IPO Report: Adaptimmune Therapeutics PLC (ADAP)

Francis Gaskins  |

Adaptimmune Therapeutics PLC (ADAP) is a clinical-stage biopharmaceutical company focused on novel cancer immunotherapy products based on its T-cell receptor platform. It is based in Abingdon, United Kingdom.

Eleven other companies are scheduled to IPO for the week of May 4. The full IPO calendar is available at IPO Premium.

SEC Documents

Manager, Joint-managers: BofA Merrill Lynch, Cowen and Company, Leerink Partners

Co-managers: Guggenheim Securities

End of lockup (180 days): Tuesday, November 3, 2015

End of 25-day quiet period: Monday, June 1, 2015

ADAP scheduled a $150 million IPO with a market capitalization of $1.1 billion at a price range midpoint of $16 for Wednesday, May 6, 2015 on Nasdaq.

Adaptimmune Therapeutics IPO Summary

ADAP is a clinical-stage biopharmaceutical company focused on novel cancer immunotherapy products based on its T-cell receptor platform.

ADAP has developed a comprehensive proprietary platform that enables it to identify cancer targets in the form of peptides, which are short sequences of amino acids, find and genetically engineer T-cell receptors, or TCRs, and produce TCR therapeutic candidates for administration to patients.

Adaptimmune Therapeutics IPO Valuation


Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

Adaptimmune Therapeutics PLC (ADAP)








Adaptimmune Therapeutics IPO Conclusion

Neutral plus

Cancer immunotherapy IPOs have done well

Collaborates with GSK, $115bb market cap

Phase 1/2 clinical trials

Collaboration revenue $3.8mm up from zero, for Dec 6 months

P/E is -112, indicating low cash burn rate relative to market cap

Price to sales of 145

Price to book of 4.8, relatively high

Finance income of $2.4mm

Loss is -128% of revenue

Shareholders not buying

Adaptimmune Therapeutics Business

ADAP is a clinical-stage biopharmaceutical company focused on novel cancer immunotherapy products based on its T-cell receptor platform.

ADAP has developed a comprehensive proprietary platform that enables it to identify cancer targets in the form of peptides, which are short sequences of amino acids, find and genetically engineer T-cell receptors, or TCRs, and produce TCR therapeutic candidates for administration to patients.

Adaptimmune Therapeutics Strategic Collaborations and Licensing Agreements

ADAP entered a strategic collaboration with GlaxoSmithKline plc (GSK) , $115 billion market cap,  in May 2014 regarding the development, manufacture and commercialization of TCR therapeutic candidates.

ADAP expects to capitalize on GSK's drug development and regulatory expertise and commercial capabilities to bring partnered therapeutic products to market.

Under the collaboration and license agreement, ADAP received an upfront payment of £25 million and is  entitled to various milestone payments based on the achievement of specified development and commercialization milestones by either ADAP or GSK.

As previously announced, these milestone payments have a potential value of approximately $350 million over the next seven years.

In the six months ended December 31, 2014, ADAP received cash milestone payments from GSK of £2.5 million and achieved a further £2.0 million milestone that was paid in January 2015.

The total revenue recognized under the GSK collaboration and license agreement in the six months ended December 31, 2014 was £2.4 million. Development milestones are payable on a collaboration program by collaboration program basis.

Adaptimmune Therapeutics Grants

In February 2014, ADAP was awarded a £2.2 million grant from the United Kingdom Technology Strategy Board, or TSB, to fund the U.K. clinical development of our adopted T-cell therapy for breast cancer, using ADAP's engineered TCR to a second cancer testis peptide.

The TSB is a not-for-profit body funded by the United Kingdom national government. Under the terms of the grant, ADAP retains all rights, results and intellectual property relating to the program.

The TSB will pay ADAP under this grant in quarterly installments based on costs incurred and ADAP  expects to utilize it over a three-year period that commenced in January 2014. For the year ended June 30, 2014 and for the six months ended December 31, 2014, ADAP recognized income of £0.1 million and £0.2 million, respectively, from this grant.

In 2012, ADAP was awarded a £0.2 million grant as part of a collaboration program called ATTACK 2 (Adoptive engineered T-cell Targeting to Activate Cancer Killing).

This program is funded by a European Union Framework Seven (FP7) sponsored by The Christie Trials Co-ordination Unit and is intended to cover two Phase 1/2 clinical trials at seven clinical sites in the United Kingdom, Netherlands, Italy and Sweden using our NY-ESO TCR therapeutic candidate.

ADAP expects to receive payments under this grant in quarterly installments based on costs incurred over a four-year period starting in the first quarter of 2015.

Adaptimmune Therapeutics Genetically engineered T-cell receptors

ADAP engineers TCRs to increase their affinity to cancer-specific peptides, including its lead target peptides, NY-ESO-1 and MAGE A-10, in order to target and then destroy cancer cells in patients.

Unlike current antibodies and therapies that are based on the use of chimeric antigen receptor T cells, or CAR-Ts, ADAP’s TCR therapeutic candidates are able to target intracellular as well as extracellular cancer antigens.

This capability significantly increases the breadth of targets, particularly as intracellular targets are known to be more closely associated with cancer, but are inaccessible with other autologous T-cell immunotherapy approaches.

ADAP believes this approach will lead to TCR therapeutic candidates that have the potential to significantly impact cancer treatment and clinical outcomes of patients with cancer.

Adaptimmune Therapeutics Lead program

ADAP’s lead program is an affinity-enhanced TCR therapeutic targeting the NY-ESO-1, or NY-ESO, cancer antigen.

ADAP is conducting Phase 1/2 clinical trials for its NY-ESO TCR therapeutic candidate in patients with solid tumors and hematological malignancies including synovial sarcoma, multiple myeloma, melanoma, ovarian cancer and esophageal cancer.

As of February 28, 2015, ADAP had administered its NY-ESO TCR therapeutic candidate to 44 patients across several cancer indications.

In both synovial sarcoma and multiple myeloma, ADAP has seen responses and preliminary evidence of tumor reduction in patients with highly refractory cancers.

 In ADAP’s synovial sarcoma trial, as of February 28, 2015, 10 patients had received its NY-ESO TCR therapeutic candidate and of these, six patients had responded, with one complete response (before relapse at nine months) and five partial responses.

Of the patients with a partial response, the first three patients subsequently underwent resection for residual disease and one of those three patients has remained without evidence of any disease as of February 2, 2015.

Adaptimmune Therapeutics Stem cell transplant treatment results

Results from the multiple myeloma trial following autologous stem cell transplant, or auto-SCT, showed a 59% complete or near complete response rate at 100 days post-administration in 22 patients with active disease at the time of transplant.

The NY-ESO engineered T cells have persisted in the myeloma trial for six months in all but one patient and, in a subset of patients, for two years following administration. In addition, based on ADAP’s clinical data to date, ADAP believes its NY-ESO TCR therapeutic candidate has a promising tolerability profile.

Adaptimmune Therapeutics Intellectual property

As of December 31, 2014, ADAP owned or jointly owned approximately 173 granted patents (of which 13 are U.S.-issued patents) and 33 pending patent applications (of which 16 are U.S. patent applications).

These patents and patent applications include claims directed to ADAP’s TCR therapeutic candidates, its platform technology used to identify and generate engineered TCR therapeutic candidates and its manufacturing and process technology.

Adaptimmune Therapeutics Competition

The biotechnology and pharmaceutical industries are characterized by rapidly advancing technologies, intense competition and a strong emphasis on proprietary products.

While ADAP believes that its scientific knowledge, technology and development experience provide it with competitive advantages, ADAP faces potential competition from many different sources, including major pharmaceutical, specialty pharmaceutical and biotechnology companies, academic institutions, governmental agencies and public and private research institutions.

Any TCR therapeutic candidates that ADAP successfully develops and commercializes will compete with existing products and new products that may become available in the future.

Immunotherapy is an active area of research and a number of immune-related products and products have been identified in recent years that are alleged to modulate the immune system.

Many of these products utilize dendritic cells, a form of immune cell that presents cancer target peptides to T cells and that can in turn result in T-cell activation.

More recently, bi-specific antibodies and checkpoint inhibitors have been identified as having utility in the treatment of cancer. Bi-specific antibodies commonly target both the cancer peptide and the TCR, thus bringing both cancer cells and T cells into close proximity to maximize the chance of TCR binding and hence an immune response to the cancer cells.

Checkpoint inhibitors on the other hand work by targeting receptors that inhibit T-cell effectiveness and proliferation and essentially activate the T cells.

Other engineered T-cell therapeutics have also been identified using antibody recognition systems engineered into T cells, so-called CAR-T cells.

These and other competitors in the TCR space include: Juno Therapeutics Inc., Kite Pharma Inc. / National Institutes of Health, or NIH, Medigene AG and Takara Bio Inc.

In the CAR-T space, competitors include: Bellicum Pharmaceuticals, Inc., bluebird bio, Inc. / Celgene Corporation / Baylor College of Medicine, Cellectis SA / Pfizer Inc., Juno Therapeutics Inc. / Fred Hutchinson Cancer Research Center / Memorial Sloan Kettering Cancer Center, Kite Pharma, Inc. / Amgen, Inc. / NIH, Intrexon Corporation / Ziopharm Oncology, Inc. / MD Anderson Cancer Center and Novartis AG / University of Pennsylvania.

Adaptimmune Therapeutics 5% shareholders pre-IPO

New Enterprise Associates        16.60%

Nicholas Cross   8.13%

George Robinson          8.13%  

Immunocore Limited      7.55%  

OrbiMed Private Investments V, L.P.      7.11%

Ian Laing           8.13%  

David Mott        16.60%

Ali Behbahani, M.D.       16.60%

Peter Thompson, M.D. 7.11%                         

Adaptimmune Therapeutics Dividends

No dividends are planned.

Adaptimmune Therapeutics IPO Use of proceeds

ADAP expects to receive $137 million from its IPO and use it with existing cash for the following:

$30 million to advance and accelerate the clinical development of its MAGE A-10 TCR therapeutic candidate through Phase 1/2 clinical trials;

$25 million to put in place a pilot manufacturing capability for its clinical trials and fund its operations until the middle of 2018, and to initiate a feasibility assessment for a commercially viable manufacturing platform for all of its TCR therapeutic candidates;

$140 million to advance additional TCR therapeutic candidates into preclinical testing, continue preclinical testing of its AFP TCR therapeutic candidate and progress such TCR therapeutic candidates through to clinical trials as quickly as possible; and

the remainder to fund working capital, including other general corporate purposes.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
GSK GlaxoSmithKline PLC 37.68 0.32 0.86 2,439,981 Trade
ADAP Adaptimmune Therapeutics plc 5.25 -0.50 -8.70 1,730,586 Trade


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