Adaptimmune Plunges 71%—What’s Driving This Devastating Sell-Off?

Summary
• Adaptimmune (ADAP) slumps to $0.10, a 71% drop from its $0.3469 close
• $55M asset sale to US WorldMeds triggers immediate restructuring
• CEO cites 'financial situation' as key motivator for divestiture
• Intraday range of $0.0975–$0.1515 highlights extreme volatility

Adaptimmune’s stock has imploded on news of a $55M asset sale to US WorldMeds, a transaction that has left investors reeling. The biotech’s decision to offload its flagship cell therapies—including Tecelra and lete-cel—has triggered a collapse in share price, erasing 71% of its value in a single session. With the deal set to close before the week’s end, the market is scrambling to assess the long-term implications for the company’s remaining pipeline and strategic direction.

Asset Sale Sparks Investor Exodus
Adaptimmune’s decision to sell its cell therapy assets to US WorldMeds has triggered a catastrophic sell-off. The $55M upfront payment, coupled with potential $30M in milestone payments, is framed as a necessary step to stabilize the company’s finances. CEO Adrian Rawcliffe explicitly stated the move was driven by the company’s 'financial situation,' a reference to consecutive years of net losses ($70.8M in 2024, $113.9M in 2023). Investors interpreted the transaction as a concession to undercapitalization, signaling a lack of confidence in Adaptimmune’s standalone growth potential. The deal’s structure—retaining only preclinical assets like PRAME and CD70—further underscores the company’s diminished R&D footprint, fueling bearish sentiment.

Technical Divergence and ETF Implications
• 200-day average: 0.4777555 (well above current price)
• RSI: 84.129 (overbought, suggesting exhaustion)
• MACD: 0.01396 (bullish divergence vs. price)
• Bollinger Bands: 0.3287 (upper), 0.2133 (lower)—price near lower band

The technical picture is a paradox: while RSI and MACD hint at short-term overbought conditions, the stock’s collapse has pushed it to a 52W low of $0.0975. Key resistance lies at the 200D MA ($0.478), a level that now appears unattainable. The Bollinger Bands squeeze suggests a potential reversal, but liquidity is a concern given the 44.18% turnover rate. With no options chain provided, leveraged ETFs are off-limits, but the sector leader Amgen (AMGN) is down 1.73%, indicating broader biotech weakness. Traders should monitor the 0.2133 support level—break below here signals a test of the 52W low.

Backtest Adaptimmune Stock Performance
The ADAP experienced a significant intraday plunge of -71%, but the backtest results show a mixed performance in the following days. The 3-day win rate is 43.74%, the 10-day win rate is 45.41%, and the 30-day win rate is 40.07%. This indicates that while there is a decent chance of a positive return in the short term, the overall performance is negative, with a maximum return of only -0.21% over 30 days.

Act Now: ADAP’s Floor is in Sight
Adaptimmune’s sell-off shows no immediate signs of abating, with technical indicators and fundamental news aligning for further downside. The 0.2133 support level is critical—failure to hold could force a retest of the 52W low. Meanwhile, sector leader Amgen (AMGN) is down 1.73%, amplifying risk for biotech names. Aggressive short-sellers may target the 0.0975 level, but liquidity constraints and the lack of options activity suggest a cautious approach. Watch for a breakdown below key support or a surprise catalyst from the restructuring process. Bottom line: Position for a breakdown below $0.10 or pivot to cash if 0.2133 holds.