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 MEDIALaura
Cooper205-908-5603media@adaptivebiotech.com
ADAPTIVE INVESTORSKarina Calzadilla, Vice
President, Investor Relations201-396-1687Carrie Mendivil, Gilmartin
Groupinvestors@adaptivebiotech.com
Adaptive BiotechnologiesCondensed 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 BiotechnologiesCondensed 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 |
|
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