On this page of StockholderLetter.com we present the 4/28/2023 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.
2022 Annual Report
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Before we dive into the business details, I want to extend my gratitude to the people who power Adaptive. None of this works without our people and culture. Thanks to the e orts of Adapters across the company, we are happy to share that we were once again named one of Washington State s Best Places to Work our fifth consecutive year receiving the award. Similarly, we garnered national recognition in 2022 as a Great Place to Work and received high marks on the Human Rights Campaign Foundation s 2022 Corporate Equality Index (CEI). What our employees do every day makes a di erence in people s lives. We were fortunate to host an honored guest at our year-end employee meeting, clonoSEQ patient Karen Thomas. Karen discussed her multiple myeloma diagnosis story, and how clonoSEQ testing impacted her care. Adapters welcomed Karen with open arms, giving her a tour of our corporate headquarters o ce and labs. Stories like Karen s are undeniably a highlight of our jobs and what motivates us to go the extra mile every day. I am infinitely proud of the team we ve built and of their dedication to Adaptive s mission of ushering in a new age of immune medicine. Chad Robins, Chief Executive O cer and Co-founder
MRD Karen s story The MRD business is comprised of our Karen, a gardener, fly- clonoSEQ assay, the gold standard in fisherman, wife and mother, measuring minimal residual disease (MRD) in was diagnosed with multiple myeloma. She patients with lymphoid malignancies and the went through chemotherapy and test of choice for therapeutics developers. Over maintenance treatment for 10 years with the last decade, we have built strong moats debilitating side e ects. around clonoSEQ that provide significant competitive advantages, including best-in-class Her doctor ordered clonoSEQ, which revealed sensitivity, broad coverage, clinical evidence, that Karen is now cancer free, and he decided guideline inclusion, and biopharmaceutical to discontinue her maintenance therapy. utilization of MRD as a surrogate endpoint in clinical trials. Today, Karen is living a full and active life. clonoSEQ is the gold standard for MRD in hematologic malignancies Pharma Use NCCN Guidelines Broad Coverage Deep Sensitivity FDA Approved Clinical Evidence Highest sensitivity; detects one in 1M cancer cells Only FDA approved test in B-cell acute lymphoblastic leukemia (B-ALL), multiple myeloma (MM) and chronic lymphocytic leukemia (CLL)* 110+ publications, 95 ongoing studies 245M+ covered lives for ALL and MM, 190M+ covered lives for CLL and 70M+ covered lives for DLBCL National Comprehensive Cancer Network (NCCN) guidelines ALL, MM, CLL 60+ biopharmaceutical partners and 187 active clinical trials * All indications are CLIA validated, including di use large B-cell lymphoma. Significant advances in 2022 include: We grew clonoSEQ test volume by 51% to 36,871 In October 2022, we entered into an agreement tests delivered. We increased the all-time number with Epic to integrate the clonoSEQ assay into its of unique patients tested by 53%, to over 33,000 comprehensive electronic medical record system patients by the end of 2022, and nearly doubled to enable physicians to more easily order tests and the size of our fully-trained sales team. access results. We launched clonoSEQ as a CLIA-validated blood Our MRD Pharma revenue increased 15% test for patients with di use large B-cell lymphoma from 2021, and our portfolio is continuing to (DLBCL) and secured clonoSEQ coverage with expand. Our clonoSEQ assay is being used by Medicare for DLBCL patients, regardless of line of over 60 biopharmaceutical partners and in 187 therapy, treatment regimen, or testing timepoint. active trials, representing a penetration rate of clonoSEQ is the first and only MRD test to receive approximately 21% among all sponsored clinical Medicare coverage in DLBCL. trials in lymphoid cancers.
Immune Medicine Our Immune Medicine business area leverages our and neurodegenerative diseases. Through our Drug rich immune receptor data to inform clinical trials Discovery business, we use our proprietary capabilities and to advance novel therapeutics using our T-cell to discover new drug targets and develop TCR or receptor and antibody discovery capabilities. Through antibody therapeutic assets against those targets. our Pharma Services business, we inform biomarkers We are focusing our drug discovery e ort mainly on of therapeutic response and accelerate clinical two areas of high unmet clinical need, cancer and programs for our biopharmaceutical customers in autoimmune disorders, where we can partner or cancer, autoimmune disorders, infectious diseases develop therapeutics on our own. Immune Medicine platform and growth areas Immune Medicine Platform Immune receptors T cells Cancer Infectious diseases Pharma Services Drug Discovery Immunosequencing TCR Therapeutics Target Discovery Sequence Map Pair Characterize Autoimmune disorders Growth Areas B cells Antibody Therapeutics Neurodegenerative disorders Significant advances in 2022 include: In Drug Discovery, under our exclusive and Genentech selected the first neoantigen TCR collaboration with Genentech, we made significant to advance as a potential cell therapy product. advances with respect to both the shared and For the personalized product, we successfully personalized products. For the shared product, completed proof of concept for the identification we delivered three TCR fully characterized data and characterization of patient-specific TCRs packages against validated neoantigen targets, specific to each patient s unique tumor mutations.
 • shareholder letter icon 4/28/2023 Letter Continued (Full PDF)
 • stockholder letter icon 4/26/2024 ADPT Stockholder Letter
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ADPT 4/28/2023 Shareholder/Stockholder Letter Transcript:

2022
Annual
Report

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Before we dive into the business details, I want to extend my
gratitude to the people who power Adaptive. None of this
works without our people and culture. Thanks to the e   orts
of Adapters across the company, we are happy to share that
we were once again named one of Washington State   s Best
Places to Work   our fifth consecutive year receiving the award.
Similarly, we garnered national recognition in 2022 as a Great
Place to Work and received high marks on the Human Rights
Campaign Foundation   s 2022 Corporate Equality Index (CEI).
What our employees do every day makes a di   erence in
people   s lives. We were fortunate to host an honored guest at
our year-end employee meeting, clonoSEQ   patient Karen
Thomas. Karen discussed her multiple myeloma diagnosis
story, and how clonoSEQ testing impacted her care.
Adapters welcomed Karen with open arms, giving her a tour of
our corporate headquarters o   ce and labs. Stories like Karen   s
are undeniably a highlight of our jobs and what motivates us to
go the extra mile every day.
I am infinitely proud of the team we   ve built and of their
dedication to Adaptive   s mission of ushering in a new age of
immune medicine.
Chad Robins,
Chief Executive O   cer and Co-founder

MRD
Karen   s story
The MRD business is comprised of our
Karen, a gardener, fly-
clonoSEQ assay, the gold standard in
fisherman, wife and mother,

measuring minimal residual disease (MRD) in
was diagnosed with multiple myeloma. She
patients with lymphoid malignancies and the
went through chemotherapy and
test of choice for therapeutics developers. Over
maintenance treatment for 10 years with
the last decade, we have built strong moats
debilitating side e   ects.
around clonoSEQ that provide significant
competitive advantages, including best-in-class
Her doctor ordered clonoSEQ, which revealed
sensitivity, broad coverage, clinical evidence,
that Karen is now cancer free, and he decided
guideline inclusion, and biopharmaceutical
to discontinue her maintenance therapy.
utilization of MRD as a surrogate endpoint in
clinical trials.
Today, Karen is living a full and active life.
clonoSEQ is the gold standard for MRD in hematologic malignancies
Pharma
Use
NCCN
Guidelines
Broad
Coverage
Deep
Sensitivity
FDA
Approved
Clinical
Evidence

Highest sensitivity; detects one in 1M cancer cells

Only FDA approved test in B-cell acute lymphoblastic leukemia (B-ALL),
multiple myeloma (MM) and chronic lymphocytic leukemia (CLL)*

110+ publications, 95 ongoing studies

245M+ covered lives for ALL and MM, 190M+ covered lives for CLL and
70M+ covered lives for DLBCL

National Comprehensive Cancer Network (NCCN) guidelines
ALL, MM, CLL

60+ biopharmaceutical partners and 187 active clinical trials
* All indications are CLIA validated, including di   use large B-cell lymphoma.
Significant advances in 2022 include:


We grew clonoSEQ test volume by 51% to 36,871

In October 2022, we entered into an agreement
tests delivered. We increased the all-time number
with Epic to integrate the clonoSEQ assay into its
of unique patients tested by 53%, to over 33,000
comprehensive electronic medical record system
patients by the end of 2022, and nearly doubled
to enable physicians to more easily order tests and
the size of our fully-trained sales team.
access results.
We launched clonoSEQ as a CLIA-validated blood

Our MRD Pharma revenue increased 15%
test for patients with di   use large B-cell lymphoma
from 2021, and our portfolio is continuing to
(DLBCL) and secured clonoSEQ coverage with
expand. Our clonoSEQ assay is being used by
Medicare for DLBCL patients, regardless of line of
over 60 biopharmaceutical partners and in 187
therapy, treatment regimen, or testing timepoint.
active trials, representing a penetration rate of
clonoSEQ is the first and only MRD test to receive
approximately 21% among all sponsored clinical
Medicare coverage in DLBCL.
trials in lymphoid cancers.

Immune Medicine
Our Immune Medicine business area leverages our
and neurodegenerative diseases. Through our Drug
rich immune receptor data to inform clinical trials
Discovery business, we use our proprietary capabilities
and to advance novel therapeutics using our T-cell
to discover new drug targets and develop TCR or
receptor and antibody discovery capabilities. Through
antibody therapeutic assets against those targets.
our Pharma Services business, we inform biomarkers
We are focusing our drug discovery e   ort mainly on
of therapeutic response and accelerate clinical
two areas of high unmet clinical need, cancer and
programs for our biopharmaceutical customers in
autoimmune disorders, where we can partner or
cancer, autoimmune disorders, infectious diseases
develop therapeutics on our own.
Immune Medicine platform and growth areas
Immune Medicine Platform
Immune
receptors
T cells
Cancer
Infectious
diseases
Pharma Services
Drug Discovery
Immunosequencing
TCR Therapeutics
Target Discovery
Sequence
Map
Pair
Characterize
Autoimmune
disorders
Growth Areas
B cells
Antibody Therapeutics
Neurodegenerative
disorders
Significant advances in 2022 include:

In Drug Discovery, under our exclusive
and Genentech selected the first neoantigen TCR
collaboration with Genentech, we made significant
to advance as a potential cell therapy product.
advances with respect to both the shared and
For the personalized product, we successfully
personalized products. For the shared product,
completed proof of concept for the identification
we delivered three TCR fully characterized data
and characterization of patient-specific TCRs
packages against validated neoantigen targets,
specific to each patient   s unique tumor mutations.



shareholder letter icon 4/28/2023 Letter Continued (Full PDF)
 

ADPT Stockholder/Shareholder Letter (Adaptive Biotechnologies Corp) 4/28/2023 | www.StockholderLetter.com
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