Slide 1: Third Quarter 2022 Earnings Conference Call
Third Quarter 2022 Earnings Conference Call
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
Slide 3: Q3 2022 Key Highlights
Q3 2022 Key Highlights MRD Business ◼ Drove clonoSEQ test volume growth of 52% vs prior year ◼ Signed Epic integration agreement ◼ Signed agreement for a new primary-end point study in MM with existing partner Q3’ 22 Rev Immune Medicine Business $47.8M ◼ IM Pharma revenue grew 23% vs prior year +21%
Slide 4: MRD business: clonoSEQ clinical testing
MRD business: clonoSEQ clinical testing ◼ Q3’22 test delivered volume +52% vs P/Y; +7% vs P/Q ❑ 403 ordering accounts in Q3 (+53% vs P/Y) ❑ 1,612 ordering HCPs in Q3 (+56% vs P/Y) ❑ Unique patients tested increased (+62% vs P/Y) clonoSEQ test volume 9,649 8,998 7% 7,698 17% 6,850 12% 11% 6,341 8% 5,
Slide 5: Advancing on our strategy to maintain leadership in lymphoid cancers
Advancing on our strategy to maintain leadership in lymphoid cancers 400K patients Expand into NHL CLIA launch of DLBCL at ASH Growth to be MM in blood MM in in blood grew >100% in Q3 vs P/Y driven by sales force expansion + Market expansion Epic integration 19% Q/Q growth in community accounts in c
Slide 6: MRD pharma business: portfolio continues to increase
MRD pharma business: portfolio continues to increase clonoSEQ MRD, gold standard in drug trials, growing use as an endpoint Portfolio Overview Portfolio Mix by Indication ◼ >60 BioPharma partners ◼ Sequencing revenue plus regulatory milestones ◼ >$370M in milestones from future & active trials NHL 2
Slide 7: Immune Medicine Business
Immune Medicine Business Immune Medicine Platform Growth Areas Multiple shots on goal to create value, grow and monetize our immune receptor data across clinical applications Multiple T cells opportunities Immune receptor sequencing Pharma Services stemming from immune receptor data B cells Drug Dis
Slide 8: Pharma Services growing portfolio across multiple indications
Pharma Services growing portfolio across multiple indications Portfolio mix by indication Rich immune receptor biomarker data accelerates clinical trials 4+ Major therapeutic areas 500+ Total studies to date Portfolio mix by study phase 140+ Total active studies Growth drivers • Scale companies / #
Slide 9: Drug Discovery unlocks the value of immune receptors as therapeutics
Drug Discovery unlocks the value of immune receptors as therapeutics Shared Product Partnered pipeline TruTCR Candidates TCRs targeting TCR candidate selected to progress towards IND shared cancer Private Product Deliver 2 add’l TCR data packages by YE (neo)antigens 36% Q3 Y/Y growth in GNE amortiza
Slide 10: Q3 2022 key financial highlights
Q3 2022 key financial highlights Total Revenue ($M) MRD Revenue ($M) + $47.8 +21% [Clinical testing + $39.5 pharma sequencing] 20.0 +26% 15.9 3 * 27.9 +18% Immune Medicine Revenue ($M) 23.6 + + Q3 2021 Q3 2022 MRD Business Immune Medicine Business All $ and % figures are rounded * 10 * Includes Acad
Slide 11: Q3 2022 key financial highlights cont.
Q3 2022 key financial highlights cont. Operating Expenses ($M) Strong Balance Sheet ◼ ~$528M in cash, cash equivalents and marketable -3% securities as of 09/30/2022 -3% ◼ Q4 2022 expected cash burn <$50M $96 $96 $93 0.4 0.4 0.4 FY 2022 Revenue Guidance 20 21 21 ◼ Narrowing range to $185M-$190M from
Slide 12: Royalty financing agreement for up to $250M
Royalty financing agreement for up to $250M 18-24 months 09/28 Yr 10 (09/32) 1st tranche $125M • 5% royalty of total GAAP quarterly revenue to be paid to OrbiMed (drawn 09/22) Royalty cap Adaptive option to draw 2nd tranche 1.65x amount 2nd tranche borrowed Cap increases to • 8% royalty of total GAA
Slide 13: Long-term expectations
Long-term expectations Path to Profitability / Cash Flow breakeven Estimated 5 yrs P&L progression ◼ Revenue CAGR from 2022-2027 to be 20-30% 1 ($M) 2 Revenue ● MRD contribution higher in the near-term $400 ◼ 2 Adj EBITDA1 positive 2025 Opex* 20-30% CAGR 1 ● Prudent spend management: maintain operat
Slide 14: Updated Key Catalysts 2022
Updated Key Catalysts 2022 ✓ Medicare coverage of DLBCL ✓ CLIA launch DLBCL MRD ✓ Expand adoption of MRD status as a co-/primary clinical endpoint ◼ Read-out data for use in blood in MM/DLBCL Powering the Age of Immune Medicine ◼ Genentech collaboration: ✓ Selected TCR candidate to progress as a pot
Slide 15: Thank You.
Thank You.
Slide 16: Reconciliation between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation
Reconciliation between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss attributable to Adaptive Biotechnologies Corporation $ (45,281) $ (55,903) $ (160,063) $ (145,846) In