Company: ADPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030913
Chunk: 60

Company: Adaptive Biotechnologies Corp
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 60
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ech Agreement. For instance, in 2021, Genentech suspended development of a first product candidate against a shared cancer antigen target in response to recently published data specific to that target, following which Genentech selected to advance a second product candidate. The Genentech Agreement also prevents us from developing or commercializing TCR-based cellular therapies in the field of oncology on our own or with any third party. Our collaboration involves risks that are different from the risks associated with independently advancing therapeutic candidates and related operations, including that Genentech may: 

•have or develop economic or business interests that are inconsistent with ours; 

•take actions contrary to our instructions, requests, policies or objectives; 

•take actions that reduce our return on investment for this collaboration; 

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•fail to distinguish itself from biosimilar competition; or 

•take actions that harm our reputation or restrict our ability to run our business. 

Genentech’s degree of control of the collaboration, clinical development and commercialization efforts may impact the payment amounts that we receive under the Genentech Agreement. For example, Genentech may suspend development of product candidates or decide not to pursue commercialization of product candidates at all, or it may agree to pay royalties to third parties or adopt a pricing model that reduces the amount of royalties we might otherwise expect. It is also possible that effective cell therapies will not be developed under the Genentech Agreement or, if developed, approved by the FDA or comparable regulatory authorities outside of the U.S. Genentech may also terminate the Genentech Agreement at its convenience, at any time and without cause. 

We may not be able to perform our research, development and commercialization related obligations under the Genentech Agreement, including performing TCR screening activities for product candidates being developed and commercialized under the Genentech Agreement. For example, in the event Genentech commercializes a under this agreement, as the volume of product sales grows, we will likely need to continue to increase our workflow capacity and general process improvements, and expand our internal quality assurance program to support TCR screening on a larger scale within expected turnaround times. These process enhancements and increases in scale, expansion of personnel, laboratory space and equipment, among others, may not be successfully implemented, and we may not have adequate laboratory facilities or resources to accommodate all the requirements that we currently anticipate needing to be successful. If we cannot satisfy our obligations, Genentech is entitled to trigger a technology transfer of our TCR screening process or terminate the Gen