Adaptive Biotechnologies (ADPT), a Seattle based biotech company, seems to be in prime time with the booming trades under the Nasdaq. After completing its $300 million IPO, the company went public on Thursday.
ADPT stock jumped 95% above its pre IPO price of $20 per share to $39. This made the company worth $4 billion. Moreover, even the initial price had been higher than the expected $15-$17 per share.
With IPO Raised $300 Million Capital, Stocks Upped By 95% On First Trade Day
The brothers, Harlan Robins and Chad Robins who co-founded the company back in 2009. They made more history for the company by ringing the opening bell on the Nasdaq Thursday morning. This biotech IPO was the second biggest biotech IPO of 2019 being a step behind BridgeBio Pharma which had managed to raise $350 million on the same day.
Adaptive though managed to stand out with its ready-for-market products and innovative technologies. In spite of such huge successes at IPO, the overall market was still short of 28% to match up to 2018’s IPO.
The company started by the way of Harlan Robins developing the technology and Chad Robins making a business from it. The company has come a long way forming significant partnerships with Genentech and Microsoft. In addition, it received $400 million from private investments over the last decade.
The technology helps diagnose diseases and to develop new drugs. It utilizes data based on the genetic information of the human immune system, under its ImmunoSeq platform. What’s more, is the fact that the technology has been continuously evolved keeping up with the plethora of diseases.
Deals With Microsoft and Genentech
The company in partnership with Microsoft plans to use AI to detect various diseases not taking different blood tests but making use of a single one. The announcement of the AI engine being active came forward. It’s used to help diagnose diseases like type 1 diabetes, celiac disease, lyme disease and cancers like ovarian cancer and pancreatic cancer.
Co-founder Chad Robins claimed that the product would be out in the market in 2021. With Genentech, Adaptive signed a collaborative licensing agreement worth $300 million in order to develop personalized therapy for cancer. If it meets certain checkpoints, Adaptive Biotechnologies could be richer by almost $1.8 billion. It will receive it as a royalty payment.
The company had seen a $46.4 million of net loss against $55.6 million of revenues last year. The cash and cash equivalents stood at $440 million in the company’s balance sheet as on March 31, 2019. Before the IPO, Chad owned 6.3% of the shares of the company, while Viking Global Entities held the majority (36%). Following this Matrix Capital Management owned 16.4%. With an estimated market share worth of $48.7 billion, Adaptive became the first company in its headquartered area to go public after Avalara’s IPO in June, 2018.