Hot Tech stock to watch: Adaptive Biotechnologies Corp (NASDAQ: ADPT)

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Adaptive Biotechnologies Corp (NASDAQ: ADPT) stock rose 3.3% last week but corrected over 29.2% in this year to date (Source: Finviz.com)

The company has beaten the topline estimates for the third quarter of FY 19. ADPT’s revenue mix for the third quarter consisted of 45% of the revenues coming from our sequencing category and 55% coming from the development category. The company reported 38% increase in the Sequencing revenue in the third quarter to $11.7 million mainly driven by growth in revenue generated from the biopharma and academic customers, and really the sequencing volume, as well as growth in revenue generated from the clinical customers.

Research sequencing volume, which includes sequences reported to both the biopharma and academic customers, grew by 25% to 10,618 sequences from 8,466 sequences in the third quarter 2018. There has been 36% increase in the clinical volume to 2,551 clinical tests from 1,879 clinical tests in the third quarter 2018. Development revenue grew by 65% to $14.4 million in the third quarter compared to the same period last year. The increase was mainly due to amortization of the $300 million upfront received in February from the Genentech partnership, which was partially offset by a decrease in regulatory milestones recognized in the third quarter of 2019, as compared to the third quarter of 2018.

ADPT in the third quarter of FY 19 has reported the adjusted loss per share of 11 cents. The company had reported the adjusted revenue growth of 52 percent to $26.1 million in the third quarter of FY 19, beating the analysts’ estimates for revenue of $21.9 million, according to analysts surveyed by Zacks.

ADPT is on track for the completion of an upgraded RUO kit for immunoSEQ at the end of this year 2019 with a launch plan for the first quarter of 2020. Further, the company is on track for the first label expansion with submission to the FDA by the end of 2019 for clonoSEQ  for the usage to monitor patients with CLL from blood samples.

In addition, during the third quarter, the company had announced a global agreement with Amgen for the use of our clonoSEQ assay to assess MRD across multiple drug development programs in their portfolio. As per the terms of this type of agreement, the company will receive annual development fees in addition to potential sequencing payments and regulatory milestones.

For FY 19, the company has raised the revenue outlook, and now expect full-year revenue to be in the range of $82 million to $83 million

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