Adaptimmune(ADAP) - 2025 Q2 - Quarterly Results

Business and Financial Highlights Q2 2025 Business Update Adaptimmune reported strong commercial growth for TECELRA in Q2 2025, with sales increasing over 150% compared to Q1, and strategically agreed to sell its main cell therapy assets to US WorldMeds for $55 million upfront plus potential milestones, leading to debt repayment and restructuring to focus on remaining PRAME and CD70 programs - Entered into a definitive agreement to sell TECELRA, lete-cel, afami-cel, and uza-cel cell therapies to US WorldMeds[1] US WorldMeds Transaction Details | Term | Value | | :--- | :--- | | Upfront Payment | $55 million | | Future Milestone Payments | Up to $30 million | - Q2 TECELRA sales reached $11.1 million from 16 patients invoiced, representing over 150% growth compared to Q1 2025[1][2] - Following the asset sale, Adaptimmune repaid its debt facility with Hercules Capital and is restructuring to maximize value from remaining assets, including programs targeting PRAME and CD70[1][2] - The company has maintained a 100% commercial manufacturing success rate through the end of Q2, and the network of Authorized Treatment Centers (ATCs) is nearing completion with 30 centers accepting referrals[2] Q2 2025 Financial Highlights For the second quarter of 2025, Adaptimmune's revenue was $13.7 million, a significant decrease from $128.2 million in Q2 2024, primarily due to the termination of the Genentech collaboration, resulting in a net loss of $30.3 million compared to a prior-year profit, with operating expenses decreasing due to lower R&D costs, and cash and cash equivalents at $26.1 million as of June 30, 2025 Key Financial Metrics (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $13.7M | $128.2M | -89.3% | | R&D Expenses | $23.0M | $40.4M | -43.1% | | SG&A Expenses | $18.5M | $19.1M | -3.1% | | Net (Loss)/Profit | $(30.3)M | $69.5M | N/A | | EPS (Diluted) | $(0.02) | $0.04 | N/A | Key Financial Metrics (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $21.0M | $133.9M | -84.3% | | R&D Expenses | $51.8M | $75.7M | -31.6% | | SG&A Expenses | $41.8M | $38.8M | +7.7% | | Net (Loss)/Profit | $(77.9)M | $21.0M | N/A | | EPS (Diluted) | $(0.05) | $0.01 | N/A | - The significant decrease in revenue for the six months ended June 30, 2025, was primarily due to the termination of the Genentech collaboration in April 2024, which had resulted in a $101.3 million cumulative catch-up adjustment in the prior year period[3] - Cash and cash equivalents were $26.1 million as of June 30, 2025, down from $91.1 million at December 31, 2024[3] - The company believes its cash and cash equivalents are sufficient to fund planned operations for at least 12 months following the Q2 2025 filing, as a result of the US WorldMeds transaction and debt repayment[5] Financial Statements Condensed Consolidated Statement of Operations For the six months ended June 30, 2025, total revenue was $21.0 million, a sharp decline from $133.9 million in the same period of 2024, driven by a near-total drop in development revenue partially offset by new product revenue of $15.1 million, with total operating expenses decreasing to $97.0 million from $114.5 million, resulting in an operating loss of $76.0 million and a net loss of $77.9 million for the first half of 2025 Statement of Operations Summary (in thousands) | Line Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenue | $20,962 | $133,909 | | Total Operating Expenses | $(96,983) | $(114,470) | | (Loss)/Profit from Operations | $(76,021) | $19,439 | | Net (Loss)/Profit | $(77,924) | $21,018 | | Net (Loss)/Profit per Share (Diluted) | $(0.05) | $0.01 | Condensed Consolidated Balance Sheets As of June 30, 2025, Adaptimmune's total assets were $130.6 million, a significant decrease from $246.0 million at the end of 2024, primarily due to a reduction in cash and marketable securities, while total liabilities also decreased to $201.6 million from $234.1 million mainly from a reduction in borrowings, resulting in total stockholders' equity turning to a deficit of $71.0 million from a positive $11.8 million at year-end 2024 Balance Sheet Summary (in thousands) | Line Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $26,061 | $91,139 | | Total Current Assets | $78,115 | $188,169 | | Total Assets | $130,633 | $245,963 | | Total Current Liabilities | $51,513 | $64,527 | | Total Liabilities | $201,591 | $234,114 | | Total Stockholders' Equity | $(70,958) | $11,849 | Condensed Consolidated Cash Flow Statement For the first six months of 2025, net cash used in operating activities was $101.4 million, a significant outflow compared to a $15.4 million inflow in the prior year period, driven by the net loss and changes in working capital, with net cash provided by investing activities at $59.6 million primarily from marketable securities maturity, and net cash used in financing activities at $23.7 million mainly due to borrowings repayment, resulting in a net decrease in cash of $65.4 million for the period Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | $(101,372) | $15,449 | | Net cash provided by/(used in) investing activities | $59,644 | $(1,101) | | Net cash (used in)/provided by financing activities | $(23,666) | $53,747 | | Net (decrease)/increase in cash | $(65,428) | $67,659 | Non-GAAP Financial Measures Reconciliation of Total Liquidity The company uses the non-GAAP measure 'Total Liquidity,' defined as the sum of cash, cash equivalents, and marketable securities, which as of June 30, 2025, was $26.1 million, a significant decrease from $151.6 million at the end of 2024, primarily due to the sale or maturity of all marketable securities - Total Liquidity is a non-GAAP financial measure defined as the total of cash and cash equivalents and marketable securities (available-for-sale debt securities)[8] Reconciliation of Total Liquidity (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $26,061 | $91,139 | | Marketable securities | — | $60,466 | | Total Liquidity | $26,061 | $151,605 |