Adaptive Biotechnologies Reports First Quarter 2022 Financial Results

Seattle, Washington, UNITED STATES


SEATTLE, May 04, 2022 (GLOBE NEWSWIRE) -- Adaptive Biotechnologies Corporation (“Adaptive Biotechnologies”) (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, today reported financial results for the quarter ended March 31, 2022.

“We started the year strong and completed a strategic reorganization of our company around two key business areas: MRD and Immune Medicine,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “I am encouraged by the solid momentum across both business areas as we optimize our resource allocation to capitalize on the multiple opportunities ahead.”

Recent Highlights

  • Revenue of $38.6 million for the first quarter 2022, representing a 0.5% increase from the first quarter 2021.
  • clonoSEQ test volume in the first quarter 2022 grew 45% versus the first quarter of prior year and 12% over the fourth quarter of 2021. 
  • Signed expanded MRD pan-portfolio agreement with major partner in MM and CLL for the use of MRD status as a clinical endpoint.
  • Recognized $3.0 million in MRD regulatory milestone revenue resulting from a biopharmaceutical partner who used data from our MRD assay to support its drug approval. 
  • Completed analysis from immuneSense Lyme blinded data from 990 participants, confirming T-Detect Lyme is nearly twice as sensitive as the current standard of care (54% T-Detect Lyme vs 30% STTT sensitivity, both at 99% specificity). T-Detect Lyme offering to be made available during 2022 Lyme season. 
  • Entered a new T-MAP collaboration with the Janssen Pharmaceutical Companies of Johnson & Johnson to map T cell responses to RSV to support Janssen’s RSV vaccine program. 
  • Announced the appointment of Tycho Peterson as chief financial officer, who brings several decades of financial leadership and experience within the life science and diagnostic industries.

First Quarter 2022 Financial Results

Revenue was $38.6 million for the quarter ended March 31, 2022, representing a 0.5% increase from the first quarter in the prior year. Immune Medicine revenue was $20.8 million for the quarter, representing a 4% increase from the first quarter in the prior year. MRD revenue was $17.8 million for the quarter, representing a 3% decrease from the first quarter in the prior year.

Operating expenses were $101.7 million for the first quarter of 2022, compared to $79.7 million in the first quarter of the prior year, representing an increase of 28%.

Net loss was $62.8 million for the first quarter of 2022, compared to $40.6 million for the same period in 2021.

Cash, cash equivalents and marketable securities was $500.7 million as of March 31, 2022.

2022 Financial Guidance

Adaptive Biotechnologies reiterates full year 2022 revenue to be in the range of $185 million to $195 million.

Webcast and Conference Call Information

Adaptive Biotechnologies will host a conference call to discuss its first quarter 2022 financial results after market close on Wednesday, May 4, 2022 at 4:30 PM Eastern Time. The conference call can be accessed at http://investors.adaptivebiotech.com. The webcast will be archived and available for replay at least 90 days after the event.

About Adaptive Biotechnologies

Adaptive Biotechnologies (“we” or “our”) is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our proprietary immune medicine platform reveals and translates the massive genetics of the adaptive immune system with scale, precision and speed to develop products in life sciences research, clinical diagnostics and drug discovery. We have three commercial products and a robust clinical pipeline to diagnose, monitor and enable the treatment of diseases such as cancer, autoimmune disorders, and infectious diseases. Our goal is to develop and commercialize immune-driven clinical products tailored to each individual patient.

Forward-Looking Statements

This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations.

In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.

ADAPTIVE MEDIA
Laura Cooper
205-908-5603
media@adaptivebiotech.com

ADAPTIVE INVESTORS
Karina Calzadilla, Vice President, Investor Relations
201-396-1687
Carrie Mendivil, Gilmartin Group
investors@adaptivebiotech.com


Adaptive Biotechnologies
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
 
  Three Months Ended March 31, 
  2022  2021 
Revenue $38,620  $38,442 
Operating expenses        
Cost of revenue  13,192   9,991 
Research and development  37,839   33,772 
Sales and marketing  26,093   20,604 
General and administrative  24,144   14,936 
Amortization of intangible assets  419   419 
Total operating expenses  101,687   79,722 
Loss from operations  (63,067)  (41,280)
Interest and other income, net  271   638 
Net loss  (62,796)  (40,642)
Add: Net loss attributable to noncontrolling interest  60    
Net loss attributable to Adaptive Biotechnologies Corporation $(62,736) $(40,642)
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted $(0.44) $(0.29)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted  141,697,252   138,967,754 
         



Adaptive Biotechnologies
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
  March 31, 2022  December 31, 2021 
  (unaudited)     
Assets        
Current assets        
Cash and cash equivalents $114,805  $139,065 
Short-term marketable securities (amortized cost of $250,448 and $214,115, respectively)  248,757   213,996 
Accounts receivable, net  22,518   17,409 
Inventory  21,002   19,263 
Prepaid expenses and other current assets  12,038   13,015 
Total current assets  419,120   402,748 
Long-term assets        
Property and equipment, net  85,994   85,262 
Operating lease right-of-use assets  85,634   87,678 
Long-term marketable securities (amortized cost of $140,202 and $218,163, respectively)  137,110   217,145 
Restricted cash  2,382   2,138 
Intangible assets, net  8,107   8,526 
Goodwill  118,972   118,972 
Other assets  874   875 
Total assets $858,193  $923,344 
Liabilities and shareholders’ equity        
Current liabilities        
Accounts payable $5,959  $3,307 
Accrued liabilities  10,407   9,343 
Accrued compensation and benefits  6,651   15,642 
Current portion of operating lease liabilities  8,545   5,055 
Current portion of deferred revenue  83,504   80,460 
Total current liabilities  115,066   113,807 
Long-term liabilities        
Operating lease liabilities, less current portion  104,978   106,685 
Deferred revenue, less current portion  84,894   98,750 
Total liabilities  304,938   319,242 
Commitments and contingencies        
Shareholders’ equity        
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at March 31, 2022 and December 31, 2021; no shares issued and outstanding at March 31, 2022 and December 31, 2021      
Common stock: $0.0001 par value, 340,000,000 shares authorized at March 31, 2022 and December 31, 2021; 142,183,258 and 141,393,865 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively  14   14 
Additional paid-in capital  1,339,601   1,324,006 
Accumulated other comprehensive loss  (4,783)  (1,137)
Accumulated deficit  (781,627)  (718,891)
Total Adaptive Biotechnologies Corporation shareholders’ equity  553,205   603,992 
Noncontrolling interest  50   110 
Total shareholders’ equity  553,255   604,102 
Total liabilities and shareholders’ equity $858,193  $923,344 
         

Revenue Reclassification and clonoSEQ Test Volume

We previously disclosed revenue bifurcated into sequencing and development financial statement captions and now present total revenue on our unaudited condensed consolidated statements of operations.

The following table presents the amount of sequencing revenue and development revenue recognized under our Immune Medicine and MRD market opportunities for the periods presented (in thousands, unaudited):

  Three Months Ended 
  December 31,
2021
  September 30,
2021
  June 30,
2021
  March 31,
2021
 
Immune Medicine revenue                
Sequencing revenue $6,860  $8,170  $5,404  $4,048 
Development revenue  14,514   15,445   17,635   16,057 
Total Immune Medicine revenue  21,374   23,615   23,039   20,105 
MRD revenue                
Sequencing revenue  16,201   13,936   13,151   11,126 
Development revenue  355   1,916   2,315   7,211 
Total MRD revenue  16,556   15,852   15,466   18,337 
Total revenue $37,930  $39,467  $38,505  $38,442 


  Three Months Ended 
  December 31,
2020
  September 30,
2020
  June 30,
2020
  March 31,
2020
 
Immune Medicine revenue                
Sequencing revenue $3,310  $3,691  $2,036  $3,170 
Development revenue  17,155   12,438   12,856   11,077 
Total Immune Medicine revenue  20,465   16,129   14,892   14,247 
MRD revenue                
Sequencing revenue  9,399   7,585   5,949   6,299 
Development revenue  321   2,585   147   364 
Total MRD revenue  9,720   10,170   6,096   6,663 
Total revenue $30,185  $26,299  $20,988  $20,910 

We also previously disclosed the number of clonoSEQ reports provided to ordering physicians in the United States, referred to as “clinical sequencing volume” or “clinical sequencing volume, excluding T-Detect COVID volume” in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of certain of our SEC filings. We now present the number of clonoSEQ reports and results we have provided to ordering physicians in the United States and international technology transfer sites, collectively referred to as “clonoSEQ test volume.” Our clonoSEQ test volume does not include sample results from our biopharmaceutical customers or academic institutions utilizing our MRD services.

The following table presents our clonoSEQ test volume for the periods presented:

  Three Months Ended 
  December 31,
2021
  September 30,
2021
  June 30,
2021
  March 31,
2021
 
Clinical sequencing volume, excluding T-Detect COVID volume  6,356   5,928   5,475   4,757 
clonoSEQ reports or results provided to international technology transfer sites  494   413   422   543 
clonoSEQ test volume  6,850   6,341   5,897   5,300 


  Three Months Ended 
  December 31,
2020
  September 30,
2020
  June 30,
2020
  March 31,
2020
 
Clinical sequencing volume  4,509   4,023   3,136   3,518 
clonoSEQ reports or results provided to international technology transfer sites  704   375   310   238 
clonoSEQ test volume  5,213   4,398   3,446   3,756