Adaptive Biotechnologies (ADPT -2.33%), a company that, in its own words, "aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease," was the cure for the stock market blahs on Wednesday. The commercial-stage biotech reported encouraging quarterly results, and investors signaled approval by trading the stock up by more than 2%. By contrast, the S&P 500 index flat-lined that day.
MRD sales growth resulted in top- and bottom-line improvements
Adaptive published its first-quarter figures after market close on Tuesday. These showed that its revenue grew by 11% year over year to almost $41.9 million. The biotech also delivered improvement on the bottom line, with its net loss narrowing to $47.5 million ($0.33 per share) against the first-quarter 2023 shortfall of $57.7 million.
Both headline figures exceeded analyst expectations. Collectively, those pundits were modeling revenue of less than $39 million and a deeper net loss of $0.35 per share.
The company's main source of business is its therapies for minimal residual disease (MRD), a condition in which small numbers of cancer cells remain in a patient's body after treatment. MRD sales now comprise 78% of Adaptive's revenue after those sales rose by a sturdy 52% during the quarter to hit $32.6 million.
Guidance adjusted for full-year 2024
More encouragingly, Adaptive raised the lower end of its guidance for full-year MRD sales. It now believes the category will bring in revenue of $135 million to $140 million; previously, it forecast $130 million to $140 million. It did not proffer estimates for its other business category, immune medicine, nor did it issue net income guidance.
As for annual operating expenses, it lowered its projection. Adaptive now believes this will amount to $350 million to $360 million. This is down some distance from the preceding $360 million to $370 million.
