Company: ADPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030913
Chunk: 59

Company: Adaptive Biotechnologies Corp
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 59
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CR-antigen prediction models may be insufficient for any number of reasons, which may include difficulty in validating signals and challenges in making progress toward algorithmic-based methods that accurately define TCR-antigen signatures of disease. In addition, we may not succeed in accelerating the development of a ‘digital’ TCR-antigen binding prediction model that will allow us to pursue multiple high-value therapeutic applications and achieve our business goals in a timetable that is commercially viable for our products or our collaborators’ products, or at all. As we continue to grow our immunomics database and advance our prediction modeling activities, we may be unable to translate these efforts into commercialization opportunities. Moreover, as our collaboration activities under the Microsoft Agreement are winding down, we may be less successful in pursuing these opportunities.

If the performance of our computational and machine learning modeling efforts do not meet our expectations or our needs to accurately validate TCR to antigen associations in a reasonable timeframe, our business model may not be commercially viable. Even if we accelerate our efforts, products derived from our platform technologies may have product specific limitations. If we are unable to make meaningful progress in leveraging our prediction models to successfully develop and in the future commercialize new therapeutic products, diagnostic products or services, our business results will be negatively impacted. 

We are exposed to risks associated with our agreement with Genentech, and we may not realize the advantages we expect from it. 

In December 2018, we entered into the Genentech Agreement with the goal to develop and commercialize cancer antigen-specific and neoantigen directed TCR-based cell therapies for the treatment of a broad range of tumor types. Under the terms of the Genentech Agreement, we received an upfront payment of $300.0 million in February 2019 and a $10.0 million milestone payment in May 2023, and we may be eligible to receive up to approximately $1.8 billion in additional payments over time upon achievement of specified development, regulatory and commercial milestones. In addition, we are eligible to receive royalty payments on sales of products that Genentech commercializes under the agreement. We may not be successful in achieving these milestones, and products that Genentech develops under the Genentech Agreement may not be commercialized in the timeframe we expect, may not achieve significant sales, or may not be commercialized at all. 

We are exposed to numerous risks associated with the Genentech Agreement, including Genentech having sole control over the clinical development and commercialization of any products developed under the Genent