Adaptive Biotechnologies Reports $179M Revenue in 2024, Driven by MRD Business Growth

Adaptive Biotechnologies Corp. reported revenue of $179.0 million for 2024, a 5% increase compared to $170.3 million in 2023. This rise was primarily driven by a 42% surge in Minimal Residual Disease (MRD) business revenue, reaching $145.5 million, which included $12.5 million from milestones. However, this growth was partially offset by a 51% decrease in Immune Medicine business revenue, primarily due to a decline in amortization of upfront payments from Genentech. Operating expenses decreased from $397.3 million in 2023 to $341.5 million in 2024, a reduction attributed to operational streamlining. This included $7.2 million in non-cash asset impairment charges and $2.0 million in restructuring charges, compared to $25.4 million in non-cash impairment charges in 2023. The company ended 2024 with $256.0 million in cash, cash equivalents, and marketable securities.

The increase in MRD revenue stemmed from a 29% rise in clonoSEQ service revenue for clinical customers, the addition of regulatory milestone revenue, and increased revenue from biopharmaceutical partners. clonoSEQ test volume grew by 35% year-over-year. Payor coverage expanded to over 300 million lives for ALL and MM, over 200 million for CLL, and over 70 million for DLBCL. Medicare coverage was secured for MCL, and promotional efforts began in the fourth quarter of 2024. The company also integrated clonoSEQ into the Epic EMR system at 18 accounts and secured a new Medicare Clinical Laboratory Fee Schedule rate of $2,007 per test. The clonoSEQ assay was used in over 170 active trials by over 40 biopharmaceutical partners, with MRD serving as a clinical endpoint in over 85 of these trials.

In the Immune Medicine segment, the company collaborated with Genentech on the development of TCR-based cell therapies, making significant progress in improving turnaround times and reducing costs. In autoimmunity, Adaptive narrowed its focus to indications like MS and T1D, identifying autoreactive TCRs and nominating a lead indication for preclinical antibody development. The company's immunosequencing platform, combining proprietary chemistry, computational biology, and machine learning, underpins both business segments. The platform sequences, maps, pairs, and characterizes TCRs and BCRs at scale, generating clinical immunomics data.

Adaptive Biotechnologies' competitive strengths include clonoSEQ's broad reimbursement in the U.S., expanding regulatory and reimbursement expertise, a proprietary immunomics database, strong intellectual property protection, and a path toward profitability for the MRD business. The company holds 416 active issued patents and has filed 847 patent applications. Strategic collaborations, such as the Genentech Agreement, remain a key component of the company's strategy, with potential for significant future milestone and royalty payments. The company also entered into a revenue interest purchase agreement with OrbiMed, receiving $124.4 million upfront and potentially up to an additional $125 million in future installments.

Adaptive Biotechnologies' outlook is tied to the continued success of clonoSEQ, expansion into new indications and sample types, and the successful development and commercialization of additional products and services within both the MRD and Immune Medicine segments. The company acknowledges significant risks related to profitability, market acceptance, regulatory approvals, reliance on collaborators, and intellectual property protection, among others, as detailed in the 10-K filing. The company's financial performance is subject to fluctuations based on various factors, including the timing of milestone payments, reimbursement rates, and the success of its research and development efforts.