Adaptive Biotechnologies (ADPT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individua ...

Adaptive Biotechnologies (ADPT) FY Conference June 11, 2025 08:40 AM ET Speaker0 Matt Sykes, Life Science Tools and Diagnostics Analyst at Goldman Sachs. This morning, I have the pleasure of welcoming Chad Robbins, Co Founder and CEO of Adaptive Biotechnologies. Chad, thanks very much for being here. Really appreciate Thanks, Speaker1 Matt, for having us. Appreciate it. Speaker0 Let's just maybe start with a quick recap of some of progress you've made to start this year. You had a really strong Q1 with volu ...

Core Insights - Adaptive Biotechnologies Corporation announced that its clonoSEQ test for measurable residual disease (MRD) assessment will be featured in 30 presentations at major oncology conferences, including 14 oral presentations [1][2] - The data presented will highlight the clinical actionability of clonoSEQ in multiple myeloma (MM) and chronic lymphocytic leukemia (CLL), showcasing its transformative impact on clinical care and drug development [2][3] Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on translating the genetics of the adaptive immune system into clinical products for disease diagnosis and treatment [14] - The company aims to leverage its proprietary immune medicine platform to develop clinical diagnostics and therapeutic solutions across various diseases, including cancer and autoimmune disorders [14] Product Information - clonoSEQ is the first FDA-cleared in vitro diagnostic test for detecting and tracking MRD in patients with multiple myeloma and B-cell acute lymphoblastic leukemia, and is also available for chronic lymphocytic leukemia [11][12] - The test can detect one cancer cell in one million healthy cells, providing precise monitoring of MRD over time, which informs treatment decisions and predicts patient outcomes [12] Upcoming Presentations - Key presentations at the ASCO Annual Meeting and EHA Congress will include results from several clinical trials demonstrating the efficacy of MRD-guided therapy in multiple myeloma and CLL [6][8] - Notable studies include the MIDAS trial, which involves 718 transplant-eligible newly diagnosed multiple myeloma patients, and the ADVANCE trial with 306 patients, both focusing on MRD status to guide therapy [6][8]

Company Overview - Adaptive Biotechnologies Corporation is a commercial-stage biotechnology company focused on translating the genetics of the adaptive immune system into clinical products for disease diagnosis and treatment [3] - The company aims to leverage the adaptive immune system's capabilities, which are considered nature's most finely tuned diagnostic and therapeutic tools for various diseases [3] - Adaptive Biotechnologies operates two business segments: Minimal Residual Disease (MRD) and Immune Medicine, developing products for cancer and autoimmune disorders [3] Upcoming Events - The company will participate in the Goldman Sachs 46th Annual Global Healthcare Conference in Miami, FL [1] - Management is scheduled for a fireside chat on June 11 at 5:40 a.m. Pacific Time / 8:40 a.m. Eastern Time, with a live and archived webcast available on the company website [2]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Adaptive Biotechnologies (ADPT) - ADPT currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Performance Metrics - Over the past week, ADPT shares increased by 24.56%, significantly outperforming the Zacks Medical - Biomedical and Genetics industry, which rose by 2.14% [6] - In the last month, ADPT's price change was 20%, compared to the industry's 10.14% [6] - Over the past quarter, ADPT shares rose by 8.8%, and over the last year, they surged by 160.39%, while the S&P 500 experienced declines of -5.75% and gains of 10.63%, respectively [7] Trading Volume - ADPT's average 20-day trading volume is 2,969,478 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, three earnings estimates for ADPT have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.92 to -$0.87 [10] - For the next fiscal year, two estimates have moved up, while one has been revised down [10] Conclusion - Given the strong performance metrics and positive earnings outlook, ADPT is recommended as a solid momentum pick for investors [12]

Group 1 - Shares of Adaptive Biotechnologies (ADPT) have increased by 5.1% over the past four weeks, closing at $8.81, with a mean price target of $11.14 indicating a potential upside of 26.5% [1] - The average price targets from analysts range from a low of $9 to a high of $13, with a standard deviation of $1.57, suggesting a variability in estimates; the lowest estimate indicates a 2.2% increase, while the highest points to a 47.6% upside [2] - Analysts show strong agreement in revising earnings estimates higher for ADPT, which correlates with potential stock price movements, as the Zacks Consensus Estimate for the current year has increased by 5.5% over the past month [4][12] Group 2 - ADPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside in the near term [13] - The consensus price target, while not entirely reliable, suggests a positive direction for ADPT's price movement, supported by the recent upward revisions in earnings estimates [11][13]

Group 1 - Adaptive Biotechnologies (ADPT) is outperforming its peers in the Medical sector, gaining about 47% year-to-date compared to the sector's average loss of 4.8% [4] - The Zacks Rank for Adaptive Biotechnologies is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 5.5% increase in the consensus estimate for full-year earnings [3][4] - The Medical group ranks 3 within the Zacks Sector Rank, which evaluates 16 different sector groups based on the average Zacks Rank of individual stocks [2] Group 2 - Adaptive Biotechnologies is part of the Medical - Biomedical and Genetics industry, which has seen an average loss of 8% this year, further highlighting ADPT's strong performance [6] - Another outperforming stock in the Medical sector is Centene (CNC), which has gained 3.9% year-to-date, with a Zacks Rank of 2 (Buy) and a 4.4% increase in the consensus EPS estimate [5][7] - The Medical - HMOs industry, where Centene belongs, has experienced a decline of 14% since the beginning of the year, contrasting with the performance of Adaptive Biotechnologies [7]

Core Insights - Adaptive Biotechnologies reported a revenue of $52.44 million for the quarter ended March 2025, marking a year-over-year increase of 25.3% [1] - The earnings per share (EPS) for the same period was -$0.20, an improvement from -$0.33 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $43.15 million by 21.53%, and the EPS also surpassed the consensus estimate of -$0.28 by 28.57% [1] Performance Metrics - The ClonoSEQ test volume was reported at 23,117, slightly below the three-analyst average estimate of 23,468 [4] - Total Minimal Residual Disease (MRD) revenues reached $43.72 million, significantly above the three-analyst average estimate of $34.61 million, reflecting a year-over-year increase of 34% [4] - Total Immune Medicine revenues were $8.72 million, slightly above the estimated $8.50 million, but showed a year-over-year decline of 5.7% [4] Stock Performance - Shares of Adaptive Biotechnologies have decreased by 7.3% over the past month, compared to a decline of 0.7% in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Adaptive Biotechnologies reported a quarterly loss of $0.20 per share, better than the Zacks Consensus Estimate of a loss of $0.28, and an improvement from a loss of $0.33 per share a year ago, resulting in an earnings surprise of 28.57% [1] - The company achieved revenues of $52.44 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 21.53%, and up from $41.87 million year-over-year [2] - The stock has increased approximately 22.8% since the beginning of the year, contrasting with a -5.3% decline in the S&P 500 [3] Earnings Outlook - The future performance of Adaptive Biotechnologies' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is -$0.24 on revenues of $47.91 million, and for the current fiscal year, it is -$0.92 on revenues of $213.24 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Adaptive Biotechnologies belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $52.4 million, representing a 25% growth from the same period last year [22] - MRD revenue grew 34% year-over-year to $43.7 million, with clinical and pharma contributions of 65% and 35% respectively [22] - Sequencing gross margin improved by 17 percentage points year-over-year to 62% [8][22] - Operating expenses decreased by 9% to $82 million, driven by lower R&D spending [23] - Cash burn for the quarter was $23 million, a 38% improvement compared to the same period last year [8] Business Line Data and Key Metrics Changes - ClonoSEQ clinical revenue grew 55% year-over-year, with test deliveries reaching over 23,000, a 36% increase [10] - Average selling price (ASP) for ClonoSEQ tests in the US increased by 14% to over $1,220 per test [13] - MRD Pharma revenue grew 11% year-over-year, with $4.5 million recognized in regulatory milestones [14] Market Data and Key Metrics Changes - The number of ordering healthcare providers grew 31% year-over-year, now exceeding 3,400 [12] - Blood-based testing contributed 44% of MRD tests in the US, up from 39% a year ago [11] Company Strategy and Development Direction - The company is focused on increasing the lifetime value of each clonoSEQ Medicare patient and expanding its market presence through EMR integrations [9][12] - Strategic goals include achieving over 45% of clonoSEQ testing done in blood and launching new initiatives in the second half of the year [16] - The company aims to be adjusted EBITDA positive in the second half of the year [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving raised full-year guidance due to strong first-quarter performance and sustained momentum [29] - The company has minimal exposure to tariffs and NIH funding pressures, providing a solid cash position of $233 million [9] Other Important Information - The company is on track to lower its full-year total operating expense guidance to a range of $335 million to $345 million [26] - Full-year cash burn guidance has been lowered to a range of $50 million to $60 million [27] Q&A Session Summary Question: Specific indications seeing growth and contribution trends - Management noted strong sequential growth across all indications, particularly in lymphoma indications like DLBCL and MCL [32] Question: Updates on EMR integration and larger accounts - Management reported significant growth in accounts integrated for over a year, with some larger accounts showing an average quarter-over-quarter growth of 27% [37] Question: Drivers of clonoSEQ volume growth - Management indicated that growth was driven by non-Hodgkin's lymphoma indications and the acceleration of EMR integrations [42] Question: Milestone payments and funnel growth - Management confirmed that more milestones are becoming available, providing clarity and confidence in the 2025 outlook [48] Question: Pricing and contracting discussions - Management emphasized a disciplined approach to pricing, ensuring contracted rates are close to Medicare rates [51] Question: Frequency of testing in clinical trials - Management acknowledged increased interest in more frequent testing, particularly in multiple myeloma trials [58] Question: Operational efficiencies from EMR integrations - Management noted potential operational efficiencies from EMR integrations, with significant reductions in callbacks reported by integrated accounts [68] Question: NeoGenomics partnership progress - Management provided updates on the partnership, focusing on optimizing the broader national launch based on insights gained from phase one accounts [115]