Core Viewpoint - Adaptive Biotechnologies Corporation has announced that its clonoSEQ® test has received IVDR Class C certification in the European Union, marking it as the first and only test certified for detecting minimal residual disease (MRD) in lymphoid malignancies [1][2]. 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 aims to develop immune-driven clinical products tailored to individual patients, addressing diseases such as cancer, autoimmune disorders, and infectious diseases [9]. Product Details - clonoSEQ is the first FDA-cleared in vitro diagnostic test for detecting MRD in patients with multiple myeloma, B-cell acute lymphoblastic leukemia, and chronic lymphocytic leukemia [6]. - The test leverages a proprietary immune medicine platform to identify and quantify specific DNA sequences in malignant cells, providing standardized and sensitive MRD measurements [7]. Regulatory Achievement - The transition from the previous In Vitro Diagnostics Directive (IVDD) to the more stringent In Vitro Diagnostic Regulation (IVDR) reflects significant advancements in medical diagnostics [2]. - clonoSEQ's IVDR certification allows for compliance with rigorous safety and quality standards, enhancing its credibility among healthcare professionals [4]. Clinical Impact - clonoSEQ is increasingly adopted in patient care, providing real-time insights into disease progression and enabling personalized treatment approaches for patients with lymphoid malignancies [3]. - The test has been included in numerous global clinical trials for therapies approved by the European Medicines Agency and the U.S. Food and Drug Administration [4]. Market Presence - clonoSEQ is utilized by over 3,700 clinicians and is involved in more than 160 active biopharma-sponsored trials [5]. - The test is available in several European countries through partnerships with major academic laboratories, with plans for further expansion in 2024 [5].

Adaptive Second Quarter 2024 Earnings Conference Call This presentation has been prepared by Adaptive Biotechnologies Corporation ("we," "us," "our," "Adaptive" or the "Company") and is made for informational purposes only. The information set forth herein does not purport to be complete or to contain all relevant information. Statements contained herein are made as of the date of this presentation unless stated otherwise. This presentation shall not constitute an offer to sell or the solicitation of an off ...

Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Q2 2024 Earnings Conference Call August 1, 2024 4:30 PM ET Company Participants Karina Calzadilla – Head-Investor Relations Chad Robins – Chief Executive Officer and Co-Founder Kyle Piskel – Chief Financial Officer Susan Bobulsky – Chief Commercial Officer-MRD Conference Call Participants Mark Massaro – BTIG David Westenberg – Piper Sandler Tejas Savant – Morgan Stanley Dan Brennan – TD Cowen Andrew Brackmann – William Blair Rachel Vatnsdal – JPMorgan Sung ...

For the quarter ended June 2024, Adaptive Biotechnologies (ADPT) reported revenue of $43.19 million, down 11.7% over the same period last year. EPS came in at -$0.26, compared to -$0.33 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $38.52 million, representing a surprise of +12.13%. The company delivered an EPS surprise of +18.75%, with the consensus EPS estimate being -$0.32. While investors closely watch year-over-year changes in headline numbers -- revenue and ...

Adaptive Biotechnologies (ADPT) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.32. This compares to loss of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 18.75%. A quarter ago, it was expected that this lifesciences research company would post a loss of $0.35 per share when it actually produced a loss of $0.33, delivering a surprise of 5.71%. Over the last four qu ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements and detailed notes on accounting policies, revenue, investments, and equity [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased by **$76.3 million** due to reduced current assets, with liabilities and shareholders' equity also declining | Metric (in thousands) | June 30, 2024 | December 31, 2023 | Change ($) | Change (%) | | :-------------------- | :------------ | :---------------- | :--------- | :--------- | | Total Assets | $584,872 | $661,134 | $(76,262) | (11.5)% | | Total Current Assets | $351,552 | $410,188 | $(58,636) | (14.3)% | | Total Liabilities | $343,442 | $352,856 | $(9,414) | (2.7)% | | Total Shareholders' Equity | $241,430 | $308,278 | $(66,848) | (21.7)% | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2024 revenue decreased **11.7%** with improved net loss; H1 2024 revenue decreased **1.7%** and net loss improved **11.2%** | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Revenue | $43,190 | $48,926 | $(5,736) | (11.7)% | | Total Operating Expenses | $90,508 | $96,744 | $(6,236) | (6.4)% | | Net Loss Attributable to Adaptive Biotechnologies Corporation | $(46,222) | $(47,810) | $1,588 | 3.3% | | Net Loss Per Share (Basic & Diluted) | $(0.31) | $(0.33) | $0.02 | 6.1% | | Metric (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Revenue | $85,063 | $86,573 | $(1,510) | (1.7)% | | Total Operating Expenses | $181,143 | $191,584 | $(10,441) | (5.4)% | | Net Loss Attributable to Adaptive Biotechnologies Corporation | $(93,729) | $(105,509) | $11,780 | 11.2% | | Net Loss Per Share (Basic & Diluted) | $(0.64) | $(0.73) | $0.09 | 12.3% | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The company reported a comprehensive loss of **$46.3 million** for Q2 2024 and **$94.2 million** for H1 2024, driven by net losses and investment changes | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Change ($) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | | Net Loss | $(46,248) | $(47,811) | $1,563 | | Change in Unrealized Gains and Losses on Investments | $(76) | $1,012 | $(1,088) | | Comprehensive Loss Attributable to Adaptive Biotechnologies Corporation | $(46,298) | $(46,798) | $500 | | Metric (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change ($) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | | Net Loss | $(93,781) | $(105,511) | $11,730 | | Change in Unrealized Gains and Losses on Investments | $(397) | $3,223 | $(3,620) | | Comprehensive Loss Attributable to Adaptive Biotechnologies Corporation | $(94,126) | $(102,286) | $8,160 | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Total shareholders' equity decreased from **$308.3 million** to **$241.4 million** due to accumulated deficit, partially offset by share-based compensation | Metric (in thousands) | June 30, 2024 | December 31, 2023 | Change ($) | | :-------------------- | :------------ | :---------------- | :--------- | | Common Stock | $14 | $14 | $0 | | Additional Paid-In Capital | $1,479,832 | $1,452,502 | $27,330 | | Accumulated Other Comprehensive (Loss) Gain | $(182) | $215 | $(397) | | Accumulated Deficit | $(1,238,061) | $(1,144,332) | $(93,729) | | Total Shareholders' Equity | $241,430 | $308,278 | $(66,848) | - Share-based compensation expense contributed **$27.3 million** to additional paid-in capital during the six months ended June 30, 2024[16](index=16&type=chunk)[190](index=190&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2024 cash used in operating activities decreased significantly, while cash provided by investing activities also saw a substantial reduction | Metric (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Net Cash Used in Operating Activities | $(55,656) | $(82,708) | $27,052 | (32.7)% | | Net Cash Provided by Investing Activities | $50,386 | $100,302 | $(49,916) | (49.8)% | | Net Cash Provided by Financing Activities | $74 | $2,141 | $(2,067) | (96.5)% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations for the financial statements, covering business, accounting policies, revenue, investments, leases, equity, and segment performance [1. Organization and Description of Business](index=11&type=section&id=1.%20Organization%20and%20Description%20of%20Business) Adaptive Biotechnologies focuses on immune medicine, leveraging its platform to decode the adaptive immune system for disease diagnosis and treatment - The company's core business is advancing immune medicine through its proprietary platform to diagnose and treat diseases like cancer and autoimmune disorders[20](index=20&type=chunk)[194](index=194&type=chunk) - The business is structured around two key areas: Minimal Residual Disease (MRD) and Immune Medicine, developing clinical products and services tailored to individual patients[20](index=20&type=chunk)[194](index=194&type=chunk) [2. Significant Accounting Policies](index=11&type=section&id=2.%20Significant%20Accounting%20Policies) Financial statements are prepared under GAAP, requiring significant estimates, and the company is evaluating new accounting pronouncements - The condensed consolidated financial statements are prepared in accordance with GAAP, involving estimates and judgments in areas like revenue recognition, share-based compensation, and asset impairment[22](index=22&type=chunk)[196](index=196&type=chunk) - The company is evaluating the impact of new FASB ASUs: ASU No. 2023-07 (Segment Reporting) effective for fiscal years beginning after December 15, 2024, and ASU No. 2023-09 (Income Taxes) effective for annual periods beginning after December 15, 2024[33](index=33&type=chunk)[34](index=34&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [3. Revenue](index=16&type=section&id=3.%20Revenue) Q2 2024 total revenue decreased **11.7%** to **$43.2 million** due to lower Immune Medicine collaboration revenue, while MRD revenue grew strongly | Revenue Segment (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Change ($) | Change (%) | | :----------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | MRD Revenue | $35,284 | $25,882 | $9,402 | 36.3% | | Immune Medicine Revenue | $7,906 | $23,044 | $(15,138) | (65.7)% | | Total Revenue | $43,190 | $48,926 | $(5,736) | (11.7)% | | Revenue Segment (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change ($) | Change (%) | | :----------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | MRD Revenue | $67,910 | $47,309 | $20,601 | 43.5% | | Immune Medicine Revenue | $17,153 | $39,264 | $(22,111) | (56.3)% | | Total Revenue | $85,063 | $86,573 | $(1,510) | (1.7)% | - As of June 30, 2024, the company could receive up to an additional **$427.5 million** in future milestone payments from regulatory approvals related to MRD data[36](index=36&type=chunk)[210](index=210&type=chunk) - The Genentech collaboration agreement, entered in December 2018, has potential future payments of up to **$1.8 billion**, including regulatory, development, and commercial milestones, plus tiered royalties[37](index=37&type=chunk)[211](index=211&type=chunk) [4. Deferred Revenue](index=19&type=section&id=4.%20Deferred%20Revenue) Deferred revenue, primarily from the Genentech Agreement, slightly decreased from **$93.4 million** to **$91.1 million**, reflecting revenue recognition | Metric (in thousands) | Amount | | :-------------------- | :----- | | Deferred revenue balance at December 31, 2023 | $93,423 | | Additions to deferred revenue during the period | $26,170 | | Revenue recognized during the period | $(28,524) | | Deferred revenue balance at June 30, 2024 | $91,069 | - Deferred revenue from the Genentech Agreement accounts for **$11.8 million** (current) and **$36.5 million** (non-current) as of June 30, 2024[215](index=215&type=chunk) - The majority of non-current deferred revenue is expected to be recognized over approximately four years from June 30, 2024[215](index=215&type=chunk) [5. Fair Value Measurements](index=19&type=section&id=5.%20Fair%20Value%20Measurements) Financial assets measured at fair value totaled **$273.3 million**, primarily in Level 1 money market funds and Level 2 U.S. government treasury securities | Financial Assets (in thousands) | June 30, 2024 (Total) | December 31, 2023 (Total) | | :------------------------------ | :-------------------- | :------------------------ | | Money market funds | $32,308 | $45,123 | | Commercial paper | $10,922 | $10,630 | | U.S. government treasury securities | $220,947 | $264,426 | | Corporate bonds | $9,141 | $6,281 | | Total Financial Assets | $273,318 | $326,460 | - Level 1 securities are highly liquid money market funds, while Level 2 securities include U.S. government treasury and agency securities, commercial paper, and corporate bonds, valued based on observable market data[46](index=46&type=chunk)[220](index=220&type=chunk) [6. Investments](index=21&type=section&id=6.%20Investments) Short-term marketable securities, classified as available-for-sale, totaled **$232.1 million** with gross unrealized losses of **$184 thousand** | Short-term Marketable Securities (in thousands) | June 30, 2024 (Estimated Fair Value) | December 31, 2023 (Estimated Fair Value) | | :---------------------------------------------- | :----------------------------------- | :--------------------------------------- | | Commercial paper | $10,922 | $10,630 | | U.S. government treasury securities | $211,993 | $264,426 | | Corporate bonds | $9,141 | $6,281 | | Total | $232,056 | $281,337 | | Unrealized Losses (in thousands) | June 30, 2024 (Unrealized Loss) | | :------------------------------- | :------------------------------ | | Commercial paper | $(2) | | U.S. government treasury securities | $(179) | | Corporate bonds | $(3) | | Total | $(184) | - All impairment as of June 30, 2024, was attributed to factors other than credit loss, such as changes in interest rates[50](index=50&type=chunk)[224](index=224&type=chunk) [7. Leases](index=23&type=section&id=7.%20Leases) The company holds operating lease agreements with total undiscounted lease payments of **$114.5 million** as of June 30, 2024 | Lease Payments (in thousands) | Amount | | :---------------------------- | :----- | | Total Undiscounted Lease Payments | $114,505 | | Less: Imputed Interest Rate | $(20,329) | | Total Operating Lease Liabilities | $94,176 | | Less: Current Portion | $(9,806) | | Operating Lease Liabilities, less current portion | $84,370 | - Cash paid for lease liabilities was **$7.0 million** for the six months ended June 30, 2024, a slight increase from **$6.9 million** in the prior year[53](index=53&type=chunk)[227](index=227&type=chunk) [8. Revenue Interest Purchase Agreement](index=23&type=section&id=8.%20Revenue%20Interest%20Purchase%20Agreement) The Revenue Interest Purchase Agreement with OrbiMed is treated as debt, with a net liability of **$132.1 million** and an effective interest rate of **8.2%** - The Revenue Interest Purchase Agreement is accounted for as debt at amortized cost using the effective interest rate method[55](index=55&type=chunk)[229](index=229&type=chunk) - The effective interest rate as of June 30, 2024, was **8.2%**[56](index=56&type=chunk)[230](index=230&type=chunk) | Metric (in thousands) | Amount | | :-------------------- | :----- | | Revenue interest liability, net at December 31, 2023 | $130,660 | | Interest expense | $5,689 | | Revenue interest payable | $(4,267) | | Revenue interest liability, net at June 30, 2024 | $132,082 | [9. Commitments and Contingencies](index=25&type=section&id=9.%20Commitments%20and%20Contingencies) The company is subject to ordinary legal claims but has no material legal proceedings or incurred costs from indemnification agreements - No material legal proceedings were pending as of June 30, 2024[59](index=59&type=chunk)[233](index=233&type=chunk) - Indemnification agreements with directors and executive officers may require unlimited future payments, but no material costs have been incurred[60](index=60&type=chunk)[234](index=234&type=chunk) [10. Shareholders' Equity](index=25&type=section&id=10.%20Shareholders'%20Equity) As of June 30, 2024, the company had **147,462,201 shares** of common stock outstanding, with increased reserves for equity incentive plans - As of July 29, 2024, **147,472,201 shares** of common stock were outstanding[2](index=2&type=chunk)[176](index=176&type=chunk) - The 2019 Equity Incentive Plan and Employee Stock Purchase Plan reserves increased by **7,254,113 shares** and **1,450,822 shares**, respectively, on January 1, 2024[61](index=61&type=chunk)[235](index=235&type=chunk) [11. Equity Incentive Plans](index=26&type=section&id=11.%20Equity%20Incentive%20Plans) Stock options outstanding decreased slightly, nonvested restricted stock units increased, and total share-based compensation expense was **$27.3 million** for H1 2024 | Stock Option Activity (Six Months Ended June 30, 2024) | Shares Subject to Outstanding Stock Options | | :----------------------------------------------------- | :------------------------------------------ | | Outstanding at December 31, 2023 | 12,875,045 | | Granted | 1,008,364 | | Forfeited | (696,147) | | Expired | (319,633) | | Exercised | (45,900) | | Outstanding at June 30, 2024 | 12,821,729 | | Restricted Stock Unit Activity (Six Months Ended June 30, 2024) | Restricted Stock Units Outstanding | | :-------------------------------------------------------------- | :--------------------------------- | | Nonvested outstanding at December 31, 2023 | 9,669,460 | | Granted | 5,406,574 | | Forfeited | (2,019,499) | | Vested | (2,334,037) | | Nonvested outstanding at June 30, 2024 | 10,722,498 | | Share-Based Compensation Expense (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :---------------------------------------------- | :----------------------------- | :----------------------------- | | Total Share-Based Compensation Expense | $27,256 | $32,016 | [12. Restructurings](index=30&type=section&id=12.%20Restructurings) The company incurred **$8.9 million** in restructuring costs in H1 2024, including **$7.2 million** in impairment charges, to align operations and consolidate workflows - Total restructuring costs for the six months ended June 30, 2024, were **$8.9 million**[84](index=84&type=chunk)[258](index=258&type=chunk) - Impairment charges of **$7.2 million** were recognized, with **$1.1 million** related to right-of-use assets, **$3.3 million** to laboratory equipment and leasehold improvements, and **$2.8 million** to halted software enhancements[84](index=84&type=chunk)[258](index=258&type=chunk) [13. Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders](index=32&type=section&id=13.%20Net%20Loss%20Per%20Share%20Attributable%20to%20Adaptive%20Biotechnologies%20Corporation%20Common%20Shareholders) Basic and diluted net loss per share was **$(0.31)** for Q2 and **$(0.64)** for H1 2024, with all potential common stock equivalents being anti-dilutive | Metric | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :----------------------------- | | Net Loss Per Share (Basic & Diluted) | $(0.31) | $(0.64) | | Anti-Dilutive Common Stock Equivalents | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :----------------------------- | | Stock options outstanding | 13,055,050 | 13,070,461 | | Nonvested restricted stock units outstanding | 11,174,598 | 10,757,897 | | Maximum nonvested market-based restricted stock units outstanding eligible to be earned | 3,771,579 | 3,159,668 | | Total | 28,001,227 | 26,988,026 | [14. Segment Information](index=33&type=section&id=14.%20Segment%20Information) In 2024, the company realigned into MRD and Immune Medicine segments, with MRD's Adjusted EBITDA deficit significantly reduced and Immune Medicine's deficit increasing - The company operates in two segments: MRD (commercial diagnostics) and Immune Medicine (drug discovery)[265](index=265&type=chunk) | Segment (in thousands) | Three Months Ended June 30, 2024 (Adjusted EBITDA) | Three Months Ended June 30, 2023 (Adjusted EBITDA) | Change ($) | Change (%) | | :--------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------- | :--------- | | MRD Adjusted EBITDA | $(11,289) | $(23,079) | $11,790 | (51)% | | Immune Medicine Adjusted EBITDA | $(7,033) | $1,264 | $(8,297) | (656)% | | Segment (in thousands) | Six Months Ended June 30, 2024 (Adjusted EBITDA) | Six Months Ended June 30, 2023 (Adjusted EBITDA) | Change ($) | Change (%) | | :--------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------- | :--------- | | MRD Adjusted EBITDA | $(28,548) | $(49,465) | $20,917 | (42)% | | Immune Medicine Adjusted EBITDA | $(13,960) | $(6,163) | $(7,797) | 127% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, condition, and outlook, detailing revenue drivers, expense trends, restructuring impacts, and liquidity [Overview](index=37&type=section&id=Overview) Adaptive Biotechnologies, an immune medicine company, reported a slight revenue decrease and improved net loss for H1 2024, maintaining a strong cash position - The company's immune medicine platform leverages proprietary technologies to decode the adaptive immune system for disease diagnosis and treatment, with commercial products in MRD (clonoSEQ) and Immune Medicine (Adaptive Immunosequencing, Genentech collaboration)[101](index=101&type=chunk)[275](index=275&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :----------------------------- | | Revenue | $43,200 | $85,100 | | Net Loss Attributable to Adaptive Biotechnologies Corporation | $(46,200) | $(93,700) | | Cash, Cash Equivalents and Marketable Securities (as of June 30, 2024) | $291,900 | N/A | [Restructurings](index=37&type=section&id=Restructurings) Restructuring plans in H1 2024 resulted in **$8.9 million** in costs, including **$7.2 million** in impairment charges for long-lived assets and leased space - Restructuring plans in H1 2024 led to workforce reductions, asset impairments, and consolidation of R&D workflows[102](index=102&type=chunk)[276](index=276&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :----------------------------- | | Restructuring Costs | $7,900 | $8,900 | | Impairment Charges | $7,200 | $7,200 | [Segment Information](index=39&type=section&id=Segment%20Information) In 2024, the company reorganized into MRD and Immune Medicine segments, with performance evaluated by the CEO based on revenue and Adjusted EBITDA - The company's business is now organized into two reporting segments: MRD and Immune Medicine, based on market opportunity in commercial diagnostics and drug discovery, respectively[103](index=103&type=chunk)[277](index=277&type=chunk) - The CEO, as the chief operating decision maker, reviews operating results and financial information at the segment level to make resource allocation decisions[25](index=25&type=chunk)[199](index=199&type=chunk) [Components of Results of Operations](index=39&type=section&id=Components%20of%20Results%20of%20Operations) This section outlines the various components of the company's results of operations, including revenue, cost of revenue, and operating expenses [Revenue](index=39&type=section&id=Revenue) Revenue is derived from MRD diagnostic and research services and Immune Medicine services, with MRD revenue expected to increase long-term - MRD revenue sources include clonoSEQ reports for clinical customers, MRD sample testing for biopharmaceutical/academic institutions, and international technology transfers[104](index=104&type=chunk)[278](index=278&type=chunk) - Immune Medicine revenue sources include Adaptive Immunosequencing services for biopharmaceutical/academic customers and collaboration agreements, notably with Genentech[104](index=104&type=chunk)[278](index=278&type=chunk) - MRD revenue is expected to increase long-term, while Immune Medicine revenue is expected to decrease short-term due to the Genentech Agreement[104](index=104&type=chunk)[105](index=105&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk) [Cost of Revenue](index=41&type=section&id=Cost%20of%20Revenue) Cost of revenue includes materials, personnel, and facility costs, expected to increase in absolute dollars long-term but decrease per sample - Cost of revenue components include materials, personnel, shipping, equipment, and allocated facility costs[106](index=106&type=chunk)[280](index=280&type=chunk) - Long-term, cost of revenue is expected to increase in absolute dollars but decrease per sample due to improved laboratory utilization, automation, and value engineering[106](index=106&type=chunk)[280](index=280&type=chunk) [Research and Development Expenses](index=41&type=section&id=Research%20and%20Development%20Expenses) R&D expenses cover laboratory materials, personnel, and contract services, expected to decrease in the short term and as a percentage of revenue long term - R&D expenses include laboratory materials, personnel, equipment, allocated facility/IT costs, and contract services, supporting existing assays, new technologies, and the immune medicine platform[107](index=107&type=chunk)[281](index=281&type=chunk) - Costs related to the Genentech Agreement and clinical/analytical validations for future products are included in R&D[107](index=107&type=chunk)[281](index=281&type=chunk) - R&D expenses are expected to decrease in the short term and as a percentage of revenue in the long term[107](index=107&type=chunk)[281](index=281&type=chunk) [Sales and Marketing Expenses](index=41&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses cover personnel, advertising, and customer education, expected to moderately increase short-term but decrease as a percentage of revenue long-term - Sales and marketing expenses cover personnel (sales, product management, marketing, reimbursement), advertising, customer education, and market analysis[108](index=108&type=chunk)[282](index=282&type=chunk) - Short-term, these expenses are expected to moderately increase in absolute dollars, but long-term, they are projected to decrease as a percentage of revenue[108](index=108&type=chunk)[282](index=282&type=chunk) [General and Administrative Expenses](index=42&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses include personnel, insurance, and legal fees, expected to moderately increase short-term but decrease as a percentage of revenue long-term - G&A expenses include personnel for executive, legal, finance, HR, and administrative functions, as well as insurance, external legal, accounting, and consulting fees[109](index=109&type=chunk)[283](index=283&type=chunk) - G&A expenses are expected to moderately increase in the short term but decrease as a percentage of revenue in the long term[109](index=109&type=chunk)[283](index=283&type=chunk) [Interest Expense](index=42&type=section&id=Interest%20Expense) Interest expense is primarily associated with the revenue interest liability from the Purchase Agreement, with fluctuations in forecasted revenue prospectively impacting this expense - Interest expense includes costs from the revenue interest liability related to the Purchase Agreement and noncash interest from amortizing deferred issuance costs[110](index=110&type=chunk)[284](index=284&type=chunk) - The effective interest rate method is used to amortize the obligation, and changes in forecasted revenue will impact future interest expense[110](index=110&type=chunk)[284](index=284&type=chunk) [Statements of Operations Data and Other Financial and Operating Data](index=42&type=section&id=Statements%20of%20Operations%20Data%20and%20Other%20Financial%20and%20Operating%20Data) This section summarizes the company's statements of operations data and other key financial metrics for Q2 and H1 2024 and 2023 | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $43,190 | $48,926 | $85,063 | $86,573 | | Total Operating Expenses | $90,508 | $96,744 | $181,143 | $191,584 | | Loss from Operations | $(47,318) | $(47,818) | $(96,080) | $(105,011) | | Net Loss Attributable to Adaptive Biotechnologies Corporation | $(46,222) | $(47,810) | $(93,729) | $(105,509) | | Net Loss Per Share | $(0.31) | $(0.33) | $(0.64) | $(0.73) | | Adjusted EBITDA | $(21,446) | $(24,819) | $(49,626) | $(61,917) | [Comparison of the Three Months Ended June 30, 2024 and 2023](index=44&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202024%20and%202023) Q2 2024 total revenue decreased **12%** due to lower Immune Medicine collaboration revenue, while MRD revenue increased **36%** and operating expenses decreased [Revenue](index=44&type=section&id=Revenue) Total revenue decreased by **$5.7 million** (**12%**) to **$43.2 million**, with MRD revenue increasing **36%** and Immune Medicine revenue decreasing **66%** | Revenue (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--------------------- | :---------- | :---------- | :---------- | :--------- | | Total MRD Revenue | $35,284 | $25,882 | $9,402 | 36% | | Total Immune Medicine Revenue | $7,906 | $23,044 | $(15,138) | (66)% | | Total Revenue | $43,190 | $48,926 | $(5,736) | (12)% | - clonoSEQ test volume increased by **36%** to **18,520 tests** in Q2 2024 from **13,665 tests** in Q2 2023[115](index=115&type=chunk)[289](index=289&type=chunk) [Cost of Revenue](index=44&type=section&id=Cost%20of%20Revenue) Cost of revenue increased by **$1.4 million** (**8%**) to **$19.3 million**, driven by higher material and shipping costs, partially offset by reduced overhead | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Cost of Revenue | $19,317 | $17,910 | $1,407 | 8% | - Increase driven by **$2.4 million** in cost of materials (**$1.4 million** from inventory reserve, **$1.0 million** from increased sample volume) and **$0.5 million** in shipping[116](index=116&type=chunk)[290](index=290&type=chunk) - Partially offset by a **$2.7 million** decrease in overhead costs due to reduced headcount and laboratory consolidation[116](index=116&type=chunk)[290](index=290&type=chunk) [Research and Development](index=44&type=section&id=Research%20and%20Development) Research and development expenses decreased by **$6.9 million** (**21%**) to **$25.4 million**, mainly due to lower personnel costs and reduced drug discovery investments | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Research and Development | $25,353 | $32,237 | $(6,884) | (21)% | - Decrease primarily from a **$3.9 million** reduction in personnel costs and a **$2.5 million** decrease in materials and allocated production laboratory expenses[121](index=121&type=chunk)[295](index=295&type=chunk) - Reduced investments in drug discovery (including Genentech collaboration) and TCR-Antigen Map development activities contributed to the decline[121](index=121&type=chunk)[295](index=295&type=chunk) [Sales and Marketing](index=46&type=section&id=Sales%20and%20Marketing) Sales and marketing expenses decreased by **$3.6 million** (**15%**) to **$20.3 million**, driven by reduced headcount and lower clonoSEQ marketing activities | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Sales and Marketing | $20,314 | $23,872 | $(3,558) | (15)% | - Decrease primarily due to a **$3.0 million** reduction in personnel costs and a **$0.9 million** decrease in marketing expenses[122](index=122&type=chunk)[296](index=296&type=chunk) [General and Administrative](index=46&type=section&id=General%20and%20Administrative) General and administrative expenses decreased by **$4.4 million** (**20%**) to **$17.9 million**, mainly due to reduced personnel, facility, and consulting costs | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | General and Administrative | $17,895 | $22,302 | $(4,407) | (20)% | - Decrease primarily from a **$2.8 million** reduction in personnel costs and a **$0.7 million** decrease in building, facility, and depreciation expenses[123](index=123&type=chunk)[297](index=297&type=chunk) [Impairment of Long-Lived Assets](index=46&type=section&id=Impairment%20of%20Long-Lived%20Assets) The company recognized **$7.2 million** in impairment charges for long-lived assets during Q2 2024 due to restructuring activities | Metric (in thousands) | 2024 | 2023 | Change ($) | | :-------------------- | :---------- | :---------- | :---------- | | Impairment of Long-Lived Assets | $7,205 | $0 | $7,205 | - The impairment was a direct result of various restructuring activities in 2024[124](index=124&type=chunk)[298](index=298&type=chunk) [Interest and Other Income, Net](index=46&type=section&id=Interest%20and%20Other%20Income,%20Net) Interest and other income, net, increased by **$0.2 million** (**4%**) to **$3.8 million**, driven by higher net interest income and investment amortization | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Interest and Other Income, Net | $3,766 | $3,612 | $154 | 4% | - Increase attributed to higher interest rates and related yields on invested cash, cash equivalents, and marketable securities[125](index=125&type=chunk)[299](index=299&type=chunk) [Interest Expense](index=46&type=section&id=Interest%20Expense) Interest expense decreased by **$0.9 million** (**25%**) to **$2.7 million**, primarily due to a change in assumptions regarding the Purchase Agreement repayment timeframe | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Interest Expense | $(2,696) | $(3,605) | $909 | (25)% | - The decrease was attributable to a change in assumptions regarding the timeframe for full repayment of the Purchase Agreement[126](index=126&type=chunk)[300](index=300&type=chunk) [Segment Adjusted EBITDA](index=48&type=section&id=Segment%20Adjusted%20EBITDA) Q2 2024 MRD Adjusted EBITDA deficit reduced by **$11.8 million** (**51%**), while Immune Medicine's deficit increased by **$8.3 million** (**656%**) due to reduced revenue | Segment (in thousands) | 2024 (Adjusted EBITDA) | 2023 (Adjusted EBITDA) | Change ($) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | MRD Adjusted EBITDA | $(11,289) | $(23,079) | $11,790 | (51)% | | Immune Medicine Adjusted EBITDA | $(7,033) | $1,264 | $(8,297) | (656)% | - MRD Adjusted EBITDA deficit reduction was driven by a **$9.4 million** increase in MRD revenue and operating expense reductions[127](index=127&type=chunk)[301](index=301&type=chunk) - Immune Medicine Adjusted EBITDA deficit increase was primarily due to a **$15.1 million** reduction in Immune Medicine revenue, partially offset by operating expense reductions[127](index=127&type=chunk)[301](index=301&type=chunk) [Comparison of the Six Months Ended June 30, 2024 and 2023](index=48&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202024%20and%202023) H1 2024 total revenue decreased **2%**, with MRD revenue up **44%** and Immune Medicine revenue down **56%**, while operating expenses decreased [Revenue](index=48&type=section&id=Revenue) Total revenue decreased by **$1.5 million** (**2%**) to **$85.1 million**, with MRD revenue increasing **44%** and Immune Medicine revenue decreasing **56%** | Revenue (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--------------------- | :---------- | :---------- | :---------- | :--------- | | Total MRD Revenue | $67,910 | $47,309 | $20,601 | 44% | | Total Immune Medicine Revenue | $17,153 | $39,264 | $(22,111) | (56)% | | Total Revenue | $85,063 | $86,573 | $(1,510) | (2)% | - clonoSEQ test volume increased by **38%** to **35,560 tests** in H1 2024 from **25,744 tests** in H1 2023[128](index=128&type=chunk)[302](index=302&type=chunk) [Cost of Revenue](index=48&type=section&id=Cost%20of%20Revenue) Cost of revenue increased by **$0.8 million** (**2%**) to **$37.4 million**, driven by higher material and shipping costs, partially offset by reduced overhead | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Cost of Revenue | $37,368 | $36,591 | $777 | 2% | - Increase primarily from a **$2.4 million** increase in cost of materials (**$1.7 million** from increased sample volume, **$0.7 million** from inventory reserve) and **$0.6 million** in shipping[129](index=129&type=chunk)[303](index=303&type=chunk) - Partially offset by a **$4.0 million** decrease in overhead costs due to reduced headcount and laboratory consolidation[130](index=130&type=chunk)[304](index=304&type=chunk) [Research and Development](index=50&type=section&id=Research%20and%20Development) Research and development expenses decreased by **$9.2 million** (**14%**) to **$55.6 million**, mainly due to lower personnel costs and reduced drug discovery investments | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Research and Development | $55,598 | $64,838 | $(9,240) | (14)% | - Decrease primarily from a **$4.1 million** reduction in personnel costs and a **$3.7 million** decrease in materials and allocated production laboratory expenses[133](index=133&type=chunk)[307](index=307&type=chunk) - Reduced investments in drug discovery (including Genentech collaboration) and TCR-Antigen Map development activities contributed to the decline[133](index=133&type=chunk)[307](index=307&type=chunk) [Sales and Marketing](index=50&type=section&id=Sales%20and%20Marketing) Sales and marketing expenses decreased by **$3.5 million** (**8%**) to **$42.6 million**, driven by reduced headcount, lower marketing activities, and decreased facility costs | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Sales and Marketing | $42,633 | $46,180 | $(3,547) | (8)% | - Decrease primarily due to a **$3.3 million** reduction in personnel costs and a **$0.8 million** decrease in marketing expenses[134](index=134&type=chunk)[308](index=308&type=chunk) [General and Administrative](index=50&type=section&id=General%20and%20Administrative) General and administrative expenses decreased by **$5.6 million** (**13%**) to **$37.5 million**, mainly due to reduced personnel, facility, insurance, and consulting fees | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | General and Administrative | $37,492 | $43,133 | $(5,641) | (13)% | - Decrease primarily from a **$3.0 million** reduction in personnel costs and a **$2.0 million** decrease in building, facility, and depreciation expenses[135](index=135&type=chunk)[309](index=309&type=chunk) [Impairment of Long-Lived Assets](index=51&type=section&id=Impairment%20of%20Long-Lived%20Assets) The company recognized **$7.2 million** in impairment charges for long-lived assets during H1 2024 due to restructuring activities | Metric (in thousands) | 2024 | 2023 | Change ($) | | :-------------------- | :---------- | :---------- | :---------- | | Impairment of Long-Lived Assets | $7,205 | $0 | $7,205 | - The impairment was a direct result of various restructuring activities in 2024[138](index=138&type=chunk)[312](index=312&type=chunk) [Interest and Other Income, Net](index=52&type=section&id=Interest%20and%20Other%20Income,%20Net) Interest and other income, net, increased by **$1.4 million** (**20%**) to **$8.0 million**, driven by higher net interest income and investment amortization | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Interest and Other Income, Net | $7,988 | $6,636 | $1,352 | 20% | - Increase attributed to higher interest rates and related yields on invested cash, cash equivalents, and marketable securities[139](index=139&type=chunk)[313](index=313&type=chunk) [Interest Expense](index=52&type=section&id=Interest%20Expense) Interest expense decreased by **$1.4 million** (**20%**) to **$5.7 million**, primarily due to a change in assumptions regarding the Purchase Agreement repayment timeframe | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :--------- | | Interest Expense | $(5,689) | $(7,136) | $1,447 | (20)% | - The decrease was attributable to a change in assumptions regarding the timeframe for full repayment of the Purchase Agreement[140](index=140&type=chunk)[314](index=314&type=chunk) [Segment Adjusted EBITDA](index=52&type=section&id=Segment%20Adjusted%20EBITDA) H1 2024 MRD Adjusted EBITDA deficit reduced by **$20.9 million** (**42%**), while Immune Medicine's deficit increased by **$7.8 million** (**127%**) due to reduced revenue | Segment (in thousands) | 2024 (Adjusted EBITDA) | 2023 (Adjusted EBITDA) | Change ($) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | MRD Adjusted EBITDA | $(28,548) | $(49,465) | $20,917 | (42)% | | Immune Medicine Adjusted EBITDA | $(13,960) | $(6,163) | $(7,797) | 127% | - MRD Adjusted EBITDA deficit reduction was primarily attributable to a **$20.6 million** increase in MRD revenue[141](index=141&type=chunk)[315](index=315&type=chunk) - Immune Medicine Adjusted EBITDA deficit increase was primarily due to a **$22.1 million** reduction in Immune Medicine revenue, partially offset by operating expense reductions[141](index=141&type=chunk)[315](index=315&type=chunk) [Adjusted EBITDA](index=52&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, improved to **$(49.6) million** for H1 2024, used by management to evaluate business performance - Adjusted EBITDA is a non-GAAP measure that adjusts net loss for interest and other income, interest expense, income tax, depreciation and amortization, impairment costs, restructuring expense, and share-based compensation[142](index=142&type=chunk)[316](index=316&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :----------------------------- | | Net Loss Attributable to Adaptive Biotechnologies Corporation | $(46,222) | $(93,729) | | Adjusted EBITDA | $(21,446) | $(49,626) | - Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from GAAP results[142](index=142&type=chunk)[316](index=316&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company has an accumulated deficit of **$1.2 billion** but **$291.9 million** in cash, cash equivalents, and marketable securities, sufficient for the next 12 months - The company has an accumulated deficit of **$1.2 billion** as of June 30, 2024, and has historically incurred losses and negative cash flows from operations[146](index=146&type=chunk)[320](index=320&type=chunk) - As of June 30, 2024, cash, cash equivalents, and marketable securities totaled **$291.9 million**, expected to fund operations for at least the next 12 months[146](index=146&type=chunk)[320](index=320&type=chunk) - Future funding may include additional installments under the Purchase Agreement, equity or convertible debt sales, credit facilities, or other debt financing[146](index=146&type=chunk)[320](index=320&type=chunk) [Contractual Obligations](index=55&type=section&id=Contractual%20Obligations) No material changes to contractual obligations since December 31, 2023, with details on leases and the Revenue Interest Purchase Agreement provided in notes - No material changes to contractual obligations and commitments outside the ordinary course of business since December 31, 2023[148](index=148&type=chunk)[322](index=322&type=chunk) - Information on lease agreements and the Revenue Interest Purchase Agreement is detailed in Note 7 and Note 8, respectively[148](index=148&type=chunk)[322](index=322&type=chunk) [Cash Flows](index=55&type=section&id=Cash%20Flows) H1 2024 net cash used in operating activities decreased to **$55.7 million**, while net cash provided by investing activities decreased to **$50.4 million** | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Used in Operating Activities | $(55,656) | $(82,708) | | Net Cash Provided by Investing Activities | $50,386 | $100,302 | | Net Cash Provided by Financing Activities | $74 | $2,141 | [Operating Activities](index=55&type=section&id=Operating%20Activities) Cash used in operating activities decreased to **$55.7 million** for H1 2024, primarily due to a lower net loss and favorable changes in operating assets and liabilities - Cash used in operating activities was **$55.7 million**, a decrease from **$82.7 million** in the prior year[151](index=151&type=chunk)[325](index=325&type=chunk) - Key drivers included a net loss of **$93.8 million**, offset by noncash adjustments like share-based compensation (**$27.3 million**) and impairment of long-lived assets (**$7.2 million**)[151](index=151&type=chunk)[325](index=325&type=chunk) - Changes in operating assets and liabilities included a **$4.8 million** decrease in operating lease right-of-use assets and liabilities and a **$3.5 million** reduction in accounts payable[151](index=151&type=chunk)[325](index=325&type=chunk) [Investing Activities](index=56&type=section&id=Investing%20Activities) Cash provided by investing activities decreased to **$50.4 million** for H1 2024, mainly due to lower proceeds from maturities and reduced purchases of marketable securities - Cash provided by investing activities was **$50.4 million**, down from **$100.3 million** in the prior year[152](index=152&type=chunk)[326](index=326&type=chunk) - This was primarily driven by **$189.8 million** in proceeds from marketable securities maturities, offset by **$136.2 million** in purchases of marketable securities[152](index=152&type=chunk)[326](index=326&type=chunk) [Financing Activities](index=56&type=section&id=Financing%20Activities) Cash provided by financing activities was **$0.1 million** for H1 2024, solely from proceeds from the exercise of stock options - Cash provided by financing activities was **$0.1 million**, a substantial decrease from **$2.1 million** in the prior year[153](index=153&type=chunk)[327](index=327&type=chunk) - The entire amount was attributable to proceeds from the exercise of stock options[153](index=153&type=chunk)[327](index=327&type=chunk) [Net Operating Loss Carryforwards](index=56&type=section&id=Net%20Operating%20Loss%20Carryforwards) Utilization of NOL carryforwards may be limited by Section 382 rules, though no permanent federal limitations are expected, and a full valuation allowance was applied - Utilization of NOL carryforwards and credits is subject to Section 382 ownership change limitations[154](index=154&type=chunk)[328](index=328&type=chunk) - No permanent limitations on federal NOLs are expected based on analysis through December 31, 2023[154](index=154&type=chunk)[328](index=328&type=chunk) - A full valuation allowance was applied against net deferred tax assets as of December 31, 2023, as realizability was not more likely than not[154](index=154&type=chunk)[328](index=328&type=chunk) [Critical Accounting Policies and Estimates](index=56&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statement preparation requires significant estimates in revenue recognition, interest imputation, goodwill, and asset impairment, with no material changes reported - Critical accounting policies and estimates include revenue recognition, imputing interest for the Purchase Agreement, goodwill, and recoverability/impairment of long-lived assets[155](index=155&type=chunk)[329](index=329&type=chunk) - These estimates involve complex issues, historical analysis, future trend predictions, and are subject to change[155](index=155&type=chunk)[329](index=329&type=chunk] - There have been no material changes to these critical accounting policies and estimates since the Annual Report on Form 10-K for the year ended December 31, 2023[155](index=155&type=chunk)[329](index=329&type=chunk] [Recent Accounting Pronouncements](index=58&type=section&id=Recent%20Accounting%20Pronouncements) The company is evaluating the impact of new accounting pronouncements, ASU No. 2023-07 (Segment Reporting) and ASU No. 2023-09 (Income Taxes) - The company is evaluating the impact of ASU No. 2023-07 (Segment Reporting) and ASU No. 2023-09 (Income Taxes) on its consolidated financial statements[33](index=33&type=chunk)[34](index=34&type=chunk)[156](index=156&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[330](index=330&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on cash and marketable securities, with no material changes or derivative use reported - The primary market risk exposure is interest rate risk, affecting cash, cash equivalents, and marketable securities[157](index=157&type=chunk)[331](index=331&type=chunk) - No material changes to market risks were reported as of June 30, 2024, compared to the Annual Report on Form 10-K for 2023[157](index=157&type=chunk)[331](index=331&type=chunk) - The company does not use derivative financial instruments for trading or managing interest rate risk[157](index=157&type=chunk)[331](index=331&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting - Disclosure controls and procedures were effective as of June 30, 2024[158](index=158&type=chunk)[332](index=332&type=chunk) - No material changes to internal control over financial reporting occurred during the three months ended June 30, 2024[158](index=158&type=chunk)[332](index=332&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings as of June 30, 2024, though routine claims are subject to ordinary course - The company is not a party to or aware of any material legal proceedings as of June 30, 2024[159](index=159&type=chunk)[333](index=333&type=chunk) - Litigation, regardless of outcome, can negatively impact the company due to defense costs and diversion of management resources[159](index=159&type=chunk)[333](index=333&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) Investing in the company's common stock involves a high degree of risk, with no material changes to previously disclosed risk factors reported - Investing in the common stock involves a high degree of risk due to a rapidly changing environment[160](index=160&type=chunk)[334](index=334&type=chunk) - No material changes to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2023, were reported[160](index=160&type=chunk)[334](index=334&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable - Not applicable[161](index=161&type=chunk)[335](index=335&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable - Not applicable[161](index=161&type=chunk)[335](index=335&type=chunk) [Item 4. Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - Not applicable[161](index=161&type=chunk)[335](index=335&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) Stacy Taylor adopted a Rule 10b5-1 trading plan on May 23, 2024, for the sale of up to **26,922 shares** of common stock - Stacy Taylor, SVP, General Counsel, and Corporate Secretary, adopted a Rule 10b5-1 trading plan on May 23, 2024[162](index=162&type=chunk)[336](index=336&type=chunk) - The plan allows for the sale of up to **26,922 shares** of common stock until December 31, 2024[162](index=162&type=chunk)[336](index=336&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL documents - Exhibits include Amended and Restated Articles of Incorporation and Bylaws[163](index=163&type=chunk)[337](index=337&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer are included pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[339](index=339&type=chunk)[340](index=340&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk) - Inline XBRL Instance Document and Taxonomy Extension Schema are also filed[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[343](index=343&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk) [Signatures](index=61&type=section&id=Signatures) The report is duly signed on August 1, 2024, by Chad Robins, CEO, and Kyle Piskel, CFO, confirming their authorization - The report was signed on August 1, 2024[174](index=174&type=chunk)[348](index=348&type=chunk) - Signatories include Chad Robins, Chief Executive Officer and Director, and Kyle Piskel, Chief Financial Officer[174](index=174&type=chunk)[348](index=348&type=chunk)

EXHIBIT 99.1 Adaptive Biotechnologies Reports Second Quarter 2024 Financial Results SEATTLE, Aug. 01, 2024 (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, 2024. "We had another strong quarter with MRD revenue growth of 36% and deliver ...

Core Insights - Adaptive Biotechnologies reported a strong quarter with a 36% growth in MRD revenue and significant reductions in operating expenses and cash burn compared to the previous year [1][2][4]. Financial Performance - Total revenue for Q2 2024 was $43.2 million, a 12% decrease from Q2 2023, with MRD revenue at $35.3 million, reflecting a 36% increase year-over-year [3][4]. - The clonoSEQ test volume increased by 36% to 18,520 tests delivered in Q2 2024 compared to Q2 2023 [2]. - Immune Medicine revenue was $7.9 million for the quarter, representing a 66% decrease from the same period last year [3]. Operating Expenses - Total operating expenses for Q2 2024 were $90.5 million, down 6% from $96.7 million in Q2 2023. Excluding impairment charges, operating expenses decreased by 14% [4]. - MRD operating expenses were $58.4 million, a 1% decrease year-over-year, while Immune Medicine operating expenses were $26.1 million, down 15% [4]. Net Loss and Adjusted EBITDA - The net loss for Q2 2024 was $46.2 million, slightly improved from a loss of $47.8 million in Q2 2023 [5]. - Adjusted EBITDA for Q2 2024 was a loss of $21.4 million, compared to a loss of $24.8 million in the same quarter last year [5]. Cash Position - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $291.9 million [6]. Updated Financial Guidance - The company raised its full-year MRD revenue guidance to between $140 million and $145 million, up from the previous range of $135 million to $140 million [7]. - Total company operating expenses are now expected to be between $340 million and $350 million, down from the previous range of $350 million to $360 million [8].

Two elements favor the case for acquiring precision medicine stocks. First, the obvious point: barring extraordinary circumstances, the broader healthcare ecosystem will always be relevant. That is, humans will always try to find treatment solutions for various conditions and diseases. Second, the underlying sector will likely be a massive one based on expert projections. According to Precedence Research, the precision medicine market size reached a valuation of $73.49 billion in 2022. By 2030, the sector i ...

Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on leveraging the adaptive immune system for disease diagnosis and treatment [2] - The company aims to decode the adaptive immune system to fully utilize its diagnostic and therapeutic capabilities [2] - Adaptive Biotechnologies operates in two main business areas: Minimal Residual Disease (MRD) and Immune Medicine, developing clinical diagnostics and partnering with biopharmaceutical companies [2] Financial Reporting - The company will report its financial results for the second quarter of 2024 after market close on August 1, 2024 [1] - A conference call will be held at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss the results [1] - The live audio of the webcast will be available on the company's website and archived for replay within 24 hours [1]