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]

Core Insights - Adaptive Biotechnologies reported a quarterly loss of $0.22 per share, better than the Zacks Consensus Estimate of a loss of $0.30, and an improvement from a loss of $0.35 per share a year ago, resulting in an earnings surprise of 26.67% [1] - The company achieved revenues of $46.44 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 14.41% and showing a year-over-year increase from $37.92 million [2] - The stock has gained approximately 17.4% year-to-date, underperforming the S&P 500's gain of 24.3% [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 -$0.30 on revenues of $46.34 million, and for the current fiscal year, it is -$1.23 on revenues of $172.06 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Adaptive Biotechnologies belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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]

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 ...