Adaptive Biotechnologies Q1 2025: Unpacking Contradictions in EMR Integration, ASP Growth, and Pharma Trial Strategies

EMR integration impact on volume growth, ASP and revenue cycle management improvements, ClonoSEQ assay sensitivity enhancements, pharma trial primary endpoint shift are the key contradictions discussed in Adaptive Biotechnologies' latest 2025Q1 earnings call.



Strong MRD Revenue Growth:
- Adaptive Biotechnologies reported a 34% increase in MRD revenue to $43.7 million for Q1 2025 compared to the previous year.
- The growth was driven by increased clinical volumes, higher prices per test (ASP), and significant contributions from the pharma sector.

Improved Sequencing Gross Margin:
- The sequencing gross margin improved by 17 percentage points to 62% for the quarter.
- This improvement was due to leveraging lower overhead costs, stable direct labor, and increasing pricing across both clinical and pharma revenues.

Significant MRD Pharma Revenue Growth:
- MRD pharma revenue increased by 11% to $15.2 million, including $4.5 million in regulatory milestones.
- The growth is attributed to the positive impact of the ODAC recommendation in multiple myeloma and expanded sensitivity requirements in other diseases.

Record-breaking ClonoSEQ Test Volumes:
- ClonoSEQ test volumes reached a new record high of over 23,000, representing a 36% increase year-over-year and a 10% increase sequentially.
- The growth was driven by increased adoption in blood-based testing, strong contributions from non-Hodgkin's lymphoma indications, and successful EMR integrations.

Cost Management and Cash Burn Reduction:
- Operating expenses decreased by 9%, with total operating spend down to $82 million.
- The reduction in cash burn to $23 million, a 38% improvement compared to the same period last year, was a result of disciplined cost management and higher than expected revenue.