Full Press Release Details
Adaptimmune Reports Fourth Quarter and Full Year 2021 Financial Results and Business Update
- SPEARHEAD-1 met its primary endpoint - planning for afami-cel BLA submission in Q4 2022 for people with synovial sarcoma -
- Moving to late-phase development with ADP-A2M4CD8: SURPASS-2 initiated in esophageal and EGJ cancers; initiating SURPASS-3 in ovarian cancer in 2022 -
- Allogeneic platform on-track for planned IND submission in 2023 for first product targeting MAGE-A4 -
- Started our strategic collaboration for allogeneic T-cell therapies with Genentech - $150 million upfront payment received -
- Scaling up autologous patient supply at Navy Yard facility and construction underway of a dedicated allogeneic cell manufacturing facility in the UK -
- Appointed Cintia Piccina as Chief Commercial Officer -
- Financial guidance confirmed: funded into early 2024 -
- Conference call to be held today at 8:30 a.m. EDT (12:30 p.m. GMT) -
PHILADELPHIA, PA. and OXFORD, UK, March 14, 2022 - Adaptimmune Therapeutics plc (Nasdaq: ADAP), a leader in cell therapy to treat cancer, today reported financial results for the fourth quarter and full year ended December 31, 2021, and provided a business update.
"We are focused on four things in 2022: filing our first BLA, building our MAGE-A4 franchise, scaling up our manufacturing capabilities, and making progress with our allogeneic platform," said Adrian Rawcliffe, Adaptimmune's Chief Executive Officer. "Last year, we delivered major milestones of our 2-2-5-2' strategic plan. SPEARHEAD-1 met its primary endpoint and we identified further indications for late-stage development with our next-gen SPEAR T-cells targeting MAGE-A4. Furthermore, not only did we enter a strategic collaboration with Genentech, but we also made tremendous progress with our wholly owned allogeneic therapy targeting MAGE-A4, which is on-track for an IND in 2023."
Progress with the Company's "2-2-5-2" strategic plan to be delivered by 2025
"2" marketed SPEAR T-cell products targeting MAGE-A4
Roadmap to BLA submission for afami-cel1 in 2022 (first-generation product targeting MAGE-A4)
1 Afamitresgene autoleucel "afami-cel" (formerly ADP-A2M4)
2 The primary endpoint is evaluated using a one-sided exact-based Clopper-Pearson 97.5% confidence interval (CI). Because the lower bound of the CI exceeds the response rate reported with historical second line therapy(ies) (18%), the trial has met the pre-specified threshold for demonstrating efficacy.
Further indications for late-stage clinical development for SPEAR T-cells targeting MAGE-A4
"2" additional BLAs for SPEAR T-cell products targeting MAGE-A4
Phase 1 SURPASS trial with next-generation ADP-A2M4CD8 SPEAR T-cells targeting MAGE-A4
Other clinical updates
"5" autologous products in the clinic
Preclinical pipeline update
"2" allogeneic products in the clinic
Allogeneic pipeline update
Financial Results for the fourth quarter and year ended December 31, 2021
The Company believes that its existing cash, cash equivalents and marketable securities, together with the upfront and additional payments under the Strategic Collaboration and License Agreement with Genentech, will fund the Company's current operations into early 2024, as further detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission prior to this earnings release.
Conference Call Information
The Company will host a live teleconference and webcast to provide additional details at 8:30 a.m. EDT (12:30 p.m. GMT) today, March 14, 2022. The live webcast of the conference call will be available via the Events page of Adaptimmune's corporate website at www.adaptimmune.com. An archive will be available after the call at the same address. To participate in the live conference call, if preferred, please dial (833) 652-5917 (US or Canada) or +1 (430) 775-1624 (International). After placing the call, please ask to be joined into the Adaptimmune conference call and provide the confirmation code (1343635).
Adaptimmune is a clinical-stage biopharmaceutical company focused on the development of novel cancer immunotherapy products for people with cancer. The Company's unique SPEAR (Specific Peptide Enhanced Affinity Receptor) T-cell platform enables the engineering of T-cells to target and destroy cancer across multiple solid tumors.
3 Total liquidity is a non-GAAP financial measure, which is explained and reconciled to the most directly comparable financial measures prepared in accordance with GAAP below
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements involve certain risks and uncertainties. Such risks and uncertainties could cause our actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation: the success, cost and timing of our product development activities and clinical trials and our ability to successfully advance our TCR therapeutic candidates through the regulatory and commercialization processes. For a further description of the risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, as well as risks relating to our business in general, we refer you to our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 14, 2022 and our other SEC filings. The forward-looking statements contained in this press release speak only as of the date the statements were made and we do not undertake any obligation to update such forward-looking statements to reflect subsequent events or circumstances.
Total Liquidity (a non-GAAP financial measure)
Total Liquidity (a non-GAAP financial measure) is the total of cash and cash equivalents and marketable securities (available-for-sale debt securities). Each of these components appears separately in the condensed consolidated balance sheet. The U.S. GAAP financial measure most directly comparable to Total Liquidity is cash and cash equivalents as reported in the condensed consolidated financial statements, which reconciles to Total Liquidity as follows (in millions):
| December 31, | December 31, | |||||
| 2021 | 2020 | |||||
| Cash and cash equivalents | $ | 149,948 | $ | 56,882 | ||
| Marketable securities - available-for-sale debt securities | 219,632 | 311,335 | ||||
| Total Liquidity | $ | 369,580 | $ | 368,217 |
The Company believes that the presentation of Total Liquidity provides useful information to investors because management reviews Total Liquidity as part of its assessment of overall solvency and liquidity, financial flexibility, capital position and leverage.
Condensed Consolidated Statement of Operations
(unaudited, in thousands, except per share data)
| Three months ended | Year ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Development revenue | 1,417 | 1,502 | 6,149 | 1,122 | |||||||||
| Revenue | $ | 1,417 | $ | 1,502 | $ | 6,149 | $ | 3,958 | |||||
| Operating expenses | |||||||||||||
| Research and development | (29,505) | (25,777) | (111,090) | (91,568) | |||||||||
| General and administrative | (14,776) | (13,238) | (57,305) | (45,795) | |||||||||
| Total operating expenses | (44,281) | (39,015) | (168,395) | (137,363) | |||||||||
| Operating loss | (42,864) | (37,513) | (162,246) | (133,405) | |||||||||
| Interest income | 179 | 538 | 1,095 | 2,313 | |||||||||
| Other income (expense), net | 4,036 | 414 | 3,852 | 1,162 | |||||||||
| Loss before income tax expense | (38,649) | (36,561) | (157,299) | (129,930) | |||||||||
| Income tax expense | (210) | (52) | (791) | (162) | |||||||||
| Net loss attributable to ordinary shareholders | $ | (38,859) | $ | (36,613) | $ | (158,090) | $ | (130,092) | |||||
| Net loss per ordinary share | |||||||||||||
| Basic and diluted | $ | (0.04) | $ | (0.04) | $ | (0.17) | $ | (0.15) | |||||
| Weighted average shares outstanding: | |||||||||||||
| Basic and diluted | 937,328,712 | 928,676,161 | 934,833,017 | 854,783,763 |
Condensed Consolidated Balance Sheets
(unaudited, in thousands, except share data)
| December 31, | December 31, | |||||
| 2021 | 2020 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 149,948 | $ | 56,882 | ||
| Marketable securities - available-for-sale debt securities | 219,632 | 311,335 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $0 and $0 | 752 | 139 | ||||
| Other current assets and prepaid expenses | 45,126 | 29,796 | ||||
| Total current assets | 415,458 | 398,152 | ||||
| Restricted cash | 1,718 | 4,602 | ||||
| Operating lease right-of-use assets, net of accumulated amortization | 20,875 | 18,880 | ||||
| Property, plant and equipment, net of accumulated depreciation of $36,253 (2020: $31,097) | 30,494 | 27,778 | ||||
| Intangible assets, net of accumulated amortization | 1,000 | 1,730 | ||||
| Total assets | $ | 469,545 | $ | 451,142 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 8,113 | $ | 6,389 | ||
| Operating lease liabilities, current | 2,320 | 2,773 | ||||
| Accrued expenses and other accrued liabilities | 29,909 | 27,079 | ||||
| Deferred revenue, current | 22,199 | 2,832 | ||||
| Total current liabilities | 62,541 | 39,073 | ||||
| Operating lease liabilities, non-current | 23,148 | 20,938 | ||||
| Deferred revenue, non-current | 177,223 | 49,260 | ||||
| Other liabilities, non-current | 673 | 644 | ||||
| Total liabilities | 263,585 | 109,915 | ||||
| Stockholders' equity | ||||||
| Common stock - Ordinary shares par value 0.001, 1,240,853,520 authorized and 937,547,934 issued and outstanding (2020: 1,038,249,630 authorized and 928,754,958 issued and outstanding) | 1,337 | 1,325 | ||||
| Additional paid in capital | 959,611 | 935,706 | ||||
| Accumulated other comprehensive loss | (11,142) | (10,048) | ||||
| Accumulated deficit | (743,846) | (585,756) | ||||
| Total stockholders' equity | 205,960 | 341,227 | ||||
| Total liabilities and stockholders' equity | $ | 469,545 | $ | 451,142 |
Condensed Consolidated Cash Flow Statement
(unaudited, in thousands)
| Year ended | Year ended | |||||
| December 31, | December 31, | |||||
| 2021 | 2020 | |||||
| Cash flows from operating activities | ||||||
| Net loss | $ | (158,090) | $ | (130,092) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation | 5,630 | 6,627 | ||||
| Amortization | 937 | 967 | ||||
| Share-based compensation expense | 20,629 | 10,414 | ||||
| Unrealized foreign exchange gains/(losses) | 540 | (1,333) | ||||
| Amortization/(accretion) on available-for-sale debt securities | 5,276 | 3,836 | ||||
| Other | 1,173 | (55) | ||||
| Changes in operating assets and liabilities: | ||||||
| (Increase)/decrease in receivables and other operating assets | (19,358) | 1,747 | ||||
| Decrease/(increase) in non-current operating assets | - | 2,458 | ||||
| Increase in payables and other current liabilities | 4,207 | 3,867 | ||||
| Increase in deferred revenue | 149,785 | 47,973 | ||||
| Net cash provided by/(used in) operating activities | 10,729 | (53,591) | ||||
| Cash flows from investing activities | ||||||
| Acquisition of property, plant and equipment | (8,574) | (2,341) | ||||
| Acquisition of intangible assets | (207) | (565) | ||||
| Maturity or redemption of marketable securities | 224,343 | 105,022 | ||||
| Investment in marketable securities | (139,762) | (381,040) | ||||
| Net cash provided by/(used in) investing activities | 75,800 | (278,924) | ||||
| Cash flows from financing activities | ||||||
| Proceeds from issuance of common stock from offerings, net of commissions and issuance costs | 2,529 | 334,388 | ||||
| Proceeds from exercise of stock options | 759 | 5,663 | ||||
| Net cash provided by financing activities | 3,288 | 340,051 | ||||
| Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 365 | (960) | ||||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | 90,182 | 6,576 | ||||
| Cash, cash equivalents and restricted cash at start of period | 61,484 | 54,908 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 151,666 | $ | 61,484 |
Adaptimmune Contacts:
S bastien Desprez - VP, Corporate Affairs and Communications
Juli P. Miller, Ph.D. - VP, Investor Relations