Adaptimmune (ADAP) Down on End of Collaboration With Roche

Core Viewpoint - Adaptimmune Therapeutics plc's strategic collaboration with Roche's Genentech has been terminated, leading to a 10% drop in ADAP shares, indicating investor disappointment and a setback for the company [1][2]. Company Developments - The collaboration, initiated in 2021, aimed to develop allogeneic cell therapies for multiple oncology indications, including two components: allogeneic T-cell therapies for shared cancer targets and personalized allogeneic T-cell therapies [1]. - Adaptimmune received an upfront payment of $150 million and was entitled to additional payments of $150 million over five years, along with milestone payments exceeding $3 billion in total value [1]. - Despite the setback, management remains optimistic about the long-term potential of its iPSC-based allogeneic platform and is focused on launching afami-cel, its first product in the sarcoma franchise, pending FDA approval [2]. Product Pipeline - Afami-cel is intended for the treatment of advanced synovial sarcoma, with a target action date set by the FDA for August 4, 2024, and is expected to be the first engineered T-cell therapy for solid tumors to receive commercial approval in the U.S. [2]. - The second product in the sarcoma franchise, lete-cel, is currently being investigated in the IGNYTE-ESO study [2][3]. Market Context - Year-to-date, Adaptimmune shares have risen by 46.3%, contrasting with a 7.9% decline in the industry, reflecting a strong performance despite recent challenges [2]. - Roche continues to collaborate with Poseida Therapeutics on allogeneic CAR-T therapies targeting hematological malignancies, indicating ongoing interest in cell therapy development within the industry [4].