Life Science Tools & Diagnostics Model Updates

Research evidence excerpt

Life Science Tools & Diagnostics Model Updates

Casey Woodring AC North America Equity Research

(1-212) 622-9074 16 July 2026 J P M O R G A N

casey.woodring@jpmchase.com

Investment Thesis, Valuation and Risks

Adaptive Biotechnologies (Overweight; Price Target: $25.00)

Investment Thesis

As a leader in the expanding immune medicine market ($49B TAM across research, clinical

diagnostics, and drug discovery), Adaptive Biotechnologies (ADPT) is uniquely positioned

with its proprietary platform that decodes the genetic language of the body’s adaptive

immune system. This platform underpins the company’s immunosequencing assay and its

flagship clonoSEQ minimal residual disease (MRD) test for blood cancers. Recent quarters

have seen a notable acceleration in clinical clonoSEQ MRD volumes driven by deeper

penetration into the community setting, ongoing expansion of clinical guidelines, and

increasing EMR integrations. Looking ahead to 2026, we see multiple catalysts including

broader adoption of blood-based testing and expansion into under-penetrated indications.

ADPT is also gaining traction with pharma partners seeking to leverage its differentiated

immune medicine (IM) data assets. The recently announced Pfizer (PFE) data licensing

agreement in December exemplifies the growing strategic value of ADPT’s platform and

provides a clear path to upside for the IM business over time.

Valuation

Our December 2026 DCF-derived price target of $25 assumes a CAPM-derived WACC

discount rate of 8.5% and +5% terminal growth.

Risks to Rating and Price Target

Downside risks to our rating and price target include: (i) Pipeline development hurdles could

discourage, delay, or prevent progress in ADPT’s TCR-antigen training data initiatives,