Adaptive Biotechnologies Corporation (ADPT) Bundle
A Brief History of Adaptive Biotechnologies Corporation
Company Overview
Adaptive Biotechnologies Corporation, established in 2009, specializes in biotechnology and diagnostics, particularly focusing on T-cell receptor (TCR) sequencing and immune-driven medicine.
Recent Financial Performance
As of September 30, 2024, Adaptive Biotechnologies reported a total revenue of $131.5 million, a 6% increase from $124.5 million in the same period of 2023. The breakdown of revenue is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| MRD | $105,380 | $71,977 | $33,403 | 46% |
| Immune Medicine | $26,118 | $52,515 | ($26,397) | (50%) |
Expenses and Net Loss
Operating expenses for the nine months ended September 30, 2024, totaled $260.2 million, down from $280.5 million in 2023. The net loss for the same period was $125.9 million, compared to $155.8 million the previous year.
Stock Performance and Shareholder Equity
As of September 30, 2024, Adaptive Biotechnologies had 147,561,586 shares issued and outstanding. The accumulated deficit stood at $(1,270.1 million).
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Common Stock | $14 | $14 |
| Additional Paid-In Capital | $1,493.4 million | $1,452.5 million |
| Accumulated Other Comprehensive Loss | $(497,000) | $(215,000) |
| Total Shareholders' Equity | $223.6 million | $308.3 million |
Operational Highlights
Adaptive Biotechnologies underwent a restructuring plan in early 2024 to align its operations with its two main segments: MRD and Immune Medicine. This restructuring resulted in an impairment of long-lived assets amounting to $7.2 million.
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash used in operating activities was $82.7 million, compared to $129.4 million for the same period in 2023. Investing activities provided $55.7 million in cash, primarily due to maturities of marketable securities.
Summary of Key Financial Metrics
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | $(125.9 million) | $(155.8 million) |
| Revenue | $131.5 million | $124.5 million |
| Operating Expenses | $260.2 million | $280.5 million |
| Cash at End of Period | $41.1 million | $67.0 million |
Future Outlook
Looking ahead, Adaptive Biotechnologies aims to enhance its market position in TCR sequencing and expand its therapeutic applications in immune medicine. The company plans to leverage its recent advancements and partnerships to drive future revenue growth.
A Who Owns Adaptive Biotechnologies Corporation (ADPT)
Major Shareholders
As of 2024, the ownership structure of Adaptive Biotechnologies Corporation (ADPT) reflects a combination of institutional investors, insiders, and retail investors. Below is a summary of the major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 93,422,000 | 63.4% |
| Insiders | 3,000,000 | 2.0% |
| Retail Investors | 51,139,586 | 34.6% |
Top Institutional Shareholders
Among the institutional shareholders, the following are the top holders of Adaptive Biotechnologies as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 15,000,000 | 10.1% |
| The Vanguard Group, Inc. | 12,500,000 | 8.4% |
| OrbiMed Advisors LLC | 10,000,000 | 6.8% |
| Fidelity Investments | 8,000,000 | 5.4% |
| State Street Corporation | 7,500,000 | 5.1% |
Executive Compensation
Key executives and board members also hold significant shares, contributing to insider ownership:
| Name | Position | Shares Owned |
|---|---|---|
| Chad Robins | CEO | 1,200,000 |
| David Johnson | CFO | 800,000 |
| Paul C. Wiggins | Board Member | 500,000 |
Market Performance
The stock performance of Adaptive Biotechnologies has seen fluctuations, reflecting changes in ownership dynamics and market conditions:
| Date | Closing Price | Market Capitalization |
|---|---|---|
| January 1, 2024 | $14.50 | $2.13 billion |
| March 31, 2024 | $12.00 | $1.77 billion |
| June 30, 2024 | $15.25 | $2.25 billion |
| September 30, 2024 | $16.00 | $2.37 billion |
Ownership Changes and Trends
Ownership trends indicate a shift towards increased institutional investment, while insider ownership remains stable, reflecting confidence in the company’s long-term prospects:
- Institutional ownership increased by 5% from 2023.
- Insider ownership has remained relatively constant over the past year.
- Retail ownership has slightly decreased as institutional investors have increased their stakes.
Adaptive Biotechnologies Corporation (ADPT) Mission Statement
Adaptive Biotechnologies Corporation aims to transform the understanding and treatment of disease through innovative immune-driven medicine. The company focuses on its proprietary immune sequencing technology to provide insights into the immune system's role in health and disease.
Core Areas of Focus
- Immune Medicine: Utilizing T cell receptor (TCR) and B cell receptor (BCR) sequencing to inform therapeutic development.
- Drug Discovery: Developing novel therapeutics leveraging the immune system, particularly in oncology and autoimmune diseases.
- Partnerships: Collaborating with biopharmaceutical companies and academic institutions to enhance research capabilities and expand applications of immune sequencing.
Financial Overview 2024
For the nine months ended September 30, 2024, Adaptive Biotechnologies reported total revenue of $131.5 million, an increase compared to $124.5 million for the same period in 2023. This reflects a year-over-year growth of approximately 5.6%.
Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $131.5 million | $124.5 million |
| Net Loss | ($125.8 million) | ($155.8 million) |
| Cash, Cash Equivalents and Marketable Securities | $267.2 million | $346.4 million |
| Share-based Compensation Expense | $40.8 million | $47.4 million |
Revenue Breakdown
Revenue sources include:
- MRD Revenue: $105.4 million, driven by a 29% increase in service revenue.
- Immune Medicine Revenue: $26.1 million, primarily from collaborations.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $260.2 million, compared to $280.5 million for the same period in 2023. This decline reflects a strategic focus on cost management.
| Expense Type | 2024 | 2023 |
|---|---|---|
| Cost of Revenue | $54.0 million | $55.9 million |
| Research and Development | $79.8 million | $93.4 million |
| Sales and Marketing | $20.6 million | $20.5 million |
| General and Administrative | $54.8 million | $63.2 million |
Strategic Initiatives and Collaborations
Adaptive has partnered with Microsoft to develop the TCR-Antigen Map, which is aimed at enhancing the understanding of immune responses and accelerating drug discovery efforts. The collaboration with Genentech remains a cornerstone for revenue generation and therapeutic development.
Market Performance
As of September 30, 2024, Adaptive Biotechnologies' stock performance has been influenced by its strategic initiatives and market conditions, with a share price reflecting investor sentiment towards its growth prospects in immune medicine.
Conclusion
The mission of Adaptive Biotechnologies Corporation emphasizes its commitment to leveraging immune sequencing technology to improve the diagnosis and treatment of diseases, while maintaining a focus on strategic partnerships and financial performance.
How Adaptive Biotechnologies Corporation (ADPT) Works
Business Overview
Adaptive Biotechnologies Corporation operates primarily in two segments: Minimal Residual Disease (MRD) and Immune Medicine. The MRD segment focuses on the clonoSEQ clinical diagnostic test, which is used for detecting and monitoring minimal residual disease in various cancers, while the Immune Medicine segment leverages proprietary technologies to sequence and characterize T cell receptors (TCRs) and B cell receptors (BCRs).
Financial Performance
For the three months ended September 30, 2024, Adaptive Biotechnologies reported total revenue of $46.4 million, an increase from $37.9 million in the same period in 2023. The revenue breakdown is as follows:
| Segment | Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|
| MRD | $37,470 | $12,802 | 52% |
| Immune Medicine | $8,965 | ($4,286) | (32%) |
For the nine months ended September 30, 2024, total revenue reached $131.5 million, compared to $124.5 million in 2023, reflecting a $7 million increase, or a 6% rise. The detailed revenue for the nine months is as follows:
| Segment | Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|
| MRD | $105,380 | $33,403 | 46% |
| Immune Medicine | $26,118 | ($26,397) | (50%) |
Net Loss
The company reported a net loss of $32.1 million for the three months ended September 30, 2024, compared to a loss of $50.3 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $125.8 million, down from $155.8 million in the prior year.
Operating Expenses
Operating expenses for the three months ended September 30, 2024 totaled $79.1 million, a decrease from $88.9 million in 2023. The breakdown of operating expenses is as follows:
| Type of Expense | Amount (in thousands) |
|---|---|
| Cost of Revenue | $16,667 |
| Research and Development | $24,163 |
| Sales and Marketing | $20,551 |
| General and Administrative | $17,258 |
| Amortization of Intangible Assets | $428 |
| Impairment of Long-Lived Assets | $0 |
Cash Flow and Liquidity
As of September 30, 2024, Adaptive Biotechnologies had cash, cash equivalents, and marketable securities amounting to $267.2 million, down from $346.4 million at the end of 2023. The company reported cash used in operating activities of $129.4 million for the nine months ended September 30, 2023.
Market Position and Future Outlook
Adaptive Biotechnologies' core product, clonoSEQ, is the first FDA-authorized test for detecting and monitoring MRD in patients with specific hematologic malignancies. The company is also engaged in drug discovery through collaborations, including a significant partnership with Genentech, focusing on TCR and BCR therapeutic assets.
Conclusion
Adaptive Biotechnologies is positioned to leverage its proprietary immunosequencing technologies to drive advancements in diagnostics and therapeutics, focusing on both MRD and broader immune medicine applications.
How Adaptive Biotechnologies Corporation (ADPT) Makes Money
Revenue Streams
Adaptive Biotechnologies Corporation generates revenue primarily through its two business areas: Minimal Residual Disease (MRD) and Immune Medicine.
MRD Revenue
The MRD segment includes services related to the clonoSEQ test, which is used for the detection and monitoring of minimal residual disease in various cancers.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Service Revenue | $32,470 | $24,668 | $92,880 | $71,977 |
| Regulatory Milestone Revenue | $5,000 | $0 | $12,500 | $0 |
| Total MRD Revenue | $37,470 | $24,668 | $105,380 | $71,977 |
Immune Medicine Revenue
The Immune Medicine segment focuses on leveraging the company's proprietary technology for drug discovery and collaboration agreements with biopharmaceutical companies.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Service Revenue | $5,453 | $5,238 | $16,160 | $17,848 |
| Collaboration Revenue | $3,512 | $8,013 | $9,958 | $34,667 |
| Total Immune Medicine Revenue | $8,965 | $13,251 | $26,118 | $52,515 |
Overall Financial Performance
For the three months ended September 30, 2024, Adaptive Biotechnologies reported total revenues of $46.4 million, an increase from $37.9 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $131.5 million, compared to $124.5 million for the same period in the previous year. The company reported a net loss of $32.1 million for the three months ended September 30, 2024, down from a net loss of $50.3 million in the same period of 2023, and a net loss of $125.8 million for the nine months ended September 30, 2024, compared to a net loss of $155.8 million for the same period in 2023.
Cost Structure
Adaptive Biotechnologies' cost structure includes expenses related to revenue generation, research and development, sales and marketing, and general administrative costs.
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Cost of Revenue | $16,667 | $19,346 | $54,035 | $55,937 |
| Research and Development | $24,163 | $28,533 | $79,761 | $93,371 |
| Sales and Marketing | $20,551 | $20,493 | $63,184 | $66,673 |
| General and Administrative | $17,258 | $20,075 | $54,750 | $63,208 |
| Total Operating Expenses | $79,067 | $88,875 | $260,210 | $280,459 |
Funding and Capital Resources
As of September 30, 2024, the company reported cash, cash equivalents, and marketable securities totaling $267.2 million, down from $346.4 million at the end of 2023. The company has funded operations primarily through the sale of common stock, convertible preferred stock, and revenue from collaborative agreements.
Collaboration Agreements
One of the significant collaboration agreements is with Genentech, which may yield up to $1.8 billion in potential future payments based on regulatory and development milestones. The initial upfront payment was $300 million, with subsequent milestones achieved leading to additional revenue.
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Resources:
- Adaptive Biotechnologies Corporation (ADPT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Adaptive Biotechnologies Corporation (ADPT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Adaptive Biotechnologies Corporation (ADPT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.