Adaptive Biotechnologies Provides Strategic Review Update and Announces Preliminary First Quarter 2024 Revenue
- Adaptive Biotechnologies concluded its strategic review by deciding to operate MRD and Immune Medicine businesses internally with increased independence.
- Preliminary revenue results for Q1 2024 show a total revenue increase of approximately 12% compared to Q1 2023, with MRD revenue up by about 47%.
- CFO Tycho Peterson will be leaving the company to pursue other opportunities, with Kyle Piskel succeeding him as the new CFO, bringing over 15 years of financial expertise.
- None.
The strategic review by Adaptive Biotechnologies, resulting in the decision to increase operational independence between the MRD and Immune Medicine businesses, signals a notable shift in the company's internal structure. By allocating dedicated resources and separate segment reporting, the company aims to enhance focus and potentially improve the financial performance of each unit. This reorganization could lead to improved transparency for investors, as they will be able to evaluate the performance of each business more clearly.
The preliminary revenue growth of 12% year-over-year, with a particularly strong performance from the MRD segment, suggests robust demand for Adaptive's offerings. The 47% revenue increase in the MRD segment is a positive indicator of the company's market penetration and the growing acceptance of its diagnostic tools. Investors may view this as a sign of Adaptive's growing competitive edge in the precision medicine field.
Adaptive's strong capital position, as mentioned in the update, is a critical factor for future growth. With adequate capital, the company is well-positioned to reach profitability in its MRD business and make targeted investments in Immune Medicine. The emphasis on profitability and strategic investment suggests a disciplined approach to financial management, which could be reassuring for shareholders concerned about cash burn in biotech firms.
The CFO transition is a noteworthy event, as the CFO plays a important role in financial stewardship and investor relations. Kyle Piskel's appointment as CFO, given his previous interim role and long tenure at Adaptive, is likely to ensure continuity in financial strategy. However, transitions in key executive positions can also introduce uncertainty and stakeholders will be closely monitoring the new CFO's impact on the company's financial health and strategic direction.
The strategic review's outcome underscores Adaptive's commitment to leveraging its expertise in the adaptive immune system. Operating the MRD and Immune Medicine businesses with increased independence could enable Adaptive to tailor its strategies to the unique challenges and opportunities of each sector. In the biotech industry, where rapid innovation is common, such flexibility can be a significant advantage.
Moreover, the focus on segment-specific reporting reflects an industry trend towards greater accountability and performance metrics. For Adaptive, this could enhance its ability to attract strategic partnerships or funding by showcasing the potential of each business unit individually. This level of detail in financial reporting is often appreciated by investors who specialize in biotech and look for clear indicators of growth and value creation within different segments of a company.
Announces CFO transition
SEATTLE, April 02, 2024 (GLOBE NEWSWIRE) -- Adaptive Biotechnologies Corporation (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, today announced a business update, including the conclusion of its recent strategic review, preliminary revenue for the first quarter ended March 31, 2024, and transition of the chief financial officer role.
Strategic Review Update
After evaluating a number of potential opportunities as part of the strategic review, Adaptive’s management team and board of directors concluded that the current best outcome to maximize shareholder value is to operate the MRD and Immune Medicine businesses internally within Adaptive while increasing their independence from one another by restructuring each business with dedicated resources and separate segment reporting. Importantly, under this structure, Adaptive preserves its strong capital position which will bridge the MRD business to profitability and support targeted investments in Immune Medicine.
Management will provide further details on the process and outcome of the strategic review during the conference call this afternoon.
First Quarter 2023 Preliminary, Unaudited Revenue Results
- Total revenue of approximately
$41 t o$43 million for the first quarter of 2024, an increase of approximately12% compared to the first quarter of 2023. - MRD revenue of approximately
$31 t o$32 million for the first quarter of 2024, an increase of approximately47% compared to the first quarter of 2023.
CFO Transition
Adaptive Biotechnologies announced that Tycho Peterson, chief financial officer (CFO), will be departing the company to pursue another opportunity. Kyle Piskel, who currently serves as the company’s Principal Accounting Officer and has held various financial roles at Adaptive over the past 8 years, will succeed Tycho as full-time CFO. Kyle previously served as the company’s Interim CFO from February to June 2022 and brings over 15 years of financial expertise to the role.
“I am excited to announce Kyle as our new chief financial officer,” said Chad Robins, chief executive officer and co-founder, Adaptive Biotechnologies. “I am confident he has the business knowledge to operate and execute, with the necessary guardrails in place, so that our team can maximize the full value of both MRD and Immune Medicine businesses. I would like to thank Tycho for his financial leadership and significant contributions to Adaptive over the past two years, including his leadership during the strategic review process. We wish him success in his next endeavor.”
“I’m proud of the great work we accomplished together through a critical time in the company’s evolution over the past two years,” said Tycho Peterson, chief financial officer, Adaptive Biotechnologies. “Adaptive has a bold vision and world class science and is just beginning to unlock the potential on both its MRD and Immune Medicine businesses. I am confident in the future prospects of the business, and I look forward to following Adaptive’s continued progress and success.”
Webcast and Conference Call Information
Adaptive Biotechnologies will host a conference call to discuss its business updates after market close on Tuesday, April 2, 2024 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. The conference call can be accessed at http://investors.adaptivebiotech.com. The webcast will be archived and available for replay at least 90 days after the event.
About Adaptive Biotechnologies
Adaptive Biotechnologies (“we” or “our”) is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our proprietary immune medicine platform reveals and translates the massive genetics of the adaptive immune system with scale, precision and speed. We apply our platform to partner with biopharmaceutical companies, inform drug development, and develop clinical diagnostics across our two business areas: Minimal Residual Disease (MRD) and Immune Medicine. Our commercial products and clinical pipeline enable the diagnosis, monitoring, and treatment of diseases such as cancer, autoimmune disorders, and infectious diseases. Our goal is to develop and commercialize immune-driven clinical products tailored to each individual patient.
Important Note Regarding Preliminary, Unaudited Financial Results
Adaptive Biotechnologies has not completed the preparation of its financial statements for the first quarter of 2024. The financial disclosures referenced in this release for the first quarter are preliminary and are thus inherently uncertain and subject to change as we complete our financial close processes for the first quarter of 2024. Adaptive Biotechnologies is in the process of completing its customary quarter-end close and review procedures as of and for the quarter ended March 31, 2024, and there can be no assurance that final results for this period will not differ from these estimates.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
ADAPTIVE INVESTORS
Karina Calzadilla, Vice President, Investor Relations
201-396-1687
investors@adaptivebiotech.com
ADAPTIVE MEDIA
Erica Jones, Associate Director, Corporate Communications
206-279-2423
media@adaptivebiotech.com
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