Adaptive Biotechnologies Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and net losses compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated total revenue of $46.4 million, a 22% increase from $37.9 million in the same period of 2023. The Minimal Residual Disease (MRD) segment contributed $37.5 million, up 52% from $24.7 million, driven by a 30% increase in clonoSEQ test volume and additional revenue from regulatory milestones. In contrast, revenue from the Immune Medicine segment decreased by $4.3 million, primarily due to a decline in collaboration revenue from Genentech.

For the nine months ended September 30, 2024, total revenue reached $131.5 million, a 6% increase from $124.5 million in the prior year. The MRD segment's revenue rose significantly to $105.4 million, up 46% from $72.0 million, while Immune Medicine revenue fell to $26.1 million, a 50% decrease from $52.5 million.

Operating expenses for the third quarter decreased to $79.1 million from $88.9 million in the prior year, and for the nine months, they fell to $260.2 million from $280.5 million. This reduction in expenses contributed to a smaller loss from operations of $32.6 million for the third quarter, compared to $51.0 million in 2023. The net loss for the third quarter was $32.1 million, down from $50.3 million, while the nine-month net loss decreased to $125.9 million from $155.8 million.

As of September 30, 2024, the company reported cash and cash equivalents of $38.1 million, a decrease from $65.1 million at the end of 2023. Total current assets also declined to $308.3 million from $410.2 million, and total assets decreased to $558.5 million from $661.1 million. Total shareholders’ equity fell to $223.6 million from $308.3 million at the end of 2023.

The company has undertaken restructuring initiatives, incurring total restructuring costs of $9.1 million for the nine months ended September 30, 2024, primarily related to impairment charges and one-time termination benefits. Additionally, Adaptive Biotechnologies has entered into a Purchase Agreement with OrbiMed, receiving $125 million at closing, with potential future installments.

Overall, Adaptive Biotechnologies is navigating a challenging market environment while focusing on expanding its MRD segment and managing costs effectively.