
Adaptive Biotechnologies To Conduct Strategic Review Focused on Shareholder Value Following Disappointing 3Q23
11-10-23 (by: Scott Gleason) Adaptive Biotechnologies has released its financial results for the third quarter reporting total revenue of $37.9 million for the third quarter of 2023 a 21% decrease compared to the same quarter in 2022. Street estimates had called for total revenue of $43 million. Management noted an impact from use of its MRD test for pharma customers due to the macroeconomic environment, and a decline in amortized revenue from its Genetech partnership in its Immune Medicine business. The company noted that it is initiating a strategic review to explore options for the different business components to try and unlock shareholder value noting the different priorities of its two business units.
clonoSEQ test volume was up 56% in the quarter with a total of 15,072 tests delivered. Management noted that multiple myeloma was the main growth driver. The company noted it is working to improve ASPs by transitioning payers to the new unique code for the test, improving collections, and working on updating medical policies. clonoSEQ ASP was over $1,000 in the quarter and management noted momentum during the quarter.
Management noted that the Immune Medicine business discovered a novel target for multiple sclerosis.
The company saw a decrease of 11% in operating expenses for Q3 2023 as a result of ongoing efficiency initiatives. On a non-GAAP basis, adjusted EBITDA loss was ($29.8) million for Q3 2023, which still increased from the ($25.9) million loss in the third quarter of 2022. Cash burn remains a significant concern for investors and as of September 30, 2023, the company held cash, cash equivalents, and marketable securities amounting to $371.1 million.
In light of the ongoing strategic review the company suspended its full financial guidance but guided to the MRD business generating revenue in the range of $100 million to $105 million for the full year 2023.
Chad Robins, the CEO, and co-founder of Adaptive Biotechnologies, shared insights into the company’s progress and strategic direction. He mentioned the company’s two significant lines of business, MRD and Immune Medicine, both making noteworthy advancements but with distinct needs for further investment.