Adaptive Biotechnologies Announces Non-Dilutive Royalty Financing with OrbiMed for Up to $250 Million
September 12 2022 - 7:30AM
Adaptive Biotechnologies Corporation (Nasdaq: ADPT), a commercial
stage biotechnology company that translates the genetics of the
adaptive immune system into clinical products to diagnose and treat
disease, today announced it has entered into a non-dilutive royalty
financing agreement with OrbiMed for up to $250 million. Proceeds
from the agreement will strengthen Adaptive’s balance sheet, which
stood at over $450 million in cash and marketable securities at the
end of the second quarter of 2022, and provide the Company with
additional capital to support its growth trajectory and path to
profitability.
“We are excited to work with OrbiMed on this creative royalty
structure to continue unlocking the full potential of our immune
medicine platform,” said Chad Robins, Chief Executive Officer and
Co-Founder of Adaptive Biotechnologies. “The agreement will extend
our cash runway while providing flexibility to invest in growth
initiatives in both our MRD and Immune Medicine business
areas.”
Under the agreement, Adaptive will receive an initial tranche of
$125 million with the option to receive an additional $75 million,
both for general corporate purposes. Adaptive can also access a
third tranche of $50 million for potential M&A. OrbiMed will be
entitled to receive 5% of the Company’s GAAP revenues, increasing
to 8% and 10% if the second and third tranches are drawn,
respectively.
“This investment reflects our confidence in Adaptive
Biotechnologies and the potential to accelerate its significant
contributions to the field of immune medicine,” said Matthew Rizzo,
General Partner of OrbiMed. “The company is well-positioned to
deliver revenue growth while continuing to innovate and expand the
applications of its platform in clinical diagnostics and drug
discovery.”
DLA Piper LLP (US) acted as the Company’s legal advisor, and
Covington & Burling LLP acted as OrbiMed’s legal advisor.
About Adaptive Biotechnologies Adaptive
Biotechnologies (“we” or “our”) is a commercial-stage biotechnology
company focused on harnessing the inherent biology of the adaptive
immune system to transform the diagnosis and treatment of disease.
We believe the adaptive immune system is nature’s most finely tuned
diagnostic and therapeutic for most diseases, but the inability to
decode it has prevented the medical community from fully leveraging
its capabilities. Our proprietary immune medicine platform reveals
and translates the massive genetics of the adaptive immune system
with scale, precision and speed. We apply our platform to partner
with biopharmaceutical companies, inform drug development, and
develop clinical diagnostics across our two business areas: Minimal
Residual Disease (MRD) and Immune Medicine. Our commercial products
and clinical pipeline enable the diagnosis, monitoring, and
treatment of diseases such as cancer, autoimmune disorders, and
infectious diseases. Our goal is to develop and commercialize
immune-driven clinical products tailored to each individual
patient.
About OrbiMed OrbiMed is a leading healthcare
investment firm, with approximately $18 billion in assets under
management. OrbiMed invests globally across the healthcare
industry, from start-ups to large multinational corporations,
through a range of private equity funds, public equity funds, and
royalty/credit funds. OrbiMed seeks to be a capital provider of
choice, providing tailored financing solutions and extensive global
team resources to help build world-class healthcare companies.
OrbiMed’s team of over 130 professionals is based in New York City,
San Francisco, Shanghai, Hong Kong, Mumbai, Herzliya, and other key
global markets. www.orbimed.com
Forward-Looking StatementsThis press release
contains forward-looking statements that are based on management’s
beliefs and assumptions and on information currently available to
management. All statements contained in this release other than
statements of historical fact are forward-looking statements,
including statements regarding our ability to develop,
commercialize and achieve market acceptance of our current and
planned products and services, our research and development efforts
and other matters regarding our business strategies, use of
capital, results of operations and financial position and plans and
objectives for future operations.
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Discussion and Analysis of Financial Condition and Results of
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you that forward-looking statements are based on a combination of
facts and factors currently known by us and our projections of the
future, about which we cannot be certain. As a result, the
forward-looking statements may not prove to be accurate. The
forward-looking statements in this press release represent our
views as of the date hereof. We undertake no obligation to update
any forward-looking statements for any reason, except as required
by law.
ADAPTIVE MEDIALaura
Cooper205-908-5603media@adaptivebiotech.com ADAPTIVE
INVESTORSKarina Calzadilla, Vice President, Investor
Relations201-396-1687Carrie Mendivil, Gilmartin
Groupinvestors@adaptivebiotech.com
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