Ten years after spinning out from Fred Hutch, Adaptive Biotechnologies is planning a $200 million IPO to help power its diagnostic sequencing tests aimed at the body’s immune system and the scores of related therapies.
The Seattle-based company has proposed to list on the Nasdaq, under the symbol ADPT, by offering 12.5 million shares priced between $15 and $17 each. The midpoint of that range would allow Adaptive to claim a market value of $2.1 billion, according to Renaissance Capital.
The company currently offers two commercial product lines—its immunoSEQ kit and translational research service, and its clonoSEQ clinical diagnostic test to track minimal residual disease levels following cancer treatment. The latter received a de novo clearance from the FDA in September 2018 for monitoring bone marrow samples for signs of remaining cancer cells in patients with multiple myeloma and B cell acute lymphoblastic leukemia.
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Meanwhile, in its prospectus, Adaptive said its immunoSEQ platform has been used by more than 125 biopharma companies and over 480 clinical trials since the company’s launch in 2009. According to Renaissance, Adaptive brought in $59 million in revenue in the 12 months before March 31 of this year.
Following the IPO, the company plans to begin development of a next-generation research kit capable of using a wide range of sample types, which it hopes will enable the global distribution of its products.
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In addition, Adaptive is working with Microsoft to employ machine learning in the creation of an atlas mapping out the interactions between the immune system and multiple diseases, with the ultimate goal of developing a diagnostic blood test. The companies plan to confirm the test’s first indications by the end of this year before bringing it before the FDA for review in 2020.
Adaptive also inked a multibillion-dollar collaboration deal with Genentech at the top of the year to develop T-cell therapies for a broad range of tumors. Using Adaptive’s T-cell receptor discovery and immune system profiling platform, the two hope to create cell therapies tailored to each patient’s specific cancer.
Adaptive received a $300 million upfront payment in February, with Genentech on the hook for about $1.8 billion more if the project reaches successful milestones, plus royalties. Genentech retains control over future commercialization, and Adaptive is barred from developing T-cell receptor-based cell therapies in oncology on its own or with a third party.