SEATTLE, Aug. 03, 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 June 30, 2022.
“We are pleased to deliver another strong quarter across both the MRD and Immune Medicine businesses,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “I am encouraged by the MRD business momentum as more clinical data and reimbursement decisions continue to drive clonoSEQ adoption. In parallel, data emerging from our immune medicine platform has led to growing interest from pharma partners that will drive revenue and may accelerate diagnostic use cases and potential drug discovery opportunities.”
Recent Highlights
- Revenue of $43.7 million for the second quarter 2022, representing a 13% increase from the second quarter 2021.
- clonoSEQ test volume in the second quarter 2022 grew 53% versus the second quarter of prior year and 17% over the first quarter of 2022.
- Received expanded Medicare coverage of clonoSEQ for assessment of MRD in patients with Diffuse Large B-Cell Lymphoma (DLBCL).
- Signed a new pan-portfolio agreement with major partner for the use of clonoSEQ to measure MRD as a clinical endpoint.
- Sharpened focus on Immune Medicine commercialization strategy to prioritize pharma partnering and drug discovery opportunities.
Second Quarter 2022 Financial Results
Revenue was $43.7 million for the quarter ended June 30, 2022, representing a 13% increase from the second quarter in the prior year. Immune Medicine revenue was $22.4 million for the quarter, representing a 3% decrease from the second quarter in the prior year. MRD revenue was $21.3 million for the quarter, representing a 38% increase from the second quarter in the prior year.
Operating expenses were $96.2 million for the second quarter of 2022, compared to $88.3 million in the second quarter of the prior year, representing an increase of 9%.
Net loss was $52.1 million for the second quarter of 2022, compared to $49.3 million for the same period in 2021.
Cash, cash equivalents and marketable securities was $450.7 million as of June 30, 2022.
2022 Financial Guidance
Adaptive Biotechnologies reiterates full year 2022 revenue to be in the range of $185 million to $195 million.
We now expect full year 2022 operating expenses to be between $410 million and $415 million compared to the previous expectation of $425 million to $435 million.
Webcast and Conference Call Information
Adaptive Biotechnologies will host a conference call to discuss its second quarter 2022 financial results after market close on Wednesday, August 3, 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 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 June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 43,660 | $ | 38,505 | $ | 82,280 | $ | 76,947 | ||||||||
| Operating expenses | ||||||||||||||||
| Cost of revenue | 13,221 | 10,765 | 26,413 | 20,756 | ||||||||||||
| Research and development | 37,037 | 37,800 | 74,876 | 71,572 | ||||||||||||
| Sales and marketing | 24,281 | 23,216 | 50,374 | 43,820 | ||||||||||||
| General and administrative | 21,200 | 16,066 | 45,344 | 31,002 | ||||||||||||
| Amortization of intangible assets | 423 | 423 | 842 | 842 | ||||||||||||
| Total operating expenses | 96,162 | 88,270 | 197,849 | 167,992 | ||||||||||||
| Loss from operations | (52,502 | ) | (49,765 | ) | (115,569 | ) | (91,045 | ) | ||||||||
| Interest and other income, net | 418 | 464 | 689 | 1,102 | ||||||||||||
| Net loss | (52,084 | ) | (49,301 | ) | (114,880 | ) | (89,943 | ) | ||||||||
| Add: Net loss attributable to noncontrolling interest | 38 | — | 98 | — | ||||||||||||
| Net loss attributable to Adaptive Biotechnologies Corporation | $ | (52,046 | ) | $ | (49,301 | ) | $ | (114,782 | ) | $ | (89,943 | ) | ||||
| Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted | $ | (0.37 | ) | $ | (0.35 | ) | $ | (0.81 | ) | $ | (0.64 | ) | ||||
| Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted | 142,363,589 | 140,359,317 | 142,032,261 | 139,667,380 | ||||||||||||
Adaptive Biotechnologies
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
| June 30, 2022 | December 31, 2021 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 76,412 | $ | 139,065 | ||||
| Short-term marketable securities (amortized cost of $310,999 and $214,115, respectively) | 307,326 | 213,996 | ||||||
| Accounts receivable, net | 23,712 | 17,409 | ||||||
| Inventory | 18,778 | 19,263 | ||||||
| Prepaid expenses and other current assets | 12,347 | 13,015 | ||||||
| Total current assets | 438,575 | 402,748 | ||||||
| Long-term assets | ||||||||
| Property and equipment, net | 86,852 | 85,262 | ||||||
| Operating lease right-of-use assets | 84,398 | 87,678 | ||||||
| Long-term marketable securities (amortized cost of $69,055 and $218,163, respectively) | 66,928 | 217,145 | ||||||
| Restricted cash | 2,446 | 2,138 | ||||||
| Intangible assets, net | 7,684 | 8,526 | ||||||
| Goodwill | 118,972 | 118,972 | ||||||
| Other assets | 778 | 875 | ||||||
| Total assets | $ | 806,633 | $ | 923,344 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,720 | $ | 3,307 | ||||
| Accrued liabilities | 9,447 | 9,343 | ||||||
| Accrued compensation and benefits | 9,772 | 15,642 | ||||||
| Current portion of operating lease liabilities | 8,615 | 5,055 | ||||||
| Current portion of deferred revenue | 80,914 | 80,460 | ||||||
| Total current liabilities | 111,468 | 113,807 | ||||||
| Long-term liabilities | ||||||||
| Operating lease liabilities, less current portion | 102,727 | 106,685 | ||||||
| Deferred revenue, less current portion | 74,122 | 98,750 | ||||||
| Total liabilities | 288,317 | 319,242 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Preferred stock: $0.0001 par value, 10,000,000 shares authorized at June 30, 2022 and December 31, 2021; no shares issued and outstanding at June 30, 2022 and December 31, 2021 | — | — | ||||||
| Common stock: $0.0001 par value, 340,000,000 shares authorized at June 30, 2022 and December 31, 2021; 142,784,868 and 141,393,865 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 14 | 14 | ||||||
| Additional paid-in capital | 1,357,763 | 1,324,006 | ||||||
| Accumulated other comprehensive loss | (5,800 | ) | (1,137 | ) | ||||
| Accumulated deficit | (833,673 | ) | (718,891 | ) | ||||
| Total Adaptive Biotechnologies Corporation shareholders’ equity | 518,304 | 603,992 | ||||||
| Noncontrolling interest | 12 | 110 | ||||||
| Total shareholders’ equity | 518,316 | 604,102 | ||||||
| Total liabilities and shareholders’ equity | $ | 806,633 | $ | 923,344 | ||||
