Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $38.6 million, a slight increase from $38.4 million in the same period last year [23][24] - Immune medicine revenue was $20.8 million, a 4% increase from the same period in 2021, while MRD revenue was $17.8 million, down 3% from the same period last year [24][25] - Net loss for Q1 2022 was $62.8 million, compared to a net loss of $40.6 million in Q1 2021 [27] Business Line Data and Key Metrics Changes - In the MRD business, clonoSEQ test volume grew by 45% year-over-year, with test deliveries increasing by 12% to 7,698 tests [9][11] - The immune medicine business generated approximately $21 million this quarter, with revenue from pharma partners using immunoSEQ and data from the TCR antigen map growing by 100% year-over-year [10][24] - The MRD business saw significant growth in ordering healthcare providers (53%) and unique patients tested (59%) compared to the prior year [11] Market Data and Key Metrics Changes - The community setting for MRD testing experienced growth of over 60% during the quarter [12] - The immune medicine business is expected to expand into multiple therapeutic areas beyond COVID, with new collaborations such as mapping T-cell responses to RSV for Johnson & Johnson's vaccine program [10][18] Company Strategy and Development Direction - The company has restructured its business to focus on two main areas: MRD and immune medicine, aiming for a more streamlined organization to fuel growth [7][8] - The strategy includes expanding into non-Hodgkin's lymphoma using ctDNA and enhancing customer experience through integration of clonoSEQ into ordering systems [12][19] - The company aims to launch at least one autoimmune indication by the end of 2023, focusing on high unmet needs in diseases like MS and Crohn's [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the importance of achieving cash flow neutrality and is taking proactive steps to manage expenses while exploring non-dilutive cash flow opportunities [38][39] - The company is confident in achieving its full-year revenue guidance of $185 million to $195 million, with both MRD and immune medicine businesses contributing approximately equally [27][29] Other Important Information - Total operating expenses for Q1 2022 were $101.7 million, a 28% increase from the same quarter last year, driven by higher personnel costs and restructuring activities [25][26] - The company is on track to manage operating expenses to grow at lower rates than revenue due to restructuring efforts [28] Q&A Session Summary Question: Growth rate and factors affecting it - Management explained that the flat growth was impacted by lower MRD milestones and changes in Genentech amortization, which compressed growth figures [33] Question: Path to profitability - Management emphasized the importance of cash flow neutrality and proactive steps taken to manage expenses, with a clearer long-term plan expected later in the year [38] Question: Genentech private product specifications - Management detailed ongoing work to define specifications through successful proof-of-concept screens and additional patient studies [41] Question: Visibility in the field and access for sales reps - Management noted that in-person meetings are improving, with a current trend of 60% virtual visits [45] Question: Prioritization of autoimmune disease portfolio - Management clarified that MS and Crohn's are prioritized due to advanced signals and high unmet needs, while RA is further behind in sample collection [47] Question: ASP for clonoSEQ - Management indicated steady ASP growth for clonoSEQ, expecting it to reach $1,200 to $1,300 in the next two to three years [55] Question: Cash burn and future expectations - Management acknowledged higher cash burn in Q1 due to restructuring timing and seasonal factors, with expectations of reduced cash burn in the following quarters [57] Question: NHL assay commercialization timeline - Management confirmed plans to launch the NHL assay later this year, with ongoing validation and a clinical experience program already underway [59][60]

Revenue Performance - Revenue for the three months ended March 31, 2022, was $38.62 million, a slight increase from $38.44 million for the same period in 2021, representing a growth of 0.5%[13] - Total revenue for the three months ended March 31, 2022, was $38,620 thousand, a slight increase of $178 thousand or 0.5% compared to $38,442 thousand for the same period in 2021[113] - Immune Medicine revenue for the three months ended March 31, 2022, was $20.82 million, compared to $20.10 million in the same period of 2021, representing a growth of 3.5%[40] - MRD revenue for the three months ended March 31, 2022, totaled $17.80 million, a decrease of 2.9% from $18.34 million in the same period of 2021[40] - The company recognized $12.3 million in Immune Medicine collaboration revenue related to the Genentech Agreement during the three months ended March 31, 2022[43] - The company expects to recognize the current deferred revenue within 12 months and the non-current amounts over approximately four to five years[46] Operating Expenses - Total operating expenses for the three months ended March 31, 2022, were $101.69 million, up from $79.72 million in the same period of 2021, indicating an increase of 27.5%[13] - Research and development expenses for the three months ended March 31, 2022, were $37.84 million, compared to $33.77 million for the same period in 2021, an increase of 12.3%[13] - Sales and marketing expenses increased to $26.09 million for the three months ended March 31, 2022, from $20.60 million in the same period of 2021, representing a growth of 26.6%[13] - General and administrative expenses rose to $24.14 million for the three months ended March 31, 2022, compared to $14.94 million for the same period in 2021, an increase of 61.5%[13] - General and administrative expenses increased by $9.2 million to $24.1 million, primarily due to a $4.2 million rise in building and facility-related expenses and a $2.7 million increase in personnel costs, representing a 62% increase year-over-year[121] Net Loss and Financial Position - The net loss attributable to Adaptive Biotechnologies Corporation for the three months ended March 31, 2022, was $62.74 million, compared to a net loss of $40.64 million for the same period in 2021, reflecting an increase of 54.3%[13] - The company reported a comprehensive loss of $66.38 million for the three months ended March 31, 2022, compared to a comprehensive loss of $40.90 million for the same period in 2021, an increase of 62.5%[16] - The accumulated deficit as of March 31, 2022, was $781.63 million, up from $718.89 million at the end of 2021, indicating a rise of 8.7%[9] - The total shareholders' equity as of March 31, 2022, was $553.26 million, down from $604.10 million at the end of 2021, a decrease of 8.4%[9] - Cash used in operating activities increased to $64,453 thousand in Q1 2022 from $58,245 thousand in Q1 2021[21] - Cash, cash equivalents, and marketable securities as of March 31, 2022, were $500.7 million, down from $570.2 million as of December 31, 2021[97] Cash Flow and Investments - Cash provided by investing activities was $37.7 million, mainly from maturities of marketable securities totaling $101.0 million, offset by $60.2 million in purchases of marketable securities[128] - Cash provided by financing activities was $2.7 million, primarily from stock option exercises, a decrease from $14.6 million in the same period of 2021[129] - The company plans to utilize existing cash for commercial activities, R&D initiatives, and capital expenditures related to laboratory space and equipment[123] Workforce and Restructuring - The company incurred approximately $2.0 million in restructuring costs in March 2022, primarily related to workforce reduction of about 100 employees[87] - The company reduced its workforce by approximately 100 employees as part of a restructuring plan aimed at reducing operating costs and aligning with strategic market opportunities[98] Future Outlook and Strategic Plans - The company has plans to expand its T-Detect product line with the goal of developing a multi-disease universal diagnostic test[5] - The company expects to launch T-Detect Lyme during the Lyme season of 2022, expanding its diagnostic product offerings[95] - The company anticipates revenue growth in the long term, particularly as the mix shifts towards clinical diagnostics and drug discovery[105] - The company expects research and development expenses to decrease as a percentage of revenue in the long term, although fluctuations may occur[108] Market and Customer Insights - Revenue from significant customers included 33.8% from Genentech and Roche Group in Q1 2022, down from 42.1% in Q1 2021[32] - The company has successfully expanded coverage for the clonoSEQ diagnostic test through agreements with Medicare and several major private health insurers in the U.S.[97] - clonoSEQ test volume reached 6,850 reports for the three months ended December 31, 2021, up from 5,300 reports for the same period in 2020, representing a year-over-year increase of 29.2%[103] - clonoSEQ test volume increased by 45% to 7,698 tests delivered in the three months ended March 31, 2022, compared to 5,300 tests in the same period in 2021[114]

Financial Data and Key Metrics Changes - Total revenue for 2021 was $154.3 million, a 57% increase from $98.4 million in 2020 [25] - Fourth quarter revenue was $37.9 million, representing a 26% increase from $30.2 million in the same period last year [21] - Net loss for Q4 2021 was $61.4 million compared to a net loss of $44.6 million in Q4 2020 [24] - Adjusted EBITDA for Q4 2021 was a loss of $44.9 million compared to a loss of $34.6 million in the same period last year [24] Business Line Data and Key Metrics Changes - The MRD business saw a 48% increase in tests delivered, totaling 22,516 tests in 2021 [13] - Sequencing revenue in 2021 was $78.9 million, a 90% increase from 2020 [25] - Development revenue for 2021 grew to $75.4 million, up 32% from the previous year [25] Market Data and Key Metrics Changes - The company reported that 28% of all tests were done in blood, indicating a significant market penetration [13] - The clonoSEQ assay is currently being used in 155 active trials by more than 60 pharma companies [15] Company Strategy and Development Direction - The company plans to report revenues based on two key business areas: MRD and immune medicine [8] - There is a focus on expanding the sales team to deepen penetration in academic centers and increase reach into the community [14] - The company aims to improve autoimmune signals and increase sensitivity while maintaining high specificity in diagnostics [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming last year's headwinds and accelerating growth in 2022 [14] - The company expects full-year revenue for 2022 to be in the range of $185 million to $195 million, with a mid-40% growth in sequencing revenues [27] - Q1 2022 is expected to be the low watermark due to seasonality and Omicron impacts, with growth anticipated in the latter half of the year [28] Other Important Information - The company ended 2021 with approximately $570 million in cash and no debt [26] - The T-Detect COVID test received emergency use authorization from the FDA, marking a significant milestone [11] Q&A Session Summary Question: 2022 revenue guidance and its basis - Management indicated that the guidance reflects variability in revenues associated with milestones and the changing dynamics of the pandemic [32] Question: Demand for T-Detect COVID and its significance - Management acknowledged the importance of the T-Detect COVID test but noted it would not significantly impact the revenue profile for 2022 [34] Question: Internal structure changes regarding MRD and immune medicine - The company is aligning its organizational structure to better focus on MRD and immune medicine opportunities [39] Question: Clinical testing volumes and expectations - Management expects strong growth in clinical testing volumes in 2022, supported by an expanded sales team [44] Question: Progress on T-Detect for Crohn's and celiac diseases - The company is planning to launch a test for IBD next year, with a focus on high specificity and increasing sensitivity [62]

T-Detect - T-Detect COVID: Enhance product profile with semi-quant data and correlate of protection[6, 41] - T-Detect AI: Increase sensitivity/specificity in MS, IBD, RA for market readiness[6, 41] - T-Detect most advanced indications include COVID (Only FDA authorized test, Medicare coverage for immunocompromised patients), AUTOIMMUNE (Clinical signals in five diseases: Crohn's, colitis, celiac, MS, RA), and LYME (Study Completed, Lyme season readiness)[16] Drug Discovery - Advance lead shared candidate to development with GNE collaboration[6, 41] - Deliver 2 fully characterized additional shared candidates with GNE collaboration[6, 41] - Develop private product prototype with GNE collaboration[6, 41] - Phase 1/2 data from Nykode collaboration[6, 41] MRD (Minimal Residual Disease) - Obtain Medicare coverage of DLBCL[6, 41] - Read-out data for use in blood in MM/DLBCL[6, 41] - Expand adoption of MRD status as a co-/primary clinical endpoint[6, 41] - MRD has evolved into an essential clinical decision-making tool[37] - Broad coverage for clonoSEQ: >240 million lives[35] - >$330 million in future regulatory milestones for clonoSEQ[35]

Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Q3 2021 Earnings Conference Call November 3, 2021 4:30 PM ET Company Participants Karina Calzadilla - Vice President of Investor Relations Chad Robins - Chairman, Co-Founder and Chief Executive Officer Chad Cohen - Chief Financial Officer Harlan Robins - Chief Scientific Officer Nitin Sood - Chief Commercial Officer Conference Call Participants Tycho Peterson - JPMorgan Chase & Co. Derik De Bruin - Bank of America Merrill Lynch Brian Weinstein - William Bla ...