Restructuring, impairment, and other related costs

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring, impairment, and other related costs

Restructuring, impairment and other related costs

On June 11, 2025, the Board of Directors approved a strategic reprioritization and restructuring plan (the “2025 Restructuring”) to focus resources on ZYNLONTA® (loncastuximab tesirine-lpyl) expansion opportunities and the advancement of its PSMA-targeting ADC. The Company is discontinuing early development efforts for the remaining preclinical programs in solid tumors. In connection with the 2025 Restructuring, the Company is in the process of shutting down its UK research and development facility, and has reduced its global workforce across functions by approximately 30%.

In connection with the 2025 Restructuring, the Company reported the following costs in restructuring, impairment and other related costs:


(in thousands)	Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025
Severance and benefit expense (reversal)	$	(450)	$	6,228
Impairment of long-lived assets and prepaid expenses, and other related costs	827		7,240

Total restructuring, impairment and other related costs	$	377	$	13,468

Severance and benefit expense

Employees affected by the reduction in force under the 2025 Restructuring are entitled to receive severance payments, continuing healthcare benefits and other employee-related costs. Costs associated with one-time termination benefits were recorded pursuant to ASC 420, while costs associated with ongoing benefit arrangements were recorded pursuant to ASC 712. As a result, the Company recorded $6.2 million to Restructuring, impairment and other related costs in the Company’s unaudited condensed consolidated statements of operations during the nine months ended September 30, 2025, of which $3.4 million was paid as of September 30, 2025. The remaining $2.8 million not paid as of September 30, 2025 was accrued in Accrued expenses and other current liabilities in the Company’s unaudited condensed consolidated balance sheet and the Company expects to pay the remainder of the restructuring costs by the first quarter of 2026.

Impairment of long-lived assets and prepaid expenses and other related costs

As a result of the 2025 Restructuring, the Company recognized impairment losses of $6.4 million during the second quarter of 2025, which included $5.4 million recorded to the long-lived asset group associated with the UK facility and $1.0 million recorded to prepaid expenses in the UK. The long-lived asset group associated with the UK facility lease, included the right-of-use asset, leasehold improvements, lab equipment and furniture and fixtures. The $5.4 million recognized as impairment losses on the long-lived asset group were allocated to the various assets within the long-lived asset group based on their relative carrying values and consisted of $0.4 million recorded to right-of-use asset, $2.7 million recorded to leasehold improvements, $2.1 million recorded to lab equipment and $0.2 million recorded to furniture and fixtures.

Furthermore, as a result of the 2025 Restructuring, and in accordance with the UK facility lease agreement, the Company notified the landlord of its intention to terminate the lease. In accordance with the lease terms, the landlord may require the Company to return the leased space to its original condition upon termination of the lease agreement, including the removal of the Company’s leasehold improvements. The Company is in negotiations with the landlord to determine the specific works to be removed or restored, if any, and for the three and nine months ended September 30, 2025, amounts are reasonably estimable and a liability of $0.8 million was recorded.