Adaptive Biotechnologies Corporation (ADPT): Business Model Canvas [11-2024 Updated]
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Adaptive Biotechnologies Corporation (ADPT) Bundle
In the rapidly evolving field of biotechnology, Adaptive Biotechnologies Corporation (ADPT) stands out with its innovative approach to diagnostics and immune medicine. By leveraging advanced technologies and strategic partnerships, Adaptive is reshaping how diseases are detected and treated. This blog post delves into the Business Model Canvas of Adaptive Biotechnologies, exploring its key components such as partnerships, activities, resources, and revenue streams, providing a comprehensive overview of how the company delivers value in the healthcare landscape.
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Key Partnerships
Collaborations with biopharmaceutical companies
Adaptive Biotechnologies has established numerous collaborations with key biopharmaceutical companies to leverage its proprietary immune medicine platform. These partnerships focus on developing and commercializing innovative therapies, particularly in oncology and autoimmune disorders.
For instance, the company recognized significant revenue from its collaborations during the nine months ended September 30, 2024, where collaboration revenue totaled $9.96 million, compared to $34.67 million for the same period in 2023, reflecting a decrease of approximately 71%.
Partnership with Microsoft for TCR-Antigen Map
In partnership with Microsoft, Adaptive Biotechnologies is developing the TCR-Antigen Map, an advanced tool for identifying and validating disease signatures. This collaboration is critical for enhancing the diagnostic and therapeutic capabilities of Adaptive's immune medicine platform.
The TCR-Antigen Map utilizes machine learning and extensive computational biology to improve the accuracy of disease detection and treatment personalization. This initiative is part of Adaptive's broader strategy to harness technology for better patient outcomes.
Agreements with Genentech for therapeutic development
Adaptive Biotechnologies entered into a worldwide collaboration and license agreement with Genentech in December 2018. This partnership aims to leverage Adaptive's capabilities in developing cellular therapies for oncology. The agreement included a non-refundable upfront payment of $300 million received in February 2019, and an additional milestone payment of $10 million in 2023.
Under this collaboration, Adaptive may receive up to $1.8 billion in potential future payments, which includes:
- Up to $65 million upon achieving specified regulatory milestones.
- Up to $300 million upon achieving specified development milestones.
- Up to $1.43 billion upon achieving specified commercial milestones.
Additionally, Adaptive is entitled to tiered royalties on worldwide net sales of products developed through this collaboration, with rates ranging from the mid-single digits to mid-teens.
| Partnership | Upfront Payment | Potential Future Payments | Royalty Rates |
|---|---|---|---|
| Genentech | $300 million | $1.8 billion | Mid-single digits to mid-teens |
| Microsoft | N/A | N/A | N/A |
These strategic partnerships not only enhance Adaptive Biotechnologies' research and development capabilities but also significantly contribute to its revenue streams and market presence in the competitive biopharmaceutical landscape.
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Key Activities
Development and provision of clonoSEQ diagnostic tests
Adaptive Biotechnologies has established itself as a leader in the development and provision of clonoSEQ diagnostic tests, which are essential for monitoring minimal residual disease (MRD) in patients with various hematologic malignancies. For the nine months ended September 30, 2024, total MRD revenue was reported at $105.4 million, a significant increase from $72.0 million in the same period in 2023, marking a growth of 46%.
During the three months ending September 30, 2024, clonoSEQ service revenue contributed $32.5 million to the overall MRD revenue, reflecting a 32% increase compared to $24.7 million in the same period of 2023. The company delivered approximately 19,600 tests in Q3 2024, up from 15,072 tests in Q3 2023, indicating a 30% increase in test volume.
Research and development of immune medicine solutions
Adaptive Biotechnologies is heavily invested in the research and development of immune medicine solutions, focusing on sequencing and mapping T cell receptors (TCRs) and B cell receptors (BCRs). For the nine months ended September 30, 2024, total revenue from the Immune Medicine segment was $26.1 million, down from $52.5 million in the previous year, indicating a decrease of 50%. This decline was largely attributed to a reduction in collaboration revenue from partnerships, including a $24.7 million drop in revenue from the Genentech Agreement.
Research and development expenses for the nine months ended September 30, 2024, totaled $79.8 million, down 15% from $93.4 million in the same period in 2023. The reduction in R&D spending reflects a strategic realignment towards more efficient resource allocation.
Data analysis and support for biopharmaceutical clients
Adaptive Biotechnologies provides comprehensive data analysis and support services to its biopharmaceutical clients, leveraging its proprietary technologies to enhance drug discovery and development processes. In Q3 2024, the company reported a $8.0 million drop in collaboration revenue, highlighting the impact of reduced activity in this area. Overall, the total revenue for the three months ended September 30, 2024, was $46.4 million, up 22% from $37.9 million in Q3 2023.
The company’s operating expenses for the nine months ended September 30, 2024, were reported at $260.2 million, a decrease from $280.5 million in the prior year. This reduction aligns with the company’s efforts to streamline operations and improve financial performance.
| Activity | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| MRD Revenue | $37.5 million | $24.7 million | 52% |
| Immune Medicine Revenue | $8.9 million | $13.3 million | -32% |
| Total Revenue | $46.4 million | $37.9 million | 22% |
Adaptive Biotechnologies continues to focus on enhancing its key activities to deliver value to its customers and stakeholders while navigating the complexities of the biopharmaceutical landscape.
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Key Resources
Proprietary technology for sequencing TCRs and BCRs
Adaptive Biotechnologies utilizes proprietary technology to sequence T cell receptors (TCRs) and B cell receptors (BCRs) at scale. This technology is critical for their Immunosequencing platform, which enables the identification and mapping of immune responses in patients. The company leverages this capability to develop diagnostic tests and therapeutic products, particularly in oncology and autoimmune diseases.
Clinical immunomics database for patient-specific insights
Adaptive has constructed a comprehensive clinical immunomics database that integrates patient-specific data derived from their sequencing technology. This database underpins their research and development efforts, allowing for targeted insights into immune responses, which can be utilized to tailor treatments for various diseases. As of September 30, 2024, the company reported total revenue of $131.5 million, a reflection of their effective use of this database in developing commercial products.
Skilled workforce in molecular biology and data science
Adaptive Biotechnologies employs a highly skilled workforce specialized in molecular biology, genomics, and data science. This team is instrumental in advancing the company’s research capabilities and interpreting complex immunological data. As of September 30, 2024, the company had accumulated a net loss of $125.8 million, indicating the significant investment in human resources required to sustain its innovative operations.
| Key Resource | Description | Financial Impact |
|---|---|---|
| Proprietary Technology | Sequencing of TCRs and BCRs at scale | Supports revenue generation through diagnostic tests and therapeutic development |
| Clinical Immunomics Database | Database providing patient-specific immune response insights | Contributes to $131.5 million total revenue as of September 30, 2024 |
| Skilled Workforce | Experts in molecular biology and data science | Part of $260.2 million operating expenses for the nine months ended September 30, 2024 |
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Value Propositions
Innovative diagnostic solutions for MRD detection
Adaptive Biotechnologies focuses on developing advanced diagnostic solutions for Minimal Residual Disease (MRD) detection. In the nine months ended September 30, 2024, the company reported total MRD revenue of $105.38 million, a significant increase of 46% compared to $71.98 million in the same period of 2023. This increase was driven by a $20.9 million rise in service revenue, reflecting the growing demand for precision diagnostics in oncology.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total MRD Revenue | $105,380,000 | $71,977,000 | $33,403,000 | 46% |
| Service Revenue | $92,880,000 | $71,977,000 | $20,903,000 | 29% |
| Regulatory Milestone Revenue | $12,500,000 | $0 | $12,500,000 | N/A |
Tailored immune medicine therapies based on genetic insights
Adaptive Biotechnologies is pioneering the development of tailored immune medicine therapies through its proprietary T cell receptor (TCR) technology. In the nine months ended September 30, 2024, the total revenue from the Immune Medicine segment was $26.12 million, a decrease of 50% compared to $52.51 million in the same period of 2023. This decline was primarily due to a significant reduction in collaboration revenue, which fell by $24.7 million, largely stemming from decreased activities under the Genentech Agreement.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Immune Medicine Revenue | $26,118,000 | $52,515,000 | ($26,397,000) | (50%) |
| Service Revenue | $16,160,000 | $17,848,000 | ($1,688,000) | (9%) |
| Collaboration Revenue | $9,958,000 | $34,667,000 | ($24,709,000) | (71%) |
Enhanced drug discovery through advanced sequencing technology
Adaptive Biotechnologies leverages advanced sequencing technology to enhance drug discovery processes, providing insights that drive the development of novel therapies. The company reported a total revenue of $131.5 million for the nine months ended September 30, 2024, reflecting a 6% increase from $124.49 million in the same period of the previous year. This growth is attributed to the successful integration of sequencing technology into their diagnostic and therapeutic offerings, enhancing the overall value proposition for clients in the biopharmaceutical industry.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $131,498,000 | $124,492,000 | $7,006,000 | 6% |
| MRD Revenue | $105,380,000 | $71,977,000 | $33,403,000 | 46% |
| Immune Medicine Revenue | $26,118,000 | $52,515,000 | ($26,397,000) | (50%) |
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Customer Relationships
Direct engagement with healthcare providers and physicians
Adaptive Biotechnologies focuses on building strong relationships with healthcare providers and physicians. This engagement is primarily facilitated through the company's clonoSEQ test, which is a critical diagnostic tool for clinicians managing patients with hematological malignancies. For the three months ending September 30, 2024, the company reported a 32% increase in service revenue from clonoSEQ, amounting to $32.5 million, compared to $24.7 million in the same period in 2023.
Support services and consultation for biopharmaceutical clients
Adaptive Biotechnologies provides robust support services to its biopharmaceutical partners, enhancing their drug development processes. The company’s Immune Medicine segment generated $26.1 million in total revenue for the nine months ended September 30, 2024, down from $52.5 million in the same period in 2023, indicating a significant shift in focus and possibly in client engagement strategies. The collaboration with Genentech, which includes opportunities for drug and target discovery, reflects Adaptive’s commitment to providing tailored support to biopharmaceutical clients.
Educational initiatives to inform on immune medicine advancements
Adaptive Biotechnologies is dedicated to educating its clients and the broader medical community about advancements in immune medicine. The company has initiated various educational programs aimed at healthcare professionals to promote understanding of its technologies and their applications in clinical practice. For instance, the increase in clonoSEQ test volume by 30%, reaching 19,600 tests in the three months ending September 30, 2024, illustrates the growing adoption and awareness of the company's services.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Service Revenue from clonoSEQ | $32.5 million | $24.7 million | +32% |
| Total Immune Medicine Revenue | $26.1 million | $52.5 million | -50% |
| clonoSEQ Test Volume | 19,600 tests | 15,072 tests | +30% |
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Channels
Online platforms for test ordering and results delivery
Adaptive Biotechnologies utilizes a robust online platform to facilitate the ordering of tests and the delivery of results. The clonoSEQ test, which is pivotal in their MRD segment, is accessible through their web interface, allowing healthcare providers to order tests directly. In the third quarter of 2024, the company reported a significant increase in clonoSEQ test volume, with approximately 19,600 tests delivered, marking a 30% increase from the same period in 2023 when 15,072 tests were delivered. This growth underscores the efficiency and effectiveness of their online channels in enhancing service delivery.
Direct sales team for biopharmaceutical partnerships
Adaptive Biotechnologies has established a dedicated direct sales team focused on building partnerships with biopharmaceutical companies. This team plays a crucial role in expanding their market reach and facilitating collaborations, particularly in drug development. The MRD revenue segment saw a substantial increase, with total MRD revenue reaching $105.4 million for the nine months ended September 30, 2024, compared to $72.0 million in the same period in 2023, reflecting a 46% growth. This performance highlights the effectiveness of their direct sales efforts in securing lucrative partnerships.
Collaboration with healthcare institutions for product access
Adaptive Biotechnologies collaborates extensively with healthcare institutions to ensure product access. Their partnerships enable the integration of clonoSEQ into clinical workflows, thereby enhancing its usage among clinicians. As part of their revenue stream, the company generated $12.5 million in regulatory milestone revenue in the third quarter of 2024, indicating successful collaborations that lead to significant financial milestones. This strategic approach not only facilitates product access but also aligns with the company's broader goal of transforming cancer treatment through innovative diagnostic solutions.
| Channel Type | Description | Key Metrics |
|---|---|---|
| Online Platform | Facilitates test ordering and result delivery |
|
| Direct Sales Team | Builds partnerships with biopharmaceutical companies |
|
| Healthcare Collaborations | Ensures product access through partnerships |
|
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Customer Segments
Clinical customers (physicians and hospitals)
Adaptive Biotechnologies serves clinical customers through its clonoSEQ technology, which is utilized for the detection of minimal residual disease (MRD) in cancer patients. In the nine months ended September 30, 2024, the company reported service revenue of $92.9 million from MRD diagnostics, which was a 29% increase compared to $72.0 million in the same period in 2023 .
The clonoSEQ test volume increased by 35% to 55,160 tests delivered in the nine months ended September 30, 2024, compared to 40,816 tests in the same period in 2023 .
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| MRD Service Revenue | $92.9 million | $72.0 million | 29% |
| Test Volume | 55,160 tests | 40,816 tests | 35% |
Biopharmaceutical companies for drug development
Adaptive Biotechnologies collaborates with biopharmaceutical companies to enhance drug development processes. In the nine months ended September 30, 2024, the company recognized $12.5 million in regulatory milestone revenue, attributed to biopharmaceutical partnerships, which was a new revenue stream compared to zero in the previous year .
Total revenue from Immune Medicine, which includes services to biopharmaceuticals, was $26.1 million in the same period, down from $52.5 million in 2023, primarily due to a decrease in collaboration revenue .
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Regulatory Milestone Revenue | $12.5 million | $0 million | |
| Immune Medicine Revenue | $26.1 million | $52.5 million | (50%) |
Academic institutions for research collaborations
Adaptive Biotechnologies partners with academic institutions for research collaborations, focusing on advancing immunotherapy and other applications. The revenue from academic customers was included in the total Immune Medicine revenue of $26.1 million for the nine months ended September 30, 2024 . The company aims to leverage its proprietary sequencing technology in research settings to enhance understanding and treatment of various diseases.
The company’s collaboration with Microsoft Corporation to develop the TCR-Antigen Map exemplifies its commitment to research partnerships .
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Revenue from Academic Institutions | Part of $26.1 million | Part of $52.5 million | Decreased |
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Cost Structure
Research and Development Expenses for New Technologies
For the nine months ended September 30, 2024, Adaptive Biotechnologies reported research and development expenses totaling $79.8 million, a decrease of $13.6 million from $93.4 million in the same period of 2023. This decrease was primarily due to a reduction in personnel expenses, which dropped by $7.8 million to $48.8 million. The breakdown of research and development expenses is as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Research and Development Materials and Allocated Production Laboratory Expenses | $12,381 | $16,130 | $(3,749) |
| Personnel Expenses | $48,834 | $56,598 | $(7,764) |
| Allocable Facilities and IT Expenses | $8,156 | $8,817 | $(661) |
| Software and Cloud Services Expenses | $3,684 | $2,424 | $1,260 |
| Depreciation and Other Expenses | $6,706 | $9,402 | $(2,696) |
| Total | $79,761 | $93,371 | $(13,610) |
Operational Costs Associated with Lab Facilities and Equipment
Operational costs for the same period included a total of $54.0 million in cost of revenue, down from $55.9 million in the prior year. The reduction was mainly due to a $7.9 million decrease in overhead costs, attributed to laboratory relocation and consolidation activities. Here are the details:
| Cost Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Cost of Revenue | $54,035 | $55,937 | $(1,902) |
| Labor and Overhead Costs | $(4,000) | $(7,000) | $(3,000) |
| Materials Costs | $2,800 | $2,400 | $400 |
| Total Operational Costs | $54,035 | $55,937 | $(1,902) |
Marketing and Sales Expenses for Customer Acquisition
Marketing and sales expenses for the nine months ended September 30, 2024, were reported at $63.2 million, a decline of $3.5 million from $66.7 million in 2023. This decline was primarily due to a decrease in personnel costs and overall marketing activities:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Sales and Marketing Expenses | $63,184 | $66,673 | $(3,489) |
| Personnel Costs | $(3,800) | $(4,200) | $(400) |
| Marketing Activities | $(1,200) | $(2,000) | $(800) |
| Total Marketing and Sales Expenses | $63,184 | $66,673 | $(3,489) |
Adaptive Biotechnologies Corporation (ADPT) - Business Model: Revenue Streams
Revenue from clonoSEQ diagnostic tests and reports
Adaptive Biotechnologies generates significant revenue through its clonoSEQ diagnostic tests. For the nine months ended September 30, 2024, clonoSEQ service revenue amounted to $92.88 million, compared to $71.98 million for the same period in 2023, reflecting a growth of 29%.
During the third quarter of 2024 alone, clonoSEQ service revenue was $32.47 million, up from $24.67 million in the third quarter of 2023, marking a 32% increase. The total number of tests delivered increased by 30%, reaching 19,600 tests in Q3 2024 compared to 15,072 tests in Q3 2023.
Collaboration revenue from biopharmaceutical partnerships
Collaboration revenue is a critical revenue stream for Adaptive Biotechnologies, particularly through its partnership with Genentech. For the nine months ended September 30, 2024, collaboration revenue was $9.96 million, down from $34.67 million during the same period in 2023, representing a decrease of 71%.
In the third quarter of 2024, collaboration revenue was $3.51 million, compared to $8.01 million in Q3 2023, a 56% decline. This significant drop was primarily due to decreased collaboration expenses and the recognition of lower revenue from the Genentech Agreement.
Service fees for research and development support
Adaptive Biotechnologies also earns revenue from service fees for research and development support. For the nine months ended September 30, 2024, service revenue from Immune Medicine was $16.16 million, slightly down from $17.85 million in 2023, a decrease of 9%. In the third quarter of 2024, Immune Medicine service revenue was $5.45 million, a minor increase from $5.24 million in Q3 2023.
| Revenue Stream | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| clonoSEQ Diagnostic Tests | $32.47 | $24.67 | +32% |
| Collaboration Revenue | $3.51 | $8.01 | -56% |
| Immune Medicine Service Fees | $5.45 | $5.24 | +4% |
Overall, for the nine months ending September 30, 2024, total revenue for Adaptive Biotechnologies was $131.50 million, compared to $124.49 million in the same period of 2023, indicating a 6% increase.
Updated on 16 Nov 2024
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.