Adaptive Biotechnologies (ADPT) 14 Feb 242023 Q4 Earnings call transcript

Thank you for standing by, and welcome to the Adaptive Biotechnologies Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Karina Calzadilla, Head of Investor Relations. Please go ahead.

Thank you, Jonathan, and good afternoon, everyone. welcome 'XX Adaptive Earnings to and Fourth like Year Full Conference would you Biotechnologies to Quarter I Call. of quarter Earlier release today, full fourth reporting press year and Adaptive's financial we results for issued XXXX. a the The press at is release available www.adaptivebiotech.com.

webcast conducting has and that will this are website. in posted the to We on of slide our referencing corporate a call live a presentation been be Investor section

with regarding of management's future These and During and the statements, other SEC this in making results depending business may forward-looking federal management and which Actual securities number the within statements presentation. of call, financial laws forward-looking a filings the future today's projections factors of meaning from in events the company. as on the performance current forth today. are will listed differ of statements the set be materially of public perspectives our reflect

discussed from be call, our addition, will the and non-GAAP can metrics during GAAP reconciliation be a found release. to measures financial earnings In in non-GAAP

Joining CEO Peterson, and the Officer. Co-Founder, Robins, our Chad Chief Financial Tycho our and today are call

management from I'll to Q&A. With Robins. members the call Additional be over available turn Chad Chad? will for that,

quarter you call. Good and Karina. everyone, our year joining full thank afternoon, on us fourth Thanks, and earnings for

This from upfront Medicine. patients experienced Medicine, Medicine. value year, you And Immune to can milestones XX% that grew MRD process Immune burn. the by Adaptive. with We from year The Slide shareholders. volumes. from year a reduce executed in growth Key $XXX to the As we to revenue, XX% the can reduction efficiencies both X, initiated Immune million for and from and on of OpEx MRD versus the MRD offset and amortization MRD a reduction in of Medicine a growth as was strategic milestones test for maximize due Genentech. transformation We including see decline XXXX XX% was mainly Immune clonoSEQ deliver MRD were drive we achieved ended to prior and outstanding excluding review business in and initiatives

a shift exclusively As revenue to strategic Medicine quarter We from based in to a updated guidance company total target made reminder, Immune exclude this and on drug focus Immune last on decision discovery. Medicine. we

ended the in we includes with XXXX. position In sclerosis, the validating of priorities of of $XXX on and cash autoimmune candidate end other strategic Immune efforts supporting our us autoimmunity. year and which goal advance approximately to profitability Importantly, and reaching enables MRD, discovery partnership strong In a of by the penetration with the growth This drive the discovery with businesses. scaling and target revenue both in clonoSEQ cancer Medicine, Genentech, and million, drug multiple target disorders. therapeutic a execute

talent requirements. on details of we into update XXXX, to an go Sachs Before drivers, businesses business, investment needs, the strategic I I'll Goldman a retained different Immune Medicine on review. third review MRD value have each to the In strategic the and and maximize value The shareholders. our advise provide of quarter to

business, quarter. are various the unlock we to end are each at on evaluating We potential of alternatives final of a to full this communicate track the outcome and

sequentially. XX% Slide versus XX% versus closer business, with grew year quarter our look in prior X% quarter-over-quarter a starting clinical and delivered clinical to year increase ASP. XX% Volumes on XX,XXX from with take a grow now QX, a at with in revenue increase Let's continue versus fourth MRD testing and growth both clonoSEQ quarter, the prior X. volume coming and prior tests representing

fewer by quarter a fourth reminder, business As is impacted typically days.

largest record year-to-date. contributor. indications and to marketed a this multi continues year great Growth high came start the with myeloma to all clonoSEQ We from be orders are off

collections are and improve In sequentially. working. fourth place grew in addition, the ASPs the actions expand quarter digits we coverage to in double put

to on out further optimizing and claims ASP policy of revenue and laser-focused cycle noncontracted We by be reducing growth driving continue management.

the As to such, $XXX trends next clonoSEQ years. see we X anticipate all per increased over in in clonoSEQ shown contributing key XX% positive Slide test indications, encouraging It Blood-based increase of is an on on approximately indicators tests. ASP as testing of X.

in the patients. Flatiron's accounts expect provider more integration of XX to progressive-free Health, this and important and Recent is expect to in the testing which ordering system data Blood-based and cycle key XX the and predicts we commercialization presented to via with element the X to accounts. available contributes complete nearly ordering generate our at expected X grew year, a now efforts a are to new percentage partnership myeloma molecular partnership integration in Epic this in services of of data early look accounts growth for a experience. of our of quarter-over-quarter clonoSEQ We completed XXXX. to to our non-Hodgkin's executing care enhance software an MRD in and practices tests. treatment week, to forward growth blood community including prior EHR profiling integration leading OncoEMR clinical grow driver Flatiron also lymphoma. EMR oncology. this make more as several and from our is blood We and we further clonoSEQ and XX% health largest in integrations seeing key with XX% survival Also, strategy showed ASH central respectively. Last multi our X clonoSEQ versus evidence that community, signed We first year, we customer providers

we essentially fourth factors year the in lower Full which Looking portfolio resulted transitory industry, year prior cement said, a biopharma broader of as great clonoSEQ the million, was impacting pharma patients, in and the clinicians, are to the sample XXXX year our portfolio was at ended which sequentially. and healthy our payers. MRD across Takeda volume saw Despite headwinds, we trials. backlog prospective versus a That flat growth leadership in important macroeconomic with signed on standard Pharma experienced pan due to recovery $XXX in gold XX% for these X. for MRD we we and Slide some Beijing. revenue year heme about well positioned partners with collaborations quarter, X

shown Looking clear. our priorities ahead, as are and for MRD Slides on XX, X

First, like further customer adding EMR through growing MCL and by increase expanding through new experience the testing, into use CTCL, generation, penetration enhancing indications cases new blood-based data and integrations.

and operating in XXXX. Second, margins and breakeven EBITDA ASP improving flow of increases positive in cash through adjusted goal of second primary with reaching leverage XXXX the half the

this on under FDA Genentech. our for And first two, the with to Medicine product light devastating Immune XX. cancer our key business X in cell potentially milestones cell target In These discovered multiple therapy may triggered autoimmunity. opportunities biology our T in sclerosis, partnership on acceptance novel sharpened which we high-value further focus candidate causative Medicine druggable was Immune specifically target in Turning Immune IND be One, secured disease. new and and in Medicine discovery, XXXX, sheds that drug milestones. a Slide achieved T to

to Slide products. shown Genentech TCR-based cancer categories of we X development the continue XX, As in support on therapy in of cell

On up our with the for we're development gears as team it Genentech's first first-in-human trial. engaged shared product

we information been clinical a together a that develop building we help identify year, ML partner, we're drug readiness. personalized our fully our antibody to target this that target our have AI In is further known for regulated end-to-end future In with a and and therapeutic Microsoft, workflow. generating deploying to that binds models a receptor And data in this our validate the for over autoimmunity, potential and are initiating MS accelerate use blocks The to testing disease platform focus specifically train MS. efforts. completed our to event trove we models. program, valuable discovery of self-antigen the to is decade in immune process For we causative parallel, treasure candidate

applying prioritized X discover approach targets in exact In we that the and we're Type arthritis. MS used autoimmune addition, rheumatoid additional indications, novel and diabetes same to including

you Slide over will investments in drug partnered wholly-owned now future that for XX, both it key discovery based gate on pipeline. As our pass see value and to points on Tycho. our drive R&D XXXX, I'll proof can we

from with XX quarter in fourth the to Medicine. revenue Total performance full year. offset by for was Immune and XX% reduction from from partially Thanks, main in pharma grew fourth revenue X% revenue was MRD and from driver, up on a quarter Chad. with MRD services and clonoSEQ Starting the the million, $XX.X million, Slide revenue clinical ago. a year regulatory $XX.X milestones. XX%

ago, period milestones, last partially revenue was decreased year-over-year. revenue driven delivered million, XX% year. regulatory driven XX% a Excluding $XXX.X a a same regulatory amortization, Medicine volume prior Full million, ago. revenue, tests XX,XXX by year a MRD lack representing to Genentech up lower clonoSEQ million, test MRD revenue grew ago, year XX% MRD Immune Immune $XXX.X XX% million, increased year XX% expected the $XX.X was decrease year in as XX% increase by the was which service from XX% down from revenue year. from year-over-year. Medicine XXXX milestones. X% $XX a revenue was XX,XXX an from by of tests down offset from by

we starting discovery. mentioned, in XQ guidance and to from Chad 'XX focus As exclude drug with target our opted Medicine revenue call, given to earnings shift Immune the

margin and the which $XX.X on move. to of a Moving Versus to amortization right-hand sequential strong for a prior last the of Net year. increase ago. milestones, was XX%, versus was place total G&A a was due and and million The was year, year the we XXX% loss XX-point Genentech decline on quarter third sales in versus as declined largely contribution. gross quarter continue slide, X% an to of side from ago decline P&L lower have for marketing representing $XX.X the driven a and the the lack driving the operating leverage. compared versus down the total upfront million X-point lab expenses efficiencies R&D, quarter a emphasis the the year margin by increase

Full of $XXX.X marketable million costs ended XXXX, and of expenses, $XX.X to loss a decrease. quarter net ongoing was charge higher securities. For a the our EBITDA million to loss compared to and headquarters in $XXX the This in compared operating loss to impairment XXXX. reflects excluding million X% cash partially the XXXX, We compared with offset efforts was $XXX.X revenue. operating year, adjusted in million which in lab million million were of approximately representing was fourth year full $XXX.X efficiencies, $XXX.X a related million million while by legacy $XXX.X onetime drive equivalents year $XXX.X in space, to the

call, XXXX resembles short-term on earnings as revenues provided biotech turning Slide MRD the for we mentioned Medicine business off we and be ensure guidance our in more discovery Immune a do XX, to long-term traditional drug last to value. that revenue guidance model, since will want trade Now, for not only

outcomes. expect anticipate focused MRD includes and we a from We we could expect the and be full have second impacts upside trends throughout we offset which revenue to pharma weighted investments. pharma million the $XXX that Guidance be will year and from to conservative respectively. discovery, XX% on Immune continue depending revenue to Of to XX% are for $XXX first contribution XX% services, R&D year, given to our trial industry. between to With midpoint, IM note, MRD efforts pharma monitor used collaborations drug clinical includes It half, revenue low between as on At also single-digit XX% target the MRD and biopharma the millions, respectively. our respect broader Medicine be in million. growth milestones and clinical MRD from services the

to to continues upfront recognize of Genentech advance, and with collaboration roughly expect $XX year. amortization the million we our this in Finally,

to we down between reflects and of $XXX year. drive resources cost deceleration the optimize healthy expect supporting be the our for topline in operating expenses, million This revenue, million spending to P&L, operating efforts including $XXX efficiencies and while ongoing Moving growth.

to cash be thoughtful position. continue our about We

quarter, review, reduction burn to annual costs Excluding to XX% With that, XXXX. Chad. of potential per $XX representing million I'll hand versus it the onetime expect from we strategic over average back an the

operator I communicating running off our just to discovery on the look enable We're With the which clonoSEQ drive capabilities and Tycho. to forward us success it MRD a to Thanks, I'm to will for confident you our business and start. the Medicine. maximize and review, ability target to Immune with continue for grow all in to I'll to demonstrate and up outcome in our drug open it that, turn value back strategic questions. stakeholders. of over

first Certainly. ladies our One gentlemen, for and moment, question.

first line of Cowen. Our Brennan from Dan the comes from question

drivers of of considering of Maybe just how walk Tycho, of can key it, kind the just bit revenue. you and outlook 'XX little but kind the a where know goes? walk through through Kind for what I you of OpEx are the the burn? upon touched for we burn

about We're efficiencies I we the continuing across organization. million drive quarter. to Yes. $XX mean talked per obviously

and sales in leverage R&D. and seeing G&A marketing, You're

no as in we calls, ongoing kind review. of the business go stones there's mentioned through As prior we've unturned

the business, we guidance? MRD side, the about the of price realized 'XX Got the it. on on and And the just and the side side, then just implicit think the how pharma the clinical clinical do volume in

Yes. take Susan, that? do you want to

Sure.

with a start the we've volume. the healthy represents business. clinical guess talk the clinical overall let's for midpoint issued A business Let's I guidance growth the trajectory. expect we XX% which growth At pharma. business and then the of to have The over about the --

We revenue growth XX% and revenue anticipating are both growth will The from volume ASP. growth. come

fair. consensus on believe closely And is very I today around focused are We increases. we side, volume the is the XX% which ASP think on

year, million, believe of a to that's to think we the about be anticipate strong in industry-wide continued but the based are able of headwinds roughly XX% that backlog past. from we in and over I previous we backlog, draw that continue we fact growth, healthy which have side the pharma have we the we On the saw do that anticipating the we'll on business, $XXX as

Got -- one it. And then last maybe

low as pharma milestones We in the well MRD million for single-digit prepared comments. did mention in

some so what quarter of -- of the the review. hear a to the discussions Kind share I color point? on Chad in of Thanks, permeations the how the going know outcome of in here kind couple just of Tycho. that what this unfold. at there's And can terms gone. things one, end then maybe Tycho, of last or any strategic and have just you we're could And of at Maybe of terms

at and to to where value I can is moment. goal you Dan, on alternatives I the of Goldman, the can't any Board really with specific our or comment tell What in conjunction the of position. is strong we're stakeholders, I and structures providing either we maximize an our all to to committed stay cash that ensure a the any going very tuned. jeopardize And we part isn't do decision have can't make so update, with business,

Our from the from next Piper David question comes Sandler. Westenberg line of

How the -- Is of noticed just correctly. I of rate should growth a kind the of haven't QX business, some you decrease from the I on walk other thing we noticed I'm think or the year? should expectations the been maybe modeling revenue in in just kind the slight there can MRD business cadence I growth? visibility, in just in of MRD seasonality that pharma? in sequential we of previously say through been payments milestones then about that same the and modeling happened volume last year. terms I Maybe And haven't

about also speak to and recent can growth the seasonality. sequential I part the

for you're think growth quarter-over-quarter the in I the clinical pointing to business QX. X%

is see the favorably. than other business all one other importantly, with continued see the we that fewer think moving profile quarters, do in consider indicators of in leading business that I track quarters. thing QX that typically QX we we we lighter days growth But of typically to than a

contributing growth U.S. from even then out and of finally, started in the trending XXXX slowly more daily businesses record typically and broke U.S. ex-U.S. more we date off overall business to the the rate February average quarter-to-quarter, ex-U.S. with QX, which know And X%, to the is business, clinical we in January. very favorably. monthly we strong whereas volumes at X%. is grew that when grew Additionally, more lumpy

a example nothing of I But see that to can are trajectory might other in just in different typically see factor. continue the aspects summer certain than industry. months. think days, We strong an feel of in of our business. you seasonality growth business on overall, we for probably that based number There of average confident very do business seasonality, And be

the mentioned And in in Dave, so back comments revenue to more in we first half, be we the that half half, MRD expect prepared for the XX% guidance back XX% weighted.

it. Got it. Got

know from What growth get mean I'll areas, conversion mean impact drew what X different cycle in, can the and sense Okay. in those I kind drivers, we how No, stop think blood? that as or of on to look that's ordering how Epic growth XXXX, X we're areas, XXXX, you can and I you DBCL but of just that's a start give if pattern, more you growth kind integration, Thank and those inning just of I inning the much you the drivers you at in we there. mean to compound had And we should Epic? great. then this business? the that as much are how about that I in in

that think mean growth that very you're will XXXX think calendar in previous 'XX. will some the growth in innings to in be drivers the we I yes. in drivers in I the further to 'XX. able for cases, in those to And some growth right continue early Sure, of drivers year we're be advance

example early the up XXXX. those just either September one first For the very only in Top in in accounts December. by were Epic of X and X the first utilize QX We our all live integration saw of end to the completed -- integration, and went set of inning. other days

accounts, nice albeit We in haven't are seeing lift, really results. yet seen those significant anecdotally we

We the one-by-one accounts. process. will material very there XX Epic XX then time we in anticipate having business, But growth the as a to year, impact, for are some meaningful by going previously it's be take I for end work stated a those additional XX overall They see continue think to integrations. XX impact. to of We to to additional. a toward the And

half on impact the noted really earlier, 'XX. to business agreement Health, in with another signed we've Flatiron Chad second have the As of start will which

you we nice expectations. our continue as on trajectory focus as that very DLBCL, data growth DLBCL. really actively was The to second internal about a asked And in promote We aligned generation. saw with well thing

We mantle frontline in use to in NHL continue do just advancing surveillance think as was DLBCL advance lymphoma the other for have the hoping more in to been promotional settings last the ASH we I asked non-Hodgkin's have XXXX of evidence more in some continue had number last of will combined which NHL And in a will in at and that are at We as be in category like case which some been with leveraging assay growth about in we'll will studies to indications end generally. well XXXX, overall other drivers that indications, support nice that real-world myeloma the cell meaningfully build actively nice thing very XXXX for they the than years. year, data multiple be blood. previous you blood. we've the lymphoma business conversations

that of to some We myeloma, dataset in additional as early and the analysis year circulating the it as data well extramedullary see utilizing published DNA expect expand setting in present tumor disease. of multiple this particularly

as expect frequency for for of in we drive QX, the We're generally. to testing as and myeloma up other a of a the which to so have to We more we're year myeloma. number seen continued blood-based data of to increased that blood, able community datasets XX% may testing. be tests and tests in blood tests we business utilize of MRD to exploring continue today we've generation increase I in this blood-based, both this well said, contribute that, our be which will percentage for think quarter-over-quarter will as that nearly But and multiple year, continually of

was great detail. Great. a lot Thank you. That of

from And the Mark our Massaro line from next comes of question BTIG.

the in blood. steadily clonoSEQ of You've tests increased percentage

in out the of that to was think there is And even like target it it's there volumes? become Is can I certain X maybe where a you this point clonoSEQ think X years? a blood you say time have, if majority XX% your quarter.

we a as it done community that Well, can Blood-based on tests related as when continue blood if of mix. of testing well. it see date growing I rapidly to know of being to steadily is bring number And the in become accounts, overall our and we can can increase. this think are we don't but very that majority increase our continue will percentage majority, test and an percentage absolutely, tests. give a you increasing I be of community a exact the to is

through might guys to topline MRD I be I get CAGR revenue of side. used. growth. COGS and in And profitability of excellent. on the But to reagents maintained just are type to know to solid could revenue that Obviously, if XXXX. you've assay? you see XX% able 'XX. what pretty provided input MRD levers there growth, and XX% the curious at I'd you have you I'm costs the half or Okay, XXXX costs can guess between then Obviously, second of your might maybe on curious, or hit profitability you out JPMorgan cost the the some asking I'm come for side. are speak expectations just to maybe clonoSEQ the certain be of that instrumentation to

Yes, absolutely.

Tycho of As we're we a are the we how the continue testing we of reduction equation. answer profitability business at and profile the a absolutely and as unturned. we stone to kind out the figure of But to are We're side can in cost NovaSeq, cost that previously sold. Yes, looking mentioned well, and to the been goods I'll end yes, we've have looking as in at the addition and significant our the that, of operating by year, NovaSeq -- looking switch increase is to will over looking the we no left refine the being at is this reiterate, costs time. at said,

there have other a couple LIMS workflow. terms the another of will we doing of a reducing That year. is for of overhead, there's first the the overhaul process, We're half in the extractions so number highlighted. of in implications lot And that things we've

do launch -- size of my remind timing is mantle cell talk of commercial just the maybe portfolio? lymphoma. market us Okay. about that expand the you just the might on to think And last of question then Can what and sort and you

date. similar to in unmet coffered myeloma perhaps interest indication, high of existing is is said, That an context cell area Mantle interactions to of and sure. have of are we begin the We ALLs need indication. on seeking a proactively more the monitoring significant will that in actively trigger that relatively space an the Medicare already indications. MRD and clinicians which KOLs to it based certainly with be volume today, commercializing for existing smaller us anticipate our our coverage, area and Yes, for several for with

We are interact continuing to looking are forward to engaged now. and with MolDX with them actively

have We information expect to this year. more

my keep questions I'll there. Excellent.

comes the And line Stanley. our next question from of Tejas Savant from Morgan

Tejas. is a for in Yuko see surrogate potential call that the about and hearing This for MRD as talked business? FDA on for year, accept what associated elaborate you to multiple you quickly Earlier how endpoint Could we MRD could upside primary on this you're myeloma.

What members Group Working had of myeloma we've as is that several the a the that FDA committee Myeloma was heard through considering endpoint. International multi that heard Yes. primary

of that that. more We into this certainly in of comes timing for year. of predict don't again, hard But decision. first are any it's couple hoping -- to a we body. government we're I have that are resolution quarters that the waiting But

upon obviously acceleration, have to that It a the into if we that as beneficial terms used business. due. -- data written the be drug deals In there have our the primary would endpoint, are certainly is of contract payments we approval, that

a then And Great. Thank follow-up. you. separate

quantify you I in margins talked the You that initiatives? some underway. Seq the Could those the from switch actions of and uplift LIMS the about know are cost overhaul.

margin. a easily bit we're pharma, I of and that we labs, but really about break not pacing pretty talk can in MRD CLIA said first an the XX% other both gross the the One but with going versus half of clinical have impact out have Yes, LIMS includes little year. granular. transition contributions north XXXX. get I business this won't going LIMS until from to should NovaSeq thing kind think We've been that consistent at specifically. the clear Nova scale, be is, of That to we're don't

And it. Got -- then

also there, the too. will way, by help ASPs

on. go Sorry,

more incremental of one, the OncoEMR be The would already just additional question Flatiron, that how you in Flatiron how -- here. -- agreements X the Maybe one it terms Okay. agreement, in much to Epic accounts slip have? the much

mean to accounts? of terms access You in

Yes.

it's have with bit X-X. oncologists engaged some mean, the of -- oncology community -- is -- patients accounts. just for interpret XXX have in they U.S., top They of which are XX,XXX is to the are I these Flatiron have of indications. accounts also is the accounts, very large a in potential XX% utilized disease tremendous. -- are number business to a But they currently relevant us for access OncoEMR because implemented the XX community our hard that that's about

it leave I'll think I at that.

high Yuko, the and medical EHR as within us at a providers they're into community all integrated and into and the think the to largest integrated giving and one the oncology about Epic of and being cover network this, Flatiron level, institutions, being think trying about, why do we community academic and bases access. centers and practices. We're

costs equation. Epic of one the kind to already we're do the Flatiron don't year takes that this it the implementation. of one kind it benefits excited early we and Epic of seeing Continuing a it's to integrations they on push done. of time the setup go about We're a from can we've sites the to fourth by at certainly faster once while on what excited kind that to about we're One kind kind having And of making integration. on to just being opposed as but of very a doctor it in and the Epic, -- is ordered. backlog hit it's to of more very a for test easier timing, that a tests simple simply I at something it to we it to all with button, looking of lead invest their mean order -- many the it's believe going is to have upfront quarter same But a out

question next from our from Brackmann Andrew William the comes Blair. line And of

I just on pricing want a to minute. circle back here for

get the an think also and mix those those reducing how cycle coming improvements you're Medicaid management. XXXX? some and Can Thanks. revenue of sort update sort initiatives in I talked you of impacting then we about thinking about past, from where stand on just

noncontracted I in of claims, on lot of just working really how work of we remarks. prepared process, kind increases. out put working. ASP reiterate We're reducing of things out and Yes. I'll All We're things the my on of on it's just auth tackling policy a play that excited appeals process, some those the already the about mentioned blocking to starting of etc. kind and and the in are prior claims, kind

more continue Medicaid percentage of and our going terms down up into In test percentage winds to of relates of an kind large Medicaid, expand kind as as naturally also overall indications, of Medicaid a to the working. mix our we've see we $XXX we've is talked initiatives increase over are that quantifying in a X next Overall, already that years, to terms -- What just starting ALL. already we're of and -- the work. of about

of taking be some you give And that you're respect with I us of you want perfect. to of proof might the Any That's level comments investments R&D then things. as to back side spend go just Medicine be the what there? Thanks color about thinking within sort Immune to gating Okay. specific comfortable around things for can the your for question. for points might you looking of

Benzeno Yes. who going turn Sharon to Andrew, to the IM business. over that I'm runs

Yes, thanks for question. the

advance disease. half that the and a over therapeutic the drug proof in data into focused to course successful multiple multiple clinic. be MS can as with discovery pretty obviously to in a and to heels modality goal Of platform. of antibody workstreams in a MS during this in this X the our target by starting our In sclerosis. of this using very that to both the parallel first on to that in years, X the so our year. target about using of discovery also last as already think of We're And the designate And those ultimately encouraged of disease expect positive deployed vivo target ensure parallel, what for antibody at on validation first approach, novel next, platform, We identified next have in we're we're models able parallel, deploying have completed to candidates on to the devastating further year the year, being we're of processing end the front it's course, of we've year we're we that use we antibody after and sclerosis, discovery of vitro target. then go concept the our candidates

our And from line Scotiabank. Nam Sung question the next comes from Ji of

you Maybe can are kind trial you on could solid talk obviously maybe cancellations? are I side, Adaptive? delays Are seeing trial But you seeing studies? trends specific any if pharma that's MRD backlog of mostly about there. guys little a or these Or the of the probe the to further lengthening

regard we I broader with in clinical relevant just market the think that to the and one in trends thing to the indications that's are note we're is probably in that investment seeing trials.

declining. been Over then since business, the years which is pharma trials of number has our XXXX was in increasing. and largest myeloma, several in to last number the peaked multiple The steadily the contributor

if over or decline. business, And The has relatively so, for that specific stronger I is we hasn't several subset trials have to are of drawing like In lymphoma, the of It trials, started over I subset the trials the strong accelerated non-Hodgkin's smaller aware should smaller different. to potentially time. when number even to competing of for last FDA one consistent for years. of accepts indication, a think in other and a seems say, in be trends very as position are indications be a that a surrogate MRD our made But we approval. thing from

focus over is in driving the growth opportunity less the context a just of market a for in smaller growth likely non-Hodgkin's we shrinking multiple increased of And in so whereas penetration lymphomas, terms of in the big us that's myeloma term. have area longer

curious potential Got as Great. opportunity the you. understanding think going market how XX% then of addressable the it NHL. back you of the potential of And early subtypes think that we future? kind XX% -- is My of about roughly just about CTCL do too in is market Is DLBCL kind is Or the question the XX%, to of tell? the then NHL. market Just NHL of size. on there's MCL And XX% aggressive the there. to

Yes.

few, so early can developing and data is still I of a it first will to assay be seen. But lymphoma lot I of tap in and of that a that what in think We're beyond technically, in say. and it's which the the say be to indications market ultimately question non-Hodgkin's we addressable lymphoma, percentage remains total invest to just any into applicable is, determine will evidence we developing.

to MCL data is XX% that we're do, mentioned year focused area the that as about that CTCL. And X plus, filing XX% all we're same as Medicare on other are XX% we aggressively DLBCL We you That NHL. of have this with one on. represents and the

then Got quick for one you. And Tycho. one

we that the Genentech that if year? million it, is throughout this for $XX missed should but model the Sorry amortization ratably -- I year,

I ratably the yes, month right for it shift fine. to kind year way is Yes. around month, it. but mean think the I I that's do just mean of to will

line from Our Instructions] Goldman Richter of [Operator question next the comes from Salveen Sachs.

questions This is Elizabeth on for us Salveen. today. from Two

provide on Epic Flatiron structured is, Or revenue it recognition for Health, first would payments? color on continuous if a second is partnership. around some partnership how with And is be you then that The clonoSEQ? milestone of just can partnership more that kind the and include would your

any curious Just the early you're from how thus you. users physicians it's about integration you've Thank what learning if in being used. days this or how had and and far works feedback

it Epic I'll Elizabeth, the over go I'll over early provide the day Susan on then and color kick integration more learnings. first one, to to Yes.

fee Flatiron's tell Flatiron, industry, can and do I your while entail setup I can't can this milestone into It's what point. a I But is go you you as think specifics doesn't most fee as an of be Susan, agreement, elaborate of the the annual is position kind it to in to I question Epic? at payments. able to about far basically As the protect talk the want to

been has date. feedback very positive to The yes. Sure,

In the having with of a the experience sites just short time come fact, integration. of scope expand our back the several after of we've early seen integration and to asked

versus or volumes where of are integrated we've more expanding For on the the We've only. accounts that to outpatient and bringing physicians ordering inpatient example, the of both in in increases through flowing seen the date. physicians to each number setting

orders enter simply I in only improvement and to enter orders think as the directly reduction for. to is kind the from the versus find be manually the important but you uploaded the searched test in place EMR would most to orders they other results of and to required where results manpower receive having not now into land

Epic performing. delivery, discrete enable analysis, to more are and more to in is accounts integration evidence data which The other of expressing our benefit coming is going interest which more real-world streamlined and of us

tool heme. I will insights for think research but a not be efficiency, for this in around clinical expanding also MRD only

follow-up And is question from of a Vatnsdal our JPMorgan. line Rachel next the from

ASP wanted up I Perfect. follow to some earlier. comments on of the

lift you be You about think next would over to by noted cadence years. Will how Any X about the expect you $XXX Can of just helpful. linear? the it the months? that XX next talk ASPs be should there we step-up over comments that

it would out at as Yes, model this point I Rachel. Hi, linear.

leading different $XXX next over seeing ASP years. on I reality to of variety all can we're factors, in to of age a over indicators is a think linear collections But month-to-month, vary based point kind even kind of X the they quarter-to-quarter. growth the the ASPs increases and

can Great. have in benefit type What could And the state of really impact bills? through a have well? XXXX you And then for just then as year on us the that do as you your guide updated walk biomarker business? the any follow-up, embedded the thinking around of that

the I are biomarker great we're to But based the a that increasingly that into laws the baked question. the say state And and it don't guide. starting optimistic It's hold. discussions having we have we've been we are on optimistic. conversations take would specifically of enforcement

some industry and But I of national the a board insurance for to position hard on Just area are and on working you net-net, fighting XXst of these AdvaMed, initiatives. company all that not to it's sit we're lobbies associations, look focus. prominent the give the Medicine, if from trying Coalition I at And of kind Century think context, a you're pay. ACLA Obviously, to be companies the legislations, positive of are the overnight states, no, on down baked incremental going insurance to are kind Again, legislation. over hoping kind time think you see into comply it's states obviously, enact incremental. And an we're trends that not coming will don't it's of with but starting the seeing that's this evidence biomarker you guide. And success. of more I

session as Thank your ladies as program. today's gentlemen question-and-answer participation. does well This you and for the conclude

day. disconnect. now may You Good