Adaptive Biotechnologies Corporation

Ladies and gentlemen, thank you for standing by, and welcome to the Adaptive Biotechnology's fourth quarter financial results conference call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during this time, you will need to press star 1 on your telephone keypad. Also, if you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Ms. Karina Calzadilla. Thank you. Please go ahead.

Thank you, Jeff, and good afternoon, everyone. I would like to welcome you to Adaptive Biotechnology's fourth quarter and full year 2020 earnings conference call. Earlier today, we issued a press release reporting adaptive financial results for the fourth quarter and full year of 2020. The press release is available at adaptivebiotech.com. We are conducting a live broadcast of these calls and we'll be referencing to a slide presentation that has been posted to the investor section in our corporate website. 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. These statements reflect management's current perspective of the business as of today. Actual results may differ materially from today's forward-looking statements depending on a number of factors which are set forth in our public filings with the SEC and listed in this presentation. In addition, non-GAAP financial measures will be discussed during the call, and a reconciliation from non-GAAP to GAAP metrics can be found in our earnings release. Joining the call today are Chad Robbins, our CEO and co-founder, Julie Rubinson, our president, and Chad Cohen, our chief financial officer. In addition, Harlan Robbins, adaptive chief scientific officer and co-founder, will be available for Q&A. With that, I'll turn the call over to Chad Robbins. Chad?

Thanks, Karina. Good afternoon, everybody, and thank you for joining us on our fourth quarter and full year 2020 earnings call. What a year. Once again, I want to thank all our adaptive employees for their unwavering dedication, flexibility, and execution in a very challenging 2020. Yesterday marked a pivotal moment for diagnostic testing. Adaptive launched T-Detect COVID, proving that it is possible to read how T-cells detect disease in the blood. This test is now validated for COVID, but it's just the beginning. T-cells see all diseases in the exact same way, and T-Detect will translate this natural capability of T-cells into a broadly applicable test that will change the diagnostic paradigm. We recognize it may take time for T-Detect to become mainstream, but the stage is set. The FDA has reviewed and provided encouraging feedback on our EUA submission. FDA is working through how we can implement a new T-cell testing category. FDA clearance under the EUA pathway, when received, will be the next milestone for T-Detect and one of many to come as we realize its value over time. In addition to the launch of T-DETECT COVID, all the efforts we put in place to combat the pandemic are being leveraged to accelerate a variety of development and commercial initiatives that will drive the future execution of our platform to power the age of immune medicine. Let me walk you through the significant progress we made throughout the year. As shown on slide three, Despite the impact from COVID-19, we grew our business and ended the year with over $98 million in revenue, up 16% versus 2019. And revenue in the fourth quarter also grew 25% versus prior year to $30.2 million. As you can see, the amount of progress was significant and demonstrates our ability to execute across our business areas, which are all driven by the same platform. Starting with clinical diagnostics. In addition to the launch of T-DETECT COVID, we also advanced T-DETECT for other future indications. The immune sense study for T-DETECT Lyme was launched and is expected to be completed in 2021. We identified another signal in Crohn's disease, which may represent a significant opportunity to reduce the expensive and time-consuming diagnostic odyssey that Crohn's patients currently undergo. We are also advancing at an increasingly rapid pace in many other disease states. ClonoSeq also achieved important milestones during the year. We obtained our first label expansion with the FDA for CLL in both blood and in bone marrow. And I'm pleased to announce that we recently filed with the FDA for the second label expansion of ALL into the blood. we are hopeful that more patients will be able to know their MRD status from a simple blood draw as data continues to support this approach. In our life science research business, although the most impacted by COVID, we developed in three important ways. First, as a result of findings from the Immune Code database, we launched ImmunoCityMap COVID to elucidate the T cell response to vaccines in development for COVID-19. Second, we further extended Immunozine TMAP to cancer with our recent partnership with AstraZeneca to map T-cell receptors to cancer antigens in AstraZeneca's portfolio of cancer medicines. And third, we entered into several contracts to expand distribution of our research use only kits with partners including prominent CROs and core labs. In fact, yesterday, we announced an expanded partnership with LabCorp to enable broader access to our growing portfolio of immune-driven clinical diagnostic and research products. In drug discovery, we made significant progress on the TCR discovery front with Genentech with both the shared and private products. The path is set for important milestones in 2021, including IND filing by Genentech of the first shared product, generation of a data package by adaptive for a possible second shared product, and proof of concept on the private product. In addition, we leveraged our immune medicine platform to build world-class antibody discovery capabilities that can benefit society for years to come. Our powerful technology allows us to search deeper and find more potent neutralizing antibodies against a wider variation of targets at very low concentrations. We have already found potent neutralizing antibodies against parts of the SARS-CoV-2 virus that could potentially treat patients impacted by a wide variety of variants. We are in advanced discussions with several potential partners. As you can see, 2020 was a busy year for Adaptive and laid a strong foundation for our 2021 plan, which we will discuss in detail throughout the call. But before I pass it on to Julie to provide details of our inline products and our pipeline, I want to take a minute on slide four to reorient to the fact that everything we do at Adaptive derives from using the genetics of the adaptive immune system as the source code of our platform. Our platform then transforms this code into data to enable the development of diagnostics and therapeutics for almost any disease. The massive and growing amount of immune receptor data that we generate with over 58 billion immune receptors, it's really at the epicenter of all of our business areas. And the scalability of our platform and our data enables us to become a clinical product development engine. I am more confident than ever in our open-ended growth story as we have made substantial progress and have development activity underway at various stages in life science research, clinical diagnostics, and in drug discovery. And with that, I'll hand it over to Julie. Julie?