Adaptive Biotechnologies‘ stock fell 7 percent Tuesday after the company posted larger-than-expected losses during the first quarterly earnings report since it went public in June.
Earnings: Adaptive reported a net loss of $15.7 million in the second quarter, compared to $12.5 million in the same period in 2018. The net loss per share came in at $1.23, greater than the average analyst estimate of $0.14 per share.
Revenue: The Seattle-based biotech brought in $22.1 million for the quarter ended June 30, 2019, up 91 percent from the year-ago quarter. Wall Street analysts had expected revenues of $19.3 million.
The company attributed $11.9 million of that revenue to sales of its sequencing technology and a further $10.3 million to development revenue. Expenses rose to $38.2 million from $24.9 million for the same quarter last year.
Adaptive is known for the large deals that it has signed with Genentech for cancer drug discovery and with Microsoft on a novel artificial intelligence effort, which aims to diagnose multiple diseases from a single blood test.
On the Microsoft front, Adaptive CEO Chad Robins told investors on an earnings call Tuesday that the company is “on track to begin at least one clinical validation study in 2020 in at least one of the prioritize disease settings.” The two companies previously said they were initially focusing on the diagnosis of type 1 diabetes, celiac disease, ovarian cancer, pancreatic cancer and Lyme disease. Microsoft invested $45 million in Adaptive as part of the partnership.
The company’s IPO brought in $321 million of net proceeds and contributed to the company’s substantial reserves, which came to $423 million in cash, cash equivalents and marketable securities at the end of June. A chunk of that stockpile will be used to fund Adaptive’s expansion in Seattle. The company recently signed a 100,000 square-foot lease, tripling the size of its current headquarters in the South Lake Union neighborhood.