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Adicet Bio Inc
NASDAQ:ACET

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Adicet Bio Inc
NASDAQ:ACET
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Price: 9.31 USD 7.75% Market Closed
Market Cap: $89.4m

Adicet Bio Inc
Investor Relations

Adicet Bio is a clinical-stage biotechnology company that develops cell therapies made from donor immune cells, especially gamma delta T cells. Its goal is to create “off-the-shelf” treatments that can be given to patients without having to collect and engineer each patient’s own cells. The company’s main work is research and development of these therapies for cancers and, more recently, autoimmune diseases. Adicet does not sell a broad commercial product line. It advances drug candidates through laboratory work and clinical testing, then seeks partnerships, licensing deals, or future product sales if a therapy reaches the market. In practice, its customers are not end users today but hospitals, doctors, and eventually patients, while its near-term economic value comes from funding, collaborations, and the long-term possibility of approved medicines. What makes Adicet different is its focus on allogeneic cell therapy, which is designed to be manufactured in advance and used more like a standard drug than a custom treatment. That could make cell therapy easier to scale and distribute if the science works. The company sits in a high-risk, high-science part of biotech where success depends on turning a complex immune-cell platform into safe and effective medicines.

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Last Earnings Call
Fiscal Period
Q1 2019
Call Date
Nov 10, 2018
AI Summary
Q1 2019

Revenue Decline: ACETO reported first quarter net sales of $164.4 million, down 11.3% from the prior year as Human Health sales dropped sharply due to generic market pressures and failure to supply (FTS) penalties.

Widening Loss: The company posted a net loss of $21.1 million, or $0.59 per share, compared to $0.5 million net income last year, driven by falling gross profit and higher SG&A expenses.

Segment Divergence: Pharmaceutical Ingredients and Performance Chemicals segments showed year-over-year growth in sales and gross profit, while Human Health continued to struggle.

Cash Position & Liquidity: Cash and equivalents were $52.5 million, with total debt at $315.4 million; management emphasized reliance on a strategic alternatives process to generate liquidity and retire debt.

Inventory Build: Inventory rose to $156.5 million, primarily to improve supply reliability and mitigate tariff risks, causing a large cash draw.

Tariff Exposure: Tariffs on Chinese imports have had a limited impact so far, but could cost $850,000 to $3.7 million in the second half of fiscal 2019 if rates rise to 25%.

Failure to Supply Improving: FTS claims and backorders have declined sharply after operational changes, with further improvement expected.

Strategic Review Ongoing: The board continues a strategic alternatives review but offered no new details, affirming intent to use proceeds to retire debt.

Key Financials
Revenue
$164.4 million
Gross Profit
$25.5 million
Gross Margin
15.5%
Operating Loss
$13.3 million
Net Loss
$21.1 million
EPS
-$0.59
Human Health Sales
$80.8 million
Pharmaceutical Ingredients Sales
$38.8 million
Pharmaceutical Ingredients Gross Profit
$6.9 million
Pharmaceutical Ingredients Gross Margin
17.7%
Performance Chemicals Sales
$44.7 million
Performance Chemicals Gross Profit
$10.1 million
Performance Chemicals Gross Margin
22.6%
SG&A Expenses
$36.9 million
R&D Expenses
$1.9 million
Cash, Cash Equivalents & Short-term Investments
$52.5 million
Total Debt
$315.4 million
Working Capital
$182.6 million
Trade Receivables
$292.4 million
Inventory
$156.5 million
Accounts Payable
$123.4 million
Cash Used in Operating Activities
$46.4 million
Bank Loan Repayments
$3.8 million
Failure to Supply Penalties (Q1 2019)
$6.5 million
Tariff Cost Impact (if 25% enacted)
$850,000 to $3.7 million
Other Earnings Calls
2019

Management

Mr. Chen Schor BA, CPA, M.B.A.
CEO, President & Director
No Bio Available
Dr. Aya Jakobovits Ph.D.
Founder & Independent Director
No Bio Available
Mr. Brian Nicholas Harvey
Chief Financial Officer
No Bio Available
Dr. Donald Healey Ph.D.
Chief Technology Officer
No Bio Available
Dr. Blake Aftab Ph.D.
Senior VP & Chief Scientific Officer
No Bio Available
Ms. Amy Locke
Chief Human Resource Officer
No Bio Available
Dr. Francesco Galimi M.D., Ph.D.
Chief Medical Officer & Senior VP
No Bio Available
Dr. Nancy L. Boman M.D., Ph.D.
Senior VP & Chief Regulatory Officer
No Bio Available

Contacts

Address
MASSACHUSETTS
Boston
200 Clarendon Street, Floor 6
Contacts
+16174822333.0
www.adicetbio.com
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