• Q4 2024 Product Revenue: $1.2 million from Tecelra sales.
• Authorized Treatment Centers (ATCs): 20 ATCs established, representing 2/3 of the planned network.
• Patient Apheresis in Q1 2025: 10 patients apheresed with 3 more scheduled, totaling 13 anticipated.
• Expected Q1 2025 Invoicing: 6 to 8 patients, three to four times the prior quarter.
• Projected 2025 Sales: Approximately $25 million, aligning with analyst forecasts.
• Manufacturing Performance: 100% of products manufactured to specification with no failures; turnaround time under 30 days.
• Reimbursement Success: Over 70% of commercial and Medicare lives covered with no denials.
• Cost Savings: $75 million to $100 million reduction in forward cash flow demands through 2028 by pausing pre-clinical programs.
• Cash Savings from Restructuring: $300 million over the period announced previously.

• Warning! GuruFocus has detected 6 Warning Signs with ADAP.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Adaptimmune Therapeutics PLC (NASDAQ:ADAP) has successfully launched Tecelra, with 20 authorized treatment centers (ATCs) already operational, representing two-thirds of their planned network.
• The company has seen a significant increase in patient aphereses, with 10 patients apheresed in Q1 2025 compared to three in Q4 2024, indicating strong demand and operational efficiency.
• Over 70% of commercial and Medicare lives are in plans that cover Tecelra, with no reimbursement denials to date, showcasing effective payer engagement.
• Manufacturing processes have exceeded expectations, with 100% of products manufactured to specification and no capacity bottlenecks, ensuring reliable supply.
• The company anticipates achieving US peak sales of approximately $400 million for its sarcoma franchise, supported by strong clinical data and strategic commercial infrastructure.

Negative Points

• Adaptimmune Therapeutics PLC (NASDAQ:ADAP) has paused spending on pre-clinical programs targeting PRAME and CD70, which may impact future pipeline development.
• The company has not provided formal revenue guidance for 2025, creating uncertainty about financial projections.
• Despite the positive launch of Tecelra, the company acknowledges the need for additional capital to achieve profitability by 2027.
• The ex-US strategy remains unclear, with a focus primarily on the US market, potentially limiting international growth opportunities.
• The restructuring and cost-saving measures, while beneficial for cash flow, may impact the company's ability to invest in new opportunities or expand its workforce.

Q & A Highlights

Q: Could you comment on the pace of apheresis during Q1, specifically were patient numbers higher in March versus January? And how many patients per year do you think you'll need to treat to achieve profitability in 2027? A: The pace of apheresis has been increasing as we onboard more treatment centers. We had a greater number of apheresis in February and March than in prior months. Regarding profitability, we haven't provided specific revenue guidance for 2027, but the combination of Tecelra and Lete-cel sales will drive us to operating profitability.

Q: Can you confirm what proportion of the 15 confirmed double positive patients as of November went on to undergo apheresis this year? A: The majority of the double positive patients have started the treatment journey, with 10 patients apheresed so far. Most of the others are still in the process, and while some dropouts are expected, we haven't seen many to date.

Q: What are the assumptions and considerations for achieving profitability in 2027? A: We plan to reduce spending by about $50 million in 2025 and by $70 million to $80 million in 2026 and 2027. This will bring our cost base down significantly. The approval and launch of Tecelra and Lete-cel will offset these costs, with anticipated US peak sales of $400 million for our sarcoma franchise.

Q: Do you have sufficient cash to reach profitability in 2027, or does it assume additional funding? A: We are exploring strategic options with TD Cowan to ensure we can finance the company appropriately to reach profitability in 2027.

Q: What is the commercial strategy for Tecelra outside the US, and are there any timelines for filing in Europe? A: Our primary focus is establishing a commercially viable business in the US. We are exploring opportunities for ex-US commercialization, either independently or through partnerships. We haven't provided specific timelines for European filings.

Q: How do the incremental savings from pausing PRAME and CD70 impact the timeline for reaching profitability? A: These savings will help accelerate the timeline to profitability, but other variables, such as the successful launch of Tecelra and Lete-cel, are also crucial.

Q: How many ATCs have infused more than one patient, and are there any capacity constraints that could limit patient infusions? A: Several ATCs have infused more than one patient, and the pace of onboarding ATCs has been faster than expected. We have not encountered any capacity constraints in manufacturing or site capacity.

Q: What is the conversion rate from double positive patients to those who get apheresed? A: It's more a matter of time than percentage, as each patient's journey varies. Most double positive patients are progressing through the treatment journey over time.

Q: Are there any plans to file for Tecelra approval in the EU, and what is the interest level in PRAME and CD70 programs? A: We are part of the PRIME scheme in Europe and plan to report confirmatory evidence later this year. PRAME and CD70 are of interest to several pharma companies, and we are exploring all opportunities to support our sarcoma franchise.

Q: How will the experience with Tecelra drive efficiencies for Lete-cel's approval and launch? A: Learnings from Tecelra's BLA review are being applied to Lete-cel's BLA preparation. We have breakthrough therapy designation for Lete-cel, allowing for expedited development and review. The established commercial infrastructure for Tecelra will also support Lete-cel's launch.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.