ADPT - Earnings call transcript Q1 2020 | Adaptive Biotechnologies Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Adaptive Biotechnologies’ First Quarter Financial Results Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today’s conference is being recorded. [Operator Instructions]

to Mendivil, conference Investor like speaker to now Carrie today, Relations. would hand over the your I Please go ahead, ma’am.

Carrie Mendivil

XX, Thank you. the March for financial released XXXX. Earlier today, first Adaptive quarter Biotechnologies results ended

added news have you if to from distribution to an not working please this investors@Adaptivebiotech.com. of to If of release Like us company’s the are most received you’d or like send e-mail list, be you home. many

if us today's please encounter unforeseen audio with with So issues call. any you bear

to remind during uncertainties like statements that anticipated. management are Before statements or statements I’d we risks meaning that These you will make actual those results securities events this forward-looking and begin, cause involve material laws. that to call could from of materially within the federal differ

and in Forward-Looking appears regarding Additional the release issued risks information in Statements today. these titled Adaptive press the section uncertainties

and forth complete the supplemented see For today. set factors company’s list company’s to first be report filed quarter Risk of by on annual a description, Form XX-K XX-Q for in Factors risk section the please more the the the

as or by intention new future update statements, except obligation or to whether financial information, any disclaims any otherwise, or Adaptive because projections or of law. revise events forward-looking required

time-sensitive May will live measures and In the addition, contains this a visit call. is Please aforementioned of discussed non-GAAP financial accurate XXXX. as broadcast, press to most information be This directly call measure. conference during the the only reconciliation for release XX, comparable GAAP

Chief I’d Officer. over Chad Chad? that, to Robins, Adaptive’s With to Executive Cofounder and turn like call the

Chad Robins

staying and challenging hope loved quarter through navigate you our that healthy XXXX I as all call. times. Thanks, for safe Carrie. we are joining first thank your Good you ones and on afternoon earnings and these us

long-term I'll how endeavors our our environment, off platform current for explain enabled the towards and efforts the fight our and are by review these against vision existing company. COVID-XX, reviewing our contributions by Given start

April. include will and of commercial give final which development of COVID-XX in impact update the clinical across pipeline, detail will an and on our Julie weeks into business the Next, QX

a financials questions. will look we'll Chad our detailed up for open more Finally, at C then provide and it

saying, translating I to of we on genetics to of I'm immune the truly want products Adaptive, the off disease. into are Adaptive start team. and Adaptive part the focused At detect clinical to be by treat honored system

our can We efforts to we to to are any the pandemic. committed that leveraging COVID-XX platform medicine support immune the way combat in

by and to our join our early partners. few shown Led the labs while to safety Response and that health against our past unwavering and patients In COVID-XX flexibility COVID-XX, remained protect open our has months. the of employees company ensuring quickly service all moved we our over Committee, fight and entire dedication our March, the

addition, community incredibly industry. proactively solve collaborating never to entities so I been pandemic. to in many and felt be see healthcare It's broader to In this antibiotic the part more cases of privileged some motivating our competitors global

as treatment is has at be information our world this It an about time, in unfold incorporated should response the almost coronavirus immune disease. is into that immune been The the watching Adaptive and published the diagnosis now always daily to real patient's response basis. on vision of broadly

than virus has strains we whether an of to immune with individual others? more versus reaction or virtually and more known immune many time severe may able some age we if the or home. factors, who the using others are determine with being have are However, require to at disease, Beyond of can questions asymptomatic, the even complications? virus. virulent are response to more a ahead severe and Why outstanding had there respect has not certain certainty How have individuals the detectable risk antibodies still can while hospitalization identify are recover

questions response answer to Our to infectious immune diseases, including many these in built diseases. medicine was intentionally like platform

we are suffering therapeutic and from Now for people diagnostic our to COVID-XX. deliver solutions help platform using

effort for would system not any same in and infectious our the immune other a disease and debilitating it society, is this Adaptive, platform Importantly, as as new works to as COVID-XX way. exactly seizes is the

platform Specifically, we help assist are in crisis. applying two our to this solve to ways

test diagnostic extended presence Microsoft side, immune the measure virus we the with potentially decode our the develop the system's COVID-XX T-cells to specific in response virus of On partnership immune to to will system. a that

the disease states, then we and like of early line in combat identify infection. doing themselves Much measuring presence that T-cells we are other on clone and are disease to

time itself developed amount have and patient's both immunity. look widespread understand standardization tests, really has progress of that issues great tests serology the it of biological and While who made a been that that presence in antibody response, to at challenging how truly and PCR there's make look a virus is the with virus short the at

our response generate to To the thousand XX metropolitan enroll a patients across United least of we the proud data immune to ImmuneRACE announced to States. study issues, areas address launch are have at recently in these

exposed from de-identified LabCorp-enabled collecting are to with, currently individuals from We mobile blood phlebotomy using or COVID-XX service. diagnosed samples recovered

Immune and of sequenced in signature time, then to in as platform, will cell confirmed Leveraging learning machine be that receptors the study. been the sequenced response Azure updated to and by Microsoft's accuracy our improved real the from to continuously these the more SARS-CoV-X. trials from online antigens immune had capabilities specific blood samples are mapped platform be will be cloud

with combined to institutions in additional will many thousands unique growing, data and collect we samples Africa Asia The ImmuneRACE valuable Europe, other participating the patient study Australia, and data to list The from from sequence investigators is the cohorts. of world. patient of institution US, around continue with work be as

immune of their findings response include our industry. equip others health efforts. addition data we And to data to share a potentially That will making weeks. and to in into to test, have preliminary advancing expect within matter our way, We available our can officials, academia own we own their be with publicly to also

our antibodies immune the we virus to recently or side, recovered be therapeutic from from since and develop the seems On RNA platform identify to fighting COVID-XX. antibodies with than and either may are who efficacious neutralizing slowly of therapeutic to patients mutated viruses similar. we Like medicine this more that partnered genetically blood have Amgen other mutate think are use strains others, actively

have scale off There great. this some hard convalescent unfortunately to this early successes cases using is of been infection. plasma ability standardize. COVID-XX severe therapy fight with And is But patients approach to and the to boost of the

we're which fighting to the virus. workers. potentially could as prevent neutralize care antibodies, health and throughput treat These cells immune of to In best used exposure, our and to disease the with disease patients heightened collaboration with Amgen, or ones the method using high antibody those screening find such be

small or majority do typical alone do response. The neutralize key is But to antibodies in their have efficacious the ability to is of finding virus. immune groups, challenging takes to neutralizing the fight they the job that antibodies meaning neutralizing antibodies don't the antibodies a of of most to what the infection in vast hundreds normally because

a hundreds T-cell approaching that this of search for targets of range use that neutralizing with we scale identify against and to to possible assess select The neutralize are in same speed much cancer. our Genentech We antibodies those to key wider thousands of is antibodies way with in SARS-CoV-X. for an work receptors Amgen the

or of I and on this equate has to one every The Jordan basketball in city basketball ability same bringing the – in one the to Grown can up dance, the Harlan school in entire - binging lap Michael exact school, players to the scout at the single high finding time, search antibodies. state. high include even just player and the country not Chicago one

narrowed capabilities manufacture the antibodies neutralize to have to world develop and and to most antibodies we bind Once then set and development a its down of leverage Amgen drug engineering antibody SARS-CoV-X. class promising and

While can and Amgen fast are its early still the results coming deliver to months. antibodies exciting that some ready they're in see we potent we confident days, and moving

always said states. our have presents opportunity many We platform across disease an open-ended that

versatility ability the power COVID-XX medicine solutions our on immune for demonstrates Our move to of quickly and these platform.

up quarter. quarter million first the XX% to of ended over $XX.X first the XXXX. just over with Turning quarter in the revenue, We

our While detail the discuss his business her few during greater Cohen did March. commercial his COVID-XX Julie of the Chad see strong, the weeks spread start impact of of we and business impact review financials. of in to during will from off review started over an last our

related impact COVID-XX Due the our and of uncertainties significant guidance. to we are withdrawing to full the evolving pandemic, year XXXX

may ever in response impacted our and more due into near-term vision disease. be our to broadly importance While treatment of and for economic immune the than of in confident revenue diagnosis the I Adaptive macro and environments, health incorporating our challenges am the

and execute move to to invest We our continue growth. our of are next capitalized on this phase vision into business, well to across

provide as from who Julie, will our to that, the more detail detail hand impact on each areas, through With as of product Julie? across over I'll walk more well COVID-XX.

Julie Rubinstein

to for time. to Chad fortitude you tremendous Thanks, joining I all really today. this dedication safe Chad. thanks of want thanks us families you our have your shown and healthy. to hope employees and echo and are who incredible during And uncertain I

to clinical and our two immunoSEQ an followed I'm products, with diagnostic commercial by start going update pipeline about clonoSEQ on our details discovery Dx program. our drug operational more and immunoSEQ,

than expectations. line more first tests growing XXX and to off unique quarter clinical was by X,XXX Starting We the X,XXX The of ordered grew test to of XXXX. attribute clonoSEQ first institutions with practice. for In quarter volumes in patients. MRD XXX incorporation HCPs the to the quarter the clonoSEQ. started quarter clonoSEQ this XX% testing compared into over strong our Throughout with at

significant on force. progress both The made investments in important reimbursement have and sales the fronts regulatory we and the our

increased US visits first the an in However, the to through we volumes lower XX% exposure dramatically beginning of March year. and the Coming prevent and of began out clinical cases than to test of to off the volume slowed April, saw COVID-XX hospitals in to patient approximate early weeks eight virus. as drop March across

a weeks to trends starting May monitoring. of volume Order our clinical of future first we positive test the indication volumes. in closely are we order are which However, volumes are see strong in

and important Practices group among delayed numerous are or treatments As patients avoid being and to in-person challenges. likely know, are cancer you de-intensified immunosuppression being limiting deferred. are for appointments, are procedures cancelled highest facing or are the risk some COVID-XX

inform made MRD of management implications used in draws some try to conduct marrow even changes to bone and to obtain. patient may patient providers need persist protocols. patient to difficult greater, the as to Yet for testing testing unplanned understand management adjustments have care increasingly cases the to be These the MRD

Clinical until volumes may continue across consistently practices oncology be country. more the to impacted open up

and instituted a ramped these during with efforts However, patients continue times. number of unusual have and we engagement physicians up to

team our based MRD our blood about clinical medical and been via most First perhaps testing with service. community has the importantly, communicating clear

clear service assay our for the Medicare is not cleared many covered insurance by and blood-based ALL exact is in clonoSEQ same and runs private myeloma, FDA yet While testing multiple payers. and

pleased accessible. their are partnership MRD XXXX visit We to important make to been more remote after across soon be centers enable to LabCorp by Patients clonoSEQ ordered will is to with collection able announce nearly access US for to service lab the patient an he blood testing clinician.

some blood also negotiating are some to We patient support providers further access with home collection home - clonoSEQ. to with agreements

solutions Looking these continue convenient safe believe when ahead, possible. to in-patient after even enabling and a by benefit COVID alternative restrictions to patients lifted, visits we get may

staying In customer regular the via clinical cadence the and education. field, service positive, has of of virtual engage job done remarkable communities possible to best a ensuring team patient the and continuing our a

track. on remain clonoSEQ for milestones regulatory our Finally,

for following second anticipate mid-year. monitoring to We are for on the from the FDA for our MRD blood, label XXXX, which half second the to we FDA, ALL in of in preparing track file clonoSEQ of are from blood And launch CLL expansion the samples. clearance we monitoring from

seen can that as We of patients And XXXX acceptance last MRD to as made on clonoSEQ. increasing investments the foundational we throughout call, have stated benefit testing. possible from ensure clinical as many

new adoption be will clonoSEQ sites a clinics that onboarding. result of temporarily confident reopen impacted we will of continue complete While customer the volumes and are to pandemic, as as grow

sequences XXXX. X,XXX which started includes volume, of reported our The from biopharma by sequences both sequencing the X,XXX customers quarter to Research strong. quarter first in academic from immunoSEQ. onto and increased off sequences XX% Moving

However, slow several impacts in ship sample pharmaceutical got were delays trial pushed QX and to that enrolment, COVID-XX. out sets sample to quarters of due to clinical slated subsequent

sequencing in a at COVID-XX. trials XX% halted samples got In QX pharmaceutical to decline clinical anticipate delayed significantly seen are until revenue have arriving be will study we starts due new as impacted and lab, date, to more from our We these factors gating to reversed. XX% trials

these is for Our partners in to our have their samples shipments and up run laboratory ready and transparent best they as been fully giving estimate functional sample arrive.

in pharma While receiving actively trials. signing limited sequencing new for still growing are interest partners into visibility by immuno we to the and the on encouraged due we timing have clinical samples COVID-XX, into incorporating

setting and labs are We at capacity. similar research operating academic the challenges XX% reduced of labs seeing remaining in where the are are closed

a our investment until training our about and As marketing kit work. more result, slowed in clarity including the return activities, we to we RUO launch have

up We of labs. are because the bullish term the of ramping to is advance busy adoption the medium reopening in our longer team in

In are to fact, XXX immunoSEQ at of every two weeks. we XX between virtual each participants drawing webinars, at our least

zeroes We on other to progress also CROs to enable in immuno partnerships qualified continue sequencing labs. key with

virus. of in inbound the researchers of also to other we COVID addition initiatives, two in vaccine and response be as identification Finally, immune used for receiving many are to such our to proactive work, COVID biomarkers requests immunoSEQ development

discovery. pipeline initial we focus on for the in disease has regards doing COVID-XX Lyme Moving on clinical and our and immunoSEQ immunoSEQ to our infectious solidified Dx are immunoSEQ Dx, to diseases. drug With for work Dx commercial

using to phlebotomy are trials require our We that visits. collect validations around running mobile Lyme in disease work of COVID-XX traditionally to both difficulty clinical clinical the and for in-person samples

that and points. we more confident will for for testing multiple signatures be on diseases based patients able needs for commercialize are to TCR at time diagnostics address develop accurate the We infectious that can

COVID-XX have consented the product race on team focused patients For specifications study, people defining to the To we is date, product and for already activities. participate. currently XXX to planning recruiting immune development over the program, our

asymptomatic cases to who product. diagnosed the either One, virus use capable today. possible categories to immune that response, from in determine two, on or virus their the into three for doing recovered triaged studying are on is based of early something from risk even infection we patients, particular, identify test been potentially exposed the believe and no three, In immunity we patients other has

in to and SVP, weeks. already we product. execute expect we few which to Head made beginning for In of to QX, to Technology efforts, our to immunoSEQ commercial market the plan ability a also We are our assuming antigen advance Chief whom and the development confirm of We onboarded strong, is Dx. commercialization data investments several map Officer, contributed an a this vision for enormously all hired new our the Research new have next for

the who year, of an QX, diagnostic we disease. initially who are important which confirmed either for commercial the each We X.X patients market to treatment. newly tested for also in recurring have are completed traditional Lyme antibiotic research get improved X viability symptoms on focusing even Of diagnosed million million US continue who or Lyme over of those after

our our X clinical in year study are clinical coming remainder and US who every companies Lyme plan the of validation the of to alone. extend get symptoms the development largest with in with time, launching the IQVIA, information clinical We will million nondescript for the research patients tested weeks. Over one

our decision margin that aligned research profile, supporting diagnostic. range to healthy with commercialization confirms of pricing move indicates a Early a forward

diagnostic a for the to immunoSEQ to on of are with submit plans track year. application end the Lyme FDA our Dx by this We

is chance prior we have we our suggested may Lyme would Although, that. first there that a to be diagnostic a COVID-XX that submit submission,

is delivering our just more diagnostic as areas. In is a the strategy, of same single line support indications, point and leading immunoSEQ disease profile a we capable the test future. and outsized the Dx both This truly Lyme the margin layer within that across in results with to test, of development multiple on to starting COVID-XX product results will

on to Moving discovery. drug

discovery SARS-CoV-X leverage against discovery platform with for the for TCR programs therapeutics, therapeutic medicine and novel these immune the them development capabilities for our leverage antibodies discovery with and to receptors in Both to Genentech to cellular accurately Amgen. therapies enable unique including screen now of immune our antibody oncology discovery platform prioritize continue and drug both We and of characterize neutralizing use. of further

We our remain work for on with Genentech. track

our first the progressing lead GLP-compliance against package our and and data are submission. IND We for selected an shared engineering candidate they products development on shared the IND-enabling have to Genentech for antigen delivered TCR of

San lease product lab to QX build opening South our the cellular anticipate we prototype a lab in Francisco the in for ‘XX. therapy parallel, have and personalized In expanded of

are doing a characterization and candidates from process. occurring human therapeutic with we screening identify funnel proprietary advanced follows and similar naturally where Amgen work discovery our The them we blood through

We are on confident discovery to in deliver our our ability commitments. both drug of

are XX To antibodies end we date, donors more by of At screen the to we than we the blood QX. COVID-XX the completing rate have started of collection sample neutralizing for SARS-CoV-X anticipate from moving, patients. from

for to the subset and the are screen virus. those confirm of will of virus antibodies the neutralizing that that for specific strains then are various We

working in we and antibody will closely and are Amgen feel the to have team candidates months. advance collaboratively Amgen and by development We few with a confident testing early into that

I'll C., update. you it Chad? provide Chad with to now pass over who will a financial

Chad Cohen

Similar I compare hope and in and same period all Julie. through Thanks, the results safe the you're to prior staying to earnings run financials calls, our I'll prior healthy. year.

provide will the For financial order call, results the backdrop of this also I to our additional characterize better details COVID against crisis. some in

same Turning an to quarter from $XX.X our of in period million, $XX.X year. the million XX% representing in first results, the total last was increase revenue

of category. sequencing revenues XX% our mix coming our revenue first the our of category quarter XX% from Our development for coming and consisted from

revenue revenue in as first This same academic the grew XXXX. from customers well related generated and volume. by $X.X our biopharma their customers, and in from revenue sequencing Sequencing driven in the primarily was in was growth as million period quarter increase clinical from our and generated XX% growth

quarter XXXX from clinical X,XXX testing clinical XXXX. tests in XX% in the tests increased XXXX volume clonoSEQ first its quarter of first to clinical

volumes of in two the the and volume March the starting by As month. Julie last impacted COVID-XX were weeks testing spread slowed of over mentioned,

to academic sequences by to in XX% which reported sequences quarter sequences Research from the X,XXX includes our sequencing biopharma both XXXX. customers volume, first X,XXX and of increased

quarter, million from line $XX.X same is revenue to grew with was first generated The internal from up the largely increase was XX% the our year. and revenue our last in Development partnership this Genentech primarily expectations. due which in period to own

now operating $XX.X the Shifting quarter operating percent a $XX.X XXXX year. last in to Total were quarter first from our of [ph] increase million, the from same our representing million expenses for XX% costs. revenue

the increase. to operating our down during was the representing XXXX of an Working compared X% year, quarter for revenue approximate expenses, million quarter cost $X.X million last $X first first

by first per overall million representing reductions our and of primarily XX%. to platform the of down unit in support million discovery and in development manage in increase antigen for research offset prior compared quarter TCR and $XX.X in quarter volume to from lab cost Increases development Research to first helped an costs increase overall expenses were XXXX, growth our clinical the map and immunoSEQ $XX.X of people was The XXXX the increase drug and efforts, development efforts. attributable Dx costs year.

and expenses and of to support external increases and million costs increase the of Sales was to lesser in marketing in adoption The corporate extent due sales a and to were quarter marketing $XX quarter an personnel initiatives. for first XXXX, support of our additional primarily marketing $X.X million broader to clonoSEQ expenses XX%. to market of increase cost XXXX the representing first compared

increased an the General compared XX%. million with company. This representing headcount first cost first XXXX, being associated for a to of and by was quarter $XX.X driven administrative increase expenses primarily of in and were $X increase million, XXXX public the quarter as

million. net diluted basic for was share loss of Net XXXX Net diluted compared million per quarter first loss quarter first XXXX. XXXX or per the share compared $XX.X first period and million in quarter was to loss to basic to million of $XX.X $X.XX of the shareholders attributable $XX.X the or common net and $X.XX for loss also the $XX.X

$XXX.X first and Our $XX.X XXXX approximately earnings average million per share are million weighted of outstanding based for XXXX the on and respectively. shares quarter

million XXXX period of the to a loss same was year. loss first compared of a $XX for EBITDA million the of Adjusted the $XX.X of quarter prior in

equivalents first approximately ended marketable million securities in and and had cash, We we cash of no quarter debt. the XXXX $XXX with

testing given the withdrawing financial mentioned, that and all outlook. we has revenue COVID-XX on volume ability put our R our Chad our confidently uncertainty forecast clonoSEQ As are formally indicators, guidance, to including

can our due We up advantages our economic model our us large are in business have revenue goals for long-term a uncertain our on modest we economic significant huge make long develop While applications that that to believe investments macro our is Adaptive opportunities of number and both near-term to challenges in markets. capture and the top we market environments, open tact. of health term share to for which squarely vision addressable platform in in

stewards these the strong understand During times, we of our to be capital. need

term bullish extensions the to moment us this have term stem driving strength which our platform of near-term balance coupled with to improvements. This would using short into the investments, on sheet balance revenues driven be are reprioritization, We long our that our and against normally lead incredibly opportunity from platform. investment long term

like to turn the I'd call for to that, back up it the and With operator questions. open

Operator

from [Operator Brian question comes Instructions] first you. Our Weinstein William Blair. with Thank

You with may your question. proceed

Brian Weinstein

Thanks taking questions but think fairly start to questions. guys. I the I COVID-XX remarks, in for guess of covered just prepared you Hey, in with, well general. couple on a it the

there diagnostic other clear things in that your versus So be is differentiated are just market? to about the test how

really guys and in about opportunity that pretty know little capabilities platform pivot your like capabilities what with a want into you well you just gives little of and it here. talk maybe that seem you on a does know, then bit. fit bit you also And and highlight the like in expand quickly about COVID-XX your to But you something just that to sort you have platform the

Chad Robins

differentiates I'll the in it about how and and platform the fits with of Harlan term talk long what I'm you test going have cover to kind then strategy.

Harlan Robins

Brian. Sure. Thanks,

by which tests the indicates two immunity swab, test there and is to we the measuring blood. nasal virus in for the – PCR against serology is of tests antibodies you COVID-XX. - So know, the of exposure There's the potential that presence currently then a the and types there's

lack there quickly sometimes at are tests The stick respiratory virus, both to doesn't it swabs far upper and you but sensitivity respiratory operator error have up, points, it's leading tests. a really nasal prone to PCR gaps negatives. – of because very the is so false time in early lower these the to So get

viruses reacting Serology society. cross the dangerous common other to false is path a cold, cause disease, corona leading to treatment which information tests patients. to new run for to test be alternatives to the provide able to the Neither which predict determine would risk of a positives, severity particularly reopen is determining very, very helpful for

address So third and a the believe potentially Microsoft gaps type testing current of Adaptive can test the in paradigm.

Our lets specific it's It's the The up the it as and testing response seeing. us T-cell immune strategy Adaptive fast. memory. virus comes directly immunological tell persists system to what

T-cell Importantly, robustness may the help that potential gaps immunoSEQ the response to patients. directly we fill determines severity We T-cell with response believe all these the I suggest disease, the call many reads has which talked of which the that our just three evidence aging Dx, diagnostic, would of of that which about.

What T-cell the we gives confidence twofold. is receptors signature are us developing in

compare a words, technology to existed. even we've that of same In our prior applied is patients to virus COVID-XX. our to already from that, this controls get to set we - prior already First massive we've before sequenced other two database exact to

negative. true truly they're know we So

the is case. that So first

also then from And commercializing. which before this with separately is Lyme that, what separately done we're we've

of standard a Lyme. than serology We test which so is have significantly care, better signal in that's a

doing. immune if can a in So asymptomatic also we're already identify we're immunity this may see to in have This may value TCR been hoping that is infected. once people we mildly very for true we're interested or been the signature, scan have that we symptomatic, but - who have confirm

samples XXXX the this patients, together answer over As of thousands tens And collected collecting of those... said with being can our Chad of which XXXX you COVID-XX. we Chad from already database, and prospectively and prior are Julie negative to leveraging we are discussed, study in as controls from we're ImmuneRACE

Chad Robins

Yeah.

mean, the fits is and the and you other to platform, how term awful disease. It's immune the immune in detection system as another this any I our thanks in is that mean, So strategy into of treatment I question. – response Brian, world. into sees strategy, that the the any terms it our disease our to for of incorporate as know, way a disease same sees COVID-XX long just

So commercial we our built teams to know, the platform indication already directly therefore for we're product products extends while a our with and commercial you leveraging and and it's focus continue can COVID-XX of If that diagnostic Dx infrastructure down, we've the immunoSEQ on this the new for pipeline, break side our Microsoft. to clonoSEQ. work immunoSEQ allowing on

new it really to that pointing move COVID. with extremely Just this towards are disease, there three things allowed quickly us

receptors chemistry, First the which connect is we built antigens. to to

is, of second just know, mentioned we've larger you got Harlan the is The the what database. set controls in world our in

algorithms specific-immune really response learning Microsoft the able the of machine really, quickly that disease are lot - we've signatures. to the with already then third, built And find

same it's deliver kind blood a multiple test then for models a once So been disease from multiple map this the we diseases, after that's can business results mapped. always for be on and and test, do disease can run been after standpoint person's that disease anything of to it's

I harness And kill to was a side, the the then built correspondingly, look it work if receptors right. platform disease. always when We we with that platform the do immune actually we molecules to as therapeutic Amgen, we is say extension. targeting something on It's time

now to cancer infectious use expertise in T-cell we're methodology screening this with for for While of we in Amgen and developed we've already the disease. Genentech, and starting therapy characterizing apply characterization technology with therapeutic receptors to kind screening in cell this antibodies of

us And unlock and opportunity future for actually discoveries. a so core competency, this does new a antibody

immunoSEQ guess both looking a And of strategy, of long really of ahead, and fact, so for drug concept our our new area term for as strategy great its a Dx I matter a proof discovery. doesn't in change just it

it's puzzle. another So

helps it our drug platform solidify So it infectious diseases really focus for I Dx. extension discovery. again, represents on And think for a immunoSEQ

to important were longer answer but might than how I really have that it's fit understand into you Sorry, platform. the for, looking been it does think

Brian Weinstein

was And then great. think I No, you. that for one very Julie, clear. that's And

can something the the about the blood and any two the difference you're bit little about assay sample the at running talked different blood-based and on MRD You review more service, performance CLIA a just versus confirm when all? what via Can that you if of just in Thanks. there's you types, marrow. entails talk the

Julie Rubinstein

Sure.

clonoSEQ FDA myeloma multiple offered only always we've - are ALL know. But and indications cleared. our – reps clear are think I as that market service, So you our via the

indications, are testing And of so really different in pretty used blood. see all generally we for similar the that the clear sensitivity services

As we've where the the disease but in slow. in it past, maybe it's is still lower myeloma, that in say than the only than a would discussed I blood multiple sensitivity little bit higher state

just all to a also may making is as that's that sure to looking And I likely available option bit to during just we're this mentioned, around. more know for other patients them. little times potentially as we partners perhaps an LabCorp partnering are people so And beyond, accessible change that most medicine make it with and COVID and

Brian Weinstein

you, guys. Thank Great.

Chad Robins

Thanks, Brian.

Harlan Robins

Brian. Thanks,

- Rubinstein A Julie

Brian. Thanks,

Operator

Thank you. Thank you.

from Doug Schenkel Cowen. Our next with question comes

You with proceed may your question.

Doug Schenkel

Hey. Good afternoon, everybody.

are partnerships and diagnostic and Amgen COVID-XX in remarks moving initiatives be. focus with of can affirmations you programs you're the LabCorp and lot on these a and quickly testing fact your of platform prepared obviously your that clearly so efforts to and nimble advance So your how nice

it guys, wonder there's you some of announcements people things out said, really two about wonder know, if to you COVID think you about. I there's and there guess know, That comes a lot I when -

think in XXX under keeping there mind is, first consideration already treatments for The COVID-XX. I are

be a being done combination for that by you're near area And therapeutic speaking as And furthered are for initiatives good could a a exciting needs your that an you the practical that I just fit with things so still a really those the render of are is know, not there's - you guys. know, yet, the these think first, market. it's what tests secondly, the of point rapid really ideally If but this approval need practically patients. the starting new you no initiatives,

market, by the diagnostics optimized the hope really go get a you really vaccine would market. secondly, your more therapies, rapid market. there's maybe the be a infrastructure on isn't already And diagnostic And time the to to and after decentralized hopefully

plausible on around both, going one, these. how therapeutic many pricing third, you already in CMS? out a given any at diagnostic a to timelines? supply there, the and how be rapid the needs that have way? make So that's Two, be to what to market do - to realistic And money the players quick would player for a cost are decentralized of for indicated not reimbursement get respond protest $XXX most and enough do diagnostic specifically And that seems they're market from what given you the

Chad Robins

can Yeah. start you chime and Doug, then in. Harlan I'll know,

I we think down. need it to break

really one, You're some let's diagnostics to it of and we talking and it know, is. - first about diagnostic let's kind need cover by and and the of so depends sets you take one on them data therapeutics first how the what good

market is. product the what So fit

can which do. only you potentially of there's itself cases our to different test test and couple a So know, use lends our that

a can triaging The first that they is patients you time home they based. terms is the that potentially turnaround sequencing This we can of are to in test to to need whether have or whether a go hospital. longer stay hospitalizations, is

second, to of of large returning employers The is kind markets the work. and one

come And I so provide immune none these there - open them kind back many of different whether there's with of truly work. questions to allow are many, standardized. to a I lot allow serology tests. kind scan employers Again, to their think of an think of to I a And employees is

depends it on that. of some So

Secondly, with other sequencing. recognizing the kind we ready kind think a to begun a - into technologies, with bring faster to in want requirements respect I say, point, deliverable ability recognizing test of sequencing turnaround terms I of the evaluating were up kind of to you turn sequencing. of - do for good sample and

So those really think that I those important are think about. considerations two are to are

volume you Third, know testing dollars of dollars are of gone $XXX high serology the of $XXX. $XXX kind pricing of kind terms in of testing for as kind getting has and mentioned, - from $XX kind you pricing, to

and a That point I both support specifically again the payer public higher utility being what test. private - the being would being of on and said, depending you again price community, believe it's know, used data, do the where that for,

be be going with and move get before there then therapeutics, potentially agree us long to are market it's that to a beat And we might time are vaccine. with I are we - going that a we as other believe to it on, There do companies strategies. you to antibody

However severe What therapies in is right? that's you is, it at working look existing hospital remdesivir, you stays of the kind - the essentially. repurposing drugs, look of patients if on reducing set of what - terms at first

then but to to of potentially population. you kind work antibodies going an – then on which And market, not some you're all have may beat neutralizing they will have

think of to to quality to good virus. going going room I be it's multiple for of there is effectively antibodies kind neutralizing again, So strategies the the neutralize be are. And how potentially the

Doug Schenkel

Okay. question. timeline the And

Chad Robins

to fit and something quickly we pathway, FDA then of diagnostic kind actively have quickly move the months weeks the for within again, We the on going have pathway the So we - kind hopefully accumulating working we're market next to on coming think the very term. diagnostic, and the few in front signal of product parallel as near in we'll in a with move on sorry commercialization said, move the EAU and data. and the to EUA

of to terms the right we're therapeutic, In I all it closer over – in timeline. turn is, efforts who's our of Harlan terms therapeutic next commenting to now actually the

Harlan Robins

know do in time - right drugs on didn't efficacy. you of a side other something being the cases these the are getting or are have therapeutic know, play and completely front-end now think that unrelated hoping we'll I are of and drugs that hope mean, are lot and that questions are are I center great Yeah. that the people repurposed, work you kind

seen of to value. any sure either clinical mild provide And but to where sort not know, very majority are cases - - or been you vast providing there's cases might limited very, the value, that we've certain allow value that be efficacy

is population. This in going endemic likely our this away, be to is not going

or set it going a takes many having little in. So having years a be bit to for longer really good vital if many, even to and is therapy come a

let's And longer. product be take okay, bit but first, like really a necessarily to not with we set we'd actually We're said little together have apart that and to be so the works going effectively. Amgen

strategy the And so there. that's really

Doug Schenkel

details. Okay. All helpful. All those for all right. super Thanks

question. multiple for blood-based for actually bone to one And and patients into be more any Julie Just in challenges may there Are me. face marrow reimburse getting myeloma draws? might for with accelerate the of clonoSEQ this doctors a signs timelines offices that CMS ALL

Chad Robins

Yes…

Julie Rubinstein

take that… Chad, do you to want

Chad Robins

Yeah, Julie. go ahead

Julie Rubinstein

no. No,

that Chad. You take

working with closely You're more CMS.

Chad Robins

me question CMS for for pay let Doug, clarify. will the ALL… Just and and testing is whether multi then myeloma approve blood-based

Chad Robins

Yeah.

into in traditionally already at indications of As blood-based about that you you're move point. haven't all are, where hope that expected - as moving And to we've some where you get think I or the reimburse we to we think some general. happen but

if wondering test, aggressive timelines, with to maybe getting which folks just a a blood-based in doctors. I'm their more with use require they're the ease and given of wouldn't little go see

Chad Robins

We testing because FDA myeloma CLL. Doug, did CLL yet a into a until fact A blood-based blood release for the approval. submission, a we of testing already positive get not FDA as any can't we in and we ALL we're market those product of got multiple matter it determination for currently press on so as Yes. coverage

can and letter already to the in coverage service environment a us Moldex And that put the a are recently it we this But determination. into place to offer clarifying subsequent from clear currently. was and being covered coverage policy you we provided was and we

Harlan Robins

tailwind it's maybe that reimbursed. I nice you the have already in environment, be good So - a right. mean, current product, a could its

practically You've bit back even an reasons been promoting current speaking, noted. alternative for little argue in the environment a it, held but the I better by

Chad Robins

Correct.

Okay.

Doug Schenkel

appreciate those all thanks. All Really right, Okay. details.

Chad Robins

Yeah. Thank you, Doug. Appreciate it.

Operator

Thank you.

JPMorgan. with Peterson Tycho from comes question next Your

your You may with question. proceed

Tycho Peterson

with one start for I'll Julie. Thanks.

here clonoSEQ near recovery the path the on term. volumes Just in for

about weeks some you keeping amazing, Street eye we on talked we I coming back? the two anything first you last on? of private be patients innovated come they had Are the How should starting think front kind that should think to quarter? already improvement. about and I an know back payer

Julie Rubinstein

Yeah.

institution what will region by lifted of both the and is even strict I more unclear a think this continue institution seeing months, let's lockdown, a and and uniformly to we're when restrictions by in New be think than really know vary probably Bay under the region is, say So Area. it's as little York I coming will you I

regions. throughout do their appropriate closely think each working I varies. doing country entire it with respective have the customers and and We their teams So are in what's they of

the to some and May heard, in-person starting stage. But at part see uptick this requests some the country an clinicians appointments throughout for receiving are scattered by of we in as you early

working coverage is our on continue We so of this throughout increased national. additional both additional to we've to the payers, doing a job covered are million year, just lives part XXX as team - add great coverage first expected over regional with the and

Tycho Peterson

just then kind the from halo some effect of And work. about thinking of the COVID

here development talked think you programs and sense you [ph] in give scale you're could of biomarkers. work? vaccine talking You the and Can that to of in about per know, us incorporate work what you development about just projects used on MRC a of be potential immunoSEQ terms the of number

Julie Rubinstein

Sure.

that inbound and ones I basis with at stage. daily don't immunoSEQ couple is we the signed get actually working a to numbers team already. really that are of partners is pharma are have that sharing requests the our this So fair amount will of say on projects the we're have a all which a beginning of team

as receptors early they drugs are trials. even the that measuring it's the I their that we in will and But more suspect it and in particularly to testing of grow, pharmaceutical perhaps patients value connecting think to for understand share response, antigens longitudinally companies data days immune we begin

anticipate that growing do time. over we So

Tycho Peterson

on I the and the question well Amgen to deal over the on Michael or had one is as gotten Last whether peal. anybody and we additional color appreciate Jordan as

of kind you appreciate that. clarifying I So

[ph] neutralizing anybodies that point? is work mentioned programs curious by populations. really may had at know, be you there that can may that elaborate if I'm data other of you this you evidence kind behind not But all there in

question future? And then, give evidence we virus to COVID-XX have gotten. exposed antibodies do immunity is another you actually That's whether the in against we've Thanks. [ph] the

Chad Robins

question? that what second So

Chad Cohen

one. The last

Chad Robins

in exposed the virus the COVIDXX, if you against immunity give future. to Antibodies

Harlan Robins

So questions. both good

was COVID-XX So think I little guess, to the being the I quite terms generally, are a broad. of more in I drugs earlier - speaking applied

general of will them, attempting globally few antibodies. most neutralizing of some neutral But drugs not these to think probably of are them different I a be So in - efficacious. be

can on of terms work the emerging strains early of some the population truly it conserved, before in it the against will antibodies of something virus we as be antibodies, - quite was limited. what's of are in different that binding in that a what your either work or depending has neutralizing from the parts strategy, escape it these information the the genomic world about and new strain In only some virus particular, that know, all if the of will the you had

few And right of so with challenging variety can a It's there's broadly probably cocktail - - it's property. wide to a antibodies to patients. of this virus that find the truly neutralize and to going be across make a

it's not game and a that there's it's So lot I a this think someone very be opportunity, is long to term. a in there is unlikely going going short but problem of - solve

bet jumpstart that right early - this doesn't some it be because we'd to if who the a might So the know, some - guys cure. you ultimate it'd have the have But - that's have love great of obviously you of maybe know, works now. let's a not

could then immunity, to were create about immunity, creating what as And immunity? as vaccine whether create a reaction asking you far

Tycho Peterson

exposed actually the it this Whether on No. mean, viruses kind know, cases, you I immunity right? a of the could in against some back antibodies to that that. give COVID in No. fear future, you comes thought there's

Harlan Robins

yeah. Oh,

I think strains - know, with such evidence that of have the of mean, virus can strains - the strain with unfortunately repeatedly. we get re-infected are that common cause that so four the of same So cold I is the you the coronavirus you this

it long. So that last some doesn't immunity you it of just time, gain very is true do period for

think the right I immunity, be belief semblance it time. a wouldn't get of know, that of the period you common the protective for you that it's now, substantial kind but So - belief would some same would be of there's

as is cases enough morbidity cross are cross evolves kind dampened, something The least of that's you severe over is drop. the that get flu protected at mortality from the and lethal the hope it's some to truly how time protection that like

becomes So and of severe. are and less our people much in have more as hopefully the more more endemic next infections round it, population this

influenza. know, the that design be But just you timing think that other right, a to that which thing you this about should imagine, strategy, basis, regular you like like a know, strategy can - and is is want really vaccine shape on you boosted can

Tycho Peterson

you. Thank Okay.

Operator

Our comes question America. next from De Derik with Bruin Bank of

You with may proceed your question.

Derik De Bruin

afternoon. sort you that actually terms inquiries opportunities in to and it's and are and curious one research good jump an on know, just of very of am wanted study just Hello there? where on on develop off some your sort you're I getting applications I additional that vaccine avenue of like what there. helping and

Chad Robins

do you answer… want Julie,

Julie Rubinstein

ahead. go You

Chad Robins

Yes.

discussion with So the know, as the of allow that certainly you vaccine get would if reopen world area could active we rest been think different of an players. us multiple do with I has a this functioning we society. mean to

effort. and and we is we immune everything doing we're can out response, this so And exact decoding think the vital for mapping

data digging that more more also allow that would and particular to sharing and strategies specific into allowing be So then cases vaccine efficacious. hopefully

it's thinking pathogen, you that. the trick already you I mean, want it that it, I is fight to to that gets it immune vaccines to target effectively it's mean, into the what to want again. do intent ready so time next is system seen

targeting we’re so the right the exactly it's key there sure the that comes targeting the virus is when thing, the - on real right so vaccines you And the system immune that making need you're make thing. - to

information And kind being really the what immune are do so an vaccine. for identifying that by are of the the parts and the virus attacked what vital system we effective that's exactly is of creating

yeah. So,

basis. information well as a players, yes, doing We're offering on both. of So both in as a in other as well as service - know, you with kind in context, just a working we're BD

Derik De Bruin

down of I sort a I you of in of range. is your sequencing clinical characterize lines bit down mean, Got little of XX% clinical and it. the XX% your similar, business. at should at quarter like how that maybe the and volumes a XX%, just revenue third Hey, sort about - pick Is any look would down should can the on - talk you coming mentioned that back? Academe us sort modest how thinking little quarter. we the sort in sort how a second we up guidance look bit that of I'm modeling of

Chad Robins

that… Julie, to you want take

Julie Rubinstein

I'll clarify a things. couple start just to

the are to our volumes there range, I about then down that's - down clonoSEQ were think the XX% XX% research more I had that labs in what I more in of the range. think number, on but percent range closed, were and academic so sequencing were that the XX% volumes XX% was said the XX% not

Just to clarify point. the

pass then to staying But Cohen guidance. in know, we're give with customers. I'll And mentioned, in I've general to you as close Chad contact our

to are Chad all But let Cohen speak working teams to based really them demand field for with of reopens. of will Our closely to when world kind the generate any them, virtually meeting particular with regularly, I prepare, guidance.

Chad Cohen

of between here Derek, we're point sometime pretty, any quarter QX and sort predict. the and to appears back second the again to obviously with of the that third the be guidance pretty quarter. bottom things we sort this So is looking all levels because the But from have, hard hopefully fourth curve return happening way vantage official we're the to not of the at providing

recent of bright know, those But and of ability confidently mentioned are most you at in a potential is mentioned weeks. our her numbers point. predict for We the and you of depression did weeks Julie sort April, that that our this in as weeks March of couple of to a spots, of volume toward impacting seeing sort sequence back the script, most see towards some obviously

Derik De Bruin

of some in have cost commentary. OpEx, any additional the San on and higher you've of mean, going I sort sort since look general a I some Chad, the on of forecasting, got you bit just quite lot I And commentary than of were a obviously of we forward, Francisco, it. South out sort build color? Got QX just investments mean, the

Chad Cohen

Yeah.

$X XXXX. is think to about is been somewhere I $X if incremental here trajectory investment way adding on investment continue. and per at back you look quarter. think and So Historically that trends I over million million you we've forward, least between our the And from of - if look going looking out,

We of little Francisco San do the online investments facility, of space build the quarter, prototyping some there in have vis-à-vis retrofitting. office down coming out sort and fourth some South more our a heavier new

that headquarters Seattle to our in for of of as the well as here the of up the end am which going heavy, year. as investment, end start quarter, we that's I new have are addition new the In obviously to sorry CapEx of being you of leases know, to paid going last to be have the as a pretty quarter

of on layer provision, $X growth to you the OpEx sort I'd of of when quarter. in quarter, maybe million of So on million $X sort heavier that slightly you get the some you'll CapEx, per fourth And say top there. full sense for is investment a year between that color helpful for of and $XX the million of million overall the sort $XX know, trajectory Hopefully of our year. in that

Derik De Bruin

Got it.

timing. hand what to I mean, guess, and next I got the next the hear sense of we'll going assume things then some question any lot delivered that? so - and just is, Genentech of data And package I steps. you've on, on they've in obviously and of a sort what's then it's sort of their

Chad Robins

to asset? want you do Julie,

Julie Rubinstein

can ahead. go You

Sorry, we’re not missing it.

can ahead… You go

Chad Robins

that deliver one use. used therapeutic intent library be receptors We're T-cell later would be a can of second also on working The for a year. to this

one, first of getting our personalized also know, on for commercializing towards goal is for setup year track and the an of the terms In version. - filing is the you the end prototype the IND to

there's we been delivered which Genentech this cetera or feedback my full to for obviously that's to guess the products. Once from et confirm the and So have think and everything the per and working needed for FDA in been we unless is IND when then we need shared is more the I that's you package these do all stuff. the the to court package going in be for ask, once safety non-personalized ball version package, filing completely that Genentech’s deliver that,

So the we're – the then set version. as switching next well as on personalized of to private receptors,

when as I'm they - will the the so towards out expect that basically is be it. we So data to deliver in what hands saying coming Genentech’s

don't really timing. have So we

Derik De Bruin

Thank you. Great.

Operator

Thank you.

with Our next from question Westenberg David Guggenheim. comes

You may question. proceed with your

David Westenberg

question. the taking for Thanks Hi.

the this we one COVID, expense what you third is Chad in terms pulling would So maybe on for or second plan wave line? of a If Cohen. did of see levers

Chad Cohen

So a number our that levers business. of I of really we believe hands on have this

primarily the the second comprised a of as the decisions As you is we've with seeing know our amount cost already through year. end made in volume are respect lot that we're as And forecasting of headcount. structure that well of quarter, to we the of volume the

In that to volume. that to slated hold position pending originally we be the a return put of until effectively a number terms we be on of plan or see in of heads

perspective for investment us our sort significant overall in year. help we're pretty to the modulate from So that's terms already utilizing of our levers that of

been some really line cutting on of terms to either normally revenue of those would using We've and out also back cuts to top and areas and drive have investment additional extensions. areas those made repurpose thoughtful to production applications near-term have been deferring platform about that in and purpose continue investments build and or to

they cost that run extent that's headcount, XX% to a of materials and the reagents pushing primarily levers sequencing, our of CapEx of are there consumption that number because we some investments of business, in related. the the The structure. they're to and out our on we relate of have that experiments XX% to So and but volume number

other sort see professional the investment to down litany discretionary if all were respect marketing, and levers of of whole or our expenses and rate wave. with of to consulting another a to that prioritize there's slow then of services, investment other have we underneath we And that, rate

David Westenberg

infectious Okay. very sticking the just of much. disease platform. And Thank you the effectiveness with

expected. You than you Lyme got earlier

accelerator Or on If You're maybe we you and COVID that in than maybe comes about this Celiac the and do diseases? just working deemphasize in the on comes terms - of infectious success the should sooner expect, the a if COVID foot think most franchise put tests. here? disease how autoimmune

Chad Robins

Yeah.

to generate think generation then low unfortunately a and the relatively set upfront question up a it's platform so we effort the lot and in is pivot actually cost way the for parallel that. based our I signal signal can do is great and on

start of and the blood, leveraging So that the on we're by to get in kind really that infectious numbers absolutely same running patients. after an of same grouping same you'd perform groups together have effort assay we to can we on want after need larger to go to test diseases put start the going the

thinking platform. And leverage so the that's to really really way true the value of the we're of

patient, we're running course, on to get the still excited How algorithms, we're disease to some get those get same how you same one like it good we’ll the autoimmune how point - blood not sample signal where be different cetera. regular same next run signal and steps same really commercial just a the- really want we different so have do to our regulatory are – that's or too, decisions assess with on then status want cancer pushing we if more there to the whether commercialization, and multiple on the get for a and do we'll you et thinking and tests that of we're XX, directions the about make since which if you the because in XX would tests you patient expensive,

David Westenberg

I’ll Got it. Thank there. end very right it much.

Chad Robins

David. Thanks,

Operator

over Thank Chad back I'm time. now this questions further at not like turn would any I the remarks. showing any to And you. Robins for further call to

Chad Robins

call. Bye. quarter stay call and joining we'll you healthy safe the you the Please today. everyone stay see on for Thank next and

Operator

participating. call. Thank This for you, ladies and today's gentlemen. you concludes Thank conference

now You disconnect. may

Adaptive Biotechnologies (ADPT) 12 May 202020 Q1 Earnings call transcript