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Adaptive Biotechnologies Reports Second Quarter 2021 Financial Results

·10 min read

SEATTLE, Aug. 04, 2021 (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 June 30, 2021.

“We had another strong quarter with 83% revenue growth over prior year,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “I am encouraged by our performance across the business and excited about the emerging data from our immune medicine platform, which we expect to monetize for multiple opportunities in research, diagnostics and drug discovery.”

Recent Highlights

  • Revenue of $38.5 million for the second quarter 2021, representing an 83% increase from the second quarter 2020

  • clonoSEQ clinical sequencing volume in the second quarter 2021 grew 75% versus prior year and 15% over the first quarter of 2021

  • Signed a license agreement with Vaccibody to leverage Adaptive Biotechnologies’ T-cell data to inform the development of a T-cell based SARS-CoV-2 vaccine

  • Signed an agreement with Moderna to use immunoSEQ T-MAP COVID to measure the T-cell response to their second generation COVID vaccine and their Zika vaccine

  • Published case control data in Lyme disease and completing enrollment in ImmuneSense study to enable T-Detect Lyme offering in our CLIA certified lab around year end

  • Advanced T-Detect pipeline in autoimmune diseases including Crohn’s and Ulcerative Colitis for IBD differential diagnosis, and generated new early signal in Multiple Sclerosis

Second Quarter 2021 Financial Results

Revenue was $38.5 million for the quarter ended June 30, 2021, representing an 83% increase from the second quarter in the prior year. Sequencing revenue was $18.6 million for the quarter, representing a 132% increase from the second quarter in the prior year. Development revenue was $20.0 million for the quarter, representing a 53% increase from the second quarter in the prior year.

Operating expenses were $88.3 million for the second quarter of 2021, compared to $57.9 million in the second quarter of the prior year, representing an increase of 53%.

Net loss was $49.3 million for the second quarter of 2021, compared to $33.5 million for the same period in 2020.

Adjusted EBITDA (non-GAAP) was a loss of $35.6 million for the second quarter of 2021, compared to a loss of $28.5 million for the second quarter of the prior year.

Cash, cash equivalents and marketable securities was $689.5 million as of June 30, 2021.

2021 Financial Guidance

Adaptive Biotechnologies expects full year 2021 revenue to be in the range of $148 million to $155 million, representing 54% growth at the mid-point of the range over full year 2020 revenue. This compares to Adaptive Biotechnologies’ previous outlook of $145 million to $155 million.

Webcast and Conference Call Information

Adaptive Biotechnologies will host a conference call to discuss its second quarter 2021 financial results after market close on Wednesday, August 4, 2021 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 conditions 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.

Use of Non-GAAP Financial Measure

To supplement our unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), this press release also includes references to Adjusted EBITDA, which is a non-GAAP financial measure that we define as net loss adjusted for interest and other income, net, income tax benefit (expense), depreciation and amortization and share-based compensation expenses. We have provided a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this press release.

Management uses Adjusted EBITDA to evaluate the financial performance of our business and the effectiveness of our business strategies. We present Adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry and it facilitates comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance.

Adjusted EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA does not reflect:

  • all expenditures or future requirements for capital expenditures or contractual commitments;

  • changes in our working capital needs;

  • income tax benefit (expense), which may be a necessary element of our costs and ability to operate;

  • the costs of replacing the assets being depreciated and amortized, which will often have to be replaced in the future;

  • the non-cash component of employee compensation expense; and

  • the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations.

In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

ADAPTIVE MEDIA
Beth Keshishian
917-912-7195
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 June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Revenue

Sequencing revenue

$

18,555

$

7,985

$

33,729

$

17,454

Development revenue

19,950

13,003

43,218

24,444

Total revenue

38,505

20,988

76,947

41,898

Operating expenses

Cost of revenue

10,765

4,912

20,756

10,255

Research and development

37,800

25,992

71,572

49,927

Sales and marketing

23,216

14,332

43,820

28,339

General and administrative

16,066

12,238

31,002

24,059

Amortization of intangible assets

423

423

842

847

Total operating expenses

88,270

57,897

167,992

113,427

Loss from operations

(49,765

)

(36,909

)

(91,045

)

(71,529

)

Interest and other income, net

464

1,893

1,102

4,787

Income tax benefit

1,481

1,804

Net loss

$

(49,301

)

$

(33,535

)

$

(89,943

)

$

(64,938

)

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

$

(0.35

)

$

(0.26

)

$

(0.64

)

$

(0.51

)

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

140,359,317

127,383,582

139,667,380

126,720,986



Adaptive Biotechnologies

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

June 30, 2021

December 31, 2020

(unaudited)

Assets

Current assets

Cash and cash equivalents

$

184,186

$

123,436

Short-term marketable securities (amortized cost of $413,965 and $564,036, respectively)

414,227

564,833

Accounts receivable, net

14,174

10,047

Inventory

18,612

14,063

Prepaid expenses and other current assets

12,530

14,535

Total current assets

643,729

726,914

Long-term assets

Property and equipment, net

75,235

39,692

Operating lease right-of-use assets

92,067

99,350

Long-term marketable securities (amortized cost of $91,177 and $118,429, respectively)

91,131

118,525

Restricted cash

2,138

2,138

Intangible assets, net

9,383

10,225

Goodwill

118,972

118,972

Other assets

719

598

Total assets

$

1,033,374

$

1,116,414

Liabilities and shareholders’ equity

Current liabilities

Accounts payable

$

6,093

$

3,237

Accrued liabilities

13,539

13,162

Accrued compensation and benefits

8,630

11,950

Current portion of operating lease liabilities

4,833

3,529

Current portion of deferred revenue

83,553

73,319

Total current liabilities

116,648

105,197

Long-term liabilities

Operating lease liabilities, less current portion

103,774

104,333

Deferred revenue, less current portion

119,642

163,618

Total liabilities

340,064

373,148

Commitments and contingencies

Shareholders’ equity

Preferred stock: $0.0001 par value, 10,000,000 shares authorized at June 30, 2021 and December 31, 2020; no shares issued and outstanding at June 30, 2021 and December 31, 2020

Common stock: $0.0001 par value, 340,000,000 shares authorized at June 30, 2021 and December 31, 2020; 140,663,755 and 137,646,896 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

14

14

Additional paid-in capital

1,294,506

1,253,971

Accumulated other comprehensive gain

216

893

Accumulated deficit

(601,555

)

(511,612

)

Total Adaptive Biotechnologies Corporation shareholders’ equity

693,181

743,266

Noncontrolling interest

129

Total shareholders’ equity

693,310

743,266

Total liabilities and shareholders’ equity

$

1,033,374

$

1,116,414

Adjusted EBITDA

The following table sets forth a reconciliation between our Adjusted EBITDA and our net loss, the most directly comparable GAAP financial measure, for each of the periods presented (in thousands, unaudited):

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net loss

$

(49,301

)

$

(33,535

)

$

(89,943

)

$

(64,938

)

Interest and other income, net

(464

)

(1,893

)

(1,102

)

(4,787

)

Income tax benefit

(1,481

)

(1,804

)

Depreciation and amortization expense

2,905

1,998

5,576

3,976

Share-based compensation expense

11,249

6,373

19,733

11,048

Adjusted EBITDA

$

(35,611

)

$

(28,538

)

$

(65,736

)

$

(56,505

)