Adaptive Biotechnologies Corporation (ADPT): Business Model Canvas [Dec-2025 Updated]

You're looking at Adaptive Biotechnologies Corporation, a company that has successfully translated complex immune system genetics into a scalable, FDA-cleared diagnostic service. The core takeaway is that while their Minimal Residual Disease (MRD) testing platform, clonoSEQ, is projecting robust 2025 revenue between $202 million and $207 million, the business model is still in a heavy investment phase, with full-year operating expenses guided up to $340 million and a projected cash burn of up to $50 million. This is a high-stakes play: they are leveraging deep partnerships with companies like Microsoft and NeoGenomics to scale their proprietary data platform, and the near-term risk is maintaining that high commercial spend before the MRD segment fully offsets the R&D costs, but the opportunity is to defintely become the standard of care for lymphoid cancer monitoring.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Key Partnerships

The company is defintely focused on embedding its technology into the clinical and pharmaceutical ecosystems through strategic alliances. These partnerships are not just handshake deals; they are the core engine for scaling both the Minimal Residual Disease (MRD) testing business and the Immune Medicine platform, turning complex data into actionable clinical and drug development insights.

You need to see these partnerships as a way to outsource scale and reach, especially since Adaptive Biotechnologies is a high-science company. For example, the biopharma collaborations are a direct revenue stream, while the NeoGenomics deal immediately expands the clinical footprint for clonoSEQ, their flagship test.

Exclusive Commercial Collaboration with NeoGenomics

The multi-year exclusive strategic commercial collaboration with NeoGenomics, announced in January 2025, is a major play to expand the reach of the clonoSEQ minimal residual disease (MRD) test. NeoGenomics, a leader in oncology testing, integrates clonoSEQ into their COMPASS and CHART assessment services for blood cancers like multiple myeloma (MM) and chronic lymphocytic leukemia (CLL).

This partnership is a distribution multiplier, effectively making clonoSEQ the gold standard MRD test available through NeoGenomics' extensive network of oncologists and pathologists. It helps Adaptive focus on technology while NeoGenomics handles the commercial logistics. This is how you accelerate market penetration without building a massive, redundant sales force.

Biopharmaceutical Alliances and the Genentech Shift

Biopharma partnerships are crucial for both revenue and validation of the Immune Medicine platform. The Minimal Residual Disease (MRD) pharma segment is a significant financial contributor, recognizing $16.5 million in regulatory milestone revenue across the first three quarters of 2025 alone ($4.5 million in Q1, $5.5 million in Q2, and $6.5 million in Q3). The sheer volume of work here is impressive, with approximately ~175 active studies across ~50 biopharma partners as of Q1 2025.

However, the biggest news in 2025 was the termination of the Strategic Collaboration and License Agreement with Genentech in August, effective February 2026. While a loss of a long-term partner, it's a financial realignment. Adaptive expects to recognize $33.7 million in non-cash revenue during the second half of 2025 from the remaining amortization of the cash consideration received under the original agreement. This termination also releases Adaptive from exclusivity obligations related to cell therapies in oncology, opening up new partnership opportunities for their digital T-cell Receptor (TCR)-antigen prediction models.

Strategic Alliance with Microsoft for Azure AI

The long-standing strategic alliance with Microsoft is a technology partnership that provides the computational backbone for Adaptive's Immune Medicine platform. They use Microsoft Azure AI for high-scale machine learning and cloud computing to decode the massive genetics of the adaptive immune system. This collaboration is focused on building the TCR-Antigen Map-a foundational tool for developing new diagnostics and therapeutics, including the ambitious goal of a universal blood test.

This is a core resource partnership. Microsoft provides the high-powered computing resources and AI expertise, allowing Adaptive to process its dynamic clinical immunomics database, which contains over 47 billion immune receptors. It's a classic example of combining a unique data asset with world-class computational power.

Illumina and Clinical Workflow Partners

Adaptive also relies on partners to industrialize and distribute its sequencing technology. The non-exclusive agreement with Illumina is for developing in-vitro diagnostic (IVD) test kits for clonoSEQ and immunoSEQ Dx to run on Illumina's NextSeq 550Dx system. This moves the testing capability from Adaptive's central lab out to local hospitals and health systems, which is key for wider adoption.

In 2025, they implemented the NovaSeq X Plus for clonoSEQ clinical sequencing, demonstrating continuous technological integration with Illumina's newest platforms. Plus, on the clinical workflow side, the launch of clonoSEQ integration into Flatiron Health's OncoEMR, an industry-leading electronic medical record (EMR) platform, is a critical partnership. This integration is on track to handle approximately 50% of clonoSEQ orders by the end of 2025 from EMR-integrated sites, streamlining the ordering process for clinicians. This kind of integration is what drives volume-in Q3 2025, clonoSEQ test volume hit 27,111 tests delivered.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Key Activities

The core activities are centered on maintaining the platform's technological edge and expanding its clinical utility. They are spending money to make money, but smartly. Adaptive Biotechnologies Corporation is focusing its energy and capital on two main engines: scaling the commercial diagnostic product, clonoSEQ, and continually advancing the underlying immune medicine platform through focused research.

Translating adaptive immune system genetics into clinical products.

This activity is the entire point of the business: taking the massive, complex genetic data from the adaptive immune system (T-cells and B-cells) and simplifying it into actionable clinical tests and drug development insights. The company's proprietary immune medicine platform is the core technology that enables this translation with speed and precision. This is the engine that drives both the Minimal Residual Disease (MRD) business and the Immune Medicine collaboration segment.

Research and Development (R&D) for the Immune Medicine platform.

Adaptive Biotechnologies is a research-heavy operation, even as its diagnostic business matures. The R&D activity is crucial for future product development, like the T-Detect franchise, and supporting their pharma partnerships. While the company is tightening its belt, the overall operational spend remains significant, with full-year 2025 total company operating expenses guided to be between $335 million and $340 million. That's a huge number, but it reflects the cost of innovating in biotech. For context, the Immune Medicine segment-which houses much of this foundational R&D-generated $3.4 million in revenue in Q3 2025, excluding a one-time Genentech amortization, showing the current revenue is small compared to the long-term investment.

Commercialization and scaling of the clonoSEQ MRD test service.

This is the primary revenue-generating activity right now. The focus is on driving adoption of the clonoSEQ test, which measures measurable residual disease (MRD) in blood cancers. The strategy is working: the company raised its full-year 2025 MRD revenue guidance to a range of $202 million to $207 million. This growth is fueled by increasing test volume, which hit 27,111 tests delivered in Q3 2025 alone, representing a 38% year-over-year increase. The MRD business is now financially self-sustaining, having achieved cash flow positivity and an Adjusted EBITDA of $7.0 million in Q3 2025. That is a major inflection point.

Here's the quick math on the commercial scale:

Integrating clonoSEQ into Electronic Medical Records (EMRs) like Flatiron's OncoEMR.

A key activity for commercial scaling is making the test easy to order and the results simple to view right where the doctor works. This is a critical sales and adoption activity. The integration of clonoSEQ into Flatiron Health's OncoEMR, which went live on July 1, 2025, is a prime example. This single integration immediately streamlined access to MRD testing for over 4,500 clinicians across 1,000 community-based cancer care locations in the U.S. You can't scale a high-complexity diagnostic without making it simple for the end-user.

Maintaining CLIA-certified laboratory operations and quality control.

The entire business rests on the reliability and efficiency of the testing lab. Adaptive Biotechnologies operates a CLIA-certified (Clinical Laboratory Improvement Amendments) lab in Seattle, Washington. This activity involves rigorous quality control, regulatory compliance, and continuous process improvement to handle the growing test volume.

• Improved Sequencing Gross Margin to 66% in Q3 2025, up 10 percentage points year-over-year, which is a direct measure of lab operational efficiency.
• Implemented the high-throughput Illumina NovaSeq X Plus platform in Q2 2025 to increase capacity and lower the cost of sequencing for clonoSEQ.
• Secured a Medicare Clinical Laboratory Fee Schedule (CLFS) rate for clonoSEQ of $2,007, effective January 1, 2025, providing a clear reimbursement benchmark.

Operational efficiency is defintely a core activity now.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Key Resources

The core value of Adaptive Biotechnologies Corporation isn't in physical plant or machinery; it's almost entirely intangible, residing in proprietary intellectual property and the massive data sets they generate. To be defintely clear, this company's competitive moat is built on science and data exclusivity.

Proprietary Immune Medicine Platform for T- and B-cell Receptor Sequencing

The company's foundational asset is its immune medicine platform, which translates the genetics of the adaptive immune system-T-cell and B-cell receptors-into actionable clinical data. This technology is the engine for both the Minimal Residual Disease (MRD) testing and the Immune Medicine drug discovery segments. It's a high-throughput, high-precision sequencing capability that other labs simply can't replicate easily.

This platform's success is directly tied to the company's financial health. For the full fiscal year 2025, Adaptive Biotechnologies expects its MRD business revenue, which relies heavily on this platform, to be between $202 million and $207 million, representing a growth of 39% to 42% over the prior year. That's a huge jump, and it shows the platform's commercial traction.

FDA-Cleared Diagnostic Test Status for clonoSEQ in Key Lymphoid Cancers

Regulatory clearance is a key resource because it creates a barrier to entry for competitors and unlocks broad reimbursement. The clonoSEQ Assay is the first and only FDA-cleared in vitro diagnostic (IVD) test for MRD in multiple myeloma (MM), B-cell acute lymphoblastic leukemia (B-ALL), and is also used in other lymphoid malignancies.

The value of this clearance is evident in the test volume and expanding coverage. For instance, in the first three quarters of 2025 alone, the company delivered a total of 75,549 clonoSEQ tests. Plus, in the first quarter of 2025, they received expanded Medicare coverage for recurrence monitoring in mantle cell lymphoma (MCL), which further solidifies the test's market reach and recurring revenue profile.

Large, Proprietary Immunosequencing Data Sets (Clonotypes)

The data itself is a resource. Every test run and every research collaboration adds to Adaptive Biotechnologies' massive, proprietary database of T-cell and B-cell receptor sequences, known as clonotypes. This data is the fuel for their Immune Medicine business, which partners with large pharmaceutical companies to discover new therapies.

The future value of this data is partially quantified in the company's clinical trial backlog, which stood at $218 million as of late 2025. This backlog represents contracted future revenue from partners who want to use the platform and its data to inform their drug development. Here's the quick math on the company's financial resources as of Q3 2025, which underpin their ability to maintain and expand these data assets:

Clinical Laboratory Infrastructure (CLIA-Certified Lab in Seattle)

You need a physical, accredited facility to process clinical samples at scale. The company's CLIA-certified (Clinical Laboratory Improvement Amendments) lab in Seattle is the physical resource that enables the commercialization of clonoSEQ. This lab is a critical bottleneck, so efficiency matters.

They are continuously upgrading this infrastructure, as seen by the implementation of the NovaSeq X Plus platform for clonoSEQ clinical sequencing in Q2 2025. This investment increases throughput and lowers the cost per test over time, which is key for improving gross margins.

Skilled Bioinformatics and Clinical Science Personnel

The technology is useless without the people who can run the platform, interpret the complex sequencing data, and develop the next generation of assays. Adaptive Biotechnologies' human capital, particularly their bioinformatics and clinical science teams, is a core resource. This expertise is what turns raw sequencing data into a clinically meaningful result.

The company's continued investment in this area is reflected in its operating expenses. Total operating expenses for the full year 2025 are projected to be between $335 million and $340 million. A significant portion of this goes toward research and development (R&D), which was $23.0 million in Q1 2025 and $22.3 million in Q2 2025. This consistent, multi-million dollar quarterly R&D spend is a direct investment in the human and intellectual capital needed to maintain their competitive edge.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Value Propositions

The value proposition is clear: Adaptive Biotechnologies provides highly sensitive, standardized data that fundamentally changes clinical decisions and accelerates drug development. You get the most precise view of minimal residual disease (MRD) in blood cancers, which translates directly into better, more personalized patient management and faster drug trials.

Honestly, the entire business hinges on the unrivaled sensitivity and regulatory status of the clonoSEQ Assay. It's the gold standard for measurable residual disease (MRD) detection, allowing oncologists to see cancer cells at a level of one in one million healthy cells, far beyond what traditional methods can achieve. This precision is what allows doctors to confidently guide therapy, whether it's stopping treatment early or intensifying it to prevent relapse. That's real, actionable data.

Standardized, Accurate, and Sensitive MRD Detection

The core value is delivering standardized, quantitative, and highly sensitive measurable residual disease (MRD) results using next-generation sequencing (NGS). This is a massive improvement over older, less sensitive methods like flow cytometry. The clonoSEQ Assay is the first and only FDA-cleared in vitro diagnostic (IVD) test for MRD in multiple myeloma (MM) and B-cell acute lymphoblastic leukemia (B-ALL) using bone marrow, plus chronic lymphocytic leukemia (CLL) using blood or bone marrow. This regulatory clearance is a huge competitive moat.

The business momentum shows this value is resonating. In the third quarter of 2025, the MRD business segment-driven by clonoSEQ-generated $56.8 million in revenue, representing a 52% increase year-over-year. The full-year 2025 MRD revenue guidance was raised to a range of $202 million to $207 million, showing a projected annual growth of up to 42%.

Predicting Patient Outcomes and Informing Therapy

The data from clonoSEQ is not just a number; it's a clinical predictor. Achieving MRD negativity is strongly associated with better long-term outcomes, and the test is now integrated into clinical guidelines, such as the National Comprehensive Cancer Network (NCCN) guidelines for CLL, to guide treatment duration. This allows physicians to personalize treatment, which saves money and, more importantly, reduces unnecessary toxicity for patients.

Here's the quick math on adoption: clonoSEQ test volume grew 38% year-over-year in the third quarter of 2025, reaching 27,111 tests delivered. Plus, the average selling price (ASP) for U.S. clonoSEQ tests improved by 28% year-over-year, which shows stronger payer coverage and pricing power-a defintely sign of recognized clinical value.

Less Invasive Testing Options, Including Blood-Based Monitoring

A major pain point for patients is the need for repeated, painful bone marrow biopsies. The value proposition addresses this directly by expanding blood-based testing options, making monitoring much easier and more frequent. This is a game-changer for patient convenience and compliance.

• CLL: Blood-based testing is already part of the FDA-cleared indication.
• DLBCL: An enhanced blood-based (ctDNA) assay for Diffuse Large B-Cell Lymphoma was launched in March 2025. This new version delivers a 7-fold increase in sensitivity and is the only commercially available, Medicare-covered ctDNA MRD test for DLBCL.
• MCL: Medicare coverage for recurrence monitoring in Mantle Cell Lymphoma was also expanded in 2025.

Accelerating Biopharma Drug Discovery

The second major value stream comes from the Immune Medicine platform, which includes the immunoSEQ Assay. This platform is a powerful engine for biopharmaceutical companies, providing deep insights into the adaptive immune system. It helps them discover new drug targets and use MRD status as a clinical trial endpoint, which can fast-track the drug development process.

This is a strategic, long-term value proposition, and the company actively partners with pharma giants. While the MRD business is the near-term financial driver, the Immune Medicine segment still generated $3.4 million in revenue in Q3 2025 (excluding a one-time amortization event), demonstrating its continued value as a research and development partner.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Customer Relationships

Building trust with clinicians and deep integration with drug developers requires a high-touch, consultative approach. Adaptive Biotechnologies Corporation doesn't just sell a test; they sell a new paradigm for cancer monitoring and drug development, so their customer relationships are highly personalized and data-intensive.

The core of this relationship strategy is a dual focus: first, on the clinicians and hospitals adopting the clonoSEQ minimal residual disease (MRD) test, and second, on the biopharma partners using their Immune Medicine platform for drug discovery and clinical trials. This is not a self-service model; it demands dedicated support at every touchpoint, from EMR integration to interpreting complex data.

Dedicated Clinical Support for Oncologists and Hematologists

For the clonoSEQ test, the relationship with the clinician is defintely consultative. It's about integrating a new standard of care-MRD-guided treatment-into their daily workflow. This requires a dedicated sales force and clinical support team to train staff, manage insurance hurdles, and ensure seamless data flow.

A key to accelerating adoption is embedding the test directly into the physician's workflow via Electronic Medical Record (EMR) integration. As of late 2025, Adaptive Biotechnologies had integrated clonoSEQ into 165 EMR sites, including a national launch with Flatiron's OncoEMR for community oncology. Here's the quick math: mature EPIC EMR-integrated sites are growing test volume on average at ~2x the rate of non-integrated business, proving that making it easy for the doctor is a huge relationship win.

Strategic Collaboration and Co-Development with Biopharma Partners

The relationship with biopharma companies is a long-term, strategic partnership, not a transactional sale. These partners use Adaptive Biotechnologies' platform to inform drug development, define clinical endpoints, and run trials. This translates into a substantial, predictable revenue stream and a deep, co-dependent customer relationship.

The Minimal Residual Disease (MRD) Pharma segment is a significant driver, delivering $6.5 million in regulatory milestone revenue in the third quarter of 2025 alone. The company maintains a healthy MRD pharma backlog of over $200 million as of Q3 2025, with an expectation that 85% of this backlog will convert to revenue. This backlog represents future revenue tied to the success of their partners' clinical programs, which is the ultimate form of customer alignment.

Continuous Data-Driven Engagement with the Medical Community

To drive clinical adoption, the company must continuously generate and disseminate clinical data proving the utility of clonoSEQ. This data-driven engagement builds trust and informs treatment guidelines, which is a critical step for a novel diagnostic.

In mid-2025, the company presented 30 scientific abstracts at major conferences like the American Society of Clinical Oncology (ASCO) and the European Hematology Association (EHA), with 14 of those being oral presentations. This volume of clinical evidence directly supports the sales team's consultative pitch to oncologists and hematologists.

Consultative Sales Model Focused on Clinical Utility and Guideline Adoption

The sales model is built around demonstrating clinical utility and securing payer coverage, which is essential for patient access. The sales team focuses on overcoming reimbursement and logistical barriers for the physician.

The average selling price (ASP) is a key metric showing the success of this model. In Q3 2025, the U.S. clonoSEQ ASP grew to over $1,340 per test, reflecting improved pricing and cash collections. This improvement is directly tied to policy wins and guideline updates, which are the result of the consultative and data-driven relationship strategy.

Here is a snapshot of key customer relationship metrics as of late 2025:

The goal is to move beyond being a vendor and become a trusted clinical partner. The revenue growth from the MRD business, which is expected to hit a full-year range of $202 million to $207 million in 2025, shows this high-touch model is scalable. Your next step, if you're assessing this model, is to track the conversion rate of those 165 EMR sites to see if the integration investment is truly paying off in long-term retention.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Channels

You're looking at how Adaptive Biotechnologies Corporation gets its core product, the clonoSEQ test, into the hands of oncologists, and the strategy is clear: make it an effortless part of the clinical workflow. The company uses a multi-pronged approach, moving beyond a traditional sales force to integrate directly with the systems doctors use every single day. This is how you defintely scale a diagnostics business.

The company uses multiple channels to reach its distinct customer segments, prioritizing clinical workflow integration.

Here's a breakdown of the primary channels driving the Minimal Residual Disease (MRD) business, which is projected to bring in between $202 million and $207 million in revenue for the full year 2025.

Direct Sales Force and Commercial Outreach

Adaptive Biotechnologies maintains a specialized direct sales force focused on high-volume oncology and hematology practices. While the exact headcount isn't public, the investment in this channel is substantial. For context, the company's Sales and Marketing (S&M) operating expenses were $23.0 million in the second quarter of 2025. This team is crucial for educating clinicians on the value of minimal residual disease (MRD) testing and driving the adoption of clonoSEQ, especially in complex academic and large community settings. This is still the bedrock of new account acquisition.

Integration into Electronic Medical Records (EMRs)

The most strategic channel is the integration of clonoSEQ into Electronic Medical Records (EMRs). This moves the ordering process from a manual, error-prone step to a seamless part of a physician's existing digital workflow. The goal is to make ordering clonoSEQ as easy as ordering a complete blood count (CBC).

A major milestone in 2025 was the integration of clonoSEQ into Flatiron Health's OncoEMR, an industry-leading platform for community oncology, effective July 1, 2025. This single integration immediately expanded access to over 4,500 clinicians across the Flatiron network of 1,000 community-based cancer care locations in the U.S. Management is on track for approximately 50% of clonoSEQ orders by year-end 2025 to come from these EMR-integrated sites, a clear indicator of this channel's growing dominance.

Here's the quick math on the EMR channel's reach:

Laboratory Partnership Networks

A critical indirect channel is the multi-year exclusive strategic commercial collaboration with NeoGenomics, Inc., announced in January 2025. NeoGenomics, a leader in oncology testing services, now integrates Adaptive's clonoSEQ test with its own comprehensive assessment services, COMPASS and CHART.

This partnership is a significant distribution multiplier, allowing clonoSEQ to be offered seamlessly alongside NeoGenomics' existing suite of precision oncology tests for blood cancers, including multiple myeloma (MM) and B-cell acute lymphoblastic leukemia (B-ALL). This is a smart move to capture market share by bundling the gold standard MRD test with a major lab's existing workflow.

Direct-to-Physician Ordering

For practices not yet integrated via EMR or part of a major lab network, the company maintains a direct-to-physician channel through its online diagnostic portal. This ensures that any provider can order the clonoSEQ test service, maintaining accessibility outside of the large-scale institutional integrations. This channel is essential for maintaining a wide net, especially as clonoSEQ test volume continues to accelerate, with 25,321 tests delivered in the second quarter of 2025 alone.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Customer Segments

Adaptive Biotechnologies Corporation serves two distinct, high-value customer segments: the clinical market, which utilizes the clonoSEQ test for patient management, and the biopharma market, which partners to leverage the immune medicine platform for drug discovery and development. The growth is heavily skewed toward the clinical Minimal Residual Disease (MRD) segment, which is forecast to deliver between $202 million and $207 million in revenue for the full fiscal year 2025.

Clinical Users: Oncologists and Hematologists

This segment consists primarily of US-based oncologists and hematologists who treat patients with lymphoid cancers. Their need is a highly sensitive, standardized test to detect and monitor Minimal Residual Disease (MRD) (the tiny number of cancer cells remaining after treatment). The customer base is expanding rapidly; the ordering healthcare provider network grew to 3,436 in Q1 2025. This growth is driven by expanding clinical utility and favorable payer coverage, including a key Medicare expansion for surveillance in Mantle Cell Lymphoma (MCL) in Q1 2025.

In Q3 2025 alone, Adaptive Biotechnologies delivered 27,111 clonoSEQ tests, a 38% increase year-over-year. The average selling price (ASP) for a US clonoSEQ test is now over $1,340, reflecting improved reimbursement and collection efficiencies, with the Medicare rate for MCL surveillance set at $2,007 per test. The primary initial focus is on Multiple Myeloma (MM), which accounts for 62% of current MRD studies.

• Oncologists and Hematologists treating lymphoid cancers:
  • Multiple Myeloma (MM) - Largest volume driver.
  • B-cell Acute Lymphoblastic Leukemia (B-ALL) - First FDA-cleared indication.
  • Chronic Lymphocytic Leukemia (CLL) - Recently updated NCCN guidelines incorporate MRD-guided treatment duration.
  • Mantle Cell Lymphoma (MCL) and Diffuse Large B-cell Lymphoma (DLBCL) - Expanding coverage and clinical use.

Biopharmaceutical Partners and Researchers

The second major segment comprises biopharmaceutical companies, Contract Research Organizations (CROs), and academic researchers. These customers use Adaptive Biotechnologies' proprietary immune medicine platform to discover new drug targets, track the immune response to novel therapeutics, and incorporate MRD testing into their clinical trials. The Immune Medicine segment is smaller but strategically vital, providing a high-margin data engine for future discovery.

The revenue from this segment is more volatile, often tied to milestones and collaboration services. For instance, in Q3 2025, the Immune Medicine revenue (excluding a one-time Genentech amortization) was $3.4 million. However, the MRD pharma business recognized $6.5 million in regulatory milestone revenue in the same quarter, showing the value of their clonoSEQ assay in drug development. Honestly, the long-term value here is in the platform data, not just the near-term service fees.

Patients with or at Risk of MRD

While not a direct paying customer, the patient population is the ultimate beneficiary and a key driver of adoption. The market is defined by the number of patients with lymphoid cancers who require monitoring. The shift to blood-based testing for clonoSEQ is a major win for this group, making the process less invasive and increasing patient compliance. The company is on track for over 45% of all clonoSEQ testing to be done in blood by the end of 2025. What this estimate hides is the emotional value of early, accurate relapse detection for patients and their families.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Cost Structure

The cost structure for Adaptive Biotechnologies Corporation is defintely dominated by the investment needed to maintain its scientific and technological edge, plus the commercial expansion of its Minimal Residual Disease (MRD) business. You're looking at a cost-intensive model right now, driven by high R&D and the operational expenses of running a high-complexity clinical lab.

High R&D expenditure to advance the Immune Medicine platform.

The core of the company's long-term value is the Immune Medicine business, which requires significant, focused research and development (R&D) spend. This is a deliberate investment in future drug discovery and therapeutic partnerships, like advancing the lead T-cell depletion program for autoimmunity. Here's the quick math: the Immune Medicine segment's cash burn alone for the full year 2025 is projected to be between $25 million and $30 million, which shows where a lot of the long-term R&D cash is going.

Sales, General, and Administrative (SG&A) costs for commercialization.

SG&A expenses are primarily focused on driving the adoption of the clonoSEQ test, which means sales force expansion, market access, and reimbursement efforts. The company is actively integrating clonoSEQ into electronic medical record (EMR) systems, which is a major commercial expense, but it is necessary to scale. Overall, the company expects approximately 69% of its total operating expenses to be attributed to the MRD business, which includes a substantial portion of SG&A, demonstrating a clear commercialization push.

Total full year 2025 operating expenses are guided between $335 million and $340 million.

Adaptive Biotechnologies Corporation has been disciplined with its spending, tightening its full-year guidance as of late 2025. The total company operating expenses, which include the cost of revenue, are expected to land between $335 million and $340 million. This stable operating expense is a good sign of controlled growth, even with increasing test volumes. What this estimate hides is the internal shift toward efficiency, which is a key focus.

Clinical lab processing costs and sequencing reagents.

The cost of goods sold (COGS) is a significant variable cost, tied directly to the volume of clonoSEQ tests delivered. The good news is that operational efficiency is improving. For example, the implementation of the NovaSeq X Plus for clinical sequencing has driven meaningful cost efficiencies. This translated into the sequencing gross margin improving by 10 percentage points year-over-year to 66% in the third quarter of 2025, which means the cost per test is dropping as volume scales.

Here is a breakdown of the key financial cost metrics for the 2025 fiscal year:

Full year 2025 cash burn is projected between $45 million and $50 million.

The company has successfully narrowed and lowered its total company cash burn guidance to a range of $45 million to $50 million for the full year 2025. This is a strong indicator of improved financial management and the operational leverage gained from the growing MRD business, which achieved cash flow positivity in the third quarter of 2025. The MRD business is now essentially funding its own growth, allowing the net cash burn to be primarily focused on the Immune Medicine R&D pipeline.

• Reduce cash burn by 51% through the first nine months of 2025 versus the prior year.
• Achieve cash flow positivity in the MRD business in Q3 2025.
• Focus the remaining cash burn mostly on the Immune Medicine segment's R&D.

Finance: draft a sensitivity analysis on the gross margin impact of a 5% increase in sequencing reagent costs by next Tuesday.

Adaptive Biotechnologies Corporation (ADPT) - Canvas Business Model: Revenue Streams

The company's revenue streams are defintely bifurcated into two main engines: a dominant, high-growth diagnostic service line and a strategic, but less predictable, pharma collaboration line. You should think of this as a core service business funding a long-term drug discovery platform.

In the third quarter of 2025, Adaptive Biotechnologies reported total revenue of $94.0 million, a significant jump largely due to a one-time accounting event. Excluding that one-time factor, the core business still showed robust growth, delivering $60.2 million in the quarter. The Minimal Residual Disease (MRD) segment is the clear driver, achieving cash flow positivity ahead of schedule. That's a major milestone for a biotech growth story.

clonoSEQ Test Service Revenue (Minimal Residual Disease/MRD)

The clonoSEQ test is the foundation of the business, generating revenue from clinical testing fees paid by payers, hospitals, and patients. This is a true service-for-fee model, and its adoption is accelerating. The full-year 2025 MRD revenue guidance was recently raised to a range of $202 million to $207 million, reflecting annual growth between 39% and 42%.

The growth isn't just from volume; it's from better pricing, too. The U.S. clonoSEQ Average Selling Price (ASP) grew 28% year-over-year in Q3 2025 to over $1,340 per test, driven by better payer coverage and successful price increases. This is the kind of pricing power you want to see in a specialized diagnostic. The company delivered 27,111 clonoSEQ tests in Q3 2025 alone.

Pharma Collaboration and Immune Medicine Revenue

The second stream comes from partnerships, primarily with pharmaceutical companies who use Adaptive Biotechnologies' platform for drug development, clinical trials, and research. This revenue is less consistent, often tied to milestone payments, but it's crucial for validating the underlying technology. For the full year 2025, MRD milestone revenue is expected to be between $18 million and $19 million.

The Immune Medicine segment, which focuses on platform access and research agreements, is where the long-term potential lies, though its revenue contribution is currently smaller. In Q3 2025, the company recognized $33.7 million in Immune Medicine revenue from the full amortization of payments previously received under the terminated Genentech Agreement, which is why the total revenue number looks so large. Excluding that one-time item, the core Immune Medicine revenue was $3.4 million for the quarter. This segment has a healthy backlog of over $200 million, which acts as a future revenue buffer.

Here is the quick math on the Q3 2025 revenue breakdown:

What this estimate hides is the volatility of the collaboration revenue; while the MRD business is now cash flow positive, the overall company still leans on these partnerships to offset R&D costs in the Immune Medicine division. Still, the core diagnostic business is scaling well.

Key Revenue Stream Takeaways:

• Full year 2025 MRD revenue guidance is $202 million to $207 million.
• clonoSEQ test volume reached 27,111 in Q3 2025.
• Q3 2025 Net Income was $9.5 million, significantly boosted by Genentech amortization.
• MRD business achieved cash flow positivity in Q3 2025.