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Adaptimmune Therapeutics (ADAP)
NASDAQ:ADAP
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Adaptimmune Therapeutics
(NASDAQ:ADAP)44Neutral
Positive Factors
FDA Approval
Tecelra's FDA approval has been well-received, with multiple inquiries from medical professionals, indicating strong market interest.
Study Results
ADAP received positive pivotal study results for its lete-cel program, which boosts confidence in its treatment for specific cancer types.
Negative Factors
Workforce Reduction
A 33% workforce reduction was announced as a necessary measure to help the company achieve break-even.
Adaptimmune Therapeutics (ADAP) vs. S&P 500 (SPY)
Market Cap
$125.38M
Dividend YieldN/A
Average Volume (3M)886.48K
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth145.37%
EPS Growth57.01%
CountryUS
Employees449
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.21
Shares Outstanding255,883,210
10 Day Avg. Volume1,412,468
30 Day Avg. Volume886,481
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.72
Price to Cash Flow (P/CF)-0.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside629.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Adaptimmune Therapeutics Business Overview & Revenue Model
Company DescriptionAdaptimmune Therapeutics (ADAP) is a clinical-stage biopharmaceutical company that focuses on the development of novel cancer immunotherapy products. The company is primarily engaged in designing and delivering cell therapies aimed at enhancing the immune system's ability to recognize and attack cancer cells. Its proprietary SPEAR T-cell platform is designed to identify cancer targets and develop T-cell therapies to treat various types of cancer.
How the Company Makes MoneyAdaptimmune Therapeutics generates revenue through strategic collaborations and licensing agreements with other pharmaceutical companies. These partnerships often involve upfront payments, milestone payments based on the achievement of specific clinical or regulatory goals, and royalties from the sale of products developed through joint efforts. Additionally, the company may receive funding from grants or government programs aimed at supporting cancer research and therapy development. As a clinical-stage company, its primary focus is on research and development, working towards bringing its therapies to market, which upon successful regulatory approval, would provide a significant revenue stream from product sales.
Adaptimmune Therapeutics Financial Statement Overview
Summary
Adaptimmune Therapeutics is experiencing substantial revenue growth, yet remains unprofitable with negative operating margins. The company's balance sheet shows a strong cash position but increasing liabilities, and the cash flow statements highlight concerns with negative operating and free cash flows. The company needs to focus on improving profitability and cash generation to ensure long-term financial stability.Income Statement
Adaptimmune Therapeutics has shown significant revenue growth, with TTM (Trailing-Twelve-Months) revenue increasing substantially compared to previous periods. However, the company remains unprofitable, with negative EBIT and net income, highlighting challenges in achieving operational efficiency and cost control.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, indicating some reliance on debt financing. The equity ratio has been declining, suggesting increasing liabilities relative to equity. Despite this, the company maintains a strong cash position, helping buffer against financial instability.50
Neutral
Cash Flow
The company's cash flow situation is challenging, with negative operating and free cash flows indicating that the company is not generating sufficient cash from its core operations. The free cash flow growth is negative, which could hinder future investments and growth.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 175.04M | 60.28M | 27.15M | 6.15M | 3.96M | 1.12M | Gross Profit |
| 166.74M | 50.42M | -100.58M | -104.94M | -87.61M | -96.38M | EBIT |
| -49.26M | -138.04M | -163.97M | -162.25M | -133.41M | -139.77M | EBITDA |
| -38.12M | -128.20M | -155.59M | -155.68M | -125.81M | -131.76M | Net Income Common Stockholders |
| -44.93M | -113.87M | -165.46M | -158.09M | -130.09M | -137.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 146.94M | 146.94M | 204.60M | 369.58M | 368.22M | 89.54M | Total Assets |
| 282.62M | 282.62M | 328.92M | 469.55M | 451.14M | 181.54M | Total Debt |
| 25.23M | 25.23M | 23.08M | 25.47M | 23.71M | 25.46M | Net Debt |
| -118.76M | -118.76M | -84.96M | -124.48M | -33.17M | -24.95M | Total Liabilities |
| 243.10M | 243.10M | 247.04M | 263.58M | 109.92M | 57.91M | Stockholders Equity |
| 39.51M | 39.51M | 81.88M | 205.96M | 341.23M | 123.64M |
| Cash Flow | Free Cash Flow | ||||
| -56.04M | -145.76M | -171.51M | 1.95M | -56.50M | -115.58M | Operating Cash Flow |
| -53.66M | -140.88M | -141.77M | 10.73M | -53.59M | -112.51M | Investing Cash Flow |
| 1.28M | 176.54M | 89.14M | 75.80M | -278.92M | 94.94M | Financing Cash Flow |
| 78.81M | 880.00K | 12.87M | 3.29M | 340.05M | 366.00K |
Adaptimmune Therapeutics Technical Analysis
Negative
0.48
Price Trends
0.58
Negative
0.65
Negative
0.86
Negative
Market Momentum
-0.03
Positive
33.09
Neutral
21.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAP, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.58, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.09 is Neutral, neither overbought nor oversold. The STOCH value of 21.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADAP.
Adaptimmune Therapeutics Risk Analysis
Adaptimmune Therapeutics disclosed 82 risk factors in its most recent earnings report. Adaptimmune Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adaptimmune Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $144.51B | 303.37 | 2.28% | 2.65% | 6.16% | -91.54% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
48 Neutral | $1.23B | ― | -57.48% | ― | 13698.99% | 31.46% | |
44 Neutral | $125.38M | ― | -53.54% | ― | 145.37% | 57.01% | |
42 Neutral | $40.04M | ― | -270.20% | ― | 144.50% | -141.91% | |
42 Neutral | $572.91M | ― | -17.48% | ― | ― | ― | |
39 Underperform | $103.09M | ― | -54.21% | ― | -87.34% | 6.37% |
* Healthcare Sector Average
Performance Comparison
ADAP
Adaptimmune Therapeutics
0.48
-1.06
-68.83%
GILD
Gilead Sciences
117.41
45.05
62.26%
BLUE
Bluebird Bio
4.00
-23.80
-85.61%
FATE
Fate Therapeutics
1.01
-6.88
-87.20%
IOVA
Iovance Biotherapeutics
3.75
-11.35
-75.17%
IMTX
Immatics
4.66
-7.59
-61.96%
Adaptimmune Therapeutics Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -18.64% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong results from clinical trials and a successful product launch, alongside strategic restructuring to achieve financial stability. However, challenges include significant job cuts and discontinuation of certain programs.Highlights
Positive Results from IGNYTE-ESO Trial
The pivotal IGNYTE-ESO trial with lete-cel met its primary endpoint with a 42% response rate overall, including 6 complete responses. This forms the basis of the BLA submission for lete-cel, expected to expand its reach to synovial sarcoma and MRCLS patients.
Successful Tecelra Launch
Tecelra, the first FDA-approved engineered cell therapy for solid tumors, has been embraced by the sarcoma community with 9 treatment centers authorized. Projected to expand to 30 centers by the end of 2025, achieving patient coverage in sarcoma centers of excellence.
Cost Reduction and Strategic Focus
The company plans a 33% headcount reduction and a 25% reduction in operating expenses by next year, leading to a $506 million saving in 2025, aiming for cash flow breakeven by 2027.
Increased Confidence in Sarcoma Franchise Revenue
The company projects $400 million in combined U.S. peak revenue for TCR T-cell and lete-cel, with lete-cel expected to make up over 60% of the revenue.
Lowlights
Discontinuation of Uza-cel for Ovarian Cancer
Suspending clinical trial activities with uza-cel for ovarian cancer to focus on more capital-efficient programs, impacting associated CMC and development costs.
Restructuring and Job Cuts
The plan includes a 33% reduction in headcount and 25% reduction in operating expenses due to strategic restructuring, impacting employees and potentially leading to operational challenges.
Company Guidance
During the Adaptimmune Therapeutics Q3 2024 earnings call, the company provided detailed guidance focusing on strategic objectives and financial metrics. They announced a new strategic business plan aimed at reaching operating cash flow breakeven by 2027, which includes a 33% reduction in headcount and a cost-saving initiative projected to save $506 million in 2025 and $300 million from 2025 to 2028. The company is prioritizing its sarcoma franchise, with a confidence projection of $400 million in combined U.S. peak revenue for their TCR T-cell therapies, Tecelra and lete-cel. With Tecelra recently approved for synovial sarcoma, they have nine authorized treatment centers, with plans to expand to around 30 by the end of 2025. Adaptimmune also reported $186 million in total liquidity at the end of Q3, with further funding options available through their debt facility. They plan to continue focusing on high-potential programs like PRAME and CD70 while suspending investments in earlier-stage pipeline projects.Adaptimmune Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Adaptimmune Therapeutics Announces Key Leadership Changes
Negative
Dec 19, 2024
Adaptimmune Therapeutics announced structural changes, including the resignation of two UK-based executives, as part of its ongoing restructuring efforts. The company plans to focus more operations in the U.S. and aims for significant cost savings, impacting its market positioning and stakeholder relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.