ADPT - Earnings call transcript Q2 2022 | Adaptive Biotechnologies Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Adaptive Biotechnologies Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Karina Calzadilla, Head of Investor Relations. Please go ahead.

Karina Calzadilla

Daniel. you, Thank and Daniel, everyone. Thank good you, afternoon, would Quarter XXXX to you welcome Second Biotechnologies Adaptive to Earnings I like Conference Call. Earlier quarter press for today, release reporting Adaptive a we financial the of second XXXX. issued results is available The press at release www.adaptivebiotech.com.

are corporate and be call, website. that been referencing of Investors the presentation we'll posted slide conducting to a a section We webcast has this live to in our

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

Joining the Tycho Chad Chief and are our Financial our Co-Founder; and Robins, CEO call today Officer. Peterson,

Adaptive’s and will the be and Chad Q&A. In of to business, Sharon Medicine Chief business; Chad? addition, that, I'll Immune With Scientific Benzeno, MRD Robins. Sood, Harlan Co-Founder; Head available the -- Officer call Robins, Head immune of turn Nitin for

Chad Robins

us Good and you Karina. on earnings thank Thanks, XXXX our for everybody, quarter joining second afternoon, call.

thank in XXXX dedication businesses. Medicine through big the our We're MRD to and a year. another achieve you employees quarter. our continuous Adaptive goals halfway We're First, track and hard all delivering for their our strong work in both on Immune to

was prior representing growth we As second results. important for milestones million outlined towards and strong executed quarter key quarter, versus Revenue year. this XX% X, delivered the of on Slide $XX.X

grow. in volumes We testing of clonoSEQ and decision performance. delivered continue B-Cell our only of MRD pharma pharma for Diffuse DLBCL. positive partnerships to is coverage most prior secured and And and year. Large Our common non-Hodgkin's Medicare MRD versus coverage strong test XX% our first MRD the business grew Medicare partnerships a type to clonoSEQ the lymphoma. clinical receive for comprised Clinical Lymphoma,

another a pan-portfolio quarter, entered This agreement yet pharma company. major into with we

business Our experienced and applications from we comprised discovery growth drug immune data. partners. pharma We diversify of testing Immune continues services, grow research Medicine XXX% opportunities of as into receptor multiple significant of to pharma our clinical

Our with Genentech partnership is our on programs. and cell therapy both shared track private

have confident made multiple We diagnostic decision launch vision to to disease, T-Detect. as multiple with blood path test reimbursement. we we and with change are than our data a enough respect a diseases, working physician are clear in for to signals disease long-term by business until in test commercialization commercialization the with behavior science deferring T-Detect indications. have Rather for The multiple is strong single we of a

strong T-Detect as while drug generate Related to we our runway. we cash manage could continue look expenses are our panels. now partnering and we However, utility focused around our while discovery to financing multitest opportunities data extend exploring pharma non-dilutive ahead, that on we clinical activities, prudently corporate

MRD Slide Moving business on the to on X.

the is and clonoSEQ in growth shown testing accelerating our graph, clinical strong As quarter-over-quarter.

sequentially indications: to to Ordering of testing patients direction. the growth Slide XX%. accounts with observed or X respectively. double-digit myeloma lymphoid providers MRD all in shows in XX% for care ALL, our HCPs grew nearly grew delivered X,XXX XX% versus X and health ordering experienced in Unique right solidify marketed All year, tested malignancies. significant with strategy patients XX% prior tests leadership and CLL. quarter, our This pointing are and tests metrics multi growth

existing accounts. XX% to fully force, established came volume and underscoring accounts, from within which on potential is trained focused existing is quarter institutional expanded deployed. team of activation the increasing accounts the accounts further with our the penetrating and of growth community institutional now the First, new this expand usage field

of We by of which sales activated a grew is accounts the also team newly expansion. indicator number our XX%, positive community

blood increased prior patients, all are potential run DLBCL penetration using clonoSEQ has tests versus and key into We Medicare treatment XX% or blood-based plan of which positive to testing, Medicare-aged, patient. XX% both expand regimen blood, of to of policy number is multi increase therapy, tests immediately extend line in per coverage is of time which performed of growth to following decision. of MRD driver About The and testing and are clonoSEQ of myeloma all Another regardless the quarter. importantly, increase DLBCL among the our effective point. XX% clinicians

testing and importance Based better maintenance in in MRD had therapy that treatment, of DLBCL value XXXX build on until prognostic inclusion. the base of patients data as independent these transplant, result Data strengthening achieved An assess by transplant outcomes informing is and utility adding the clinical authors evidence support contribute tailoring expect continue clonoSEQ determination to its the patients. guideline benefit presented myeloma triple treatment by similar emerge, we increasing in that value to to continues from therapy III frontline beyond. the at from newly given We highlights prior progression. to showed diagnosed maintenance outcomes. of and to efforts, our state negativity of X study important ASCO who for DLBCL study to followed the MRD the multiple of goal a clinical MRD This elimination to care and growth for for trial Slide was patients. Phase clonoSEQ to designed

Slide to on shift X. MRD portfolio Let's pharma our

being multi are in trials, active penetration. standard, trials. gold Our XXX clonoSEQ assay XX% almost about active we XX% among is representing the In penetration pharma used myeloma, heme

to replicate and success in CLL. myeloma NHL multi our is goal Our

partner, pan from new eligible million with increasing our over portfolio to a $XXX signed we milestones a and quarter, studies. major agreement future This ongoing pharma

our to Slide turning Now on Immune Medicine X. business

near response a on cell for midterm, drive can proven the and therapeutic offered as we receptor to patients On T-Detect Immune continues Layering data be diagnostic revenue a on the pharma in with ability to to shared Immune overview business to indications support collaborations. have T will with called this partners opportunities term to T map vaccines. our in Medicine ability as reimbursed business valuable Slide be We focus of growth various drug including drug in an can cell drugs, map disease-specific our antigens receptors TCRs used unlock our cell and symptomatology. in a differentiated growing the measuring cell offering multiple provide X, Clinical to standard. at meaningful and we in a to gold opportunities. antigens that in and immunoSEQ our panel cell partnerships and T is research Medicine diagnostic level, product to leverage base to multiple long a From to we signatures that scale once To contributor for our inform and T-MAP establish discovery. B discovery to development pharma sequencing is expected expand testing T to pharma

vaccine autoimmunity We to and on and COVID drive oncology. expect are partnering in programs infectious RSV and disease, additional revenue

the discovery. TCRs we and/or chain. data applications. can clinical for also a up the value further In antigen-specific drug our response regulated drug partnership as target be with basis This of used is discovery, characterize endpoint Moving Immune R&D Genentech. with diagnostic

additional high-value on increasing discovery drug are our We opportunities. focus

validated T-Detect We on proved Turning testing diseases. XX. to and capability our clinical clinical T-Detect Slide our testing infectious in strategy

educate FDA testing. class of Specifically, the T about a T-Detect cell-based new COVID key achieved was to EUA and

which us and T-Detect implement CLIA and CLIA made to Lyme the our also available algorithm. continuously We enabled to end-to-end lab, in improve workflows

can not to have us previously, revenue for cost focusing is decided that by disease internal our high. generate of to commercial showed test This the drive there improve near-term signals we mentioned we disease and We and coverage more the R&D improve allow experience signals that reimbursement. drive through clinical Therefore, As pharma path us on before the is T-Detect to and believe will partnering. to clear signals evidence commercialize support uptake vision to and self-pay T-Detect. by a customers launch

We tests. are that commercial disciplined as confident T-Detect clinical achieve to approach success will enable us differentiated this a high-value with

to it about Tycho I'll financial over look that additional multiple opportunities a updates to are today on for we business the and discussed progress. We pass now excited our forward update. providing

Tycho Peterson

you. Thank

second million same increase growth, Turning our a Medicine revenues pharma Immune ago. to clonoSEQ respectively. revenue regulatory starting from clonoSEQ financial and in of research MRD MRD XX. the plus on XX% $XX.X a increase testing, with of MRD XX% MRD representing XX% results, period was million last from year from $XX.X million, XX% approximately and was an milestone. a Total the revenue, and $X which comprised the quarter from revenue MRD. our pharma we recognized Within clinical partnerships and XX% our drove of from in million, with clinical Slide partnerships, year $XX.X is XX% business, testing

increased accelerating in same these and continue MRD which to milestones by vary X,XXX volumes, over our tech delivered include tests the last see materializing test quarter-to-quarter. XX% we X,XXX from partnerships from transfer, to year. can While ClonoSEQ period time,

million X% to largely marketing T&E million ago, headquarters expenses million was our increase of We to or opening increase $XX.X in were expenses. to XXXX representing the to $XX.X our in was year. from million in from a decrease, an XX. a higher $XX.X volume expansion was ago, noted representing change expect the by collaboration the to depreciation by $XX.X million $XX million marketing X% XXXX have higher on footprint force and $XXX a a well partially with Medicine continue million, which higher trends $XX.X the were offset we by This to last as growth quarter. for revenue year expenses ago. remainder $XX.X Cost customers a compared from a R&D from to T-MAP in costs The and quarter-to-quarter. Genentech Shifting driven and operating past, of or $XX.X compared for an quarter a a to medical compared $XX.X well reduced a Immune the operating new advisory costs the immunoSEQ from loss a XX% varies compared last Slide million driven decrease representing as which last costs. year. second our year were and partially X% driven by from year $XX.X of of last expenses cost personnel the higher year COVID Sales the similar mainly million XX%. $X.X revenue million down Net T-Detect million assays. primarily $XX.X was revenue expenses increase Total amortization, increase of was X% from expansion personnel decrease sales increase half year, decrease were G&A of X% $XX.X attributable $X.X to academic million a as and costs. representing $XX.X of pharma using as a was to facility million mix year million expenses as $X of increased and and decrease due back a products million from increased compared million and ago, million

full guidance. Now turning to year

million. $XXX the revenues still We the full our revenue range expect and midpoint $XXX have approximately are businesses them to of reiterating year Medicine of million at full MRD Immune our Both great to momentum, year and we our XX-XX to contribute range.

full activities expectation $XXX of $XXX target expenses, we that operating full million beyond and For our announced efficiencies managing in to million be to reflects operating the $XXX $XXX at the expect million year of to improving year. restructuring to year This -- previous as between million. the compared continuous our we efforts investments now beginning our

software consolidation, optimization. the and of cost real include exploring estate workflow are operating we sequencing Some reductions efficiencies and

and our the we expect back we being in burn to about of expect off year. approximately operations, to rate and support to be quarterly Importantly, the half cash, our million sheet our are deploy thoughtful balance $XX we capital

with years $XXX Our capital strong. about and quarter around us X equivalents, in cash runway. which position is ended million provides the We of

I'll long-range market year. Chad extensively the to conditions, I you to cash mentioned, working over look runway and Chad. profitability our exploring With further with half in given financing forward our our it back hand are while that, back non-dilutive on of plan, As current details extend also alternatives to to path providing we the on

Chad Robins

Tycho. Thanks,

looking and the over remain and Medicine Immune we with and to it and second path to I'd achieve their half As Both outlined We're our back operator questions. our are great track respective Slide fine-tune of to on it the have great catalysts investments listed momentum focus XX. as MRD like to a up open profitability. to turn for disciplined businesses we are today, year. sharpening our our on our

Operator

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

Brian Weinstein

don't have to the to least At on first Tycho, who's with fight I anymore question here. get obviously, going

So that's a positive.

sort Medicine. Immune here for partnering question of on of prioritizing a sharpening and Just pharma with discovery opportunities. you I the the understand focus

the So costing? path it Was What it can time now? be talk taking And Medicine a it profile recognizing led is the you just talk R&D? sort the to little Was doing of a the Was about just to more was also for you changed? that this what it first going understand as bit really further you now? why challenging? us about absent Can then of help T-Detect growth can Immune question? portion commercial

Chad Robins

Yes. I the we there of vision multiple that just just as Thanks -- committed for put answers. question, And to out to the Brian. test of a single blood with kind remain T-Detect want

by in rich our that this near-term same immune data receptor as we're kind Immune -- many leverage data and that Medicine increase And And disease of However, our signals. the of disease time, to we is we're essentially same costly. challenging to incredibly to of a able at drive realized our at these matter as business that continue time. strengthen and able in growth get deals, the we have paid signals of fact, pharma path to commercializing we will the

healthy we're So our if I it grow at light came look our -- And to long-range far to to we we actually profitability. Immune just kind at segment mean, so plan, very our over of to take -- it is this it look as of at path year, it, developing grown much XXX% business. of if focus It's into being picture, sharpen is capital this rates. a do towards continue really pharma look better Medicine the expect able a say and efficiency the to you that, as big just it you fastest-growing

So our while continue this and pharma rich commercialization we're call of immune going unique T-Detect, higher-margin opportunities from set. deferring the using I'll data to we're kind monetize receptor our to profile partners really what of

near way of what generate margin in think I is profile strong doing more revenue efficient we're essentially, much it's to the the And a higher signals. a replacing kind with term.

Brian Weinstein

talked these Got having give some is about an of newer drug you were mean, there way that when smaller of outside like you you've of this Just types that that the these hear we things be guys it. looking opportunities? press to would behind does of leverage opportunities kind And pipeline these may disclosed? opportunities you high-value deals releasing? I to scenes? kind of of us on going of what kind Are Are number a about a at. already idea kind -- discovery of what are look about that to of

Chad Robins

Yes, Brian.

higher-end all -- that about side. it's the side the way across if at the we'll target a from be and warranted, for opportunities. where discovery, more of for We'll research multiple as be we'll partners through slide, -- really in on drug filling will kind really, it think of combination the pharma you press But I be up with look spectra everything -- release disclosure. -- us we'll quarter-to-quarter, appropriate, our be And allow deals. as it's -- discovery from the pipeline the early more on talking again,

Brian Weinstein

to Tycho, time then me. have expect I I the some on options back of half was thought And to the comment what thoughts we to one guys couple hear and that some maybe than that year? here last idea teased Nothing confirm point? Okay. frames you other that said these you should some from of quarters. even about something on want get this over we'll What of at the in last you non-dilutive profitability -- for on

Tycho Peterson

Yes.

our kind updating X-year of to the on planning long-range it's We're profitability, in important. of that. midst So incredibly of X- kind

non-dilutive financing to we're opportunities third call it have on around of quarter And starting we're from that. hand. with over the said We've how year, a position $XXX to strength. But shore about the cash to we'll up, communicate. we'll can extend likely Chad million more profitability talk we we're half the cash years our that the thinking we've the when begin in back to today, so to is of then at yes, and reiterated got more X on front, so of And about looking runway financing on path communicate and publicly looking

So I'm time a going hopefully later, not to than but sooner rather that. put on line

Operator

with comes Morgan. Qin question JP next from Our Julia

Julia Qin

do So sales uptake big the we help DLBCL. see you ramp will the to expanded think for the great How in us that indications? penetration? your a how near-term it's off drive revenue the near to know with clonoSEQ could think trajectory talked market, Obviously, see from term. like get start business. think you about. potentially Obviously, on you the you other Or faster coverage think it's do Just clonoSEQ we and you expanded might maybe can through experiences you uptake revenue change force? Do mirror quickly historical benefiting the MRD your that

Chad Robins

to that? Nitin, take Julia. do Sure, a you at crack want

Nitin Sood

Yes. MRD Thanks, cancers. the we're coverage. Chad for a clear DLBCL Julia, DLBCL lymphoid that It's the Medicare common that subtype test you've we leadership the for continue only really and heard for we're look, say, first And view in lymphoma. most that receive as to non-Hodgkin's validation MRD position question. as I of to Yes, testing excited our extend coverage. about

other we growth, have In of standard things in DLBCL to XXXX. do the do to this contributing We'll the second disease terms we that of types. half with expect all happen to

We have to out the there and educate go physicians.

physician to change We behavior. have

in we And multiple that unmet years guiding significantly need care, large good I'm the to seen have get data. a bullish therapy And similar happen patient we'll guidelines. we've recent for pretty monitoring in We myeloma as for advanced have and landscape to DLBCL that able has be to what progression very into disease do recently. is and

informative CAR-T in relapse. assessment identifying DLBCL risk clonoSEQ at are in we using high than more patients can post be recently, [FCD] example, who For treatment that MRD published of

So to growth the of higher I the MRD above a at base. overall, continue this see but year expect rate to we're grow business off annual to going or

So in the off trajectory a higher outer but years, we base. continue this growth

And forward. we're so every in tests going incremental more some year adding ways,

Julia Qin

to then helpful. one it. level, financing. very when more if That's understand Great. you're give about you wondering high for Tycho And currently on right increased I the of structures are types an ready on non-dilutive or was a your But they business talk can T-MAP the deal are you're And you're to going the on kind biopharma? update with on to save of now? tied you closely What I planning kind for to details conversations focus deal having exploring. be

Tycho Peterson

No, fair a question. Yes. it's

So equity a generally of to reluctant non-dilutive, the kind of meaning I'd of balloon off kind of issue just given here. payments. say we're high is debt table kind nature level, the And from

these a potential I more this give don't that with exploring world much do royalty are of than well-established detail therapeutic but is type companies we So a in to kind royalty-type want the transactions. of model that, deal.

So Still we're those now. in discussions having are the process.

again, tied be types revenues, things no updates total firm of of mean, the So overall. T-MAP generally kind and would done revenues these program. basket a of to specifically on not I

Julia Qin

follow-up maybe to approaches you around on about give currently can long-range specific would components talk the some you the on working color are is details, and on? a plan plan. the any about or getting approach then thinking us milestones new new And visibility it. whether I about you're So pharma there into Without you're something how know you're it. working maybe

Tycho Peterson

pharma out you further. for cut view? to of would required I a to us don't change kind in map you involves stuff the in kind anything that's overall. don't add of trajectory portfolio, think continuing the of be of build initial obviously that know, it going Yes. of continuation OpEx there I long-range is of significant lot mean, highlight the of market world, kind Sharon, immune progress, side Nitin's of any the a on to envision kind I kind there. from -- and pharma kind penetrate continuing we're to revenue it's kind I of Look, get mean kind build MRD the is want think to of then that's I about the

Sharon Benzeno

Yes.

in in the exactly continue project deals And or our the Chad studies different course, as we target we have up research X the uses -- take we of books, as years to uses highlight that therapeutics You X efforts, account prior discovery indicated, components. and the obviously and future to add business out. in into revenue regulated development component

Operator

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

Derik De Bruin

much can So benefit? little Lyme I Is think I modeled commercial then the I into sort sense our appreciate you the But having mean we bit and some but just GI when could a comes some that lot, T-Detect out. you and year? on first should mean, of had T-Detect landscape some us the start was we going think fact to know products some how timing some I that of a more Not give next And disappear stuff about need also to that also, models. of how COVID? complex.

Chad Robins

Yes. first is don't first, one COVID. the T-Detect I Derik, which why take

sources, source. a as supporting a T-MAP about in small larger very is We as model. by -- That EUA. the the -- potential amount is contributor revenue a paradigm cell protection T partnering only authorized test continue T-Detect kind are has work this closely impact to But a think on and wasn't a it is, the of contributor going that our immunity, to significant we along there on correlative for the is there a pharma, with financial And cellular think pharma of to was We've study, up. COVID other of really which the revenue said, we're to from product, data partners being we kind the keep here. with which first standpoint. data it's We which COVID being important talked

So up. left be will T-Detect COVID

checked which we We the self-improving -- of out our kind to Lyme and We those take accomplished diagnostic lab, made do. algorithm, have set which boxes infrastructure made to available made we and what in down a blocks kind in it We how all all a available. future with we put launches. CLIA have of the offering. a lab software, the CLIA decision for building the We it us enabled on to validate of is panel But Derik, there have of -- which are symptomatology, on we That that. -- because very part of should associated we MS, chronic neurological to the a kind work as guided continuing and Lyme, many chronic disease and long-haul of revenue shared again, being Lyme little said, been the be or I our syndrome COVID. kind including PTLSD, think post-treatment confused could kind with disorders, even of Lyme other with

with to pharma of partners, pharma Lyme, kind to across of So in the the revenue. from potentially that R&D And data et can on is single one kind really can our every we're kind data spectrum different these and work cetera, -- where there's the is -- there's bring positive, an kind generating going that we ongoing thing we of other programs from which perspective. GI near-term goes immune to if singles of going -- do, with receptor leverage we're data that is is of that leverage for

Derik De Bruin

Okay. the about but T-Detect of though, start reset to But a the right, the time revamp would circling top be thinking start back, line, the when would the to sort to and then good here? when to -- contribute then just

Chad Robins

replacing more the the Derik, view. detailed the are near kind of back really some do Yes. we talking for probably when in of leverage the of earnings, to profile couple just margin of replacement November strategy. out, data more a with And let X-year we'll a development. in near-term out science long-range a a revenues mean, kind roll of a pharma. But a plan and R&D that it's term. strategy and higher but years here revamp, going to those of we'll have It's we We're the kind kind of different it's on kind kind kind of we're assets, I X but get at

Derik De Bruin

where see higher going near think what was have to like that potentially in revenue models and to, I ones are higher these you actually of right? sort for in drive the planned do that's something -- And Okay. offset of could I the they sort -- could or be enough term? you

Chad Robins

the going revenues certainly a Karina kind with That's revenue. of I higher encouraged I'm by work profile, the let we're we're Yes. with But Tycho what of Derik. replacing kind -- models, margin to you terms seeing our and those products in of quality what that somewhat paid on of consider are those burn going with and pharma from time. the some to a at same at partnerships I'll has get approach earlier develop multiple for to of essentially least R&D kind detection to off panel R&D for indications think

Operator

And Westenberg with Piper our from question next comes David Sandler.

David Westenberg

some the great stuff. on Congrats clonoSEQ of

there more the had I that. for that might on-quarter stick color seen. because more with increase happened answer I'll finally think couple you on bit that a sequential I'll -- So was that and give on exactly you to that biggest little this you inflection clonoSEQ, in have stop we've And a Can what -- inflection? I have

Chad Robins

take Sure, do to Nitin, want you that?

Nitin Sood

that. take I'll Yes,

there's multiple think I factors.

and we've then setting existing was sales drive our in sign in new community is as to our out increase strategy accounts up trained fully I penetration and our the team think also as And there talked about, as deployed well where in blood. First, there. penetration accounts

all those seeing contribute. So factors we're of

saw talked or most trial. We Our The institutional to the in of We them of many driving signing evidence driving existing the we're institutional them growth. about come are growth sort continue accounts, new our we the setting, out. And accounts increasing DETERMINATION amounts of the accounts, increasing community are from see of then coming they that's growth. XX% contribution from -- but also still we're accounts. up are -- community

be helped The the physician is to lymphoid multiple not. decision, -- make I important transplant awareness or whether in of think treating goal points DETERMINATION for think myeloma that of as be stem that And one decision to fact the cell big highlight cancer a the trial MRD MRD do an and general negativity. should used decision. physician that the treatment that's community I can to really

that we growth. to see So contributing also

we there's of that a continue this expect growth, There's into So coming I to subsequent play to and things growth. one thing are well. as years that's wouldn't the lot in growth contributing say robust contributing

David Westenberg

offline a It I'll here. it. X%, XX%, you like it, little it I does XX%. big Got there because was more seems X%, inflection like just a ask seem guess, went

So anyway, Can scientist. just we'll in more rather DLBCL I'm that a us non-Hodgkin's than whole questions bit not an look piecemeal at you the And NHL remind that. NHL. of oncologist, little sorry, a not lymphoma? a then on is why I'm couple

that cancer So plenty that. ordering blood are XXXX lymphomas ones just indicated can about the that. a talking tests, like ordering even found And remind oncologists contributor. and kind on you're we -- of cell finding then checks of as you're also, that this are and same These not the T oncologists me our for with you are

So inflection why is there after And I'll that. point? stop a this XXXX

Sharon Benzeno

Yes.

So a answering lymphoma, as of question, each a are first lymphoma. subtypes, subtype there There's non-Hodgkin's set non-Hodgkin There's within has XX% DLBCL lymphoma. follicular your and, which slightly different treatment evidence result, required. multiple lymphoma. of cell about is a first all, different that's paradigm The mantle

to Medicare we're but DLBCL non-Hodgkin's of for went those. to that lymphoma confident feeling we'll reimbursement we able And we will after tackle rest the first, get continue So subtypes. be

that's do to required growth. then about it subtype the different. DLBCL wanted a talking for is because a time to evidence And So each contributing step we at

DLBCL Streck blood current used, we our And -- all, in to of accept widely it First for plasma. in to tubes. be accepts to needed whole test order

convincing through Streck the that go then that. DLBCL to We talked have in we've And of education do guidelines. into Even in getting launched process the to whole tube about this isn't physician we And we the it's education assay a previously as for So in established. the physicians, later year. process. doing use work. it's to second XXXX. the And test same in result, really blood a going still kick We're the of MRD need non-Hodgkin's in, of lymphoma though set, half

So all the we'll do work.

We have evidence. the

We have the studies.

in and going going have and is XXXX. that. think take real But the second team of time, the half we to capability We expanded why do in, sales to that's now growth the to it's kick

Operator

Company. Our comes & Brennan Cowen from question next with Daniel

Daniel Brennan

congrats I'll here. call Tycho, Tycho, first on with you. Maybe, start maybe

the in basically guide believe, I the back you burn I the half prior of but guess, sheet, have that on $XX line targeting So with year OpEx. the the is you're million. in balance lower guide, That's

to think at where should maybe me a kind if are the be you it, think, around that $XXX were cash? help year-end million? little of bit. in the And Is for we forecast guys code? ZIP So just we I landing that right plug giving, through Is that

Tycho Peterson

Yes.

million yes, year. $XX the -- in burn in So back are half quarterly the guiding we of to burn

As $XXX million million. mentioned, down to $XXX OpEx took I to we

workflow other So that's of like the year-end. that that From What and cash some restructuring don't and we'll of too part that. I be it? where things highlighted kind the in I far was of other yes, a the of think position, terms around at kind reflects efforts off of

Daniel Brennan

noncash No, -- in I I $XX because some prior was million of I the are million OpEx the maybe know just half. that guidance burn cuts I back guess, think the to $XX

down And that's burn more, so down. all. wondering could I'm CapEx is if reduction coming come the just

Tycho Peterson

more efforts get underway the got bring to other to every efficient OpEx. trying day, right? down Look, we're We've

that's generally So it we're X-year planning, the we and not of to if to our effort think X trying right? ongoing plan, too, As about bring annually. hold long-range part down an OpEx

Daniel Brennan

And clonoSEQ. then it. maybe Got on

can I asked like obviously, there's different just already, to the access But with access today? but Just few more companies space discussed Has a you're have what know stuck. that changed speak a in really being questions I acute cancer. know looks you much? diagnostic

continuing to So improve. maybe that's kind of

productivity Dave's more lot I halfway terms as So force? of the a was but sales question, kind at to in it where are to access? go just there? Is there, fully they we touched is maybe at are Are where And like are we field of of expanded we there know in more? the earlier, upon --

Tycho Peterson

do we question at Dave, before But cash million year. the Yes. that, just the end of the on $XXX earlier,

had $XXX it's you ahead, think But said million. I Nitin. Go $XXX no, million.

Nitin Sood

Yes.

access hasn't So few much I think, changed unfortunately, the last in the months.

ahold through of to new hand, physicians other we channels. think I seems it the are a to be get other But normal. able on

the we well. sorry, what so half second I'm that years expect in second was and your outer question? And much the year not in of change the to as

Daniel Brennan

It the expanded was just team. commercial on

way enhancements, place in to sense rate that the of of team kind now. the of far trying with how a along Just get productivity

Sharon Benzeno

Yes.

the a a So -- productivity. lot terms increasing I think long way of in to there's go

the to still for of on to team territories X is this in the each sales going takes in first new think really to and I months X individuals territories what's deployed. develop quarter where was It trained their territories. understand their

And I forward. months way away increasing footprint XX expect so from sales away productivity productivity sales would to to our increase a forward. to I XX our I say, at going it. don't expect side. us quite increase continuously going from least We're

a I productivity. think increasing by in of current with we footprint drive increase can the business lot

Daniel Brennan

And on T-Detect. more then maybe one just

run samples for ileal and colitis, know So I you at number fair Crohn's the a presentations. of

broader enough like than need need signal which is you targeted the of spectrum signals into evolve the a Was in were to to how bit going that be isn't have indication initially that first indications and Maybe indications panel. having not of would out speak the chute? of a those think maybe areas? you across Or targeting to maybe broader to so a those idea those something commercial the the you that, first strong first enough to those signals? impact have So a be kind just the kind were I just little bigger idea just were the more of of

Chad Robins

Sure. Sharon, that? to do you want take

Sharon Benzeno

the absolutely. Yes, for Thanks question help to clarify.

a is top priority. IBD So still

colitis. this differentially panel that diagnose as and of example, help potentially includes panel, And that ulcerative Celiac having initiated in which enhancing and a in In fact, study ulcerative also for our are terms for a symptomatology in GI we clinical and disease, IBD example, our signal, T-Detect GI disorders, really aiming, and from shift mentioned, both Crohn's Chad in just not covers IBD diagnose early. we colitis could of, including other but focus

So the also differentially And neuro play as to come panel strengthening we our the that's can as lines MS Chad diagnose. and and one a example a still indicated, signaling of into of pursuing signal where, panel. are

activities. signals will are that that indications. And we the are generated we've the continue again, in to date, those So to continuing multiple and are scale and encouraged by

Daniel Brennan

a should you within businesses willing of clinical some us I know those Immune outlook that, in development? color buckets, would The Got of about think trajectory as said then how be Medicine. one to clonoSEQ of think you implicit for think we in different it. and of you across through of between we buckets the kind maybe kind context the guidance MRD and just the your provide about help But report, some you guidance? revenues? XX-XX a clonoSEQ And could when pharma is on MRD final the the

Chad Robins

into I it if I I don't know, Dan. can, down. frankly, probably we I back know mean, break don't could it. specifically think you

ASP and you that. the to you can the If delivered get probably numbers, test close have

get I out are think a there harder know, you provide I resolution probably the but going kind broad-based kind Immune think you model. further sitting MRD, is kind to of that. as proxy. can Medicine bucket. those you're But the we somewhat Over into milestones Obviously, first quantify, on and with of work are you and of the cut, of to time, may we'll

Operator

Richter Salveen with from comes question next Our Sachs. Goldman

Elizabeth Webster

much opportunity is the This just to discovery you and in on can long-term target growth. that on is the frame This I'm vertical. Elizabeth contributes discovery Salveen. the help And kind how hoping of drug

Chad Robins

do you that? to Sure. Sharon, take want

Sharon Benzeno

absolutely. Yes,

of and lot disorders partners heels a IBD like need. terms to and opportunity as we discovering signals There's high in see of the where a unmet of there in diseases there's then MS. we really therapeutics we the pursue on autoimmune that that mentioned validating these So generating, targets potential novel are and

what is our exploring. the soul And effort and TCR so we're mapping That with of antigen heart that's Microsoft colleagues. the

that that targets against we excited enable terms even also some to and for discovery structure of that drug around get to pursue And and deals licensing so in those can to could really targets or these we're opportunities very us scale TCRs continue novel that discovery antibodies. and

Operator

comes Tejas Stanley. Savant question Morgan from next with Our

Yuko Oku

This on is for the Yuko Tejas. call

clinical With contribution on that and a you potential half in the could opportunity to DLBCL to term? make see back whether more expected of the the near the elaborate you more on be side opportunities meaningful 'XX, research

Chad Robins

Sure. want Nitin, take you the question? to

Nitin Sood

Absolutely. question. good Yes,

for in therapy already pharma on think number I very landscape an are rich. There's penetration towards there. we and is increasing DLBCL our mentioned, working the companies. penetration very So large is And low. those going lot in I There's trials going DLBCL clinical as clinical trials activity endpoint as of on, our a of a with

positively already heard and So conversations The management that very DLBCL working we as some pharma be expect in an clonoSEQ about with and by broadly Medicare a revenue from having trials. positively. handful We've view test is we're companies fact available the space, viewed for they are is that a players coverage all this them, in using very near-term patient the we major of to endpoint that contributor. already

Yuko Oku

some Great. And hospitals -- it of a noted your some Is run unrelated for And in then industry been into? also and shortages so, just an as clonoSEQ? if something has follow-up, of you offices. in that headwind staffing they're the seeing the peers physician

Nitin Sood

Yes.

we are out to X that because So actually of get we do they trying something largely order are a I days a days of us within think of variability. accumulate see saw sort QX those we this similar, orders we I think a week but And send couple on and quarter, seeing some despite performance on we in continue to strong -- very and orders. hope day-to-day week that, that and that and well. as We some QX see spikes

Operator

And question our next Mark BTIG. comes Massaro with from

Mark Massaro

can not I you've about think And guess, think about it on we X as non-Hodgkin's that in reimbursement be of Xx to X sort lymphoma. pricing have? congrats test for on guess ordered should I I and think past, that? the fair or the you've think comment the around somewhere received to received flat how patient whether can the in you we to you Should bundle tests. blood? what for that is NHL about a per already

Nitin Sood

Mark. over bundle pricing. of Yes, clonoSEQ, the the going is that pricing we for usage, time. received identical the terms so I question, to in through for And think Yes. Thanks grow historic that's pricing

we and DLBCL, move in to as then time. approach we I over online expect think with where into longer greatest And refractory familiarity tackle build upstream we is near the more on and DLBCL as there of which on treatment. setting evidence and our I And build is as the will come and is we people also to as live with utility longer usage diseases, increase first, clonoSEQ physicians the it think using more these term. relapsed treatments frontline think

Mark Massaro

can And know Okay. but were just earlier, question effective you asked I you already immediately. I maybe that think, pricing, is this confirm

numbers uptake impact So the why early the understand half I of the your 'XX? be you in and for sales that in small the guess, just fact you why is, the have could through are expectations this us 'XX? in an given initial that first of size maybe that more it of force have everyone the won't what second I the But knows days. bigger X Or walk conservative in is low just being clonoSEQ uptake months.

Nitin Sood

Yes.

specific it's I So very reason. a think

frequently the community On into capability current is setting based plasma. limited. on prior talked the send you I physician's think plasma about treated, and is blood, to in take where And is this to the whole we us know, in plasma most earnings, spin test, current the test as down that DLBCL

we launching to there. to product, whole accept very where be which blood Streck all biopsy tubes, are end in change a to able the the So will at of we're liquid out similar the sort other this year, tests of

driving second the of that's limiting year. going end half. in a the at happening growth that's for to I And be factor So think the

paradigm the of discrete to tube will is growth limitation, reason the covers the think limitations, why really growth given Streck in addressing, DLBCL. XXXX. we're which I adoption So DLBCL real which without come for for Medicare that think for in want that's coverage that all be we the throughout treatment emphasize again, we will DLBCL sort And limited. But just

Unidentified Company Representative

of kind academic more still of some specialization where community, there where the is is we're -- all-comers, much a one of add to couple there in just in -- center comment said the our the is multi that penetration leukemias, more so far then kind a in some but they do a clarify, lower the in in -- now. specialization Mark, it's But Granted treat kind and myeloma been community, lymphoma I'll of medical different penetration community category. right it's rates to the lot largest times. between because is

our So that base understands a trying is sales but this that's that's well, we're to get a -- smaller what growing and all kind but that notion one test off obviously, to patient who treats smaller now. of force -- right doc our

Mark Massaro

Excellent. Okay. last One question on MRD.

borderline the Your indication referred DLBCL DNA. about sort NHL circulating as tumor being based press to on or heme how NHL I of on release a talked you've And almost is think disorder.

So opportunity. recognizing development? leaders that DLBCL guess, I a obviously, dominant may of market big also you have solid tumor NHL certainly that this a the through be are guys development heme, are believe leads sort or into tumors solid the you you in to that learned potential of anything precursor

Nitin Sood

address that. I'll Yes.

whole underlying from DLBCL we have cells. test that essentially originates for ctDNA that DNA have developed technology the think that same the uses for we I

and our development sense, we put assay, have around about that looking yes. technology And of in leverage that, look So very that and all excellence the the years we the operational in that of protection at manufacturing the and time, at can hey, different in all years controls tumors, it effort we we we and into it's we analytes. test. leverages also can at it, terms we demonstrates But the IP that same talked haven't have, something have -- solid similar that's all it

Chad Robins

we're especially Mark, MRD potentially as developing that It's we perspective, question, itself evaluate in many tumors. that's of of one. continuously take I'll obviously we're it's lends corporate kind other our to naturally something And able a of technology our opportunities. a franchise. kind expand amongst a being solid evaluate we to new natural good continuing will And from development kind -- to question. And evaluate opportunities

Operator

for you Thank participating.

disconnect. You now may

Adaptive Biotechnologies (ADPT) 4 Aug 222022 Q2 Earnings call transcript