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 fourth quarter and full year ended
December 31, 2020.
"Adaptive's launch of T-Detect COVID marks a pivotal moment in
the diagnostic testing paradigm. We have now proven that it is
possible to read how T cells detect disease in the blood and we are
on a fast path to develop this product for many other indications,"
said Chad Robins, chief executive officer and co-founder of
Adaptive Biotechnologies. "As we move into 2021, we are poised to
execute on several key catalysts across all business areas that
will accelerate our vision to power the age of immune
medicine."
Recent Highlights
- Revenues of $30.2
million for the fourth quarter and $98.4 million for the full year
of 2020, representing a 25% increase and 16% increase,
respectively, over the corresponding periods in 2019.
- Clinical sequencing
volume increased 41% to 4,539 clinical tests delivered in the
fourth quarter of 2020, compared to the fourth quarter 2019 and
ended the year with 15,216 clinical tests delivered, up 50% versus
2019.
- Launched T-Detect™
COVID, first clinical T-cell based test for patients to confirm
recent or prior COVID-19 infection. In final review by the U.S.
Food and Drug Administration (FDA) for Emergency Use Authorization
(EUA).
- Extended
collaboration agreement with Labcorp to enable broader access to
our growing portfolio of immune-driven clinical diagnostic and
research products.
- Submitted a 510(k) application to the
FDA for the use of clonoSEQ in blood for B-cell acute lymphoblastic
leukemia (ALL) patients.
Fourth Quarter 2020 Financial
Results
Revenue was $30.2 million for the quarter ended December 31,
2020, representing a 25% increase from the fourth quarter in the
prior year. Sequencing revenue was $12.7 million for the quarter,
representing an 8% decrease from the fourth quarter in the prior
year. Development revenue was $17.5 million for the quarter,
representing a 69% increase from the fourth quarter in the prior
year.
Operating expenses were $74.4 million for the fourth quarter of
2020, compared to $48.4 million in the fourth quarter of the prior
year, representing an increase of 54%.
Net loss was $44.6 million for the fourth quarter of 2020,
compared to $20.6 million for the same period in 2019.
Adjusted EBITDA (non-GAAP) was a loss of $34.6 million for the
fourth quarter of 2020, compared to a loss of $18.7 million for the
fourth quarter of the prior year.
Full Year 2020 Financial
Results
Revenue was $98.4 million for the year ended December 31, 2020,
representing a 16% increase from the prior year. Sequencing revenue
was $41.4 million in 2020, representing a 5% decrease from 2019.
Development revenue was $56.9 million in 2020, representing a 37%
increase from the prior year.
Operating expenses for 2020 were $251.2 million, compared to
$163.5 million for 2019, representing an increase of 54%.
Net loss was $146.2 million in 2020, compared to $68.6 million
in 2019.
Adjusted EBITDA (non-GAAP) was a loss of $119.6 million for
2020, compared to a loss of $57.5 million in the prior year.
Cash, cash equivalents and marketable securities was $806.8
million as of December 31, 2020.
2021 Financial Guidance
Management will provide the 2021 outlook during the conference
call scheduled to discuss the 2020 financial results.
Webcast and Conference Call
Information
Adaptive Biotechnologies will host a conference call to discuss
its fourth quarter and full year 2020 financial results after
market close on Wednesday, February 24, 2021 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
conditions 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.
Use of Non-GAAP Financial
Measure
To supplement our balance sheets and statements of operations,
which are prepared in conformity with generally accepted accounting
principles in the United States of America ("GAAP"), this
press release also includes references to Adjusted EBITDA, which is
a non-GAAP financial measure that we define as net loss adjusted
for interest and other income, net, income tax (expense) benefit,
depreciation and amortization and share-based compensation
expenses. We have provided a reconciliation of net loss, the most
directly comparable GAAP financial measure, to Adjusted EBITDA at
the end of this press release.
Management uses Adjusted EBITDA to evaluate the financial
performance of our business and the effectiveness of our business
strategies. We present Adjusted EBITDA because we believe it is
frequently used by analysts, investors and other interested parties
to evaluate companies in our industry and it facilitates
comparisons on a consistent basis across reporting periods.
Further, we believe it is helpful in highlighting trends in our
operating results because it excludes items that are not indicative
of our core operating performance.
Adjusted EBITDA has limitations as an analytical tool and you
should not consider it in isolation, or as a substitute for
analysis of our results as reported under GAAP. We may in the
future incur expenses similar to the adjustments in the
presentation of Adjusted EBITDA. In particular, we expect to incur
meaningful share-based compensation expense in the future. Other
limitations include that Adjusted EBITDA does not reflect:
- all expenditures or
future requirements for capital expenditures or contractual
commitments;
- changes in our
working capital needs;
- income tax (expense)
benefit, which may be a necessary element of our costs and ability
to operate;
- the costs of
replacing the assets being depreciated and amortized, which will
often have to be replaced in the future;
- the non-cash
component of employee compensation expense; and
- the impact of
earnings or charges resulting from matters we consider not to be
reflective, on a recurring basis, of our ongoing operations.
In addition, Adjusted EBITDA may not be comparable to similarly
titled measures used by other companies in our industry or across
different industries.
ADAPTIVE MEDIABeth
Keshishian917-912-7195media@adaptivebiotech.com
ADAPTIVE INVESTORSKarina Calzadilla, Vice
President, Investor Relations201-396-1687Carrie Mendivil, Gilmartin
Groupinvestors@adaptivebiotech.com
Adaptive
BiotechnologiesStatements of Operations(in thousands,
except share and per share amounts)(unaudited)
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sequencing revenue |
|
$ |
12,709 |
|
|
$ |
13,888 |
|
|
$ |
41,439 |
|
|
$ |
43,519 |
|
Development revenue |
|
|
17,476 |
|
|
|
10,321 |
|
|
|
56,943 |
|
|
|
41,552 |
|
Total revenue |
|
|
30,185 |
|
|
|
24,209 |
|
|
|
98,382 |
|
|
|
85,071 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
6,222 |
|
|
|
5,951 |
|
|
|
22,530 |
|
|
|
22,274 |
|
Research and development |
|
|
35,831 |
|
|
|
21,189 |
|
|
|
116,072 |
|
|
|
70,705 |
|
Sales and marketing |
|
|
18,545 |
|
|
|
12,640 |
|
|
|
61,358 |
|
|
|
38,453 |
|
General and administrative |
|
|
13,398 |
|
|
|
8,189 |
|
|
|
49,536 |
|
|
|
30,332 |
|
Amortization of intangible assets |
|
|
428 |
|
|
|
428 |
|
|
|
1,703 |
|
|
|
1,698 |
|
Total operating expenses |
|
|
74,424 |
|
|
|
48,397 |
|
|
|
251,199 |
|
|
|
163,462 |
|
Loss from operations |
|
|
(44,239 |
) |
|
|
(24,188 |
) |
|
|
(152,817 |
) |
|
|
(78,391 |
) |
Interest and other income,
net |
|
|
785 |
|
|
|
3,577 |
|
|
|
6,590 |
|
|
|
9,785 |
|
Income tax expense |
|
|
(1,116 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
|
(44,570 |
) |
|
|
(20,611 |
) |
|
|
(146,227 |
) |
|
|
(68,606 |
) |
Fair value adjustment to Series
E-1 convertible preferred stock options |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(964 |
) |
Net loss attributable to common
shareholders |
|
$ |
(44,570 |
) |
|
$ |
(20,611 |
) |
|
$ |
(146,227 |
) |
|
$ |
(69,570 |
) |
Net loss per share attributable
to common shareholders, basic and diluted |
|
$ |
(0.33 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.11 |
) |
|
$ |
(1.01 |
) |
Weighted-average shares used in
computing net loss per share attributable to common
shareholders, basic and diluted |
|
|
136,954,148 |
|
|
|
124,397,150 |
|
|
|
131,216,468 |
|
|
|
69,165,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adaptive BiotechnologiesBalance
Sheets(in thousands, except share and per share
amounts)(unaudited)
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
123,436 |
|
|
$ |
96,576 |
|
Short-term marketable securities (amortized cost of $564,036 and
$479,791, respectively) |
|
|
564,833 |
|
|
|
480,290 |
|
Accounts receivable, net |
|
|
10,047 |
|
|
|
12,676 |
|
Inventory |
|
|
14,063 |
|
|
|
9,069 |
|
Prepaid expenses and other current assets |
|
|
14,535 |
|
|
|
14,079 |
|
Total current assets |
|
|
726,914 |
|
|
|
612,690 |
|
Long-term assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
39,692 |
|
|
|
60,355 |
|
Operating lease right-of-use assets |
|
|
99,350 |
|
|
|
— |
|
Long-term marketable securities (amortized cost of $118,429 and
$105,263, respectively) |
|
|
118,525 |
|
|
|
105,435 |
|
Restricted cash |
|
|
2,138 |
|
|
|
2,138 |
|
Intangible assets, net |
|
|
10,225 |
|
|
|
11,928 |
|
Goodwill |
|
|
118,972 |
|
|
|
118,972 |
|
Other assets |
|
|
598 |
|
|
|
784 |
|
Total assets |
|
$ |
1,116,414 |
|
|
$ |
912,302 |
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,237 |
|
|
$ |
4,453 |
|
Accrued liabilities |
|
|
13,162 |
|
|
|
4,371 |
|
Accrued compensation and benefits |
|
|
11,950 |
|
|
|
8,124 |
|
Current portion of deferred rent |
|
|
— |
|
|
|
371 |
|
Current portion of operating lease liabilities |
|
|
3,529 |
|
|
|
— |
|
Current portion of deferred revenue |
|
|
73,319 |
|
|
|
60,994 |
|
Total current liabilities |
|
|
105,197 |
|
|
|
78,313 |
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Deferred rent liability, less current portion |
|
|
— |
|
|
|
6,918 |
|
Operating lease liabilities, less current portion |
|
|
104,333 |
|
|
|
— |
|
Financing obligation |
|
|
— |
|
|
|
36,607 |
|
Deferred revenue, less current portion |
|
|
163,618 |
|
|
|
219,332 |
|
Other long-term liabilities |
|
|
— |
|
|
|
93 |
|
Total liabilities |
|
|
373,148 |
|
|
|
341,263 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at
December 31, 2020 and 2019; no shares issued and outstanding
at December 31, 2020 and 2019 |
|
|
— |
|
|
|
— |
|
Common stock: $0.0001 par value, 340,000,000 shares authorized at
December 31, 2020 and 2019; 137,646,896 and 125,238,142 shares
issued and outstanding at December 31, 2020 and 2019,
respectively |
|
|
14 |
|
|
|
12 |
|
Additional paid-in capital |
|
|
1,253,971 |
|
|
|
935,834 |
|
Accumulated other comprehensive gain |
|
|
893 |
|
|
|
671 |
|
Accumulated deficit |
|
|
(511,612 |
) |
|
|
(365,478 |
) |
Total shareholders' equity |
|
|
743,266 |
|
|
|
571,039 |
|
Total liabilities and shareholders' equity |
|
$ |
1,116,414 |
|
|
$ |
912,302 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAThe following table sets forth a
reconciliation between our Adjusted EBITDA and our net loss, the
most directly comparable GAAP financial measure, for each of the
periods presented (in thousands, unaudited):
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net loss |
|
$ |
(44,570 |
) |
|
$ |
(20,611 |
) |
|
$ |
(146,227 |
) |
|
$ |
(68,606 |
) |
Interest and other income,
net |
|
|
(785 |
) |
|
|
(3,577 |
) |
|
|
(6,590 |
) |
|
|
(9,785 |
) |
Income tax expense |
|
|
1,116 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation and amortization
expense |
|
|
2,352 |
|
|
|
2,075 |
|
|
|
8,472 |
|
|
|
7,791 |
|
Share-based compensation
expense |
|
|
7,243 |
|
|
|
3,411 |
|
|
|
24,761 |
|
|
|
13,124 |
|
Adjusted EBITDA |
|
$ |
(34,644 |
) |
|
$ |
(18,702 |
) |
|
$ |
(119,584 |
) |
|
$ |
(57,476 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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