SCHEDULE: Redmile Group Maintains 9.9% Stake in ADC Therapeutics

Redmile Group, LLC and Jeremy C. Green report a 9.9% beneficial ownership stake in ADC Therapeutics SA, including shares held through private investment vehicles and warrants.

Summary

• Redmile Group, LLC, along with its principal Jeremy C. Green, has disclosed a 9.9% ownership stake in ADC Therapeutics SA as of April 6, 2026.
• The position consists of 12,681,731 common shares and 11,110 shares obtainable through the exercise of warrants.
• Total potential ownership is currently capped by a 9.99% beneficial ownership blocker, despite the group holding warrants for an additional 27,743,685 shares.
• RedCo II Master Fund, L.P., a specific fund under Redmile management, holds a direct 8.1% stake in the company.
• The calculation is based on 127,044,356 outstanding shares as of March 2, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a sign of stability, as a major institutional investor is maintaining a significant near-10% stake in the company.

Positives

• Continued institutional support from a major healthcare-focused investment firm.
• Significant potential upside through warrants for over 27 million additional shares if the company performs well.
• Stability in the shareholder base with a major investor maintaining a near-10% position.

Negatives

• The ownership is strictly passive, meaning the investor does not intend to influence corporate control or strategy.
• The 9.99% blocker limits the immediate voting power and conversion of warrants into common stock.

Risks

• The 9.99% ownership limit may restrict the investor's ability to provide further capital without triggering regulatory or contractual hurdles.
• Market volatility could affect the value of the common shares held by the reporting persons.
• The investor has the right to change the 9.99% ownership limitation upon 61 days' notice, which could lead to sudden changes in ownership structure.

Future Outlook

The reporting persons maintain a passive investment stance, indicating they do not currently seek to change or influence control of ADC Therapeutics. Future activity will likely be governed by the 9.99% ownership blocker unless a 61-day notice is provided to the issuer.

Management Comments

• 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.

Industry Context

StockSavvy.ai notes that significant stakes by specialized healthcare investors like Redmile Group often signal confidence in a biotech company's pipeline or commercial prospects, particularly in the oncology space where ADC Therapeutics operates.

Comparison to Industry Standards

• Redmile's 9.9% stake is a standard threshold for institutional investors seeking to avoid 'insider' status under Section 16 of the Exchange Act.
• The use of pre-funded warrants with ownership blockers is a common structure in biotech private placements to manage regulatory caps while maintaining long-term upside.

Stakeholder Impact

• Shareholders may see this as a vote of confidence from a sophisticated healthcare investor.
• The market may monitor the 9.9% threshold as a ceiling for Redmile's immediate buying activity.

Next Steps

• Monitoring for any changes in the 9.99% ownership blocker notice which requires a 61-day notice period.

Key Dates

Recommendation

The filing indicates a stable, passive institutional holding. Without new clinical data or financial results, the maintenance of this stake suggests a hold position for existing investors as it confirms institutional support without signaling an aggressive new accumulation or exit.

Keywords

ADC Therapeutics, Redmile Group, Schedule 13G, Institutional Ownership, Biotechnology, Warrants, Jeremy C. Green, Passive Investment