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, 2020.
“The current coronavirus pandemic is highlighting the critical
importance of a deeper understanding of the immune response to
disease broadly, making Adaptive’s technology more relevant than
ever,” said Chad Robins, chief executive officer and co-founder of
Adaptive Biotechnologies. “In the past several months, we have
demonstrated that we can read and translate the genetics of immune
receptors in blood, including T-cell response at scale, which is
enabling us to rapidly deliver novel, immune-driven products.”
Recent Highlights
- Revenue was $21.0 million for the quarter ended June 30, 2020,
representing a 5% decrease from the second quarter in the prior
year.
- Clinical sequencing volume increased 31% to 3,136 clinical
tests delivered in the second quarter of 2020 compared to the
second quarter 2019.
- Advanced our first immunoSEQ Dx clinical product in development
for SARS-CoV-2 based on favorable results from a head-to-head study
comparing Adaptive’s clinical T-cell based diagnostic test to two
leading serology tests with additional publication
forthcoming.
- Launched a new research product, immunoSEQ T-MAP™ COVID, to
offer vaccine developers a tool to accurately and reproducibly
measure the T-cell immune response to vaccines in development and
track the persistence of that response over time.
- Received clearance from the U.S. Food and Drug Administration
(FDA) for clonoSEQ® Assay to detect and monitor minimal residual
disease (MRD) in blood or bone marrow from patients with chronic
lymphocytic leukemia (CLL).
- Initiated two clinical validation studies for immunoSEQ Dx®:
ImmuneSENSE Lyme for Lyme disease, and ImmuneRACE to collect blood
samples from people who have been exposed, are actively fighting or
have recently recovered from COVID-19.
- Strengthened balance sheet with the successful completion of
underwritten public offering, raising approximately $271.7
million in net proceeds.
Second Quarter 2020 Financial
Results
Revenue was $21.0 million for the quarter ended June 30, 2020,
representing a 5% decrease from the second quarter in the prior
year. Sequencing revenue was $8.0 million for the quarter,
representing a 33% decrease from the second quarter in the prior
year. Development revenue increased to $13.0 million for the
quarter, representing a 27% increase from the second quarter in the
prior year.
Operating expenses were $57.9 million for the second quarter of
2020, compared to $38.2 million in the second quarter of the prior
year, representing an increase of 52%.
Net loss was $33.5 million for the second quarter of 2020,
compared to $15.7 million for the same period in 2019.
Adjusted EBITDA (non-GAAP) was a loss of $28.5 million for the
second quarter of 2020, compared to a loss of $10.9 million for the
second quarter of the prior year.
Cash, cash equivalents and marketable securities was $627.8
million as of June 30, 2020. Subsequent to the quarter, Adaptive
Biotechnologies raised approximately $271.7 million in net
proceeds, after deducting underwriting discounts and net offering
expenses payable by us, from a follow-on offering, which closed in
mid-July.
2020 Financial Guidance
Adaptive Biotechnologies is not providing
2020 financial guidance due to the continued uncertainties from the
impact of COVID-19.
Webcast and Conference Call
Information
Adaptive Biotechnologies will host a conference call to discuss
its second quarter financial results after market close on Monday,
August 10, 2020 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 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.
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
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 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 benefit (expense), 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 MEDIA Beth Keshishian 917-912-7195
media@adaptivebiotech.com
ADAPTIVE INVESTORS Karina Calzadilla, Vice
President, Investor Relations201-396-1687 Carrie Mendivil,
Gilmartin Group investors@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, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
(unaudited) |
Revenue |
|
|
|
|
|
|
|
Sequencing revenue |
$ |
7,985 |
|
|
$ |
11,865 |
|
|
$ |
17,454 |
|
|
$ |
17,948 |
|
Development revenue |
|
13,003 |
|
|
|
10,273 |
|
|
|
24,444 |
|
|
|
16,856 |
|
Total revenue |
|
20,988 |
|
|
|
22,138 |
|
|
|
41,898 |
|
|
|
34,804 |
|
Operating
expenses |
|
|
|
|
|
|
|
Cost of revenue |
|
4,912 |
|
|
|
5,734 |
|
|
|
10,255 |
|
|
|
10,722 |
|
Research and development |
|
25,992 |
|
|
|
16,527 |
|
|
|
49,927 |
|
|
|
29,010 |
|
Sales and marketing |
|
14,332 |
|
|
|
8,897 |
|
|
|
28,339 |
|
|
|
16,714 |
|
General and administrative |
|
12,238 |
|
|
|
6,662 |
|
|
|
24,059 |
|
|
|
13,666 |
|
Amortization of intangible assets |
|
423 |
|
|
|
423 |
|
|
|
847 |
|
|
|
842 |
|
Total operating expenses |
|
57,897 |
|
|
|
38,243 |
|
|
|
113,427 |
|
|
|
70,954 |
|
Loss from operations |
|
(36,909 |
) |
|
|
(16,105 |
) |
|
|
(71,529 |
) |
|
|
(36,150 |
) |
Interest and other income,
net |
|
1,893 |
|
|
|
446 |
|
|
|
4,787 |
|
|
|
2,105 |
|
Income tax benefit |
|
1,481 |
|
|
|
— |
|
|
|
1,804 |
|
|
|
— |
|
Net loss |
|
(33,535 |
) |
|
|
(15,659 |
) |
|
|
(64,938 |
) |
|
|
(34,045 |
) |
Fair value adjustment to Series
E-1 convertible preferred stock options |
|
— |
|
|
|
(710 |
) |
|
|
— |
|
|
|
(964 |
) |
Net loss attributable to common
shareholders |
$ |
(33,535 |
) |
|
$ |
(16,369 |
) |
|
$ |
(64,938 |
) |
|
$ |
(35,009 |
) |
Net loss per share attributable
to common shareholders, basic and diluted |
$ |
(0.26 |
) |
|
$ |
(1.23 |
) |
|
$ |
(0.51 |
) |
|
$ |
(2.68 |
) |
Weighted-average shares used in
computing net loss per share attributable to common
shareholders, basic and diluted |
|
127,383,582 |
|
|
|
13,279,324 |
|
|
|
126,720,986 |
|
|
|
13,074,692 |
|
Adaptive
BiotechnologiesCondensed Balance Sheets(in thousands,
except share and per share amounts)
|
|
June 30, |
|
December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
365,440 |
|
|
$ |
96,576 |
|
Short-term marketable securities (amortized cost of $203,765 and
$479,791, respectively) |
|
|
204,940 |
|
|
|
480,290 |
|
Accounts receivable, net |
|
|
7,914 |
|
|
|
12,676 |
|
Inventory |
|
|
10,536 |
|
|
|
9,069 |
|
Prepaid expenses and other current assets |
|
|
10,691 |
|
|
|
14,079 |
|
Total current assets |
|
|
599,521 |
|
|
|
612,690 |
|
Long-term assets |
|
|
|
|
Property and equipment, net |
|
|
26,833 |
|
|
|
60,355 |
|
Operating lease right-of-use assets |
|
|
37,619 |
|
|
|
— |
|
Long-term marketable securities (amortized cost of $56,405 and
$105,263, respectively) |
|
|
57,383 |
|
|
|
105,435 |
|
Restricted cash |
|
|
2,138 |
|
|
|
2,138 |
|
Intangible assets, net |
|
|
11,081 |
|
|
|
11,928 |
|
Goodwill |
|
|
118,972 |
|
|
|
118,972 |
|
Other assets |
|
|
1,275 |
|
|
|
784 |
|
Total assets |
|
$ |
854,822 |
|
|
$ |
912,302 |
|
Liabilities and
shareholders’ equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
3,686 |
|
|
$ |
4,453 |
|
Accrued liabilities |
|
|
4,832 |
|
|
|
4,371 |
|
Accrued compensation and benefits |
|
|
5,976 |
|
|
|
8,124 |
|
Current portion of deferred rent |
|
|
— |
|
|
|
371 |
|
Current operating lease liabilities |
|
|
3,229 |
|
|
|
— |
|
Current deferred revenue |
|
|
75,699 |
|
|
|
60,994 |
|
Total current liabilities |
|
|
93,422 |
|
|
|
78,313 |
|
Long-term liabilities |
|
|
|
|
Deferred rent liability, less current portion |
|
|
— |
|
|
|
6,918 |
|
Operating lease liabilities, less current portion |
|
|
42,503 |
|
|
|
— |
|
Financing obligation |
|
|
— |
|
|
|
36,607 |
|
Deferred revenue, less current portion |
|
|
187,462 |
|
|
|
219,332 |
|
Other long-term liabilities |
|
|
1,496 |
|
|
|
93 |
|
Total liabilities |
|
|
324,883 |
|
|
|
341,263 |
|
Commitments and
contingencies |
|
|
|
|
Shareholders’ equity |
|
|
|
|
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at
June 30, 2020 and December 31, 2019; no shares issued and
outstanding at June 30, 2020 and December 31, 2019 |
|
|
— |
|
|
|
— |
|
Common stock: $0.0001 par value, 340,000,000 shares authorized at
June 30, 2020 and December 31, 2019; 128,233,842 and
125,238,142 shares issued and outstanding at June 30, 2020
and December 31, 2019, respectively |
|
|
12 |
|
|
|
12 |
|
Additional paid-in capital |
|
|
958,097 |
|
|
|
935,834 |
|
Accumulated other comprehensive gain |
|
|
2,153 |
|
|
|
671 |
|
Accumulated deficit |
|
|
(430,323 |
) |
|
|
(365,478 |
) |
Total shareholders’ equity |
|
|
529,939 |
|
|
|
571,039 |
|
Total liabilities and shareholders’
equity |
|
$ |
854,822 |
|
|
$ |
912,302 |
|
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 Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
(unaudited) |
Net loss |
$ |
(33,535 |
) |
|
$ |
(15,659 |
) |
|
$ |
(64,938 |
) |
|
$ |
(34,045 |
) |
Interest and other income,
net |
|
(1,893 |
) |
|
|
(446 |
) |
|
|
(4,787 |
) |
|
|
(2,105 |
) |
Income tax benefit |
|
(1,481 |
) |
|
|
— |
|
|
|
(1,804 |
) |
|
|
— |
|
Depreciation and amortization
expense |
|
1,998 |
|
|
|
1,870 |
|
|
|
3,976 |
|
|
|
3,653 |
|
Share-based compensation
expense |
|
6,373 |
|
|
|
3,332 |
|
|
|
11,048 |
|
|
|
6,378 |
|
Adjusted EBITDA |
$ |
(28,538 |
) |
|
$ |
(10,903 |
) |
|
$ |
(56,505 |
) |
|
$ |
(26,119 |
) |
Adaptive Biotechnologies (NASDAQ:ADPT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Adaptive Biotechnologies (NASDAQ:ADPT)
Historical Stock Chart
From Sep 2023 to Sep 2024