On this page of StockholderLetter.com we present the latest annual shareholder letter from Adaptive Biotechnologies Corp — ticker symbol ADPT. Reading current and past ADPT letters to shareholders can bring important insights into the investment thesis.

 •  4/26/2024 Letter Continued (Full PDF)
 •  4/28/2023 ADPT Stockholder Letter
 •  More "Biotechnology" Category Stockholder Letters
 •  ADPT Benford's Law Stock Score = 72

ADPT Shareholder/Stockholder Letter Transcript:

2023
Annual
Report

Dear fellow shareholders,
Adaptive continues to leverage its industry-leading capabilities to translate the immune system response to
disease into paradigm-shifting clinical products.
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level. This knowledge can transform how lymphoid cancers, such as multiple myeloma, are understood in clinical
trials and treated in patients.
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driven cancer and autoimmune disease.
Minimal Residual Disease (MRD)
Immune Medicine (IM)
A commercial-stage diagnostic business
An immune-driven drug discovery business
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Advancing transformative immune-based
hematology for use in clinical practice and drug trials
therapeutics in cancer and autoimmunity
In this post-pandemic world, I am delighted that Adaptive continues to be
an incredibly integrated and collaborative workplace. We were the winner of
GeekWire   s Workplace of the Year Award in 2023. I   m deeply proud of the passion,
dedication, and teamwork displayed by Adapters every day. It is their ingenuity
that makes us the company we are today   and the company we will strive to be
over the years ahead.
Image credit: GeekWire
Key Financial Highlights
FY'23 revenue $170.3M (MRD revenue $102.7M +18% Y/Y; IM revenue $67.5M -31% Y/Y)
FY'23 operating expenses $397.3M (+3% Y/Y including a $25.4M lease impairment charge; -4% Y/Y excluding the
lease impairment charge)
Strong balance sheet with $346.4M in cash, cash equivalents and marketable securities as of December 31, 2023
Chad Robins, &KLHI ([HFXWLYH 2  FHU DQG &R IRXQGHU

MRD
The MRD business is centered around the use of
our highly sensitive, next generation sequencing
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assay to detect measurable residual disease
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practitioner, was diagnosed with multiple myeloma
nearly 10 years ago.
in patients with lymphoid malignancies. It is
comprised of two main pillars, the clonoSEQ  
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She embarked on an eight-month journey of induction
therapy, chemotherapy infusion and a stem cell
transplant. During that period, her life stopped.
She took a leave of absence from work. She worried
about being there for her children. After more than
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recommended MRD testing with clonoSEQ, which
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nearly a decade, she was able to take a deep breath,
and look to the future.
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competitive advantages around clonoSEQ,
including best-in-class sensitivity, broad payer
coverage, clinical evidence, guideline inclusion,
and biopharmaceutical utilization of MRD as a
surrogate endpoint in clinical trials.
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>50%
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300M
Covered lives today
from 80M in 2020
Year-over-year growth from 2022
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75 studies using clonoSEQ assay
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We grew clonoSEQ test volume by 53% year-

MRD Pharma revenue, excluding milestones,
over-year. Blood-based testing is a key driver of
increased by 1% from 2022 against a slowdown
the growth in the community setting, increasing 8
in pharma services, reflecting broader
percentage points over the year to make up 39% of
macroeconomic factors impacting the
clonoSEQ tests.
biopharmaceutical industry.
Payer coverage for the test grew to 300 million lives

As of December 31, 2023, clonoSEQ assay
in B-cell acute lymphoblastic leukemia (B-ALL)
technology was being used in 143 active trials
and multiple myeloma, 200 million lives in chronic
conducted by 43 biopharmaceutical partners,
lymphocytic leukemia (CLL) and 70 million lives in
including 75 trials in which it represented a
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clinical endpoint (10 of which it is being used as a
primary endpoint).
  US clinical patients

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For more than a decade, Adaptive has been generating
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a treasure trove of valuable immune receptor data,
own or with a partner. In cancer, we remain focused
including over 100,000 signatures of cancer and
on supporting Genentech, Inc. in the development
autoimmune disease and approximately 500,000
and commercialization of TCR-based cancer cell
matches of TCRs to disease-related antigens. Our
therapy product candidates. In autoimmunity, we have
IM business leverages these data to develop and
advanced our technology to support the development
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of more precise therapies for the millions of patients
models to accelerate target and drug discovery
with these diseases, such as multiple sclerosis.
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From cancer and autoimmune
Sequence
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Pair
Characterize
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Comp Bio
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under the Genentech Agreement with respect
tumor mutations. The 2023 completion of our
to both the shared and personalized product
personalized process workflow under regulated
programs. For the shared products, we completed
conditions enables us to initiate end-to-end
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testing for future clinical readiness.
enabled selection of a TCR candidate to advance as
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In autoimmune diseases, we continued our
FDA Investigational New Drug (IND) application
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clearance under our Genentech Agreement was
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obtained for this candidate in 2023.
arthritis, and we discovered a novel therapeutic
target in MS. We plan to validate this novel MS

For our fully personalized approach, blood samples
self-antigen as a therapeutic target and assess
from 165 cancer patients have been screened. A
potential therapeutic modalities against it in the
proof of concept was completed by identifying and
next few years.
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 4/26/2024 Letter Continued (Full PDF)