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Adaptive Biotechnologies Reports First Quarter 2022 Financial Results

·10 min read
Adaptive Biotechnologies
Adaptive Biotechnologies

SEATTLE, May 04, 2022 (GLOBE NEWSWIRE) -- Adaptive Biotechnologies Corporation (“Adaptive Biotechnologies”) (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, today reported financial results for the quarter ended March 31, 2022.

“We started the year strong and completed a strategic reorganization of our company around two key business areas: MRD and Immune Medicine,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “I am encouraged by the solid momentum across both business areas as we optimize our resource allocation to capitalize on the multiple opportunities ahead.”

Recent Highlights

  • Revenue of $38.6 million for the first quarter 2022, representing a 0.5% increase from the first quarter 2021.

  • clonoSEQ test volume in the first quarter 2022 grew 45% versus the first quarter of prior year and 12% over the fourth quarter of 2021.

  • Signed expanded MRD pan-portfolio agreement with major partner in MM and CLL for the use of MRD status as a clinical endpoint.

  • Recognized $3.0 million in MRD regulatory milestone revenue resulting from a biopharmaceutical partner who used data from our MRD assay to support its drug approval.

  • Completed analysis from immuneSense Lyme blinded data from 990 participants, confirming T-Detect Lyme is nearly twice as sensitive as the current standard of care (54% T-Detect Lyme vs 30% STTT sensitivity, both at 99% specificity). T-Detect Lyme offering to be made available during 2022 Lyme season.

  • Entered a new T-MAP collaboration with the Janssen Pharmaceutical Companies of Johnson & Johnson to map T cell responses to RSV to support Janssen’s RSV vaccine program.

  • Announced the appointment of Tycho Peterson as chief financial officer, who brings several decades of financial leadership and experience within the life science and diagnostic industries.

First Quarter 2022 Financial Results

Revenue was $38.6 million for the quarter ended March 31, 2022, representing a 0.5% increase from the first quarter in the prior year. Immune Medicine revenue was $20.8 million for the quarter, representing a 4% increase from the first quarter in the prior year. MRD revenue was $17.8 million for the quarter, representing a 3% decrease from the first quarter in the prior year.

Operating expenses were $101.7 million for the first quarter of 2022, compared to $79.7 million in the first quarter of the prior year, representing an increase of 28%.

Net loss was $62.8 million for the first quarter of 2022, compared to $40.6 million for the same period in 2021.

Cash, cash equivalents and marketable securities was $500.7 million as of March 31, 2022.

2022 Financial Guidance

Adaptive Biotechnologies reiterates full year 2022 revenue to be in the range of $185 million to $195 million.

Webcast and Conference Call Information

Adaptive Biotechnologies will host a conference call to discuss its first quarter 2022 financial results after market close on Wednesday, May 4, 2022 at 4:30 PM Eastern Time. The conference call can be accessed at http://investors.adaptivebiotech.com. The webcast will be archived and available for replay at least 90 days after the event.

About Adaptive Biotechnologies

Adaptive Biotechnologies (“we” or “our”) is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our proprietary immune medicine platform reveals and translates the massive genetics of the adaptive immune system with scale, precision and speed to develop products in life sciences research, clinical diagnostics and drug discovery. We have three commercial products and a robust clinical pipeline to diagnose, monitor and enable the treatment of diseases such as cancer, autoimmune disorders, and infectious diseases. Our goal is to develop and commercialize immune-driven clinical products tailored to each individual patient.

Forward-Looking Statements

This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations.

In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.

ADAPTIVE MEDIA
Laura Cooper
205-908-5603
media@adaptivebiotech.com

ADAPTIVE INVESTORS
Karina Calzadilla, Vice President, Investor Relations
201-396-1687
Carrie Mendivil, Gilmartin Group
investors@adaptivebiotech.com


Adaptive Biotechnologies
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)

Three Months Ended March 31,

2022

2021

Revenue

$

38,620

$

38,442

Operating expenses

Cost of revenue

13,192

9,991

Research and development

37,839

33,772

Sales and marketing

26,093

20,604

General and administrative

24,144

14,936

Amortization of intangible assets

419

419

Total operating expenses

101,687

79,722

Loss from operations

(63,067

)

(41,280

)

Interest and other income, net

271

638

Net loss

(62,796

)

(40,642

)

Add: Net loss attributable to noncontrolling interest

60

Net loss attributable to Adaptive Biotechnologies Corporation

$

(62,736

)

$

(40,642

)

Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted

$

(0.44

)

$

(0.29

)

Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted

141,697,252

138,967,754



Adaptive Biotechnologies
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)

March 31, 2022

December 31, 2021

(unaudited)

Assets

Current assets

Cash and cash equivalents

$

114,805

$

139,065

Short-term marketable securities (amortized cost of $250,448 and $214,115, respectively)

248,757

213,996

Accounts receivable, net

22,518

17,409

Inventory

21,002

19,263

Prepaid expenses and other current assets

12,038

13,015

Total current assets

419,120

402,748

Long-term assets

Property and equipment, net

85,994

85,262

Operating lease right-of-use assets

85,634

87,678

Long-term marketable securities (amortized cost of $140,202 and $218,163, respectively)

137,110

217,145

Restricted cash

2,382

2,138

Intangible assets, net

8,107

8,526

Goodwill

118,972

118,972

Other assets

874

875

Total assets

$

858,193

$

923,344

Liabilities and shareholders’ equity

Current liabilities

Accounts payable

$

5,959

$

3,307

Accrued liabilities

10,407

9,343

Accrued compensation and benefits

6,651

15,642

Current portion of operating lease liabilities

8,545

5,055

Current portion of deferred revenue

83,504

80,460

Total current liabilities

115,066

113,807

Long-term liabilities

Operating lease liabilities, less current portion

104,978

106,685

Deferred revenue, less current portion

84,894

98,750

Total liabilities

304,938

319,242

Commitments and contingencies

Shareholders’ equity

Preferred stock: $0.0001 par value, 10,000,000 shares authorized at March 31, 2022 and December 31, 2021; no shares issued and outstanding at March 31, 2022 and December 31, 2021

Common stock: $0.0001 par value, 340,000,000 shares authorized at March 31, 2022 and December 31, 2021; 142,183,258 and 141,393,865 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

14

14

Additional paid-in capital

1,339,601

1,324,006

Accumulated other comprehensive loss

(4,783

)

(1,137

)

Accumulated deficit

(781,627

)

(718,891

)

Total Adaptive Biotechnologies Corporation shareholders’ equity

553,205

603,992

Noncontrolling interest

50

110

Total shareholders’ equity

553,255

604,102

Total liabilities and shareholders’ equity

$

858,193

$

923,344

Revenue Reclassification and clonoSEQ Test Volume

We previously disclosed revenue bifurcated into sequencing and development financial statement captions and now present total revenue on our unaudited condensed consolidated statements of operations.

The following table presents the amount of sequencing revenue and development revenue recognized under our Immune Medicine and MRD market opportunities for the periods presented (in thousands, unaudited):

Three Months Ended

December 31,
2021

September 30,
2021

June 30,
2021

March 31,
2021

Immune Medicine revenue

Sequencing revenue

$

6,860

$

8,170

$

5,404

$

4,048

Development revenue

14,514

15,445

17,635

16,057

Total Immune Medicine revenue

21,374

23,615

23,039

20,105

MRD revenue

Sequencing revenue

16,201

13,936

13,151

11,126

Development revenue

355

1,916

2,315

7,211

Total MRD revenue

16,556

15,852

15,466

18,337

Total revenue

$

37,930

$

39,467

$

38,505

$

38,442


Three Months Ended

December 31,
2020

September 30,
2020

June 30,
2020

March 31,
2020

Immune Medicine revenue

Sequencing revenue

$

3,310

$

3,691

$

2,036

$

3,170

Development revenue

17,155

12,438

12,856

11,077

Total Immune Medicine revenue

20,465

16,129

14,892

14,247

MRD revenue

Sequencing revenue

9,399

7,585

5,949

6,299

Development revenue

321

2,585

147

364

Total MRD revenue

9,720

10,170

6,096

6,663

Total revenue

$

30,185

$

26,299

$

20,988

$

20,910

We also previously disclosed the number of clonoSEQ reports provided to ordering physicians in the United States, referred to as “clinical sequencing volume” or “clinical sequencing volume, excluding T-Detect COVID volume” in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of certain of our SEC filings. We now present the number of clonoSEQ reports and results we have provided to ordering physicians in the United States and international technology transfer sites, collectively referred to as “clonoSEQ test volume.” Our clonoSEQ test volume does not include sample results from our biopharmaceutical customers or academic institutions utilizing our MRD services.

The following table presents our clonoSEQ test volume for the periods presented:

Three Months Ended

December 31,
2021

September 30,
2021

June 30,
2021

March 31,
2021

Clinical sequencing volume, excluding T-Detect COVID volume

6,356

5,928

5,475

4,757

clonoSEQ reports or results provided to international technology transfer sites

494

413

422

543

clonoSEQ test volume

6,850

6,341

5,897

5,300


Three Months Ended

December 31,
2020

September 30,
2020

June 30,
2020

March 31,
2020

Clinical sequencing volume

4,509

4,023

3,136

3,518

clonoSEQ reports or results provided to international technology transfer sites

704

375

310

238

clonoSEQ test volume

5,213

4,398

3,446

3,756