Adicet Bio, Inc. (ACET): history, ownership, mission, how it works & makes money

A Brief History of Adicet Bio, Inc.

Adicet Bio, Inc. is a clinical-stage biotechnology company specializing in the development of innovative immunotherapies for cancer treatment. Founded in 2013, the company has focused on harnessing the power of the immune system to combat malignancies.

Corporate Developments

In January 2024, Adicet Bio entered into an underwriting agreement with Jefferies LLC and Guggenheim Securities, LLC for an underwritten public offering of 32,379,667 shares of common stock, including pre-funded warrants. The public offering price was set at $2.40 per share, with net proceeds from the offering approximating $91.7 million after deducting underwriting discounts and commissions.

Financial Performance

As of September 30, 2024, Adicet Bio reported a net loss of $88.4 million for the nine months ended September 30, 2024, a decrease from $113.2 million in the same period the previous year, marking a 22% improvement. The company's accumulated deficit stood at $469.2 million at the end of Q3 2024.

Research and Development Focus

Adicet Bio's primary focus has been on its proprietary cell therapy platforms, which include the development of allogeneic gamma delta T cell therapies. The company has made significant strides in clinical development, with ongoing trials evaluating the safety and efficacy of its lead candidates.

Market Position and Collaborations

As of late 2024, Adicet Bio has maintained a strategic collaboration with Regeneron Pharmaceuticals, primarily focused on the development of innovative therapies. The collaboration has positioned Adicet to leverage Regeneron's extensive expertise and resources in the biotechnology sector.

Operational Footprint

Adicet Bio operates primarily from its headquarters in Redwood City, California, and has expanded its research capabilities with the establishment of a facility in Boston, Massachusetts. The company continues to invest in its operational infrastructure to support ongoing and future clinical trials.

Future Outlook

Looking ahead, Adicet Bio aims to advance its clinical programs and is actively seeking additional funding avenues to support its research and development activities. The company is committed to delivering innovative therapies to patients and addressing unmet medical needs in oncology.

A Who Owns Adicet Bio, Inc. (ACET)

Shareholder Composition

As of September 30, 2024, the total number of outstanding shares of Adicet Bio, Inc. (ACET) was 82,400,960. The ownership structure includes both institutional and retail investors, with significant holdings by major institutional investors and insiders.

Institutional Ownership

Institutional investors hold a substantial portion of Adicet Bio's shares. The following table summarizes the top institutional shareholders as of the most recent reporting period:

Insider Ownership

Insider ownership is also a significant aspect of Adicet Bio's equity structure. Key executives and board members hold a notable number of shares. The following table details the top insiders as of September 30, 2024:

Recent Share Issuances

In January 2024, Adicet Bio completed an underwritten public offering of 32,379,667 shares at a public offering price of $2.40 per share, raising approximately $91.7 million net of offering expenses. This issuance has diluted existing shareholders but provided necessary capital for ongoing operations.

Stock Performance and Market Capitalization

As of September 30, 2024, Adicet Bio's market capitalization stood at approximately $196.4 million, based on the stock price of $2.38 per share. The stock has experienced volatility, typical for clinical-stage biotech companies, reflecting the uncertainties inherent in drug development and regulatory approval processes.

Related Party Transactions

Regeneron Pharmaceuticals, Inc. is a notable related party, holding 883,568 shares of common stock. This relationship stems from a collaboration agreement where Adicet Bio has licensed its product candidates, which can influence ownership dynamics as the company progresses through clinical trials.

Future Funding Requirements

To sustain operations and fund ongoing clinical trials, Adicet Bio will likely need to pursue additional funding. The company has an accumulated deficit of $469.2 million as of September 30, 2024. The ongoing need for capital raises questions about future shareholder dilution and the strategic direction of the company.

Adicet Bio, Inc. (ACET) Mission Statement

Company Overview

Adicet Bio, Inc. is a clinical-stage biotechnology company focused on discovering and developing allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company's mission is to advance a pipeline of "off-the-shelf" gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients.

Financial Performance

As of September 30, 2024, Adicet Bio reported a net loss of $30.5 million for the three months ended, contributing to an accumulated deficit of $469.2 million since inception. The company had cash, cash equivalents, and short-term investments totaling $202.1 million, which it believes will be sufficient to fund operations for at least the next twelve months .

Research and Development Focus

Adicet Bio is actively engaged in the clinical development of its product candidates, including ADI-001 and ADI-270. The company expects to incur significant expenditures for ongoing and future clinical trials and regulatory approvals. Research and development expenses for the three months ended September 30, 2024, were $26.3 million .

Collaboration Agreements

All revenue to date has been generated from a collaboration and licensing agreement with Regeneron Pharmaceuticals, Inc. However, as of September 30, 2024, no revenue was recorded from this agreement .

Investment and Capital Requirements

Adicet Bio anticipates needing additional capital to support the development of its product candidates. Significant financing may be required for clinical trials, manufacturing, and commercialization efforts . The company has raised capital through multiple offerings, including a public offering in January 2024, which generated approximately $91.7 million in net proceeds .

Future Outlook

The company remains focused on expanding its product pipeline and continuing its research and development efforts. Adicet Bio's ability to sustain operations and fund its initiatives is contingent upon securing additional financing, given its history of operating losses .

How Adicet Bio, Inc. (ACET) Works

Company Overview

Adicet Bio, Inc. is a clinical-stage biotechnology company focused on developing allogeneic gamma delta T cell therapies for cancer and autoimmune diseases. The company utilizes a proprietary platform to engineer gamma delta T cells with chimeric antigen receptors (CARs). As of September 30, 2024, Adicet had an accumulated deficit of $469.2 million and had not yet generated revenue from product sales since all product candidates are still in development.

Financial Performance

For the three months ended September 30, 2024, Adicet reported a net loss of $30.5 million, compared to a net loss of $49.9 million for the same period in 2023. The loss per share for the most recent quarter was $0.34. The following table summarizes key financial metrics for the three and nine months ended September 30, 2024 and 2023:

Cash Position and Funding

As of September 30, 2024, Adicet reported cash, cash equivalents, and short-term investments totaling $202.1 million. This is expected to be sufficient to fund operations for at least the next twelve months. The company raised approximately $91.7 million from an underwritten public offering of 32,379,667 shares at a public offering price of $2.40 per share in January 2024.

Operational Activities

Adicet’s operational activities focus on the research and development of its gamma delta T cell therapies. The company has established a subsidiary in Shanghai, China, to expand its research and development initiatives. For the three months ended September 30, 2024, the company incurred $26.3 million in research and development expenses, slightly up from $26.2 million in the same period in 2023.

Lease Obligations

Adicet Bio operates under several lease agreements, including a facility in Redwood City, California, with an initial annual base rent of $1.3 million, which increases by 3% annually. The lease has an expiration date of February 28, 2030.

Future Prospects

The company anticipates ongoing significant losses as it continues to develop its product candidates and seek regulatory approvals. Future funding will likely be required through various means, including public offerings and collaborative agreements.

How Adicet Bio, Inc. (ACET) Makes Money

Revenue Sources

As of 2024, Adicet Bio, Inc. primarily generates revenue through a License and Collaboration Agreement with Regeneron Pharmaceuticals, Inc. This agreement includes upfront fees, milestone payments, and royalties on product sales once commercialization occurs. However, Adicet has not yet generated significant revenue from product sales, as none of its product candidates have received regulatory approval.

Financial Overview

For the nine months ended September 30, 2024, Adicet reported a net loss of $88.4 million, a decrease from a net loss of $113.2 million for the same period in 2023. The accumulated deficit as of September 30, 2024, stood at $469.2 million.

Operating Expenses

Adicet's operating expenses for the nine months ended September 30, 2024, totaled $96.9 million, down from $120.5 million in the prior year. The breakdown of these expenses includes:

• Research and Development: $76.1 million
• General and Administrative: $20.8 million
• Goodwill Impairment: $0 (compared to $19.5 million in 2023)

Capital Sources

Adicet has relied on various financing mechanisms to support its operations. Notably, the company raised approximately $111.2 million through financing activities for the nine months ended September 30, 2024. This included:

• Net proceeds from the issuance of common stock and pre-funded warrants: $91.7 million
• Net proceeds from the JonesTrading ATM Program: $19.3 million

Future Funding Requirements

Adicet anticipates needing additional capital to continue the development of its product candidates and to fund ongoing operations. The company plans to seek funding through:

• Equity or debt financings
• Collaborative arrangements with corporate partners

As of September 30, 2024, Adicet's cash, cash equivalents, and short-term investments in treasury securities totaled $202.1 million, expected to sustain operations for at least the next twelve months.

Conclusion on Revenue Generation

Despite the absence of product revenue, Adicet's financial strategy focuses on collaboration agreements and capital raises to fund its extensive research and development efforts in the biopharmaceutical sector. The company remains committed to advancing its product candidates through clinical trials and towards potential commercialization.

Updated on 16 Nov 2024

Resources:

1. Adicet Bio, Inc. (ACET) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Adicet Bio, Inc. (ACET)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Adicet Bio, Inc. (ACET)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.