Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the Adaptive Biotechnologies Second Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be question-and-answer session. [Operator Instructions] Pleased be advised that today’s conference is being recorded.

to Calzadilla, conference Head like speaker to now Karina today, of would hand over the your I Investor Relations.

Karina Calzadilla

and to The is quarter results for Jacinda, to press a press Earlier release you, good second Adaptive I issued everyone. Thank financial reporting would today, welcome we you www.adaptivebiotech.com. earnings quarter Adaptive available XXXX second the at release Biotechnologies conference call. afternoon, like of XXXX.

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

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

for management members be Additional available will from Q&A.

Chad I’ll Robins. With over call turn that, the Chad? to

Chad Robins

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

As all to for of execution. thank dedication always, and want their I our Adaptive continued employees

solid with year achieved. results and months the six through halfway We’re milestones key

our in achievement which clonoSEQ was our the amortization. than and million, drug milestone growth testing versus for As XX% revenue reduction an strong year. anticipated more quarter $XX.X reflects clinical shown slide discovery, of in offset from in X, Genentech the first This prior representing performance growth

acceptance with and disorders oncology in for in our progress. in are therapy. candidate IND to and we’re advancing, programs Genentech to cell see programs continue the pleased R&D first Our autoimmune Both very cancer

versus streamline gross percentage prior margin related to and efficiencies, improvement our alone addition, efforts improve sequencing points In organization operating X of our to quarter. given we achieved

We with our achieving leverage hand. operating ensuring are on and to path laser on profitability cash focused current

Head leaving and me. thank for MRD that our MRD company. announced clinical a and years important take we his I’d to has is a wish report his multinational our for past of responsibilities additional foundation directly a Nitin we business, to contributions who the today, and Nitin the assume for Bobulsky, five to the in Earlier led Susan in Sood, made will business endeavor. new him like leadership he’s new success position public solid laying at Adaptive business

MRD Total XX% a now year. quarter, business at X. prior look and the on MRD testing Let’s slide take grew closer for clinical including versus pharma

growth side volume you in the myeloma XX% healthcare trending and see contributor continues accounts main double-digit the volume and indications grew the XX% growth be testing grew ordering strong XX% marketed all in the respectively. all to indications. and increased Multiple delivered year-over-year On providers grew largest all the growth versus in Blood-based sequentially. driver. and year, prior Ordering XX% can slide, with with right left metrics Tests clinical direction. clonoSEQ of

Now all of approximately are tests XX% MRD blood. in

blood year a accelerate versus volume ago. accounts, key of XX% continued penetration to factor contributes trajectory clonoSEQ in Community now and XX% growth a quarter-over-quarter, its

going broader quarter getting forward. grew XX% reprioritized. side extended trials milestones. slowdown reflects on biopharma That the MRD this business portfolios shown As as the the in of reflect and healthy slide, in factors are demand slight industry macro right strength Pharma growth The said, for excluding the bookings regulatory impacting

volume test Zooming slide X. into clonoSEQ on

record continued volumes to We set quarter-over-quarter. high

This quarter XX% to volume tests grew XX,XXX sequentially delivered. over

Medicaid out growth over due of the to end impacted growth higher we XXXX. to and in contribution. the year clonoSEQ quarter Our XX% volume drive strategy and were reaffirm to volume versus in commitment with working ASPs policy is indications our

However, targeted increasing as to closing resources collections. plan ASP claim for on we payer management a and improve gaps, contracts have well as remaining focused policy

initiatives are ASP the will of We these enable growth years. reacceleration confident for next several

Related is this and well, expand customer bring are in pilot month to to first for a our sites excited milestone and integration partnership live with utilization, to the to ongoing our progressing This our clonoSEQ we Epic with initiatives sites integration demonstrates to additional marks Epic investing clonoSEQ follow. commitment experience.

expand in to at readouts multiple highlighting testing meaningful continue particularly data blood-based also myeloma. conference, the ASH We

the study negative category MASTER patients As clonoSEQ shown for conference shows final X. after of two of This discontinued three-year clonoSEQ have data over XX% slide of for are analysis them in consecutive decisions therapy risk high or during tests, patients. standard June. critical progress EHA in on after These received very The and that was well by adoption who making driving the been presented study for therapy did not the follow-up data. physicians

both the in testing look fuel growth. strong summary, In for is setup forward and to clinical MRD its and to continuing pharma, we

on this business Medicine generated revenue more and Immune the $XX contributing from discovery our discovery in million quarter drug drug services XX% of with revenue. pharma X. We to slide than Switching

business industry, budget by reprioritization. IM strategic the macro including was impacted affecting this and/or pharma quarter services factors Our broader biopharma

year-over-year the vary as throughout comparisons year. RUO addition, pharma lumpy In is business the

This development Genentech. decrease from offset partnership stream revenue an therapy quarter the represents was amortization discovery. for with the this new We IND Genentech our This important the drug milestone recognized quarter. a help milestone in to first cell

take the program product neoantigen therapy Let’s at for closer a first T-cell slide acceptance with our the Genentech FDA X. IND candidate. directed secured look Genentech therapy on cell

clinical T-cell acceptance capabilities. of our drug our IND of discovery is and which therapeutic the value cornerstone this a reaffirms platform ability our discovery TCR receptors, and characterize identify Importantly, to grade

up solid look Genentech life-saving first potentially to We for the with thrilled trial with forward this supporting and inhuman as acceptance for this it therapy patients by are gears tumors.

also personalized In program addition, the is maturing.

our regulated Francisco in end-to-end progress dedicated required and and workflows the are We track laboratory. our making South to are on building standardize infrastructure good San

lay the year for readiness. foundation Our focus this that build with the Genentech requirements product is to clinical development

R&D therapy slide X, see novel high you disease to sclerosis. targets cancer on programs As focusing to at aim discover with novel value in we’re Genentech, by our year-end. includes executing cell in to specific target autoimmunity. to one deliver points R&D our proof least We can multiple resources in key identify addition partnership in starting on This

making the an excited look as We’re we year. progress forward during we to by advance providing and we’re half programs update this of second the these

now to I’ll pass it over Tycho.

Tycho Peterson

Chad. Thanks,

milestone. Immune from clonoSEQ slide XX% clinical increase a Turning to financials with which revenue quarter from representing business XX% second XX% growth attributable IND was a the and Medicine, million, was year on our the MRD XX. in the Total from from to and ago, $XX.X primarily Genentech

up increased from and ago year the from growth from offset of driven the a in XX% of a by partnerships, from recognition test and by last partially milestones. more delivered MRD year the XX,XXX services. lack X% both testing milestone, X,XXX with same amortization regulatory to clinical tests than year. volume, revenue million, MRD XX% international grew to period Immune including pharma tests up ClonoSEQ pharma $XX.X Genentech offset decline ago, revenue which million, Medicine $XX IND was in a

moving versus as The revenue. the XX%, XX to X-point year attributed quarter slide versus Now X% a was well quarter sequential as XX. gross increase ago. last the cost margin for Total a of decline P&L and IND milestone percentage-point representing was a a on increase decrease down mainly the in

total a the our to R&D, OpEx, XX% and We the number move mainly declined X% the forward same periods. marketing optimize information year-over-year disciplined including continuing to organization, and respectively look ago, lab processes decline including investments to grew lab margins OpEx year streamlining due completion a versus with total, through revenues in in and and efforts, updated G&A R&D systems. during XX% further enhance sequentially while R&D. to management cost of remained a of sales revenue including of stable Other In and XX%

going to In to addition, significant switching we forward. which to expect we evaluating from X, are contribute NovaSeq savings NextSeq

comments, with Finally, which $XX.X million, from was profitability $X.X financing bridge $XXX last interest income. the for the million noted year. interest for ended and cash, will quarter approximately a expense compared securities, to us quarter the agreement million $XX.X offset by in to We additional royalty marketable Net Chad was without with was in as million loss his capital. equivalents which OrbiMed need

outlook slide Now turning on to XX. our

in $XXX guidance million we We from XX% our the MRD of MRD milestones XX% and the to Immune million half year. growth contribution continue regulatory our are over business, MRD the approximately full $XXX the as midpoint, to from in as reiterating from revenues. test Within in volumes At expect of well Medicine. back businesses XX% year to clonoSEQ expect we be

weighted We expect to to to expect that revenues be the discovery by year-end. close quarter, toward half more we deals attributed second heavily drug mainly fourth

and be to XXXX burn also reiterating OpEx Cash to of a previously $XXX of preservation continue now to year remainder we quarter revenue $XX $XX of below the cost operating drive As per targets, expect our we XXXX our we remains priority estimated. versus average are the million million. including million full OpEx efficiencies, for

were and breakeven XXXX achieving in and financial cash XXXX. driving EBITDA QX positive solid operating leverage remain committed we results to additional and in

back over turn Chad. now to I’ll the call

Chad Robins

Tycho. Thanks,

Immune R&D to of As potential during MRD well our our In patients and the at discussed maximize our and our businesses call, Medicine are each and to value advance programs Genentech ways solidify we business increase leading looking shareholders. we our serve with best are performing market partner in autoimmunity. efforts MRD business internal position. and Medicine executing to In business, we clonoSEQ our and Immune penetration to our are our continue our

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

Operator

first of [Operator ahead. Vatnsdal Please question go Rachel from Instructions] JPMorgan comes Our Chase.

Rachel Vatnsdal

management some pharma. for forward? strategic temporary MRD that and departure, announced of business flagged the portfolios reprioritization you Nitin’s in with as of follow-up, a And you have us up first to plan just going and transition the changes around you delays trials through walk at So if can clinical any expect

in So, you delays long could those business? through could really you on us MRD think reprioritization the walk how that do weigh

Chad Robins

Thanks for your sure. Rachel. questions, Yes,

I’ll to a to to I contributions respect transition for. be are that him turn it his a Nitin who’s minute want call. But to with comments. some we There’s the I make for in Nitin, him over business. seamless thank the to than all more want prepared thank to to First, on going

years, incredibly me. and the Bobulsky company the We the a for report leader with last clinical team Susan years. is leading directly for She’s actually have clinical lead several fantastic strong business been business XX oversight with bench. that’s direct been really to is sales to the an going and of the

shape. in And The the is strong business foundation there. is really good

a on ClonoSEQ cylinders. at growing fast firing volumes all pace. We’re are very

volume very expect We’re seamless and good to transition. are and And shape very we’re mentioned in XX% the in over committed growth metrics all during a pointing as the call, year. right this direction

Nitin, any comments? do you make want to

Nitin Sood

MRD the a Adaptive decision And been solid Chad. place rewarding me business Yes. truly on has one, a This is work a difficult to as Thanks, foundation. been has for at.

Our results that. demonstrate latest quarterly

position a in product best We And with building key hem a strong MRD reimbursement, broad market of have in clinical are fantastic pharma. leading in Susan and is from choice cancer up. evidence, the the performing ground has player leader, business the been a the we products,

team passionate it’ll have quarters. the patients. last deeply committed growth and about And future that honored over confident few hem We impactful to that’s in continue trajectory on the demonstrated and of play such cancer well we’ve part and dedicated the improving solid I’m very a do in extremely the and lives business, I’m my

So, it delighted a you. choice. is footing. strong and very I’m strong, stepping easy Susan But up back on the really Chad, businesses again, to was an not that

Rachel Vatnsdal

on there comment clinical trials a just reprioritization? maybe And

Nitin Sood

you me MRD want update It a of want dropped. in every that take have a to sort the have of closely don’t lot looks we space A that Chad, our business you or we’ve monitoring do guys they from myeloma. timeline. first? been firm may Yes, comes like and answer give the an multiple to We’ll quarter. pharma you business

We’re much multiple trial in myeloma. every pretty in

hear going some in you. a but it. there’s keep only updates, eye multiple been of portfolio enrollment, as competing myeloma, when pool. not and update the on some we result, a And as lot are a So, we’ll these in but delays same reprioritization And we trials patient for the close has of there

Rachel Vatnsdal

squeeze on more Gross XQ. one the during Great. I quarter, Maybe came margin And best XX% could of versus in just nice luck. a if improvement in margins. at sequentially

through you. the XXXX? of into evolving gross us the walk margin just even And there? and really for what about year you could how us really, should are remind think of increase components Thank then we those drivers? rest And margins the the So,

Harlan Robins

I think has Tycho, we and lost in the room Chad it. that Sharon

we question? Harlan. come can that back So, This to is

I answering think in I’ll for a question. get trouble financial

we’ll let’s Tycho So, question. back wait to that come on for to and return

Karina Calzadilla

Harlan? us hear Can you

Harlan Robins

Karina, back are you on?

Karina Calzadilla

call to back I’m on, again. we’re on. Hold going Yes,

Nitin Sood

you hear question did Karina, the around margin? gross

Karina Calzadilla

we Tycho on. Hold did. is here. Yes, right

Tycho Peterson

Yes.

quarter, have margins, So, Medicine prior within as both Immune it relates they business, at business, MRD to in our and a the the come XXX%. in we milestones gross versus

the saw quarter. call the comments, second out to Conversely, obviously on with had I did first we of milestones significant cost positive we impact So, the revenues. had have Genentech in the lower an a lack impact. prepared the IND that in quarter,

So about X-point an margins. that sequencing drove in improvement

there We’re in efficiencies and continuing the drive to lab. streamline organization the

a We are of midst move. lab the in

that, We’ve talked a back the evaluating implementation. On of we’re doing LIMS NovaSeq. about

we have So, for embedded number of continued the around business. improvement drivers a margin sequencing

a to and in no relates it dynamic, amortization, As the MRD step-down Genentech there was year-over-year milestones.

right in revenue lab. then was the quarter. Again, that this bit a lab the overhead our headquarters of spending higher cost of And moving So, to a we’re headwind now. was due into

cost on but little that, midst the lower on of did in We’re that revenue it weigh to a that’ll backend, lead the bit. so of

again would have once sequential in steps margins, you of I flag fact NovaSeq. evaluating, shift number do Importantly, the we’re a improvement and the potential that to X% we additional know, a just sequencing including

Operator

comes Dan of TD next from Our Cowen. Brennan question

Dan Brennan

get You and we You color of Like the going little a to the more clonoSEQ through headwinds and actions the a there? expect ASPs was walk little what mentioned the Just expectation? talked going ASPs, direction? couple give us a of you’re quarter you should in just forward? about could right impact this bit what taking the

Chad Robins

policy. One three Dan. indications is was Yes, remain of sure, different that quarter out impacted The and ASP growth factors. by

DLBCL an example. at as and MCL looking So

The testing third, we that certain to on just in And items. place of then for mix. increased plan patients an was acceleration that’s our prior And couple should ASP payers. authorization XX% of hurdles second focused Medicaid with product I different a say have

authorizations is the for closing improve second payer our policy is increasing to remaining claim and and our management contracts resources the first prior The collections. gaps and

the we increase the as reverse the of kind onward to a the So, kind there. by some acceleration versus in and to point an of a do year. confident year-over-year expect ASP XXXX solid this committed are of with trend half reaching $X,XXX we price first the are of tackle leakage, And in we half ASP second to get

Dan Brennan

maybe then to Rachel’s on one And back question biopharma. just

How So, a up the like about do growth kind you of patients? on rest pressures we of of the maybe some persists about like type do side the availability where the broadly, trajectory, growth on spending of of are just for we of temporary side, more the R&D the of you immunoSEQ think MRD in then does guidance. But QX, I kind give pick don’t on biopharma lot know evolution -- and year? or sub-component details the think in both of and hopefully

Tycho Peterson

Yes.

higher minute, of half. mind to in are quarter saw It’ll year. had couple this at other it dynamics. rate more question third being MRD grow then we fourth $XX pharma loaded QX million. year, about we we year, keep in in moving bit we was had but And in of the Genentech it and than quarter a So, expecting total talk about we the your answer higher big amortization a last a a the in Medicine did fourth a XX% Keep skewed Immune quarter. first in mind, backend toward quarter. the a I’ll be revenues year last in in There’s

expected of tough that then in by both to we’ve bit a the discussion deals new in pharma fourth little are services quarter. a in growth there’s got that come discovery So drug issue. And and comp are

a portfolio. pharma to specifically, we’ve relates diversified it got very services As

large in mix of XX pharma a involved different development. cap in mid and of companies. It’s active stages trials, XXX We’re

my you because over not five out, XX% we sure business if the I’m CAGR know the cut line to comment committing in So, and earlier, I the heard but years. are next that for

So long-term year. also growth off we’re It’s the had that confident last outlook. comp very significant business in tough coming a

five do given XX% see we acknowledging comfortable services portfolio, diversified we’re reprioritization But can pharma to are pipelines. business the continue of we that grow next of So, years. that over that the north some overall

Operator

Sandler. David from comes question of Westenberg next Our Piper

David Westenberg

talk So momentum I mean, that in higher you the tend off of kind did going Can how grow caught so little about guard business, ASPs dive I just more over have little want you in faster? was a and a indications to in me on penetrated bit marketing? the those indications? uncovered kind good bit here. growth Because in a to lot more of of terms -- there an there here. or you’re just under-penetration of Was maybe pretty

Chad Robins

lower Let’s somewhat take base. DLBCL from quarter-over-quarter, XX% albeit DLBCL, grew

different indication, the is Medicare for collecting very related for plans is new we’ve of tends to factor the -- So, ASPs, bodes well as that payers private the work covered from it’s increases collections. plan going another indications of as our in advantage future you targeted and gaps. challenge be it it’s a and but but you a industry policy variety a And got yet, grow Medicare Medicare One indications that while new been aren’t drag an also advantage on to that -- is to -- close to pay a for area, factors. we industry has it at tend on and those kind rate

got very we’ve acceleration net-net ASP So, a plan targeted place. in

to actually of It’s the We of expect X,XXX reverse half be that but to to line already kind top able reverse it the in second only to forward expected XXXX. third starting you reverse that. achieve year, to not quarter, going by

David Westenberg

It’s your be a that getting Medicare. it’s the from just order outside you Medicare on based as potential ran covered just the of seeing Are to same Medicare? headwind believe test in that? way future? that any basis. there maybe is I tests then, in most first indication four And patients private Can And coverage, of by taste a clarify, not the payer then headwind

going one so, in. I’m squeeze more And to

sequential You in I when to don’t should tracking -- quarter-on-quarter QX-ish. is that sequential know, sequential do ASPs improvement seem mean -- returning I as a be to improvement implying next see, like we see or year-on-year maybe we improvement. sequential on year we maybe

there. Sorry, I’m kind of rambling

So, I’ll stop.

Chad Robins

No, Back tracking David. I’ve Dangerfield like to School, got I I Rodney think but it’s I’m -- in think you,

like Medicare. for So episode test yes, answer it test of is not basis is One on It’s care on that’s the payers, by an our couple things. a basis, is, private confirmed. of

The our third ASP that, the expect large we a accelerate year. We half multiple payers third, myeloma for at do targeted is and are question ASP do diffuse plan It driver. was expanding But to if have with other in acceleration regards growth indications look then, you different of to will B-cell biggest indications, under policy. private well. ASPs this as with acceleration. I the of for second in to just And CLL coverage lymphoma continues say and be we indications kind

So, resources those reiterate lead along if factors, workflow and you necessary. into kind prior acceleration combine to additional that’s with, going to where of enough again, we’re authorizations ASP all and that putting what’s getting can’t collections I

David Westenberg

in squeezing third. a I’m Sorry,

you quick. So pretty answered

biotech the Immune just are you quickly. funding, answer or could on you hopefully both? quick Just MRD seeing And or that in Medicine that

that for question. third everybody Sorry

Chad Robins

both little reprioritization. seeing We’re budget a bit that as in

positions. strong pipelines market in However, both have leading and place

different -- impact case see we for we reasons of budget So reprioritization in pharma in the business. MRD the but some do

patients competition with do in also it for myeloma trials as of to kind multi of has well. clinical Some

Operator

Thank you.

move next question. on hold. will We Please to our

from BTIG. Massaro comes question of Mark Our next

Mark Massaro

best good you the taking it And luck of look Susan, forward call, It’s was follow questions. tough to -- I with for a and Rodney more. say working Nitin, some Dangerfield forward. and Thanks to on you with going I working to wanted but

more a side. So, little ASP we got questions, some -- little the a bit on investor

is I to for maintain which see. volume heard great Tycho, clonoSEQ So, XX% the guidance you plus,

in talked up I think to you had previously about grow the range. guys mid-single-digit wanting clonoSEQ ASPs

pressures Although out. today that out called the three you called guys some -- of you

on growth make progress called drift might think or just of of that that those still So in you ASPs kind I’m out? do initiatives on target, if you curious, into as mid-single-digit XXXX some is you

Tycho Peterson

way, first improvement both first quarter Medicare in mean, by we're the the our half. expecting the of here, definitely -- an test in half XX% in We year mix. I overall, noise versus of the back had around Medicaid is second and particular, the Yes. Advantage

then of So Chad the and -- out policy. about growth indications talked and

over the But quarter say going update. don't We're necessarily ASPs thinking to terms And yes, about certainly the we dealing the lot leakage. the by we've It's to half. a full ASP time. I the to for that I'd to of last over too. I better third of be with months to steps update Again, first to mean, $X,XXX an the are year, are how few our taken half expect tuned. back way. I noise know still of the stay lot on mean a than in but we this industry-wide [indiscernible] tackle competitors we're problem, expecting get want we do

So quarter comfortable a but the long-term through noise, it TBD, very or of this takes for of we're work whether ASPs rest overall. in outlook two to kind the

Mark Massaro

as well Yes. pressures. these with that list And to CareDx of labs add dealing

Okay.

guys I you I was the what ballpark? can million $X somewhere range. guess, payment right in Is it's out quarter? million in that the $X to think So, the the milestone call

Tycho Peterson

but And Genentech It's for we amortize That of it. So, was right? the milestone, the a MRD. Dave, $XX yes, million was there was X.X. nothing rest acceptance, IND there

Mark Massaro

clarify. to clonoSEQ, for last kind don't then And I just rate that. one, of like change any nothing reimbursement think just to there's Obviously,

prior progress auth, think a but guys remain on investors there, will mix of out? the think super it's guys you I do like you I DLBCL. early, I DLBCL can of how payer? progress are are further think any commercial function XX% that you on making think more quickly you you one of think mix? of And you guess, again would do be Medicaid then, where around And then make guys or transitory, clarity or this is is on Medicaid going it's know prior higher to is some mix, I auth just do you do the of side? largely a think things love

Chad Robins

Yes.

converting the to volume of that authorization. at address we've get prior billing a in of Medicaid we're implementing putting of roster to close So some made With gap. prior that accounts kind ordering of that and to started authorizations, of [Technical Medicaid, in just high respect already accounts some workflow high looking terms have the to to that Difficulty] place patients

quarters isn't happening a is This several this now. out. So,

And in Medicare then started private Medicare covering third, terms front of as payers and already make to we've well. on rates, Advantage the progress that at

last we a about Your question be private additional to we for and and which XXXX. under data indications. ASH, XX that in frankly, covered million about we is job The done payer current in readouts XXX should other catalyst think good increase lives DLBCL in We've respect have it look with lives a coverage million XXXX. contracts significantly DLBCL, into have on now to we CLL. We're contract. coming under rate

Operator

Our from Richard Sachs. Goldman of next question comes Salveen

Elizabeth Webster

of end on the This from in year is of it collaboration, you. we impact expect a be personalized about update driver. through then integration Epic and just Elizabeth on this growth an the on could cadence on next would for of the like into Salveen. when products. Thank it what seems the going expect I the wanted MRD terms Genentech significant could and And to of ask forward that you as the impact

Chad Robins

Thanks, Elizabeth. Yes, sure.

Epic first customers. that couple of thrilled we're integration different a with month the yes, this starting First, we're

the into successful I to incredibly launches, Epic work Epic first what think, site. The demonstrate integrate is hard

we're go. to And so, ready

gain are testing with substantial to to received EMR sites additional and integrate their eager interest clonoSEQ have We access from system. that

of is resources each by the Rollout really different availability at gated center. the IT

by is have what month interest much we kind be site. reality kind really hand-to-hand penetration deem we with there's the But quarter combat Epic. them and each by we'll as of it So, within ton rolling is of until possible of on full a month, quarter as a as

here you. couple Just of a numbers for

other think are in had all required for required of clonoSEQ FMI Exact, precision medicine also their that as adopted sites a it's integration. tests or that's the add-on partnered et network, there U.S. as with June, the cetera. for Epic Epic which is are XXX And diagnostic I such that

adopt to to us that number of continue of In list It kind will also take grow. years that few the a meantime, through the integrations. of will sites get or

So, back we kind the have we of we half which also And the that -- XXXX, in over our volume of really contributions about this expect of we will being about in talked will terms over although year, some talked grow that to we impact see volume growth. really expect achieve coming time. in XX% this

Elizabeth Webster

Got it. That's helpful. time on update on product. And for then personalized an the the lines just

Chad Robins

Sharon, one? can you take that

Sharon Benzeno

for Absolutely. the Hi Elizabeth. Thanks question.

for of on end clearance, to ability grade that leveraging what So the our course we're the IND T-cell capabilities And of the validates of for built this first clinical product. therapeutic FDA course, obviously, first heels receptors that also fully identify is the the personalized. is to

continuing with to but to we in parameters. of an number we to expectations the is reliable to terms we're an of really really the each prototype can for whom understanding tumor hand-in-hand reproducible, terms Genentech can develop total identify that Number each ability of mutation, In of And specific lines, certainly, unique end-to-end process TCRs time place. to that one having the patient's time specific and allows we're us more establish lines, patient. then receptors T-cell to we're not number update, understand a the position patients putting from ultimately to really multiple in across identify the a in standardize disclose

come that. So, board more across to on the

process that one cancer York. that example patient the the that say earlier has just And sharing was great for some of design including data, earlier in this started a we end-to-end, lung the will one of year year study in in updates, where of proof-of-concept presented I this New also patient Genentech worked. terms a conference

more look reads And forward with so, Genentech. to our out partner, we'll sharing data information as obviously more

Operator

Savant Our MS. comes of from next question Tejas

Yuko Oku

questions. call This Thank the you taking our on is Yuko Tejas. for for

milestone of additional to acceptance we a $X.X clinic, IND would first IND similar the be into bigger advance next speak amount candidates million, the the that milestone could than from upon that events milestone? the additional a of recognition or milestone, of quarter, the that follows? IND could you trigger the approximately Following acceptance should this of the candidates Genentech And expect to you acceptance candidates for recognize

Sharon Benzeno

Thanks question. for the

the deals, but the they of progress is And of of course, typical disclosed given these candidate haven't types We in economics. the stack. the across as IND quantum more of milestones, a higher licensing development

are by fully do first So, we product ultimately as have we're clearance. that as personalized certainly program. And this advanced other mentioned, our well IND was as excited, TCRs being

Yuko Oku

provide where use update on regulatory approval and regarding conversion the then MRD you to of view? that that influences as recent endpoint stands BLINCYTO the a more of how evolving And status and landscape in full an today Could towards the trials. you move see clinical

Chad Robins

Yes. Hey Yuko.

the in right is points direction. a It's generated frame metrics FDA we So, prescriptive agency that our to as are secondary the endpoint are clinical in data but act pharma endpoint, progress put to We the going endpoint. time in trials be moving giving to continue do from on really be about making to that pointing as when an we an should pressure use particularly that to along believe of primary converted be to continue as partners on to direction in to this soon. hard the the MRD with surrogate for the it,

question, again? second the So,

Yuko Oku

approval Just wondering seen that? more BLINCYTO approval an -- the of following full or accelerated recent traction on endpoints that influences few primary years that any ago, had view you approval the if have if a the

Chad Robins

think does it indication. so primarily vary on Glen by multi now ALL, myeloma. Yes. and I We're I focused mean,

that's, the us, catalyst. to biggest think I

our where at look milestones you are. If

as of full across clearly, that study that helpful to Genentech indications. There includes it's that MRD. use CLL think approvals their have MRD in I is well trials a kind with

pointing multiple So pressures incorporation endpoint as indications an are agency. in by from the the multiple towards different of MRD yes, a lot directions of

Tycho Peterson

just in a add, million And in sorry, you've forward the of But $XXX endpoint, the we've that's heard to about that. what FDA got we've talk profitability. of and -- us primary terms endorse relative sight then previously line of $XXX if of does Yuko, to of of million MRD sight eligible I'll about past, about to move milestones kind line path upside as in talked

guidance at in not point. the that's So, baked this

Operator

Suisse. Credit of Leonard Dan from comes question next Our

Dan Leonard

I'm you community us could Epic. about if to integrate talked your with EMRs. on clonoSEQ wondering update You efforts

Chad Robins

Yes.

obviously, in -- the of isn't choice Epic the community. we So, EMR

as systems evaluating easier get for we're the to order system. look going biggest into essentially the and are to to where integrate We figure just out test buck colloquially EMR bang the our we make to

it's radar certainly the under evaluation. So and on

Dan Leonard

And the speak in macro to then follow-up. Can drug are fourth reprioritization more my you expectation factors the given for your you quarter? And discovery you confident flagged? how that deals and

Chad Robins

the start that pass color. then for I'll Sure. team it off Yes. maybe with to additional and

are fourth our the for discovery should be platforms the They're based in they data incorporated They've the First, advancing. antibody developed TCR we've wouldn't underway. And here. already be into quarter we've deals in noted Otherwise, the we it discussions that that and have discovery. existing well are that the that on been in drug discovery numbers developed and progress. annual

to choose to or that? well. that did in-house, can We development Okay, develop targets And really I then a discovery programs and we platform our underway have future add as secondly, of want combining initiatives anything you will series either on great. deals to essentially with exciting, capabilities. partner on Tycho, target are think those those lead

Operator

Our of next Bruin question of de Bank comes Derik from America.

Derik de Bruin

Just are think reasonable growth at that that things given of the now, some ERP are that a year-over-year growing integrations Is to clonoSEQ. this that comfortable to number just and you Right Is volume -- in looking consensus, XXXX visible I going year on? Street going with XX% do level? alpha growth. mean, growth looking is for about the impressive that in the at you're -- XX%

Chad Robins

Derik, out put XXXX. we for haven't yet guidance

we are However, growth. the future. into that strong trajectory well think to clonoSEQ a say significant will there's I volumes committed We in continue double-digit can

but to would off -- more had with -- it's I you go get back to specifics we'll not with unreasonable, I come our if we guidance. So, as out

Derik de Bruin

the Got other or just autoimmune AI for bit stuff? milestones your about being interesting we it. you about of should autoimmunity little And more program? than of sort talk think lot since catalysts can some that a upcoming How a

Sharon Benzeno

Sharon. It's Hi. Absolutely.

focus novel and this at So, multiple our in autoimmunity, one target in our discover R&D indication, least including specifically we've our and IBD. indicated, year sclerosis focus one is is as in to in goal

are making excited. And and quite progress so we're great

here a large Some that at are that in patient implicated we're of targets looking the is population. ramifications

machine our to we're existing partner, including, data generating identification leveraging capabilities, of is target the some AI then, Microsoft. with learning And our course, absolutely accelerate and of

we're indications MS discovery around autoimmune and bullish So, come. around novel discovery the we're really the that to of target other foundations extremely building engine and

Operator

I'm showing Thank participating. you. concludes today's this no further time. This questions at conference Thank for call. you

now You disconnect. may

Adaptive Biotechnologies (ADPT) 2 Aug 232023 Q2 Earnings call transcript