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By Michael Kim
NASDAQ:ADAP
Pre-market open on 3/20/25, Adaptimmune (NASDAQ:ADAP) provided a business update for 4Q24 (in lieu of financial results for the quarter/full year to be released in conjunction with the company’s 10-K filing on 3/24/25). From our perspective, key takeaways from ADAP’s 4Q24 business update and management’s quarterly conference call included:
1. Tecelra launch ahead of expectations: Following the commencement of commercialization efforts for Tecelra last year, sales momentum continues to build. Indeed, the number of patients apheresed ramped up from three in 2024 to 10 thus far in 2025, with another three likely in March. From a top line perspective, ADAP generated $1.2 million of sales in 4Q24 from two patients, with an incremental six to eight patients likely to be invoiced in 1Q25 driving $3.6 million to $4.8 million of related revenue for the quarter, we believe. Looking ahead, management expressed confidence in generating at least $25 million of Tecelra sales in 2025 reflecting a building pipeline of patients testing double positive for biomarker checks (20) that are likely to be apheresed/treated in 2Q25 and 3Q25, as well as in various stages of testing (30).
From a distribution standpoint, 20 Authorized Treatment Centers (ATCs) are currently up and running and accepting referrals, with senior executives reiterating expectations to complete the rollout of the full network of 30 ATCs by end of 2025 (around nine months ahead of schedule based on the expected timeline at the time of launch). Moreover, manufacturing turnaround times have remained quicker than expected thus far, with ample supply likely reinforcing building capacity to meet accelerating demand.
2. Lete-cel on track for a quicker commercialization timeline: Lete-cel is a TCR T-cell therapy targeting the NY-ESO cancer biomarker for treatment of synovial sarcoma, as well as myxoid/round cell liposarcoma (MRCLS). On the call, management reiterated plans to initiate a rolling BLA submission in late 2025, with FDA approval anticipated in 2026 followed by commercialization in 2027. Importantly, senior officials plan to leverage existing clinical/testing processes and infrastructure (ATC network, commercial team) resulting in a shorter commercialization timeline versus Tecelra. Stepping back, lete-cel expands the addressable patient population for ADAP’s combined sarcoma franchise, thereby driving $400 million of peak-year gross sales based on management’s projections.
3. Incremental cost savings; profitability inflection point in 2027: In conjunction with ADAP’s 3Q24 earnings announcement, management outlined plans to realize approximately $300 million in aggregate cost savings starting in 2025 and continuing through 2028 reflecting headcount reductions (completed in 1Q25), a reduced footprint, and lower development and manufacturing costs. More specifically, we expect ~$50 million of related cost savings across R&D and G&A costs in 2025 (translating into ~25% of the 2024 run-rate) followed by $70 million to $80 million per year in 2026 and 2027.