Adaptive Biotechnologies Corporation (Nasdaq: ADPT) has announced its financial results for the fourth quarter and full year 2024, reporting significant growth in its Minimal Residual Disease (MRD) business while making strategic advances in its Immune Medicine segment.
The company reported total revenue of $179.0 million for 2024, representing a 5% increase from the previous year. The MRD business, which now accounts for 81% of the company's annual revenue, grew by 42% to $145.5 million compared to 2023.
"2024 was a year of strong execution, marked by key catalysts achieved in our MRD business and advancements in our Immune Medicine programs," said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. "Our MRD revenue grew by 42%, with a 35% increase in clonoSEQ test volume, and we nominated a lead autoimmune indication within our Immune Medicine business."
MRD Business Performance
The company's clonoSEQ test, which measures minimal residual disease in blood cancers, saw significant adoption growth with 76,105 tests delivered in 2024, a 35% increase over the previous year. In the fourth quarter alone, clonoSEQ test volume increased 34% year-over-year to 20,945 tests.
Adaptive also secured an updated Medicare Clinical Laboratory Fee Schedule (CLFS) Gapfill Determination for clonoSEQ of $2,007 per test, representing a 17% increase from the previous implied rate under the episode structure.
In a significant regulatory development, the FDA's Oncologic Drug Advisory Committee (ODAC) voted unanimously in favor of using MRD as a primary endpoint to support accelerated approval of new therapies for patients with multiple myeloma, potentially expanding the utility of Adaptive's testing platform.
The company also received expanded Medicare coverage for clonoSEQ in Mantle Cell Lymphoma (MCL), enabling the initiation of new promotional efforts for this indication.
Strategic Partnerships and Immune Medicine Progress
Adaptive Biotechnologies signed an exclusive strategic commercial partnership with NeoGenomics to cross-promote its clonoSEQ test alongside NeoGenomics' COMPASS and CHART hematopathology services, potentially expanding market reach.
In the Immune Medicine segment, which represented 19% of total revenue, the company completed multiple antibody mouse immunization campaigns in prioritized autoimmune indications and functionally tested selected antibodies targeting disease-causing targets. Importantly, Adaptive nominated a lead autoimmune indication to advance preclinical development of antibody therapeutic candidates.
Financial Performance
For the fourth quarter of 2024, Adaptive reported revenue of $47.5 million, a 4% increase from the same period in 2023. MRD revenue for the quarter was $40.1 million, up 31% year-over-year, while Immune Medicine revenue decreased 51% to $7.3 million.
Operating expenses for 2024 were $341.5 million, compared to $397.3 million in 2023, representing a 14% decrease. This reduction includes restructuring and long-lived asset impairment charges of $9.2 million in 2024.
The company's net loss for 2024 was $159.6 million, an improvement from the $225.3 million loss reported in 2023. Adjusted EBITDA loss was $80.4 million for 2024, compared to a loss of $116.4 million in the prior year.
As of December 31, 2024, Adaptive maintained a strong cash position with $256.0 million in cash, cash equivalents, and marketable securities.
2025 Outlook
Looking ahead to 2025, Adaptive Biotechnologies expects full-year revenue for the MRD business to be between $175 million and $185 million. The company projects full-year total operating expenses, including cost of revenue, to be between $340 million and $350 million, with a full-year cash burn between $60 million and $70 million.
"With strong momentum heading into 2025, we are focused on achieving profitability in MRD, advancing our therapeutics pipeline in Immune Medicine, and maintaining a durable cash position to support sustainable, long-term growth," Robins stated.
About Adaptive Biotechnologies
Adaptive Biotechnologies is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform disease diagnosis and treatment. The company's proprietary immune medicine platform reveals and translates the genetics of the adaptive immune system with scale, precision, and speed.
The company applies its platform to partner with biopharmaceutical companies, inform drug development, and develop clinical diagnostics across two business segments: Minimal Residual Disease (MRD) and Immune Medicine. Adaptive's commercial products and clinical pipeline enable the diagnosis, monitoring, and treatment of diseases such as cancer and autoimmune disorders.
