Adaptimmune(ADAP) - 2024 Q3 - Quarterly Results

Product Development and Launch - Tecelra® launch is on track with 9 Authorized Treatment Centers available, expecting first commercial revenues in Q4 2024 and acceleration in treated patients throughout 2025[1] - Lete-cel pivotal trial reports a 42% overall response rate in synovial sarcoma and myxoid/round cell liposarcoma, with full data to be presented at the CTOS conference on November 16, 2024[1] - Adaptimmune plans to initiate a rolling Biologics License Application for lete-cel by the end of 2025, expanding the addressable patient population[5] - The company will cease enrollment in the SURPASS-3 Phase 2 clinical trial for uza-cel in platinum-resistant ovarian cancer[2] Financial Performance - Revenue for Q3 2024 was $40.9 million, significantly up from $7.3 million in Q3 2023, primarily due to the recognition of deferred income from terminated collaborations[10] - Revenue for the three months ended September 30, 2024, was $40,901,000, a significant increase from $7,319,000 for the same period in 2023, representing a growth of 460%[16] - Net loss for Q3 2024 was $17.6 million, an improvement compared to a loss of $45.6 million in Q3 2023[10] - Operating loss for the nine months ended September 30, 2024, was $4,759,000, compared to an operating loss of $89,885,000 for the same period in 2023, indicating a substantial improvement[16] - Net profit attributable to ordinary shareholders for the nine months ended September 30, 2024, was $3,401,000, a recovery from a net loss of $65,954,000 for the same period in 2023[19] Cost Management and Headcount - Company plans a 33% reduction in headcount in Q1 2025, targeting approximately $300 million in cost savings over the next four years to achieve operating breakeven by 2027[2] Liquidity and Assets - Total liquidity as of September 30, 2024, is $186.1 million, down from $146.9 million at the end of 2023[10] - Total current assets increased to $244,214,000 as of September 30, 2024, up from $207,552,000 as of December 31, 2023, reflecting a growth of 17.6%[17] - Cash and cash equivalents decreased to $116,741,000 as of September 30, 2024, down from $143,991,000 as of December 31, 2023, a decline of 18.9%[17] - Total liabilities decreased to $237,447,000 as of September 30, 2024, compared to $243,103,000 as of December 31, 2023, a reduction of 2.3%[17] - Total stockholders' equity increased to $79,989,000 as of September 30, 2024, from $39,513,000 as of December 31, 2023, reflecting a growth of 102.5%[18] Expenses - Research and development expenses for Q3 2024 were $34.3 million, a decrease from $37.8 million in Q3 2023, attributed to reduced clinical trial expenses[10] - Selling, general and administrative expenses for Q3 2024 were $21.2 million, an increase from $16.2 million in Q3 2023, driven by higher professional fees related to business development[10] Cash Flow - The company reported a net cash used in operating activities of $39,002,000 for the nine months ended September 30, 2024, an improvement from $126,204,000 for the same period in 2023[19] - The company issued borrowings of $49,500,000 during the nine months ended September 30, 2024, contributing to its financing activities[19] Deferred Revenue - The company experienced a decrease in deferred revenue, current, to $18,709,000 as of September 30, 2024, down from $28,973,000 as of December 31, 2023, a decline of 35.6%[17]