Digital Biotechnologies Inc., a Seattle-based subsidiary emerging from publicly traded immune medicine firm Adaptive Biotechnologies, has secured new capital through an initial closing of its Series A financing.
According to a recent regulatory filing from Adaptive, the funding round has the potential to reach $15 million in total value.
The newly formed company is focused on advancing DNA sequencing technology. An Adaptive spokesperson characterized the startup as operating “adjacent” to Adaptive’s primary strategic priorities in immune medicine and Minimal Residual Disease (MRD) testing
applications.
“We are proud to have supported their journey to date and look forward to seeing their continued progress in the coming years with this new financing in place,” the spokesperson stated. Once the current funding round concludes, Adaptive is expected to maintain ownership of approximately half of the company.
Digital Biotechnologies operates from Adaptive’s headquarters facility located in Seattle’s South Lake Union district. The spokesperson did not disclose additional information regarding the company’s leadership structure or provide details about a company website.
A recent employment listing reveals that Digital Biotechnologies is developing a “clinical sequencing instrument.” The posting elaborates on the market need:
Existing methods for high-throughput sequencing fall short for numerous clinical applications, as current next-generation sequencing (NGS) platforms fail to deliver the necessary combination of high accuracy, quick turnaround times, and cost-effectiveness that would enable widespread clinical utility. Through partnerships with academic and industry scientists nationwide, Digital Biotechnologies is creating the first solid-state sequencer with specifications required for a broadly applicable clinical sequencing instrument.
The company appears to harness Adaptive’s expertise and intellectual property in immune medicine while maintaining a separate engineering and product development organization concentrated on hardware solutions.
Jason Bielas, a long-standing professor at the University of Washington and leader at Fred Hutch Cancer Center, serves as a co-founder of Digital Biotechnologies. Based on LinkedIn data, the company currently employs a small team of additional staff members.
Adaptive intends to incorporate the subsidiary’s financial performance into its own consolidated earnings statements.
Brothers Chad and Harlan Robins established Adaptive in 2009, building the company around immune system-focused products for diagnosing and monitoring cancer and various other diseases. The organization, which originated from Fred Hutch, completed its initial public offering in 2019.
Chad Robins continues in his role as CEO of the company, while Harlan Robins serves as chief scientific officer. LinkedIn data indicates Adaptive has a workforce exceeding 600 employees.
Over the previous 12 months, Adaptive’s stock price has climbed more than 120%. Share values jumped over 50% in November following the company’s announcement that it exceeded third quarter projections, posting $94 million in total revenue, driven primarily by expansion in its MRD business segment.
Last month, Adaptive announced two autoimmune-focused licensing agreements with Pfizer, including one targeting rheumatoid arthritis that could generate up to $890 million in value.
The previous year saw the company agree to cancel a partnership with Genentech. That agreement, initially revealed in 2019, had carried a potential value of $2 billion.
Digital Biotechnologies’ development efforts combine the sequencing technology focus with clinical application demands, aiming to fill a gap in the market where speed, accuracy, and affordability
requirements have not been met simultaneously by existing platforms. The solid-state sequencing approach represents a technological advancement intended to make clinical sequencing more practical and accessible across various medical applications.