Q1 2021 Adaptive Biotechnologies Corp Earnings Call

May 5, 2021

[music].

Okay.

Yeah.

Good afternoon, and thank you for standing by and welcome to be adopted via technologies first quarter 2021 conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

I'll ask a question during the session you will need to press star one on your telephone keypad. If you require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker today can you check out there'll be a lot. Thank you. Please go ahead.

Thank you Terry and good afternoon, everyone I would like to welcome you to adaptive Biotechnologies first quarter 2021 earnings conference call.

Earlier today, we issued a press release reporting adaptive financial results for the first quarter of 2021.

The press release is available at Www Dot adaptive biotech dot com, we are conducting a lightweight kraft of this call and we'll be referencing slide presentation that has been posted to the investor section in our corporate website.

During the call management will make projections on other forward looking statements within the meaningful federal security law regarding future event on the future financial performance of the company.

These statements reflect management's current perspective on the business as of today.

Our results may differ materially from todays forward looking statements depending on a number of factors, which are set forth in our public filings with the SEC and listed in this presentation.

In addition, non-GAAP financial measures will be discussed during the call and a reconciliation from non-GAAP to GAAP metrics can be found in our earnings release joined.

Joining the call today are Chuck Robbins, our CEO and cofounder Junior Rubinstein, our president and Chad Cohen, our Chief Financial Officer.

Harlan Robins adaptive Chief Scientific officer uncle, Ponder will be available for Q&A.

With that I'll turn the call over to chop on that.

[laughter].

Thanks, Karina good afternoon, everybody and thank you for joining us on our first quarter 2021 earnings call.

And adaptive what has remained constant is our commitment to change.

Jesus are diagnosed and how drugs are discovered using our proprietary immune medicine platform.

This is supported by our culture, which is stronger than ever.

We can see that in a palpable energy and excitement we feel as we plan to begin the process of reentry and moving into our offices that are new and Seattle, San Francisco and New York.

I want to thank all our employees for their commitment to the company to each other and to the patients we serve.

As you can see on slide three our first quarter results reflect a strong start to the year and are a testament to the diversity of our platform and the capability of our team.

Revenue in the first quarter was $38 4 million, representing significant growth of 84% versus prior year and 27% versus prior quarter.

We saw substantial progress across our business areas, most notably we achieved an important milestone in our clinical diagnostics diagnostics franchise with TD to COVID-19, which received emergency use authorization in March for the confirmation of recent or prior charge koby to infection.

It is the first T cell based test to be validated by the FDA in March and important strategic product milestone for adaptive.

Importantly, cheetah check COVID-19 proved that T cells can detect disease, as well or better than other well known methodology.

Which one do you risk the future success of <unk> to detect.

In addition to the continued work ongoing to make to detect lyme available by year end. We are excited about new data. We have obtained that further supports the potential of T detect to diagnose patients with Crohn's disease. Importantly, these data not only confirmed the signal already identified last year.

But also show a clear distinction from colitis, a differentiation that is often challenging with current diagnostic tools and that could provide substantial benefit to clinicians and determining the early care path for patients.

We believe this is an important milestone in demonstrating the ability of key detect to differentially diagnose patients with share symptomatology.

Julie will share some of these data in our remarks, and we expect to share more details on a public forum later this year at both <unk> and gastrointestinal disease.

Related to <unk> pharma, which is accounted for within our research business I want to highlight the consistent quarter over quarter growth generated by our partnerships, which further supports the overall value of the <unk> brand to adaptive clinicians and our pharma partners.

This quarter, we book 7 million in milestones related to FDA regulatory approvals and which are currency assay was used as a regulatory endpoint by two of our pharma partners.

These milestones were contemplated as part of our full year guidance, but it's great to see these materializing and accelerating.

In addition, we recently added a new collaboration with Pfizer, a long standing partner, who will now use our <unk> assay to measure minimum residual disease at a clinical endpoint in clinical trials.

Regarding our immuno C. T map COVID-19 efforts, we're seeing greater uptake from our pharma and academic customers, who continue to be interested in understanding T cells and their role in immunity to the virus and or the immune response to vaccines.

The data we have generated from our partners is contributing to keep applications. Most notably Astrazeneca is new England Journal of Medicine publication included our data demonstrating that T cell responses may contribute to protection from COVID-19, even in the presence of lower neutralizing antibodies. This is one of several key use cases for T map COVID-19.

That are emerging as the dynamics of the pandemic continues to evolve.

And our drug discovery efforts with Genentech, while the suspension of the first shared cellular therapy candidate was on.

Unfortunate setback our collaboration remains strong and we are advancing towards the completion of the next shared candidate data package.

For the private product, we completed an initial proof of concept from the first debt of 15 cash cancer patients and we are working on many more this year. We are optimistic about the progress towards our ultimate vision, which net debt to enable the development of personalized cancer cell therapy, which if successful may transform cancer.

<unk>.

In summary, we had a strong start to the year and are confident in our ability to execute toward our 2021 goals.

As you can see we have multiple revenue sources and open ended growth opportunity stemming from the same platform. This is possible because we use the adaptive immune system as a source code to enable the development of diagnostics and therapeutics for almost any disease.

As we continue to achieve important development proof points debt that demonstrates the power of our platform our ability to become a clinical product development engine accelerates.

With that I'll hand, it over to Julie.

Thanks, Chad and thanks to all of you for joining us today.

I first want to highlight the strategic value of Cedar Tech COVID-19 to the future of the <unk> franchise on slide four.

Can you detect COVID-19 is the only FDA validated T cell based tests to confirm recent or prior Sars cov, two infection with 97% sensitivity at 100% specificity per our CV study.

It has also demonstrated 90% sensitivity up to 10 months post infection in a real world study in 76 convalescent patient.

Since launch we've had over 3000 consumers ordered the tests, including members from over 50, Concierge medicine practices and approximately 75% of users have opted in for the ongoing research we continue to conduct to better understand and unity to COVID-19.

Although the vaccine rollout will likely diminish the market to confirm prior natural infection. We intend to include a person's COVID-19 status and all future <unk>.

It may be informative for patients with a broad range of symptoms potentially spending from our past Sars COVID-19 two infection.

Most importantly, we believe the R&D and commercial investments made for key detect COVID-19 will accelerate the rate at which we develop and launch future <unk> application.

These include among others educating the FCA about the power of T cells, and our underlying technology, improving our models and techniques and building our commercial infrastructure to market the test and service customers all of which was accomplished in a very short period of time.

Now, let's talk on slide five about our vision for the evolution of the <unk> franchise.

As we have always said our key strategic focus for <unk> is to become one blood tests with many results.

In order to achieve this vision and help the millions of patients experiencing some sort of diagnostic Odyssey.

Need to move from disease specific diagnosis to differential diagnosis among patients with shared symptom and open it leads to population immunomedics.

While we are advancing towards the differential Gi diagnosis in R&D, we are advancing on key next steps for <unk>.

Specifically our goals are to complete the enrollment of the <unk> study.

These data on other clinical validation data from our Johns Hopkins collaborations and also see the pipeline as an LDC in our CLIA certified lab by year end.

We believe that see the top line can potentially double the efficacy of the current serology based standard of care testing for acute Lyme disease, which could benefit from 600000 people diagnosed with Lyme disease each year.

Preliminary data also show that see the Tech line may help identify patients with post treatment line disease syndrome, or <unk> estimated to be approximately 200000 patients per year. These individuals continue to have lasting symptoms, even after being treated with the standard of course against the biotic.

Turning to slide six here you can see some exciting preliminary data that supports expediting our path towards our first differential diagnostic in Gi conditions, which we believe will create a greater value proposition for patients.

Yes.

First we completed an additional cohort of patients with familial crohns type of Crohn's disease in the small intestine, which corroborate our early from signal.

On several hundred patients our classifier is already over 70% sensitive at 99% specificity for this type of Crohn's disease.

Importantly, these data also demonstrate that the T cells that recognize legal claims.

<unk> from the T cells that recognize colitis celiac COVID-19 among other diseases.

As you can see on the graph on the right our debt.

Since COVID-19 CCR classifier got more sensitive as the sample size.

Sample size increase.

To that end our next steps for our GI differential diagnostic is to evaluate and improve our signal based on the analysis of additional samples from over 5000, Crohn's and colitis patients, which are in house and will be completed and presented later this year.

Importantly, as a reminder, our assay can run on genomic DNA soared from retrospective samples debt with clinical metadata, which may serve as a clinical validation study for regulatory purposes.

Among the thousands of well characterized samples we are working through in the lab.

We'll also be able to understand how our signal performs in patients with other types of chronic disease that occur in other regions of the digestive tract and aim to identify a signal for colitis as well.

In parallel we are also engaging more deeply with Gi specialists to understand product market fit and with payers to arrive at a pricing strategy that contemplates a blood test that can reduce the diagnostic odyssey in an increasingly cost effective way.

There are as many as 22 million patients with Gi symptoms, who may see a primary care physician each year a few million dollars of these patients are escalated to a gi specialists.

Inflammatory bowel disease is suspected which is the population. We are initially focused on these.

These patients usually take around a year to receive a definitive diagnosis, which requires a biopsy and the whole diagnostic process can cost anywhere from 10 to $20000.

It is important to note that the current stool tests that are often used have challenging compliance rates and low specificity, leading to more biopsies than necessary. Therefore, our hope is to develop a differential diagnostic that can offer patients with similar Gi symptoms clarity early on in the testing journey from a blood draw.

Switching gears to quantify on slide seven.

The total value of the quantity brand through adaptive continues to increase as the combination of clinical testing with MRV sequencing revenue and regulatory milestones from our pharmaceutical partners materializes and scales over time.

On the left side you can see policy testing volumes of 4757 tests in the quarter grew 35% versus prior year and 6% versus the prior quarter.

Although the business is still recovering from the impact of COVID-19 at the end of 2020 and had a slow start to the year March was the highest volume month to date.

During the quarter orders were placed by 825 unique HCP spanning 231 accounts for approximately 2900 patients tested.

<unk> is now used in all 31, and <unk> cancer centers per one or more disease states and has been used to treat more than 16700 unique patients.

Importantly, with eight months, having passed since our FDA clearance in C. L. L. 17 of the 31 end CCN centers are now using kona seats for their <unk> patients.

In addition, we continued to drive expansion of payer coverage policies for CLO in Q1, reaching about 125 million covered lives.

As we wait for the Fda's review of our 500 10-K filing for <unk> in blood, we are already seeing that blood based testing accounts for 25% of quantity from usage in ALLL patients available to them as part of adaptive CLIA validated LDC survey.

Studies of policy can blood for other indications such as multiple myeloma and NHL continue and we will keep you informed on future readouts throughout the year.

Of note we are actively engaged with one of our pharma partners. This year to validate Qantas he can blood from <unk>, one of the largest NHL subtypes.

We continue to expect quality volume to double in 2021 with growth more heavily weighted towards the second half of the year.

However, the resolution of the COVID-19 overhang in the first half is an important factor to achieve our expectations and one that we are monitoring closely.

On the right side of the slide you can see the growing number of publicly disclosed pharma partnership where quality is used as the test of choice in clinical trials that incorporate <unk> as a clinical endpoint.

On these partnerships, we obtain sequencing revenue as part of our research business as well as regulatory milestone, which we record on development revenue.

Chad mentioned, we recognized $7 million in MRV milestones from two pharma partners and signed a new translational allergy collaboration with Pfizer, bringing our future available milestones to over $300 million.

Turning to life Sciences research on slide eight.

Our research business experienced significant recovery in the quarter, mostly driven by sequencing from pharma partners using both our immuno seek in MRV assays.

Additionally, new pharma bookings continue to grow at a significant pace.

Academic research, although a small contributor to the overall business experienced some lingering impact from the pandemic in the first months of the quarter as academic centers, we're still not fully operational for non COVID-19 research related research project.

However, recent order volumes are showing encouraging recovery at higher than pre pandemic levels.

Related to immuno seek or you will hit the team has been focused on getting new core lab, and our CRO partners Q squared and lab core trained and operationally set up to start using the cash we expect to bring on additional four labs and <unk> throughout the year.

Regarding immuno seek peanuts COVID-19, we are working with several top tier vaccine developers, including Astrazeneca, Oxford, Bill and Melinda Gates Foundation, and Johnson <unk> Johnson to assess the T cell response to various COVID-19 vaccines in their study.

Our recent data on Astrazeneca samples, which showed the vaccine caused expansion of CD four N CDA T cells to regions of the spike protein, including those not impacted by Varian was published in the New England Journal of Medicine last month we.

We expect more data to be published soon demonstrating utility of T cells to study vaccine efficacy in the wake of variants.

With the new variance on the rise we are seeing an uptake by pharma and academic partners, who are using immuno <unk> COVID-19.

To determine the efficacy of vaccines for the new variants.

Select new targets and evaluate next generation vaccines.

Generate data to support the clinical understanding of response to vaccination and immuno compromised patients and.

And understand the strength and duration of T cell versus antibody response post vaccination.

We will continue to provide updates on our findings as we progress.

Moving now to drug discovery on slide nine.

Starting with our collaboration with Genentech on the share program as disclosed earlier on the quarter Genentech suspended efforts on the first shared product as <unk>.

Previously mentioned it is important to note. The reason for this decision was specific to the target and not the TCR candidates.

Data within the public domain showed that the expression levels of the selected target was high and a healthy cell type that wasn't previously assessed within the preliminary safety analysis.

Out of an abundance of caution and in fact decided to skip this program and focus on the next set of TCR candidates in our true TCR library against different selected targets are.

Our next TCR candidate is in advanced stages, and we expect to complete and deliver this TCR data package switching on this year.

In parallel we continue to advance other candidates against a variety of targets within our TCR library that had been prioritized with genentech.

While we use blood from healthy donors for our true TCR approach with the share product, we use blood from cancer patients from our private product platform.

On the right side you can see we are also making good progress on our private product as Chad mentioned, we completed an initial proof of concept in which we identify tumor specific TCR is using blood from 15 cancer patients and we're currently reviewing these data with the Genentech team.

Initial results are encouraging and during the remainder of the year, we aim to process the blood of at least 60 cancer patients as we build our prototypes.

Totality of our patient specific data will allow us to establish our personalized approach with genentech and ultimately define our future private product.

In April we also officially opened our new South San Francisco lab space, adding more than 10000 square feet of dedicated space for our future end to end personalized product process. Importantly, this new space has the capacity to accommodate future first in human study.

We also continued to build out the product and process development teams and have started hiring dedicated ftes per this perfect.

Our collaboration with Genentech remains strong and continues full speed ahead, both with our shared and private product program.

Regarding our true antibody discovery approach as disclosed last quarter, we have been able to identify highly potent RVB antibodies that are robust against all known buried and predicted future value of Sars COVID-19 two <unk>.

In addition, we have promising non RVB S. One and S to neutralizing antibodies that could also be incorporated into a cocktail strategy that targets a different mechanism of action to inhibit the virus.

It is recognize that COVID-19 is now endemic in the population and effective therapies are still needed.

We continue our discussions with potential partners, who similarly believes that our antibody candidates may provide a differentiated solution in light of Newberry and.

In conjunction we are exploring additional applications of our true discovery approach and other diseases to maximize this valuable platform extension.

I'll now pass it over to Chad, who will provide you with a financial update.

Thanks Julie.

Turning to our financial results on Slide 10 total revenue in the first quarter was $38 4 million, representing an 84% increase from $20 9 million in the same period last year our.

Our revenue mix for the first quarter consisted of 39% of our revenues coming from our sequencing category and 61% coming from our development category.

Sequencing revenue in the first quarter was $15 2 million and increased 60% from the same period in 2020.

The growth was primarily driven by a $5 $2 million increase in revenue generated from our biopharmaceutical customers.

Research sequencing volume increased to 7000 in 2006 sequences up 17% from 6030 sequences delivered in the first quarter of 2020.

We are pleased with the strong start to the year, but as a reminder, we do see variability quarter over quarter and historical trends show most of our pharma revenues come in the second half of the year.

Clinical sequencing volume, excluding our to detect COVID-19 volume increased 35% to 4757 clinical tests delivered in the first quarter of 2021 up from 3518 clinical tests delivered during the same period in 2020.

Although we continue to make progress the COVID-19 headwinds from 2020 have it completely completely abated and we do expect some ongoing pressure on clinical volumes at least through the first half of the year.

Development revenue grew to $23 3 million in the first quarter up 103% from the same period last year.

As you will know the primary component of our development revenue today relates to the amortization of our Genentech upfront. However, the largest driver of our development revenue growth. This quarter was due to the recognition of $7 million in milestones from two key <unk> pharma partners, which came earlier than expected in the year.

Julie mentioned, we have over $300 million in MLD farmer milestones available to adaptive as our Biopharma partners utilize our mrna assay and the development and regulatory approval of the relevant drug programs.

Shifting now from our revenue to our operating costs total operating expenses for the first quarter of 2021 were $79 7 million, representing a 44% increase from $55 5 million in the same quarter last year.

Working down our operating expenses cost of revenue was $10 million during the first quarter of 2021 compared to $5 3 million for the first quarter last year, representing an approximate 87% increase.

Higher cost of revenue was primarily driven by increases in personnel and related labor and overhead costs as well as an increase in allocated facility expenses due to our new molecular lab and headquarters, which is currently under construction and quickly approaching approaching completion.

An increase in revenue sample volume and a mix shift to our Kronos seek assays also led to a higher materials costs, which were partially offset by usage of our production lab to process, a greater percentage of R&D samples.

Research and development expenses for the first quarter of 2021 was $33 8 million compared to $23 9 million in the first quarter of 2020, representing a 41% increase.

The growth was largely related to an increase in personnel costs with our software engineering innovation in South San Francisco cellular lab teams driving the period over period increase.

Sales and marketing expenses for the first quarter of 2021 were $20 6 million compared to 14 million in the same quarter last year, representing an increase of 47%.

Increased personnel costs contributed to the majority of this growth, particularly the expansion of our commercial teams to pretty <unk>. We also saw a larger investment strategic marketing efforts and shared corporate marketing services. These increases were partially offset by savings from travel and customer event related expenses.

General and administrative expenses for the first quarter of 2021 were $14 9 million compared to $11 8 million on the first quarter of 2020, representing an increase of 26%.

The increase was primarily driven by growth in headcount and related personnel costs.

Net loss for the first quarter 2021 was $40 6 million compared to first quarter of 2020 net loss of $31 4 million.

Adjusted EBITDA for the first quarter of 2021 was a loss of $30 1 million compared to a loss of 28 million in the same period of the prior year. We ended the quarter with $745 million in cash cash equivalents in marketable securities and we had no debt.

With respect to our full year guidance, we are reiterating our revenue range of $145 million to $155 million, which already contemplated the delivery of the MLD milestone will be recognized this quarter and excludes the IMD milestone that we no longer expect to recognize as a result of the suspension of the per share product.

We are really pleased with our first quarter results and although it is early in the year. We are confident in our ability to achieve our full year commercial and development goals. We look forward to providing you with further updates next quarter I will turn the call back to chatter on hey, Thanks, Jon as we are.

Outlined during the call and listed on Slide 11, we've achieved some important milestones already in 2021.

Many more will come in across all business areas during the rest of the year.

We feel really good about the momentum across all areas, we continue to deliver on our promise and demonstrate the capabilities of our platform.

With that I'd like to turn it back to the operator and open it up for questions.

Yeah.

Everyone. If you have a question at this time. Please press Star then the number one on your telephone keypad again Thats Star then the number one on your telephone keypad Galactic and limit yourself to one question and one follow up we should wait on call our SKU from your question.

Okay.

Your first question comes from the line of Brian Weinstein from William Blair. Your line is now open.

Hey, guys. Thanks for taking the questions good afternoon.

Right.

Okay.

Really interesting stuff on the Crohn's disease and the ability.

To distinguish between patients with <unk> can you talk about.

You guys from very excited about this COVID-19 can you talk rightfully. So can you talk about.

A little bit more about what trajectory potentially means for patients.

The enthusiasm that you guys have for this potential product.

Yes sure.

I'll start and then I'll hand, it over to Carlos if you want to dive deeper value.

The upshot is yes, we're super excited about the Crohn's data.

This data proves that T cells are Uber specific.

So we can eliminate false positives for each disease, we're going to get better and better on sensitivity, but this data. It's really the first data that provides the foundation for our thesis of going from.

Looking at single diseases at a time to moving upstream in our clinical paradigm. So that doctors are able to differentially diagnosed between diseases and remember that whole kind of weird.

As we outlined the whole vision for digitech going one is easier to time to differentiate diseases to ultimately getting to that concept of kind of one one sample with many results from a single blood sample.

On our way so we're really excited about what we're seeing and it really provides a foundation.

Great.

Following up with a question on on currency do you guys have talked a lot about investments that you guys have made in sales and marketing you have a lab corp relationship now that's supposed to help you out can you just talk about how those investments are going on in terms of the return that youre seeing on those or are you seeing.

Are you seeing there.

Yes.

Uh huh.

Right.

You got cut off there, but it was at the end of the question. The investments we're seeing in currency Julie do you want on Tiger.

Sure.

Brian Bill there.

Yes.

Im not sure but go ahead and answer the question, Okay sure absolutely, yes, we've been making.

Carefully dated investments in Clos, we get appropriate time to drive a doubling of volume as we as we set out to achieve this year and we believe we're well on our way the team.

Team is executing well, we're starting to see an accelerated ramp to get US. There. So for example, as I mentioned.

We've had really nice growth in multiple myeloma and even despite launching CLO in the middle of the pandemic, we are seeing a nice pickup in CLO as well.

About half of the on CCN centers using it now 30% of orders are already coming from the community, which is a new set of institutions that we're targeting.

Hap.

Really pretty much double the number of accounts.

<unk> CLO in the first quarter of the year. So we believe we're right on track with our plan.

It was always back back half weighted in 2021, we have also a lot of initiatives in place.

Peer to peer education more marketing towards patients with just about completed training the new cohort the new class of reps and so there'll be entering into the field. In fact, the team is together all week this week and.

And our national sales meeting and we just really believe all the steps we're putting in place are setting us up for success in 2021.

Your next question comes from the line of Derik de Bruin from Bank of America on your line is now open.

Hi, good afternoon. Thanks, just IV on for Derik today. Thank you for taking my question.

First on hi, so first on the current effects.

Highly appreciate if you could talk more about what needs to happen to reach the inflection point.

And get acceleration accelerated the growth for the volume.

And then also if you could talk about the progress on the other indications such as multiple myeloma and NHL. Thank you.

Yeah.

Sure.

Okay.

Roger.

Sure absolutely Hi, Ivy So no I mean, we're really very very focus heads down on growth now. So we've had great success opening up or activating accounts.

Majority of our target accounts in the academic centers now we're moving into the community.

Then we're really focused on deepening penetration in those existing accounts.

We've discussed we deployed a new.

<unk>.

Our sales teams are there in hematology specialists to drive adoption in the accounts, we're focused on speeding up time to ordering post activation doing that by clarifying use cases doing more periods in your education as I mentioned, we're also focused on focusing our our users on <unk> as many patients as possible at <unk>.

Diagnosis, because that makes it easier to incorporate <unk> more routinely and per.

And as we mentioned also we're focused on really moving the CLO community towards accepting MRV as part of the routine way in which they manage their patients. So all of those things are just examples of how we're focused on growing in each of the business. So as I mentioned multiple myeloma we've been.

We've been really educating that community about cornerstone for quite some time now and that growth continues at a really nice steady pace.

We expect is going to continue to pick up, particularly as we move on from COVID-19 and these patients can get back into treatment more regularly. We're hopeful also that our reps will be able to get back in person.

That debt.

I'm sure you're hearing from everyone is really just starting to happen now.

That's particularly important as we're moving into a new community setting.

And so that's kind of how we think about what really needs to happen to continue on the accelerated ramp throughout the year I think you asked about indications so we know.

We filed day, allowing blood.

On the FDA has kind of put many of those reviews on hold right now, but as I mentioned in my remarks.

We can offer a allowing blood in our CLIA lab and knock on effects happening quite regularly now multiple myeloma, we're still waiting on the data to readout from the trial and we're on.

We are increasing our focus in NHL now.

Validating in blood and also awaiting for a variety of clinical validation studies to read out that our medical team is overseeing as well as our pharma team in partnership with a couple of key partners, who are also quite interested in advancing corners on MRV in the NHL study.

Great. That's very helpful. Jenny I have two other quick questions on the financials.

So first one with other moving parts I apologize if I missed it in the prepared remarks, but wanted to see if you could provide an update.

Florida mix between sequencing revenue.

And development revenue in terms of debt total revenue percentage I think last quarter, you talk about maybe the sequencing accounting for 50% to 55% of the total so just curious given all the changes where does that too.

And I'll put my second one upfront on this fall.

On last quarter.

Talk about contemporary rating debt, increasing revenue from amortization from the upfront paid any.

Genentech, So wondering if there's an update there. Thank you so much.

Sure I'll take those so very quickly yes, we still believe we're in the range for the full year of sequencing revenues to come in at between $50 to 55% you saw really strong revenue activities from our.

Research.

Component of the business this quarter.

Some planned large projects it really came in a little sooner than expected. So we're effectively just reiterating that we still believe in that $50 to 55% as a percentage of the total from a sequencing perspective.

From a development perspective.

Sort of your second question.

Yes, it's still in the same sort of ballpark that we articulated on the last quarter. We had mentioned that modeling our development revenues for the full year should really start with looking at a third quarter 2020 revenues and not our fourth quarter ones. We still believe that we came in a little heavier than anticipated just given the robustness of the investor.

<unk> that we made in the quarter, but overall, we believe our development revenues are in line with what we previously articulated and we should see potentially some some modest growth, but it won't be like a ton coming off of this quarter's numbers.

On a quarter over quarter basis, so still in that sort of range that we provided last quarter in terms of the total amount of development from Genentech.

Great. Thank you very much day.

Yeah.

Your next question comes from the line of Tycho Peterson from Jpmorgan. Your line is now open.

Hey, good afternoon.

I'll start with immuno seek team at COVID-19, just curious now that you've had it out a couple of quarters, how big debt businesses and then how do you think about the durability there.

As we think about the very expects share vaccines and the like.

How do you think about the durability of the trends you're seeing there.

<unk>.

Sure maybe I'll start on.

I'll start I'll start with that and then Julie Julie feel free to jump in but.

One is for <unk> right now that business is actually.

Just starting to pick up in light of the understanding of T cell.

The T cell response to variance on the vaccines. So we are seeing net business in terms of kind of durability that depends on kind of your view of <unk>.

COVID-19 and being endemic in our population, but T map Fran.

Franchise as part of the research business, we see having quite a bit of durability.

Based on the fact that we can leverage kind of the math the antigen map that we're building with Microsoft to be able to inform kind of other parts of the business. So one area that we're particularly interested in and we think there's future opportunity is in the autoimmune space and what's exciting about debt is not just the ability.

On the research business, but also.

The ability for that data to potentially inform kind of therapeutic targets. So youre starting to see that crossover so.

In terms of durability and its kind of the future of that business, even even if the current COVID-19 opportunity winds are waiting we think there is opportunity in other other disease states and thats kind of on either.

One on one of the kind of major benefits of the antigen map.

Okay. That's helpful.

The Pfizer partnership I'm curious how meaningful that is you mentioned that EBITDA.

A couple of clinical programs.

Julian can you maybe comment on that one.

Sure.

Don't disclose the financials as you know it's much like many of the other that we signed were there.

Actually in this case there is some annual payments.

Sequencing revenue as well as milestones it is multiple myeloma translational partnership and so there'll be multiple compounds involved in the development program at Pfizer targeting multiple myeloma.

Okay.

And then on <unk>.

Genentech now that you've delivered the proof of concept for the <unk> cancer patients from the private product can you just talk a little bit about how you think about their evaluation process other.

Next next steps on that.

Divot product that we should be paying attention to.

Yeah.

<unk> sure.

So.

We're working together and in parallel on this since the.

Just as a reminder, the objective on the on the private product is to take the T cells that are attacking the cancer in a given patient.

The T cell receptor is out of those T cells identify them and then and then synthesize them and put them back into a set of.

Patients own T cells, <unk> and off the shelf product and some future day with the idea being that we'd have a say.

On target and potent therapy. So the two parts are on our side is really identifying very rapidly. The T cell receptors that are cancer specific and thats really the proof of principle that we are going through and were now have to do all the development work exactly how.

How much blood how is it stored what materials, we're going to start with.

To optimize the process and then and then.

All the all the other development processes related to the reagent used the actual workflow et cetera on at the same time.

Genentech is working on the actual cell therapy partner cell manufacturing part et cetera.

And together, we're discussing the science on a regular basis so.

No.

Preceding proceeding nicely, but we have.

It's a hard thing to do and we have a ways to go but the trains on the tracks and we're feeling.

Good about the direction we're going.

Okay. That's helpful. Thank you.

Thanks.

Yes.

Your next question comes from the line of Doug Schenkel from Cowen. Your line is now open.

Hey, everybody thanks for taking my questions.

I apologize in advance I know everybody on the <unk>.

Line is juggling on a little bit so I apologize if any of these have been answered.

My first is just on the day.

<unk> share product.

Okay.

Can you Youre breaking up can you try that again.

Okay.

No.

Sorry.

Do you see as soon as possible to dial back in on another line and will jump on it.

Yes, I will do that sorry about that.

No problem.

Yeah.

Your next question comes from the line of.

Can you just go on from Morgan Stanley. Your line is now open.

Hi, This is Hugo on the on the call for <unk>, Thanks for taking our questions.

You mentioned you will be sharing data for Crohn's Celiac later this year, what would you have us focus on with that presentation and what additional information should we should we be looking for.

Growth.

Yes so.

So far we've done a couple of different things, we had a one study, which we which was a smaller study a few hundred samples. When we first found are crumbs signal and we talked about that a little bit last year, but what were waiting for we now have.

5000 samples in house that includes.

Crohns and colitis, there's 600 colitis sample so so we're going to.

Finished sequencing, which we're almost done that data set and then we're going to analyze that data set.

And then put it together so we'll we'll present the data once that's the larger study is fully analyzed and we have the.

Really make sure we've got our eyes and cross our Ts on.

All the science.

Got it thank you and then.

A follow up.

Given the good traction youre seeing for <unk> in blood what are you seeing in terms of update for Kalana testing and blood outside of CLO. I think you might have mentioned al could you remind me if you have.

Okay.

Sure.

Yes.

Yeah I think.

Yeah, we have about.

25% of our of our usage in a L. L. A in blood, which is in our CLIA lab.

This is not an FDA.

Cleared label.

Label expansion at this time.

Okay great.

And then.

How about.

And then as well.

So that's a much smaller at this stage multiple myeloma is a sort of a different biology of the disease of the bone marrow.

The data is still emerging and the trial is still reading out at the momentum so that that one is not quite as advanced yet in blood as some of the other indications.

Great. Thank you so much.

Sure.

Your next question comes from the line of Doug Schenkel from Cowen. Your line is now open.

Okay.

Again from you guys you all hear me a little bit better now you sound great job much better.

Okay.

The landline was messed up and down on myself, but anyway, sorry about that.

So again apologies in advance if some of this was covered earlier.

On the <unk> tech share product on.

Just wondering if youre starting to get any positive signals that fortify our conviction that this is in fact a bonafide.

Joanna channel, whether it's mutated or not mutated and if not at what point you think youll have such a signal.

I'm, just wondering and maybe this has been going on all along but it's there.

Has there been some consideration of maybe accelerating the pace of looking at targets like this in parallel with that I'd assume to some extent that's already happening, but just given no matter. How great. You guys are given limited biological on safety information around any given target.

I'm just wondering if there are ways being contemplated that might increase the probability of success just just.

The increase in the numbers.

Using that as a means to more quickly reach IND submission.

Sure So starting with your first question.

Adaptive upfront.

Confirms and this has to be honest one of our specialties, we confirm that debt.

Antigens that we're going after as targets are processed and presented and immunogenic. So we know even before we do the bulk of our work on characterization that these are really good antigens to be going after.

And we have done that for many hundreds of targets.

On the discovery side, then the next step is sort of.

Then searching for the absolute best Keith receptors that hit those targets, which we have been done also with I would say, maybe not quite as many but still well over 100 different targets.

And then the next step is is working with Genentech, where we we have to pick out the subset that.

Yes.

Okay.

Optimal clinical use meeting minutes.

<unk>.

Is it okay on all their clinical parameters average can recruit the patients. These mutations <unk> tumors on good answers is occurring.

<unk>.

If deemed it we together I guess if deemed it safe.

And all the other parameters that need to be considered.

And so yes.

Here on your point on the second question and yes, we are parallel tracking more than one on the ladder step.

For the reason you said.

There is a lot of work that goes into each one on the adaptive side, we're able to do many on the discovery side in parallel.

But theres a theres a whole clinical program needs to be put around each one so the farther we get down the line the more work on the tighter the funnel, but we are parallel tracking more than one.

Okay. Thank you for that and then on a personalized T cell therapeutics.

On that program.

You may have covered this especially given I heard.

Earlier question that I think gone at this but I believe you were targeting to share proof of concept data and launch your prototype lab in the first quarter or close to that did that happen.

Yes.

I mean, we shared that with Genentech I don't know that were not going to share it publicly but yes. We've we've completed our first pilot experiment and were.

Have shared data with Genentech and <unk>.

Now.

Having in fact, we've been since then have done multiple other samples we had targeted a new 15 patients, but we're now well beyond that and we're progressing forward and we have regular discussions with the scientific team at Genentech as well as the clinical data from the prototype App.

Yes, sorry on the prototype lab.

<unk> is now built out and we've completed construction and were.

Net now is the real development effort on locking down the.

The work flow through that lab et cetera, and we've hired some of the team we have to hire some of the more of the team out.

But all the equipments and it's the lab is ours on it.

Fully operational.

And it sounds like with that in mind. Your you are in good position to hit your target of 60 patients by the end of the year.

Oh, yes, yes.

Okay. Okay, Alright, that's great. Thank you again and sorry from the technical challenges.

Thanks, Doug.

Yeah.

Your next question comes from the line of Mark Massaro from <unk>. Your line is now open.

Hey, guys. Thank you for the questions and congrats on a strong quarter I guess my first one is similar to Doug's question and that is.

There are some investors that seem to have concerns about your ability.

On to advance.

Share target and so I guess for those that are skeptical can you just maybe address.

I know Julie mentioned that the first target was for the first candidate with specific to the target.

But.

But I'm wondering if you can provide a little more detail around maybe picking from our neo antigen as opposed to a tumor associated antigen and just give us a sense for what steps you guys can do to.

To mitigate any.

Potential risk.

Items in the future.

Sure so.

The.

<unk>.

No matter what target. There is there is a whole set of safety procedures that we need to.

And share and so the.

The risk profile is different if it's a tumor associated antigen versus.

Our neo antigen because the neo antigen is not five.

<unk> found in normal human genome.

But there are also.

Likely some pretty safe tumor associated antigens.

But.

The primary consideration.

I think we are in better spot in a lot of different ways, which is that.

The.

Theres been a lot more work done on what's normally expressed in many many different tissues now just sort of the public data has increased significantly. So so we're able to do a lot more upfront thing.

Safety considerations in.

I'm feeling quite confident that our next.

Target is.

It has very very low on safety risk relatively speaking.

Okay and my second question.

Congrats on realizing the $7 million milestone payment in the quarter, obviously I was not expecting that.

So <unk> clearly is a promising biomarker.

It can be used as a surrogate endpoint and can help with MLD enriched studies can you just give us a sense I don't know if you can give us any detail as far as.

What.

How specifically Kronos equals used was it in an adjuvant or.

Metastatic setting.

And can you also speak to the pipeline or the size of additional studies that you could realize or pull forward milestones in the future.

Sure Joe as you on Georgia.

Sure so.

I can just tell you that the what's public.

That the.

And then I guess I would suggest maybe leading into the label just though we don't say anything we're not supposed to say.

But one of them was with canopy for start closer in multiple myeloma and the second one is our beckmann bms's at Beckman for CMA khaki and multiple myeloma.

And there are secondary endpoints.

Great and then in terms of the pipeline.

Sure.

So we what we've disclosed is theres over $300 million in the pipeline and obviously there is kind of the puts and takes as we accomplish those milestones income burn it down.

Income from kind of off of that number but at the same time, we continue to kind of replenish that number with additional studies that we signed.

Obviously, the hope is is that the kind of replenishment outstrips the.

The amount were burning down.

<unk>.

Over time, but we've done those milestones are available to us from used frankly in a variety of different shutting one of the big kind of catalyst would be.

FDA approved multiple myeloma and.

Endpoint.

In trials that would allow us to kind of be able to have access to a significant amount of those milestones over time. The only thing I would add to that is that those milestones cut across about a half a dozen or so different partners with about a dozen or so projects across those partners.

Okay. Thanks, so much.

Welcome to Wright.

Your next question comes from the line of Davita Wattenberg from Guggenheim Securities. Your line is now open.

Thank you for taking the question.

Stick with the Mardi.

Area. So has there been any new MRV.

Interest based on all the other states that are going out in solid tumor I realize it's a completely different market for you, but one other interesting things that we've been finding out from all of our oncology surveys is that theres a lot of.

On colleges that are key months that deal with solid tumor, sometimes and vice versa. So just just curious if theres been any kind of on.

Additional interest, but just with the amount of data that's coming out all over the space.

Yes, I'll take that day.

And.

It's just maybe as a tip of the iceberg of this and I do think debt, we will kind of benefit from that it is touch on monitoring residual disease kind of in general are using genomics to be able to incorporate into kind of patient care continue in particular as you mentioned this would be.

In the community setting where.

An oncologist is treating all commerce, so once they get comfortable with the concept of monitoring in general whether they're monitoring in solid tumors and using kind of a variety of I wont mention any one by neighborhood a variety of different tests available in solid tumor monitoring that kind of piques their interest and to be able to also monitor in.

In liquid tumors so.

No.

Especially on the community.

<unk> don't want to be kind of on the cutting edge on the flip side. They also don't want to be kind of left behind so I think you're just you're hitting the point, where kind of where we're just starting to see it move kind of from the kind of net the true kind of bleeding edge thought leaders into.

Hopefully kind of crossing over to Chad to mainstream and I do think we will benefit from kind of MRV.

Broad based category, but I would say, it's very early and we're just starting to see that because as Julie mentioned, we and others of our peers haven't been able to go in yet and do that education when that happens as a as a collective group I think that all boats will rise.

Raj on the tide with the with the difference being where.

We're kind of a one company that is really focused on on okay.

On the hematologic malignancies in MRV in that space, where I think there's many different technologies that are looking at MRI and solid solid tumor monitoring.

Yes.

Let's let's stick on that concept because I think you are very differentiated in that you have a specialized technology, where you are actually looking for the b cell and b cell mediated cancer on.

And I think youre in net market all by itself now I mean, the reality is is that you are dealing with T marks on our on a very regular basis.

If you indeed would maybe when that call point do you think maybe you would add approaches outside of honestly just to complement the fact that you already have that sales force.

Such a good reputation with the group.

And I'll stop there after that.

Yes.

It's a good question, it's a good question dividend.

We continue to look for ways to add.

Value to the portfolio in the bag. So I would just say in Canada.

We got a kind of a search and evaluation team out there that continues to look at opportunities to.

To add incremental value to our offerings and I'd probably leave it at that for now.

Thank you so much.

You bet.

Our last question comes from the line of Richard from Goldman Sachs. Your line is now open.

Great. Good afternoon, and thanks for taking our question. This is Elizabeth on for Celgene.

Just a quick question for NASA on <unk>. So you mentioned youre exploring that in other diseases, maybe if you could just expand on net and then both the near term on the long term strategy for the program.

Harlan yes so.

This is a great question and this is very much on the developmental stage, but not really charged our research team with.

Asking the question.

He.

Starting with the principal debt are real advantages that we have.

Really deep scale, meaning we can we can sequence because of our sequencing capability, we're able to go through many many many different antibodies in a given sample. So the question is where does that particular advantage on.

Allow us to find antibodies that debt.

Which.

Which would which would be differentiated from what other groups can do and so.

I don't think were at the point, where I feel comfortable giving us kind of the exact direction, we're going yet, but I think the team has come up with.

On some quite good directions, and we're and we're going to resource it.

And we are resourcing it.

And Phil feel like this is something that we're going after I think in general get back to you on.

Publicly but we're feeling good about.

The program in general.

Great. Thank you.

I am showing no further questions at this time and that concludes our conference call. Thank you all for joining you may now disconnect.

[music].

Good afternoon, and thank you for standing by and welcome to be adaptive Biotechnologies first quarter 2021 conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session Gelastic watch enjoying day session you will need to press.

Star one on your telephone keypad, if you require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker today cause your neck out there'll be a lot. Thank you. Please go ahead.

Thank you Terry and good afternoon, everyone I would like to welcome you to adaptive Biotechnologies first quarter 2021 earnings conference call.

Earlier today, we issued a press release reporting adaptive financial results for the first quarter of 2021.

The press release is available at Www dot adopted by a pick up from where.

We're conducting a lifeline customers. This call I will be referencing a slide presentation that has been posted to the investor section in our corporate web site.

These statements reflect management's current perspective on the business today.

Our results may differ materially from todays forward looking statements depending on a number of factors, which are set forth in our public filings with the FCC and listed in this presentation.

In addition, non-GAAP financial measures will be discussed during the call and a reconciliation from non-GAAP to GAAP metrics can be found in our earnings release joined.

Joining the call today are Chuck Robbins, our CEO and cofounder, you'll never been standard our president and Seth Cohen, our Chief Financial Officer.

Harlan Robins adaptive Chief Scientific officer uncle, Ponder will be available for Q&A.

With that I'll turn the call over to chop on them.

Thanks Karina good.

Good afternoon, everybody and thank you for joining us on our first quarter of 2021 earnings call.

And adaptive what has remained a constant is our commitment to change on.

Diseases are diagnosed and how drugs are discovered using our proprietary immune medicine platform.

This is supported by our culture, which is stronger than ever.

We can see that from a palpable energy and excitement we feel as we plan to begin the process of reentry and moving into our offices that are new and Seattle, San Francisco and New York.

I want to thank all our employees for their commitment to the company to each other and to the patients we serve.

As you can see on slide three our first quarter results reflect a strong start to the year and are a testament to the diversity of our platform and the capability of our team.

Revenue in the first quarter was $38 4 million, representing significant growth of 84% versus prior year and 27% versus prior quarter.

We saw substantial progress across our business areas, most notably we achieved an important milestone in our clinical diagnostics diagnostics franchise with teachers on COVID-19, which received emergency use authorization in March for the confirmation of recent or prior Sars COVID-19 two infection.

It is the first T cell based test to be validated by the FDA and marks an important strategic product milestone for adaptive.

Importantly, cheetah check COVID-19 proved that T cells can detect disease, as well or better than other well known methodology.

Which one do you risk the future success of <unk>.

In addition to the continued work ongoing to make to detect lyme available by year end. We are excited about new data. We entertain that further supports the potential of <unk> to diagnose patients with Crohn's disease. Importantly, these data not only confirmed the signal already identified last year.

We believe this is an important milestone in demonstrating the ability of Cheetah Tech.

Differentially diagnose patients with share symptomatology.

Julie will share some of these data in our remarks, and we expect to share more detail on a public forum later this year on both <unk> and gastrointestinal disease.

Related to <unk> pharma, which is accounted for within our research business.

I want to highlight the consistent quarter over quarter growth generated by our partnerships, which further supports the overall value of the <unk> brand to adaptive clinicians and our pharma partners.

This quarter, we book 7 million in milestones related to FDA regulatory approvals and which are currency assay was used as a regulatory endpoint by two of our pharma partners.

These milestones were contemplated as part of our full year guidance, but it's great to see these materializing and accelerating.

In addition, we recently added a new collaboration with Pfizer, a long standing partner, who will now use our <unk> assay to measure minimal residual disease at a clinical endpoint in clinical trials.

Regarding our immuno C. T map COVID-19 efforts, we are seeing greater uptake from our pharma and academic customers, who continue to be interested in understanding T cells and their role in immunity to the virus Android the immune response to vaccines.

The data we have generated for our partners is contributing to keep applications. Most notably Astrazeneca is new England Journal of Medicine publication included our data demonstrating that T cell responses may contribute to protection from COVID-19, even in the presence of lower neutralizing antibodies. This is one of several key use cases for T map COVID-19.

That are emerging as the dynamics of the pandemic continues to evolve.

And our drug discovery efforts with Genentech, while the suspension of the first shared cellular therapy candidate was on our unfortunate setback. Our collaboration remains strong and we are advancing towards the completion of the next share candidate data package from.

For the private product, we completed an initial proof of concept from the first set of 15 cash as cancer patients and we are working on many more this year. We are optimistic about the progress towards our ultimate vision with genentech to enable the development of personalized cancer cell therapy, which if successful may transform cancer.

In summary, we had a strong start to the year and are confident in our ability to execute toward our 2021 goals. As you can see we have multiple revenue sources and open ended growth opportunity stemming from the same platform.

This is possible because we use the adaptive immune system as a source code to enable the development of diagnostics and therapeutics for almost any disease.

As we continue to achieve important development proof points debt that demonstrates the power of our platform our ability to become a clinical product development engine accelerates.

With that I'll hand, it over to Julie.

Thanks, Chad and thanks to all of you for joining us today.

I first want to highlight the strategic value of Cedar Tech COVID-19 to the future of the <unk> franchise on slide four.

So you don't have COVID-19 is the only FDA validated T cell based tests to confirm recent or prior Sars cov, two infection with 97% sensitivity at 100% specificity per our CV study.

It has also demonstrated 90% sensitivity up to 10 months post infection in a real world study in 76 convalescent patient.

Although the vaccine rollout will likely diminish the market to confirm prior natural infection. We intend to include a person of COVID-19 status and all future <unk> detector.

It may be informative for patients with a broad range of symptoms potentially spending from our past Sars COVID-19 two infection.

Most importantly, we believe the R&D and commercial investments made for T. The Tech COVID-19 will accelerate the rate at which we develop and launch future seat attacks application.

These include among others educating the FDA about the power of T cells, and our underlying technology, improving our models and techniques and building our commercial infrastructure to market the test and service customers all of which was accomplished in a very short period of time.

Now, let's talk on slide five about our vision for the evolution of the <unk> franchise.

As we have always said our key strategic focus for <unk> is to become one blood tests with many results.

In order to achieve this vision and help the millions of patients experiencing some sort of diagnostic Odyssey, we need to move from disease specific diagnosis to differential diagnosis among patients with shared symptoms and ultimately the population immunomedics.

While we are advancing towards the differential Gi diagnosis in R&D, we are advancing on key next steps for <unk> testing in line disease.

Pacifically our goals are to complete the enrollment of Union fence line study published these data on other clinical validation data from our Johns Hopkins collaborations and also see the top line as an LDC in our CLIA certified lab by year end.

Preliminary data also show that Cedric Pech line may help identify patients with post treatment line disease syndrome, or <unk> estimated to be approximately 200000 patients per year. These individuals continue to have lasting symptoms, even after being treated with the standard course against abiotic.

Yes.

First we completed an additional cohort of patients with familial crohn's or type of Crohn's disease in the small intestine, which corroborate our early crohn's signals from several hundred patients. Our classifier is already over 70% sensitive at 99% specificity for this type of Crohn's disease.

Importantly, these data also demonstrate that the T cells that recognize loyal clubs are distinct from the T cells that recognize colitis cilia COVID-19 among other diseases.

As you can see on the graph on the right are distinct COVID-19 CCR classifier got more sensitive as the sample size.

Ample size increase.

To that end our next step for our GI differential diagnostic is to evaluate and improve our signal based on the analysis of additional samples from over 5000, Crohn's and colitis patients, which are in house and will be completed and presented later this year.

Importantly, as a reminder, our assay can run on genomic DNA soared from retrospective samples debt with clinical metadata, which may serve as a clinical validation study for regulatory purposes.

Among the thousands of well characterized samples we are working through in the lab.

We will also be able to understand how our signal performs in patients with other types of processes that occur in other regions of the digestive tract and aim to identify a signal for colitis as well.

There are as many as 22 million patients with Gi symptoms, who may see a primary care physician each year a few million dollars of these patients are escalated to a gi specialists in.

Inflammatory bowel disease is the second which is the population we are initially focused on.

These patients usually take around a year or two receive a definitive diagnosis, which requires a biopsy and the whole diagnostic process can cost anywhere from 10 to $20000.

It is important to note that the current stool tests that are often used have challenging compliance rates and low specificity, leading to more biopsies spend necessary. Therefore, our hope is to develop a differential diagnostic that can offer patients with similar Gi symptoms clarity early on in the testing journey from a blood draw.

Switching gears to quantity on slide seven.

The total value of the quantity brand through adaptive continues to increase as the combination of clinical testing with <unk> sequencing revenue and regulatory milestones from our pharmaceutical partners materializes and sales over time.

On the left side you can see policy testing volumes of 4757 tests in the quarter grew 35% versus prior year and 6% versus the prior quarter.

Although the business is still recovering from the impact of COVID-19 at the end of 2020 and had a slow start to the year March was the highest volume month to date.

During the quarter orders were placed by 825 unique hcp's spanning 231 accounts for approximately 2900 patients tested.

Quality is now used in all 31 MCC on cancer centers per one or more disease states and has been used to treat more than 16700 unique patients.

Importantly, with eight months, having passed since our FDA clearance in C. L. L 17 of the 31 M. CCN centers are now using Kona seats for their C. L L patients.

In addition, we continued to drive expansion of payer coverage policies for C. O L. In Q1, reaching about 125 million covered lives.

As we wait for the Fda's review of our 500 10-K filing for a O L. In blood, we are already seeing that blood based testing accounts for 25% of quantity from usage in ALLL patients available to them as part of adaptive CLIA validated LDC service.

Studies of policy can blood for other indications such as multiple myeloma and NHL continue and we will keep you informed on future readouts throughout the year.

Of note we are actively engaged with one of our pharma partners. This year to validate policy can blood from <unk>, one of the largest NHL subtypes.

We continue to expect policy volume to double in 2021 with growth more heavily weighted towards the second half of the year.

However, the resolution of the COVID-19 overhang in the first half is an important factor to achieve our expectations and one that we are monitoring closely.

On the right side of the slide you can see the growing number of publicly disclose pharma partnerships, where quality is used as the test of choice and clinical trials that incorporate MRV as a clinical endpoint.

On these partnerships, we obtain sequencing revenue as part of our research business as well as regulatory milestone, which we record as development by day.

Turning to life Sciences research on slightly.

Our research business experienced significant recovery in the quarter, mostly driven by sequencing from pharma partners using both our immuno seek an M. R D assays.

Additionally, new pharma bookings continue to grow at a significant pace.

Academic research, although a small contributor to the overall business experienced some lingering impacts from the pandemic in the first months of the quarter as academic centers, we're still not fully operational for non COVID-19 research related research project.

However, recent order volumes are showing encouraging recovery at higher than pre pandemic levels.

Related to immuno seek are you. Okay. The team has been focused on getting new core lab, and our CRO partners Q squared and lab core trained and operationally set up for to start using the kits, we expect to bring on additional core labs and see how those throughout the year.

Regarding immuno 16 up COVID-19, we are working with several top tier vaccine developers, including Astrazeneca, Oxford, Bill and Melinda Gates Foundation on Johnson and Johnson to assess the T cell response to various COVID-19 vaccines in their studies.

Our recent data on Astrazeneca samples, which showed the vaccine cause expansion of CD four N CDA T cells to regions of the spike protein, including those not impacted by Varian was published in the New England Journal of Medicine last month we.

We expect more data to be published soon demonstrating utility of T cells to study vaccine efficacy in the wake of variants.

With the new variance on the rise we are seeing an uptick by pharma and academic partners, who are using immuno <unk> COVID-19.

To determine the efficacy of vaccines for the new variant.

Okay.

Select new targets and evaluate next generation vaccines.

Generate data to support the clinical understanding of response to vaccination and immuno compromised patients.

And understand the strength and duration of T cell versus antibody response post vaccination.

We will continue to provide updates on our findings as we progress.

Moving now to drug discovery on slide nine.

Starting with our collaboration with Genentech on the share program.

As disclosed earlier on the quarter Genentech suspended efforts on the first shared product.

As previously mentioned it is important to note. The reason for this decision was specific to the target and not the TCR candidates.

Recent data within the public domain showed that the expression levels of the selected target was high and a healthy cell type that wasn't previously assess within the preliminary safety analysis.

Out of an abundance of caution and in fact decided to skip this program and focus on the next set of TCR candidates and our true TCR library against different selected target.

Our next TCR candidate is in advanced stages, and we expect to complete and deliver this TCR data package to Genentech this year.

In parallel we continue to advance other candidates against a variety of targets within our TCR library that had been prioritized with genentech.

While we use blood from healthy donors for our true TCR approach with a share product, we use blood from cancer patients for our private product Russell.

Initial results are encouraging and during the remainder of the year, we aim to process the blood of at least 60 cancer patients as we build a prototype.

Totality of our patient specific data will allow us to establish a personalized approach with genentech and ultimately define our future private product.

We also continued to build out the product and process development team and have started hiring dedicated ftes for this purpose.

Our collaboration with Genentech remains strong and continues full speed ahead, both with our shared and private product program.

Regarding our true a D antibody discovery approach has disclosed last quarter, we have been able to identify highly potent RVB antibodies that are robust against all known buried and predict the future value of Sars COVID-19. Two in addition, we have promising non RVB F one and as to neutralizing antibodies.

That could also be incorporated into a cocktail strategy that targets different mechanisms of action to inhibit the virus.

It is recognize that COVID-19 is now endemic in the population and effective therapies are still needed as such we continue our discussions with potential partners, who similarly believes that our antibody candidates may provide a differentiated solution in light of Newberry.

In conjunction we are exploring additional applications of our true discovery approach and other diseases to maximize this valuable platform extension.

I'll now pass it over to Chad, who will provide you with a financial update.

Thanks Julie.

Turning to our financial results on Slide 10 total revenue in the first quarter was $38 4 million, representing an 84% increase from $20 9 million in the same period last year our.

Our revenue mix for the first quarter consisted of 39% of our revenues coming from our sequencing category and 61% coming from our development category.

Sequencing revenue in the first quarter was $15 2 million and increased 60% from the same period in 2020.

The growth was primarily driven by a $5 $2 million increase in revenue generated from our biopharmaceutical customers.

Research sequencing volume increased to 7000 in 2006 sequences up 17% from 6030 sequences delivered in the first quarter of 2020 were.

Although we continue to make progress the COVID-19 headwinds from 2020 habits completely completely abated and we do expect some ongoing pressure on clinical volumes at least through the first half of the year.

Development revenue grew to $23 3 million in the first quarter up 103% from the same period last year.

As you well know the primary component of our development revenue today relates to the amortization of our Genentech upfront. However, the largest driver of our development revenue growth. This quarter was due to the recognition of $7 million in milestones from two key <unk> pharma partners, which came earlier than expected in the year.

Research and development expenses for the first quarter of 2021 was $33 8 million compared to $23 9 million in the first quarter of 2020, representing a 41% increase.

The growth was largely related to an increase in personnel costs with our software engineering innovation and South San Francisco cellular lab teams driving the period over period increase.

Sales and marketing expenses for the first quarter of 2021 were $20 6 million compared to 14 million on the same quarter last year, representing an increase of 47 per cent.

Increased personnel costs contributed to the majority of this growth, particularly the expansion of our commercial teams to pretty close you compete attacked we also saw a larger investment strategy to take marketing efforts and shared corporate marketing services. These increases were partially offset by savings from travel and customer event related expenses.

General and administrative expenses for the first quarter of 2021 were $14 9 million compared to $11 8 million in the first quarter of 2020, representing an increase of 26%.

The increase was primarily driven by growth in headcount and related personnel costs.

Net loss for the first quarter 2021 was $40 6 million compared to first quarter of 2020 net loss of $31 4 million.

Adjusted EBITDA for the first quarter of 2021 was a loss of $30 1 million compared to a loss of 28 million on the same period of the prior year. We ended the quarter with $745 million in cash cash equivalents in marketable securities and we had no debt.

With respect to our full year guidance, we are reiterating our revenue range of $145 million to $155 million, which already contemplated the delivery of the MLD milestones. We recognized this quarter and excludes the IMD milestone that we no longer expect to recognize as a result of the suspension of the first share product.

Outlined during the call and listed on Slide 11, we've achieved some important milestones already in 2021 and have many more upcoming across all business areas. During the rest of the year, we feel really good about the momentum across all areas as we continue to deliver on our promise and demonstrates the capabilities of our platform.

With that I'd like to turn it back to the operator and open it up for questions.

Yeah.

Everyone. If you have a question at this time. Please press Star then the number one on your telephone keypad again, that's star then the number one on your telephone keypad with Galactic and limit yourself to one question and one follow up we should wait to I'll call on SKU from your question.

Yeah.

Yes.

Okay.

Your first question comes from the line of Brian Weinstein from William Blair. Your line is now open.

Hey, guys. Thanks for taking the questions good afternoon.

Right.

They are really interesting stuff on the crohn's disease and the ability.

To distinguish between patients with providers can you talk about.

You guys from very excited about this can you can you talk it rightfully. So can you talk about a.

On a little bit more about what trajectory potentially means for patients.

The enthusiasm that you guys have for this potential product.

Yes sure.

I'll start and then I'll hand, it over and hiring on if you want to dive deeper on the.

The upshot is yes, we're super excited about the Crohn's data on.

This data proves that T cells are Uber specific.

Looking at single diseases at a time to moving upstream in our clinical paradigm. So that doctors are able to differentially diagnose between diseases and remember that whole kind of as we outlined the whole vision for key detect going one is easier to time to differentiate diseases to ultimately getting to that concept of kind of one.

For example, with many results from a single blood sample, we're going on on our way. So we're really excited about what we're seeing and it really provides a foundation.

Great.

Following up with the question on on currency do you guys have talked a lot about investments that you guys have made in sales and marketing.

You have a lab corp relationship now that's supposed to help you out can you just talk about how those investments are going on in terms of the return that youre seeing on those or are you seeing.

On.

Are you seeing there.

Yes.

Uh huh.

Right.

You got cut off there, but it was at the end of the question what are the investments we're seeing on currency Julie do you want to take that.

Sure.

Brian Bill there.

Yes.

I'm not sure but go ahead and answer the question, Okay sure absolutely, yes, we've been making.

Carefully gated investments in Clos, we get appropriate time to drive a doubling of volume as we as we set out to achieve this year and we believe we're well on our way the team is executing well, we're starting to see an accelerated ramp to get US. There. So for example, as I mentioned.

And we've had really nice growth in multiple myeloma and even despite launching CLO in the middle of the pandemic, we are seeing a nice pickup in CLO as well.

About half of the on CCN centers using it now 30% of orders are already coming from the community, which is a new set of institutions that we're targeting.

That have really.

But it pretty much double the number of accounts ordering.

Order in CLO in the first quarter of the year. So we believe we're right on track with our plan, which was always back back half weighted in 2021, we have also a lot of initiatives in place.

Peer to peer education more marketing towards patients. We've just about concluded training the new cohort the new class of reps and so there'll be entering into the field. In fact, the team is together all week this week and our national sales meeting and we just really believe all the steps we're putting in place are setting us up for success in 2021.

Your next question comes from the line of Derik de Bruin from Bank of America on your line is now open.

Hi, good afternoon. Thanks, just IV on for Derik today. Thank you for taking my question.

First on hi, So first of all on the caustic.

Yes.

Highly appreciate if you could talk more about what needs to happen to reach day.

Check point.

And get acceleration accelerated the growth, Florida volume.

And then also if you could talk about the progress on the other indications such as multiple myeloma and NHL. Thank you.

Sure.

Okay.

Roger.

Sure.

Hi, Ivy.

No no I mean, we're really very very focus heads down on growth now. So we've had great success opening up or activating accounts.

Majority of our target accounts in the academic centers now we're moving into the community.

We're really focused on deepening penetration in those existing accounts.

We've discussed we deployed a new.

Yeah.

Our sales teams are there in hematology specialists to drive adoption in the accounts will focus on speeding up time to ordering post activation doing that by clarifying use cases doing more peer to peer education as I mentioned, we're also focused on focusing our our users on <unk> as many patients as possible at <unk>.

I've noticed because that makes it easier to incorporate <unk> more routinely per.

And you know as we mentioned also we're focused on really moving the T. L. L community towards accepting MRV as part of the routine way in which they manage their patients. So all of those things are just examples of how we're focused on growth in each of the disease. So as I mentioned multiple myeloma we've been.

We've been really educating that community about cornerstone for quite some time now and that growth continues at a really nice steady pace.

T O L. We expect is going to continue to pick up on particularly as we move on from COVID-19 and these patients can get back into treatment more regularly. We're hopeful also that our reps will be able to get back in person.

That's right.

I'm sure you're hearing from everyone is really just starting to happen now.

That's particularly important as we're moving into a new community setting.

And so that's kind of how we think about what really needs to happen to continue on the accelerated ramp throughout the year. I think you asked about indications. So we know that we file day, allowing blood and you know the FDA has kind of put many of those reviews on hold right now, but as I mentioned in my remarks.

We can offer a allowing blood in our CLIA lab and napkins, that's happening quite regularly now multiple myeloma, we're still waiting on the data to readout from the trial.

We are increasing our focus in NHL now valid.

Great. That's very helpful. Gerry I have two other quick questions on the financials.

So first one with all the moving parts I apologize if I missed it in the prepared remarks, but wanted to see if you could provide an update.

Florida mix between sequencing revenue.

And development revenue.

Terms of the total revenue percentage I think last quarter, you talk about maybe the sequencing accounting for 50% to 55% of the total so just curious given all the changes where does that go to and I'll put my second one upfront on this fall.

So last quarter.

Can you talk about contemporary paying debt increasing revenue from amortization from the upfront paid any.

Which genentech so wondering if there's an update there. Thank you so much.

Sure I'll take those so very quickly yes, we still believe we're in the range for the full year of sequencing revenues to come in at between $50 to 55% you saw really strong.

Revenue activities from our.

Research.

Component of the business this quarter.

There were some planned large projects it really came in a little sooner than expected. So we're effectively just reiterating that we still believe in that $50 to 55% as a percentage of the total from a sequencing perspective, and then from a development perspective.

Sort of your second question.

It's still in the same sort of ballpark that we articulated on the last quarter. We had mentioned that modeling our development revenues for the full year should really start with looking at the third quarter 2020 revenues and not our fourth quarter ones. We still believe that we came in a little heavier than anticipated just given the robustness of the investments that we.

<unk> made in the quarter, but overall, we believe our development revenues are in line with what we previously articulated and we should see potentially some some modest growth, but it won't be like a ton coming off of this quarter's numbers.

On a quarter over quarter basis, so still in that sort of range that we provided last quarter in terms of the total amount of development revenues from Genentech.

Great. Thank you very much net.

Yeah.

Your next question comes from the line of Tycho Peterson from Jpmorgan. Your line is now open.

Hey, good afternoon.

I'll start with immuno seek T map COVID-19 just curious now that you've had it out a couple of quarters, how big debt businesses and then how do you think about the durability there.

As we think about the various nextgen vaccines and the like.

How do you think about the durability of the trends you're seeing there.

<unk>.

Sure sure maybe I'll start on.

I'll start I'll start with that and then Julie Julie feel free to jump in but.

One is for <unk> right now that business is actually Jim.

It's starting to pick up in light of understanding the T cell.

The <unk> bonds to variance on the vaccines. So we are seeing net business in terms of kind of durability that depends on kind of your view of.

COVID-19 being endemic in the population, but T map as a franchise as part of the research business, we see having.

Quite a bit of durability based on the fact that we can leverage kind of the map. The antigen map that we're building with Microsoft to be able to inform kind of other parts of the business. So one area that we're particularly interested in and we think there's future opportunity is in the autoimmune space and what's exciting about.

That is not just the ability on the.

Our research business, but also.

Ability for that data to potentially inform kind of therapeutic targets. So youre starting to see that crossover so.

In terms of guidance durability, and its kind of the future of that business, even even if the current COVID-19 opportunity winds up waiting we think there is opportunity in other other disease states and Thats kind of on nearly one on one of the kind of major benefits of the antigen map.

Okay. That's helpful.

On the Pfizer partnership I am curious how meaningful that is you mentioned that you come across a couple of clinical programs.

Julian can you maybe comment on that one.

Sure.

We don't disclose the financials as you know it's much like many of the other that we signed were there.

In this case there is some annual payments.

Okay.

And then on Genentech now that you've delivered the proof of concept for the 50 cancer patients from the private product can you just talk a little bit about how you think about their evaluation process on there.

Next next steps on the private product that we should be paying attention to.

However, due to ago sure.

So.

We're working together and in parallel on this since the.

Just as a reminder.

The objective on the on the private product is to take the.

T cells that are on attacking the cancer in a given patient and take the T cell receptor is out of those T cells identify them and then and then synthesize them and put them back into a set of that.

That patient's own T cells, <unk> and off the shelf product and from future day with the idea being that we'd have a safe on target and potent therapy. So the two parts are on our side is really identifying very rapidly. The T cell receptors that are cancer specific and thats really the proof of principle that we are going.

Through and were now have to do all the development work exactly how.

How much blood how is it stored one.

Materials, we're going to start with.

To optimize the process.

And then all the all the other development processes related to the the reagent used.

Workflow et cetera on at the same time.

Genentech is working on the actual cell therapy part of the cell manufacturing part et cetera.

And together, we're discussing the science on a regular basis so.

It's proceeding proceeding nicely, but we have.

It's a hard thing to do and we have a ways to go but.

The trains on the tracks and we're feeling.

Good about the direction we're going.

Okay. That's helpful. Thank you.

Thanks.

Yeah.

Your next question comes from the line of Doug Schenkel from Cowen. Your line is now open.

Hey, everybody thanks for taking my questions.

Apologize in advance I know everybody on the line are struggling a little bit so.

Apologize if any of these have been answered.

My first is just on the <unk>.

Genentech shared product.

Okay.

It's not cash.

Thank you.

Youre breaking up.

Read that again.

Okay.

No.

Sorry.

Do you see as soon as possible to dial back in on another line and will jump on.

Yes, I will do that sorry about that.

No problem.

Your next question comes from the line of cash.

Just so long from Morgan Stanley. Your line is now open.

Hi, This is Hugo on the on the call for <unk>, Thanks for taking our questions.

You mentioned you would be sharing data for Crohn's Celiac later this year, what would you have us focus on with that presentation and what additional information on should we should we be looking for.

Growth.

Yes so.

So far we've done a couple of different things, we had a one study, which we which was a smaller study a few hundred samples where we first found our crohns signal and we talked about that a little bit last year, but what were waiting for we now have.

On 5000 samples in house that includes.

Crohns and colitis, there's 600 colitis samples so so we're going to.

Finished sequencing, which we're almost done that data set and then we're going to analyze that data set.

And then put it together so we'll we'll present the data once thats. The larger study is fully analyzed and we have the.

Really make sure we dot our I's and cross our Ts on.

All of the all the science.

Got it. Thank you and then a follow up.

Given our good traction youre seeing from <unk> CLO on blood what are you seeing in terms of update for Kalana testing and blood outside of CLO. I think you might have mentioned al could you remind me do you have.

Okay.

Sure.

Yes.

Yeah I think.

Yeah, we have about.

25% of our of our usage in a L. L. A in blood, which is in our CLIA lab.

Since it is not an FDA.

Cleared label.

Label expansion at this time.

Okay great.

And then.

How about.

And then as well.

So that's a much smaller at this stage multiple myeloma is it sort of a different biology of the disease of the bone marrow and.

The data is still emerging and the trial is still.

Moving out at the momentum so that that one is not quite as advanced yet in blood as some of the other indications.

Great. Thank you so much.

Sure.

Your next question comes from the line of Doug Schenkel from Cowen. Your line is now open.

Okay, well, we'll try this again from you guys could you all hear me a little bit better now you sound great job much better.

Okay.

On the landline was messed up and now I'm on the cell, but anyway, sorry about that.

So again apologies in advance if some of this was covered earlier.

On the Genentech share product on.

I'm just wondering if youre starting to get any positive signals that fortify or build conviction that this is in fact a quantified.

Bo antigen, whether it's mutated or not mutated and if not at what point you think youll have such a signal.

And then I'm just wondering and maybe this has been going on all along but it's there.

Has there been some consideration of maybe accelerating the pace of looking at targets like this in parallel with that I would assume to some extent that's already happening, but just given no matter. How great. You guys are given limited biological on safety information around any given target.

I'm just wondering if there are ways being contemplated that might increase the probability of success just just.

The increase in the numbers yet.

Using that as a means to more quickly reach IND submission.

Sure.

Starting with your first question.

So adaptive.

Front confirms and this has to be honest one of our specialties reconfirm that debt.

And we have done that for many hundreds of targets.

On the discovery side, then the next step is sort of.

Then searching for the absolute best Chief receptors that hit those targets, which we have been done also with I would say, maybe not quite as many but still well over 100 different targets.

And then the next step is is working with Genentech, where we we have to pick out the subset.

Okay.

Optimal clinical use meeting.

<unk>.

Yes.

Is it okay on all their clinical parameters neighborhoods can recruit the patients. These mutations <unk> tumors on did answered in the current.

<unk>.

As deemed it we together I guess if deemed it safe.

And all the other parameters that need to be considered.

And so yes.

What are you hearing your points on the second question and yes, we are parallel tracking more than one on the ladder step.

For the reason you said.

There is a lot of work that goes into each one on the adaptive side, we're able to do many on the discovery side in parallel.

But theres a theres a whole clinical program needs to be put around each one so the farther we get down the line the more work on the tighter the funnel, but we are parallel tracking more than one.

Okay. Thank you for that and then on a personalized T cell therapeutics.

On that program.

You may have covered this especially given I heard.

Earlier question that I think got at this but I believe you were targeting to share proof of concept data and launch your prototype lab in the first quarter or close to that did that happen.

Yes, we are.

I mean, we shared that with Genentech I don't know that we're saying, we're not going to share it publicly but yes. We've we've completed our first pilot experiment and were.

Have shared data with <unk>.

Now.

Having in fact, we've been since then have done.

Multiple other samples we had targeted a new 15 patients, but we're now well beyond that and we're progressing forward.

Sort of regular discussions with the scientific team at Genentech as well as the clinical data from the prototype App.

And yes, sorry on the prototype lab.

It is now built out.

And we have completed construction and were.

Net now is the real development effort on locking down the.

The work flow through that lab et cetera, and we've hired some of the team we have to hire some of the more of the team out.

But all of the equipment and its the lab is ours.

Fully operational.

And it sounds like with that in mind. Your you are in good position to hit your target of 60 patients by the end of the year.

Oh, yes, yes.

Okay. Okay, Alright, that's great. Thank you again, I'm, sorry from the technical challenges.

Thanks, Doug.

Yeah.

Your next question comes from the line of Mark Massaro from <unk>. Your line is now open.

Hey, guys. Thank you for the questions and congrats on a strong quarter I guess my first one is similar to Doug's question and that is.

There are some investors that seem to have concerns about your ability.

On to advance.

The other.

Share target and so I guess for those that are skeptical can you just maybe address.

I know Julie mentioned that the first target was or the first candidate with specific to the target.

But.

To mitigate any.

Potential risks.

Items in the future.

Sure so.

The.

With.

No matter what target. There is there is a whole set of safety procedures that we need to.

And share and so.

The risk profile is different if it's a tumor associated antigen versus.

Our neo antigen because the neo antigen is not five.

<unk> found in normal human genome.

But there are also.

Likely some pretty safe tumor associated antigens.

But.

The primary consideration.

I think we are in better spot in a lot of different ways, which is that.

The.

Safety considerations in.

Feeling quite confident that our next.

Target is.

That's very very low safety risk relatively speaking.

Okay and my second question.

Congrats on realizing the $7 million.

Milestone payment in the quarter, obviously I was not expecting that.

So MRV clearly is a promising biomarker.

It can be used as a surrogate endpoint and can help with MLD enriched studies can you just give us a sense I don't know if you can give us any detail as far as.

What.

How specifically Kona sic was used was it in an adjuvant or.

Metastatic setting.

And can you also speak to the pipeline or the size of additional studies that you could realize or pull forward milestones in the future.

Sure Joe as you on Georgia.

Sure so.

I can just tell you that the public.

That the.

And then I guess I would suggest maybe reading the label just so we don't say anything we're not supposed to say.

But one of them was with canopy for start KUSA in multiple myeloma and the second one is our beckmann bms's at Beckman from <unk> car T in multiple myeloma.

And there are secondary end points.

Great and then in terms of the pipeline.

Sure.

So we what we've disclosed there's over $300 million in.

The pipeline and obviously there is kind of the puts and takes as we accomplish those milestones and kind of burning down those.

Income from kind of off of that number but at the same time, we continue to kind of replenish that number with additional studies that we signed.

Obviously, the hope is as bad day kind of replenishment outstrips the.

The amount were burning down.

<unk>.

Over time, but we don't see those milestones are available to us from us frankly in a variety of different shutting one other big kind of catalyst would be.

FDA approved multi myeloma.

Endpoint.

Okay. Thanks, so much.

Welcome to <unk>.

Your next question comes from the line of Dave Reeder Wattenberg from Guggenheim Securities. Your line is now open.

Thank you for taking the question.

Stick with the Mardi.

So has there been any new MRV.

Interest based on all the all the studies that are going out in the solid tumor I realize it's a completely different market for you, but one of the interesting things that we've been finding out from all of our oncology surveys is that theres a lot of.

On colleges that are haemonchus it deal with solid tumors from times and vice versa. So just just curious if theres been any kind of on.

Additional interest with just with the amount of data that's coming out on all over the space.

Yes, I'll take that day.

And.

It's just maybe as a tip of the iceberg of this and I do think debt, we will kind of benefit from that as touch on.

Monitoring residual disease kind of in general are using.

Genomics to be able to incorporate into kind of patient care continue in particular as you mentioned this would be in the community setting where.

And oncologists is treating all commerce, so once they get comfortable with the concept of monitoring in general whether they're monitoring in solid tumors and using kind of a variety of I mentioned on any one by neighborhood a variety of different tests available in solid tumor monitoring that kind of piques their interest and to be able to also monitor in.

In liquid tumors so no.

Especially on the community.

Do you see much don't want to be kind of on the cutting edge on the flip side. They also don't want to be kind of left behind so I think you're just you're hitting the point, where kind of where we're just starting to see it move from being kind of on.

The true kind of bleeding edge thought leaders into into hopefully kind of crossing over to share to mainstream and I do think we will benefit from <unk>.

Mardi.

Broad based category, but I would say, it's very early and we're just starting to see that because as Julie mentioned.

We and others of our peers haven't been able to go in and do that education when that happens as a as a collective group I think that all boats will rise.

Raj on the tide with the with the difference being.

We're kind of the one company that is really focused on on.

On the hematologic malignancies in MRV in that space, where I think there's many different technologies that are looking at MRI and solid solid tumor monitoring.

Yes, I didnt actually let's let's stick on that concept because I think you are very differentiated in that you have a specialized technology, where you are actually looking for the b cell and b cell mediated cancer on.

And I think youre in net market all by itself now I mean, the reality is is that you are dealing with haemonchus on our on a very regular basis.

If you indeed would maybe when that call point do you think maybe you would add approaches outside of honestly just to complement the fact that you already have that sales force and maybe such a good reputation with the group.

And I'll stop there after that.

Yeah.

Good question, it's a good question David.

We continue to look for ways to cut.

Add value to the portfolio in the bag. So I would just taken other.

We've got a kind of a search and evaluation team out there that continues to look at opportunities to.

Add incremental value to our offerings and I'd, probably leave it at that for now.

Thank you so much.

You bet.

Our last question comes from the line of thousand richer from Goldman Sachs. Your line is now open.

Great. Good afternoon, and thanks for taking our question. This is Elizabeth on for Celgene.

Just a quick question for NASA on <unk>. So you mentioned youre exploring that.

Other diseases, maybe if you could just expand on net and both the near term on the long term strategy for the program.

Yes so.

This is a great question and this is very much on the developmental stage, but not really charged our research team with with <unk>.

Asking the question.

Hey.

Starting with the principal debt are real advantages that we have.

Really deep scale.

We can we can sequence because of our sequencing capability, we're able to to go through many many many different antibodies in a given sample. So the question is where does that particular advantage.

Allow us to find antibodies that debt.

Which would which would be differentiated from what other groups can do and so.

I don't think we.

We're at the point, where I feel comfortable giving us kind of the exact direction, we're going yet, but I think the team has come up with.

Some quite good directions, and we're and we're going to resource it.

Our resourcing it.

And feel like this is something that we're going after I think in general.

Back to you on kind.

Publicly but we're feeling good about.

On the program in general.

Great. Thank you.

I am showing no further questions at this time and that concludes our conference call. Thank you all for joining you may now disconnect.

Q1 2021 Adaptive Biotechnologies Corp Earnings Call

Request a DemoDemo

ADPT

Adaptive Biotechnologies

Earnings