Summary of Adaptive Biotechnologies FY Conference Call Company Overview - **Company**: Adaptive Biotechnologies (NasdaqGS:ADPT) - **Founded**: 16 years ago at Fred Hutchinson Cancer Research Institute - **Employees**: Approximately 620 - **Revenue**: Over $275 million - **Cash Position**: Approximately $227 million [2][2] Core Business Segments Minimal Residual Disease (MRD) Business - **Market Size**: Global addressable market of approximately $5.5 billion, with a U.S. clinical testing market of roughly $1.8 billion [4][4] - **Growth Opportunity**: Potential to increase testing frequency from 2.5 to 3.5 tests per patient per year, expanding the U.S. market by approximately $700 million [4][4] - **Technology**: clonoSEQ test measures MRD with high sensitivity and specificity, detecting one cancer cell in every million healthy cells [6][6] - **Regulatory Approval**: clonoSEQ is the only FDA-cleared MRD assay in lymphoid malignancies [6][6] - **Financial Performance**: Achieved positive adjusted EBITDA in 2025, with revenue surpassing $200 million and a 34% cumulative average growth rate from 2021 to 2025 [8][9] Immune Medicine (IM) Business - **Focus**: Understanding T-cell receptor interactions with antigens to drive insights across various diseases [26][26] - **Data Generation**: Mapped over 5 million T-cell receptors to antigens, generating biological insights for autoimmune diseases [27][27] - **Partnerships**: Recent agreements with Pfizer for data licensing and target discovery in rheumatoid arthritis [28][28] Key Financial Metrics - **Revenue Growth**: Clinical revenue grew at a 53% CAGR, with gross margins improving significantly due to lab efficiencies [9][9] - **Testing Volume**: Clinical volumes grew at a 44% CAGR since 2021, with over 100,000 patients tested using clonoSEQ [10][10] - **Average Selling Price (ASP)**: Reached approximately $1,310 in 2025, with a target of $1,700-$1,800 by 2029 [19][20] Growth Drivers Clinical Testing - **Volume Growth Factors**: Blood-based testing, community presence, clinical guideline inclusion, ongoing data generation, and EMR integration [11][11] - **Community Testing**: Expected to grow from 30% to over 35% of clonoSEQ testing [12][12] - **Guideline Updates**: Significant updates in 2025, elevating MRD to a clinical decision-making tool [13][14] Biopharma Partnerships - **MRD Pharma Portfolio**: Anchored in multiple myeloma, with 70% of sequencing revenue from this indication [22][22] - **Diversification**: Tripled bookings in CLL in 2025, with ongoing pipeline development [22][22] Future Outlook - **2026 Expectations**: - Clinical testing volume expected to grow by more than 30% year-over-year [25][25] - ASP projected at approximately $1,400 [25][25] - Continued improvement in sequencing gross margins, targeting over 70% [25][25] - **Cash Burn**: Expected to decrease to between $15 million and $20 million while investing in data generation [30][30] Competitive Landscape - **Market Position**: Adaptive maintains a strong competitive moat in MRD testing, particularly in DLBCL, where it has seen significant growth [41][41][42] - **Emerging Competition**: Natera's acquisition of Foresight Diagnostics highlights the nascent market for NGS MRD testing, but Adaptive's established reimbursement and technology position it favorably [41][41] Conclusion - **Key Takeaways**: - Strengthening leadership in MRD testing for blood cancers - Advancing immune receptor data platform - Expectation of positive adjusted EBITDA and free cash flow for the entire company in 2026 [31][31]

MRD Business Highlights - Adaptive Biotechnologies achieved approximately $212 million in MRD revenue for the full year 2025[20] - The company experienced a 53% Compound Annual Growth Rate (CAGR) in pharma revenue[20] - Sequencing gross margins are approximately 65% in 2025[21] - Clinical volume growth shows a 44% CAGR from 2021 to 2025[22] - Over 50% of US heme-oncologists ordered clonoSEQ in 2025[22] - The company anticipates an average selling price (ASP) of approximately $1,400 per US clinical test in FY 2026[47] Immune Medicine (IM) Highlights - Adaptive Biotechnologies has generated over 5 million paired TCRs to antigen, significantly exceeding the 40,000 publicly available[52] - The company's Immune Medicine division had an annual cash burn of approximately $30 million in FY 2025, with a target to reduce it to $15 million to $20 million[60] Overall Company Goals - Adaptive Biotechnologies aims to achieve positive adjusted EBITDA and positive Free Cash Flow (FCF) for the whole company by the end of 2026[61]

Financial Results - Adaptive Biotechnologies Corporation reported financial results for the quarter and year ended December 31, 2025[4]. - The press release detailing the financial results was issued on January 12, 2026[4]. - The financial results include key metrics that will be detailed in the attached press release and presentation[4][6]. - The report does not include specific performance metrics or guidance in the provided content[4][6]. Investor Relations - The company provided an Investor Presentation intended for meetings with investors and analysts[6]. - The company has not indicated any obligation to update the Investor Presentation in the future[6]. Company Information - The company is not classified as an emerging growth company under the relevant regulations[3]. - The company is based in Seattle, Washington, and trades on the NASDAQ under the symbol ADPT[2]. Report Details - The financial statements and exhibits related to the report are included as attachments[9]. - The report was signed by Kyle Piskel, Chief Financial Officer, on January 12, 2026[13].

Core Insights - Adaptive Biotechnologies reported a significant revenue growth of 55% for the full year 2025, reaching approximately $277 million, driven by strong adoption of clonoSEQ testing [6] - The company anticipates continued growth in 2026, focusing on maintaining leadership in MRD testing and expanding profitability [2] Financial Performance - Total revenue for Q4 2025 was approximately $72 million, marking a 51% increase compared to Q4 2024 [6] - MRD revenue for Q4 2025 was around $62 million, reflecting a 54% increase year-over-year [6] - For the full year 2025, MRD revenue reached approximately $212 million, a 46% increase compared to 2024 [6] - Excluding regulatory milestone revenue, MRD revenue for the full year 2025 grew by 45% [6] - ClonoSEQ test volume increased by 43% in Q4 2025, totaling approximately 30,000 tests, and ended the year with about 105,600 tests delivered, up 39% from 2024 [6] - As of December 31, 2025, the company had approximately $227 million in cash, cash equivalents, and marketable securities [6] Strategic Outlook - The CEO emphasized the pivotal nature of 2025 for Adaptive, highlighting the acceleration in MRD business and clonoSEQ adoption [2] - The company plans to release complete financial results for Q4 and full year 2025 in February 2026 [2]

Core Insights - Digital Biotechnologies Inc., a new subsidiary of Adaptive Biotechnologies, has successfully raised funds through an initial closing of a Series A investment round [1] Company Overview - Digital Biotechnologies Inc. is based in Seattle and operates under the umbrella of Adaptive Biotechnologies, which is publicly traded and focuses on immune medicine [1] Financial Activity - The company has completed an initial closing of a Series A investment round, indicating a positive reception from investors and potential for future growth [1]

Core Insights - Adaptive Biotechnologies Corporation is participating in the 44th Annual J.P. Morgan Healthcare Conference in San Francisco, CA on January 12, 2026 [1][2] Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on leveraging the adaptive immune system for disease diagnosis and treatment [3] - The company aims to decode the adaptive immune system's genetics to enhance its diagnostic and therapeutic capabilities [3] - Its proprietary immune medicine platform is designed to translate the genetics of the adaptive immune system with scale, precision, and speed [3] - The company operates in two business segments: Minimal Residual Disease (MRD) and Immune Medicine, developing clinical diagnostics and partnering with biopharmaceutical companies [3] - The goal is to create immune-driven clinical products tailored to individual patients for diseases such as cancer and autoimmune disorders [3]

Core Insights - Adaptive Biotechnologies has entered into two non-exclusive agreements with Pfizer to advance research in rheumatoid arthritis and other immune-related diseases [1] Company Summary - The collaboration with Pfizer aims to leverage Adaptive Biotechnologies' expertise in immune profiling to enhance the understanding and treatment of autoimmune conditions [1] - These deals signify a strategic partnership that may lead to innovative therapeutic solutions in the field of immunology [1] Industry Summary - The agreements highlight the growing interest and investment in research related to autoimmune diseases, particularly rheumatoid arthritis, which affects millions globally [1] - This collaboration reflects a broader trend in the pharmaceutical industry towards partnerships that combine advanced biotechnology with traditional drug development [1]

Core Insights - Adaptive Biotechnologies has entered into two non-exclusive agreements with Pfizer to utilize its T-cell receptor (TCR) discovery capabilities and immune receptor antigen mapping data for research in rheumatoid arthritis (RA) [1][3][5] Group 1: Agreements Overview - The first agreement focuses on identifying disease-causing TCRs in RA, where Adaptive will analyze Pfizer's clinical samples to find common TCRs enriched in RA patients [3] - The second agreement involves licensing Adaptive's TCR-antigen datasets, which are claimed to be the largest and highest quality available, for use in developing AI and machine learning models at Pfizer [4][6] Group 2: Financial Aspects - Adaptive will receive an upfront payment from Pfizer and may be eligible for additional payments that could total up to approximately $890 million, contingent on data delivery, development, and commercialization milestones [5] - Specific financial terms of the TCR-antigen data licensing agreement have not been disclosed, but it is a multi-year, non-exclusive agreement [6] Group 3: Company Background - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on leveraging the adaptive immune system for disease diagnosis and treatment, with a goal to develop immune-driven clinical products tailored to individual patients [7]

Core Insights - Adaptive Biotechnologies Corporation is focused on translating the genetics of the adaptive immune system into clinical products for disease diagnosis and treatment [2] - The company will participate in a Jefferies fireside chat to discuss Minimal Residual Disease (MRD) in Hematology/Oncology, highlighting their clonoSEQ assay technology [1] Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company that aims to leverage the adaptive immune system for disease diagnosis and treatment [2] - The company utilizes a proprietary immune medicine platform to decode the genetics of the adaptive immune system, enabling partnerships with biopharmaceutical companies and informing drug development [2] - The company operates in two business segments: Minimal Residual Disease (MRD) and Immune Medicine, focusing on the diagnosis, monitoring, and treatment of diseases such as cancer and autoimmune disorders [2]

Core Insights - Adaptive Biotechnologies Corporation is showcasing the increasing interventional use of its clonoSEQ test at the 67th American Society of Hematology Annual Meeting, with 90 abstracts featuring clonoSEQ data, including 17 that demonstrate its role in guiding clinical actions for blood cancer patient care [1][9] Group 1: Clinical Applications and Studies - The phase II EndRAD study supports the use of next-generation sequencing (NGS) measurable residual disease (MRD) status prior to allogeneic hematopoietic cell transplantation (HCT) to select non-total body irradiation (TBI) conditioning approaches, showing excellent event-free and overall survival in 51 NGS MRD negative patients [2][3] - Across hematologic malignancies, clonoSEQ MRD status is utilized by healthcare providers to guide clinical decisions, with presentations demonstrating its application in tailoring treatment intensity and duration [3][9] - A phase III AURIGA study involving 200 newly diagnosed multiple myeloma (MM) patients showed that deep MRD responses correlated with improved progression-free survival, and intensified maintenance in MRD-positive patients post-transplant doubled MRD negativity rates [7] Group 2: Abstracts and Research Findings - A total of 32 abstracts on multiple myeloma will be presented, focusing on MRD assessment of treatment response and real-world data linking MRD status to clinical outcomes [7] - In non-Hodgkin lymphoma (NHL), 15 abstracts will explore MRD to understand treatment response depth and guide therapy, including a study on de-escalating therapy in frail older adults with diffuse large B-cell lymphoma (DLBCL) [7] - Data from a phase II study of 80 previously untreated chronic lymphocytic leukemia (CLL) patients indicated that time-limited therapy achieved deep and durable remissions based on MRD assessment [8] Group 3: clonoSEQ Overview - clonoSEQ is the first FDA-cleared in vitro diagnostic test for detecting and tracking MRD in patients with multiple myeloma, B-cell acute lymphoblastic leukemia, and chronic lymphocytic leukemia, and is also available for other lymphoid cancers as a CLIA-validated laboratory developed test [10][11] - The test identifies and quantifies DNA sequences in malignant cells, detecting one cancer cell in one million healthy cells, providing standardized and sensitive results that inform treatment decisions and predict outcomes [11]