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Adaptive Biotechnologies Corporation (ADPT) Q1 2021 Earnings Call Transcript

By Motley Fool Transcribing - May 6, 2021 at 3:01AM

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ADPT earnings call for the period ending March 31, 2021.

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Adaptive Biotechnologies Corporation (ADPT 2.10%)
Q1 2021 Earnings Call
May 05, 2021, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Operator

Good afternoon, and thank you for standing by, and welcome to the Adaptive Biotechnologies first-quarter 2021 conference call. [Operator instructions] I would now like to hand the conference over to your speaker today, thank you, Carrie Mendivil. Please go ahead.

Carrie Mendivil -- Investor Relations

Thank you, Teri, and good afternoon, everyone. I would like to welcome you to Adaptive Biotechnologies first-quarter 2021 earnings conference call. Earlier today, we issued a press release reporting Adaptive financial results for the first quarter of 2021. The press release is available at www.adaptivebiotech.com.

We are conducting a live webcast of this call and will be referencing to a slide presentation that has been posted to the investors section on our corporate website. During the call, management will make projections and other forward-looking statements within the meaning of federal securities laws regarding future events and the future financial performance of the company. These statements reflect management current perspective of the business as of today. Actual results may differ materially from today's forward-looking statements, depending on a number of factors, which are set forth in our public filings with the SEC and listed in this presentation.

In addition, non-GAAP financial measures will be discussed during the call and a reconciliation from non-GAAP to GAAP metrics can be found in our earnings release. Joining the call today are Chad Robins, our CEO and co-founder; Julie Rubinstein, our president; and Chad Cohen, our chief financial officer. In addition, Harlan Robins, Adaptive chief scientific officer and co-founder, will be available for Q&A. With that, I'll turn the call over to Chad Robins.

Chad?

Chad Robins -- Chief Executive Officer and Co-Founder

Thanks, Carrina. Good afternoon, everybody, and thank you for joining us on our first-quarter 2021 earnings call. At Adaptive, what has remained a constant is our commitment to change how diseases are diagnosed and how drugs are discovered using our proprietary immune medicine platform. This is supported by our culture, which is stronger than ever and we can see that in the palpable energy and excitement we feel as we plan to begin the process of reentry and moving into our offices that are new in Seattle, San Francisco, and New York.

I want to thank all our employees for their commitment to the company, to each other, and to the patients we serve. As you can see on Slide 3, our first-quarter results reflect a strong start to the year and are testament to the diversity of our platform and the capability of our team. Revenue in the first quarter was $38.4 million, representing significant growth of 84% versus prior year and 27% versus prior quarter. We saw a substantial progress across our business areas.

Most notably, we achieved an important milestone in our clinical diagnostics franchise with T-Detect COVID which received Emergency Use Authorization in March for the confirmation of recent or prior SARS-COVID-2 infection. It is the first T cell-based test to be validated by the FDA and marks an important strategic product milestone for Adaptive. Importantly, T-Detect COVID proved that T cells can detect disease as well or better than their well-known methodology which would derisk the future success of T-Detect. In addition to the continued work ongoing to make T-Detect Lyme available by year end, we are excited about new data we have obtained that further supports the potential of T-Detect to diagnosis patients with Crohn's disease.

Importantly, these data not only confirm the signal already identified last year, but also show a clear distinction from colitis, a differentiation that is often challenging with current diagnostic tools and that could provide substantial benefit to clinicians and determine the early care path for patients. We believe this is an important milestone in demonstrating the ability of T-Detect to differentially diagnose patients with shared symptomatology. Julie will share some of these data in her remarks and we expect to share more details in a public forum later this year in both Lyme and gastrointestinal disease. Related to MRD Pharma which is accounted for within our research business, I want to highlight the consistent quarter-over-quarter growth generated by our partnerships which further supports the overall value of the clonoSEQ brand to Adaptive, clinicians, and our pharma partners.

This quarter, we booked $7 million in milestones related to FDA regulatory approvals in which our clonoSEQ assay was used as a regulatory endpoint by two of our MRD Pharma partners. These milestones were contemplated as part of our full-year guidance and -- but it's great to see these materializing and accelerating. In addition, we recently added a new collaboration with Pfizer, a long-standing partner, who will now use our MRD assay to measure minimal residual disease at a clinical endpoint in its clinical trials. Regarding our immunoSEQ T-MAP COVID efforts, we are seeing greater uptake from our pharma and academic customers who continue to be interested in understanding T cells and their role in immunities of virus and/or the immune response to vaccines.

The data we have generated for our partners is contributing to key publications. Most notably, AstraZeneca's New England Journal of Medicine publication included our data demonstrating that T cell responses may contribute to protection from COVID-19, even in the presence of lower neutralizing antibodies. This is one of several key use cases for T-MAP COVID that are emerging as the dynamics of the pandemic continues to evolve. In our drug free efforts with Genentech while suspension of the first shared cellular therapy candidate was an unfortunate setback, our collaboration remains strong and we are advancing toward the completion of the next shared candidate data package.

For the private product, we completed an initial proof-of-concept from the first set of 15 cancers and we are working on many more this year. We are optimistic about the progress toward our ultimate vision with Genentech to enable the development of personalized cancer cell therapy which, if successful, may transform cancer treatment. In summary, we had a strong start to the year and are confident in our ability to execute toward our 2021 goals. As you can see, we have multiple revenue sources and open-ended growth opportunities stemming from the same platform.

This is possible because we use the Adaptive immune system as a source code to enable the development of diagnostics and therapeutics for almost any disease. As we continue to achieve important development proof of points that dominates the power of our platform, our ability to become a clinical product development engine accelerates. With that, I'll hand it over to Julie.

Julie Rubinstein -- President

Thanks, Chad, and thanks to all of you for joining us today. I first want to highlight the strategic value of T-Detect COVID in the future of the T-Detect franchise on Slide 4. The T-Detect COVID is the only FDA validated T cell base to confirm recent or prior SARS-CoV-2 infection, with 97% sensitivity at 100% specificity per our CV study. It has also demonstrated 90% sensitivity up to 10 months post infection in a real-world study in 76 convalescent patients.

Since launch, we have had over 3,000 consumers order the test, including members from over 50 concierge medicine practices and approximately 75% of users have opted in for the ongoing research we continue to conduct to better understand immunity to COVID-19. Although the vaccine rollout will likely diminish the market to confirm prior natural infection, we intend to engage person's COVID status in all future T-Detect tests. This may be informative for patients with a broad range of symptoms potentially stemming from a past SARS-CoV-2 infection. Most importantly, we believe the R&D and commercial investments made for T-Detect COVID will accelerate the rate at which we develop and launch future T-Detect applications.

These include, among others, educating the FDA about the power of T cells and our underlying technology, improving our models and techniques, and building a commercial infrastructure to market the test and service customers, all of which we will accomplish in a very short period of time. Now let's talk on Slide 5 about our vision for the evolution of the T-Detect franchise. As we have always said, our key strategic focus for T-Detect is to become one blood test with many results. In order to achieve this vision and help the millions of patients experiencing some sort of diagnostic odyssey, we need to move from disease-specific diagnosis to differential diagnosis among patients with shared symptoms and ultimately to population immune.

While we are advancing toward a differential GI diagnosis in R&D, we are advancing on key next steps for T-Detect in Lyme disease. Specifically, our goals are to complete the enrollment of the ImmuneSENSE Lyme study, publish these data and other clinical validation data from our Johns Hopkins collaboration, and offer T-Detect Lyme as an LDT in our CLIA certified lab by year end. We believe that T-Detect Lyme can potentially double the efficacy of the current serology-based standard of care testing for acute Lyme disease which could benefit the 600,000 people diagnosed with Lyme disease each year. Preliminary data also show that T-Detect Lyme may help identify patients with post-treatment Lyme disease syndrome or PTLDS, estimated to be approximately 200,000 patients per year.

These individuals continue to have lasting symptoms even after being treated with a standard course of antibiotics. Turning to Slide 6. Here you can see some exciting preliminary data that supports expediting our path toward our first differential diagnostic in GI conditions which we believe will create a greater value proposition for patients and Adaptive. First, we completed an additional cohort of patients with ilial Crohn's, a type of Crohn's disease in the small intestine which corroborates our early Crohn signal.

From several hundred patients, our classifier is already over 70% sensitive at 99% specificity for this type of Crohn's disease. Importantly, these data also demonstrate that the T cells that recognize ilial Crohn's are distinct from the T cells that recognize colitis, celiac, COVID, among other diseases. As you can see on the graph on the right, our distinct COVID PCR classifier got more sensitive as the sample size increase. To that end, our next steps for our GI differential diagnostic is to evaluate and improve our signal based on the analysis of additional samples from over 5,000 Crohn's and colitis patients which are in-house and will be completed and presented later this year.

Importantly, as a reminder, our assay can run on genomic DNA stored from retrospective sample tests with clinical metadata which may serve as clinical validation studies for regulatory purposes. Among the thousands of well-characterized samples we are working through in the lab, we will also be able to understand how our signal performs in patients with other types of Crohn's disease that occur in other regions of the digestive track and aim to identify a signal for colitis as well. In parallel, we are also engaging more deeply with GI specialists to understand product market fit and with payers to arrive at a pricing strategy that contemplates a blood test that can reduce the diagnostic odyssey in an increasingly cost-effective way. There are as many as 22 million patients with GI symptoms who may see a primary care physician each year.

A few million of these patients are escalated to a GI specialist if inflammatory bowel disease is suspected which is the population we are initially focused on. These patients usually take around a year to receive a definitive diagnosis which requires a biopsy and the whole diagnostic process can cost anywhere from $10,000 to $20,000. It is important to note that the current stool tests that are often used have challenging compliance rates and low specificity, leading to more biopsies than necessary. Therefore, our hope is to develop a differential diagnostic that can offer patients with similar GI symptoms clarity early on in the testing journey from a blood draw.

Switching gears to clonoSEQ on Slide 7. The total value of the clonoSEQ brand to Adaptive continues to increase as the combination of clinical testing with MRD sequencing revenue and regulatory milestones from our pharmaceutical partners, materials, and scales over time. On the left side, you can see clonoSEQ testing volumes of 4,757 tests in the quarter grew 35% versus prior year and 6% versus the prior quarter. Although the business is still recovering from the impact of COVID at the end of 2020 and had a slow start to the year, March was the highest volume month-to-date.

During the quarter, orders were placed by 825 unique HCPs spanning 231 accounts for approximately 2,900 patients tested. ClonoSEQ is now used in all 31 NCCN cancer centers for one or more disease state and has been used to treat more than 16,700 unique patients. Importantly, with eight months having passed since our FDA clearance in CLL, 17 of the 31 NCCN Centers are now using clonoSEQ for their CLL patients. In addition, we continue to drive expansion of payer coverage policies for CLL in Q1, reaching about 125 million covered lives.

As we wait for the FDA's review of our 510(k) filing for ALL in blood, we are already seeing that blood-based testing accounts for 25% of clonoSEQ usage in ALL patients available to them as part of Adaptive CLIA validated LDT service. Studies of clonoSEQ and blood for other indications, such as multiple myeloma and NHL continue and we will keep you informed on future readouts throughout the year. Of note, we are actively engaged with one of our pharma partners this year to validate clonoSEQ and blood for DLBL, one of the largest NHL subtypes. We continue to expect clonoSEQ volumes to double in 2021 with growth more heavily weighted toward the second half of the year.

However, the resolution of the COVID overhang in the first half is an important factor to achieve our expectations and one that we are monitoring closely. On the right side of the slide, you can see the growing number of publicly disclosed pharma partnerships where clonoSEQ is used as the test of choice in clinical trials that incorporate MRD as a clinical endpoint. From these partnerships, we obtained sequencing revenue as part of our research business, as well as, regulatory milestones which we record as development revenue. As Chad mentioned, we recognized $7 million in MRD milestones from two pharma partners and signed a new translational MRD collaboration with Pfizer, bringing our future available milestones to over $300 million.

Turning to Life Sciences Research on Slide 8. Our research business experienced significant recovery in the quarter, mostly driven by sequencing from pharma partners using both our immunoSEQ and MRD assays. Additionally, new pharma bookings continue to grow at a significant pace. Academic research, although a small contributor to the overall business, experienced some lingering impact from the pandemic in the first month of the quarter as academic centers were still not fully operational for non-COVID research -- related research projects.

However, recent order volumes are showing encouraging recovery at higher than pre-pandemic levels. Related to immunoSEQ RUO kit, the team has been focused on getting more labs and our CRO partners, Q2 and LabCorp, trained and operationally set up to start using the kit. We expect to bring on additional core labs and CROs throughout the year. Regarding immunoSEQ T-MAP COVID, we are working with several top-tier vaccine manufacturers, including AstraZeneca, Oxford, Bill and Melinda Gates Foundation, and Johnson & Johnson to assess the T cell response to various COVID vaccines in their study.

Our recent data on AstraZeneca samples which showed the vaccine caused expansion of CD4 and CD8 T cells to regions of the spike protein, including those not impacted by variant was published in the New England Journal of Medicine last month. We expect more data to be published soon, demonstrating the utility of T cells to study vaccine efficacy in the wake of variant. With the new variants on the rise, we are seeing an uptake by pharma and academic partners who are using immunoSEQ T-MAP COVID to determine efficacy of vaccines to the new variant, select new targets, and evaluate next-generation vaccines, generate data to support the clinical understanding of response to vaccination in immunocompromised patients and understand the strength and duration of T cell versus antibody response post vaccination. We will provide updates on our findings as we progress.

Moving now to drug discovery on Slide 9. Starting with our collaboration with Genentech on the shared program, as disclosed earlier in the quarter Genentech suspended efforts on the first shared product. As previously mentioned, it is important to note the reason for this decision was specific to the target and not the PCR candidate. Recent data within the public domain showed that the expression levels of the selected target was high in a healthy cell type that wasn't previously assessed within the preliminary safety analysis.

Out of an abundance of caution, Genentech decided to sit this program and focus on the next set of TCR candidates in our true TCR library against different selected targets. Our next TCR candidate is in advanced stages and we expect to complete and deliver this TCR data package to Genentech this year. Parallel, we continue to advance other candidates against a variety of targets within our TCR library that have been prioritized with Genentech. While we use blood from healthy donors for our true TCR approach with the shared product, we use blood from cancer patients for our private product process.

On the right side, you can see we are also making good progress on our private products. As Chad mentioned, we completed an initial proof-of-concept in which we identified tumor-specific TCRs new blood from 15 cancer patients and we're currently reviewing these data with the Genentech team. Initial results are encouraging and during the remainder of the year, we aim to process the blood of at least 60 cancer patients as we build our prototypes. The totality of our patient-specific data will allow us to establish our personalized approach with Genentech and ultimately define our future private product.

In April, we also officially opened our New South San Francisco lab space, adding more than 10,000 square feet of dedicated space future, end-to-end personalized product process. Importantly, this new space has the capacity to accommodate future first-in-human studies. We also continue to build out the product and product development teams and have started hiring dedicated FTEs for this purpose. Our collaboration with Genentech remains strong and continues full speed ahead, both with our shared and private product program.

Regarding our true AV antibody discovery approach, as disclosed last quarter, we have been able to identify highly potent RBD antibodies that are robust against all known variants and predicted future variants of SARS-CoV-2. In addition, we have promising non-RBD S1 and S2 neutralizing antibodies that could also be incorporated into a cocktail strategy that targets different mechanisms of action to inhibit the virus. It is recognized that COVID-19 is now endemic in the population and effective therapies are still needed. As such, we continue our discussions with potential partners who similarly believe that our antibody candidates may provide a differentiated solution in light of new variants.

In conjunction, we are exploring additional applications of our true AV discover in other diseases to maximize this valuable platform extension. I'll now pass it over to Chad Cohen, who will provide you with updates.

Chad Cohen -- Chief Financial Officer

Thanks, Julie. Turning to our financial results on Slide 10. Total revenue in the first quarter was $38.4 million, representing an 84% increase from $20.9 million in the same period last year. Our revenue mix for the first quarter consisted of 39% of our revenues coming from our sequencing category and 61% coming from our development category.

Sequencing revenue in the first quarter was $15.2 million and increased 60% from the same period in 2020. The growth was primarily driven by a $5.2 million increase in revenue generated from our biopharmaceutical customers. Research sequencing volume increased to 7,026 sequences, up 17% from 6,030 sequences delivered in the first quarter of 2020. We are pleased with the strong start to the year.

But as a reminder, we do see variability quarter over quarter and historical trends show most of our pharma revenues come in the second half of the year. Clinical sequencing volume, excluding our T-Detect COVID volume, increased 35% to 4,757 clinical tests delivered in the first quarter of 2021, up from 3,518 clinical tests delivered during the same period in '20. Although we continue to make progress, the COVID headwinds from 2020 haven't completely abated and we do expect some ongoing pressure on clinical volumes at least through the first half of the year. Development revenue grew to $23.3 million in the first quarter, up 103% from the same period last year.

As you will know, the primary component of our development revenue today relates to the amortization of our Genentech upfront. However, the largest driver of our development revenue growth this quarter was due to the recognition of $7 million in milestones from two key MRD pharma partners which came earlier than expected in the year. As Julie mentioned, we have over $300 million in MRD pharma milestones available to Adaptive as our biopharma partners utilize our MRD assay in the development and regulatory approval of their relevant drug programs. Shifting now from our revenue to our operating costs.

Total operating expenses for the first quarter of 2021 were $79.7 million, representing a 44% increase from $55.5 million in the same quarter last year. Working down our operating expenses, cost of revenue was $10 million during the first-quarter '21, compared to $5.3 million for the first quarter last year, representing an approximate 87% increase. Higher cost of revenue was primarily driven by increases in personnel and related labor and overhead costs, as well as, an increase in allocated facility expenses due to our new molecular lab and headquarters which is currently under construction and quickly approaching completion. An increase in revenue sample volume, mix shift to our clonoSEQ assays also led to a higher materials costs which were partially offset by usage of our production lab to process a greater percentage of R&D samples.

Research and development expenses for the first quarter of 2021 were $33.8 million, compared to $23.9 million in the first quarter of 2020, representing a 41% increase. The growth was largely related to an increase in personnel costs, with our software engineering, innovation, and South San Francisco cellular lab teams driving the period-over-period increase. Sales and marketing expenses for the first quarter of 2021 were $20.6 million, compared to $14 million in the same quarter last year, representing an increase of 47%. Increased personnel costs contributed to the majority of this growth, particularly, the expansion of our commercial team supporting clonoSEQ and T-Detect.

We also saw larger investments in our T-Detect marketing efforts and shared corporate parking services. These increases were partially offset by savings in travel and customer event-related expenses. General and administrative expenses for the first quarter of 2021 were $14.9 million, compared to $11.8 million in the first quarter of 2020, representing an increase of 26%. The increase was primarily driven by growth in headcount and related personnel costs.

Net loss for the first quarter of 2021 was $40.6 million, compared to first-quarter 2020 net loss of $31.4 million. Adjusted EBITDA for the first quarter of 2021 was a loss of $30.1 million, compared to a loss of $28 million in the same period of the prior year. We ended the quarter with $745 million in cash, cash equivalents, and marketable securities and we had no debt. With respect to our full-year guidance, we are reiterating our revenue range of $145 million to $155 million which already contemplated the delivery of the MRD milestone we recognized this quarter and exclude the IND milestone that we no longer expect to recognize as a result of the suspension of the first shared product.

We are really pleased with our first-quarter results, and although it is early in the year, we are confident in our ability to achieve our full-year commercial and development goals. We look forward to providing you with further updates next quarter. I'll turn the call back to Chad Robins.

Chad Robins -- Chief Executive Officer and Co-Founder

Thanks, Chad. As we outlined during the call and listed on Slide 11, we've achieved some important milestones already in 2021 and have many more upcoming across all business areas during the rest of the year. We feel good about the momentum across all areas as we continue to deliver on our promise and demonstrate the capabilities of our platform. With that, I'd like to turn it back to the operator and open up for questions.

Questions & Answers:


Operator

[Operator instructions] Your first question comes from the line of Brian Weinstein from William Blair. Your line is now open.

Brian Weinstein -- William Blair -- Analyst

Hey, guys. Thanks for taking the questions. Good afternoon.

Chad Robins -- Chief Executive Officer and Co-Founder

Good afternoon, Brian.

Brian Weinstein -- William Blair -- Analyst

Hey, you know, really interesting stuff on the Crohn's disease and the ability to distinguish between patients with colitis. Can you talk about -- I'm very excited about this. Can you talk and rightfully so, can you talk about a little bit more about what this potentially means for patients and the enthusiasm that you guys have for this potential product?

Chad Robins -- Chief Executive Officer and Co-Founder

Yeah, sure. I'll start and then I'll hand it over to Harlan if he wants to dive deeper, but the upshot in this is, yeah, we're super excited about the Crohn's data. This data proves that T cells are uber specific, so we can eliminate false positives. For each disease, we're going to get better and better on sensitivity, but this data, it's really the first data that provides the foundation for our thesis of going from looking at single diseases at a time to moving upstream in the clinical paradigm, so that doctors are able to differentially diagnose between diseases.

And remember, that whole kind if we -- as we outlined the whole vision for T-Detect going one disease at a time to differential diseases to ultimately get into the concept of kind of one sample with many results from a single blood sample, we're working on our way. So we're really excited about what we're seeing and it really provides a foundation.

Brian Weinstein -- William Blair -- Analyst

Great. Then following up with the question on clonoSEQ. Julie, you guys have talked a lot about investments that you guys have made in sales and marketing. You have a LabCorp relationship now that is supposed to help you out.

Can you just talk about how those investments are going in terms of the return that you're seeing on those? Are you seeing the --

Julie Rubinstein -- President

No, did you guys get Brian?

Chad Robins -- Chief Executive Officer and Co-Founder

Brian, you got cut off there. But I -- was that the end of the question? What were the investments we're seeing in clonoSEQ? Julie, do you want to take that?

Julie Rubinstein -- President

Sure. Is Brian still there?

Chad Robins -- Chief Executive Officer and Co-Founder

I'm not sure, but go ahead and answer the question.

Julie Rubinstein -- President

OK. Sure, absolutely. Yes, we've been making carefully gated investments in clonoSEQ at an appropriate time to drive a doubling of volume as we've set out to achieve this year and we believe we're well on our way. The team is executing well.

We're starting to see an accelerated ramp to get us there. So for example, as I mentioned, we've had really nice growth in multiple myeloma and even despite launching CLL in the middle of the pandemic, we're seeing a nice pickup in the CLL as well. We have about half of the NCCN Centers using it now, 30% of orders are already coming from the community which is a new set of institutions that we're targeting about half. We've pretty much doubled the number of accounts ordering CLL in the first quarter of the year.

So we believe we're right on track with our plan which was always back-half weighted in 2021. We have also a lot of initiatives in place, like peer-to-peer education, more marketing toward patients. We've just about completed training the new cohort, the new class of reps and so they'll be entering into the field. In fact, the team is together all week this week in a national sales meeting and we just really believe all the steps we're putting in place are setting us up for success in 2021.

Operator

Your next question comes from the line of Derik De Bruin from Bank of America. Your line is now open.

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Hi, good afternoon. This is Ivy on for Derik today. Thank you for taking my question. So first on --

Chad Robins -- Chief Executive Officer and Co-Founder

Hi, Ivy.

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Hi, so first on the clonoSEQ, just would highly appreciate if you could talk more about what needs to happen to reach the inflection point and get accelerate the growth for the volume. And then also if you could talk about the progress on the other indications, such as multiple myeloma and NHL.

Chad Robins -- Chief Executive Officer and Co-Founder

So Julie, do you want to speak --

Julie Rubinstein -- President

Sure. OK.

Chad Robins -- Chief Executive Officer and Co-Founder

Go ahead, Julie.

Julie Rubinstein -- President

Sure. Absolutely. Hi, Ivy. So, yeah, I mean, we're really very, very focused heads down on growth now.

So we've had great success opening up. We're activating accounts. All or a majority of our target accounts in the academic centers, now we're moving into the community and then we're really focused on deepening penetration in those existing accounts. As we've discussed, we deployed a new DHS sales team for their hematology specialists to drive adoption in the accounts.

We're focused on speeding up time to ordering post activation, doing that by clarifying use cases, doing more peer-to-peer education, as I mentioned. We're also focusing our users on ID'ing as many patients as possible at diagnosis because that makes it easier to incorporate MRD more routinely in care. And as we mentioned also, we're focused on really moving the CLL community toward accepting MRD as part of the routine way in which they manage their patients. So all of those things are just examples of how we're focused on growing in each of the disease states.

As I mentioned, multiple myeloma, we've been really educating that community about clonoSEQ for quite some time now and that growth continues at a really nice steady pace. CLL, we expect it's going to continue to pick up, particularly, as we move on from COVID and these patients can get back into treatment more regularly. We're hopeful also that our reps will be able to get back in person. You know that -- you know as I'm sure you're hearing from everyone, is really just starting to happen now and that's particularly important as we're moving into a new community setting.

And so that's kind of how we think about what really needs to happen to continue on an accelerated ramp throughout the year. I think you asked about indications. So you know that we filed ALL and blood and the FDA has kind of put many of those reviews on hold right now. But as I mentioned in my earlier remarks, we can offer ALL and blood in our CLIA Lab and that's, in fact, happening quite regularly now.

Multiple myeloma, we're still waiting on the data to read out from the trial and we are increasing our focus in NHL now validating in blood and also waiting for a variety of clinical validation studies to read out that our medical team is overseeing, as well as, our pharma team in partnership with a couple of key partners who are also quite interested in advancing clonoSEQ and MRD in the NHL setting.

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Great. That's very helpful, Julie. I have two other quick questions on the financials. So first one, with all the moving parts, I apologize if I missed it in the prepared remarks.

I want to see if you could provide an update for the mix between sequencing revenue and development revenue in terms of the total revenue percentage. I think last quarter, you talked about maybe sequencing accounting for 50% to 55% of the total. So just curious given all the changes, where does that move to? And I'll put my second one upfront as well. So last quarter, you talked about contemplating the increasing revenue from amortization from upfront payment with Genentech, so wondering if there's an update there.

Thank you so much.

Chad Cohen -- Chief Financial Officer

Sure. I'll take those. So very quickly, yes, we still believe we're in the range for the full year of sequencing revenues to come in at between 50% to 55%. You saw a really strong revenue activities from our research component of the business.

This quarter, there were some planned large projects that really came in a little sooner than expected. So we're effectively just reiterating that we still believe in that 50% to 55% as a percentage of the total from a sequencing perspective. And then from a development perspective, sort of your second question, yes, still in the same sort of ballpark that we articulated on the last quarter. We had mentioned that modeling our development revenues for the full year should really start with looking at the third-quarter 2020 revenues and not our fourth-quarter ones.

We still believe that. We came in a little heavier than anticipated just given the robustness of the investments that we made in the quarter. But overall, we believe our development revenues are in line with what we previously articulated and we should see potentially some modest growth, but it won't be like a ton coming off of this quarter's numbers on a quarter-over-quarter basis. So still in that sort of range that we provided last quarter in terms of the total amount of development revenues from Genentech.

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Great. Thank you very much Chad.

Chad Cohen -- Chief Financial Officer

Yeah.

Operator

Your next question comes from the line of Tycho Peterson from J.P. Morgan. Your line is now open.

Tycho Peterson -- J.P. Morgan -- Analyst

Hey, good afternoon. I'll start with immunoSEQ T-MAP COVID. Just curious now that you've headed out a couple of quarters, how big that business is? And how do you think about the durability there as we think about the variants, next-gen vaccines and the like? How do you think about the durability of the trends you're seeing there?

Harlan Robins -- Chief Scientific Officer and Co-Founder

Sure.

Julie Rubinstein -- President

Sure.

Harlan Robins -- Chief Scientific Officer and Co-Founder

Maybe I'll start with that and then, Julie, feel free to kind of jump in. But one is for T-MAP right now, that business is actually kind of just starting to pick up. In light of understanding the T cell disease response to variants and the vaccines, so we are seeing that business. In terms of kind of durability, it depends on kind of your view of COVID and being endemic in the population, but T-MAP as a franchise, as part of the research business, we see having quite a bit of durability.

I mean, based on the fact that we can leverage kind of the map, the antigen map that we're building with Microsoft to be able to inform kind of other parts of the business. So one area that we're particularly interested in and we think there's future opportunity in, is in the autoimmune space. And what's exciting about that is, not just the ability on the research business, but also the ability for that data to potentially inform kind of therapeutic targets. So you're starting to see that crossover.

So we're -- in terms of kind of durability and kind of the future of that business, even if kind of the COVID opportunity winds up waning, we think there's opportunity in other disease states and that's kind of one of the kind of major benefits of the antigen map.

Tycho Peterson -- J.P. Morgan -- Analyst

OK. That's helpful. The Pfizer partnership, I'm curious how meaningful that is. You mentioned, I think it's across a couple of clinical programs.

Julie, can you maybe comment on that one?

Julie Rubinstein -- President

Sure. We don't disclose the financials as you know. It's much like many of the others that we've signed, where there's -- actually, in this case, there's some annual payments, sequencing revenue, as well as, milestones. It is a multiple myeloma translational partnership and so there'll be multiple compounds involved in the development program at Pfizer targeting multiple myeloma.

Tycho Peterson -- J.P. Morgan -- Analyst

OK. And then on Genentech, now that you've delivered the proof-of-concept for the 15 cancer patients for the private product, can you just talk a little bit about how you think about their evaluation process? Are there next steps on the private product that we should be paying attention to?

Chad Robins -- Chief Executive Officer and Co-Founder

Harlan, can you take that one?

Harlan Robins -- Chief Scientific Officer and Co-Founder

Sure. So we're working both together and in parallel on this since the -- just as a reminder, the objective on the private product is to take the T cells that are attacking the cancer in a given patient and take the T cell receptors out of those T cells, identify them, and then synthesize them and put them back into a set of that patient's own T cells and/or an off-the-shelf product at some future date with the idea being that we'd have a safe-on target and potent therapy. So the two parts are, on our side is really identifying very rapidly the T cell receptors that are cancer specific, and that's really the proof of principle that we're going through. And we now have to do all the development work, exactly how much blood, how is it stored, what materials we're going to start with to optimize the process and then all the other development processes related to the reagent use, the actual workflow, etc.

And at the same time, Genentech is working on the actual cell therapy part, the cell manufacturing part, etc., and together, we're discussing the science on a regular basis. So it's proceeding nicely, but we have a -- it's a hard thing to do and we have a ways to go, but the trains on the tracks and we're feeling good about the direction we're going.

Tycho Peterson -- J.P. Morgan -- Analyst

OK. That's helpful. Thank you.

Harlan Robins -- Chief Scientific Officer and Co-Founder

Thanks.

Chad Robins -- Chief Executive Officer and Co-Founder

Yeah. Thanks, Tycho.

Operator

Your next question comes from the line of Doug Schenkel from Cowen. Your line is now open.

Doug Schenkel -- Cowen and Company -- Analyst

Hey, everybody, thanks for taking my question and apologize in advance. I know everybody on the line is struggling a little bit, so I apologize if any of these have been answered. My first is just on the Genentech shared product market -- [Technical difficulty]

Chad Robins -- Chief Executive Officer and Co-Founder

Hey, Doug, we can't -- we can't hear you. You're breaking up. Could you try that again?

Doug Schenkel -- Cowen and Company -- Analyst

[Technical difficulty]

Chad Robins -- Chief Executive Officer and Co-Founder

No, no. Sorry. Do you think it's possible to dial back in on another line and will jump --

Doug Schenkel -- Cowen and Company -- Analyst

Yeah, I will do that. Sorry about that.

Chad Robins -- Chief Executive Officer and Co-Founder

No problem.

Operator

Your next question comes to the line of Tejas Savant from Morgan Stanley. Your line is now open.

Yuko Oku -- Morgan Stanley -- Analyst

Hi, this is Yuko on the call for Tejas. Thanks for taking our questions. You mentioned you would be sharing data for Crohn's and celiac later this year. What would you have us focus on with that presentation and what additional information should we be looking for?

Chad Robins -- Chief Executive Officer and Co-Founder

Yeah. So far, we've done a couple of different things. We had one study which we -- which was a smaller study, a few hundred samples where we first found our Crohn's signal and we talked about that a little bit last year. But what we're waiting for, we now have 5,000 samples in-house that includes Crohn's and colitis.

There's 1,600 colitis samples. So we're going to finished sequencing which we're almost done, that data set, and then we're going to analyze that data set and then put it together. So we'll present the data once that's -- the larger study is fully analyzed and we have the -- really making sure we've dot our Is and cross our Ts on all the science.

Yuko Oku -- Morgan Stanley -- Analyst

Got it. Thank you. And then I've a follow-up. Given the good traction you're seeing for clonoSEQ, CLL, and blood, what are you seeing in terms of uptake for clonal testing and blood outside of CLL? I think you might have mentioned ALL, could you remind me if you have?

Julie Rubinstein -- President

Sure. Sorry, so --

Chad Robins -- Chief Executive Officer and Co-Founder

Julie, could you take that one?

Julie Rubinstein -- President

So, yeah, I think -- yeah, we have about 25% of our usage in ALL in blood which is in our CLIA Lab since it's not an FDA-cleared label expansion at that time.

Yuko Oku -- Morgan Stanley -- Analyst

OK. Great. And then how about in MM as well?

Julie Rubinstein -- President

So that's much smaller at this stage, multiple myeloma is sort of different biology. It's a disease of the bone marrow and the data is still emerging and the trial is still reading out at the moment. And so that one is not quite as advanced yet in blood as some of the other indications.

Yuko Oku -- Morgan Stanley -- Analyst

Great. Thank you so much.

Julie Rubinstein -- President

Sure.

Operator

Your next question comes from the line of Doug Schenkel from Cowen. Your line is now open.

Doug Schenkel -- Cowen and Company -- Analyst

OK. We'll try this again. Can you guys -- can you all hear me a little bit better now?

Chad Cohen -- Chief Financial Officer

You sound great, Doug.

Chad Robins -- Chief Executive Officer and Co-Founder

That's better.

Doug Schenkel -- Cowen and Company -- Analyst

OK. The landline was messed up and now I'm on the cell. But anyway, sorry about that. So again, apologies in advance if some of this was covered earlier.

On the Genentech shared products, I'm just wondering if you're starting to get any positive signals that fortify or build conviction that this is, in fact, a bonafide neoantigen, whether it's mutated or not mutated? And if not, at what point you think you'll have such a signal? And then I'm just wondering and maybe this has been going on all along, but is there -- has there been some consideration of maybe accelerating the pace of looking at targets like this in parallel? Again, I'd assume, to some extent, that's already happening, but just given -- no matter how great you guys are, given limited biological and safety information around any given target, I'm just wondering if there are ways being contemplated that might increase the probability of success just in increasing the numbers and using that as a means to more quickly reach an IND submission.

Chad Robins -- Chief Executive Officer and Co-Founder

Sure. So starting with your first question. So Adaptive upfront confirms and this is to be honest, one of our specialties. We confirm that the antigens that we're going after as targets are process and presented and immunogenic.

So we know even before we do the bulk of our work on characterization that these are really good antigens to be going after and we have done that for many hundreds of targets on the discovery side. Then the next step is sort of then searching for the absolute best key receptors that hit those targets which we have been done also with, I'd say, maybe not quite as many, but still well over 100 different targets. And then the next step is working with Genentech, where we have to pick out the subset that has the optimal clinical use, meaning that it is OK in all their clinical parameters. They can recruit the patients, these mutations and/or tumor sites, and antigen occurring.

They have deemed it -- we, together, I guess, have deemed it safe and all the other parameters that need to be considered. And so, yes, I hear your point. On the second question, and yes, we're parallel tracking more than one on the latter steps for the reasons you said, there's a lot of work that goes into each one. On the Adaptive side, we're able to do many on the discovery side in parallel, but there's a whole clinical program that needs to be put around each one.

So the farther that we get down the line, the more work and the tighter the funnel, but we are in parallel tracking more than one.

Doug Schenkel -- Cowen and Company -- Analyst

OK. Thank you for that. And then on personalized T cell therapeutics on that program, again, you may have covered this, especially given I heard an earlier question that I think gone at this. But I believe you were targeting to share proof-of-concept data and launch your prototype lab in the first quarter or close to that.

Did that happen?

Chad Robins -- Chief Executive Officer and Co-Founder

Yeah. We've -- I mean, we shared that with Genentech. I don't know that we're not going to share it publicly. But yes, we've completed our first pilot experiment and we're -- have shared data with Genentech and we're now having, in fact, we've been since then have done multiple other samples.

We had targeted to do 15 patients, but we're now well beyond that and we're progressing forward and we have sort of regular discussions with the scientific team at Genentech, as well as, the clinical.

Harlan Robins -- Chief Scientific Officer and Co-Founder

And the prototype lab.

Chad Robins -- Chief Executive Officer and Co-Founder

Oh, and yeah, sorry and the prototype lab is now built out. And we've completed construction and we're -- now is the real development effort on locking down the workflow through that lab, etc., and we've hired some of the team. We have to hire some of the -- some more of the team out and -- but all the equipment is in. It's -- the lab is ours and it's fully operational.

Doug Schenkel -- Cowen and Company -- Analyst

And it sounds like, with that in mind, you're in good position to hit your target of 60 patients by end of year.

Chad Robins -- Chief Executive Officer and Co-Founder

Oh, yeah, yeah.

Doug Schenkel -- Cowen and Company -- Analyst

OK. OK. All right. That's great.

Thank you again and sorry for the technical challenge.

Chad Robins -- Chief Executive Officer and Co-Founder

Oh, no problem. Thanks, Doug.

Harlan Robins -- Chief Scientific Officer and Co-Founder

Thanks, Doug.

Operator

Your next question comes from the line of Mark Massaro from BTIG. Your line is now open.

Mark Massaro -- BTIG -- Analyst

Hey, guys. Thank you for the questions and congrats on a strong quarter. I guess, my first one is similar to Doug's question and that is, you know, there are some investors that seem to have concerns about your ability to advance another shared target. And so, I guess, for those that are skeptical, can you just maybe address -- I know Julie mentioned that the first target was -- the first candidate was specific to the target.

But wondering if you can provide a little more detail around maybe picking from a neoantigen as opposed to a tumor-associated antigen and just give us a sense for what steps you guys can do to mitigate any potential risk items in the future.

Chad Robins -- Chief Executive Officer and Co-Founder

Sure. So, you know, the with -- no matter what target there is, there's a whole set of safety procedures that we need to ensure and so the risk profile is different if it's tumor-associated antigen versus a neoantigen because the neoantigen is not found in the normal human genome, but there are also likely some pretty safe tumor associated antigens. But the primary consideration, we're -- I think we're in a better spot in a lot of ways which is that the -- there's been a lot more work done on what's normally expressed in many, many different tissues now. Just sort of the public data has increased significantly, so we're able to do a lot more upfronting of safety considerations and we're feeling quite confident that our next target is -- has very, very low safety risk, relatively speaking.

Mark Massaro -- BTIG -- Analyst

OK. And my second question, congrats on realizing the $7 million MRD milestone payment in the quarter. Obviously, I was not expecting that. So MRD clearly is a promising biomarker and it can be used as a surrogate endpoint and can help with MRD enriched studies.

Can you just give us a sense -- I don't know if you can give us any detail as far as what -- how specifically clonoSEQ was used? Was it in an adjuvant or metastatic setting? And can you also speak to the pipeline or the size of additional studies that you could realize or pull forward milestones in the future.

Chad Robins -- Chief Executive Officer and Co-Founder

Sure. Julie, do you want -- do you want to take that?

Julie Rubinstein -- President

Sure. So we -- I can just tell you that the -- what's public, that the -- and then, I guess, I would suggest maybe reading the labels just so we don't say anything we're not supposed to say, but one of them was with Sanofi for Sarclisa in multiple myeloma and the second one is Abecma, BMS' Abecma for BCMA CAR-T in multiple myeloma and there are secondary endpoints.

Mark Massaro -- BTIG -- Analyst

Great. And then just the pipeline -- yeah.

Harlan Robins -- Chief Scientific Officer and Co-Founder

Sure. So we -- what we've disclosed is there's over $300 million in the pipeline. And obviously, there's kind of the puts and takes as we accomplish those milestones and kind of burn it down. Those are kind of off to that number, but at the same time, we continue to kind of replenish that number with additional studies that we sign.

And obviously, the hope is that the kind of replenishment outstrips the amount we're burning down, at least, over time, but those milestones are available to us and use, frankly, in a variety of different settings. One of the big kind of catalyst would be if the FDA-approved multiple myeloma as an endpoint in trials that would allow us to kind of be able to have access to a significant amount of those milestones over time.

Chad Cohen -- Chief Financial Officer

You know, the only thing I would add to that is that those milestones cut across about half a dozen or so different partners with about a dozen or so projects across those partners.

Mark Massaro -- BTIG -- Analyst

Thanks so much.

Harlan Robins -- Chief Scientific Officer and Co-Founder

You're welcome.

Chad Cohen -- Chief Financial Officer

Sure.

Operator

Your next question comes from the line of David Westenberg from Guggenheim Securities. Your line is now open.

David Westenberg -- Guggenheim Securities -- Analyst

Thank you for taking the questions. I would stick with the MRD area. So has there been any new MRD interest based on all the studies that are going out in solid tumor? I realize that's a completely different market for you, but one of the interesting things that we've been finding out from all our oncology surveys is that there's a lot of oncologists is that there's a lot or hem-oncs that deal with solid tumors sometimes and vice versa. So just curious if there's been any kind of additional interest just with the amount of data that's coming out all over the space.

Harlan Robins -- Chief Scientific Officer and Co-Founder

Yeah. I'll take that, Dave. And it's just maybe it's a tip of the iceberg of this and I do think that we will kind of benefit from this concept of monitoring residual disease kind of, in general, are using kind of genomics to be able to incorporate into kind of patient care continuum. In particular, as you mentioned, this would be in the community setting, where an oncologist is treating all comers.

So once they get comfortable with the concept of monitoring in general, whether they're monitoring in solid tumors and using kind of the variety, I won't mention anyone by name. But a variety of different test available and solid tumor monitoring, that kind of picks their interest and to be able to also monitor in liquid tumors. So no and especially in the community, the hem-oncs don't want to be kind of on the cutting edge. On the flip side, they also don't want to be kind of left behind.

So I think you're just -- you're hitting the point where kind of we're just starting to see it move kind of from the kind of the true kind of bleeding edge thought leaders into hopefully kind of crossing over to mainstream and I do think we'll benefit from kind of MRD as a broad-based category. But I would say it's very early and we're just starting to see that because, as Julie mentioned, we and others of our peers haven't been able to go in yet and do that education. When that happens as a collective group, I think that all boats will kind of rise on the tide. With the difference being, we're kind of the one company that is really focused on kind of the hemologic malignancies and MRD in that space, where I think there's many different technologies that are looking at MRD and solid tumor monitoring.

David Westenberg -- Guggenheim Securities -- Analyst

Yeah. Actually, let's stick on that concept because I think you are very differentiated in that you have a specialized technology where you're actually looking for the B cell in B cell-mediated cancer, and I think you're in the market all by itself. Now I mean, the reality is that you are dealing with hem-oncs on a very regular basis. You know, and if you indeed would maybe win that call point, do you think maybe you would add approaches outside of clonoSEQ just to complement the fact that you already have that sales force and maybe such a good reputation with the group? And I'll stop there after that.

Harlan Robins -- Chief Scientific Officer and Co-Founder

It's a good question, David, and we continue to look for ways to add value to the portfolio in the bag. So I would just say, we've got kind of a search and evaluation team out there that continues to look at opportunities to add incremental value to our offerings and I'd probably leave it at that for now.

David Westenberg -- Guggenheim Securities -- Analyst

Thank you so much.

Harlan Robins -- Chief Scientific Officer and Co-Founder

You bet.

Operator

Our last question comes from the line of Salveen Richter from Goldman Sachs. Your line is now open.

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Great. Good afternoon and thanks for taking our questions. This is Elizabeth on for Salveen. Just a quick question from us on TRUAB.

So you mentioned you're exploring that in other diseases. Maybe if you could just expand on this and then both the near-term and the long-term strategy for the program.

Chad Robins -- Chief Executive Officer and Co-Founder

Harlan, do you want to take that?

Harlan Robins -- Chief Scientific Officer and Co-Founder

Yeah. So this is a great question and this is very much in the developmental stage, but I've really charged our research team with asking the question, hey, starting with the principle that our real advantage is that we have a really deep scale and meaning we can sequence. Because of our sequencing capability, we're able to go through many, many, many different antibodies in a given sample. So the question is where does that particular advantage allow us to find antibodies that which would be differentiated from what other groups can do? And so I don't think we're at the point where I feel comfortable with giving the kind of the exact direction we're going yet, but I think the team has come up with some quite good directions and we're going to resource it.

We are resourcing it and feel like this is something that we're going to have to, I think, in general, get back to on kind of publicly, but we're feeling good about the program in general.

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Great. Thank you.

Operator

[Operator signoff]

Duration: 62 minutes

Call participants:

Carrie Mendivil -- Investor Relations

Chad Robins -- Chief Executive Officer and Co-Founder

Julie Rubinstein -- President

Chad Cohen -- Chief Financial Officer

Brian Weinstein -- William Blair -- Analyst

Unknown speaker -- Bank of America Merrill Lynch -- Analyst

Tycho Peterson -- J.P. Morgan -- Analyst

Harlan Robins -- Chief Scientific Officer and Co-Founder

Doug Schenkel -- Cowen and Company -- Analyst

Yuko Oku -- Morgan Stanley -- Analyst

Mark Massaro -- BTIG -- Analyst

David Westenberg -- Guggenheim Securities -- Analyst

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