There has been a movement occurring among life science researchers and physicians over the past two decades (or more in the physicians case). We have come to the end of the age of the renaissance person; that individual who can complete a scientific project or treat a patient all on their own. There is simply too much for any one individual to know. Adaptive Biotechnologies (AB) works by taking samples provided to them by researchers or physicians and sequencing the DNA or RNA of the T cells and B cells (the key players in the immune system). This service is desirable by many researchers in the fields of immunology as it allows for a holistic view of activity in B and T cells. AB also provides a valuable tool for physicians as B and T cells will often show activity towards a relapsing tumor prior to when that tumor is evident under current diagnostics.
AB has recognized the need for large scale genomic analysis in a field that has been begging for a solution to lack of qualified genome scientists. What’s more, their market is enormous and growing. The life sciences research market is expected to exceed 37 billion dollars this year while the cancer diagnostics market is forecast to by upwards of 5 billion dollars by the end of 2015 (and go to $138 billion by 2020). Immunology is estimated to make up 21% of the life sciences research budget which gives AB a 7.7 billion dollar research market and a 5 billion dollar diagnostic market to work with.
The genomic analysis the AB offers is not going to capture that entire market. There is too much diversity of need for their single product to fill. However, they will be able to capture subsets of each market. Immunology researchers who lack training in computer science (currently no Comp Sci courses are required in most immunology programs) but want to do large scale genomic analysis will flock to AB. Likewise, physicians who want to test for cancer relapse but lack sufficient in house testing capabilities will find AB’s product of tremendous value.
Based on their high quality product and booming market, I believe Adaptive Biotechnologies will continue to grow its market share.