Adaptive Biotechnologies Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Adaptive Biotechnologies Corp. has submitted its 2023 annual report (10-K), detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Adaptive Biotechnologies Corp (ADPT) filed a Annual Report (10-K) with the SEC on February 29, 2024. Adaptive Biotechnologies Corp. filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. Key financial data and operational details for the fiscal year 2023 are presented. The company's business address is 1165 Eastlake Ave E, Seattle, WA. Adaptive Biotechnologies Corp. was formerly known as Adaptive TCR Corp.

Why It Matters

For investors and stakeholders tracking Adaptive Biotechnologies Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Adaptive Biotechnologies' financial health, strategic initiatives, and risk factors for investors and stakeholders. The detailed financial statements and disclosures within the report are crucial for understanding the company's revenue streams, expenses, and overall market position in the biotechnology sector.

Risk Assessment

Risk Level: medium — Adaptive Biotechnologies Corp shows moderate risk based on this filing. The company operates in the highly regulated biotechnology sector, facing risks related to research and development, clinical trials, regulatory approvals, and market competition, as evidenced by the numerous disclosures in the 10-K.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Adaptive Biotechnologies' long-term growth prospects and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-29 — Filing Date (Date the 10-K was filed)
• 2023-01-01 — Fiscal Year Start (Beginning of the reporting period)
• 2836 — SIC Code (Standard Industrial Classification for Biological Products)

Key Players & Entities

• Adaptive Biotechnologies Corp. (company) — Filer of the 10-K
• Adaptive TCR Corp. (company) — Former name of the company
• Genentech Inc. (company) — Mentioned in relation to customer concentration risk
• Roche Group (company) — Mentioned in relation to customer concentration risk

FAQ

Industry Context

Adaptive Biotechnologies operates in the biotechnology sector, focusing on immune medicine. This industry is characterized by significant research and development, long product development cycles, and stringent regulatory oversight.

Regulatory Implications

The biotechnology industry is subject to extensive regulation by bodies such as the FDA, impacting product development, clinical trials, and market access. Compliance with these regulations is critical for companies like Adaptive Biotechnologies.

What Investors Should Do

1. Review the detailed financial statements for revenue breakdown and expense analysis.
2. Analyze the risk factors section for potential challenges and mitigation strategies.
3. Examine disclosures related to collaborations and partnerships for strategic insights.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing the annual overview of the company's performance and financial position as of December 31, 2023.

Key Financial Figures

• $0.0001 — ch registered Common stock, par value $0.0001 per share ADPT The NASDAQ Stock Mar
• $5.1 b — ressable market for the MRD business is $5.1 billion, $4.4 billion of which is derivab
• $4.4 billion — t for the MRD business is $5.1 billion, $4.4 billion of which is derivable from clinical tes
• $170.3 million — 2023 Results In 2023, our revenue was $170.3 million compared to $185.3 million in 2022, wit
• $185.3 million — revenue was $170.3 million compared to $185.3 million in 2022, with the reduction primarily r
• $397.3 million — uring the year. Operating expenses were $397.3 million during 2023, of which $25.4 million rep
• $25.4 million — re $397.3 million during 2023, of which $25.4 million represented non-cash impairment charges
• $385.5 million — cash impairment charges, as compared to $385.5 million during 2022. As of December 31, 2023, c
• $346.4 million — uivalents and marketable securities was $346.4 million. MRD Highlights We grew clonoSEQ te

Filing Documents

• adpt-20231231.htm (10-K) — 2994KB
• adpt-ex23_1.htm (EX-23.1) — 6KB
• adpt-ex31_1.htm (EX-31.1) — 16KB
• adpt-ex31_2.htm (EX-31.2) — 17KB
• adpt-ex32_1.htm (EX-32.1) — 10KB
• adpt-ex32_2.htm (EX-32.2) — 11KB
• adpt-ex97_1.htm (EX-97.1) — 49KB
• img63237988_0.jpg (GRAPHIC) — 416KB
• img63237988_1.jpg (GRAPHIC) — 616KB
• img63237988_2.jpg (GRAPHIC) — 22KB
• img63237988_3.jpg (GRAPHIC) — 2KB
• img63237988_4.jpg (GRAPHIC) — 428KB
• img63237988_5.jpg (GRAPHIC) — 493KB
• img63237988_6.jpg (GRAPHIC) — 148KB
• 0000950170-24-023095.txt (&nbsp;) — 15888KB
• adpt-20231231.xsd (EX-101.SCH) — 1626KB
• adpt-20231231_htm.xml (XML) — 1958KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 29 Item 1B. Unresolved Staff Comments 73 Item 1C. Cybersecurity 73 Item 2.

Properties

Properties 73 Item 3.

Legal Proceedings

Legal Proceedings 73 Item 4. Mine Safety Disclosures 73 PART II 74 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 74 Item 6. [Reserved] 74 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 75 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 87 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 88 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 118 Item 9A.

Controls and Procedures

Controls and Procedures 118 Item 9B. Other Information 120 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 120 PART III 121 Item 10. Directors, Executive Officers and Corporate Governance 121 Item 11.

Executive Compensation

Executive Compensation 121 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 121 Item 13. Certain Relationships and Related Transactions, and Director Independence 121 Item 14. Principal Accounting Fees and Services 121 PART IV 122 Item 15. Exhibits, Financial Statement Schedules 122 Item 16. Form 10-K Summary 124

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements that are based on management's beliefs and assumptions and on information available to management. Some of the statements in the "Business," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and elsewhere in this Annual Report on Form 10-K contain forward-looking statements. In some cases, you can identify forward-looking statements by the following 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. Although we believe we have a reasonable basis for each forward-looking statement contained in this Annual Report on Form 10-K, we caution you that these 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. Forward-looking statements expressed or implied in this Annual Report on Form 10-K include, but are not limited to, statements about: the success of our significant investments in our continued research and development of new products; the success of developing, commercializing and achieving commercial market acceptance of clonoSEQ, Adaptive Immunosequencing, T cell receptor ("TCR")-based cellular therapies, antibody-based therapeutics products and additional products beyond our portfolio; the potential for our identified research priorities to advance our proprietary immune medicine ("IM") platform or our future p

Business

Item 1. Business Overview Throughout our history, we have advanced the field of immune medicine by 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 immune medicine platform applies our proprietary technologies to read the diverse genetic code of a patient's immune system and understand precisely how the immune system detects and treats disease in that patient. We capture these insights in our dynamic clinical immunomics database and related antigen annotations, which are underpinned by computational biology and machine learning, and use them to develop and commercialize clinical products and services that can be tailored to the needs of individual patients. In 2023, we continued to pursue our business around two main areas: clinical assessment of minimal residual disease ("MRD") in lymphoid malignancies and immune medicine ("IM")-driven drug discovery and development. We believe the total addressable market for the MRD business is $5.1 billion, $4.4 billion of which is derivable from clinical testing. The IM business focuses its research and development investments on catalysts that achieve strategic priorities, including continued support of our partner, Genentech, Inc. ("Genentech"), in its development of TCR-based cell therapies in oncology as well as the discovery of novel druggable targets in autoimmunity. The MRD business focuses on the use of our highly sensitive, next-generation sequencing ("NGS") assay to measure MRD in patients with hematologic malignancies. It is comprised of our clonoSEQ clinical diagnostic test, offered to clinicians, and our clonoSEQ assay, offered to biopharmaceutical partners, to advance drug development efforts ("MRD Pharma"). clonoSEQ i

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