Adaptive Biotechnologies Corporation

Good afternoon and thank you for standing by and welcome to the Adoptive Biotechnology's first quarter 2021 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 will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Karina Caldavila. Thank you. Please go ahead.

Karina Caldavila Thank you, Teri, and good afternoon, everyone. I would like to welcome you to Adaptive Biotechnology's first quarter 2021 earnings conference call. Earlier today, we issued a press release reporting adaptive financial results for the first quarter of 2021. The press release is available at www.adaptivebiotech.com. We are conducting a live webcast of this call and will 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 meanings of federal security law 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, Julia Rubinstein, 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 first quarter 2021 earnings call. At Adaptive, what has remained a constant is our commitment to change how diseases are diagnosed and how drugs are discovered using our proprietary immune medicine platform. This is supported by our culture, which is stronger than ever, and we can see that in the palpable energy and excitement we feel as we plan to begin the process of reentry and moving into our offices that are new in Seattle, San Francisco, and New York. I want to thank all our employees for their commitment to the company, to each other, and to the patients we serve. As you can see on slide three, our first quarter results reflect a strong start to the year and are a testament to the diversity of our platform and the capability of our team. Revenue in the first quarter was $38.4 million. representing significant growth of 84% versus prior year and 27% versus prior quarter. We saw substantial progress across our business areas. Most notably, we achieved an important milestone in our clinical diagnostics franchise with T-Detect COVID, which received emergency use authorization in March for the confirmation of recent or prior SARS-CoV-2 infection. It is the first T-cell-based tests to be validated by the FDA and marks an important strategic product milestone for adaptive. Importantly, T-Detect COVID proved that T-cells can detect disease as well or better than other well-known methodology, which would de-risk the future success of T-Detect. In addition to the continued work ongoing to make T-Detect Lyme available by year-end, we are excited about new data we have obtained that further supports the potential of T-Detect to diagnose patients with Crohn's disease. Importantly, these data not only confirm the signal already identified last year, but also show a clear distinction from colitis, a differentiation that is often challenging with current diagnostic tools and that could provide substantial benefit to clinicians in determining the early care path for patients. We believe this is an important milestone in demonstrating the ability of T-Detect to differentially diagnose patients with shared symptomatology. Julie will share some of these data in her remarks, and we expect to share more details in a public forum later this year on both Lyme and gastrointestinal disease. Related to MRD Pharma, which is accounted for within our research business, I want to highlight the consistent quarter-over-quarter growth generated by our partnerships, which further supports the overall value of the Clonaseq brand to adaptive clinicians and our pharma partners. This quarter, we booked $7 million in milestones related to FDA regulatory approvals in which our Clonaseq assay was used as a regulatory endpoint by two of our MRD pharma partners. These milestones were contemplated as part of our full-year guidance, but it's great to see these materializing and accelerating. In addition, we recently added a new collaboration with Pfizer, a long-standing partner, who will now use our MRD assay to measure minimal residual disease at a clinical endpoint in its clinical trials. Regarding our Immunoseq TMAP COVID efforts, we are seeing greater uptake from our pharma and academic customers who continue to be interested in understanding T cells and their role in immunity of the virus and or the immune response to vaccines. The data we have generated for our partners is contributing to key publications. Most notably, AstraZeneca's New England Journal of Medicine publication included our data demonstrating that T cell responses may contribute to protection from COVID-19, even in the presence of lower neutralizing antibodies. This is one of several key use cases for TMAP COVID that are emerging as the dynamics of the pandemic continues to evolve. In our drug discovery efforts with Genentech, while suspension of the first shared cellular therapy candidate was an unfortunate setback, our collaboration remains strong, and we are advancing toward the completion of the next shared candidate data package. For the private product, we completed an initial proof of concept from the first set of 15 cancer patients, and we are working on many more this year. We are optimistic about the progress towards our ultimate vision with Genentech to enable the development of personalized cancer cell therapy, which, if successful, may transform cancer treatment. In summary, we had a strong start to the year and are confident in our ability to execute toward our 2021 goals. As you can see, we have multiple revenue sources and open-ended growth opportunities stemming from the same platform. This is possible because we use the adaptive immune system as a source code to enable the development of diagnostics and therapeutics for almost any disease. As we continue to achieve important development proof points that demonstrate the power of our platform, our ability to become a clinical product development engine accelerates. With that, I'll hand it over to Julie.