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, 2021.
“We started the year strong with revenue increasing 84% year
over year, driven by growth in both our sequencing and development
revenue categories,” said Chad Robins, chief executive officer and
co-founder of Adaptive Biotechnologies. “I am encouraged by the
solid momentum across all areas of our business as we continue to
capitalize on the multiple opportunities originating from our
platform.”
Recent Highlights
- Revenue of $38.4
million for the first quarter 2021, representing an 84% increase
from the first quarter 2020
- clonoSEQ clinical
sequencing volume for the first quarter 2021 grew 35% versus prior
year
- Recognized $7.0
million in MRD regulatory milestones resulting from two
biopharmaceutical partners who used data from our MRD assay to
support their respective U.S. Food and Drug Administration (FDA)
drug approvals
- Received Emergency
Use Authorization (EUA) from FDA for T-Detect™ COVID to confirm
recent or prior COVID-19 infection
- Generated new data
that confirms the ability of T-Detect to diagnose patients with
Crohn’s disease and distinguish between patients with colitis
- Named Leslie Trigg
and Katey Einterz Owen, PhD to the Board of Directors
First Quarter 2021 Financial
Results
Revenue was $38.4 million for the quarter ended March 31, 2021,
representing an 84% increase from the first quarter in the prior
year. Sequencing revenue was $15.2 million for the quarter,
representing a 60% increase from the first quarter in the prior
year. Development revenue was $23.3 million for the quarter,
representing a 103% increase from the first quarter in the prior
year.
Operating expenses were $79.7 million for the first quarter of
2021, compared to $55.5 million in the first quarter of the prior
year, representing an increase of 44%.
Net loss was $40.6 million for the first quarter of 2021,
compared to $31.4 million for the same period in 2020.
Adjusted EBITDA (non-GAAP) was a loss of $30.1 million for the
first quarter of 2021, compared to a loss of $28.0 million for the
first quarter of the prior year.
Cash, cash equivalents and marketable securities was $745.0
million as of March 31, 2021.
2021 Financial Guidance
Adaptive Biotechnologies expects full year 2021
revenue to be in the range of $145 million to $155 million,
representing 52% growth at the mid-point of the range over full
year 2020 revenue.
Webcast and Conference Call
Information
Adaptive Biotechnologies will host a conference call to discuss
its first quarter 2021 financial results after market close on
Wednesday, May 5, 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 unaudited condensed consolidated statements of
operations and unaudited condensed consolidated balance sheets,
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 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 MEDIABeth
Keshishian917-912-7195media@adaptivebiotech.com
ADAPTIVE INVESTORSKarina Calzadilla, Vice
President, Investor Relations201-396-1687Carrie Mendivil, Gilmartin
Groupinvestors@adaptivebiotech.com
Adaptive
BiotechnologiesCondensed Consolidated Statements of
Operations(in thousands, except share and per share
amounts)(unaudited)
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
2020 |
|
Revenue |
|
|
|
|
|
|
|
|
Sequencing revenue |
|
$ |
15,174 |
|
|
$ |
9,469 |
|
Development revenue |
|
|
23,268 |
|
|
|
11,441 |
|
Total revenue |
|
|
38,442 |
|
|
|
20,910 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
9,991 |
|
|
|
5,343 |
|
Research and development |
|
|
33,772 |
|
|
|
23,935 |
|
Sales and marketing |
|
|
20,604 |
|
|
|
14,007 |
|
General and administrative |
|
|
14,936 |
|
|
|
11,821 |
|
Amortization of intangible assets |
|
|
419 |
|
|
|
424 |
|
Total operating expenses |
|
|
79,722 |
|
|
|
55,530 |
|
Loss from operations |
|
|
(41,280 |
) |
|
|
(34,620 |
) |
Interest and other income,
net |
|
|
638 |
|
|
|
2,894 |
|
Income tax benefit |
|
|
— |
|
|
|
323 |
|
Net loss |
|
$ |
(40,642 |
) |
|
$ |
(31,403 |
) |
Net loss per share attributable
to common shareholders, basic and diluted |
|
$ |
(0.29 |
) |
|
$ |
(0.25 |
) |
Weighted-average shares used in
computing net loss per share attributable to common shareholders,
basic and diluted |
|
|
138,967,754 |
|
|
|
126,058,389 |
|
Adaptive
BiotechnologiesCondensed Consolidated Balance Sheets(in
thousands, except share and per share amounts)
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
|
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
173,624 |
|
|
$ |
123,436 |
|
Short-term marketable securities (amortized cost of $540,016 and
$564,036, respectively) |
|
|
540,640 |
|
|
|
564,833 |
|
Accounts receivable, net |
|
|
19,754 |
|
|
|
10,047 |
|
Inventory |
|
|
17,422 |
|
|
|
14,063 |
|
Prepaid expenses and other current assets |
|
|
13,520 |
|
|
|
14,535 |
|
Total current assets |
|
|
764,960 |
|
|
|
726,914 |
|
Long-term assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
56,308 |
|
|
|
39,692 |
|
Operating lease right-of-use assets |
|
|
88,504 |
|
|
|
99,350 |
|
Long-term marketable securities (amortized cost of $30,681 and
$118,429, respectively) |
|
|
30,688 |
|
|
|
118,525 |
|
Restricted cash |
|
|
2,138 |
|
|
|
2,138 |
|
Intangible assets, net |
|
|
9,806 |
|
|
|
10,225 |
|
Goodwill |
|
|
118,972 |
|
|
|
118,972 |
|
Other assets |
|
|
717 |
|
|
|
598 |
|
Total assets |
|
$ |
1,072,093 |
|
|
$ |
1,116,414 |
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
5,197 |
|
|
$ |
3,237 |
|
Accrued liabilities |
|
|
13,484 |
|
|
|
13,162 |
|
Accrued compensation and benefits |
|
|
5,431 |
|
|
|
11,950 |
|
Current portion of operating lease liabilities |
|
|
4,308 |
|
|
|
3,529 |
|
Current portion of deferred revenue |
|
|
78,348 |
|
|
|
73,319 |
|
Total current liabilities |
|
|
106,768 |
|
|
|
105,197 |
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Operating lease liabilities, less current portion |
|
|
95,252 |
|
|
|
104,333 |
|
Deferred revenue, less current portion |
|
|
144,356 |
|
|
|
163,618 |
|
Total liabilities |
|
|
346,376 |
|
|
|
373,148 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
|
|
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at
March 31, 2021 and December 31, 2020; no shares issued and
outstanding at March 31, 2021 and December 31, 2020 |
|
|
— |
|
|
|
— |
|
Common stock: $0.0001 par value, 340,000,000 shares authorized at
March 31, 2021 and December 31, 2020; 139,884,698 and
137,646,896 shares issued and outstanding at March 31, 2021 and
December 31, 2020, respectively |
|
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
|
1,277,197 |
|
|
|
1,253,971 |
|
Accumulated other comprehensive gain |
|
|
631 |
|
|
|
893 |
|
Accumulated deficit |
|
|
(552,254 |
) |
|
|
(511,612 |
) |
Total Adaptive Biotechnologies Corporation shareholders’
equity |
|
|
725,588 |
|
|
|
743,266 |
|
Noncontrolling interest |
|
|
129 |
|
|
|
— |
|
Total shareholders’ equity |
|
|
725,717 |
|
|
|
743,266 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,072,093 |
|
|
$ |
1,116,414 |
|
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,
unaudited):
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(40,642 |
) |
|
$ |
(31,403 |
) |
Interest and other income,
net |
|
|
(638 |
) |
|
|
(2,894 |
) |
Income tax benefit |
|
|
— |
|
|
|
(323 |
) |
Depreciation and amortization
expense |
|
|
2,671 |
|
|
|
1,978 |
|
Share-based compensation
expense |
|
|
8,484 |
|
|
|
4,675 |
|
Adjusted EBITDA |
|
$ |
(30,125 |
) |
|
$ |
(27,967 |
) |
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