Adaptimmune Therapeutics (ADAP) Q2 2024 earnings summary

Executive summary

• Achieved FDA accelerated approval and commercial launch of Tecelra, the first engineered cell therapy for solid tumors and first new synovial sarcoma treatment in over a decade, now available for eligible patients in the US.

• Launch activities began immediately, with commercial, medical affairs, manufacturing, and supply teams fully operational and engaging stakeholders.

• Entered a major collaboration with Galapagos NV, securing $100M in upfront and R&D funding, with potential for further milestone and royalty payments.

• Terminated the Genentech collaboration, resulting in significant one-time revenue recognition and strategic refocus.

• Patient support program AdaptimmuneAssist is active, with 5 authorized treatment centers (ATCs) available and plans to expand to 6-10 in the launch period and up to 30 over time.

Financial highlights

• Revenue for Q2 2024 was $128.2M, up from $5.1M in Q2 2023, mainly due to Genentech collaboration termination and Galapagos upfront payments.

• Net profit for Q2 2024 was $69.5M ($0.05/share), compared to a net loss of $21.4M in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $211.8M, with total liquidity of $214.8M, up from $144M at the end of Q1.

• Total expenditure for the first half of 2024 was approximately $114M, including launch investments and commercial team hiring.

• Net cash provided by operating activities was $15.4M for the first half of 2024, compared to a use of $81.0M in the same period last year.

Outlook and guidance

• Focused on successful U.S. launch and commercialization of Tecelra, with plans to onboard 6-10 treatment centers in the coming weeks and up to 30 in two years.

• Will provide high-level forward cost guidance and regular commercialization updates, focusing on ATCs opened and patients apheresed as key launch metrics.

• Transition to reporting patients treated and sales as key metrics in the first half of next year.

• Lete-cel regulatory submission planned for 2025, with commercial launch targeted for 2026 and full IGNYTE-ESO trial results expected by year-end 2024.

• Ongoing development of uza-cel in collaboration with Galapagos and continued investment in preclinical PRAME and CD70 programs.