Adaptive Biotechnologies Corporation · NASDAQ:ADPT

Adaptive Biotechnologies — Q4 2023 Earnings Presentation

17 slides from Adaptive Biotechnologies's earnings presentation, Feb 14, 2024

  1. Slide 1: Fourth Quarter and FY 2023 Earnings Conference Call

    Fourth Quarter and FY 2023 Earnings Conference Call

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation has been prepared by Adaptive Biotechnologies Corporation (“we,” “us,” “our,” “Adaptive” or the “Company”) and is made for informational purposes only. The information set forth herein does not purport to be complete or to contain all relevant information. Statements co

  3. Slide 3: 2023: a transformational year with key milestones and strategic initiatives

    2023: a transformational year with key milestones and strategic initiatives  Revenue performance:  Strategic review to maximize the value of the  FY’23 $170M MRD and IM businesses  OPEX reduction initiatives:  MRD $103M Financial Corporate Results Initiatives  Streamlined organization  IM $68

  4. Slide 4: Strategic Review: maximizing value for patients, employees and shareholders

    Strategic Review: maximizing value for patients, employees and shareholders Process Outcome Rationale & Diligence Timeline MRD & IM: two compelling  Working with Goldman  On track to communicate businesses with key Sachs outcome by end of Q1’24 differences  Management and Board  Stages of maturi

  5. Slide 5: MRD: 2023 Performance and outlook

    MRD 2023 Performance and outlook

  6. Slide 6: clonoSEQ clinical business performance

    clonoSEQ clinical business performance clonoSEQ test volumes 15,680 15,072 13,665 4%  Q4’23 clinical revenue +56% Y/Y; +25% Q/Q 12,079 10% 10,526 13%  Q4’23 clonoSEQ test volume +49% Y/Y; +4% Q/Q 9,649 15% 9%  MM is the largest contributor (~37% of business) 15,095 14,155 12,823  clonoSEQ US ASP

  7. Slide 7: clonoSEQ leading indicators continue to trend in the right direction

    clonoSEQ leading indicators continue to trend in the right direction % contribution from % clonoSEQ MRD tests ~Number of ordering ~Number of ordering community in blood accounts HCPs 561 2,380 39% 524 24% 37% 36% 490 2,080 2,138 35% 465 1,966 21% 21% 31% 435 1,787 18% 15% Q4-22 Q1-23 Q2-23 Q3-23 Q4-

  8. Slide 8: MRD pharma ended 2023 with healthy backlog despite softening revenue

    MRD pharma ended 2023 with healthy backlog despite softening revenue  FY ‘23 revenue growth of 1% Y/Y was impacted by macro factors in the biopharma industry  Q4’23 experienced some recovery with growth of 23% Q/Q  ~$185M of backlog at the end of 2023  ~15% growth vs backlog at end of 2022  Lau

  9. Slide 9: 2024 key strategic priorities

    2024 key strategic priorities Key Priorities Strategies Increase testing Expand into newer Expand patient Integrate testing in blood indications use cases workflows Increase Penetration Ongoing evidence generation/studies Coverage expansion Production lab OPEX leverage / ASP increase efficiencies Im

  10. Slide 10: Financial outlook and path to profitability for MRD business

    Financial outlook and path to profitability for MRD business Path to profitability/cashflow breakeven Est 3 yrs. P&L progression (illustrative) ($M) 1 1 Revenue CAGR from 2023-2027 to be 25-30% 2 $300 Revenue Opex* 2 Adj EBITDA positive 2H 2025 $100 3 CF 3 Cash Flow Breakeven 1H 2026 $0 2023 2024 20

  11. Slide 11: Immune Medicine (IM): Strategy and achievements

    Immune Medicine (IM) Strategy and achievements

  12. Slide 12: IM business: strategic focus on target and drug discovery

    IM business: strategic focus on target and drug discovery Advancing transformative immune-based therapeutics in cancer and autoimmunity Platform Discovery Engine Immune T cells receptors Differentiated Se q ue nce Target & Drug Map B cells Discovery P air Charact e rize Cancer Autoimmunity 12

  13. Slide 13: We are making progress on high value opportunities in cancer and autoimmunity

    We are making progress on high value opportunities in cancer and autoimmunity High unmet clinical need… With increasing proof points 1st TCR-based Cell Therapy Product Cell Therapy  IND cleared for 1st neoantigen-directed product candidate  Cell therapy for solid tumors is the next frontier Fully

  14. Slide 14: Executing on 2024 strategic priorities and growth strategy

    Executing on 2024 strategic priorities and growth strategy  Support GNE’s development of cancer cell therapy products  Further validate MS target, including in in vivo disease models  Advance therapeutic modalities (e.g., antibodies) to MS target  Scale target discovery in additional autoimmune

  15. Slide 15: Q4 and FY 2023 financial highlights

    Q4 and FY 2023 financial highlights Total Revenue ($M) Operating Expenses ($M) $185.3 $170.3 -8% 98.2 67.5 -31% $55.2 $45.8 -17% 27.1 15.0 -45% 102.7 +18% 1 Includes ~$0.4M per quarter of amortization of intangibles and excludes $25M impairment 87.1 charge in Q4’23 related to our legacy lab and HQ s

  16. Slide 16: FY 2024 guidance

    FY 2024 guidance  FY 2024 revenue guidance :  MRD revenue between $130M-$140M  IM business focused on target and drug discovery  Partner revenue partially offsets R&D investments  FY 2024 operating expenses:  Expect FY OPEX between $360M-370M1  Quarterly average cash burn ~$35M1  FY 2024 cas

  17. Slide 17: Appendix: Reconciliation between Adjusted EBITDA and net loss

    Appendix: Reconciliation between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net loss attributable to Adaptive Biotechnologies Corporation $ (69,441) $ (40,128) $ (225,250) $ (200,191) I

Adaptive Biotechnologies — Q4 2023 Earnings Presentation on 6ix