 (Exclusive License Grant to Sobi) and Section 2.2 (Non-Exclusive License Grant to Sobi);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.**Exhibit A (ADCT Patents) includes all ADCT Patents that are Controlled by ADCT as of the Effective Date and claim the Products in the Sobi Territory (the "**Existing Patents**"). All issued Existing Patents are, to ADCT's Knowledge, valid and enforceable. The Existing Patents are either (a) solely and exclusively owned by ADCT or any of its Affiliates or are licensed by ADCT or any of its Affiliates pursuant to the Pre-Existing Agreements or (b) co-owned by ADCT and MedImmune;

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4.**the Existing Patents represent all Patents that ADCT or its Affiliates own, control or otherwise have rights to that are necessary or useful to use, Develop, Manufacture, have Manufactured, sell, offer for sale, distribute, import, export or Commercialize Product in the Sobi Territory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5.**to ADCT's Knowledge, there is no Know-How owned or otherwise controlled by ADCT or any of its Affiliates, or to which ADCT or any of its Affiliates otherwise have rights, in either case, that is related to a Product and is necessary or useful to use, Develop, Manufacture, have Manufactured, sell, offer for sale, distribute, import, export or Commercialize the Products in the Field in the Sobi Territory that is not within the ADCT Know-How;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.6.**neither ADCT nor any of its Affiliates has previously entered into any agreement, whether written or oral, pursuant to which it assigned, transferred, licensed, conveyed or otherwise encumbered its right, title or interest in or to any Patent that ADCT or its Affiliates previously owned, controlled or otherwise had rights to that would be an ADCT Patent but for such assignment, transfer, license, conveyance or encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.6.**to ADCT's Knowledge, neither ADCT nor any of its Affiliates has previously entered into any agreement, whether written or oral, pursuant to which it assigned, transferred, licensed, conveyed or otherwise encumbered its right, title or interest in or to any Know-How that ADCT or its Affiliates previously owned, controlled or otherwise had rights to that would be ADCT Know-How but for such assignment, transfer, license, conveyance or encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.7.**neither ADCT nor any of its Affiliates has received any written notice from any Third Party asserting or alleging that the Development, Manufacture or Commercialization of the Compound or Products prior to the Effective Date infringed or misappropriated the intellectual property right of such Third Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.8.**there are no pending or, to the Knowledge of ADCT, threatened (in writing), adverse actions, claims, suits or proceedings against ADCT or any of its Affiliates involving the ADCT Technology or any Compound or Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.9.**ADCT or its applicable Affiliate and, to the Knowledge of ADCT, all other parties to the Pre-Existing Agreements, are and have been in compliance with their respective obligations thereunder, without material breach or default. ADCT shall not, and shall cause its Affiliates not to, take any action or permit any omission that would reasonably be expected to give the applicable counterparty a right to terminate any Pre-Existing Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.10.**to the Knowledge of ADCT, the use or practice of the ADCT Technology by Sobi in the Sobi Territory or by ADCT as contemplated in this Agreement will not infringe any issued Patents owned or controlled by a Third Party, and ADCT has not received any written notice from a Third Party asserting or alleging any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.11.**the pending applications included in the Existing Patents are being diligently prosecuted in the respective patent offices in the Sobi Territory in accordance with Applicable Law, and all applicable and material fees and filings due prior to the Effective Date in connection with the prosecution and maintenance of Existing Patents in the Sobi Territory have been diligently completed;

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.12.**the conception, development, and reduction to practice by ADCT or its Affiliates of the inventions claimed in the Existing Patents and ADCT Know-How have not constituted or involved the misappropriation of trade secrets or other rights or property of any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.13.**to ADCT's Knowledge, no Person (a) has infringed or is infringing or threatening to infringe any Existing Patent or (b) has misappropriated or is misappropriating or threatening to misappropriate any ADCT Know-How;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.14.**ADCT has made available to Sobi, in the virtual data room hosted by Datasite with respect to the transaction contemplated by this Agreement, all material information and data regarding the safety or efficacy of any Compound or Product in its possession or Control, and all such ADCT information and data is true, complete and correct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.15.**all ADCT Know-How that is maintained as a trade secret has been kept confidential or has been disclosed to Third Parties only under terms of confidentiality. To the Knowledge of ADCT, no breach of such confidentiality with respect to such trade secrets has been committed by any Third Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.16.**neither ADCT nor any of its Affiliates, nor any of its or their respective officers, employees or agents has (a) committed an act, (b) made a statement or (c) failed to act or make a statement, in any case ((a), (b) or (c)), that (i) would be or create an untrue statement of material fact, failure to disclose a material fact, or fraudulent statement to FDA or any other Regulatory Authority with respect to any Compound or Product or (ii) could reasonably be expected to provide a basis for FDA to invoke its policy respecting "Fraud, Untrue Statements of Material Facts, Bribery and Illegal Gratuities," set forth in 56 Fed. Reg. 46191 (September 10, 1991) and any amendments thereto, or any other Regulatory Authority to take similar action under analogous laws or policies in the Sobi Territory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.17.**ADCT and its Affiliates, and their respective contractors and consultants, have conducted all Development (including the generation, preparation, maintenance and retention of Regulatory Filings) of the Compound and the Products that generated any data or information included in the MAA for the Product filed with the EMA in accordance with GLP, GCP (if applicable) and Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.18.**the following agreements listed in Section 3.6 of the MedImmune Agreement are not related to the Compound or the Products: (a) [\*\*]; (b) [\*\*]; and (c) [\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.19.**to ADCT's Knowledge, the inventions claimed by the Existing Patents and any other intellectual property with respect to any Compound or Product in the Sobi Territory were not first discovered, generated, created or conceived in connection with any research activities funded, in whole or in part, by any grants, funds, and other money received from any governmental authority resulting in a governmental authority or academic institution having any right to, ownership of (including any "step-in" or "march-in" rights with respect to), or right to royalties for, or to impose any restriction on the assignment, transfer, grant of licenses or other disposal of the Existing Patents or ADCT Know-How (including any applicable Regulatory Filings), or to impose any requirement or restriction on the exploitation of any Compound or Product as contemplated herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.20.**As of the Effective Date, no Default or Event of Default (each as defined in the Facility Agreement) has occurred and is continuing with respect to ADCT's obligations under the Facility Agreement. As used herein the "**Facility Agreement**" means [\*\*].

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Disclaimers**. EXCEPT AS OTHERWISE EXPRESSLY STATED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND WITH RESPECT TO PATENTS, KNOW-HOW, MATERIALS OR CONFIDENTIAL INFORMATION SUPPLIED BY IT TO THE OTHER PARTY HEREUNDER, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OR MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS. SOBI ACKNOWLEDGES AND AGREES THAT THE COMPOUND AND PRODUCTS ARE THE SUBJECT OF ONGOING CLINICAL RESEARCH AND DEVELOPMENT AND THAT ADCT CANNOT ASSURE THE SAFETY, USEFULNESS OF SUCCESSFUL DEVELOPMENT OR COMMERCIALIZATION OF ANY PRODUCT.

**ARTICLE 14****<br> **INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Indemnification by Sobi**. Sobi shall indemnify, defend (in accordance with Section 14.3 (Indemnification Procedure)) and hold harmless ADCT, its Affiliates, and its and their respective directors, officers, employees and agents (individually and collectively, the "**ADCT Indemnitee(s)**") from and against all losses, liabilities, damages and expenses (including reasonable attorneys' fees and costs) incurred in connection with any claims, demands, actions or other proceedings by any Third Party (individually and collectively, "**Losses**" and such claims, demands, actions or other proceedings, "**Claims**") to the extent arising from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.**the Development, Manufacture or Commercialization of the Products in the Sobi Territory by Sobi or any of its Affiliates or Sublicensees, including product liability claims relating to the Products in the Sobi Territory; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.2.**the negligence, willful misconduct or breach of this Agreement (including any representations, warranty or covenant of Sobi) by any Sobi Indemnitee;

except in each case to the extent such Losses: [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Indemnification by ADCT**. ADCT shall indemnify, defend (in accordance with Section 14.3 (Indemnification Procedure)) and hold harmless Sobi, its Affiliates, and their directors, officers, employees and agents (individually and collectively, the "**Sobi Indemnitee(s)**") from and against all Losses to the extent arising from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.**(a) the Development of the Products by ADCT or any of its Affiliates, licensees or sublicensees, (b) the Manufacture of the Products by or on behalf of ADCT for any Development or Commercialization conducted by ADCT or any of its Affiliates, licensees or sublicensees, or (c) the Commercialization of the Products in the ADCT Territory by ADCT or any of its Affiliates, licensees or sublicensees, including product liability claims relating to the Products in the ADCT Territory; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.**the negligence, willful misconduct or breach of this Agreement, the Supply Agreement or the Quality Agreement (including any representations, warranty or covenant of ADCT) by any ADCT Indemnitee;

except in each case to the extent such Losses: [\*\*].

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Indemnification Procedure**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.1.Notice of Claim**. If either Party is seeking indemnification under Section 14.1 (Indemnification by Sobi) or Section 14.2 (Indemnification by ADCT) (the "**Indemnified Party**"), it shall notify the other Party (the "**Indemnifying Party**") in writing (an "**Indemnification Claim Notice**") of the Claim giving rise to the obligation to indemnify within [\*\*] Business Days after receiving notice of the Claim (it being understood and agreed, however, that the failure or delay by an Indemnified Party to give such notice of a Claim shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually and materially prejudiced as a result of such failure or delay to give notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.2.Control of Defense**. At its option, the Indemnifying Party may assume the defense of any Claim by notifying the Indemnified Party in writing within [\*\*] days after the Indemnifying Party's receipt of an Indemnification Claim Notice. The assumption of the defense of a Claim by the Indemnifying Party shall not be construed as an acknowledgment that the Indemnifying Party is liable to indemnify any Sobi Indemnitee or ADCT Indemnitee, as applicable, in respect of such Claim, nor shall it constitute a waiver by the Indemnifying Party of any defenses it may assert against the Indemnified Party's claim for indemnification. Upon assuming the defense of a Claim, the Indemnifying Party may appoint as lead counsel in the defense of the Claim any legal counsel selected by the Indemnifying Party reasonably acceptable to the Indemnified Party. If the Indemnifying Party assumes the defense of a Claim, the Indemnified Party shall promptly deliver to the Indemnifying Party all original notices and documents (including court papers) received by any Sobi Indemnitee or ADCT Indemnitee, as applicable, in connection with such Claim. If the Indemnifying Party assumes the defense of a Claim, except as provided in Section 14.3.3 (Right to Participate in Defense), the Indemnifying Party shall not be liable to the Indemnified Party for any legal expenses subsequently incurred by such Indemnified Party or any Sobi Indemnitee or ADCT Indemnitee, as applicable, in connection with the analysis, defense or settlement of such Claim unless such legal expenses arise from activities with respect to such analysis, defense or settlement that are specifically requested in writing by the Indemnifying Party to be performed by such Sobi Indemnitee or ADCT Indemnitee (as applicable). If it is ultimately determined that the Indemnifying Party is not obligated to indemnify, defend or hold harmless a Sobi Indemnitee or ADCT Indemnitee, as applicable, from and against a Claim, the Indemnified Party shall reimburse the Indemnifying Party for any and all costs and expenses (including attorneys' fees and costs of suit) and any Losses incurred by the Indemnifying Party in its defense of such Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.3.Right to Participate in Defense**. Any Indemnified Party shall be entitled to participate in, but not control, the defense of a Claim and to employ counsel of its choice for such purpose; *provided* that such employment shall be at the Indemnified Party's sole cost and expense unless (a) the employment thereof has been specifically authorized in writing by the Indemnifying Party, (b) the Indemnifying Party has failed to assume the defense and employ counsel in accordance with Section 14.3.2 (Control of Defense) (in which case the Indemnified Party shall control the defense) or (c) the interests of the applicable Indemnified Party and any Sobi Indemnitee or ADCT Indemnitee, as applicable, on the one hand, and the Indemnifying Party, on the other hand, with respect to such Claim are sufficiently adverse to prohibit the representation by the same counsel of all such Persons under Applicable Law, ethical rules or equitable principles (in which case the Indemnifying Party shall control its defense and the Indemnified Party shall control the defense of the Sobi Indemnitees or the ADCT Indemnitees, as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.4.Settlement**. With respect to any Claim for which the Indemnifying Party has assumed the defense of such Claim in accordance with Section 14.3.2 (Control of Defense)

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

that relates solely to the payment of money damages in connection with such Claim and that will not result in any Sobi Indemnitee or ADCT Indemnitee, as applicable, becoming subject to specific performance, injunctive or other relief or monetary payment or admits any wrongdoing or guilt, and as to which the Indemnifying Party has acknowledged in writing the obligation to indemnify all Sobi Indemnitees or ADCT Indemnitees, as applicable, hereunder, the Indemnifying Party shall have the sole right to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Claim, on such terms as the Indemnifying Party, in its sole discretion, shall deem appropriate; *provided* that the Indemnifying Party may not enter into any compromise or settlement without the prior written consent of the Indemnified Party unless such compromise or settlement includes as an unconditional term thereof, the giving by each claimant or plaintiff to the Indemnified Party and all Sobi Indemnitees or ADCT Indemnitees, as applicable, a release from all liability in respect of such Claim. With respect to all other Claims for which the Indemnifying Party has assumed the defense of the Claim in accordance with Section 14.3.2 (Control of Defense), the Indemnifying Party shall have authority to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Claim; *provided* that it obtains the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed). If the Indemnifying Party has assumed the defense of a Claim in accordance with Section 14.3.2 (Control of Defense), the Indemnifying Party shall not be liable for any settlement or other disposition of such Claim by a Sobi Indemnitee or a ADCT Indemnitee, as applicable, that is reached without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed). Regardless of whether the Indemnifying Party chooses to defend any Claim, the Indemnified Party shall not, and the Indemnified Party shall ensure that each Sobi Indemnitee or ADCT Indemnitee, as applicable, does not, admit any liability with respect to, or settle, compromise or discharge, any Claim for which it has or intends to seek indemnification under Section 14.1 (Indemnification by Sobi) or Section 14.2 (Indemnification by ADCT), as applicable, without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.5.Cooperation**. Regardless of whether the Indemnifying Party chooses to defend any Claim, the Indemnified Party shall, and shall cause each Sobi Indemnitee or ADCT Indemnitee, as applicable, to cooperate in the defense thereof and shall furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection therewith. Such cooperation shall include access during normal business hours on the date(s) previously discussed in good faith by the Parties, afforded to the Indemnifying Party to, and reasonable retention by the Indemnified Party and Sobi Indemnitee or ADCT Indemnitee, as applicable, of, records and information that are reasonably relevant to such Claim and making such Sobi Indemnitees or ADCT Indemnitees, as applicable, and other employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder; *provided* that neither Party shall be required to disclose legally privileged information unless and until procedures reasonably acceptable to such Party are in place to protect such privilege, and the Indemnifying Party shall reimburse the Indemnified Party for all its reasonable and verifiable out-of-pocket expenses in connection therewith, without prejudice to the Indemnifying Party's right to contest any Sobi Indemnitee's or ADCT Indemnitee's, as applicable, right to indemnification and subject to reimbursement to the Indemnifying Party if the Indemnifying Party is ultimately held not to be obligated to indemnify a Sobi Indemnitee or a ADCT Indemnitee, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.6.Expenses**. Except as provided above, the costs and expenses, including fees and disbursements of counsel, incurred by the Indemnified Party in connection with any claim shall be reimbursed on a Calendar Quarter basis by the Indemnifying Party, without

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

prejudice to the Indemnifying Party's right to contest any Sobi Indemnitee's or ADCT Indemnitee's, as applicable, right to indemnification and subject to reimbursement to the Indemnifying Party if the Indemnifying Party is ultimately held not to be obligated to indemnify a Sobi Indemnitee or ADCT Indemnitee, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Mitigation of Loss**. Each Indemnified Party shall take and shall procure that the ADCT Indemnitees or Sobi Indemnitees, as applicable, take all such reasonable steps and action as are reasonably necessary or as the Indemnifying Party may reasonably require in order to mitigate any claims (or potential losses or damages) under this ARTICLE 14 (Indemnification). Nothing in this Agreement shall or shall be deemed to relieve either Party of any common law or other duty to mitigate any losses incurred by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Limitation of Liability**. [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Insurance**. Each Party shall procure and maintain insurance, including product liability insurance, with respect to its activities hereunder and which is consistent with normal business practices of the companies similarly situated at all times during which any Compound and Product is being clinically tested in human subjects or commercially distributed or sold in its respective Territory by such Party or its Affiliates or Sublicensees (or licensees, as the case may be) and in accordance with Applicable Law. Each Party shall provide the other Party with evidence of such insurance upon request and shall provide the other Party with written notice at least thirty (30) days prior to the cancellation, non-renewal or material adverse change in such insurance. Such insurance shall not be construed to create a limit of such Party's liability under this Agreement.

**ARTICLE 15****<br> **TERM AND TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Term**. The term of this Agreement (the "**Term**") shall commence on the Effective Date and, unless terminated earlier as set forth in this ARTICLE 15 (Term and Termination), will expire at the end of the last to expire Royalty Term for the last Product in the last country. Following the expiration (but not earlier termination) of each Royalty Term with respect to a Product in a country in the Sobi Territory, Sobi's license under Section 2.1 (Exclusive License Grant to Sobi), Section 2.2 (Non-Exclusive License Grant to Sobi) and Section 7.9.2 (Trademark License; Use) shall become non-exclusive, fully-paid, royalty-free, perpetual and irrevocable with respect to such Product in such country in the Sobi Territory. For clarity, upon the expiration of the Term, Sobi's license under Section 2.1 (Exclusive License Grant to Sobi), Section 2.2 (Non-Exclusive License Grant to Sobi) and Section 7.9.2 (Trademark License; Use) shall become non-exclusive, fully-paid, royalty-free, perpetual and irrevocable in their entirety, and, in such event, the provisions regarding use of the Product Trademark set forth in Section 7.9.2 (Trademark License; Use) shall survive such expiration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Termination for Convenience**. Sobi shall have the right to terminate this Agreement in its entirety for any or no reason upon one hundred and eighty (180) days' written notice to ADCT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.Termination for Material Breach**. Each Party (the "**Non-Breaching Party**") shall have the right to terminate this Agreement upon written notice to the other Party (the "**Breaching Party**") if such Breaching Party has materially breached a material term of this Agreement and, after receiving written notice from the Non-Breaching Party identifying such

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material breach and claiming the right to terminate, fails to cure such material breach within [\*\*] days (or, with respect to any breach of a payment obligation, [\*\*] Business Days) days from the date of such notice (the "**Cure Period**") (or, if such material breach cannot be cured within the Cure Period, if the Breaching Party commences actions to cure such breach within the Cure Period and thereafter diligently continues such actions); *provided* that if the Breaching Party initiates a dispute resolution procedure under ARTICLE 16 (Dispute Resolution) during the Cure Period to dispute the existence or materiality of the breach for which termination is being sought and is pursuing such procedure in good faith, the Cure Period shall be tolled and the termination shall become effective only if, as a result of the application of such dispute resolution procedures, the Breaching Party is determined to be in material breach of one or more material terms under this Agreement and such breach remains uncured for [\*\*] days (or, with respect to any breach of a payment obligation, [\*\*] Business Days) after such determination (or, if the material breach cannot be cured within such [\*\*]-day period, if the Breaching Party commences actions to cure such breach within such period and thereafter diligently continues such actions). Breaches of payment terms hereunder will be considered a material breach of a material term and provide the right to terminate this Agreement in its entirety. In the event that a material breach of a material term (other than a payment breach) relates solely to one country, then the non-breaching Party's right to terminate for material breach under this Section 15.2.2 (Termination for Material Breach) shall be limited to termination of the Agreement with respect to such country to which the material breach relates; *provided* that, if a material breach of a material term (other than a payment breach) relates to the Major European Countries as a whole, then the non-breaching Party's right to terminate for material breach under this Section 15.2.2 (Termination for Material Breach) will be a right to terminate this Agreement in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.Termination for Insolvency**. Each Party shall have the right to terminate this Agreement in its entirety upon written notice to the other Party if the other Party (or its parent entity) makes a general assignment for the benefit of creditors, appoints or suffers appointment of a receiver or trustee over all or substantially all of its property, files a petition under any bankruptcy or insolvency act or has any such petition filed against it that is not dismissed, discharged, bonded or stayed within [\*\*] days after the filing thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4.Termination for Patent Challenge**. ADCT may terminate this Agreement in its entirety or on a country-by-country basis by providing written notice of termination to Sobi if Sobi or any of its Affiliates or Sublicensees (individually or in association with any Person) contests or challenges, or assists a Third Party in contesting or challenging, the scope, validity or enforceability of any of the ADCT Patents anywhere in the world (including counterparts of the ADCT Patents in the ADCT Territory), in any court, tribunal, arbitration proceeding, or other proceeding (a "**Patent Challenge**"). In the event of such a Patent Challenge, ADCT will provide written notice of such Patent Challenge to Sobi, and if Sobi (a) fails to withdraw such Patent Challenge within [\*\*] after such receipt of such notice or (b) with respect to a Patent Challenge brought by a Sublicensee, if Sobi or its Affiliate, as applicable, fails to terminate the applicable sublicense for such Sublicensee within [\*\*] days after such receipt of such notice, the in either case ((a) or (b)), ADCT may terminate this Agreement by providing written notice of such termination to Sobi. As used herein, a Patent Challenge includes: (i) filing an action under 28 U.S.C. §§ 2201-2202 seeking a declaration of invalidity or unenforceability of any such Patent; (ii) filing, or joining in, a petition under 35 U.S.C. § 311 to institute *inter partes* review of any such Patent; (iii) filing, or joining in, a petition under 35 U.S.C. § 321 to institute post-grant review of any such Patent or any portion thereof; (iv) filing or commencing any opposition, nullity, or similar proceedings challenging the validity of any such Patent in any country or region; or (v) any foreign equivalent of clauses (i), (ii), (iii) or (iv), including under Applicable Law. In the event of such a Patent Challenge, Sobi will not have any of its rights to review and comment or otherwise participate or benefit in its role as licensee hereunder with

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regard to ADCT Patents that are the subjects of the Patent Challenge in accordance with ARTICLE 4 (Intellectual Property). Notwithstanding the foregoing, ADCT shall not have the right to terminate this Agreement under this Section 15.2.4 (Termination for Patent Challenge) (x) with respect to any Patent Challenge in which Sobi or its Affiliate or Sublicensee has been compelled to participate in such Patent Challenges by a court or patent office or (y) if a Patent Challenge is necessary or reasonably required to assert a cross claim or a counterclaim or to respond to a court request or order or administrative law request or order, including asserting any defense or counterclaim in, or otherwise responding to, any Patent infringement suit filed by ADCT or any of its Affiliates or (sub)licensees against Sobi or any of its Affiliates or Sublicensees with respect to the Products. In addition, ADCT shall not have the right to terminate this Agreement pursuant to this Section 15.2.4 (Termination for Patent Challenge) if any Affiliate that first becomes an Affiliate of Sobi pursuant to a Change of Control of Sobi after the Effective Date was undertaking activities in connection with a Patent Challenge prior to such Affiliate first becoming an Affiliate of Sobi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5.Termination for Material Safety Issue**. Sobi may terminate this Agreement in its entirety immediately upon written notice to ADCT if Sobi deems that such termination is necessary to protect the safety, health or welfare of patients due to Sobi's good faith belief that there is an unacceptable risk for harm in humans based upon (a) pre-clinical safety data, including data from animal toxicology studies, or (b) the observation of serious adverse events in humans after the Compound or any Product, either as a single agent or in combination with another pharmaceutical agent, has been administered to or taken by humans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.6.Full Force and Effect During Notice Period**. This Agreement will remain in full force and effect until the expiration of the applicable termination notice period; *provided* that on notice of any termination of this Agreement by Sobi pursuant to Section 15.2.2 (Termination for Material Breach), Section 15.2.3 (Termination for Insolvency) or Section 15.2.5 (Termination for Material Safety Issue), in no event shall ADCT accrue any rights to, and Sobi shall have no obligations to make any Regulatory Milestone Payment under Section 10.2.1 (Regulatory Milestone Payments) or any Sales Milestone Payment under Section 10.2.3 (Sales Milestone Payments) based on any Regulatory Milestone or Sales Milestone, as applicable, with respect to a Product that is achieved on or after the date of delivery of such termination notice *provided, further*, that if this Agreement does not ultimately terminate following such notice of termination (*e.g.*, because a material breach of a material term is cured within the Cure Period or if it is finally determined in accordance with ARTICLE 16 (Dispute Resolution) that such material breach of a material term did not occur), then any Regulatory Milestone Payment under Section 10.2.1 (Regulatory Milestone Payments) or any Sales Milestone Payment under Section 10.2.3 (Sales Milestone Payments) based on any Regulatory Milestone or Sales Milestone, as applicable, with respect to a Product that is achieved on or after the date of delivery of such termination notice will be due and payable to ADCT within [\*\*] days following the determination that this Agreement will not terminate and delivery of an invoice therefor from ADCT. For the avoidance of doubt, this Section 15.2.6 (Full Force and Effect During Notice Period) (a) shall not suspend Sobi's obligation to notify ADCT of the achievement of any Regulatory Milestone or Sales Milestone, in accordance with Section 10.2.1 (Regulatory Milestone Payments) or Section 10.2.3 (Sales Milestone Payments), as applicable, and (b) shall not affect Sobi's rights under Section 15.5 (Sobi's Rights in Lieu of Termination for ADCT Material Breach).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Effects of Termination**. In the event of termination of this Agreement by either Party for any reason:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.1.Termination of License Grants to Sobi**. The licenses granted by ADCT to Sobi hereunder shall terminate (a) in the case of termination under Section 15.2.1 (Termination for Convenience), on the last date of the applicable notice period set forth in Section 15.2.1 (Termination for Convenience) or (b) in the case of termination under Section 15.2.2 (Termination for Material Breach), Section 15.2.3 (Termination for Insolvency), Section 15.2.4 (Termination for Patent Challenge) or Section 15.2.5 (Termination for Material Safety Issue), on the effective date of termination of this Agreement (for clarity, in the case of termination under Section 15.2.2 (Termination for Material Breach), is subject to the cure period and tolling).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.2.License Back to ADCT**. Sobi, with respect to each Product, shall and hereby does, effective as of the effective date of the termination, grant to ADCT a transferable, sublicensable (through multiple tiers), non-exclusive, fully paid-up, royalty-free (a) license under the Sobi Technology (including the Sobi Agreement Technology), including any improvements thereto and (b) right of reference to all Data included in the Regulatory Filings and marketing authorizations Controlled by Sobi and to all Data Controlled by Sobi included in Regulatory Filings and marketing authorizations Controlled by Sobi, in each case ((a) and (b)), relating to the Compound and Products to the extent necessary (or, with respect to Sobi Agreement Technology, necessary or useful) for ADCT, its Affiliates and its licensees to Develop, use, sell, offer for sale, import and otherwise Commercialize the Products in the Sobi Territory. If ADCT desires to obtain an exclusive license under any Sobi Agreement Technology or right of reference under this Section 15.3.2 (License Back to ADCT), then ADCT shall notify Sobi within [\*\*] months following the effective date of termination, and the Parties shall negotiate in good faith the terms pursuant to which Sobi would grant such license or right of reference to ADCT. If the Parties are unable to reach resolution on the terms of such exclusive license or right of reference by the date that is [\*\*] months following the date of notice of ADCT's desire to obtain an exclusive license or right of reference, such terms shall be determined under the dispute resolution provisions of ARTICLE 16 (Dispute Resolution).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.3.Assignment and Transfer Obligations**. Sobi shall conduct the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Regulatory Materials and Data**. Sobi shall (and shall cause its Affiliates and Sublicensees to) use Commercially Reasonable Efforts to promptly transfer and assign to ADCT all regulatory materials (including all Regulatory Filings and Pricing Approvals) and data relating to the Development of the Products, including all Clinical Studies conducted by or on behalf of Sobi, its Affiliates and Sublicensees, and all pharmacovigilance data (including all Adverse Event databases) relating to the Products in the Sobi Territory. To the extent the transfer or assignment pursuant to the foregoing sentence is delayed or is not permitted by the applicable Regulatory Authority, Sobi will permit ADCT to cross-reference and rely upon any Regulatory Filings (including Regulatory Approvals and Pricing Approvals) filed by Sobi with respect to the Products. Sobi will execute and deliver, or will cause to be executed and delivered, to ADCT or its designee such endorsements, assignments, commitments, acknowledgements, and other documents as may be necessary to assign, convey, transfer, and deliver to ADCT or its designee all of Sobi's or its applicable Affiliate's or designee's rights, title, and interests in and to all such assigned Regulatory Filings (including Regulatory Approvals and Pricing Approvals) to ADCT, including submitting to each applicable Regulatory Authority or other Governmental Authority in the Sobi Territory a letter or other necessary documentation (with copy to ADCT) notifying such Regulatory Authority or other Governmental Authority of, or otherwise giving effect to, such transfer of ownership to ADCT. In furtherance of the assignment of Regulatory Filings (including Regulatory Approvals and Pricing Approvals) and other data pursuant to this Section 15.3.3 (Assignment and Transfer

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Obligations), Sobi will appoint ADCT as Sobi's or its Affiliate's agent for all Product-related matters involving Regulatory Authorities in the Sobi Territory until all Regulatory Filings (including Regulatory Approvals and Pricing Approvals) that are not then in ADCT's or its Affiliate's name have been assigned to ADCT or its designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Alternative Product Trademarks**. Sobi shall (and shall cause its Affiliates and Sublicensees to) promptly transfer and assign to ADCT all Alternative Product Trademarks. Sobi will assign and transfer to ADCT or its designee all of Sobi's rights, title, and interests in and to any promotional materials, training materials, medical education materials, packaging and labeling, and all other literature or other information, in each case, solely related to the Products and copyrights and any registrations for the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Inventory**. ADCT may elect to purchase from Sobi any or all inventory of the Product held by Sobi or its Affiliates or Sublicensees as of the effective date of termination at a price equal to the Manufacturing Cost paid by Sobi for such inventory; *provided* that such inventory complies with applicable specifications and has been handled and stored in compliance with Applicable Laws (including cGMP). Notwithstanding the termination of Sobi's licenses and other rights under this Agreement, Sobi shall have the right for [\*\*] after the effective date of such termination to sell or otherwise dispose of all Products then in its inventory and any in-progress inventory that are not purchased by ADCT pursuant to the foregoing sentence, subject to the terms of this Agreement as though this Agreement had not terminated, and such sale or disposition shall not constitute infringement of ADCT's or its Affiliates' Patents or other intellectual property or other proprietary rights and Sobi shall continue to make payments thereon as provided in Section 10.2.3 (Sales Milestone Payments), Section 10.2.5 (Royalty Rate) and Section 10.2.6 (Royalty Term).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**Assignment of Agreements**. If ADCT so requests, Sobi will assign to ADCT any agreement between Sobi or any of its Affiliates, on the one hand, and any Third Party, on the other hand, that solely relates to the exploitation of the Products in the Sobi Territory (including clinical trial agreements and distribution agreements) to the extent permitted under such Third Party agreement (and will use reasonable efforts to seek any consent required from the applicable Third Party in connection with such an assignment; *provided* that neither Sobi nor any of its Affiliates shall be required to make any payments or agree to any material undertakings in connection therewith); *provided* that ADCT shall assume in writing all obligations of Sobi or its Affiliate under such Third Party agreements so assigned. If such Third Party agreement cannot be assigned to ADCT, then upon ADCT's reasonable request, Sobi will maintain such Third Party agreement and ADCT will pay to Sobi [\*\*] of all payments due to the applicable Third Party that are related to the Products in the Sobi Territory under any such Third Party agreement in consideration of the sublicense or services rendered, as applicable, to ADCT and ADCT shall be responsible for all the losses, taxes, liabilities or obligations under such agreement to the extent applicable to the benefits provided to ADCT under such agreement. In the event that the Parties must negotiate for an amendment to the applicable Third Party agreement in order to assign such Third Party agreement to ADCT under this Section 15.3.3(d) (Assignment of Agreements), the Parties will discuss in good faith and cooperate with respect to such negotiation, and ADCT will pay for Sobi's reasonable out-of-pocket costs incurred in connection with such negotiation and amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**Return or Destruction of Confidential Information**. At the disclosing Party's election, the receiving Party will return (at disclosing Party's expense) or destroy all tangible materials comprising, bearing, or containing any Confidential Information of the Disclosing Party relating to the Compound or Products that are in the receiving Party's or its Affiliates' or Sublicensees' possession or control and provide written certification of such

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destruction (except to the extent any information is the Confidential Information of both Parties or to the extent that the receiving Party has the continuing right to use the Confidential Information under this Agreement); *provided* that the receiving Party may retain one copy of such Confidential Information for its legal archives (subject to the obligations of confidentiality under ARTICLE 11 (Confidentiality)). Notwithstanding any provision to the contrary set forth in this Agreement, the receiving Party will not be required to destroy electronic files containing such Confidential Information that are made in the ordinary course of its business information back-up procedures pursuant to its electronic record retention and destruction practices that apply to its own general electronic files and information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.4.Transition**. Upon notice by either Party of its intent to terminate this Agreement for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Parties shall negotiate in good faith and, as soon as reasonably practical, enter into a transition services agreement, under which Sobi shall, for at least [\*\*] months following the effective date of termination, provide such reasonable assistance as is necessary to transition to ADCT or its designee all then-existing agreements and relationships relating to the Products in the Sobi Territory, with the objective of ensuring continuity of the supply of Product to existing patients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)With regard to any Clinical Study with respect to the Product then being conducted by or on behalf of Sobi or any of its Affiliates in the Sobi Territory, Sobi shall transfer control of such Clinical Study to ADCT or its designee as promptly as practicable and ADCT shall take all actions necessary to facilitate such prompt transfer of control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.5.JSC Coordination; Cooperation**. The JSC shall coordinate the wind-down of Sobi's activities set forth in Section 15.3.4 (Transition), including determination of the duration of the transition period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.3.ADCT Territory License**. If as of the effective date of termination of this Agreement the ADCT Territory License is non-exclusive (*i.e.*, the Parties have not agreed on the terms pursuant to which it would be converted to an exclusive license pursuant to Section 2.3 (License Grant to ADCT)), then ADCT shall notify Sobi within [\*\*] months following the effective date of termination of its desire to convert the ADCT Territory License into an exclusive license, and the Parties shall negotiate in good faith the financial terms pursuant to which the ADCT Territory License would continue as an exclusive license after such effective date of termination. If the Parties are unable to reach resolution on the terms of such exclusive license or right of reference by the date that is [\*\*] months following the date of notice of ADCT's desire to obtain an exclusive license, such terms shall be determined under the dispute resolution provisions of ARTICLE 16 (Dispute Resolution). For clarity, the ADCT Territory License will survive termination as a non-exclusive license whether or not ADCT has elected to convert the ADCT Territory License into an exclusive license before or after termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.4.Joint Patents and Joint Know-How**. From and after the effective date of termination of this Agreement, each Party shall have the right to practice and exploit the Joint Patents and Joint Know-How, with full rights to license its interest therein worldwide and without any duty of accounting to or any duty to seek consent from the other Party, but subject to the licenses in this Section 15.3 (Effects of Termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.5.Costs of Post-Termination Transition Activities**. In the event of termination by Sobi under Section 15.2.1 (Termination for Convenience) or Section 15.2.5 (Termination for Material Safety Issue) or by ADCT under Section 15.2.2 (Termination for

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Material Breach), Section 15.2.3 (Termination for Insolvency) or Section 15.2.4 (Termination for Patent Challenge), the foregoing post-termination activities set forth in this Section 15.3 (Effects of Termination) shall be conducted at Sobi's sole cost and expense unless otherwise provided in this Section 15.3 (Effects of Termination). In the event of termination by Sobi under Section 15.2.2 (Termination for Material Breach) or Section 15.2.3 (Termination for Insolvency), the foregoing post-termination activities set forth in this Section 15.3 (Effects of Termination) shall be conducted at ADCT's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Country-by-Country Termination**.&nbsp;&nbsp;&nbsp;&nbsp; For clarity, in the event that this Agreement has been terminated with respect to a particular country (such country, a "**Terminated Country**") (and not this Agreement in its entirety) to the extent permitted hereunder, notwithstanding anything to the contrary herein, such Terminated Country shall no longer be deemed a part of the Territory as of the effective date of such termination and the provisions set forth in Section 15.3 (Effects of Termination) shall only apply with respect to such Terminated Country. For clarity, in the event that this Agreement is terminated in its entirety, the entire Territory shall be deemed to be the Terminated Countries, and the provisions set forth in this Section 15.3 (Effects of Termination) shall apply to such Terminated Countries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Sobi's Rights In Lieu of Termination for ADCT Material Breach**. In the event that Sobi has the right to terminate this Agreement in its entirety for ADCT's uncured material breach pursuant to Section 15.2.2 (Termination for Material Breach) (as such material breach of a material term may be finally determined in accordance with ARTICLE 16 (Dispute Resolution)), then, within [\*\*] following the expiration of the relevant Cure Period, Sobi may, by written notice to ADCT, elect (in its sole discretion) to continue this Agreement as modified by Exhibit C (Sobi's Rights In Lieu of Termination for ADCT Material Breach), in which case, effective as of the date Sobi delivers such notice of such election to ADCT the terms set forth on Exhibit C will apply; *provided* that Sobi shall only have the right to make such election once.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Survival**. Expiration or termination of this Agreement shall not relieve the Parties of any representation, warranty, or obligation accruing prior to such expiration or termination. Without limiting the foregoing, the following provisions shall survive the termination or expiration of this Agreement for any reason: the second and fifth sentences of Section 2.3 (License Grant to ADCT); the second sentence of Section 2.7 (Pre-Existing Agreements); first sentence of Section 2.10 (Reservation of Rights); Section 2.11 (Combination Products Rights); Section 2.13 (Rights in Bankruptcy); Section 2.14 (Right of Reference) (expiration only); Section 3.1 (Joint Steering Committee) through Section 3.4 (Expenses) (termination only, solely with respect to the JSC and for the duration required for the JSC to coordinate the wind-down activities under Section 15.3.5 (JSC Coordination; Cooperation)); Section 4.1.1 (Background Intellectual Property) through Section 4.1.5 (Inventorship); first sentence of Section 4.8 (Data Ownership); Section 5.3.4 (Co-Funding Cap) (solely with respect to any outstanding payment obligations of Sobi with respect to Sobi Global Study Cost Contribution); Section 5.3.6 (Safety Data Exception) (expiration only); last sentence of Section 5.3.7 (Pre-Existing Data) (expiration only); last sentence of Section 6.2 (Transfer of Regulatory Filings) (expiration only); Section 6.6 (Safety; Adverse Event Reporting) (expiration only); the last two sentences of Section 7.9.1 (Product Trademark); Section 8.5 (Supply by Sobi) (expiration only, for the duration of any outstanding technology transfer obligations in accordance with its terms); Section 10.2.7 (Royalty Adjustments) (solely with respect to any outstanding royalty payment obligations under Section 10.2.5 (Royalty Rate)); Section 10.2.8 (Royalty Reports and Royalty Payments) (solely with respect to Sobi's reporting obligations for Net Sales in the last Calendar Quarter of the Term); Section 10.3.1 (Manufacturing Costs) (solely with respect to any outstanding payment obligations with respect to Manufacturing Cost and other costs incurred during the Term as set forth in the Supply Agreement); Section 10.3.2

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(Reimbursement of the Sobi Global Study Cost Contribution) (solely with respect to any Direct Development Costs incurred during the last Calendar Quarter to the extent not previously reported or invoiced); Section 10.3.3 (Reimbursement of the Sobi Territory-Specific Costs) (solely with respect to any Direct Development Costs incurred during the last two (2) Calendar Quarters of the Term, to the extent not previously reported or invoiced); Section 10.3.5 (Other Reimbursements) (solely with respect to any outstanding payment obligations accrued prior to the end of the Term); Section 10.4 (Payment of Invoices; Disputes) through to Section 10.7 (Taxes) (solely with respect to any outstanding payment obligations under this Agreement); Section 10.8 (Records; Audits) (solely with respect to records for the last three (3) Calendar Years of the Term and for a period of three (3) years from the end of the Calendar Year concerning such records); Section 12.1 (Publicity); Section 12.5 (No Rights to Use Names); Section 13.3 (Disclaimers); Section 14.1 (Indemnification by Sobi) through Section 14.5 (Limitation of Liability); Section 15.1 (Term); Section 15.3 (Effects of Termination); Section 15.4 (Country-by-Country Termination); this Section 15.6 (Survival); Section 15.7 (Post-Expiration Supply) (expiration only); Section 17.1 (Governing Law); Section 17.2 (Performance Through Affiliates); Section 17.4 (Notices); Section 17.5 (Assignment); Section 17.7 (Independent Contractors) through Section 17.17 (Counterparts); ARTICLE 11 (Confidentiality) (for the duration set forth in Section 11.1 (Non-Use and Non-Disclosure)) and ARTICLE 16 (Dispute Resolution) and any other provisions that by their nature survive termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Post-Expiration Supply**. If, as of the [\*\*] day prior to the anticipated expiration of this Agreement, (a) Sobi has not requested a Manufacturing technology transfer pursuant to Section 8.5 (Supply by Sobi), or (b) Sobi has requested the Manufacturing technology transfer in accordance with Section 8.5 (Supply by Sobi) but the Transfer Completion has not occurred, in each case ((a) or (b)), then, upon Sobi's request (to be provided at least [\*\*] days prior to such anticipated effective date of expiration), the Parties shall negotiate in good faith the financial terms pursuant to which ADCT would continue to supply the Products to Sobi under the Supply Agreement for use in the Development of, Medical Affairs Activities for, and Commercialization of, the Products in the Field in the Sobi Territory; *provided* that if such Transfer Completion has not occurred as of the effective date of expiration due to ADCT's breach of its obligations under Section 8.5 (Supply by Sobi), then such post-expiration supply shall be at the Manufacturing Cost plus [\*\*] until the Transfer Completion has occurred. If the Parties are unable to reach resolution on such financial terms by the date that is [\*\*] days following the date of Sobi's request to negotiate such terms, (x) such terms shall be determined under the dispute resolution provisions of ARTICLE 16 (Dispute Resolution) and (y) during the pendency of such dispute resolution ADCT shall continue to supply the Products to Sobi at the Manufacturing Cost plus [\*\*], subject to any necessary reconciliation once such financial terms have been finally determined under the dispute resolution provisions of ARTICLE 16 (Dispute Resolution).

**ARTICLE 16****<br> **DISPUTE RESOLUTIO**N

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Disputes**. Except for the disputes at the JSC, which matters shall be resolved as provided in Section 3.3 (JSC Decision-Making) or as otherwise provided in this Agreement, with respect to all disputes arising between the Parties arising out of or relating to this Agreement, including any alleged failure to perform, or breach, of this Agreement, or any issue relating to the interpretation or application of this Agreement, or any question regarding its existence, validity or termination, the Parties shall be obligated to provide each other written notice of such a dispute. Upon provision of such written notice, the Parties shall use their reasonable efforts to resolve the dispute by negotiation. If the Parties are unable to resolve such dispute within [\*\*]

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days after written notice, the Parties shall, within [\*\*] days after such notice is received, refer such dispute to the Executive Officers for attempted resolution by negotiations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Binding Arbitration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1.Arbitration Procedure**. If the Executive Officers are not able to resolve a dispute referred to them under Section 16.1 (Disputes) within [\*\*] days after notice of such dispute is received by the Executive Officers (or such longer period as mutually agreed to by the Executive Officers), then such dispute shall be resolved through binding arbitration, which arbitration may be initiated by either Party at any time after the conclusion of such period. The arbitration shall be made in accordance with the Rules of arbitration of the International Chamber of Commerce (ICC) in force on the date when the notice of arbitration is submitted. The arbitral proceedings shall be conducted in the English language under the laws of the State of New York, USA. The number of arbitrators shall be three (3). Each Party shall nominate one (1) arbitrator, and the two (2) arbitrators so nominated shall nominate a third (3rd) arbitrator, who shall act as the chairperson. The arbitration shall take place in London, United Kingdom. The arbitrators shall have no authority to award punitive or any other non-compensatory damages. The arbitral award shall be final and binding upon the Parties. The cost of arbitration, including expenses for arbitrators, shall be borne by each Party unless otherwise provided by the arbitral award. Judgment upon the arbitral award may be entered in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2.Interim Equitable Relief**. Notwithstanding anything herein to the contrary, in the event that a Party reasonably requires relief on a more expedited basis than would be possible pursuant to the procedure set forth in this ARTICLE 16 (Dispute Resolution), such Party may seek a temporary injunction or other interim equitable relief in a court of competent jurisdiction pending the ability of the arbitrators to review the decision under this ARTICLE 16 (Dispute Resolution). Such court shall have no jurisdiction or ability to resolve disputes beyond the specific issue of temporary or other interim equitable relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3.Protective Orders; Arbitrability**. At the request of either Party, the arbitrators shall enter an appropriate protective order to maintain the confidentiality of information produced or exchanged in the course of the arbitration proceedings. The arbitrators shall have the power to decide all questions of arbitrability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4.Patent and Trademark Dispute Resolution**. Notwithstanding the provisions of this ARTICLE 16 (Dispute Resolution), any dispute not resolved internally by the Parties that involves the validity or infringement of a Patent claiming a Compound or Product that is issued in a particular country shall be brought before an appropriate regulatory or administrative body or court in that country, in accordance with the relevant country's patent laws, and the Parties hereby consent to such venue and the jurisdiction of such courts and bodies; *provided*, *however*, that such disputes are also arbitrable under this ARTICLE 16 (Dispute Resolution).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.6.Continued Performance**. Provided that this Agreement has not terminated, the Parties agree to continue performing under this Agreement in accordance with its provisions, pending the final resolution of any dispute.

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

**ARTICLE 17****<br> **MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.Governing Law**. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, USA, without reference to principles of conflicts of laws. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.Performance Through Affiliates**. Each Party may discharge any obligation and exercise any right hereunder through any of its Affiliates (without an assignment of this Agreement), subject to Section 2.4 (Sublicenses). Each Party shall remain directly liable to the other Party with respect to the performance of any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.Force Majeure**. Neither Party shall be held liable to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in performing any obligation under this Agreement to the extent such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, potentially including embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions, strikes, lockouts, quarantine, or other labor disturbances, fire, floods, earthquakes, pandemics, or other acts of God, or acts, generally applicable action or inaction by any Governmental Authority (but excluding any government action or inaction that is specific to such Party, its Affiliates or Sublicensees, such as revocation or non-renewal of such Party's license to conduct business). The affected Party shall notify the other Party in writing of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake and continue diligently all reasonable efforts necessary to cure such force majeure circumstances or to perform its obligations in spite of the ongoing circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.Notices**. Except as otherwise expressly provided in this Agreement, any notice required under this Agreement shall be in writing and shall specifically refer to this Agreement. Notices shall be sent via one of the following means and will be effective (a) on the date of delivery, if delivered in person, (b) on the date of receipt, if sent by private express courier or by first class certified mail, return receipt requested or (c) on the date when the confirmation of receipt of the other Party is sent by email, if sent by email to the correct email address. Notices shall be sent to the other Party at the addresses set forth below. Either Party may change its addresses for notice by sending written notice to the other Party.

**If to Sobi:**

[\*\*]

With a copy to:

[\*\*]

**If to ADCT:** &nbsp;&nbsp;&nbsp;&nbsp;

[\*\*]

With a copy to:

[\*\*]

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.Assignment**. Neither this Agreement nor any obligation of a Party hereunder may be assigned by either Party without the prior written consent of the other Party; *provided*, *however*, that either Party may, without the other Party's written consent, assign this Agreement and its rights and obligations hereunder in its entirety to (a) any of its Affiliates, (b) any purchaser of all, or substantially all, of its assets to which this Agreement relates (which, with respect to ADCT, must include rights under the Pre-Existing Agreements with respect to the Products insofar as they concern the subject matter of this Agreement), (c) any successor corporation resulting from any merger, consolidation, share exchange, or other similar transaction; *provided* that any such successor corporation shall assume all obligations of its assignor under this Agreement and *provided*, *further*, that either Party may assign or sell its rights to receive any amounts due hereunder (and the other Party shall cooperate reasonably with such Party in connection therewith) or (d) with respect to ADCT, in connection with its obligations to its lender, DEERFIELD PARTNERS, L.P. This Agreement will inure to the benefit of Sobi and ADCT and their respective successors and permitted assigns. Any assignment of this Agreement that is not made in accordance with this Section 17.5 (Assignment) shall be null and void and of no legal force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.Anti-Corruption Law Compliance**. Each Party acknowledges that it is aware of, and agrees to abide by, the obligations imposed by Applicable Laws relating to the payment or transfer of anything of value to governments, government officials, political parties or political party officials (or relatives or associates of such officials) (each, a "**Covered Person**") for the purpose of obtaining or retaining business for or with, or directing business to, any person. Such laws include the U.S. Foreign Corrupt Practices Act, UK Bribery Act of 2010, OECD Anti-Bribery Convention, and other anti-corruption or anti-bribery laws now in effect or as may come into effect from time to time during the Term (collectively, "**Anti-Corruption Laws**"). By signing this Agreement, each Party represents, warrants and covenants (as applicable) to the other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.1.**it is familiar with the provisions and restrictions contained in the Anti-Corruption Laws applicable to it as now in effect and will familiarize itself with any changes or additions thereto as may be enacted or promulgated following the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.2.**it shall at all times comply with the Anti-Corruption Laws applicable to it and shall put in place practices, policies and procedures designed to ensure such compliance and to identify any incident of non-compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.3.**it shall notify the other Party immediately upon becoming aware of any breach of, or failure to comply with, any Anti-Corruption Law applicable to it, in connection with the performance of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.4.**it shall not, in the course of its duties under this Agreement, offer, promise, give, demand, seek or accept, directly or indirectly, any gift or payment, consideration or benefit in kind to any Covered Person that would or could be construed as an illegal or corrupt practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.5.**it is not a Covered Person or not acting on behalf of any Covered Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.6.**it shall immediately notify the other Party of any attempt by any Covered Person to directly or indirectly solicit, ask for, or attempt to extort anything of value from it, its Affiliates or Sublicensees, and shall refuse any such solicitation, request or extortionate demand.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.Independent Contractors**. The Parties are independent contractors, and nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture, employment, franchise, agency or fiduciary relationship between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.Entire Agreement; Amendments**. This Agreement, together with the Exhibits and Schedules hereto, contains the entire understanding of the Parties with respect to the licenses granted herein. Notwithstanding the foregoing, the Parties may enter into agreements as contemplated herein and those agreements shall be exceptions to this Section 17.8 (Entire Agreement; Amendments). Any other express or implied agreements and understandings, negotiations, writings and commitments, either oral or written, in respect to the collaboration and the licenses granted hereunder are superseded by the terms of this Agreement. The Exhibits to this Agreement are incorporated herein by reference and shall be deemed a part of this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by authorized representative(s) of both Parties hereto. The Parties agree that, effective as of the Effective Date, the Confidentiality Agreement shall be superseded by this Agreement, and that disclosures made prior to the Effective Date shall be subject to the confidentiality and non-use provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.Cumulative Remedies**. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law except as otherwise agreed to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10.Amendment; Waiver**. Except as otherwise expressly provided herein, no alteration of or modification to this Agreement shall be effective unless made in writing and executed by an authorized representative of each Party. No course of dealing or failing of either Party to strictly enforce any term, right or condition of this Agreement in any instance shall be construed as a general waiver or relinquishment of such term, right or condition. The observance of any provision of this Agreement may be waived (either generally or any given instance and either retroactively or prospectively) only with the written consent of the Party granting such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11.Business Day Requirements**. In the event that any notice or other action or omission is required to be taken by a Party under this Agreement on a day that is not a Business Day then such notice or other action or omission shall be deemed to be required to be taken on the next occurring Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12.Further Assurances**. Upon the other Party's request, each Party agrees to execute, acknowledge, and deliver such further instruments, and to do all such other acts, as may be reasonably agreed by the Parties as necessary or appropriate to carry out the purposes and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13.Severability**. The Parties do not intend to violate any public policy or statutory or common law. However, if any sentence, paragraph, clause or combination of this Agreement is in violation of any law or is found to be otherwise unenforceable, such sentence, paragraph, clause or combination of the same shall be deleted and the remainder of this Agreement shall remain binding; *provided* that such deletion does not alter the basic purpose and structure of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.14.Construction**. The Parties mutually acknowledge that they and their attorneys have participated in the negotiation and preparation of this Agreement. Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have drafted this Agreement or authorized the ambiguous provision.

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.15.Language; Translations**. This Agreement is in the English language only, which language will be controlling in all respects, and all versions hereof in any other language will be for accommodation only and will not be binding upon the Parties. All communications and notices to be made or given by one Party to the other pursuant to this Agreement, and any dispute proceeding related to or arising hereunder, will be in the English language. If there is a discrepancy between any translation of this Agreement and any non-English translation of this Agreement, this Agreement will prevail. If the original of any Data or study reports are in a language other than English, then Sobi will provide the original version and an English translation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.16.Interpretation**. The captions and headings to this Agreement are for convenience only and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. Except where the context expressly requires otherwise, (a) the use of any gender herein will be deemed to encompass references to either or both genders, and the use of the singular will be deemed to include the plural (and vice versa), (b) the words "include," "includes," and "including" will be deemed to be followed by the phrase "without limitation," (c) the word "will" will be construed to have the same meaning and effect as the word "shall," (d) any definition of or reference to any agreement, instrument, or other document herein will be construed as referring to such agreement, instrument, or other document as from time to time amended, supplemented, or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (e) any reference herein to any person will be construed to include the person's successors and assigns, (f) the words "herein," "hereof," and "hereunder" and words of similar import, will each be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Articles, Sections, Schedules, or Exhibits will be construed to refer to Articles, Sections, Schedules, or Exhibits of this Agreement, and references to this Agreement include all Schedules hereto, (h) the word "notice" means notice in writing (whether or not specifically stated) and will include notices, consents, approvals and other written communications contemplated under this Agreement, (i) provisions that require that a Party, the Parties or any committee hereunder "agree," "consent," "approve," or the like will require that such agreement, consent, or approval be specific and in writing, whether by written agreement, letter, approved minutes, or otherwise (but excluding e-mail and instant messaging), (j) references to any specific law, rule or regulation, or Section or other division thereof, will be deemed to include the then-current amendments thereto or any replacement or successor law, rule or regulation thereof, and (k) the term "or" will be interpreted in the inclusive sense commonly associated with the term "and/or."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.17.Counterparts**. This Agreement may be executed in two (2) or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. This Agreement may be executed and delivered electronically or by facsimile and upon such delivery such electronic or facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other Party. For purposes hereof, an electronic or facsimile copy of this Agreement, including the signature pages hereto, will be deemed to be an original. Notwithstanding the foregoing, the Parties shall deliver original execution copies of this Agreement to one another as soon as practicable following execution thereof.

**[Signature page follows – the rest of this page intentionally left blank.]**

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**IN WITNESS WHEREOF**, the Parties have executed this Agreement by their respective officers hereunto duly authorized.

**ADC Therapeutics SA**<br>By: /s/ Ameet Mallik <br>Name: Ameet Mallik<br>Title: Chief Executive Officer<br>

[Signature Page to License Agreement]&nbsp;&nbsp;&nbsp;&nbsp;

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**IN WITNESS WHEREOF**, the Parties have executed this Agreement by their respective officers hereunto duly authorized.

**Swedish Orphan Biovitrum AB (publ)**<br>By: /s/ Guido Oelkers<br>Name: Guido Oelkers<br>Title: Chief Executive Officer<br>

[Signature Page to License Agreement]&nbsp;&nbsp;&nbsp;&nbsp;

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**Certain confidential information contained in this document, marked by [\*\*], has been omitted because ADC Therapeutics SA has determined that the information (i) is not material and (ii) is customarily and actually treated by ADC Therapeutics as private or confidential.**

**IN WITNESS WHEREOF**, the Parties have executed this Agreement by their respective officers hereunto duly authorized.

<br>**Swedish Orphan Biovitrum AB (publ)**<br>By: /s/ Torbjörn Hallberg<br>Name: Torbjörn Hallberg<br>Title: Senior Vice President, Global General Counsel & Chief HR Officer<br>

[Signature Page to License Agreement]&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ameet Mallik, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 20-F of ADC Therapeutics SA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: | March 15, 2023 | <u>/s/ Ameet Mallik</u><br>Ameet Mallik<br>Chief Executive Officer |

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## Exhibit 12.2

**Exhibit 12.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Jose Carmona, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 20-F of ADC Therapeutics SA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 15, 2023 | <u>/s/ Jose Carmona</u><br>Jose Carmona<br>Chief Financial Officer |

---

## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

The certification set forth below is being submitted in connection with ADC Therapeutics SA's annual report on Form 20-F for the year ended December 31, 2022 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code.

I, Ameet Mallik, the Chief Executive Officer of ADC Therapeutics SA, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of ADC Therapeutics SA.

---

| | | |
|:---|:---|:---|
| Date: | March 15, 2023 | <u>/s/ Ameet Mallik</u><br>Ameet Mallik<br>Chief Executive Officer |

---

## Exhibit 13.2

**Exhibit 13.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

The certification set forth below is being submitted in connection with ADC Therapeutics SA's annual report on Form 20-F for the year ended December 31, 2022 (the "Report") for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code.

I, Jose Carmona, the Chief Financial Officer of ADC Therapeutics SA, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of ADC Therapeutics SA.

---

| | | |
|:---|:---|:---|
| Date: | March 15, 2023 | <u>/s/ Jose Carmona</u><br>Jose Carmona<br>Chief Financial Officer |

---

## Exhibit 15.1

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the Registration Statements on Form F-3 (No. 333-256807, No. 333-267293 and No. 333-267295) and Form S-8 (No. 333-238287, No. 333-255831 and No. 333-265917) of ADC Therapeutics SA of our report dated March 15, 2023 relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 20-F.

/s/ PricewaterhouseCoopers SA

Lausanne, Switzerland

March 15, 2023

<br>