Adaptive Biotechnologies (ADPT) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Key business developments and learnings

• Significant organizational changes, including segment reporting and workforce reductions, have led to increased focus and momentum across MRD and immune medicine segments.

• Financial discipline and clear allocation of resources have improved operational efficiency and morale.

• Strategic review highlighted challenges of housing diagnostics and therapeutics under one roof, but both segments are positioned for growth.

• No current strategic review; focus remains on execution and value creation.

MRD business performance and market penetration

• ALL shows highest MRD test penetration at 20%, followed by multiple myeloma at 10%, CLL at 4-5%, and DLBCL at 3%.

• Blood-based MRD testing now accounts for about 40% of clinical volume, with community settings driving adoption.

• Integration with EMR systems like Epic and OncoEMR is expected to accelerate growth, with 25% of volume soon represented by Epic integrations.

• Recent launch in mantle cell lymphoma awaits Medicare coverage, with a long-term goal of 20% market penetration.

Clinical and pharma market drivers

• Clinical evidence from trials like MASTER and MRD2STOP supports taking patients off maintenance therapy, enhancing test adoption.

• ODAC approval of MRD as a primary endpoint has doubled milestone potential in pharma contracts and accelerated discussions for new studies.

• Pharma portfolio reprioritizations may affect patient numbers or time points, but MRD remains a critical component.

• IVDR certification enables global pharma trial participation and ex-US opportunities, though US market remains the primary focus.