AbCellera Reports Q2 2024 Business Results

About this update from Abcellera Biologics Inc.

VANCOUVER, British Columbia --(BUSINESS WIRE)-- AbCellera (Nasdaq: ABCL) today announced financial results for the second quarter of 2024. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. “This quarter, we made important progress on our internal pipeline and aim to submit applications for clinical trials for ABCL635 and ABCL575 in the second quarter of 2025. In parallel, we have focused preclinical work on our T-cell engager platform to four molecules for indications in oncology and autoimmunity,” said Carl Hansen , Ph.D., founder and CEO of AbCellera. "Since our last earnings release, two of our partners have achieved notable milestones, including Abdera's IND clearance and Fast Track designation for ABD-147 and Invetx's upcoming acquisition by a global leader in animal health. AbCellera is a founding partner of both Abdera and Invetx. In addition, we have recently announced an expansion of our partnership with Lilly.” Q2 2024 Business Summary ABCL635 and ABCL575 remain on track for anticipated Clinical Trial Applications (CTAs) in the second quarter of 2025. Disclosed three T-cell engager programs under evaluation targeting PSMA, B7-H4, and CD-19. The U.S. FDA cleared Abdera's Investigational New Drug (IND) application for ABD-147, and also granted it a Fast Track designation. AbCellera is a founding partner in Abdera, has a low-single-digit royalty stake in Abdera’s programs, and has a mid-single-digit equity ownership position. Reported the start of three additional partner-initiated programs with downstreams to reach a cumulative total of 93 partner-initiated program starts with downstreams. Reported the addition of one molecule in the clinic, bringing the cumulative total to 14 molecules advanced to the clinic. Recent Developments On July 31, 2024 , announced an expanded collaboration with Lilly to discover therapeutic antibodies for programs in immunology, cardiovascular disease, and neuroscience. On July 18, 2024 , Invetx announced its upcoming acquisition by Dechra Pharmaceuticals for up to $520 million in total consideration. AbCellera is a founding partner in Invetx, has a low-single-digit royalty stake in Invetx’s programs, and has a mid-single-digit equity ownership position. Key Business Metrics Cumulative Metrics June 30, 2023 June 30, 2024 Change % Partner-initiated program starts with downstreams 80 93 16 % Molecules in the clinic 9 14 56 % AbCellera started discovery on an additional three partner-initiated programs with downstreams to reach a cumulative total of 93 partner-initiated program starts with downstreams in Q2 2024 (up from 80 on June 30, 2023 ). AbCellera’s partners have advanced a cumulative total of 14 molecules into the clinic (up from nine on June 30, 2023 ). Discussion of Q2 2024 Financial Results Revenue – Total revenue was $7.3 million , compared to $10.1 million in Q2 2023. Partnerships generated research fees of $5.5 million , compared to $9.8 million in Q2 2023. Milestone payments contributed $1.5 million in the quarter. Research & Development (R&D) Expenses – R&D expenses were $40.9 million , compared to $36.5 million in Q2 2023, reflecting underlying continued growth in program execution, platform development, and investments in internal programs. Sales & Marketing (S&M) Expenses – S&M expenses were $3.1 million , compared to $3.8 million in Q2 2023. General & Administrative (G&A) Expenses – G&A expenses were $20.2 million , compared to $15.5 million in Q2 2023. Net Loss – Net loss of $36.9 million , or $(0.13) per share on a basic and diluted basis, compared to net loss of $30.5 million , or $(0.11) per share on a basic and diluted basis in Q2 2023. Liquidity – $697.6 million of total cash, cash equivalents, and marketable securities and with approximately $220 million in available non-dilutive government funding to execute on AbCellera's strategy, bringing total available liquidity to over $900 million . Conference Call and Webcast AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Time ( 5:00 p.m. Eastern Time ). The live webcast of the earnings conference call can be accessed on the Events and Presentations section of AbCellera’s Investor Relations website . A replay of the webcast will be available through the same link following the conference call. About AbCellera Biologics Inc . AbCellera (Nasdaq: ABCL) discovers and develops antibody medicines for indications across therapeutic areas including cancer, metabolic and endocrine conditions, and autoimmune disorders. AbCellera’s engine integrates technology, data science, infrastructure, and interdisciplinary teams to solve the most challenging antibody discovery problems. AbCellera is focused on advancing an internal pipeline of first-in-class and best-in-class programs and collaborating on innovative drug development programs with partners. For more information, please visit www.abcellera.com . Definition of Key Business Metrics We regularly review the following key business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections, and make strategic decisions. We believe that the following metrics are important to understand our current business. These metrics may change or may be substituted for additional or different metrics as our business develops. Information on changes is set forth in our Annual Report on Form 10-K for the year ended December 31, 2023 . Partner-initiated program starts with downstreams represent the number of unique partner-initiated programs where we stand to participate financially in downstream success for which we have commenced the discovery effort. The discovery effort commences on the later of (i) the day on which we receive sufficient reagents to start discovery of antibodies against a target and (ii) the day on which the kick-off meeting for the program is held. We view this metric as an indication of the selection and initiation of projects by our partners and the resulting potential for near-term payments. Cumulatively, partner-initiated program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties (or royalty equivalents) in the mid- to long-term. Molecules in the clinic represent the count of unique molecules for which an Investigational New Drug, or IND, New Animal Drug, or equivalent under other regulatory regimes, application has reached "open" status or has otherwise been approved based on an antibody that was discovered either by us or by a partner using licensed AbCellera technology. Where the date of such application approval is not known to us, the date of the first public announcement of a clinical trial will be used for the purpose of this metric. We view this metric as an indication of our near- and mid-term potential revenue from milestone fees and potential royalty payments in the long term. AbCellera Forward-Looking Statements This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts, and other matters regarding our business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations. In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law. AbCellera Biologics Inc. Condensed Consolidated Statements of Loss and Comprehensive Loss (All figures in U.S. dollars. Amounts are expressed in thousands except share and per share data.) (Unaudited) Three months ended June 30 , Six months ended June 30 , 2023 2024 2023 2024 Revenue: Research fees $ 9,830 $ 5,453 $ 20,400 $ 15,227 Licensing revenue 226 370 598 550 Milestone payments – 1,500 1,250 1,500 Total revenue 10,056 7,323 22,248 17,277 Operating expenses: Research and development(1) 36,473 40,927 89,120 80,214 Sales and marketing(1) 3,841 3,136 7,612 6,501 General and administrative(1) 15,521 20,192 30,655 37,544 Depreciation, amortization, and impairment 5,610 36,522 11,124 41,366 Total operating expenses 61,445 100,777 138,511 165,625 Loss from operations (51,389 ) (93,454 ) (116,263 ) (148,348 ) Other (income) expense Interest income (10,779 ) (9,801 ) (20,537 ) (20,202 ) Grants and incentives (4,576 ) (3,310 ) (7,951 ) (6,585 ) Other (income) expense 1,970 (32,156 ) (1,624 ) (30,627 ) Total other (income) (13,385 ) (45,267 ) (30,112 ) (57,414 ) Net loss before income tax (38,004 ) (48,187 ) (86,151 ) (90,934 ) Income tax recovery (7,476 ) (11,257 ) (15,513 ) (13,394 ) Net loss $ (30,528 ) $ (36,930 ) $ (70,638 ) $ (77,540 ) Foreign currency translation adjustment 122 (257 ) (508 ) (353 ) Comprehensive loss $ (30,406 ) $ (37,187 ) $ (71,146 ) $ (77,893 ) Net loss per share Basic $ (0.11 ) $ (0.13 ) $ (0.24 ) $ (0.26 ) Diluted $ (0.11 ) $ (0.13 ) $ (0.24 ) $ (0.26 ) Weighted-average common shares outstanding Basic 288,905,587 294,217,013 288,357,081 293,467,753 Diluted 288,905,587 294,217,013 288,357,081 293,467,753 (1) Exclusive of depreciation, amortization, and impairment AbCellera Biologics Inc. Condensed Consolidated Balance Sheet (All figures in U.S. dollars. Amounts are expressed in thousands except share data.) (Unaudited) December 31, 2023 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 133,320 $ 148,312 Marketable securities 627,265 522,044 Total cash, cash equivalents, and marketable securities 760,585 670,356 Accounts and accrued receivable 30,590 36,143 Restricted cash 25,000 25,000 Other current assets 55,810 40,055 Total current assets 871,985 771,554 Long-term assets: Property and equipment, net 287,696 318,882 Intangible assets, net 120,425 85,661 Goodwill 47,806 47,806 Investments in equity accounted investees 65,938 76,064 Other long-term assets 94,244 112,514 Total long-term assets 616,109 640,927 Total assets $ 1,488,094 $ 1,412,481 Liabilities and shareholders' equity Current liabilities: Accounts payable and other current liabilities $ 49,580 $ 43,952 Contingent consideration payable 50,475 20,027 Deferred revenue 18,958 6,401 Total current liabilities 119,013 70,380 Long-term liabilities: Operating lease liability 71,222 66,451 Deferred revenue 8,195 7,970 Deferred government contributions 95,915 124,186 Contingent consideration payable 4,913 4,441 Deferred tax liability 30,612 21,737 Other long-term liabilities 5,906 6,348 Total long-term liabilities 216,763 231,133 Total liabilities 335,776 301,513 Commitments and contingencies Shareholders' equity: Common shares: no par value, unlimited authorized shares at December 31, 2023 and June 30, 2024 : 290,824,970 and 294,665,532 shares issued and outstanding at December 31, 2023 and June 30, 2024 , respectively 753,199 769,966 Additional paid-in capital 121,052 140,828 Accumulated other comprehensive loss (1,720 ) (2,073 ) Accumulated earnings 279,787 202,247 Total shareholders' equity 1,152,318 1,110,968 Total liabilities and shareholders' equity $ 1,488,094 $ 1,412,481 AbCellera Biologics Inc. Condensed Consolidated Statement of Cash Flows (Expressed in thousands of U.S. dollars.) (Unaudited) Six months ended June 30 , 2023 2024 Cash flows from operating activities: Net loss $ (70,638 ) $ (77,540 ) Cash flows from operating activities: Depreciation of property and equipment 5,810 6,603 Amortization and impairment of intangible assets 5,314 34,763 Amortization of operating lease right-of-use assets 3,252 3,437 Stock-based compensation 31,873 35,191 Fair value gain on contingent consideration — (30,920 ) Other (4,429 ) (8,193 ) Changes in operating assets and liabilities: Research fees and grants receivable (24,269 ) (34,434 ) Accrued royalties receivable 9,260 — Income taxes payable (receivable) 22,884 (5,953 ) Accounts payable and accrued liabilities (2,827 ) (130 ) Deferred revenue (4,870 ) (12,782 ) Accrued royalties payable (16,253 ) — Deferred grant income 25,566 19,757 Other assets (4,833 ) (1,473 ) Net cash used in operating activities (24,160 ) (71,674 ) Cash flows from investing activities: Purchases of property and equipment (42,185 ) (44,250 ) Purchase of marketable securities (528,891 ) (426,007 ) Proceeds from marketable securities 422,814 539,385 Receipt of grant funding 7,693 19,750 Long-term investments and other assets (36,757 ) 3,950 Investment in equity accounted investees (6,673 ) (10,820 ) Net cash provided by (used in) investing activities (183,999 ) 82,008 Cash flows from financing activities: Payment of liability for in-licensing agreement and other (863 ) (368 ) Proceeds from long-term liabilities — 4,497 Proceeds from exercise of stock options 824 1,353 Net cash provided by (used in) financing activities (39 ) 5,482 Effect of exchange rate changes on cash and cash equivalents 584 (824 ) Increase (decrease) in cash and cash equivalents (207,614 ) 14,992 Cash and cash equivalents and restricted cash, beginning of period 414,651 160,610 Cash and cash equivalents and restricted cash, end of period $ 207,037 $ 175,602 Restricted cash included in other assets 2,290 2,290 Total cash, cash equivalents, and restricted cash shown on the balance sheet $ 204,747 $ 173,312 Supplemental disclosure of non-cash investing and financing activities Property and equipment in accounts payable 11,718 15,944 Right-of-use assets obtained in exchange for operating lease obligation 2,945 452 View source version on businesswire.com : https://www.businesswire.com/news/home/20240806789183/en/ Inquiries Media: Kathleen Reid : [email protected] , +1(236)521-6774 Business Development: Murray McCutcheon , Ph.D., [email protected] , +1(604)559-9005 Investor Relations: Melanie Solomon , [email protected] , +1(778)729-9116 Source: AbCellera Biologics Inc.

View stock analysis, news, and events for Abcellera Biologics Inc.