Second Quarter 2024
Earnings Conference Call
Q2 Highlights - fueling growth with strengthened financial profile
|
Fueling growth |
Reducing spend |
|
|
◼ Q2 MRD revenue $35.3M |
◼ Q2 Opex (excl. one-time1) |
|||
|
• |
+36% Y/Y ; +8% Q/Q |
• |
-15% Y/Y ; -8% Q/Q |
|
|
• |
Excluding milestones |
• |
Reduction across all |
|
|
+25% Y/Y ; +15% Q/Q |
segments |
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Managing cash
- Targeted investments with high upside value
- ~$292M in cash2
-
- 1H cash burn ~$55M vs $81M in 1H 2023
1 Asset impairments and other restructuring charges
3 2 Cash, cash equivalents and marketable securities as of 6/30/2024
MRD clinical testing continues to deliver on all metrics
|
Q2 clonoSEQ clinical revenue growth of 43% Y/Y |
Key growth metrics trajectory |
- clonoSEQ test volume +36% Y/Y; +9% Q/Q
|
▪ clonoSEQ US ASPs +3% Q/Q |
% clonoSEQ MRD tests in |
|
blood |
|
|
clonoSEQ test volumes |
||||||
|
+9% |
40% |
|||||
|
+9% |
37% |
|||||
|
18,520 |
||||||
|
+10% |
+4% |
17,040 |
||||
|
Q2'23 |
Q2'24 |
|||||
|
15,072 |
15,680 |
|||||
|
13,665 |
||||||
|
~number of ordering |
||||||
|
17,854 |
accounts |
|||||
|
16,361 |
||||||
|
15,095 |
||||||
|
14,155 |
||||||
|
12,823 |
||||||
|
490 |
553 |
|||||
|
Q2'23 |
Q2'24 |
|||||
|
Q2'23 |
Q3'23 |
Q4'23 |
Q1'24 |
Q2'24 |
||
|
clonoSEQ Tech Transfer Volume (Int'l) |
clonoSEQ US Volume |
-
clonoSEQ tests in
NHL
|
11% |
|
|
9% |
|
|
Q2'23 |
Q2'24 |
~number of ordering HCPs
|
2,080 |
2,746 |
|
Q2'23 |
Q2'24 |
4
MRD pharma growing with ODAC as a future growth accelerator
Q2 2024 revenue growth of 28% Y/Y
- Recognized a $3.0M milestone
Impact on our pharma business post Oncologic Drug Advisory Committee (ODAC) vote Potential Business Impact
▪ Increased demand for MRD in MM studies
▪ Contracted studies with potential to upgrade from secondary to primary endpoint
▪ Halo effect for continued acceptance of MRD as a standard measure in other indications
5
Immune Medicine (IM) programs in cancer and autoimmunity
Program
Program description
Progress to date
|
Cancer |
Cell Therapy |
TCR-based cell therapy products |
Establishing personalized product profile with |
|
targeting tumor neoantigens |
highest POS ◉ |
||
|
Antibody Dev |
Develop antibodies that target and |
Completed 'Wave 1' mouse immunization |
|
|
eliminate or block disease-causing T cells |
campaign; mAb discovery in progress |
||
|
Autoimmunity |
|||
|
Target Discovery |
Target discovery in select, prioritized |
Initiated T1D target discovery |
|
|
indications |
|||
|
◉ POS = probability of success |
Continuing to gate R&D investments
6
Q2 2024 financial highlights
Total Adaptive ($M)
Segment Reporting
Total Revenue
|
$48.9 |
$43.2 |
-12% |
|
23.0 |
7.9 |
-66% |
|
35.3 |
+36% |
|
|
25.9 |
||
|
Q2 2023 |
Q2 2024 |
|
|
MRD |
Immune Medicine |
Total Opex2
|
$96.71 |
||
|
22.3 |
$83.3 1, 2 |
|
|
17.9 |
G&A |
|
|
23.9 |
20.3 |
S&M |
|
32.2 |
25.4 |
R&D |
|
17.9 |
19.3 |
COR |
|
Q2 2023 |
Q2 2024 |
|
($M) |
MRD |
IM |
||
|
Q1'24 |
Q2'24 |
Q1'24 |
Q2'24 |
|
|
Revenue |
32.6 |
35.3 |
9.2 |
7.9 |
|
Opex2 |
59.9 |
55.5 |
23.8 |
21.7 |
|
Adj. |
(17.3) |
(11.3) |
(6.9) |
(7.0) |
|
EBITDA3 |
Unallocated
Corporate
Q1'24 Q2'24
N/A
6.9 6.0
(4.0) (3.1)
- Includes ~$0.4M in amortization of intangible assets
- Excludes one-timelong-lived asset impairment charges of $7.2M in Q2'24
- Adj. EBITDA is a non-GAAP financial measure
7 All $ and % figures are rounded
FY 2024 revised guidance
FY 2024 revenue guidance:
- MRD revenue between $140M-$145M vs previous guidance of $135M-$140M
FY 2024 operating expenses:
- FY OPEX between $340M-$350M1 vs previous guidance of $350M-$360M1
2H 2024 cash burn ~$60M
- Implied FY 2024 cash burn of $115M1 vs previous estimate of $130M1
1 Excluding one-time costs from strategic review pertaining to resources elimination
8
Appendix: Reconciliations between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation & Segment Information
- 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):
9
Appendix: Reconciliations between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation & Segment Information
- The following tables set forth our segment information for the three months ended June 30, 2024 and 2023 (in thousands):
10
Appendix: Reconciliations between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation & Segment Information
- The following tables set forth our segment information for the six months ended June 30, 2024 and 2023 (in thousands):
11
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Adaptive Biotechnologies Corporation published this content on 01 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2024 21:37:28 UTC.