Adaptive Biotechnologies Corporation

Ladies and gentlemen, thank you for standing by and welcome to the Adaptive Biotechnologies Second Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. If you require any further assistance, press star 0. Thank you. I would now like to hand the call over to your speaker today, Ms. Karina Calzadilla. Please go ahead.

Thank you, Chino, and good afternoon, everyone. I would like to welcome you to Adaptive Biotechnologies' second quarter 2020 earnings conference call. Earlier today, we issued a press release reporting adaptive financial results for the second quarter of 2020. The press release is available on our corporate website at www.adaptivebiotech.com. We are conducting a live webcast of this call, a replay of which will be available on our website after its conclusion. I would also like to remind you that during the call, management will make projections and other forward-looking statements within the meaning of federal security laws regarding future events and the future financial performance of the company. It is important to note that these statements reflect management's current perspective of the business as of today's date. Actual results may differ materially from current expectations and projections depending on a number of factors which are set forth in our public filing with the Security and Exchange Commission, including the form 10Q to be filed today. Adapted this claim, any intent or obligation to update these forward-looking payments except as expressly required by law. In addition, non-GAAP financial measures will be discussed during the call. Our GAAP financial metrics and reconciliation from non-GAAP to GAAP metrics can be found in our earnings release issued earlier. Joining the call today, are Chad Robins, our CEO and co-founder, Julie Rubinstein, our president, and Chad Cohen, our chief financial officer. In addition, Harlan Robins, adaptive chief scientific officer and co-founder, will be available for Q&A. With that, I will turn the call over to Chad Robins. Chad?

Thanks, Karina. Good afternoon, everybody, and thank you for joining us on our second quarter 2020 earnings call. I hope that you and your loved ones are staying safe and healthy and as we continue to navigate through these difficult times. I want to start off by saying I'm truly honored to be part of the adaptive team and want to congratulate my colleagues on our first year anniversary from our IPO. The past months have been challenging for everyone and our entire company has shown unwavering dedication and flexibility. Thank you to all our adaptive employees. As you all know, the current coronavirus pandemic Thank you very much. COVID-19 brought the role of the immune system to the forefront of society and has created the opportunity for adaptives to be positioned as the go-to company to rapidly and reproducibly assess the T cell response to any pathogen, including future pandemics. The breadth of advances we have made recently in each of our business areas is remarkable, particularly given the impact of COVID on all of us. Among the main highlights, We reported revenues of $21 million above our pre-announced revenue range associated with our follow-on offering. In our research business, we launched a new product, Immunoseq T-MAP COVID, to elucidate the T-cell response to vaccines in development for COVID-19. In our Clonoseq business, we achieved an important milestone with a label expansion into CLL, our first FDA approval for blood-based testing. For Immunoseq DX, we initiated two clinical validation studies, the ImmuneSense study for Lyme disease, which started enrolling in time for Lyme season, and the ImmuneRase study to collect blood samples from COVID-19 impacted individuals. We also published two manuscripts, which have been submitted for peer review, and detail the largest global effort to map the T cell response to COVID-19 for research and diagnostic purposes. Today, we are also pleased to announce favorable results from our head-to-head study comparing ImmunoCVX SARS-CoV-2 to two leading serology tests to detect past infection in 100 convalescent patients in a real-world setting. And in drug discovery related to our TCR efforts, we continue our activities on the first shared product to support Genentech in an IND submission with the FDA. On our BCR efforts, We have selected and are synthesizing over 2,000 candidates to identify those that best neutralize SARS-CoV-2 for ANGIA to evaluate this fall. As you can see, we are firing on multiple cylinders and recently completed our first follow-on equity raise to enable continued aggressive deployment of capital into our platform. The financing delivered approximately $271.7 million in net proceeds to our balance sheet, and will allow us to incubate our long-term focus on value creation for our shareholders. Now, I want to give you an overview of our T cell-based efforts to respond to COVID. The scientific community has always known that the T cell response is important in the overall study of the immune response. However, it has always been difficult to study T cells because of the massive diversity of HLA-dependent T cells to help your body respond to hundreds of millions of different pathogens. Therefore, most researchers, including vaccine developers, have continued to rely on techniques to either measure the immune response solely based on antibody levels or sometimes using T-cell techniques that are expensive, bespoke, and low throughput. At Adaptive, we set out to solve this problem several years ago. When this pandemic hit, together with Microsoft, we created the Immune Code Program to map the T cell response to SARS-CoV-2 across the population. Our goal is to leverage the existing capabilities of our high-throughput platform to generate an unprecedented amount of T cell data from over 4,500 patients to understand the adaptive immune response to COVID. In June, We launched the Immune Code Database to make the first release of these data publicly available and continue to add to the database as we obtain and analyze more samples. To date, we have sequenced over 1,400 patient samples. From these samples, we have mapped over 135,000 high-confidence T-cell receptors, or TCRs, to the spike protein, as well as 10 other specific parts of the virus which we have shown to be most immunogenic. We have also demonstrated that these TCRs have promising durability since greater than 90% of patients had shared SARS-CoV-2 specific T cells after 90 days post-confirmed diagnosis, the maximum time period currently available to assess response. As a result, we launched ImmunoSeq TMAP COVID Thank you very much. Finally, from the MAP-TCRs, we are curating a set of TCRs that are shared across the population, creating an enhanced T-cell receptor signature or classifier to use for diagnostic purposes. We currently refer to this as Immunoseq DX SARS-CoV-2. To begin with, we believe that this may offer an alternative test to confirm past infection based on the T-cell response, since we are all learning that the patient's antibodies don't seem to tell the whole story. As I mentioned earlier, we recently demonstrated higher sensitivity versus two leading serology tests in a real-world study with 100 convalescent patients. We are very encouraged by these data and believe that they will contribute to our overall understanding of the immune response to COVID-19. These additional data will be published shortly and Julie will provide more details in her remarks. I've never felt more privileged to be part of the broader healthcare community and the biotech industry. It's been incredibly motivating to see not only the work of my colleagues at Adaptive, but also many entities proactively collaborating to solve this global pandemic. With that, I'll hand over to Julie to walk you through more detail across each of our product areas. Julie?