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] Upcoming Event - The company will participate in the 43rd Annual J.P. Morgan Healthcare Conference in San Francisco, CA, scheduled for January 14th at 5:15 p.m. Pacific Time / 8:15 p.m. Eastern Time [1][2] Business Focus - Adaptive Biotechnologies utilizes a proprietary immune medicine platform to decode the genetics of the adaptive immune system with scale, precision, and speed [3] - The company operates in two main business areas: Minimal Residual Disease (MRD) and Immune Medicine, focusing on the diagnosis, monitoring, and treatment of diseases such as cancer, autoimmune disorders, and infectious diseases [3]

Company Performance - Adaptive Biotechnologies (ADPT) has gained approximately 16.9% year-to-date, outperforming the Medical sector, which has returned an average of 2.2% [4] - The Zacks Consensus Estimate for ADPT's full-year earnings has increased by 9.6% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] - Cardinal Health (CAH) is another Medical stock that has outperformed the sector with a year-to-date return of 21.7% [4] Industry Ranking - Adaptive Biotechnologies is part of the Medical - Biomedical and Genetics industry, which includes 504 companies and currently ranks 61 in the Zacks Industry Rank [6] - The Medical - Biomedical and Genetics industry has experienced an average loss of 5.3% year-to-date, highlighting ADPT's superior performance within its industry [6] - Cardinal Health operates in the Medical - Dental Supplies industry, which ranks 149 and has seen a year-to-date increase of 5.7% [7] Sector Overview - The Medical group, which includes Adaptive Biotechnologies, ranks 3 within the Zacks Sector Rank, indicating strong overall performance compared to other sectors [2] - The Zacks Rank system emphasizes earnings estimates and revisions, with Adaptive Biotechnologies currently holding a Zacks Rank of 2 (Buy) [3][5]

Group 1 - The discussion in the biotech community has focused on profitable buy-write or covered call strategies for selected biotech stocks over recent months [1] - Adaptive Biotechnologies Corporation (NASDAQ: ADPT) is being highlighted for the first time in nine months, indicating a renewed interest in the company [2] - The Biotech Forum offers a model portfolio featuring 12-20 high upside biotech stocks, along with live chat for trade ideas and weekly market commentary [2]

Core Viewpoint - Adaptive Biotechnologies (ADPT) has shown a significant price increase of 20.3% over the past four weeks, with a mean price target of $7.33 indicating a potential upside of 31.4% from the current price of $5.58 [1] Price Target Analysis - The average price target consists of six estimates ranging from a low of $5 to a high of $10, with a standard deviation of $1.63, indicating variability among analysts [2] - The lowest estimate suggests a decline of 10.4%, while the highest points to a potential upside of 79.2% [2] - A low standard deviation indicates a higher agreement among analysts regarding the stock's price movement [7] Earnings Estimates and Analyst Sentiment - Analysts are optimistic about ADPT's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which correlates with potential stock price increases [4][9] - The Zacks Consensus Estimate for the current year has risen by 6.1% over the past month, with two estimates increasing and no negative revisions [10] Zacks Rank and Investment Potential - ADPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [11]

Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Q3 2024 Earnings Conference Call November 7, 2024 4:30 PM ET Company Participants Karina Calzadilla - Head of IR Chad Robins - CEO and Co-Founder Kyle Piskel - CFO Susan Bobulsky - Chief Commercial Officer Conference Call Participants Dan Brennan - TD Cowen Mark Massaro - BTIG Matt Sykes - Goldman Sachs Maggie Boeye - William Blair Corey Rosenbaum - Scotiabank Operator Good day, and welcome to Adaptive Biotechnologies Third Quarter Financial Results [Operat ...

Core Insights - Adaptive Biotechnologies reported a revenue of $46.44 million for the quarter ended September 2024, reflecting a year-over-year increase of 22.5% and a surprise of +14.41% over the Zacks Consensus Estimate of $40.59 million [1] - The company's EPS was -$0.22, an improvement from -$0.35 in the same quarter last year, with a surprise of +26.67% compared to the consensus estimate of -$0.30 [1] Revenue Breakdown - ClonoSEQ test volume reached 19,600, slightly above the average estimate of 19,534 based on three analysts [3] - Total MRD revenues were reported at $37.47 million, exceeding the average estimate of $33.56 million, representing a significant year-over-year increase of 51.9% [3] - Total Immune Medicine revenues were $8.97 million, surpassing the average estimate of $6.74 million, but showing a year-over-year decline of 32.3% [3] Stock Performance - Shares of Adaptive Biotechnologies have increased by 15% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of +3.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Adaptive Biotechnologies (ADPT) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 26.67%. A quarter ago, it was expected that this life-sciences research company would post a loss of $0.32 per share when it actually produced a loss of $0.26, delivering a surprise of 18.75%.Over the last four qu ...

Revenue Performance - Revenue for the three months ended September 30, 2024, was $46,435,000, representing a 22.5% increase from $37,919,000 for the same period in 2023[7]. - Total revenue for the three months ended September 30, 2024, was $46.4 million, a 22.5% increase from $37.9 million in the same period of 2023[24]. - MRD revenue for the three months ended September 30, 2024, was $37.5 million, up 51.6% from $24.7 million in the same period of 2023[24]. - Immune Medicine revenue for the three months ended September 30, 2024, was $9.0 million, a decrease of 32.5% from $13.3 million in the same period of 2023[24]. - For the nine months ended September 30, 2024, total revenue was $131,498,000, with MRD revenue at $105,380,000 and Immune Medicine revenue at $26,118,000[59]. - Total MRD revenue for the nine months ended September 30, 2024, was $105.4 million, representing a 46% increase compared to $71.9 million in 2023[85]. Expenses and Losses - Total operating expenses for the three months ended September 30, 2024, were $79,067,000, down from $88,875,000 in the same period of 2023, a decrease of 10.2%[7]. - Net loss attributable to Adaptive Biotechnologies Corporation for the three months ended September 30, 2024, was $(32,071,000), an improvement from $(50,300,000) in the same period of 2023, reflecting a 36.2% reduction in losses[7]. - The company reported a comprehensive loss of $(31,392,000) for the three months ended September 30, 2024, compared to $(49,657,000) for the same period in 2023, indicating a 36.8% improvement[8]. - The net loss for the nine months ended September 30, 2024, was $125,878,000, compared to a net loss of $155,837,000 for the same period in 2023, indicating a reduction in losses[12]. - The company recognized $9.1 million in restructuring costs during the nine months ended September 30, 2024, primarily related to one-time termination benefits and impairment charges[50]. Cash and Assets - Cash and cash equivalents decreased to $38,084,000 as of September 30, 2024, down from $65,064,000 at December 31, 2023, a decline of 41.5%[6]. - Total assets decreased to $558,506,000 as of September 30, 2024, compared to $661,134,000 at December 31, 2023, a reduction of 15.6%[6]. - Cash, cash equivalents, and marketable securities as of September 30, 2024, were $267.2 million, down from $346.4 million as of December 31, 2023[62]. - Cash used in operating activities for the nine months ended September 30, 2024, was $82.7 million, down from $129.4 million in the same period in 2023, representing a 36% decrease[102][103]. Shareholder Equity and Stock Options - The company’s additional paid-in capital increased to $1,493,394,000 as of September 30, 2024, compared to $1,452,502,000 at December 31, 2023, an increase of 2.8%[6]. - As of September 30, 2023, total shareholders' equity was $361,637,000, a decrease from $395,967,000 as of June 30, 2023, reflecting a net loss of $50,326,000 during the quarter[10]. - The balance of common shares increased from 144,772,751 as of September 30, 2023, to 147,561,586 as of September 30, 2024, indicating an increase in share issuance[11]. - The stock options outstanding decreased from 12,875,045 shares at December 31, 2023, to 12,411,036 shares at September 30, 2024, with a weighted average exercise price of $15.06[44]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $24,163,000, down from $28,533,000 in the same period of 2023, a decrease of 15.5%[7]. - Research and development expenses decreased by $4,370,000 to $24,163,000, primarily due to a $3.7 million reduction in personnel costs[78]. - Research and development expenses are expected to decrease in the short term and as a percentage of revenue in the long term[68]. Collaboration and Revenue Recognition - The company entered into a collaboration agreement with Genentech in December 2018, receiving an upfront payment of $300 million and a milestone payment of $10 million in 2023, with potential total payments of up to $1.8 billion[25]. - As of September 30, 2024, the company recognized $3.5 million in collaboration revenue for the quarter and $10 million for the nine months, compared to $8 million and $34.7 million for the same periods in 2023, respectively[26]. - Revenue recognition for the Genentech Agreement is expected to occur over a period of approximately nine years from the effective date[26]. Market and Future Outlook - The company expects long-term growth in MRD revenue through increased clinical testing volume and expanded patient populations[65]. - The Immune Medicine revenue is anticipated to grow as therapies advance toward commercialization, although it may fluctuate due to various factors[66]. - The company expects revenue from current and future products and services to grow over the long term, despite anticipated near-term revenue variability[99].

Revenue Performance - Revenue for Q3 2024 was $46.4 million, a 22% increase from Q3 2023[4] - The MRD business contributed $37.5 million, representing a 52% increase year-over-year[4] - Revenue for the nine months ended September 30, 2024, was $124,492 thousand, compared to $131,498 thousand for the same period in 2023, reflecting a decrease of about 5.3%[20] Test Volume and Pricing - clonoSEQ test volume grew 30% to 19,600 tests delivered compared to Q3 2023[3] - The updated Medicare CLFS Gapfill Determination for clonoSEQ is $2,007 per test, a 17% increase[3] Operating Expenses - Operating expenses decreased by 11% to $79.1 million from $88.9 million in Q3 2023[4] - Operating expenses for the nine months ended September 30, 2024, totaled $280,459 thousand, compared to $260,210 thousand for the same period in 2023, an increase of approximately 7.8%[20] Net Loss and Adjusted EBITDA - Net loss for Q3 2024 was $32.1 million, down from $50.3 million in the same period last year[5] - Adjusted EBITDA loss was $14.3 million, an improvement from a loss of $29.8 million in Q3 2023[6] - Net loss attributable to Adaptive Biotechnologies Corporation for the three months ended September 30, 2024, was $32,071 thousand, compared to a net loss of $50,300 thousand for the same period in 2023, showing an improvement of about 36.2%[16] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(63,926) thousand, compared to $(91,748) thousand for the same period in 2023, indicating an improvement of approximately 30.3%[16] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $267.2 million as of September 30, 2024[6] - Cash and cash equivalents decreased from $65,064 thousand to $38,084 thousand, a reduction of about 41.4%[15] - Total current assets decreased from $410,188 thousand to $308,345 thousand, a decline of approximately 25%[15] - Total assets decreased from $661,134 thousand as of December 31, 2023, to $558,506 thousand as of September 30, 2024, representing a decline of approximately 15.6%[15] Deferred Revenue and Share-based Compensation - The current portion of deferred revenue increased from $48,630 thousand to $51,856 thousand, an increase of approximately 4.6%[15] - Share-based compensation expense for the nine months ended September 30, 2024, was $40,778 thousand, compared to $47,352 thousand for the same period in 2023, a decrease of about 13.9%[20] Immune Medicine Revenue - Immune Medicine revenue was $9.0 million, reflecting a 32% decrease from the prior year[4]

Core Insights - Adaptive Biotechnologies Corporation announced that clonoSEQ is now covered by Medicare for measurable residual disease (MRD) assessment in patients with mantle cell lymphoma (MCL) [1][4] Group 1: 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 [9] - The company leverages its proprietary immune medicine platform to identify and quantify specific DNA sequences in malignant cells, enabling clinicians to assess and monitor MRD [7] Group 2: Product Details - clonoSEQ is the first and only FDA-cleared in vitro diagnostic test for detecting MRD in various hematologic malignancies, including MCL, multiple myeloma, chronic lymphocytic leukemia, and B-cell acute lymphoblastic leukemia [6][7] - The updated Medicare coverage policy allows for clonoSEQ MRD testing for all MCL patients, regardless of their treatment regimen, significantly expanding access for the Medicare population [4][5] Group 3: Market Context - MCL has an annual incidence of approximately 4,000 cases in the U.S., and patients often experience multiple relapses, highlighting the need for effective monitoring tools [2][3] - The clonoSEQ test provides a minimally invasive, blood-based option for assessing treatment response and monitoring for recurrence, which is critical given the aggressive nature of MCL [3][4]