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Adaptive Biotechnologies (ADPT)
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Adaptive Biotechnologies (ADPT) AI Stock Analysis

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ADPT

Adaptive Biotechnologies

(NASDAQ:ADPT)

Rating:59Neutral
Price Target:
$11.50
▲(7.88%Upside)
The overall stock score is influenced heavily by financial performance challenges and valuation concerns, despite positive earnings call developments and technical trends. The company's strategic initiatives and shareholder confidence present potential for future growth, but current financial instability and valuation issues weigh down the score.
Positive Factors
Medicare Coverage
Expanded Medicare coverage of clonoSEQ for mantle cell lymphoma sets a path for broader surveillance testing in other core heme indications.
Product Pricing
The clonoSEQ tests saw an increase in average selling prices, contributing to overall revenue growth.
Revenue Growth
The company showed significant growth in clinical testing and pharma sequencing, supported by milestones recognized in the quarter.
Negative Factors
Cash Burn
ADPT has put explicit guardrails around limiting IM cash burn and made progress on initiatives to accelerate and drive sustained penetration in MRD.
Immune Medicine Business
Analyst was concerned about the cash burn from ADPT’s Immune Medicine business and awaited further penetration in MRD.
Valuation Concerns
The valuation has now aligned with comparable companies, suggesting a possible period of consolidation.

Adaptive Biotechnologies (ADPT) vs. SPDR S&P 500 ETF (SPY)

Adaptive Biotechnologies Business Overview & Revenue Model

Company DescriptionAdaptive Biotechnologies Corporation, a commercial-stage company, develops an immune medicine platform for the diagnosis and treatment of various diseases. The company offers immunoSEQ, a platform and core immunosequencing product that is used to answer translational research questions, as well as to discover new prognostic and diagnostic signals; and T-Detect COVID for the confirmation of past COVID-19 infection. It also provides clonoSEQ, a clinical diagnostic product for the detection and monitoring of minimal residual disease in patients with multiple myeloma, B cell acute lymphoblastic leukemia, and chronic lymphocytic leukemia, as well as available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers; and immunoSEQ T-MAP COVID for vaccine developers and researchers to measure the T-cell immune response to vaccines. In addition, the company offers a pipeline of clinical products and services that are used for the diagnosing, monitoring, and treatment of diseases, such as cancer, autoimmune conditions, and infectious diseases. It serves the life sciences research, clinical diagnostics, and drug discovery applications. Adaptive Biotechnologies Corporation has strategic collaborations with Genentech, Inc. for the development, manufacture, and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers; and Microsoft Corporation to develop diagnostic tests for the early detection of various diseases from a single blood test. The company was formerly known as Adaptive TCR Corporation and changed its name to Adaptive Biotechnologies Corporation in December 2011. Adaptive Biotechnologies Corporation was incorporated in 2009 and is headquartered in Seattle, Washington.
How the Company Makes MoneyAdaptive Biotechnologies generates revenue through several key streams. Firstly, the company offers immunosequencing services to academic research institutions and biopharmaceutical companies, providing insights into the adaptive immune system. This service is pivotal for research and development in personalized medicine and therapeutic interventions. Additionally, Adaptive Biotechnologies has developed clinical diagnostic products, such as clonoSEQ, which is used for detecting minimal residual disease in blood cancers, thus providing another revenue source. The company also benefits from partnerships and collaborations with major pharmaceutical companies, which help in expanding its research capabilities and market reach, contributing to its earnings.

Adaptive Biotechnologies Key Performance Indicators (KPIs)

Any
Any
Number of Clonoseq Tests Delivered
Number of Clonoseq Tests Delivered
Indicates the volume of Clonoseq tests performed, reflecting demand for this diagnostic tool and its contribution to revenue growth.
Chart InsightsAdaptive Biotechnologies is experiencing robust growth in clonoSEQ test volumes, with a record high of over 23,000 tests delivered recently. This momentum is driven by strategic payer contracting and increased clinical demand, contributing to a 36% year-over-year increase. The company's improved financial performance, including a significant reduction in cash burn and enhanced gross margins, positions it well for continued expansion. Management's focus on achieving an average ASP of $1,300 per test and becoming EBITDA positive underscores their confidence in sustaining this growth trajectory.
Data provided by:Main Street Data

Adaptive Biotechnologies Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 44.84%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted robust growth in MRD revenue, improved gross margins, and strategic advancements in payer contracting, along with a significant reduction in cash burn. However, there was a slight decline in Immune Medicine revenue due to expected reductions in Genentech amortization.
Q1-2025 Updates
Positive Updates
Strong MRD Revenue Growth
MRD revenue increased by 34% to $43.7 million, with clinical and pharma contributions of 65% and 35%, respectively. ClonoSEQ clinical revenue grew by 55% versus the prior year.
Sequencing Gross Margin Improvement
Sequencing gross margin improved by 17 percentage points year-over-year to 62%.
Reduction in Operating Expenses
Operating expenses decreased by 9%, highlighting disciplined cost management.
Cash Burn Reduction
Cash burn for the quarter was $23 million, a 38% improvement compared to the same period last year.
Record ClonoSEQ Test Volumes
Tests delivered reached a new record high of over 23,000 in the quarter, representing a 36% increase versus the prior year.
Successful Payer Contracting
Closed six key agreements with major national payers, including Aetna, Humana, and Anthem, aiming for an average ASP of $1,300 per test for fiscal year 2025.
Negative Updates
Decrease in Immune Medicine Revenue
Immune Medicine revenue was $8.7 million, down 6% from a year ago, driven by an anticipated 23% decrease in Genentech amortization.
Company Guidance
During the earnings call for Adaptive Biotechnologies, the company provided updated guidance reflecting improved financial performance and strategic initiatives. They reported a 34% increase in MRD revenue year-over-year, driven by growth in clinical volumes, ASPs, and pharma sequencing. The company raised its full-year MRD revenue guidance to $180-$190 million, with an expectation of approximately 30% clonoSEQ test volume growth. Sequencing gross margin improved by 17 percentage points to 62%, and operating expenses decreased by 9%, resulting in a cash burn reduction of 38% compared to the previous year. Adaptive's cash position was reported at $233 million, providing confidence in achieving strategic objectives without raising additional capital. The company aims to achieve an average ASP of $1,300 per test for fiscal year 2025, with expectations to be adjusted EBITDA positive in the second half of the year. The management highlighted continued progress in their immune medicine business and upcoming launches and integrations to further drive growth.

Adaptive Biotechnologies Financial Statement Overview

Summary
Adaptive Biotechnologies is experiencing revenue growth, but ongoing losses and negative cash flow present significant challenges. Despite a moderate debt-to-equity ratio, shrinking stockholders' equity and declining total assets indicate weakening financial stability.
Income Statement
45
Neutral
Adaptive Biotechnologies has shown revenue growth with a TTM (Trailing-Twelve-Months) revenue increase from $178.96M to $189.53M. However, persistent negative net income and EBIT margins indicate ongoing challenges in achieving profitability. The gross profit margin remains positive, highlighting effective cost management despite overall losses.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio is moderate, indicating manageable leverage. However, shrinking stockholders' equity and declining total assets suggest weakening financial stability. The equity ratio shows a decreasing trend, reflecting increased liabilities relative to assets.
Cash Flow
40
Negative
Negative free cash flow persists, though there is a slight reduction in operating cash outflows. The free cash flow to net income ratio remains unfavorable, indicating challenges in translating operations into positive cash flows. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue178.96M170.28M185.31M154.34M98.38M
Gross Profit106.88M94.72M127.40M105.04M75.85M
EBITDA-128.76M-189.27M-167.98M-193.34M-144.34M
Net Income-159.49M-225.25M-142.46M-205.61M-139.64M
Balance Sheet
Total Assets539.38M661.13M856.62M923.34M1.12B
Cash, Cash Equivalents and Short-Term Investments222.29M346.40M498.20M353.06M688.27M
Total Debt89.39M229.43M108.00M111.74M107.86M
Total Liabilities336.89M352.86M392.52M319.24M373.15M
Stockholders Equity202.71M308.40M464.17M603.99M743.27M
Cash Flow
Free Cash Flow-98.88M-167.02M-200.29M-254.47M-168.49M
Operating Cash Flow-95.21M-156.32M-183.94M-192.73M-149.68M
Investing Cash Flow77.79M129.65M2.90M181.21M-117.04M
Financing Cash Flow241.00K2.25M132.26M27.15M293.59M

Adaptive Biotechnologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.66
Price Trends
50DMA
10.42
Positive
100DMA
9.16
Positive
200DMA
7.76
Positive
Market Momentum
MACD
<0.01
Positive
RSI
46.83
Neutral
STOCH
25.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADPT, the sentiment is Positive. The current price of 10.66 is below the 20-day moving average (MA) of 11.30, above the 50-day MA of 10.42, and above the 200-day MA of 7.76, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADPT.

Adaptive Biotechnologies Risk Analysis

Adaptive Biotechnologies disclosed 75 risk factors in its most recent earnings report. Adaptive Biotechnologies 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

Adaptive Biotechnologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$1.77B-5.78%25.50%64.63%
60
Neutral
HK$17.07B6.10-7.44%2.88%11.55%-28.15%
59
Neutral
$1.62B-60.96%8.61%35.36%
57
Neutral
$1.10B-51.85%11070.12%32.07%
48
Neutral
$859.61M-93.70%-25.83%
42
Neutral
$1.46B-69.30%-68.13%
42
Neutral
$1.09B-51.85%0.71%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADPT
Adaptive Biotechnologies
10.75
6.24
138.36%
IOVA
Iovance Biotherapeutics
3.13
-6.12
-66.16%
SNDX
Syndax Pharmaceuticals
9.99
-14.50
-59.21%
ETNB
89bio
9.59
0.35
3.79%
IMCR
Immunocore Holdings
35.17
-4.96
-12.36%
PHVS
Pharvaris
20.05
2.65
15.23%

Adaptive Biotechnologies Corporate Events

Executive/Board ChangesShareholder Meetings
Adaptive Biotechnologies Holds Annual Shareholders Meeting
Positive
Jun 12, 2025

On June 10, 2025, Adaptive Biotechnologies held its annual shareholders meeting, where three proposals were voted on. These included the election of Chad Robins as a Class III director, an advisory vote on executive compensation for 2024, and the ratification of Ernst & Young LLP as the independent public accounting firm for 2025. All proposals were approved with significant support, reflecting strong shareholder confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (ADPT) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Adaptive Biotechnologies stock, see the ADPT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 17, 2025