ADPT - Earnings call transcript Q4 2024 | Adaptive Biotechnologies Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Adaptive Biotechnologies Fourth Quarter and Full Year 2024 Financial Results 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, Vice President of Investor Relations and FP&A. Please go ahead.

Karina Calzadilla

good and Didi, you, afternoon, everyone. Thank like Quarter and would to Conference welcome Fourth Biotechnologies Adaptive to Full you Call. I Year Earnings XXX results issued reporting and Earlier press year for financial full we quarter the XXXX. today, of fourth a adaptive release available press www.adaptivebiotech.com. The at is release

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

federal statements call, laws management projections within today. reflect statements will events of the of the regarding securities forward-looking business perspective the and of of the future During the performance and meaning management's make financial current as other These future company.

today's listed results public in on statements, our depending of in with set Actual from a SEC the this forth differ filings may presentation. and forward-looking factors, materially number which are

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

our our the CEO Joining Chad and Financial Chief Kyle call confounder; of Officer. today are Robins, Piskel,

members will I'll management for to over available team Robins. Chad be the the call that, turn With Q&A. Additional of Chad?

Chad Robins

Good you afternoon, and call. us joining our quarter Karina. and year earnings for fourth full Thanks, on thank

long-term XXXX in strong the X, XXXX, year, which In occurred Slide profile year on believe wins both the a growth clinical drive and of by driven highlighted As Revenue increased key X pharma. execution catalysts major of fronts. all MRD versus on was MRD, XX% testing business. will and we

significant a in indication. of our in heme support progress lead nominated multi-myeloma development made previous And the gap MRD favor $XXX clinical our per test $X,XXX, as in In immune therapies about of endpoint primary of obtained rate. of higher a clonoSEQ approval medicine, second, new our than programs a accelerated which recently First, autoimmune rate fill paradigm vote we using our for shift we ODAC test and represents cancer drugs. the is to implied

focusing in with top now completed the In burn million. year position reduction an concluding robust therapeutic of our candidate driving are MRD a yielded initiatives growth restructuring We XX% of IM we line a antibody advancing indication. the XXXX lead with from on in cash this cash and development $XXX and preclinical conjunction programs,

closer grew the Slide business starting XX% a at take clinical MRD on clonoSEQ and with revenue year. outlook, prior Let's Full look performance versus testing year X. clinical

a Meaningful As increase a in shown delivered volumes representing reimbursed in growth to the quarter, the versus record-high increase chart, percentage observed with XX,XXX XX% quarter-over-quarter was in sequentially. continued X% fourth increase year and all increase a prior tests indications.

CLL volume X% myeloma by XX% XX%, Multi and ALL followed at clonoSEQ at contributed of MCL at XX%, at QX, U.S. X%. in DBCL

of versus time the see year providers delivered testing in care MRD it's of Blood-based XX% same XX% and X,XXX. the tests United key about MRD XX% grew in encouraging ago. indicators positive the some Tests at grew ordering to the community grew tests Looking trends represented in contributed the health the XX% quarter, and over a of States. XX%

have in announced about with to XXXX. integration NeoGenomics of ordering our completed accounts, including XX% commercial metapathology and together accounts, cross-promote quarter, during X Epic in Compass completed of Chart accounts along January, largest represented our with exclusive now our which successfully We we the services. In volume in we partnerships Neo's strategic XX several integrations have an clonoSEQ

collaboration the this expect to and this in our community presence We in expand growth fuel segment. our

of United expand and the at a of an revenue in average Medicare execution fueled clinical the was growth X% the represents per contributions increase X% also States, year ASP ended X. an covered delivered test We XXXX. throughout improve in from volume, fiscal increase $XX.XX by the XX% not coverage. shown the from of We proportion on was various by to reduced clonoSEQ due ASP to ongoing as versus addition the In Slide year. initiatives which to This for collections increase tests to year indications

authorization York the we at from beginning XX% new coverage under key initiated our And the Medicaid code rate improved to Blue the transition establish at Texas in our We states Shield end. MCL structure. California. to the at of first XX% payers Cross several Blue new Cross for the with previously Gap Medicare agreements XXXX of and payers Blue of prior Independence completed obtained and the fill We our uncontracted coverage success including large which New episode the and PLA rate

which, will We an confidence bill efforts per reach $X,XXX fiscal rate, that ASP year average around we of new GAAP the with us on can continue combined XXXX. to drive test for these give

on at Looking X. MRD Pharma Slide

Pharma MRD growth $XX.X with included which XXXX, regulatory a million revenue. Our XX% versus business strong year had revenue of milestone in

year pharma in backlog addition, which XX% $XXX is million, over with milestones, a revenue XX%, of healthy increase XXXX. the Excluding sequencing over we ended about grew

acceptance as seeing incorporate other We're in [indiscernible] We've partners in increasingly vote both impact MRD X multi new momentum of endpoint were XX from CLL studies primary clonoSEQ lymphoma. diffuse using and positive states endpoint, myeloma ODAC a the primary post significant a myeloma XX a for our experienced now MRD XX disease that which continued April. and large primary studies have secondary as XXXX, closed We've closed of including to following upgraded post as in B-cell ODAC. to seek ODAC. We the

highlight utility MRD a as And there's a pharma success relevance continued testing of achieved XXXX, for the businesses MRD priorities great starting in the clinical adoption sets halo its in in and measure as clinic stage treatment effect summary, clinical which we key we believe on in key and In of and both to are our response. execution pharma the companies XXXX. the

community of integration to in strategic total a more MRD community including X, As growing greater our growth in our Slide in volume further year-end. and with in priorities, Flatiron key XX% Integrating drive presence focus integrated by EMR by volume blood-based continuing more blood. the that accounts XXXX the we few testing data intend the shown by to on by to than or line XX% top our expanding by on and Epic midyear of test additional so ACO generating is launching contribute

overhead. last the year's labor direct include: from initiatives volume growth line ODAC per lab supporting and to Third, endpoint reducing increasing increasing primary by the stable earlier cost Bottom new per year ASP pharma momentum across fourth, on the to number average studies further sample indications of with test $X,XXX and in of recommendation. based an initiatives for and mentioned continuing leverage studies personnel the

Execution of these Completing the NovaSeq achieve and priorities half EBITDA positive to similar second the second becoming enable primary us year; strong transition as for X long-term will of finally, adjusted to the maintaining levels the while goal MRD year, in a in maintaining the half the spend our in XXXX. this year operating of profile.

medicine Now let's turn on immune Slide XX. to

medicine on immune-based therapeutic immune focused differentiated strategies. Our X business

the first in our with different deliver highly our And Genentech, where goal precision with is based is to in tumors. solid cell immunology The partner, on effective therapies the cancer patients TCR-based approach. second treat autoimmunity is to

receptors are develop and cell antibodies Our to T disease. is causing the discover that or that goal autoreactive block deplete

In Slide of turnaround product enhance focus our cost. the XX, we shown oncology, improving is our XXXX, time by profile progress therapeutic reducing made As on therapy cell strategies. in to both significant and in

As progress with assay our in TCR such, binding Silico discovery in we've or replacing antigen a made model. cellular TCR digital

and prediction this cell antigen model. disease cell that type model should in We're therapy. data foundation In reactive X making This us digital allow patients cancer likely causing and other we've the indications. additional training successfully good subset TCR with identified TCR-based pursue auto for progress Genentech beyond with multiple of offender in high-value digital autoimmunity, generating diabetes are several for or to T autoimmune a receptors the therapy a necessary provide applications cell sclerosis,

We indication. focusing completed Based targets a are of preclinical and and number candidates recently indications. antibody selected immunization and of the successfully to first also in a we data a indication we of antibodies lead mouse this prioritized these functionally on various on disease-causing and therapeutic subset nominated antibody tested collected, development campaigns

in X priorities the highlighted business As on strategic medicine has Slide immune XX, XXXX. clear

our to the The therapy Genentech partner first to and products. development is of cell support continue

for is million. burn we third generate to preclinical antibody differentiated these robust execute targeted are autoimmune the of second The $XX package program cash strategies data our going on million a in a to and to our indication lead with $XX

our R&D We this pharma business the gating by will offset leveraging to revenue IM and investments spend. achieve our

going I'm over and it guidance. going to to full walk the to Now Kyle, Kyle? year results pass financial XXXX who's through

Kyle Piskel

from XX% Total revenue on to pharma Slide contribution MRD quarter XX year. a EMEA and from fourth period from XX% and $XX.X with grew Starting XX% fourth growth same the revenue year million, Chad. from X% for $XX.X XX% million, quarter the last with was representing in year. revenue Thanks, and medicine, the clinical ago, up respectively. with MRD full XX%, and of

amortization tests a volume lower $X.X XX% million, period test last as was in XX% decreased $XX.X lower drug of as ClonoSEQ the increase tests XX,XXX around medicine Genentech XX% and in efforts. delivered from revenue from million from Immune by XX,XXX ago, year. and revenue which year representing was XX% recognized increased same XXXX year-over-year. milestone year. focus driven Full a million, was expected to revenue year MRD down pharma $XXX the with X% academic up services centered million, discovery has revenue IM year $XXX.X ago, a

MRD was versus revenue milestones, Excluding medicine Immune XX% $XX.X XXXX. revenue grew million.

for was quarter. points versus to This and which the X margin XX% increase P&L. year gross Full XX% sequencing excludes year sequentially. percentage amortization, Genentech down margin, XX fourth Sequencing percentage represents the compared prior in gross XX% milestones Moving was an and XXXX. points of

leverage, revenue in costs lower XXXX. Total from contributed sample improvements. and decrease from cost efficiencies which represents million, $XX.X these charge labor excluding spend year, last direct impairment the the inclusive of cost operating an was QX overhead to quarter, combined which the lab XX% from of production per Lower for

with more the be from impairment XX% biggest again targeted million, was excluding driven on restructuring by the decline, focus year's spend, decrease Full investments down asset in [indiscernible] charge. onetime leverage XXXX, functions contributor charges, excluding operating our $XXX.X mainly continues year R&D and driving once given impairment This the asset of to prior across being

of million compared million $XX.X a $XXX.X QX in loss in year in was Total of million million QX EBITDA $XX.X loss Adjusted XXXX. to for full company the XXXX. EBITDA was versus adjusted $XX.X

reduced lower the revenue see operating full primarily XX% As expense. the higher by at been last table of you segment the slide, from MRD has adjusted the driven in by year, and can XXXX reporting loss EBITDA bottom versus XXXX year

$XX.X with royalty full million, our $XX.X in XXXX million EBITDA year to million Interest due for $X.X from financing million year. million fourth year $XX.X for EMEA income and interest $XX was in expense Primarily offset agreement Ormat by the fiscal revenue increased of a partially which the for quarter to XXXX. loss Medicine of noncash was $XX.X from expense. full adjusted in the versus operating offset quarter by fourth Genentech lower the reduction for million and XX% $X million

the for Net year loss the million, full for loss was quarter net and $XX.X was $XXX.X.

operating marketable line and As cash securities. year spending, we $XXX and cash, improving performance, equivalents a result of with ended the strong million top in focused efficiencies

let's XX. guidance year Slide full Now our turn on to XXXX

full between year to and be $XXX MRD million business million. expect for We the revenue $XXX

includes excluding the of new to biopharma Guidance from the depending regulatory conservative broader million, milestones. navigate XXXX upside could milestones we industry. represents as of midpoint, MRD through monitor growth $X growth MRD million which $X this services and have on guidance XX% administration growth versus At decision-making. includes impacts also XX% pharma It and

Of to that revenue trends clinical IM from and revenue are between XX-XX ASP to offset throughout our medicine drug our compound. to collaborations will first used and second we half, as given MRD respect volumes growth efforts immune With be R&D expect the pharma focused be on respectively, investments. to year, revenue the weighted discovery, in note, continue

around amortization from anticipate in Genentech We million the $XX collaboration.

higher between be as expenses, in million. We we similar operating our cost to and spend continue year XXXX infrastructure volumes. while This operating full $XXX our levels operational commercial of of million and as expect to $XXX leverage supporting including revenue reflects

The total immune XX% costs. this by a be Maintaining about position and from continues medicine. strong expect key corporate come cash we be XX% a will priority. the to business Of to spend, from unallocated MRD remainder driven

cash $XX total XX% burn to range be our million, and year between the midpoint We prior an expect for million representing reduction annual versus of the at of $XX year. the about

business MRD the due consistent Of XX% note, payout The and this of will from due remaining be XXXX. come to approximately annual to first corporate results to burn strong the anticipate with XX% cash I primarily year corporate We from by the unallocated mean is costs. utilization am quarter in our years, the costs. the our highest encouraged quarter past medicine. of

our growing managing revenue, to strong and continue our I'll a Chad. With operating our back on position execute goals. are it capital to expenses We to and feel have that, over growth hand

Chad Robins

efforts, goal enormous year and drug our was are a and we are advancing potential. in growth In on enhanced margin are could and XXXX of this later an looking on to executing are future forward success Kyle. Thanks, strategy, execution, MRD, pivotal the XXXX. year we immune we an have In reaching medicine, with our we our profitability discovery confident profile. we in which building believe

cash goals and enables now strong we've the market over the drive you. to momentum call turn questions. businesses, the that a and it for the got open to both XXXX up beyond. I'd the position have achieve we operator in Thank importantly, us position back in success and our like to people, And to

Operator

from of Blair. Brackmann William [Operator Andrew our question first Instructions] And comes

Andrew Brackmann

levers this Maybe assumptions be could lever the for the pretty into ask on seems here if us of And could some the that guide bit there, bit that what's sort to one. pricing, ASP for a I MRD upside maybe a a year a than on lot think this business. included unpack you what assumed just you I the could that drive Can little if just about year. Obviously, just $X,XXX What's for not But underlying potential of something there? big included? maybe higher start as more, goes

Chad Robins

have that. I'll you Kyle, answered Andrew. Sure,

Kyle Piskel

important Yes. Andrew, to align drivers. on things the X probably ASP

last fill Medicare XXXX, is first full in The for of line our of partially from only the the the business reflected was the year. quarter year rate impact that gap in

we're So place. in the see going that being year full to impact of

kind the is Second we're and to contract able remaining well most probably larger payers as recontract open have. of contracted as which important existing with pacing we the at payers that with

The third available, appeals think pricing the meaningful with win in point. cycle management. is at extent, us has appeals only some revenue this to gapfill but a some not opportunity To being we helping higher component price win to

Medicare the to we'll some a Medicaid. which though mixes our they in gain reimbursement a So meaningful a that, environment traction we think, payer. mix with and reference only can gap bit start historically a from available, And has can fill the organically as is drive Not volume some of we business, to rate that meaningful improvements. see payer, been the away line lower even having community, traditionally lower last are

I'd are So things main those kind focus on the of for. X

Andrew Brackmann

margin talk EBITDA of big us follow-up to perfect. here. adjusted for positivity of I of here. That's for Can to if MRD about And NovaSeq transition, derisked relates my done year? for sort you needs the then X pretty get terms sort then And a it of fully and sort the of Obviously, year order catalyst to throughout the sort sort be could to just the to to in business this progression get milestones at of pacing specifically, as what that of point? in that

Kyle Piskel

Yes.

pacing, we the XX% margin profile. on the QX about On at sequencing exited

mix contribution probably in. of on be fair number I probably a for the year, ballpark to from the half depending the right the that's but think first that's pharma

between the I percentage the think and months. of the second NovaSeq over said X XX lift we've points there year, in half X X historically

improving an margin to So drive the improving addition profile. ASP an you'll start from to that profile margin profile in see revenue

margin that's and front, percentage the points NovaSeq profile. fairly XX achieve adjusted we ability the as to our to in longer-term driving But that, frame, about relates driving outlined. with the see on time profitability the really it it's we've initiatives the on So confident this we're

Chad Robins

the EBITDA I'll second Yes, positivity taken Yes. achieve together, just together, all in ability XXXX. in take confident Andrew, to we're our of it half certainly all we're

Operator

Our Rachel of next question JPMorgan. from comes Vatnsdal

Rachel Vatnsdal Olson

Perfect.

the from that And trend contributions in of signed. us up currently contemplated see to here, great partnership? guidance on terms that partnership, throughout you just what's should first year? we the NeoGenomics how walk see that in So Can through

Chad Robins

to you take Susan, want that?

Sharon Benzeno

the for Rachel. question, Thanks Sure.

working to So months us the around the that implement to and take tests team, the it's X delivering earnest customer to in NeoGames we partnership, and going the we've expect operations work already NeoGenomics with design experience and backroom channels. begun that for will facilitate through closely supporting clinic

accounts cross of start of second the Our group goal half pilot an the initial this to is with year. in promotion

on to implement are And sure time mechanics feedback, in make a we're allow take and to to really all collect ramp slow customer planning that order.

could well, lab-to-lab with partnerships. experience companies so have Both we And go faster.

And we rushing to implement intentional the jointly will have the we that we so success. -- ensure lead longer-term here, we're we're that know practices to not best opportunity all

doesn't guide from NeoGenomics and in so as the and result, come And that through. expect a incorporate volume really we it's all to this XXXX year see that XXXX really any material

Kyle Piskel

in help kind us. additional that's If of be to uptake that's And earlier, prudent our outlook. us news for great there's

Rachel Vatnsdal Olson

Perfect. the just in follow-up, MRD guidance. terms And then on of my just

I heard on in say ramp year? half, terms basis. hockey think half similar we growth? assume a of your terms a Should walk throughout of stick between and first volume more us a I the second you the it's more assumptions volume progression of weighting feeding the or revenue But through XX-XX in linear the

Kyle Piskel

Yes.

us EPIC and we're uptake it it about of Flatiron, the as watch of back might relates I which catalyst the our launch it the Flatiron impact Epic profound the upside I more is with both to while linear the kind drive thinking could and integrations have of thinking to a range. linearly the about but right. half from probably say the guidance, think would year, continued from we

Operator

BTIG. Massaro comes question of next from Our Mark

Mark Massaro

see in great the to Yes, XXXX. progress it's

And Neo I you question so that my are the any not uptake partnership with in first recognize contemplating is, 'XX. material

not do size cover the familiar However, many we're offerings. with and the of chart of and us super NeoGenomics, Compass

you 'XX how rate could So is offering? just of give can we and What opportunity of clonoSEQ about as of think and that quantitative you as part have about a a Compass sense significant an us do think type attachment qualitative, maybe chart 'XX. product

Sharon Benzeno

to to leave The saying at to [indiscernible] for the win-win on products on their to Adaptive. is mid- the Compass for potentially estimated first to think the company could to this say over Chart by offer current volumes, the Mark. I'll that we as view that's NeoGenomics upside it our to supposed looking time. into think I it of ClonoSEQ start mid a want sort Thanks both question, Yes. going I a single that volumes. and to both products, impact we're And but high comment business, material that to we'll have digits collaboration

deal with opportunity deal is X-year to The a extend. the

start to you'll And see more through later that of in years. so again, come the

Mark Massaro

that might opportunity $XXX that, Medicare to commercial a that then the price can with for some think it. is on of Got rate? higher kind Do higher recognize Okay. an a and And side. commercial health having to follow-up, you negotiate payers speak you the XX you as you're back who any plans to success go in

Chad Robins

and under with will seen mentioned we of ASPs drive components late-stage the that of some poor our drive year. PLA extremely has at discussions for or believe Yes. But nice higher a of the absolutely code We've that helpful. that Kyle that the rate. place Absolutely. one been components certainly recontracting this contracting -- that having will uncontracted are already one payers new in ASPs we're commercial with several existing conversion payers, the

Mark Massaro

Okay. Great. Congrats on the quarter.

Operator

from Sung question comes Ji of next Nam Scotiabank. Our

Sung Ji Nam

mantle your of remind lymphoma. Medicare you recent reimbursement terms the from MRD, cell Could pipeline for us in

months? of Just over to of next are that the us what's could in kind some look we what of again XX of pipeline, indications to remind kind the next kind forward the XX

Sharon Benzeno

Sure.

with unmet that I So indication, a to for yes, enthusiasm we around in our most indication high a as recently launched promotion seeing we're ASH want you we some mid-QX. significant just noted, that's note nice XXXX, And negative of the [indiscernible] and -- had whether there's demonstrated which transplant sensitivity that, is an already launch coincide the commercial Medicare-covered really to into cell with clonoSEQ on to data at decision lymphoma. patients which ability the need natural inform our or the not

So data the great. clinical of which actionability out of right gate, kind is

efforts submission which syndrome. and additional sensory coverage of to see Going reimbursement. advanced ALL we're also actually forward, CTCL, from of which indications we is recently we which as going next active in to updated in to our get known well. We're of the for for we are from approval for recently in T-cell T and application MolDx in cutaneous potential York T in anticipating We're stages also data T-cell launched exploring lymphoma, additional clip utilizing cell that the which received cell clinic validation QX assay, as New

I with an on sales in the recurrence want which mantle mention to do front, we're work from our monitoring. like to additional to reimbursement is done not that continue framework also the entirely we'd that seek sense Moldex

current episode over coverage to points, therapy and with addition to getting coverage time topic active under well, and for our in reimbursement as on discussions in will Moldex time. we're testing we'll off us allow look get with that patients that for for incremental structure, So

Sung Ji Nam

NCCN for positive the PET guidelines on just then lymphoma, Great. therapy. the updated DLBCL specifically And B-cell guidelines, recent curious first-line following

be whether in is this the might I'm whether there that guidelines inclusion guidelines. is a indication, the for the for adaptive in that I guys curious first pretty, ctDNA opportunities realizing very specific but NCCN Just in you significant think,

so of positioning And your that. what curious for just of kind here kind is

Karina Calzadilla

testing MRD companies of is forward do the submit to access like as right The large for for NCCN with strategy, companies, positive a line B Absolutely. seeing space. and MRD for for general our periodically guidelines inclusion we to step in in providing and is most in cell other then patients the and space proposals [indiscernible]

still get as relatively Level and was see MRD to although narrow there's more this into in X work a it scope. a step, as to so And the recommendation great guidelines is do first a

expansion data those particular ongoing continuing an generate data expect. not to or consistent about that we performance specified and of been the in that mention generally the basis, meantime, they and submit support NCCN in guidelines, And classes anticipate has to they'll assays NCCN to guidelines. on So setting

in relevant and other DNA And so is ClonoSEQ the to with the space to update recommended. current assays

Chad Robins

just Medicare already And diffuse you we've coverage leg obtained remember, if Ji, to for B-cell to Sung that, tack lymphoma. on

And inclusion helps commercial so efforts any additional guideline also our with around payers indication. contracting for us that in

more So again, we be thrilled already see are DLBCL. to clinic to it, the with work but in done,

Operator

comes question Tom Stevens next from Our of TD Cowen.

Daniel Brennan

Sorry about that. It's Dan Brennan. Apologies.

question, Maybe commercial just we the bridge congrats to first the this quarter to the for So on so that XXXX quarter. the X,XXX for just on Medicaid come around that's Is And of ASP year. assumed How back you X with X,XXX state rate, volumes. in XX the approvals, now contribution to fourth that million? right, XX% 'XX. think in $X,XXX you are of kind and have since I about what's thinking Medicaid, then up

Kyle Piskel

to call It a got of there. on Obviously, maybe something question, on the Dan? the build rate, or was direct ASPs, pump high. be you little commercial What our we to On which the your Medicaid. Yes. else front might roster. I your mean up direct-to-hospital get second part Medicare

Yes.

only fill rate but managed to as those not reimbursement. we companies, state heard it we to this of acknowledge may we but payers, against. Obviously, at of rate approval with time the now think being establish Medicaid, for better than to have of somewhat we this gap will take people to want can XX% least, rate recognized. the as the traditionally but organizations And do reference kind care other think a in use XX% start to have that at we think I that, you as some very a we have least, some of peg

is to, in I and coverage over most York think we see New some to we where once then notable probably there. California start get time hopefully can improvement

Daniel Brennan

it. Got

Okay. maybe side. on And just then EPC the

a difference 'XX? you 'XX, volumes is think So what -- meaningful kind And XX% see said are of of in in do Epic adopt assuming payment those or are in there accounts of that you I what kind on you volumes?

Kyle Piskel

Yes.

XX So at X integrated this accounts have point, our are Epic accounts. includes largest of we that with that

X we've -- these, them We them, quarter went the in last are been XXXX. of many of actually live although of just monitoring

see of of we in volumes the outpaces still rest early of days business. terms growth in accounts So terms we in data. is do those consistently the our have in But growth that the order

And outpace an additionally, ongoing seems the on of the integrated we've a basis that for quarters. had more to for accounts than growth that couple

and Additionally, to to get the significant we what to expands ordering collected we of access across out the it And positive about to volumes, integration. new prior hands. numbers account saw see door consistent test streamlining order samples feedback the versus and ability and the we improvement adapt of providers, into the so its workflow get

by out accounts or of and XX% of total whether Flatiron with year. the of quite to and this So integration, flowing the a overall, growth top XX integrated EMR Epic end business to bullish we Epic X our on expect the an of through of continue accelerate have community end opportunity to our integration, by other

Daniel Brennan

adjusted one maybe Got obviously, on 'XX. just EBITDA targeting positivity just last it. in And a

But mean restrictive too any is you healthy. on think there sales that's still I maybe the think being is penetration Volume consistent. flat on OpEx, extremely said growth been low. pretty I rates force? view I are

community sales force what's sales the right maybe number further not kind think about. or the to on of level, expand pushing wondering other? look Why kind that to Just to force the of

Susan Bobulsky

Yes.

our team, NeoGenomics we sales we're sales goals. points clearly deal sure promotionally our that sales that one looking with is with ways certainly grow this the fills of profitability managing ability [indiscernible] I our we without at directly and we But the we access table investing over are to the about good in to the our team. point expand we where sensitive approval pretty are but will feel off are They and touch that could not say that that in if team time I a spend test. want been make we've at very think the to the achieve time, same

Operator

comes Our Sachs. next of from question Goldman Matt Sykes

Unknown Analyst

the on consistent see several for covered This that shown is Or at around all A sequential any quarters, you growth? already, units has X,XXX in lot past on for as been do do the you a [indiscernible] but you've improvement for MRD of anticipate Congrats that inflections Matt. forward? going quarter. cadence sustainable clinical a

Kyle Piskel

Yes.

growth to expecting growth continue around in both north see volume volume full we'll and think the of We've XXXX. year. aggregate volume. percentage I XX% for

of midpoint guidance assumptions into what's the for kind XXX. that's So baked our of

still indications. penetrated the our still core got think end we've a in of We're the day, of low at So I lot opportunity.

I think growth we've years X this So X the durable business. for coming got long-term to in

Operator

And Savant Tejas Stanley. comes question next of our Morgan from

Tejas Savant

X quick you, a maybe of and housekeeping X follow-ups. couple have I for So Kyle,

So you million MRD placeholder assumption. through are all about second comes pharma a we to versus half? $X just how it on that it as the that first assume in million Should thinking terms in of in milestones, $X XQ

Kyle Piskel

would sight with some spread we think it into practical line to but quarter. spread precise really it just it. earlier, we have But to evenly, just I some it's it of evenly. put very I try precise purposes get could later, and mean, difficult I for a

to spreading is it. do just So I it way best think the easily

Tejas Savant

realize you to should margin it. samples improvement of how clones that Got benefit. X% that your And about impact just to time? to transition, the will Do X% XX the months your curious first on think need COGS turnaround fully batch have now in as Perfect. NovaSeq Chad, on then to the we the

Chad Robins

Yes.

have. is want but profile one, need So to XX But NovaSeq of to you our do given ultimately, to do that turnaround some NextSeqs. that? it batching add basically, volume we do time the it, XX on Harlan, you should to impact not AX replacing

Harlan Robins

Yes.

takes right Medi up have next we that per volume now the day. So

we're entire room of volume plenty load to going we'll clinical growth. and be have to still daily able So our for

So that's return why nice the a we're getting NovaSeq. on such

X/X So in fact, our ticks equivalent effectively of of of the the terms NextSeqs runs. XX in NovaSeq like up

think right we're filling So it if of you now. up way, portion only that

the so of And that NovaSeq. on to continue add we'll X/X more

we're we'll in samples without the strip of So the one more needing cost machine. just other about We machine, in having us. to words, to too not Obviously, beautifully threshold can more load scales the and increase future, halves eventually, to this. we'll the it but from excited to X same run distant hopefully

Tejas Savant

it. Got helpful. That's

Chad Robins

I'd timing about just the same. say is the

Kyle Piskel

at turnaround change Yes, really all. time doesn't in

Harlan Robins

effectively Because the -- the similar. about runs it's machine same

Tejas Savant

the the side you digital silico partnership. Genentech to And to just in talked to product. model clarification reduce quick switch on things, the a about cost a then cell therapy that on of or Chad, deliver and IM guys, time

switch new trial to approach have that deploy to FDA method, data, the over clinical you if any, that to in setting? you when what additional provide a do So

Chad Robins

the of work I'm for yet. Genentech of there supporting we're regulatory this. we be, controls kind yet. all We're to all Davis, the -- that. -- provide not component not there providing and that sure we're the And But documentation

Tejas Savant

point And help on you out flesh just enough. transition goes that potential -- were if if us effort succeed, around this the can digital approach broader should Fair here Okay. this to how well? to upside the

Sure. take. Harlan, you want to do

Harlan Robins

Yes.

huge the to which I cells So problems T one mean, a is immunology do, what to. they what figure -- in bind a scientific with answer, trying scientist, start of actually I'm do out give is I'll so

this we're had but able problem, training interact that doing Nobel that. this bigger year part that be -- folding, the health first data what solving to do proteins really that just of protein other solution, And no what is with step so on each Prize to which figuring was the out was got as of the X

real So there's personalized many advantages. advantage is many, And one of X which big cell there's is applications, therapy. the

do where have presently something we or be like of assay One patient you to That's number something for a advantage that kind weeks do have that make a or personalized is matter your literally day number of our in a any the to should reagents assay, then having that. X, we X massive multiple and time in able buy each takes and cost lab. advantage, to And one. is run then assay

is do there you advantage huge the that that. have don't of to So any

most applications, just direct You're monitoring, like vaccines, immune cancer other the personalized of like tons. the the And some there's from other compute. using then that, example, for -- separate set

excited that potential. we're So about

Tejas Savant

super That's it. Got helpful.

Operator

and session may question-and-answer now today's our concludes Thank for and you That you. participating, disconnect. Thank conference. you

Adaptive Biotechnologies (ADPT) 11 Feb 252024 Q4 Earnings call transcript