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Adaptimmune Therapeutics PLC (ADAP)·Q1 2020 Earnings Summary

Executive Summary

  • Q1 2020 revenue was $0.76M, net loss was $28.17M (EPS $(0.04)), with cash of $86.4M and Total Liquidity of $196.4M; guidance reiterated that operations are funded into 2H 2021 .
  • Strategic highlights included a $50M upfront from Astellas and ~$90M gross proceeds from an equity offering, strengthening liquidity and extending runway .
  • Clinical momentum continued pre‑COVID with increased screening across trials, and EU positive opinion for Orphan Drug Designation for ADP‑A2M4 in soft tissue sarcomas; ASCO clinical updates were scheduled for May 29, 2020 and EASL for August 25–28, 2020 .
  • Near‑term stock catalyst: ASCO oral presentation and May 29 clinical update (ADP‑A2M4 Phase 1 and broader MAGE‑A4 programs), plus EASL AFP cohort 3 data; management continues to target a 2022 launch in sarcoma .

What Went Well and What Went Wrong

What Went Well

  • “After announcing responses in multiple solid tumors in January, we saw increased momentum across our trials during the first quarter of 2020, before the COVID‑19 slowdown,” highlighting demand and progress across programs .
  • EU positive opinion for Orphan Drug Designation for ADP‑A2M4 adds to US FDA ODD and RMAT, strengthening regulatory positioning in sarcoma .
  • Balance sheet improved: $50M Astellas upfront and ~$90M equity offering; Total Liquidity reached $196.4M, extending funding into 2H 2021 .

What Went Wrong

  • COVID impacted patient screening from mid‑March, creating a near‑term headwind to enrollment cadence despite earlier momentum .
  • Other income declined YoY ($0.9M vs $5.4M) given FX effects; revenue remains minimal and tied to collaboration accounting, limiting P&L leverage .
  • No quantitative revenue/OpEx guidance beyond liquidity runway; lack of consensus estimate comparison (S&P Global data unavailable in our session) reduces visibility for near‑term beats/misses.

Financial Results

Sequential Trend (Q3 2019 → Q4 2019 → Q1 2020)

MetricQ3 2019Q4 2019Q1 2020
Revenue ($USD Millions)$0.24 $0.73 $0.76
Net Loss ($USD Millions)$(39.30) $(29.36) $(28.17)
EPS ($USD, Basic/Diluted)$(0.06) $(0.05) $(0.04)
R&D Expense ($USD Millions)$29.62 $20.35 $21.26
G&A Expense ($USD Millions)$10.74 $10.73 $9.26

Year-over-Year (Q1 2020 vs Q1 2019)

MetricQ1 2019Q1 2020
Revenue ($USD Millions)$0.00 $0.76
Net Loss ($USD Millions)$(27.41) $(28.17)
EPS ($USD, Basic/Diluted)$(0.04) $(0.04)
R&D Expense ($USD Millions)$22.02 $21.26
G&A Expense ($USD Millions)$11.77 $9.26
Other Income ($USD Millions)$5.43 $0.94

Liquidity and Share Metrics

MetricQ3 2019Q4 2019Q1 2020
Cash & Equivalents ($USD Millions)$39.41 $50.41 $86.43
Marketable Securities ($USD Millions)$63.45 $39.13 $110.00
Total Liquidity ($USD Millions, non-GAAP)$102.86 $89.54 $196.43
Weighted Avg Shares (Basic/Diluted)630.87M 630.99M 739.75M

Notes: Total Liquidity is defined and reconciled in the press releases .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Funding RunwayAs of Jan 14, 2020Funded through Q1 2021 ——
Funding RunwayAs of Feb 27, 2020—Funded into 2H 2021 Raised vs Jan
Funding RunwayAs of May 14, 2020Funded into 2H 2021 (confirmed) Funded into 2H 2021 Maintained
Clinical Update – ASCOMay 29, 2020Planned updates across MAGE‑A4 programs Oral presentation + clinical update press release Timing confirmed
EASL (ILC) AFP Cohort 3Aug 25–28, 2020Moved from April to Aug due to COVID Oral presentation by Dr. Sangro Schedule adjusted

No explicit revenue, margin, OpEx, tax rate guidance was provided beyond liquidity runway .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2020)Trend
Sarcoma program (ADP‑A2M4)ESMO data: ORR 58% (7/12), DCR 92%; aim to launch in 2022; SPEARHEAD‑1 enrolling Continued screening pre‑COVID; goal to launch in 2022 reiterated; EU ODD positive opinion Positive momentum; regulatory tailwind
Head & neck PD‑1 combo (SPEARHEAD‑2)Planned initiation in 2020 Sites being initiated; design details to be shared May 29 Advancing setup
SURPASS (next‑gen CD8)Initiated; early data expected 1H 2020 First patient at lowest dose responded (prior disclosure); updates planned Early efficacy signal sustained
AFP program (liver)Progressed to Cohort 3 (target 5B cells) Expansion up to 10B cells; no plan to escalate beyond; safety encouraging; EASL timing Dose escalation complete; focus on expansion
Allogeneic iPSC T‑cellsValidation of generating functional T‑cells from stem cells; collaboration with Astellas Poster at ASGCT; progress on CD4/CD8 differentiation; next step IND path (timelines TBD) Platform advancing
COVID impactNot discussed pre‑COVIDScreening slowdown mid‑March; continued manufacturing and screening Near‑term headwind

Management Commentary

  • “In the coming months, we will share clinical updates at ASCO and EASL, supporting our goal to bring ADP‑A2M4 to market for people with sarcoma in 2022 and to identify the next products and indications that we will take into late‑stage development.” — Adrian Rawcliffe, CEO .
  • “There was a very palpable increase in interest in our studies… that really translated into an increase in the actual number of screened patients.” — Elliot Norry, CMO .
  • “We are delighted to establish this significant co‑development partnership with Astellas… enabling accelerated development of off‑the‑shelf T‑cell therapy products.” — Helen Tayton‑Martin, CBO .
  • “A confirmed PR (100% decrease in target lesions) in hepatocellular carcinoma… and a confirmed PR (42% decrease) in metastatic mucosal melanoma…” — Company announcement on initial responses across solid tumors .

Q&A Highlights

  • Enrollment and screening: Despite COVID slowdown mid‑March, management continued screening/manufacturing and remains confident in meeting the 2022 sarcoma launch objective .
  • SPEARHEAD‑2 design: PD‑1 combination design details deferred to May 29 clinical update; sites in process of initiation .
  • AFP dose strategy and safety: Expansion dosing up to 10B cells without stagger; growing confidence as no liver toxicity observed to‑date at high doses .
  • Competitive benchmarks in sarcoma: Management highlighted second‑line response rates of 5–15% for current therapies vs ~50% response rates seen in their program with durability to nine months as of CTOS cutoff .
  • Allogeneic program: Ability to generate CD4/CD8 T‑cells from iPSC and insert TCRs at defined loci; continued process development toward IND filings (timelines not disclosed) .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2020 EPS and revenue could not be retrieved during this session; therefore estimate comparisons are not provided. If available, we would anchor all comparisons to S&P Global’s consensus.

Key Takeaways for Investors

  • Liquidity materially strengthened (Total Liquidity $196.4M) via Astellas upfront and equity offering; runway into 2H 2021 reduces financing overhang .
  • Near‑term catalysts: ASCO (May 29) comprehensive ADP‑A2M4 Phase 1 update and MAGE‑A4 program overview; EASL (Aug 25–28) AFP Cohort 3 oral presentation—both can drive narrative and stock reaction .
  • Regulatory momentum (EU ODD positive opinion for ADP‑A2M4) and prior US FDA ODD/RMAT support a potential expedited sarcoma path targeting 2022 launch .
  • COVID introduced enrollment friction mid‑March, but management indicates continued screening/manufacturing; watch for updated enrollment metrics and any manufacturing/logistics commentary on May 29 .
  • Program breadth is expanding (SURPASS, SPEARHEAD‑2, AFP expansion), while allogeneic iPSC T‑cell platform progresses; partnership with Astellas adds non‑dilutive support and option value .
  • P&L remains collaboration‑driven with limited revenue; OpEx discipline evident (YoY G&A down, R&D modestly down); FX impacts other income volatility—focus remains on clinical data to reset valuation .
  • Actionable: Position around ASCO/EASL events; monitor sarcoma durability updates and head & neck combo design; reassess probability of 2022 launch as data mature and regulatory interactions progress .