ADAP - Adaptimmune sheds nearly 26% after strategic combination with TCR² Therapeutics; tops Q4 consensus

2023-03-06 07:27:05 ET

• Shares of Adaptimmune Therapeutics ( NASDAQ: ADAP ) are down 26% premarket despite Q4 earnings beat after the company announced a strategic agreement with TCR² Therapeutics .
• Both the companies will combine in an all-stock transaction to create a preeminent cell therapy company focused on treating solid tumors.
• In its press release, ADAP reported Q4 Revenue of $11M vs. Q4 2021 revenue of $1.4M and an estimate of $5.08M. The rise in revenue was primarily due to an increase in development activities under collaboration and license arrangements.
• Q4 R&D expenses were $23.1M, compared to $29.5M for the same period in 2021.
• Net loss for Q4 was $29.3M or ($0.03) per share, compared to $38.9M or ($0.04) per share in Q4 2021.
• The Company believes that its existing cash, cash equivalents and marketable securities will fund the Company's current operations into early 2025.
• Also, effective today, Adaptimmune and Universal Cells have agreed to terminate the Collaboration and License Agreement dated January 13, 2020 under which the parties agreed to co-develop certain allogeneic cell therapies.
• In addition, ADAP completed restructuring with a reduction in headcount of ~25%. In connection with this restructuring, Cintia Piccina separated from the Company as its Chief Commercial Officer effective March 5, 2023. Ms. Piccina remains engaged with Adaptimmune on a consultancy basis.
• Previously (March 6): Adaptimmune GAAP EPS of -$0.03 beats by $0.20, revenue of $11.03M beats by $5.95M

For further details see: