Workflow
Adaptimmune(ADAP) - 2024 Q2 - Quarterly Report
ADAPAdaptimmune(ADAP)2024-08-12 11:23
Transcript

Drug Approvals and Clinical Trials - Tecelra received FDA approval on August 1, 2024, for the treatment of advanced synovial sarcoma, showing an overall response rate (ORR) of 43% in a trial with 44 patients[115] - The median duration of response for Tecelra was 6 months, with 39% of responsive patients maintaining a response for 12 months or longer[115] - Lete-cel, targeting the NY-ESO antigen, reported an ORR of 40% in the IGNYTE-ESO trial, with a median duration of response of approximately 11 months[116] - The company is focusing on developing T-cell therapies directed to PRAME and CD70, with preclinical testing ongoing for ADP-600 and ADP-520[119] Financial Performance - Revenue increased by 123.1millionto123.1 million to 128.2 million for the three months ended June 30, 2024, compared to 5.1millionforthesameperiodin2023,primarilyduetotheterminationoftheGenentechcollaboration[161]−Thecompanyreportedaprofitof5.1 million for the same period in 2023, primarily due to the termination of the Genentech collaboration[161] - The company reported a profit of 69.5 million for the period ended June 30, 2024, compared to a loss of 21.4millioninthesameperiodin2023,markinga42521.4 million in the same period in 2023, marking a 425% improvement[160] - Revenue increased by 81.2 million to 133.9millionforthesixmonthsendedJune30,2024,primarilyduetotheterminationoftheGenentechcollaboration,resultinginacumulativecatch−upadjustmentof133.9 million for the six months ended June 30, 2024, primarily due to the termination of the Genentech collaboration, resulting in a cumulative catch-up adjustment of 101.3 million[175] - Operating loss for the six months ended June 30, 2024, was 19.4million,asignificantimprovementcomparedtoanoperatinglossof19.4 million, a significant improvement compared to an operating loss of 43.3 million for the same period in 2023[174] Research and Development Expenses - Research and development expenses rose by 35% to 40.4millionforthethreemonthsendedJune30,2024,comparedto40.4 million for the three months ended June 30, 2024, compared to 30.0 million in the same period in 2023[160] - Research and development expenses for the six months ended June 30, 2024, increased by 36% to 75.7millionfrom75.7 million from 55.5 million in the same period in 2023[177] - The net increase in research and development expenses for the six months ended June 30, 2024, was primarily driven by a 9.4millionincreaseinsalariesandrelatedcostsduetotheacquisitionofTCR2[179]−SubcontractedcostsforthethreemonthsendedJune30,2024,were9.4 million increase in salaries and related costs due to the acquisition of TCR2[179] - Subcontracted costs for the three months ended June 30, 2024, were 14.0 million, compared to 9.5millioninthesameperiodof2023,including9.5 million in the same period of 2023, including 9.7 million directly associated with afami-cel, lete-cel, and uza-cel T-cells[167] Collaborations and Agreements - A clinical collaboration agreement with Galapagos NV includes an upfront payment of 70millionandpotentialmilestonepaymentsofupto70 million and potential milestone payments of up to 465 million for the TCR T-cell therapy candidate uza-cel[123] - The company expects to receive initial payments of 100millionfromtheGalapagoscollaboration,including100 million from the Galapagos collaboration, including 70 million upfront and 30millionforresearchanddevelopmentfunding[138]−ThecompanywillrecognizerevenuefromtheGalapagoscollaborationbasedonthepercentageofcompletionoftheproof−of−concepttrial[139]−Thecompanyreceivedanupfrontpaymentof£7.5millionfromAdaptimmuneaspartoftheGSKTerminationandTransferAgreement[135]CashFlowandLiquidity−Thecompanyhadcashandcashequivalentsof30 million for research and development funding[138] - The company will recognize revenue from the Galapagos collaboration based on the percentage of completion of the proof-of-concept trial[139] - The company received an upfront payment of £7.5 million from Adaptimmune as part of the GSK Termination and Transfer Agreement[135] Cash Flow and Liquidity - The company had cash and cash equivalents of 211.8 million and Total Liquidity of 214.8millionasofJune30,2024[187]−Netcashprovidedbyoperatingactivitieswas214.8 million as of June 30, 2024[187] - Net cash provided by operating activities was 15.4 million for the six months ended June 30, 2024, compared to a net cash used of 81.0millionforthesameperiodin2023[189]−Theincreaseinnetcashprovidedbyoperatingactivitieswasprimarilydueto81.0 million for the same period in 2023[189] - The increase in net cash provided by operating activities was primarily due to 30.8 million in research and development credits, an 85millionupfrontpaymentfromGalapagos,anda85 million upfront payment from Galapagos, and a 7.7 million milestone payment from GSK[189] - Net cash provided by financing activities was 53.7millionforthesixmonthsendedJune30,2024,comparedto53.7 million for the six months ended June 30, 2024, compared to 0.2 million for the same period in 2023[192] Tax and Corporate Costs - The U.K. corporation tax rate is 25% for the year ended December 31, 2024, impacting the company's tax strategy[152] - The company benefits from the U.K. SME R&D Tax Credit Scheme, allowing for a payable tax credit of up to approximately 18.6% of eligible R&D expenditures[142] - Income tax expense for the period was 1.0million,reflectingtaxableprofitsgeneratedbyAdaptimmuneLLCintheUnitedStates[172]−Thecompanyexperiencedanincreaseof1.0 million, reflecting taxable profits generated by Adaptimmune LLC in the United States[172] - The company experienced an increase of 1.8 million in other corporate costs due to higher accounting, legal, and professional fees[186] Strategic Changes and Collaborations - The termination of the Astellas Collaboration Agreement resulted in a contract modification with a transaction price of 42.4millionrecognizedinMarch2023[130]−TheterminationoftheGenentechcollaborationledtoacumulativecatch−upadjustmentof42.4 million recognized in March 2023[130] - The termination of the Genentech collaboration led to a cumulative catch-up adjustment of 101.3 million due to the loss of future payments[134] - The gain on bargain purchase from the strategic combination with TCR2 Therapeutics Inc. occurred in June 2023[171] General and Administrative Expenses - General and administrative expenses decreased by 5% to 19.1millionforthethreemonthsendedJune30,2024,downfrom19.1 million for the three months ended June 30, 2024, down from 20.1 million in the same period in 2023[168] - General and administrative expenses for the six months ended June 30, 2024, decreased by 4% to 38.8millionfrom38.8 million from 40.5 million in the same period in 2023[182]