Company Overview - Adaptive was founded 16 years ago at the Fred Hutchinson Cancer Research Institute by the Robins brothers and has been public since 2019 [3] - The company currently employs approximately 620 people and has generated over $275 million in revenue [3] - Adaptive holds a strong cash position with around $227 million available [3] Business Model and Vision - The company operates on the premise that understanding the genetic source code of the adaptive immune system, specifically T cells and B cells, can significantly enhance disease diagnosis and comprehension [4]

Summary of Adaptive Biotechnologies FY Conference Call Company Overview - **Company**: Adaptive Biotechnologies (NasdaqGS:ADPT) - **Founded**: 16 years ago at Fred Hutchinson Cancer Research Institute - **Employees**: Approximately 620 - **Revenue**: Over $275 million - **Cash Position**: Approximately $227 million [2][2] Core Business Segments Minimal Residual Disease (MRD) Business - **Market Size**: Global addressable market of approximately $5.5 billion, with a U.S. clinical testing market of roughly $1.8 billion [4][4] - **Growth Opportunity**: Potential to increase testing frequency from 2.5 to 3.5 tests per patient per year, expanding the U.S. market by approximately $700 million [4][4] - **Technology**: clonoSEQ test measures MRD with high sensitivity and specificity, detecting one cancer cell in every million healthy cells [6][6] - **Regulatory Approval**: clonoSEQ is the only FDA-cleared MRD assay in lymphoid malignancies [6][6] - **Financial Performance**: Achieved positive adjusted EBITDA in 2025, with revenue surpassing $200 million and a 34% cumulative average growth rate from 2021 to 2025 [8][9] Immune Medicine (IM) Business - **Focus**: Understanding T-cell receptor interactions with antigens to drive insights across various diseases [26][26] - **Data Generation**: Mapped over 5 million T-cell receptors to antigens, generating biological insights for autoimmune diseases [27][27] - **Partnerships**: Recent agreements with Pfizer for data licensing and target discovery in rheumatoid arthritis [28][28] Key Financial Metrics - **Revenue Growth**: Clinical revenue grew at a 53% CAGR, with gross margins improving significantly due to lab efficiencies [9][9] - **Testing Volume**: Clinical volumes grew at a 44% CAGR since 2021, with over 100,000 patients tested using clonoSEQ [10][10] - **Average Selling Price (ASP)**: Reached approximately $1,310 in 2025, with a target of $1,700-$1,800 by 2029 [19][20] Growth Drivers Clinical Testing - **Volume Growth Factors**: Blood-based testing, community presence, clinical guideline inclusion, ongoing data generation, and EMR integration [11][11] - **Community Testing**: Expected to grow from 30% to over 35% of clonoSEQ testing [12][12] - **Guideline Updates**: Significant updates in 2025, elevating MRD to a clinical decision-making tool [13][14] Biopharma Partnerships - **MRD Pharma Portfolio**: Anchored in multiple myeloma, with 70% of sequencing revenue from this indication [22][22] - **Diversification**: Tripled bookings in CLL in 2025, with ongoing pipeline development [22][22] Future Outlook - **2026 Expectations**: - Clinical testing volume expected to grow by more than 30% year-over-year [25][25] - ASP projected at approximately $1,400 [25][25] - Continued improvement in sequencing gross margins, targeting over 70% [25][25] - **Cash Burn**: Expected to decrease to between $15 million and $20 million while investing in data generation [30][30] Competitive Landscape - **Market Position**: Adaptive maintains a strong competitive moat in MRD testing, particularly in DLBCL, where it has seen significant growth [41][41][42] - **Emerging Competition**: Natera's acquisition of Foresight Diagnostics highlights the nascent market for NGS MRD testing, but Adaptive's established reimbursement and technology position it favorably [41][41] Conclusion - **Key Takeaways**: - Strengthening leadership in MRD testing for blood cancers - Advancing immune receptor data platform - Expectation of positive adjusted EBITDA and free cash flow for the entire company in 2026 [31][31]

MRD Business Highlights - Adaptive Biotechnologies achieved approximately $212 million in MRD revenue for the full year 2025[20] - The company experienced a 53% Compound Annual Growth Rate (CAGR) in pharma revenue[20] - Sequencing gross margins are approximately 65% in 2025[21] - Clinical volume growth shows a 44% CAGR from 2021 to 2025[22] - Over 50% of US heme-oncologists ordered clonoSEQ in 2025[22] - The company anticipates an average selling price (ASP) of approximately $1,400 per US clinical test in FY 2026[47] Immune Medicine (IM) Highlights - Adaptive Biotechnologies has generated over 5 million paired TCRs to antigen, significantly exceeding the 40,000 publicly available[52] - The company's Immune Medicine division had an annual cash burn of approximately $30 million in FY 2025, with a target to reduce it to $15 million to $20 million[60] Overall Company Goals - Adaptive Biotechnologies aims to achieve positive adjusted EBITDA and positive Free Cash Flow (FCF) for the whole company by the end of 2026[61]

Financial Results - Adaptive Biotechnologies Corporation reported financial results for the quarter and year ended December 31, 2025[4]. - The press release detailing the financial results was issued on January 12, 2026[4]. - The financial results include key metrics that will be detailed in the attached press release and presentation[4][6]. - The report does not include specific performance metrics or guidance in the provided content[4][6]. Investor Relations - The company provided an Investor Presentation intended for meetings with investors and analysts[6]. - The company has not indicated any obligation to update the Investor Presentation in the future[6]. Company Information - The company is not classified as an emerging growth company under the relevant regulations[3]. - The company is based in Seattle, Washington, and trades on the NASDAQ under the symbol ADPT[2]. Report Details - The financial statements and exhibits related to the report are included as attachments[9]. - The report was signed by Kyle Piskel, Chief Financial Officer, on January 12, 2026[13].

Core Insights - Adaptive Biotechnologies reported a significant revenue growth of 55% for the full year 2025, reaching approximately $277 million, driven by strong adoption of clonoSEQ testing [6] - The company anticipates continued growth in 2026, focusing on maintaining leadership in MRD testing and expanding profitability [2] Financial Performance - Total revenue for Q4 2025 was approximately $72 million, marking a 51% increase compared to Q4 2024 [6] - MRD revenue for Q4 2025 was around $62 million, reflecting a 54% increase year-over-year [6] - For the full year 2025, MRD revenue reached approximately $212 million, a 46% increase compared to 2024 [6] - Excluding regulatory milestone revenue, MRD revenue for the full year 2025 grew by 45% [6] - ClonoSEQ test volume increased by 43% in Q4 2025, totaling approximately 30,000 tests, and ended the year with about 105,600 tests delivered, up 39% from 2024 [6] - As of December 31, 2025, the company had approximately $227 million in cash, cash equivalents, and marketable securities [6] Strategic Outlook - The CEO emphasized the pivotal nature of 2025 for Adaptive, highlighting the acceleration in MRD business and clonoSEQ adoption [2] - The company plans to release complete financial results for Q4 and full year 2025 in February 2026 [2]

Core Insights - Digital Biotechnologies Inc., a new subsidiary of Adaptive Biotechnologies, has successfully raised funds through an initial closing of a Series A investment round [1] Company Overview - Digital Biotechnologies Inc. is based in Seattle and operates under the umbrella of Adaptive Biotechnologies, which is publicly traded and focuses on immune medicine [1] Financial Activity - The company has completed an initial closing of a Series A investment round, indicating a positive reception from investors and potential for future growth [1]

Core Insights - Adaptive Biotechnologies Corporation is participating in the 44th Annual J.P. Morgan Healthcare Conference in San Francisco, CA on January 12, 2026 [1][2] Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on leveraging the adaptive immune system for disease diagnosis and treatment [3] - The company aims to decode the adaptive immune system's genetics to enhance its diagnostic and therapeutic capabilities [3] - Its proprietary immune medicine platform is designed to translate the genetics of the adaptive immune system with scale, precision, and speed [3] - The company operates in two business segments: Minimal Residual Disease (MRD) and Immune Medicine, developing clinical diagnostics and partnering with biopharmaceutical companies [3] - The goal is to create immune-driven clinical products tailored to individual patients for diseases such as cancer and autoimmune disorders [3]

Core Insights - Adaptive Biotechnologies has entered into two non-exclusive agreements with Pfizer to advance research in rheumatoid arthritis and other immune-related diseases [1] Company Summary - The collaboration with Pfizer aims to leverage Adaptive Biotechnologies' expertise in immune profiling to enhance the understanding and treatment of autoimmune conditions [1] - These deals signify a strategic partnership that may lead to innovative therapeutic solutions in the field of immunology [1] Industry Summary - The agreements highlight the growing interest and investment in research related to autoimmune diseases, particularly rheumatoid arthritis, which affects millions globally [1] - This collaboration reflects a broader trend in the pharmaceutical industry towards partnerships that combine advanced biotechnology with traditional drug development [1]

Core Insights - Adaptive Biotechnologies has entered into two non-exclusive agreements with Pfizer to utilize its T-cell receptor (TCR) discovery capabilities and immune receptor antigen mapping data for research in rheumatoid arthritis (RA) [1][3][5] Group 1: Agreements Overview - The first agreement focuses on identifying disease-causing TCRs in RA, where Adaptive will analyze Pfizer's clinical samples to find common TCRs enriched in RA patients [3] - The second agreement involves licensing Adaptive's TCR-antigen datasets, which are claimed to be the largest and highest quality available, for use in developing AI and machine learning models at Pfizer [4][6] Group 2: Financial Aspects - Adaptive will receive an upfront payment from Pfizer and may be eligible for additional payments that could total up to approximately $890 million, contingent on data delivery, development, and commercialization milestones [5] - Specific financial terms of the TCR-antigen data licensing agreement have not been disclosed, but it is a multi-year, non-exclusive agreement [6] Group 3: Company Background - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on leveraging the adaptive immune system for disease diagnosis and treatment, with a goal to develop immune-driven clinical products tailored to individual patients [7]

Core Insights - Adaptive Biotechnologies Corporation is focused on translating the genetics of the adaptive immune system into clinical products for disease diagnosis and treatment [2] - The company will participate in a Jefferies fireside chat to discuss Minimal Residual Disease (MRD) in Hematology/Oncology, highlighting their clonoSEQ assay technology [1] Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company that aims to leverage the adaptive immune system for disease diagnosis and treatment [2] - The company utilizes a proprietary immune medicine platform to decode the genetics of the adaptive immune system, enabling partnerships with biopharmaceutical companies and informing drug development [2] - The company operates in two business segments: Minimal Residual Disease (MRD) and Immune Medicine, focusing on the diagnosis, monitoring, and treatment of diseases such as cancer and autoimmune disorders [2]