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On Thursday, Scotiabank (TSX:BNS) analyst Sung Ji Nam increased the price target for Adeptus Biotechnologies Corp. (NASDAQ:ADPT) to $12.00, up from the previous $10.00, while maintaining a Sector Outperform rating on the stock. The adjustment follows Adeptus Biotechnologies’ strong finish to fiscal year 2024, where the company exceeded expectations in several key areas. According to InvestingPro data, ADPT’s stock has delivered an impressive 108.56% return over the past year, with the current price of $7.55 suggesting further upside potential based on analyst consensus targets ranging from $7 to $10.
ADPT reported robust growth, with initial 2025 minimal residual disease (MRD) revenue guidance projecting approximately 30% year-over-year growth, aiming for revenues between $175 and $185 million. This forecast builds upon the company’s current revenue of $178.96 million and represents an acceleration from the 5.1% growth recorded in the last twelve months. This forecast excludes milestones and is attributed to multiple factors, including increased average selling prices for clonoSEQ, expansion of blood-based testing, electronic medical record (EMR) integrations, and strategic commercial partnerships. For deeper insights into ADPT’s growth metrics and financial health score of 2.0 (FAIR), consider accessing the comprehensive Pro Research Report available on InvestingPro.
The company has also set targets for operating expenses, including the cost of revenue, to increase by only a low single-digit percentage. This disciplined approach is expected to capitalize on lab efficiencies and a planned transition to the NovaSeq X platform later in the year. As a result, Adeptus anticipates a further reduction in total cash burn for the year by roughly 28%, estimating it to fall between $60 and $70 million. The company’s cash reserves were reported to be $256 million at the end of 2024, with InvestingPro analysis showing liquid assets exceeding short-term obligations with a current ratio of 2.89, while maintaining a moderate debt level.
Adeptus Biotechnologies is on track to reach MRD adjusted EBITDA profitability in the second half of 2025 and aims to achieve cash flow breakeven in the first half of 2026. The raised estimates and price target reflect Scotiabank’s view of the significant growth potential ahead for ADPT’s MRD business, which is currently in the early stages of market penetration and benefits from a strong competitive position. Additionally, the Immune Medicine (IM) business is considered to have a reduced risk profile for the foreseeable future, with revenue from pharmaceutical collaborations expected to offset research and development investments.
Scotiabank’s analyst reiterated the Sector Outperform rating, underscoring confidence in Adeptus Biotechnologies’ growth trajectory and strategic initiatives in place for the coming years.
In other recent news, Adaptive Biotechnologies Corporation reported a stronger Q4 performance than anticipated, with revenue figures surpassing estimates and a narrower loss than initially expected. The company’s Q4 revenue reached $47.5 million, a 4% increase year-over-year, exceeding the consensus estimate of $46.15 million. The adjusted loss per share was reported at $0.23, which was less than the projected $0.25 loss.
Adaptive’s Minimal Residual Disease (MRD) business, a significant contributor to Q4 revenue, saw a 31% growth YoY, amounting to $40.1 million. Meanwhile, the Immune Medicine revenue experienced a decline, falling 51% to $7.3 million.
Looking ahead, Adaptive anticipates MRD business revenue to fall between $175 million and $185 million for 2025. The company also projects total operating expenses of $340-$350 million and a cash burn of $60-$70 million for the upcoming year. These are recent developments that investors should take into account.
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