On November 3, 2022 Adaptive Biotechnologies Corporation ("Adaptive Biotechnologies") (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, reported financial results for the quarter ended September 30, 2022 (Press release, Adaptive Biotechnologies, NOV 3, 2022, View Source [SID1234622977]).
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"We continue to deliver solid growth in both of our business areas quarter over quarter, and are confident in our long-term outlook," said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. "With a bolstered cash position from our recent financing, we are focused on driving growth and innovation across our businesses with a clear path to profitability."
Recent Highlights
•Revenue of $47.8 million for the third quarter 2022, representing a 21% increase from the third quarter 2021.
•clonoSEQ test volume in the third quarter 2022 grew 52% versus the third quarter of prior year.
•Signed partnership with Epic to integrate the clonoSEQ Assay into Epic’s comprehensive electronic medical record (EMR) system.
•Immune Medicine business grew 18% in the third quarter 2022 versus the third quarter 2021, driven by drug discovery and pharma services.
•Signed non-dilutive royalty financing agreement with OrbiMed for up to $250 million.
•Provided long-term guidance including revenue CAGR from 2022-2027 at 20%-30%, positive adjusted EBITDA in 2025 and cash flow breakeven in 2026.
Third Quarter 2022 Financial Results
Revenue was $47.8 million for the quarter ended September 30, 2022, representing a 21% increase from the third quarter in the prior year. Immune Medicine revenue was $27.9 million for the quarter, representing an 18% increase from the third quarter in the prior year. MRD revenue was $20.0 million for the quarter, representing a 26% increase from the third quarter in the prior year.
Operating expenses were $93.3 million for the third quarter of 2022, compared to $95.8 million in the third quarter of the prior year, representing a decrease of 3%. Interest expense from our revenue interest purchase agreement entered into during the third quarter of 2022 was $0.7 million.
Net loss was $45.3 million for the third quarter of 2022, compared to $56.0 million for the same period in 2021.
Adjusted EBITDA (non-GAAP) was a loss of $25.9 million for the third quarter of 2022, compared to a loss of $41.1 million for the third quarter of the prior year.
Cash, cash equivalents and marketable securities was $527.8 million as of September 30, 2022.
2022 Financial Guidance
Adaptive Biotechnologies narrows full year 2022 revenue to be in the range of $185 million to $190 million compared to the previous expectation of $185 million to $195 million.
We now expect full year 2022 operating expenses to be below $400 million compared to the previous expectation of between $410 million and $415 million.
Webcast and Conference Call Information
Adaptive Biotechnologies will host a conference call to discuss its third quarter 2022 financial results after market close on Thursday, November 3, 2022 at 4:30 PM Eastern Time. The conference call can be accessed at View Source The webcast will be archived and available for replay at least 90 days after the event.