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Adaptimmune(ADAP) - 2024 Q3 - Quarterly Report
ADAPAdaptimmune(ADAP)2024-11-13 21:19
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Regulatory Approvals and Collaborations - Tecelra received FDA approval on August 1, 2024, for the treatment of advanced synovial sarcoma, with a reported overall response rate (ORR) of 43% in the SPEARHEAD-1 trial[111][114]. - The Galapagos Collaboration Agreement includes an upfront payment of 70millionandpotentialmilestonepaymentsofupto70 million and potential milestone payments of up to 465 million, with initial payments received in June 2024[135]. - The Genentech Collaboration Agreement was terminated, resulting in a cumulative catch-up adjustment to revenue of 101.3millionrecognizedatthedateoftermination[130][131].−Thecompanyreceiveda101.3 million recognized at the date of termination[130][131]. - The company received a 12.5 million payment from Genentech as part of a Mutual Release Agreement, resolving all past disputes related to the collaboration[119][131]. Financial Performance - Revenue increased by 33.6millionto33.6 million to 40.9 million for the three months ended September 30, 2024, representing a 459% increase compared to 7.3millionforthesameperiodin2023[162].−Revenueincreasedby7.3 million for the same period in 2023[162]. - Revenue increased by 114.8 million to 174.8millionfortheninemonthsendedSeptember30,2024,comparedto174.8 million for the nine months ended September 30, 2024, compared to 60.1 million for the same period in 2023, primarily due to the termination of the Genentech Collaboration Agreement[172]. - The company reported a profit of 3.4millionfortheperiodendedSeptember30,2024,comparedtoalossof3.4 million for the period ended September 30, 2024, compared to a loss of 65.9 million in the same period in 2023[170]. - Operating profit for the nine months ended September 30, 2024 was 4.8million,asignificantimprovementfromalossof4.8 million, a significant improvement from a loss of 89.9 million in the same period in 2023[170]. Expenses and Cost Management - Research and development expenses decreased by 9% to 34.3millionforthethreemonthsendedSeptember30,2024,downfrom34.3 million for the three months ended September 30, 2024, down from 37.8 million in the same period in 2023[165]. - The decrease in research and development expenses was primarily due to a reduction in subcontracted costs, which were 10.6millioninQ32024comparedto10.6 million in Q3 2024 compared to 16.6 million in Q3 2023[165]. - Selling, general, and administrative expenses increased by 32% to 21.3millionforthethreemonthsendedSeptember30,2024,comparedto21.3 million for the three months ended September 30, 2024, compared to 16.2 million in the same period in 2023[162]. - Research and development expenses rose by 18% to 110.0millionfortheninemonthsendedSeptember30,2024,upfrom110.0 million for the nine months ended September 30, 2024, up from 93.3 million in the same period in 2023[174]. - Selling, general and administrative expenses increased by 6% to 60.1millionfortheninemonthsendedSeptember30,2024,comparedto60.1 million for the nine months ended September 30, 2024, compared to 56.6 million in the same period in 2023[178]. Workforce and Strategic Focus - The company plans to reduce its workforce by approximately 33%, with expected pre-tax costs of 9−11millionrelatedtoseveranceandotheremployee−relatedexpenses[112][121].−Thecompanyhasceasedinvestmentinnon−coreprograms,includingtheSURPASS−3trialinovariancancer,toprioritizeitscommercialsarcomafranchise[112].−ThecompanyisfocusingonpreclinicalprogramstargetingPRAMEandCD70,withADP−600andADP−520currentlyinpreclinicaltesting[117][118].CashFlowandLiquidity−Netcashusedinoperatingactivitiesdecreasedto9-11 million related to severance and other employee-related expenses[112][121]. - The company has ceased investment in non-core programs, including the SURPASS-3 trial in ovarian cancer, to prioritize its commercial sarcoma franchise[112]. - The company is focusing on preclinical programs targeting PRAME and CD70, with ADP-600 and ADP-520 currently in preclinical testing[117][118]. Cash Flow and Liquidity - Net cash used in operating activities decreased to 39.0 million for the nine months ended September 30, 2024, from 126.2millioninthesameperiodin2023,duetothereceiptofresearchanddevelopmentcreditsandupfrontpayments[182].−TotalliquidityasofSeptember30,2024,was126.2 million in the same period in 2023, due to the receipt of research and development credits and upfront payments[182]. - Total liquidity as of September 30, 2024, was 186.1 million, up from 146.9millionasofDecember31,2023[191].−Netcashprovidedbyfinancingactivitiesincreasedto146.9 million as of December 31, 2023[191]. - Net cash provided by financing activities increased to 78.7 million for the nine months ended September 30, 2024, compared to 0.8millionforthesameperiodin2023[189].−CashandcashequivalentsasofSeptember30,2024,were0.8 million for the same period in 2023[189]. - Cash and cash equivalents as of September 30, 2024, were 116.7 million, compared to 143.9millionasofDecember31,2023[191].OtherFinancialMetrics−TheoperatinglossforthethreemonthsendedSeptember30,2024,was143.9 million as of December 31, 2023[191]. Other Financial Metrics - The operating loss for the three months ended September 30, 2024, was 14.7 million, a significant improvement of 69% compared to an operating loss of 46.6millioninQ32023[162].−Lossbeforeincometaxexpensedecreasedby6346.6 million in Q3 2023[162]. - Loss before income tax expense decreased by 63% to 16.8 million for the three months ended September 30, 2024, compared to 44.9millioninQ32023[162].−Thecompanyrecognized44.9 million in Q3 2023[162]. - The company recognized 25 million in deferred revenue from the termination of the Genentech Collaboration Agreement and an additional 12.5millionpaymentinQ32024[164].−Subcontractedexpendituredecreasedby312.5 million payment in Q3 2024[164]. - Subcontracted expenditure decreased by 3% to 36.0 million for the nine months ended September 30, 2024, compared to 37.2millioninthesameperiodin2023[177].−Share−basedcompensationexpenseincreasedby3137.2 million in the same period in 2023[177]. - Share-based compensation expense increased by 31% to 2.9 million for the nine months ended September 30, 2024, compared to $2.2 million in the same period in 2023[174].