Adaptive Biotechnologies Corporation (“Adaptive Biotechnologies”)
(Nasdaq: ADPT) today reported financial results for the quarter
ended June 30, 2019.
“At Adaptive, we are translating the genetics of the adaptive
immune system into clinical products to transform the diagnosis and
treatment of disease,” said Chad Robins, chief executive
officer and co-founder of Adaptive. “We are making important
progress across on key catalysts that will enable near-term product
applications across our life sciences research, clinical
diagnostics, and drug discovery businesses, unlocking one of the
largest global addressable markets in healthcare.”
Recent Highlights
- Revenue of $22.1 million for the second quarter of 2019, an
increase of 91% over the second quarter of 2018
- Secured network participation agreements and/or positive
medical policies with several national payors for the use of
clonoSEQ to detect and assess minimal residual disease, bringing
the total number of covered lives to more than 165 million
- Received approval for the clonoSEQ Assay from the State of
New York Clinical Laboratory Evaluation Program, or CLEP, for the
detection and monitoring of MRD in patients with certain blood
cancers using DNA from bone marrow, blood and archived tissue
samples
- Opened a high throughput lab dedicated to rapid generation of
clinical signals for immunoSEQ Dx, leveraging the Company’s
collaboration with Microsoft
- Completed initial public offering, raising approximately $321
million of net proceeds, after deducting underwriting discounts and
commissions
Second Quarter 2019 Financial
Results
Revenue was $22.1 million for the quarter ended June 30, 2019,
representing a 91% increase from the second quarter in the prior
year. Sequencing revenue was $11.9 million for the quarter,
representing a 43% increase from the second quarter in the prior
year. Development revenue increased to $10.3 million for the
quarter, representing a 213% increase from the second quarter in
the prior year.
Operating expenses were $38.2 million for the second quarter of
2019, compared to $24.9 million in the second quarter of the prior
year, representing an increase of approximately 54%.
Net loss was $15.7 million in the second quarter of 2019,
compared to $12.5 million in the same period in 2018.
Adjusted EBITDA (non-GAAP) was a loss of $10.9 million for the
second quarter of 2019, compared to a loss of $9.4 million in the
second quarter of the prior year.
Cash, cash equivalents and marketable securities was $423.0
million as of June 30, 2019. Subsequent to the end of the quarter,
on July 1, 2019, Adaptive Biotechnologies completed its initial
public offering, raising approximately $321 million of net
proceeds, after deducting underwriting discounts and
commissions.
2019 Financial Guidance
Management will provide its 2019 revenue outlook on the
conference call scheduled to discuss the Company’s second quarter
2019 financial results.
Webcast and Conference Call
Information
Adaptive Biotechnologies will host a conference call to discuss
its second quarter 2019 financial results after market close on
Tuesday, August 13, 2019 at 4:30 PM Eastern Time. The conference
call can be accessed live over the phone (800) 361-2311 for U.S.
callers or (409) 937-8761 for international callers (Conference ID:
3095467). The webcast can be accessed at
http://investors.adaptivebiotech.com.
About Adaptive
Biotechnologies
Adaptive Biotechnologies 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 two 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. For more information,
please visit
adaptivebiotech.com.
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 Adaptive
Biotechnologies’s expected financial results for the year ended
December 31, 2019, 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,” “expect,” “plan,” “believe,”
“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 the Company files with the Securities
and Exchange Commission (the "SEC") 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
This press release 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 benefit (expense), 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 earnings
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.
Investor Contact
Lynn Lewis or Carrie Mendivilinvestors@adaptivebiotech.com
Media Contact:
Beth Keshishianmedia@adaptivebiotech.com
|
Adaptive BiotechnologiesCondensed Statements of
Operations(in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
Revenue |
|
|
|
|
|
|
|
|
Sequencing revenue |
|
$ |
11,865 |
|
|
$ |
8,281 |
|
|
$ |
17,948 |
|
|
$ |
14,061 |
|
Development revenue |
|
|
10,273 |
|
|
|
3,287 |
|
|
|
16,856 |
|
|
|
7,222 |
|
Total revenue |
|
|
22,138 |
|
|
|
11,568 |
|
|
|
34,804 |
|
|
|
21,283 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
5,734 |
|
|
|
5,044 |
|
|
|
10,722 |
|
|
|
9,033 |
|
Research and development |
|
|
16,527 |
|
|
|
9,452 |
|
|
|
29,010 |
|
|
|
18,307 |
|
Sales and marketing |
|
|
8,897 |
|
|
|
5,329 |
|
|
|
16,714 |
|
|
|
10,376 |
|
General and administrative |
|
|
6,662 |
|
|
|
4,632 |
|
|
|
13,666 |
|
|
|
9,175 |
|
Amortization of intangible assets |
|
|
423 |
|
|
|
424 |
|
|
|
842 |
|
|
|
843 |
|
Total operating expenses |
|
|
38,243 |
|
|
|
24,881 |
|
|
|
70,954 |
|
|
|
47,734 |
|
Loss from operations |
|
|
(16,105 |
) |
|
|
(13,313 |
) |
|
|
(36,150 |
) |
|
|
(26,451 |
) |
Interest and other income,
net |
|
|
446 |
|
|
|
820 |
|
|
|
2,105 |
|
|
|
1,567 |
|
Net loss |
|
|
(15,659 |
) |
|
|
(12,493 |
) |
|
|
(34,045 |
) |
|
|
(24,884 |
) |
Fair value adjustment to
Series E-1 convertible preferred stock options |
|
|
(710 |
) |
|
|
(2 |
) |
|
|
(964 |
) |
|
|
2 |
|
Net loss attributable to
common shareholders |
|
$ |
(16,369 |
) |
|
$ |
(12,495 |
) |
|
$ |
(35,009 |
) |
|
$ |
(24,882 |
) |
Net loss per share
attributable to common shareholders, basic and diluted |
|
$ |
(1.23 |
) |
|
$ |
(1.01 |
) |
|
$ |
(2.68 |
) |
|
$ |
(2.02 |
) |
Weighted-average shares used
in computing net loss per share attributable to common
shareholders, basic and diluted |
|
|
13,279,324 |
|
|
|
12,385,888 |
|
|
|
13,074,692 |
|
|
|
12,334,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adaptive BiotechnologiesCondensed Balance
Sheets(in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
June 30, 2019 |
|
December 31, 2018 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
48,458 |
|
|
$ |
55,030 |
|
Short-term marketable securities |
|
|
374,543 |
|
|
|
109,988 |
|
Accounts receivable, net |
|
|
7,252 |
|
|
|
4,807 |
|
Inventory |
|
|
8,004 |
|
|
|
7,838 |
|
Prepaid expenses and other current assets |
|
|
4,044 |
|
|
|
3,055 |
|
Total current assets |
|
|
442,301 |
|
|
|
180,718 |
|
Long-term assets |
|
|
|
|
Property and equipment, net |
|
|
22,298 |
|
|
|
19,125 |
|
Restricted cash and other assets |
|
|
5,040 |
|
|
|
247 |
|
Intangible assets, net |
|
|
12,784 |
|
|
|
13,626 |
|
Goodwill |
|
|
118,972 |
|
|
|
118,972 |
|
Total assets |
|
$ |
601,395 |
|
|
$ |
332,688 |
|
Liabilities,
convertible preferred stock and shareholders’ deficit |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
2,944 |
|
|
$ |
1,793 |
|
Accrued liabilities |
|
|
5,019 |
|
|
|
2,562 |
|
Accrued compensation and benefits |
|
|
4,429 |
|
|
|
4,641 |
|
Current portion of deferred rent |
|
|
1,276 |
|
|
|
1,109 |
|
Current deferred revenue |
|
|
61,194 |
|
|
|
12,695 |
|
Total current liabilities |
|
|
74,862 |
|
|
|
22,800 |
|
Long-term liabilities |
|
|
|
|
Convertible preferred stock warrant liability |
|
|
2,602 |
|
|
|
336 |
|
Deferred rent liability, less current portion |
|
|
5,455 |
|
|
|
6,102 |
|
Deferred revenue, less current portion |
|
|
240,919 |
|
|
|
704 |
|
Total liabilities |
|
|
323,838 |
|
|
|
29,942 |
|
Commitments and
contingencies |
|
|
|
|
Convertible preferred stock:
$0.0001 par value, 93,762,517 shares authorized |
|
|
|
|
|
|
|
|
at June 30, 2019 and December 31, 2018, respectively; 93,039,737
and 92,790,094 shares issued and outstanding at June 30, 2019
and December 31, 2018, respectively; aggregate liquidation
preference of $574,374 and $572,866 at June 30, 2019 and
December 31, 2018, respectively |
|
|
561,931 |
|
|
|
560,858 |
|
Shareholders’ deficit |
|
|
|
|
Common stock: $0.0001 par value, 131,000,000 shares authorized
at |
|
|
|
|
|
|
|
|
June 30, 2019 and December 31, 2018, respectively; 13,725,381
and 12,841,536 shares issued and outstanding at June 30, 2019
and December 31, 2018, respectively |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
46,160 |
|
|
|
37,902 |
|
Accumulated other comprehensive gain (loss) |
|
|
382 |
|
|
|
(107 |
) |
Accumulated deficit |
|
|
(330,917 |
) |
|
|
(295,908 |
) |
Total shareholders’ deficit |
|
|
(284,374 |
) |
|
|
(258,112 |
) |
Total liabilities, convertible preferred stock and shareholders’
deficit |
|
$ |
601,395 |
|
|
$ |
332,688 |
|
|
|
|
|
|
Adjusted EBITDA
The 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):
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
Net loss |
|
$ |
(15,659 |
) |
|
$ |
(12,493 |
) |
|
$ |
(34,045 |
) |
|
$ |
(24,884 |
) |
Interest and other income,
net |
|
|
(446 |
) |
|
|
(820 |
) |
|
|
(2,105 |
) |
|
|
(1,567 |
) |
Income tax (benefit)
expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation and amortization
expense |
|
|
1,870 |
|
|
|
1,491 |
|
|
|
3,653 |
|
|
|
2,942 |
|
Share-based compensation
expense |
|
|
3,332 |
|
|
|
2,448 |
|
|
|
6,378 |
|
|
|
5,550 |
|
Adjusted EBITDA |
|
$ |
(10,903 |
) |
|
$ |
(9,374 |
) |
|
$ |
(26,119 |
) |
|
$ |
(17,959 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adaptive Biotechnologies (NASDAQ:ADPT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Adaptive Biotechnologies (NASDAQ:ADPT)
Historical Stock Chart
From Apr 2023 to Apr 2024