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Adaptimmune Therapeutics (ADAP)
NASDAQ:ADAP
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Adaptimmune Therapeutics
(NASDAQ:ADAP)
46Neutral
Positive Factors
Cost Management
Management's cost reduction and strategic prioritization are expected to save an additional $75M to $100M between 2025 and 2028.
Product Launch
The launch of Tecelra is gaining momentum with strong sales and increasing patient treatment numbers.
Strategic Opportunities
Multiple opportunities exist to address the funding gap, including partnerships, out-licensing, and financing, indicating confidence in management's strategic direction.
Negative Factors
Financial Challenges
Management acknowledges the company’s near-term financial challenges as it aims for operating breakeven.
Going Concern
The company faces going concern issues and has hired a bank to explore strategic options.
Pipeline Concerns
Discontinuation of preclinical PRAME and CD70 pipeline programs raises concerns about the company's future R&D activities.
Adaptimmune Therapeutics (ADAP) vs. S&P 500 (SPY)
Market Cap
$66.06M
Dividend YieldN/A
Average Volume (3M)2.61M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth194.23%
EPS Growth45.50%
CountryUS
Employees506
SectorHealthcare
Sector Strength77
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.29
Shares Outstanding257,231,930
10 Day Avg. Volume3,546,697
30 Day Avg. Volume2,611,541
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.43
Price to Cash Flow (P/CF)-0.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.78Price Target Upside584.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Adaptimmune Therapeutics Business Overview & Revenue Model
Company DescriptionAdaptimmune Therapeutics (ADAP) is a biopharmaceutical company specializing in the development of novel cancer immunotherapy products. The company focuses on leveraging the body's own immune system to target and destroy cancer cells, primarily through its proprietary SPEAR (Specific Peptide Enhanced Affinity Receptor) T-cell technology. Adaptimmune's core products are designed to treat a variety of solid tumors, with a strong emphasis on advancing cell therapies to market.
How the Company Makes MoneyAdaptimmune Therapeutics generates revenue primarily through collaboration agreements, licensing deals, and milestone payments from pharmaceutical partners. These partnerships often involve upfront fees, research funding, and potential royalties on sales of successfully developed therapies. Additionally, the company may earn revenue from government grants or other funding initiatives aimed at supporting innovative cancer treatments. The success of its SPEAR T-cell therapies in clinical trials and regulatory approvals plays a crucial role in its ability to secure lucrative partnerships and revenue opportunities.
Adaptimmune Therapeutics Financial Statement Overview
Summary
Adaptimmune Therapeutics shows robust revenue growth but remains unprofitable with significant operational inefficiencies. The balance sheet reveals high leverage and low equity, indicating financial instability. Cash flow improvements are noted but remain negative, highlighting ongoing challenges in cash management.Income Statement
Adaptimmune Therapeutics has shown significant revenue growth, with a 195.47% increase from 2023 to 2024. However, the company remains unprofitable with a negative net profit margin of -39.77% in 2024, reflecting ongoing challenges in achieving profitability. The gross profit margin is strong at 99.96%, but negative EBIT and EBITDA margins highlight operational inefficiencies.45
Neutral
Balance Sheet
The company's financial leverage is concerning, with a debt-to-equity ratio of 2.02, indicating high reliance on debt relative to equity. The equity ratio stands at a low 4.82%, suggesting limited financial flexibility. Return on equity is negative, reflecting ongoing losses.40
Negative
Cash Flow
Free cash flow remains negative, but the free cash flow deficit has decreased from 2023 to 2024, showing improvement in cash management. Operating cash flow to net income ratio is below 1, indicating cash flow challenges. However, positive financing cash flow might suggest successful capital raising efforts.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 178.03M | 60.28M | 27.15M | 6.15M | 3.96M | Gross Profit |
| 177.96M | 50.42M | -100.58M | -104.94M | -87.61M | EBIT |
| -68.76M | -138.04M | -163.97M | -162.25M | -133.41M | EBITDA |
| -52.66M | -128.20M | -155.59M | -155.68M | -125.81M | Net Income Common Stockholders |
| -70.81M | -113.87M | -165.46M | -158.09M | -130.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 151.60M | 146.94M | 204.60M | 369.58M | 368.22M | Total Assets |
| 245.96M | 282.62M | 328.92M | 469.55M | 451.14M | Total Debt |
| 23.97M | 25.23M | 23.08M | 25.47M | 23.71M | Net Debt |
| -67.17M | -118.76M | -84.96M | -124.48M | -33.17M | Total Liabilities |
| 234.11M | 243.10M | 247.04M | 263.58M | 109.92M | Stockholders Equity |
| 11.85M | 39.51M | 81.88M | 205.96M | 341.23M |
| Cash Flow | Free Cash Flow | |||
| -73.21M | -145.76M | -171.51M | 1.95M | -56.50M | Operating Cash Flow |
| -73.21M | -140.88M | -141.77M | 10.73M | -53.59M | Investing Cash Flow |
| -58.95M | 176.54M | 89.14M | 75.80M | -278.92M | Financing Cash Flow |
| 78.75M | 880.00K | 12.87M | 3.29M | 340.05M |
Adaptimmune Therapeutics Technical Analysis
Negative
0.26
Price Trends
0.47
Negative
0.55
Negative
0.79
Negative
Market Momentum
-0.09
Positive
27.68
Positive
9.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAP, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.47, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 27.68 is Positive, neither overbought nor oversold. The STOCH value of 9.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADAP.
Adaptimmune Therapeutics Risk Analysis
Adaptimmune Therapeutics disclosed 82 risk factors in its most recent earnings report. Adaptimmune Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adaptimmune Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $133.70B | 280.39 | 2.28% | 2.89% | 6.16% | -91.54% | |
48 Neutral | $983.63M | ― | -57.48% | ― | 13698.99% | 31.46% | |
48 Neutral | $6.35B | 1.19 | -46.87% | 2.63% | 17.16% | 1.34% | |
46 Neutral | $66.06M | ― | -273.36% | ― | 194.23% | 45.50% | |
45 Neutral | $425.43M | 43.42 | 3.73% | ― | 188.64% | ― | |
42 Neutral | $86.28M | ― | -54.21% | ― | -78.55% | -0.92% | |
36 Underperform | $48.46M | ― | -295.35% | ― | 184.12% | 31.92% |
* Healthcare Sector Average
Performance Comparison
ADAP
Adaptimmune Therapeutics
0.26
-1.10
-80.88%
GILD
Gilead Sciences
105.52
38.61
57.70%
BLUE
Bluebird Bio
4.77
-18.43
-79.44%
FATE
Fate Therapeutics
0.91
-5.80
-86.44%
IOVA
Iovance Biotherapeutics
3.03
-10.04
-76.82%
IMTX
Immatics
3.68
-7.06
-65.74%
Adaptimmune Therapeutics Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -42.22% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
The earnings call highlights substantial progress in the TECELRA launch, strong manufacturing and reimbursement success, and promising developments for future products like Lete-cel. However, the company faces challenges in securing additional capital to reach profitability by 2027 and delayed financial reporting. Overall, the positive aspects, particularly in product launch and efficiency, outweigh the financial and capital concerns.Highlights
Successful TECELRA Launch
The TECELRA launch has shown fantastic momentum with 20 authorized treatment centers representing two-thirds of the planned network, ahead of schedule. In Q1 2025, they've apheresed 10 patients with expectations to invoice 3 to 4 times as many patients as in the prior quarter.
Promising Reimbursement Success
Over 70% of commercial and Medicare lives are in plans with policies to cover TECELRA, with zero reimbursement denials to date, showcasing strong support from payers.
Manufacturing Efficiency
TECELRA manufacturing has been highly efficient with a 100% success rate in product release and no manufacturing failures. The turnaround time is less than the target of 30 days.
Lete-cel Progress
Lete-cel, the next product in the sarcoma franchise, is on track for BLA submission later this year. The IGNYTE-ESO trial showed a 42% overall response rate, with six complete responses among 64 patients.
Cost-Saving Measures
The company has announced a pause on spending for preclinical programs targeting PRAME and CD70, reducing forward cash flow demands by $75 million to $100 million, in addition to $300 million saved from previous restructuring.
Lowlights
Capital Needs for Profitability
Adaptimmune will need additional capital to reach cash flow positive status by 2027 and has engaged TD Cowen to explore strategic options.
Delay in Financial Reporting
The company delayed financial reporting for the quarter, with the 10-K expected the following week, attributing this to restructuring impacts and new considerations for auditors.
Company Guidance
During Adaptimmune's Q4 and full-year 2024 business update call, the company provided several key metrics and guidance that highlighted the promising trajectory of their TECELRA product launch. They reported having 20 authorized treatment centers (ATCs) established, representing two-thirds of their planned network of 30 sites, well ahead of their original schedule to complete by late 2026. In Q4 2024, they apheresed three patients, generating $1.2 million in revenue from two invoiced patients. For Q1 2025, they have already apheresed 10 patients and anticipate apheresing a total of 13 by the end of March, expecting invoicing for 6 to 8 patients. The company has successfully secured reimbursement policies covering over 70% of commercial and Medicare lives. Manufacturing has met all targets, with 100% of products manufactured to specification and a turnaround time of less than the targeted 30 days. Adaptimmune anticipates sales of TECELRA to continue accelerating and sees the analyst consensus forecast of approximately $25 million in sales for 2025 as achievable. Furthermore, they foresee US peak sales for their sarcoma franchise, including TECELRA and the upcoming Lete-cel, to reach approximately $400 million. Adaptimmune also announced cost-saving measures by pausing investments in preclinical programs, aiming to reduce cash flow demands by $75 million to $100 million through 2028, in addition to $300 million from previous restructuring efforts. These initiatives are aligned with their goal of achieving cash flow breakeven by 2027.Adaptimmune Therapeutics Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Adaptimmune Therapeutics Reports Q4 2024 Business Update
Positive
Mar 20, 2025
Adaptimmune Therapeutics provided a business update for Q4 and the full year 2024, highlighting the successful launch momentum of its sarcoma franchise product, Tecelra, with 10 patients apheresed in Q1 2025 and 3 in 2024. The company achieved all manufacturing and supply goals and is on track to expand its network of Authorized Treatment Centers by the end of 2025. Additionally, Adaptimmune completed a corporate restructure in February 2025, implementing cost reductions for its PRAME and CD70 programs, and is evaluating strategic options to maximize shareholder value. The company aims for profitability by 2027 while addressing concerns about its ability to continue as a going concern.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.