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SEATTLE - Adaptive Biotechnologies Corporation (NASDAQ:ADPT), which has seen its stock surge over 170% in the past year according to InvestingPro data, announced today that Medicare will now cover clonoSEQ testing for patients with mantle cell lymphoma (MCL) in remission. Palmetto GBA, a Medicare Administrative Contractor, has approved the use of clonoSEQ for single time point testing to monitor MCL recurrence. This decision extends the test's use beyond the Medicare episode payment structure, which covers a bundle of tests during treatment.
Patients who have completed MCL treatment can undergo clonoSEQ testing every six months for five years and annually thereafter until a relapse is detected. The pricing for each clonoSEQ test is set at $2,007, in line with the Clinical Laboratory Fee Schedule rate.
MCL is a type of non-Hodgkin lymphoma with around 4,000 new cases annually in the United States. Minimal residual disease (MRD) in MCL is tracked through blood tests to detect early signs of recurrence. Given that relapses can occur up to 15 years post-remission, this coverage expansion is crucial for patient monitoring. For Adaptive Biotechnologies, which maintains a healthy gross profit margin of 50% and generates annual revenue of $179 million, this expansion could significantly impact their market position.
clonoSEQ is the only FDA-cleared test for MRD detection in multiple hematologic malignancies, including multiple myeloma and B-cell acute lymphoblastic leukemia. It is performed at Adaptive's CLIA-certified lab in Seattle and has been approved by New York State's Clinical Laboratory Evaluation Program.
Ben Eckert, Adaptive's Senior Vice President of Market Access, stated that the coverage expansion allows for more effective MCL patient management. It also sets a precedent for potential broader Medicare coverage for clonoSEQ in other indications.
Adaptive Biotechnologies, currently valued at $1.14 billion, specializes in translating the adaptive immune system's genetics into clinical products. clonoSEQ leverages their platform to provide precise MRD measurement, aiding physicians in treatment decisions and early relapse detection. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.89, though investors should note that comprehensive financial analysis and additional insights are available in the Pro Research Report, covering this and 1,400+ other top stocks.
The company cautions that this press release contains forward-looking statements, which are subject to risks and uncertainties and may differ materially from actual future events or results. This announcement is based on a press release statement from Adaptive Biotechnologies.
In other recent news, Adeptus Biotechnologies Corporation reported its fourth-quarter results, surpassing analyst expectations with revenue of $47.5 million, a 4% year-over-year increase. The company's adjusted loss per share was $0.23, which was narrower than the anticipated $0.25 loss. The Minimal Residual Disease (MRD) business, accounting for 85% of the quarter's revenue, grew by 31% to $40.1 million, while the Immune Medicine revenue saw a decline of 51% to $7.3 million. Scotiabank analyst Sung Ji Nam raised the price target for Adeptus Biotechnologies to $12.00, maintaining a Sector Outperform rating, following the company's robust finish to fiscal year 2024 and a positive outlook for MRD revenue growth in 2025. The company projects MRD revenue to increase by approximately 30% year-over-year, aiming for revenues between $175 million and $185 million. Goldman Sachs analyst Matthew Sykes also upgraded Adeptus Biotechnologies' stock rating from Neutral to Buy, raising the price target to $9.00, citing the company's strategic initiatives and improved market position in the MRD sector. Adeptus Biotechnologies has implemented measures to control cash burn in its Immune Medicine business, which is expected to support financial stability. The company ended 2024 with $256 million in cash and marketable securities, positioning it well for future growth.
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