ADPT - Earnings call transcript Q1 2021 | Adaptive Biotechnologies Corporation

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Operator

Good afternoon, and thank you for standing by. And welcome to Adaptive Biotechnologies First Quarter 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. to call like speaker to now Ms. today, would turn over the your I Calzadilla. Karina go please you, Thank ahead.

Karina Calzadilla

first year Thank press XXXX. I today, financial welcome Biotechnologies' results would Terry. we release like and you, And release first to at you good issued a for to www.adaptivebiotech.com. reporting call. the earnings The conference XXXX afternoon, press everyone. quarter Earlier full Adaptive's Adaptive of quarter

presentation a live corporate referencing webcast of has and the call, to be slide website. our conducting this to will Investor a are that in posted been We Section

and During federal forward-looking the of call, events performance management will regarding statements laws company. within make and of perspective projections reflect meaning the future current financial other of the results set forth and future the our the statements securities of materially on listed These presentation. the differ in depending statements with Actual from in are number forward-looking business of which this SEC, a as may public filings factors, today's today. management's

will earnings In our a metrics in addition, found non-GAAP financial can be to be discussed from non-GAAP reconciliation the issued GAAP earlier. And release call. during measures

Cohen, the Chief are call our Chad Robins, and Financial Julie Joining Rubinstein, and President; Officer. Chad Co-Founder; our CEO today our

Adaptive's Robins, In addition, Chad? over call be I Co-Founder and will the for will Scientific Harlan Chief Q&A. Officer available turn that, Robins. With to Chad

Chad Robins

is that platform. a ever. supported what diseases drugs joining proprietary remained our you how to other feel medicine And planned employees This to a Thanks, Adaptive and York. patients new on the all process how company and are commitment our is us I to Karina. New than which has for excitement begin and as offices quarter by using serve. thank want are in first each moving earnings we and see Good that the for everybody. is our the palpable diagnosed, culture, into San At afternoon, XXXX call. our immune stronger Seattle, are we their And and energy discovered our to can Francisco we in of change constant commitment re-entry thank to to we our

on to emergency with areas. are our validated important for COVID, and Slide of reflect to of which achieved diversity prior strategic team. results quarter first and infection. to adaptive. Most our start received in is march testament our progress representing and the a or first the March the million, XX% prior milestone capability versus We by platform for see X, growth in our can versus the significant confirmation prior year a in the Revenue T-Detect we saw across use was of an product quarter It diagnostics you SARS-CoV-X As be first substantial the year and XX% important $XX.X an quarter. T-cell-based milestone strong test clinical notably, recent authorization franchise business FDA our of the

risk T-Detect. proved Importantly, than detect of T-Detect well-known better T-cells COVID that future methodology, disease or success as the which reduce well can the other

year-end, we by In disease. excited supports we obtained further available Crohn's on have are patients T-Detect T-Detect diagnose of that the addition potential work new to continued make about to going to with lime data the

Julie our shared could with this clear care confirm show milestone within MRD share a Pharma, not in both colitis. We disease. year, year current more diagnose also for we live the gastrointestinal remarks challenging our T-Detect substantial public of business, forum is already these distinction to expect research value the accounted identified to that benefit our of and but in this signal of for an clinicians want and to quarter-over-quarter clonoSEQ often the partnerships, later tools, the path provide and the only will Related differentiation ability believe supports in I partners. demonstrating brand diagnostic Importantly, highlight data last overall Adaptive a A generated with consistent is in symptomatology. which patients. to details which patients early growth to some primary then further share determine is to by these our from clinicians and data differentially important the and

our $X guidance, milestones by These these booked materializing clonoSEQ it's we two as and quarter, Pharma great but partners. This our part to approvals related was million regulatory are milestones regulatory contemplated to FDA as which of endpoint used assay MRD our full in of year see accelerating. in were a

use measure a now endpoint addition, In trials. longstanding residual Pfizer, its our to we in at collaboration with who assay disease clinical clinical new partner, minimal recently will MRD a added a

Medicine our cellular the in pharma package. Regarding of our to our use and have discovery immunoSEQ are continue the for protection we immune the publications. and academic T-MAP cases in their continues understanding setback, of England next dynamics antibodies. data of And in may we virus the that from toward for of candidate Genentech, The to immunity, be our uptake seeing our partners first on the the Most customers responses and publication generated the candidate of with drug T-cell that neutralizing response advancing presence unfortunate we key therapy COVID data, our completion contribute was vaccines. even pandemic included lower the efforts who strong. collaboration are while interested are shared emerging New role remains to greater suspension an demonstrating of Journal is several COVID-XX or notably T-MAP shared one This T-cells data evolve. to AstraZeneca to efforts, from contributing as key is In

proof the confident toward goals. year our an on personalized of XX to enable treatment. working of XXXX therapy, initial are in had cancer which successful to start first of We're patients transform product, is vision and cancer we execute we and the In which cell optimistic are For strong concept set may cancer the we more development year. of progress ability summary, from ultimate completed a the this our Genentech our private many towards the about

because the opportunities source platform. This of development As the same to revenue is therapeutics sources see, the code can enable a from diagnostics disease. open-ended you any Immune have for possible we as we Adaptive and and use System multiple almost stemming growth

development that, that to As important the that product achieve proof power it demonstrates development platform, hand become we clinical points, to With a continue of to ability over engine our accelerates. our Julie. I'll

Julie Rubinstein

first to T-cell-based recent with to confirm of SARS-CoV-X X. XXX% sensitivity the is on want to T-Detect thanks for today. the And Slide value all highlight XX% T-Detect future per Chad. prior study. T to CD our joining Detect franchise infection Thanks, of the COVID or us strategic post infection the of I practices, you test at only over It FDA-validated a XX XX% also COVID research to XX% users XX to Since in we has real-world to medicine the immunity study test, understand XXXX of XX continue to including conduct sensitivity demonstrated concierge opted launch, members convalescent the better in order we months had have and from ongoing patients. up consumers COVID-XX. have over for approximately in specificity

range potentially to made be accomplished the believe a importantly, a which include and commercial symptoms infrastructure and for we about intend building the all natural rollout T-Detect T-cells confirm This in future commercial the R&D broad rate among underlying and a investments informative prior market our the time. test T-Detect may patients service educating period short for all will COVID accelerate include the COVID in which models technology, person's develop of stemming was others, T-Detect a improving and to Although of diminish techniques, market we of SARS-CoV-X customers, the past from of future very FDA with launch of applications. and power These will status to and a infection. our infection. tech. We vaccine likely Most the

Now franchise. let's for talk our X T-Detect the of Slide evolution on vision the about

focus shared blood with we patients some diagnosis odysseys, As ultimately for our disease this many is to order vision experiencing and results. the population to always patients immunomics. help from T-Detect differential we with said, of millions become to have of specific need achieve among symptoms sort diagnosis one test diagnostic strategic to move to In and key

are disease. we tests are T-Detect next for While and towards advancing on advancing Lyme we diagnosis GI R&D, step differential in the key

lasting testing Specifically, our potentially our ImmuneSense other an for collaboration Lyme the in our LDT disease XXX,XXX clinical enrollment to Acute antibiotics. CLIA-certified with Hopkins patients from T-Detect of that believe complete show may year. standard to post-treatment year-end. Lyme be efficacy Lyme the a current double These Lyme help patients to with per PTLDS, data study, John symptoms of Preliminary have standard XXX,XXX and even validation of these data by data Lyme lab which syndrome of publish the can We each year. goals identify being disease could care continue individuals or people diagnosed and benefit T-Detect as the after disease, also are Lyme serology-based also estimated T-Detect treated approximately Lyme that with the course

create see patients in diagnostic which preliminary X, GI our believe to conditions, you Slide Turning differential value exciting data greater towards that for first supports path some proposition a our here, expediting we and can will Adaptive.

type signal. small an disease ileal early Crohn's, in intestine, cohort of Crohn First, we with Crohn's additional corroborates of the a patients which completed our

sensitive of for patients, is XX% Crohn's XXX type classifier specificity our disease. several XX% this over For already at

recognize the Crohn's data that that that recognize these also diseases. ileal demonstrate colitis, COVID, Importantly, from the other celiac, T-cells are among distinct T-cells

on graph the right, distinct more classifier sensitive the increase. sample COVID on are size see our can you the as as As PCR the

of step patients, and differential diagnostic in-house our signal which analysis the evaluate ends over and be and additional and our based Crohn's this will later So colitis our next XXXX presented on samples from that improve GI to for completed year. is are

metadata, reminder, through as sets a the thousands studies which characterized well for serve stored purposes. Among the on in can lab. as with samples clinical DNA working we from are regulatory retrospective our Importantly, genomic sample of validation may run clinical assay

offer with milestones current clarity the the the value from receive to also understand how total as a more pricing for with In other anywhere product arrive can process from regions biopsies It a diagnostic and similar continues other tests to market with types develop time. a hope parallel, disease each signal testing may a disease partners, our We blood around signal combination of Slide to the increasingly on than A engaging are whole and take a to aim usually diagnostic of have with are important the compliance over more able and fit, many testing GI focused to physician as GI differential to materializes million biopsy, and in as our as patients clonoSEQ contemplates test specialists Adaptive note that is necessary. There tract, diagnosis, suspected, we gears million Crohn's of occur a patients of that year. $XX,XXX. identify digestive low patients understand challenging The GI the can who these in MRD will Therefore, a rates a few at early in symptoms bowel to to year payers colitis to the a $XX,XXX can and with to we clinical clonoSEQ to cost-effective performs to is is on. sequencing are well. requires increase GI revenue specificity stool primary journey definitive deeply our that be symptoms, an to also reduce which These specialist in diagnostic is patients blood cost regulatory which XX initially X. draw. scales way. from Switching that with patients pharmaceutical used that population care escalated often of are is inflammatory odyssey on a are that leading see the and strategy

can clonoSEQ in On the versus you testing versus and prior tests grew quarter, prior see the of quarter. left the year side, XXXX XX% X% volumes

end had Although recovering year, the and from impact slow the to a highest the the COVID the start business at month-to-date. volume is March of was still XXXX of

been is NCCN by used used HCPs to XX patients. cancer unique or quarter the XXXX treat for orders and XXX states in XX,XXX more accounts were unique more than centers During disease patients spanning now placed ClonoSEQ XXX has one all tested. for approximately

since months clearance XX having clonoSEQ centers FDA passed XX the for using our CLL, Importantly, patients. of their NCCN are with now eight in CLL

drive to policies coverage continue in CLL reaching lives. we payer about XXX covered addition, for of QX, million In expansion

we available that of ALL in filing for the to XX% for already future the pharma review we in patients of wait year indications multiple in actively partners validate blood other LDT XXX(k) largest Studies blood NHL are of we the Seeing year. subtypes. CLIA-validated blood, accounts clonoSEQ as such our informed NHL part DLBCL, readouts throughout for service. keep are and Of on As for Adaptive' you we blood-based continue. of testing one note, usage our of as engaged of clonoSEQ myeloma in clonoSEQ to them ALL for this And one will with FDA

We with growth clonoSEQ to expect double in weighted the continue towards more year. to second half the volumes XXXX, heavily of

COVID of we the is an important achieve and the resolution one in overhang our first However, the factor expectations closely. are monitoring that to half

side disclosed clonoSEQ of growing MRD is publicly that the of see endpoint. in partnerships of choice the number the right trials On the where you slide, used clinical incorporate pharma as test clinical as a can

partnerships, as revenue. as business part of which we regulatory revenue milestones, as well these we record obtained research For sequencing as our development

over with to Pfizer, milestones $XXX partners, As from our two signed in new pharma available collaboration translational million. future a Chad mentioned, million milestones MRD bringing we and recognized MRD $X

Life to research X. Turning Slide on Sciences

recovery the driven immunoSEQ assays. significant quarter, mostly MRD partners, experienced sequencing using business our by research in both pharma and Our from

pharma Academic first were contributor still new a some business, at significant of although the fully academic related to lingering month as pandemic a continue research for experienced research the projects. not quarter, the to Additionally, grow overall bookings in operational impacts the non-COVID centers pace. from small

order to our getting on has partners volumes encouraging set team showing are focused Core and recovery CRO higher RUO the and up operationally Lab the kit. Related than kit, levels. using at start recent LabCorp However, pre-pandemic QX's and to trained been new immunoSEQ

top and to Johnson developers vaccine are year. vaccines their response T-MAP expect the additional several including We Bill-Melinda with CRO working bring study. assess the Foundation, T-cell to & COVID Core AstraZeneca, to we Johnson tier on COVID, Gates Oxford, throughout Labs and immunoSEQ in various

published last of showed CD-X the Our protein, which T-cells recent was the Journal caused CD-X vaccine including in by data month. expansion variant Medicine impacted on samples, regions not New England AstraZeneca those to spike of and the of

vaccine published variant. data expect soon in efficacy more wake We to study the the of utility of demonstrating be T-cells to

data With the determine immunoSEQ to efficacy and variants, vaccines, we to pharma new T select in new new vaccines an using academic the the response response understanding are seeing by of variants the versus targets immunocompromised and clinical antibody and are understand uptake patients generation next COVID on partners evaluate who post-vaccination. the vaccination cell and of rise, to of support T-MAP strength generate to duration

on updates will as continue We findings we provide progress. to our

Genentech Slide to starting now Moving X, on shared drug the program. discovery collaboration with our on

suspended As disclosed on efforts Genentech earlier the product. first in the shared quarter

set focus that Out library caution, healthy next Genentech different of safety to As Recent public for candidate. target candidates the was a selected selected of the previously it high within is to and assessed decided cell levels the the mentioned, the PCR that on preliminary important sites to domain targets. note this target analysis. abundance TruTCR the previously an the reason within our program the and wasn't skip of this decision in PCR of in data showed was specific expression not against

TCR we TCR to have expect year. of complete is package Genentech we a advance this prioritized against continue in next candidates candidate other to In this library deliver TCR variety and Genentech. and been parallel, data with Our within targets advanced our to that stages,

we blood our cancer blood product, TruTCR product with a healthy from While for for we use donors our process. patients use private approach shared from

products. making our you can On side, right we also private progress on good see are the

us data personalized will our of space Genentech allow from the the future process. with The adding totality space, establish Initial an identified we're XX,XXX which least as to future are patients define we of prototype. cancer our we the team. of personalized Francisco ultimately cancer to initial end-to-end completed and we approach South In during April, our more using have we San blood product dedicated feet the data New square year, XX products. and our our for remainder we mentioned, private reviewing than also opened Chad patient-specific lab tumor-specific build XX results aim encouraging officially our As proof-of-concept TCRs these at Genentech blood in and currently patients process with

has first Importantly, this accommodate studies. in-human future new the space to capacity

development product and process the to have for purpose. hiring teams, started dedicated continue and FTEs also build this We out

full Our shared our and remains continues collaboration both product Genentech ahead, program. speed with strong private with and

approach, disclosed to highly potent RBD known identify antibody variants, our quarter, been against and are Regarding that discovery able we TruAB predicted of SARS-CoV-X. last future as have all robust antibodies variants

It mechanisms and we addition, a In neutralizing virus. antibodies inhibit therapies of be the and that is could have endemic promising SX recognized are non-RBD in the targets that SX population to still also different COVID-XX needed. into that is effective now strategy cocktail incorporated action

believe potential additional with discussions C, light that now provide Chad As may update. a in valuable this it applications new we our extension. conjunction, such, solution in diseases who similarly you continue of with other differentiated maximize candidate discovery to variants. are partners, TruAB over of our who In financial I'll our approach platform a we provides antibody exploring pass to

Chad Cohen

Thanks, Julie.

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

sequences biopharmaceutical up XX% $X.X The customers. was driven Our revenue $XX.X development primarily mix period first in generated in growth a sequencing million and revenue consisted first revenues quarter quarter XXXX increased our Research and from to our XXXX. from of sequencing quarter category. by revenue coming XX% million same increased first from of the in our the XXXX. increase volume the delivered coming in the our XXXX from sequences from XX% of XX% was Sequencing for category,

XXXX come in as start the a of to historical show the year XXXX of up the but clinical a period of volume XXXX. trends the second reminder, Clinical the during our half increased revenues tests see clinical do same volume first T-Detect tests We and XXXX, delivered variability excluding COVID from quarter-over-quarter our delivered we are in Sequencing pleased with XX% to most pharma year. in quarter strong

progress, headwinds abated. first revenue billion completely haven't year. Development of the of the in Although we clinical And the XXXX volumes half least $XX.X at same from we last from to pressure to first on year. do the continue make period through grew COVID some ongoing quarter XXX% expect the

component you upfront. the development our amortization relates As revenue our today primary the of Genentech know, of all to

earlier Pharma development key driver due recognition from was the the million revenue year. which However, partners, of came to growth our MRD in milestones expected this of $X the largest in quarter two than

from and XXXX, quarter allocated as our million Adaptive as revenue we Pharma in and new mentioned, partners biopharma was the to $XX.X expenses, to $XX compared assay clonoSEQ of in and first to Francisco, to costs costs, in was cost drug in teams to molecular of our first higher an a year. to represented which our $XX.X San representing first a over for XX% volume the increase XXXX, compared of costs, were compared a T-Detect. expenses last overhead first and in our $XX.X as XXXX expenses costs expenses during and largely now increase. sample the production of percentage million engineering a partially related expenses to increase operating operating our and facility milestones assays offset quarter our the samples. The our Research personnel Sales Total the personnel million increase innovation quarter also Julie increase. team was Development year, revenue materials lab of of year $XX.X Working contributed in quarter expansion of due shift to million development As growth supporting under were headquarters, by to million, million quarter increase related majority XXXX revenue which XX% marketing well process greater quarter represented lab the with an an the their approximate revenue cellular and $XX of quickly have XXXX approval first labor construction Shifting to and and million, available by increases clonoSEQ driving period-over-period the driven increase completion million $XX.X X.X the the last the mix usage million first were XX% in is approaching cost our last particularly commercial software quarter lead for currently the of our same R&D representing relevant in growth, to MRD primarily programs. Increased Higher same a our and $XXX of South utilize lab XX%. were an down costs. this increase. personnel of MRD for for of quarter regulatory operating from in of

our a this reiterating revenue expect equivalents respect exclude million as prior in no quarter, and the year already marketable $XXX our of expenses services. personnel event-related was first a are marketing to to to $XX.X XXXX, quarter EBITDA $XXX ended that of the product. with and to loss suspension primarily cash, we which a The for travel investments T-Detect million. of marketing we was offset period XXXX With million of quarter full loss XXXX the range same $XX and by We represented we in compared had growth delivery first increase of and million savings increases of also in net of the and no to larger million, of increase first recognize Adjusted milestones $XX.X million Net million shared first our year $XXX the for These longer $XX.X customer costs. was the the efforts $XX.X milestone the cash MRD result contemplated General first quarter we administrative debt. related and of year. saw were securities, XX%. the in expenses. of $XX.X IND partially the headcount million XXXX of recognize, corporate XXXX in to by quarter We an quarter guidance, driven were compared quarter and million, the first compared the and loss for loss

and confident year call achieve Robins. with in goals. pleased in really you to our providing quarter We with are full And first early we our it turn quarter. development to forward our back further to commercial next are is year, although I'll updates the the look results. ability We Chad

Chad Robins

Hey, Chad. thanks,

call, As really across business and good on many during the all rest areas year. have during We've in XXXX, already some we the areas across continue to questions. to I'd we momentum for on the the about open promise that, as deliver our operator important our XX. achieved With it of more the capabilities the turn listed demonstrate all feel back like upcoming of milestones outlined Slide We and and and up platform. to

Operator

[Operator of question the comes Instructions] from William first Your to line Brian Blair. Weinstein

is open. line Your now

Brian Weinstein

very thanks rightfully? guys, are Crohn's afternoon. and Can you You questions. potentially actually ability disease patients patients - to interesting talk on and you Really guys guys distinguish you have taking for about this with excited bit about stuff product? the can colitis. means the about more enthusiasm the Good the for you talk for about this, this potential a little So what that between

Chad Robins

is, we're it hand specific. over to Harlan if and excited deeper. But proves upshot This more Crohn's about yeah, I'll data. wants he data that is, are T-cells dive start then super to the I'll Sure. the

can positives. false So we eliminate

better to and doctors looking going each from at diseases data able But a to at foundation diseases sample a to sensitivity. that time as whole thesis paradigm working getting data, outlined results of from differential T-Detect for we're provides upstream - our we differentially For moving the diagnose way. the single many with disease it's for better ultimately to whole to concept kind are first vision one time on really this that disease, sample. the get so And the between of diseases. a that one the clinical and on We're at to of blood single going our going remember

what excited seeing, and really provides we're we're about really foundation. it a So

Brian Weinstein

up Then the following clonoSEQ. on question with Great.

You guys investments have about marketing. talked guys made that have sales and a in lot you

now investments [Technical supposed out? You the relationship help going are talk just those seeing about you Are you you're of seeing Can return that's on to terms that in you how the Difficulty?] those? have a LabCorp

Chad Robins

do think to But there. I we're clonoSEQ. off question, was cut end got take at what the you that want that? seeing Julie, the the Brian, in of investments you

Julie Rubinstein

Brian Is still Sure. there?

Chad Robins

and not I'm ahead the question. go but sure, answer

Julie Rubinstein

appropriate year. making way. ramp we Sure, to we've achieve dated believe We're to Yeah, we're we is there. at drive accelerated volume get of And as been absolutely. The clonoSEQ executing out well us team in starting to time Okay. it a see set this to investments doubling on carefully an well. our

as and So mentioned, even I we're launching nice pickup seeing myeloma CLL really as growth we in the of multiple a had CLL for example, well. nice in despite middle pandemic, the in

have is new from the We doubled We orders the of year. the the of it coming the of ordering community, already using first CLL half about NCCN in of number now. centers pretty XX% are much which quarter a of that set institutions we're targeting. accounts

on we which believe So in XXXX. we're right track with plan, our was always half-weighted back

We've of new reps in education, new completed more peer-to-peer initiatives the cohort, the just marketing class about they will so of be lot and patients. training place towards into field. a also have like We entering the

setting and a a us in we In week week all up this are in fact, really is we're in believe the steps the team success National Meeting in XXXX. all for place together Sales putting just

Operator

question Derik line next of from of Bruin De comes Your the America. from Bank

open. Your line is now

Unidentified Analyst

afternoon, is for taking this Hi, Ivy for you good today. on Derik my Thank questions.

So and you. if as And needs on and such myeloma point to Thank about NHL? the if just accelerate the growth first the the other appreciate about could on clonoSEQ, more indications inflection talk you could the to also reach multiple highly then progress you happen talk would what volume?

Julie Rubinstein

absolutely. Sure,

Chad Robins

ahead Go Julie.

Julie Rubinstein

Hi, Ivy. absolutely. Sure,

yeah, on I very very, we're And focused so, down growth. mean head really

centers. in Now so we've had the target great academic success opening our up majority or activating of accounts accounts,

existing into Now penetration the in And deepening then those focused on moving community. we're really we're accounts.

new As we've discussed team. sales a we've DHS deployed

part to as focusing also on by possible education our of towards CLL many So their at peer-to-peer We're moving MRD use we're routinely diagnosis the which on we adoption identifying in speeding And We're more users because they way that the routine also, that drive makes I care. ordering, there as more in mentioned. focused mentioned in up specialist as times patients. manage accounts. post-activation community as are accepting it Hematology doing as on doing cases, easier clarifying really to focused patients MRD the incorporate

things how each on we're the in just focused those all So growing disease examples are of of states.

pick As That, we've sure from that will I'm a for be community hopeful particularly we're setting. now. important I really is mentioned quite get to continue that's We're particularly at happen can continues nice some more multiple is myeloma going a into time expect moving able back steady move these regularly. to you're really also starting growth our as reps on that patients community And clonoSEQ to And about that we hearing pace. to now. just CLL educating as from and in COVID, as we really treatment been, new back person. everyone into up, get

So accelerated really the that's about happen to throughout needs to think continue we ramp what the how on year.

indication. I that asked think you

readout, interested are those we're quite readout and ALL in blood in partners blood overseeing to we in still that's we our has blood a from clonoSEQ as also our in couple focus waiting a medical But offer advancing in So quite in now. on put And studies of regularly team hold as who lab and NHL on FDA now also NHL and can for are our to trial. pharma the setting. of that remarks, and file the our data we our key ALL is the MRD validation I in of variety in with fact Multiple kind CLIA clinical increasing reviews in well partnership now. the happening many mentioned waiting validating of right as that team myeloma,

Unidentified Analyst

quick very that's I financials. two other on helpful. the Julie, Great, have questions

apologize moving the So provide to saw if the remarks. in I you first sequencing development could an the revenue update percentage. - the between missed see prepared if we parts of I revenue it wanted revenue one in for and total terms mix

quarter about last XX% for accounting think you of talk maybe I to total. the sequencing, XX%

well. my given And putting one where curious, the as that move just all to? second changes, I'm does So upfront

So talked Genentech. amortization last agreement with contemplating from upfront about from quarter revenue the increasing the you

there's so So update wondering Thank an if there. much. you

Chad Robins

Sure, I'll those. take

of year range believe still sequencing come revenues the XX%. to So for we're full between very in in quickly. we at the to XX% Yes,

this our came revenue a You sooner component business than from really strong large expected. were planned some little saw research There that of really projects the quarter. activities in

our quarter. some revenues little the of given reiterating a total made same And ones. a modeling sort for it overall, that should articulated not in believe a fourth XXXX we the the from development percentage question. year investments mentioned revenues heavier in still came and articulated. what perspective, looking the quarter's numbers, start robustness in of your quarter previously second still sequencing with won't should We a last see XX% a development we we're that. than XX% revenues are still had modest in on that like that quarter. And potentially full ballpark on coming the line believe just growth, basis. of quarter-over-quarter at with development a We ton we believe perspective. but third we a be We the off effectively this we But that our really in of the anticipated, quarter that just So our of sort we from as then to Yeah,

still in revenues last that So of sort amount from in we Genentech. provided total quarter that the of development range of terms

Unidentified Analyst

much, very thank you Great, Chad.

Chad Robins

Yeah.

Operator

Your question of Tycho from line next Peterson from JPMorgan. the comes

is now line open. Your

Tycho Peterson

immunoSEQ Hey, afternoon. I'll good COVID. start with T-MAP

about now the how the you do How how And had about the of quarters, big is? trends vaccines there of durability like? the various NextGen think couple curious and that seeing there? think it you've a think we business Just as the durability that you you're about out

Julie Rubinstein

Sure.

Chad Robins

kind feel now, with up understanding in pick T-MAP the light that Maybe and start to business the to jump just of Julie variance I'll vaccines. response is one T-cell actually for is to free of in. right But that starting and

that So business. we seeing are

In that with we're based business. that terms of But the we T-Map your durability, the able of part kind be a of building Microsoft to of see map on the parts fact of of your it as durability, kind other COVID - antigen depends franchise kind a the map on of research as the of can inform population. to having endemic we in bit the quite leverage business, being view

the potentially targets. future but is exciting what's business, one therapeutic ability data for So think space. in the interested on and inform And the in, research about not we also there in particularly autoimmune opportunity to that is we're just that area the ability is that

see that starting to you're crossover. So

So winds the business COVID in of that's kind antigen that future kind and opportunity the one there's map. we major And - of of of durability obviously disease of of are benefits of if opportunity kind think we terms that the states. even up waning in other

Tycho Peterson

curious that of that a I'm how maybe up jumped helpful. couple you Okay, The programs. that You one? Pfizer across meaningful mentioned on that's comment you Julie, can is? clinical partnership,

Julie Rubinstein

you that there's as there disclose well a partnership. signed, is much don't financials like payments is others the We translational myeloma It know. of revenue annual Sure. multiple some - this many actually It's case, sequencing milestones. in as the as we where

there'll be myeloma. the so involved multiple in development targeting And compounds at multiple Pfizer program

Tycho Peterson

a steps proof-of-concept that cancer for just about be private Okay. you should attention now have we next the their you think And then delivered their the process, XX the for bit on paying Genentech, that on patients product. talk you the to? evaluation private Can product about how

Chad Robins

do one? that take you Harlan,

Harlan Robins

Sure.

are we're parallel out objective take private attacking the and this take the T-cells a So just and that - of patient together in working the reminder, on product in that as at receptors safe shelf a T-cell to T-cells, the And them idea therapy. a the with product and both since back patient's those on have off of future T-cells, potent and/or cancer date identify given on synthesize them. then the the target that put an being into and we'd own them set the some a

the the Genentech actual the et And cell with et cetera. that on part the the same identifying at manufacturing reagent really the And rapidly, basis. we're stored, all are development actual what parts we're of to proof optimize side how really through time on the two related And all now And principle materials to blood, is start processes much discussing part, to science and other how used, to specific. the workflow, development receptors have the together a going the process. do our the the very cell are going then it we're is we're cancer that regular that's So exactly is therapy T-cell work cetera. working on

to do we and proceeding tracks but we're we going. So - go, the the nicely. the on have to it's and ways train's it's have But a we're hard direction a thing about feeling good

Tycho Peterson

Okay, that's helpful. you. Thank

Chad Robins

Thanks.

Operator

Your of question the next Doug line from Schenkel from Cowen. comes

Your open. line is now

Doug Schenkel

apologize know Hey line I little is advance. the everybody. And taking struggling I my bit. a everybody Thanks questions. for on in

any been these just product on is My shared have answered. if apologize I So of first [Technical Difficulty] Genentech the

Chad Robins

we Doug, hear can't Hey you.

You're breaking that up. Sorry. try Could again? you

You see we'll dial jump. to possible, line, if back on and another in

Doug Schenkel

will I yeah, do that. Yeah,

Sorry about that.

Operator

the from comes line from Morgan question next Tejas Stanley. Savant of Your

Your now line open. is

Unidentified Analyst

Yuco [ph] Thanks questions. on for the Tejas. our Hi, taking this for is call

You What us that mentioned later information Celiac this data focus on presentation looking what be and should sharing you you with be Crohn's and for will additional year. have for? would we

Chad Robins

Yeah.

bit and we're we done Crohn's XXXX about have we've couple samples - samples. found includes We different that we which waiting There's last But we samples a where far, signal. was that study things. little So And we in-house had colitis. a smaller now first colitis our few a XXXX talked of one hundred which study, Crohn's for, what year.

going we're together. dataset So analyze finish And to almost we're sequencing, we're to then it going done that then dataset. that put which and

we Is the and the Ts analyzed the cross all our have is we'll we once and the --really science. study our So data present fully larger dot make sure on

Unidentified Analyst

ALL, then in given for might good seeing blood traction remind of me for you you a clonoSEQ think terms have? in of seeing CLL? blood, Got in you're I if update are it, CLL outside mentioned thank follow-up, what you the have you. could you clonoSEQ And

Julie Rubinstein

in our expansion Thank This is blood, our not about usage lab. in an - XX% of you. is label Sure. time. CLIA have at think which this we FDA-cleared Yeah, I yeah, in ALL

Unidentified Analyst

great. Okay, MM how as then And in about - well?

Julie Rubinstein

a at this much smaller, that's stage. So

myeloma have and You and of different is data a marrow the of out multiple the disease at the the of is reading emerging still trial bone moment. biology is sort the still

one the not that some so of is yet as quite other as indications. And blood in advanced

Unidentified Analyst

thank Great, much. so you

Julie Rubinstein

Sure.

Operator

of from Doug Your next Cowen. the from Schenkel question comes line

is now line Your open.

Doug Schenkel

again. Okay. We'll better - little bit Can all this now? try a can hear guys me you you

Chad Robins

Doug. great, sound You

Harlan Robins

better. Much

Doug Schenkel

and Okay. now The messed the landline up cell. But on was sorry about I'm that. anyway,

if advance earlier this in apologies covered again on. of some So was

are, any given at parallel. given, that happening, do looking target. quickly of to might being assume pace as that Again but just to of and the just starting IND On been and success, already this means probability the or numbers you'll wondering accelerating is a in a mutated. increasing are reach along, in submission? on wondering, maybe fact contemplated you're neo products. given if safety positive point conviction not, information what like an no the limited whether biological some been some is matter you - this then antigen, of that's there extent that targets any bonafide not I'm or there if think using you Genentech how signals such around but just and maybe consideration I'd to has And there great have ways fortify I'm just this if a mutated that build more get signal? shared wondering increase has I'm going all just guys And the it's

Chad Robins

Sure.

our to of and and your is one immunogenic. So upfront question, specialties, with Adaptive are we're antigens targets that the going starting confirms, then presented be confirm this that after, honest first processed so we and

deemed not still - done also do, even next the need tumor these of the but know we it current. the recruit the side. for all I antigens They done quite discovery advantages be many have other searching as and these be Then patients, size best bulk that where working have many, clinical we work are can the those have that then which going And to we XXX have has and meaning before targets, with good is is say the they next of in characterization subset receptors hit it that use, guess really have different been their we our - all parameters and/or the targets clinical that the is we of optimal Genentech, step safe after. we targets. step hundreds So on to then okay, parameters well the with, on deemed out the pick the I'd And to over considered. absolute that sort maybe it mutations for together, that

lot tracking we're said. one that There And yes, second of hear I one. a yes, than for work point your so step on each reason more ladder into parallel is the And of you the goes question. these

Adaptive to needs we're side, On be is there the but on clinical parallel, the discovery put in around able each whole do program to a one. side many

work more this, more than that we So get the the are the the tighter one. tracking part line, But on on parallel we funnel.

Doug Schenkel

Okay, covered you that may for therapeutics, heard I question. earlier on Again an especially that. And T-cell this, then have given you program. personalized thank on

this at and share your or believe on but think to proof to Did quarter you close were of launch that. targeting I the I data that lab first prototype concept in happen?

Chad Robins

we're and - Genentech. - have our have that we with share we've with that other I shared don't But in mean, experiment multiple not then Genentech since having to now we're shared completed first it I Yeah, we've done going samples. we yes, and know fact - pilot publicly. been we're data

forward now of targeted as well and with that team at as we're XX team. patients, we regular progressing discussions beyond clinical sort have the well Genentech, and but scientific have We the we're

Doug Schenkel

prototype And the lab?

Chad Robins

- now of yeah, And et we've and effort is built through development hired the we've some unlocking down And the completed at workflow lab the is we're that in sorry, team. the cetera. prototype now out, and and real lab construction

some - - but the the hire team in of and fully have of to is equipments operational. We lab the some all more out the it's and ours

Doug Schenkel

position to it target sounds good end your mind with in of the XX you're And by patients in of like that hit year.

Chad Robins

Yeah.

Doug Schenkel

for all right. the and That's again, technical Thank great. sorry Okay, you challenges.

Chad Robins

Doug. Thanks, problem. No

Operator

question BTIG. the line Your of Massaro from from Mark comes next

now line Your is open.

Mark Massaro

investors on to to have some concerns and Hey, is guys. about congrats is first seem one I target. strong shared ability quarter. question, and my a Doug's questions the there to are for that Thank another your guess you advance similar that

for mitigate steps guess guys that the picking around do address? specific detail from that future? can just a you And wondering sense provide to but the Julie first candidate maybe mentioned antigen. I target, us give are target I a more the to little potential maybe as the for was just tumor-associated what any know, opposed in can you items risk first a you neo I'm antigen so to And - those skeptical, was can if a

Chad Robins

Sure.

is what we no is to there that there So whole set ensure. of target need procedures matter a safety

tumor-associated that, because And also in so antigens. the are the likely versus there neo different. is profile a But human If is risk some not safe antigen found I antigen pretty antigen neo But it's the normal tumor-associated genome. different primary public the consideration, many, data on think in sort just done there expressed lot in normally in different a has many is a which spot, of we're lot what's now, has ways, a been better more of increased the tissues work significantly.

next relatively and low quite is of very, safety risk we're lot feeling - our to confident do more has very a safety considerations upfronting speaking. So that able we're target

Mark Massaro

my in on expecting Obviously, I milestone was that. not And the $X second the Okay. question, congrats quarter. million payment realizing MRD

in of - pull the or what or give studies. any an MRD as MRD can specifically as to us So a in us it you the studies biomarker is can additional it how metastatic speak can also if sense? detail a endpoint just that you can and realize don't size used. surrogate milestones or used with was as the clearly And Was a pipeline could clonoSEQ Can adjuvant you and far setting? forward you be future? know enriched promising I help give

Chad Robins

you that? to take Julie, want Sure

Julie Rubinstein

guess anything, But for supposed Sure. Sanofi And there BCMA label, that we reading just the tell second is endpoints. of Abecma, the to multiple myeloma. them And Sarclisa one secondary in with multiple BMS' one say. are CAR-T in Abecma I just the the maybe - I so can then would suggest not say don't we're public, that and - I you what's myeloma.

Mark Massaro

Great. And of then just the pipeline. in terms

Chad Cohen

Sure.

And that is is burn kind outstrips the but are replenish same to it will of over I we've a we that that as and obviously milestones frankly the disclosed amount that replenishment pipeline. the at what studies those over So we sign. settings. obviously kind different we time, milestones, down of Those there the kind burn are But puts additional kind of it with accomplish us, the used of those takes down. in $XXX number, million available there's mean off hope of and the in is continue number to we of time. kind variety

of access milestones to myeloma One have over big endpoint would kind would of amount approved kind of to that us time. an the be catalyst to be, trials FDA a the as if allow of those significant able multiple in

Chad Robins

is so a partners The across milestones across those to a so those dozen about or that dozen partners. cut that with only thing I half about or projects would a different add

Mark Massaro

Thanks so much.

Chad Robins

Welcome

Operator

Westenberg the next Your Securities. Guggenheim line question comes of David from from

Your line open. now is

David Westenberg

the Thank you taking question. for

want So stick MRD to I area. with the

lot on that all versa. been different there tumor out vice are from things tumor?? all is out interesting has the a is completely in studies I one realize So oncologists interest any - the market that of that solid the with solid based all and we've finding are that been deal hem/oncs it's you, for of new MRD going our there oncology surveys that sometimes a but

interest, the So curious just space? all been coming if additional kind data amount over out there's of that's of with this any just

Harlan Robins

mentioned, benefit a care maybe treating patient this It's will an in is would kind monitoring Yeah, be residual of oncologist this. In - to of do genomics continuum. where from of that, kind in kind community is all that typically this take disease, comers. using Dave. into just be And are as positive iceberg incorporate to setting of the I'll think general you able I particular, we

concept of with solid whether but tumor comfortable monitoring we're to liquid solid kind the - thing and mention the that able general, in one piques in I and available interest, tumors tumors. test anyone variety monitor be by a of of variety So they're to name, different monitoring and monitoring won't kind your of in using also

the to - edge. community, hem/oncs be these on in cutting especially want no So don't in the

side, want don't they On also behind. of the to left flip be kind

yet we're to MRD I edge of would early, think company others When to education. category. the do you're I one hopefully it's really think benefit kind hematological a where peers boats on there's collective that and very that rise hitting many our that And main difference where agencies from over that say thought go able we're think it in MRD MRD we starting I space from and tumor focused to and move the as I that that think of see But is leaders haven't different been kind crossing with kind the being into in monitoring. on just we'll the the broad-based a true tide happens So of are the that mentioned, see bleeding group, because just all in as I of at solid starting Julie as and stream. do technologies we're point will to looking

David Westenberg

by mediated itself. and I think differentiated all that that on looking stick And you I are let's the actually specialized you're in very Yeah, think have you in Because where concept. technology market you a for B-cell are that B-cell cancer.

that point, is maybe And and add would call hem/oncs a think to the you you maybe that you with reality mean win reputation dealing I'll you regular force are I the basis. with fact And have indeed stop that group. approaches would that. Now outside on of do maybe if very the there that such a complement good clonoSEQ sales just already after you

Chad Robins

for continue It's question. value portfolio of to a ways add to question, good good look a the bag. the we David. to It's And

incremental just - continues look that at offerings evaluation for it leave that we've at So there which say to got I out our team probably opportunities search kind of value and I'd to to to would now. add a and

David Westenberg

so Thank much. you

Chad Robins

You bet.

Operator

of question line comes from from Our Ritzer Goldman last the Sachs. Salveen

now is Your line open.

Unidentified Analyst

our on Great. is question. taking thanks for Good and afternoon for Salveen. This Elizabeth

Just us on from a question TruAB. quick

this. and if program. just you you're the the long-term Maybe you So near strategy other and diseases. could that term then mentioned on expand And exploring both the for

Chad Robins

take Harlan, that? do you to want

Harlan Robins

Yeah.

and - question. scale question our developmental great our deep able is I'm antibodies can go really with research we're starting capability, many many, meaning the advantages not But given to a in sample. the because stage. have sequencing through the that team of sequence and real very principle Hey, that this with that we are in really another we charged much asking is different So

So be particular do. - us the did advantage from can other question to that that what which antibodies allow where find is differentiated would groups

think good feel point I of think yet, has so kind we're some the to the comfortable we're but resource team come And I it. us don't quite the exact that giving going where at directions direction with and I we're up going

something We kind think feel in feeling are like it have about is get publicly, I to of - on and that good we're but general, the program general. this still to resourcing we're to in you back going

Unidentified Analyst

you. Thank

Operator

am I call. conference further showing that joining. And for time. no this concludes our questions you Thank at all

You may now disconnect.

Adaptive Biotechnologies (ADPT) 6 May 212021 Q1 Earnings call transcript