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, 2023.
“2023 was a year of execution for MRD and strategic evolution
for IM. The MRD business ended the year with 53% growth in clonoSEQ
tests delivered and IM achieved key target and drug discovery
milestones in cancer and autoimmune disorders,” said Chad Robins,
chief executive officer and co-founder of Adaptive Biotechnologies.
“2024 is off to a strong start. As momentum continues to build in
both MRD and IM, we look forward to maximizing the value of each of
these distinct opportunities for our patients and
shareholders.”
Recent Highlights
- Revenue for the
fourth quarter and full year 2023 was $45.8 million and $170.3
million, respectively. The MRD business, which contributed over 60%
of revenue, grew 9% and 18% over the corresponding periods. This
growth was more than offset by an expected reduction in GNE
amortization in the IM business.
- clonoSEQ test volume
increased 49% to 15,680 tests delivered in the fourth quarter of
2023, compared to the fourth quarter 2022 and ended the year with
56,496 tests delivered, up 53% versus 2022.
- Signed partnership
with Flatiron Health™, a leading provider of EHR software and
services for community oncology, to integrate the clonoSEQ® Assay
into Flatiron’s OncoEMR™ system.
- IND secured for the
first cell therapy product candidate; built regulated process
workflow for the fully personalized cell therapy program.
- Strategic review
continues with the goal of maximizing the value of the MRD and
Immune Medicine businesses.
Fourth Quarter 2023 Financial
Results
Revenue was $45.8 million for the quarter ended December 31,
2023, representing a 17% decrease from the fourth quarter in the
prior year. MRD revenue was $30.8 million for the quarter,
representing a 9% increase from the fourth quarter in the prior
year. Immune Medicine revenue was $15.0 million for the quarter,
representing a 45% decrease from the fourth quarter in the prior
year.
Operating expenses, which include a $25.4 million lease
impairment charge, were $116.9 million for the fourth quarter of
2023, compared to $94.4 million in the fourth quarter of the prior
year, representing an increase of 24%. Excluding the impact of the
lease impairment charge, operating expenses for the fourth quarter
of 2023 decreased 3% compared to the fourth quarter of the prior
year. Interest and other income, net was $4.6 million for the
fourth quarter of 2023, compared to $2.6 million in the fourth
quarter of the prior year. Interest expense from our revenue
interest purchase agreement was $3.0 million for the fourth quarter
of 2023, compared to $3.6 million in the fourth quarter of the
prior year.
Net loss was $69.5 million for the fourth quarter of 2023,
compared to $40.2 million for the same period in 2022.
Adjusted EBITDA (non-GAAP) was a loss of $24.7 million for the
fourth quarter of 2023, compared to a loss of $19.6 million for the
fourth quarter of the prior year.
Full Year 2023 Financial
Results
Revenue was $170.3 million for the year ended December 31, 2023,
representing an 8% decrease from the prior year. MRD revenue was
$102.7 million in 2023, representing an 18% increase from the prior
year. Immune Medicine revenue was $67.5 million in 2023,
representing a 31% decrease from 2022.
Operating expenses for 2023, which include a $25.4 million lease
impairment charge, were $397.3 million, compared to $385.5 million
for 2022, representing an increase of 3%. Excluding the impact of
the lease impairment charge, operating expenses for 2023 decreased
4% compared to the prior year. Interest and other income, net was
$15.5 million in 2023, compared to $4.1 million in 2022. Interest
expense from our revenue interest purchase agreement was $13.8
million in 2023, compared to $4.2 million in 2022.
Net loss was $225.3 million in 2023, compared to $200.4 million
in 2022.
Adjusted EBITDA (non-GAAP) was a loss of $116.4 million for
2023, compared to a loss of $121.6 million in the prior year.
Cash, cash equivalents and marketable securities was $346.4
million as of December 31, 2023.
2024 Financial Guidance
Adaptive Biotechnologies expects full year revenue for the MRD
business to be between $130 million and $140 million. No
revenue guidance is provided for the Immune Medicine business.
We expect full year operating expenses,
including cost of revenue, to be between $360 million and $370
million.
Management will provide further details on the
outlook during the conference call.
Webcast and Conference Call Information
Adaptive Biotechnologies will host a conference call to discuss
its fourth quarter and full year 2023 financial results after
market close on Wednesday, February 14, 2024 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. We apply
our platform to partner with biopharmaceutical companies, inform
drug development, and develop clinical diagnostics across our two
business areas: Minimal Residual Disease (MRD) and Immune Medicine.
Our commercial products and clinical pipeline enable the diagnosis,
monitoring, and 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.
Use of Non-GAAP Financial
Measure
To supplement our unaudited consolidated statements of
operations and unaudited 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 attributable
to Adaptive Biotechnologies Corporation adjusted for interest and
other income, net, interest expense, income tax (expense) benefit,
depreciation and amortization expense, impairment costs for
right-of-use and related long-lived assets, restructuring expense
and share-based compensation expense. We have provided a
reconciliation of net loss attributable to Adaptive Biotechnologies
Corporation, 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;
- interest expense, which is an ongoing
element of our costs to operate;
- 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 noncash component of employee
compensation expense;
- right-of-use and related long-lived
assets impairment costs; and
- the impact of earnings or charges
resulting from matters we consider not to be reflective, on a
recurring basis, of our ongoing operations, such as our March 2022
restructuring and reduction in workforce.
In addition, Adjusted EBITDA may not be comparable to similarly
titled measures used by other companies in our industry or across
different industries.
ADAPTIVE INVESTORSKarina Calzadilla, Vice
President, Investor
Relations201-396-1687investors@adaptivebiotech.com
ADAPTIVE MEDIAErica Jones, Associate Corporate
Communications Director206-279-2423media@adaptivebiotech.com
Adaptive BiotechnologiesConsolidated Statements of
Operations(in thousands, except share and per share
amounts)(unaudited) |
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
45,784 |
|
|
$ |
55,198 |
|
|
$ |
170,276 |
|
|
$ |
185,308 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
19,616 |
|
|
|
16,589 |
|
|
|
75,553 |
|
|
|
57,909 |
|
Research and development |
|
|
28,746 |
|
|
|
31,222 |
|
|
|
122,117 |
|
|
|
141,756 |
|
Sales and marketing |
|
|
21,906 |
|
|
|
23,716 |
|
|
|
88,579 |
|
|
|
95,603 |
|
General and administrative |
|
|
20,726 |
|
|
|
22,428 |
|
|
|
83,934 |
|
|
|
88,527 |
|
Amortization of intangible assets |
|
|
429 |
|
|
|
429 |
|
|
|
1,699 |
|
|
|
1,699 |
|
Impairment of right-of-use and related long-lived assets |
|
|
25,429 |
|
|
|
— |
|
|
|
25,429 |
|
|
|
— |
|
Total operating expenses |
|
|
116,852 |
|
|
|
94,384 |
|
|
|
397,311 |
|
|
|
385,494 |
|
Loss from operations |
|
|
(71,068 |
) |
|
|
(39,186 |
) |
|
|
(227,035 |
) |
|
|
(200,186 |
) |
Interest and other income,
net |
|
|
4,613 |
|
|
|
2,602 |
|
|
|
15,531 |
|
|
|
4,056 |
|
Interest expense |
|
|
(3,012 |
) |
|
|
(3,585 |
) |
|
|
(13,800 |
) |
|
|
(4,238 |
) |
Net loss |
|
|
(69,467 |
) |
|
|
(40,169 |
) |
|
|
(225,304 |
) |
|
|
(200,368 |
) |
Add: Net loss attributable to noncontrolling interest |
|
|
26 |
|
|
|
41 |
|
|
|
54 |
|
|
|
177 |
|
Net loss attributable to
Adaptive Biotechnologies Corporation |
|
$ |
(69,441 |
) |
|
$ |
(40,128 |
) |
|
$ |
(225,250 |
) |
|
$ |
(200,191 |
) |
Net loss per share
attributable to Adaptive Biotechnologies Corporation common
shareholders, basic and diluted |
|
$ |
(0.48 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.56 |
) |
|
$ |
(1.40 |
) |
Weighted-average shares used
in computing net loss per share attributable to Adaptive
Biotechnologies Corporation common shareholders, basic and
diluted |
|
|
144,900,669 |
|
|
|
143,054,722 |
|
|
|
144,383,294 |
|
|
|
142,515,917 |
|
Adaptive BiotechnologiesConsolidated Balance
Sheets(in thousands, except share and per share
amounts)(unaudited) |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
65,064 |
|
|
$ |
90,030 |
|
Short-term marketable securities (amortized cost of $281,122 and
$412,282, respectively) |
|
|
281,337 |
|
|
|
408,166 |
|
Accounts receivable, net |
|
|
37,969 |
|
|
|
40,057 |
|
Inventory |
|
|
14,448 |
|
|
|
14,453 |
|
Prepaid expenses and other current assets |
|
|
11,370 |
|
|
|
9,440 |
|
Total current assets |
|
|
410,188 |
|
|
|
562,146 |
|
Long-term assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
68,227 |
|
|
|
83,447 |
|
Operating lease right-of-use assets |
|
|
52,096 |
|
|
|
80,763 |
|
Restricted cash |
|
|
2,932 |
|
|
|
2,398 |
|
Intangible assets, net |
|
|
5,128 |
|
|
|
6,827 |
|
Goodwill |
|
|
118,972 |
|
|
|
118,972 |
|
Other assets |
|
|
3,591 |
|
|
|
2,064 |
|
Total assets |
|
$ |
661,134 |
|
|
$ |
856,617 |
|
Liabilities and
shareholders’ equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
7,719 |
|
|
$ |
8,084 |
|
Accrued liabilities |
|
|
8,597 |
|
|
|
12,424 |
|
Accrued compensation and benefits |
|
|
13,685 |
|
|
|
15,935 |
|
Current portion of operating lease liabilities |
|
|
9,384 |
|
|
|
9,230 |
|
Current portion of deferred revenue |
|
|
48,630 |
|
|
|
64,115 |
|
Total current liabilities |
|
|
88,015 |
|
|
|
109,788 |
|
Long-term liabilities |
|
|
|
|
|
|
Operating lease liabilities, less current portion |
|
|
89,388 |
|
|
|
98,772 |
|
Deferred revenue, less current portion |
|
|
44,793 |
|
|
|
58,599 |
|
Revenue interest liability, net |
|
|
130,660 |
|
|
|
125,360 |
|
Total liabilities |
|
|
352,856 |
|
|
|
392,519 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at
December 31, 2023 and 2022; no shares issued and outstanding at
December 31, 2023 and 2022 |
|
|
— |
|
|
|
— |
|
Common stock: $0.0001 par value, 340,000,000 shares authorized at
December 31, 2023 and 2022; 145,082,271 and 143,105,002 shares
issued and outstanding at December 31, 2023 and 2022,
respectively |
|
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
|
1,452,502 |
|
|
|
1,387,349 |
|
Accumulated other comprehensive gain (loss) |
|
|
215 |
|
|
|
(4,116 |
) |
Accumulated deficit |
|
|
(1,144,332 |
) |
|
|
(919,082 |
) |
Total Adaptive Biotechnologies Corporation shareholders’
equity |
|
|
308,399 |
|
|
|
464,165 |
|
Noncontrolling interest |
|
|
(121 |
) |
|
|
(67 |
) |
Total shareholders’ equity |
|
|
308,278 |
|
|
|
464,098 |
|
Total liabilities and shareholders’ equity |
|
$ |
661,134 |
|
|
$ |
856,617 |
|
Adjusted EBITDA
The following table sets forth a reconciliation between our
Adjusted EBITDA and net loss attributable to Adaptive
Biotechnologies Corporation, 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, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net loss attributable to Adaptive Biotechnologies Corporation |
|
$ |
(69,441 |
) |
|
$ |
(40,128 |
) |
|
$ |
(225,250 |
) |
|
$ |
(200,191 |
) |
Interest and other income,
net |
|
|
(4,613 |
) |
|
|
(2,602 |
) |
|
|
(15,531 |
) |
|
|
(4,056 |
) |
Interest expense |
|
|
3,012 |
|
|
|
3,585 |
|
|
|
13,800 |
|
|
|
4,238 |
|
Depreciation and amortization
expense |
|
|
5,392 |
|
|
|
5,286 |
|
|
|
22,231 |
|
|
|
20,920 |
|
Impairment of right-of-use and
related long-lived assets |
|
|
25,429 |
|
|
|
— |
|
|
|
25,429 |
|
|
|
— |
|
Restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,023 |
|
Share-based compensation
expense |
|
|
15,556 |
|
|
|
14,294 |
|
|
|
62,908 |
|
|
|
55,477 |
|
Adjusted EBITDA |
|
$ |
(24,665 |
) |
|
$ |
(19,565 |
) |
|
$ |
(116,413 |
) |
|
$ |
(121,589 |
) |
Grafico Azioni Adaptive Biotechnologies (NASDAQ:ADPT)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Adaptive Biotechnologies (NASDAQ:ADPT)
Storico
Da Set 2023 a Set 2024