Adaptive Biotechnologies‘ stock rose 6 percent to $30 per share in after-hours trading on Tuesday after the company reported higher revenues and narrower losses than expected for its third-quarter earnings.
Revenue: The biotech brought in $26.1 million for the quarter, well above Wall Street estimates of $22.09 million and a 52 percent increase over the same quarter last year. The company earned $14.38 million through development revenue and $11.68 million from its sequencing business.
Earnings: Adaptive reported a net loss of $0.11 per share for the quarter, or $14 million, also beating analyst expectations of -$0.24 per share. Expenses grew faster than revenues on a year-over-year basis, hitting $44.1 million. Research and development expenses more than doubled to $20.5 million.
Outlook: The company raised its revenue outlook for 2019 to $82-to-$83 million.
Adaptive, which operates a sequencing platform that can read the human immune system, has inked partnerships on a range of ventures with organizations such as Microsoft, Genentech, Illumina and Amgen.
Microsoft and Adaptive are formulating a test that can detect multiple diseases from a single blood sample. Adaptive’s ImmunoSeq Dx assay is now able to detect a clinical signal for Lyme disease, CEO Chad Robins said on the earnings call.
On today’s earnings call with analysts, Robins was optimistic about the company’s ClonoSEQ assay, which has been approved to detect low levels of residual disease for patients with two kinds of cancer.
“Like the migration from analog to digital photography, ClonoSEQ massively changing the resolution with which we can see and count cancer cells. We believe it will only be a matter of time until ClonoSEQ is standard of care,” said Robins, who started the company with his brother, Harlan Robins, a former researcher at the Fred Hutchinson Cancer Research Center.
Adaptive went public in June as the only Seattle-area company to test the public markets in 2019. Its stock price is down more than 40 percent since then.