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AbCellera Reports Q1 2024 Business Results
"We continue to execute on advancing our internal pipeline, completing capital investments in forward integration, and expanding strategic partnerships," said Carl Hansen, Ph.D., founder and CEO of AbCellera. "This quarter, presentations on our T-cell engager platform, which includes our highly differentiated CD3 panel, demonstrated how we can repeatedly generate TCEs that maximize tumor-cell killing without inducing excessive cytokine release. With our TCE platform in place, we are moving programs towards in vivo studies."
Q1 2024 Business Summary
Announced a new collaboration with Biogen Inc. to discover antibodies for neurological conditions. Announced a new collaboration with Viking Global Investors and ArrowMark Partners to launch new biotech companies. Presented new data on its T-cell engager (TCE) programs at the American Association for Cancer Researcha" Annual Meeting 2024 that demonstrate how AbCellera's TCE platform is able to generate TCEs that achieve potent cell killing with low toxicity associated with cytokine release. Reported the start of three additional partner-initiated programs with downstreams to reach a cumulative total of 90 partner-initiated program starts with downstreams. Maintained a cumulative total of 13 molecules advanced to the clinic.
Key Business Metrics
Cumulative Metrics March 31, 2023 March 31, 2024 Change % Partner-initiated program starts with downstreams 75 90 20 %
AbCellera started discovery on an additional three partner-initiated programs with downstreams to reach a cumulative total of 90 partner-initiated program starts with downstreams in Q1 2024 (up from 75 on March 31, 2023). AbCellera's partners have advanced a cumulative total of 13 molecules into the clinic (up from nine on March 31, 2023).
Discussion of Q1 2024 Financial Results
Revenue - Total revenue was $10.0 million, compared to $12.2 million in Q1 2023. Partnerships generated research fees of $9.8 million, compared to $10.6 million in Q1 2023. Licensing revenue was $0.2 million. Research & Development (R&D) Expenses - R&D expenses were $39.3 million, compared to $52.6 million in Q1 2023, reflecting underlying continued growth in program execution, platform development, and investments in internal programs, partially offset by the non-recurrence of specific one-time investments in co-development and internal programs. Sales & Marketing (S&M) Expenses - S&M expenses were $3.4 million, compared to $3.8 million in Q1 2023. General & Administrative (G&A) Expenses - G&A expenses were $17.4 million, compared to $15.1 million in Q1 2023. Net Loss - Net loss of $40.6 million, or $(0.14) per share on a basic and diluted basis, compared to net loss of $40.1 million, or $(0.14) per share on a basic and diluted basis in Q1 2023. Liquidity - $725.3 million of total cash, cash equivalents, and marketable securities and with approximately $240 million in available non-dilutive government funding to execute on our strategy, bringing our total available liquidity to just under $1 billion.
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.
Source: AbCellera Biologics Inc.
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 March 31,
----------------------------------------------------------------------------------------------------------------------------
2023 2024
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Revenue:
$ 10,570 $ 9,774
Research fees
372 180
Licensing revenue
1,250 -
Milestone payments
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Total revenue 12,192 9,954
Operating expenses:
52,647 39,287
Research and development(1)
3,771 3,365
Sales and marketing(1)
15,134 17,352
General and administrative(1)
5,514 4,844
Depreciation and amortization
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Total operating expenses 77,066 64,848
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Loss from operations (64,874 ) (54,894 )
Other (income) expense
(9,759 ) (10,401 )
Interest income
(3,374 ) (3,275 )
Grants and incentives
(3,593 ) 1,529
Other
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Total other (income) (16,726 ) (12,147 )
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Net loss before income tax (48,148 ) (42,747 )
(8,038 ) (2,137 )
Income tax recovery
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Net loss $ (40,110 ) $ (40,610 )
(630 ) (96 )
Foreign currency translation adjustment
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Comprehensive loss $ (40,740 ) $ (40,706 )
-------------------- ------------ -------------------- -------------------- ------------ --------------------
Net loss per share
$ (0.14 ) $ (0.14 )
Basic
$ (0.14 ) $ (0.14 )
Diluted
Weighted-average common shares outstanding
287,767,136 292,723,901
Basic
(1) Exclusive of depreciation and amortization
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 March 31, 2024
-------------------------------------------------- --------------------------------------------------
Assets
Current assets:
$ 133,320 $ 123,572
Cash and cash equivalents
627,265 574,451
Marketable securities
-------------------- ---------- -------------------- -------------------- ---------- --------------------
760,585 698,023
Total cash, cash equivalents, and marketable securities
30,590 34,419
Accounts and accrued receivable
25,000 25,000
Restricted cash
55,810 56,506
Other current assets
-------------------- ---------- -------------------- -------------------- ---------- --------------------
871,985 813,948
Total current assets
Long-term assets:
287,696 306,081
Property and equipment, net
120,425 118,736
Intangible assets, net
47,806 47,806
Goodwill
65,938 71,592
Investments in equity accounted investees
94,244 104,933
Other long-term assets
-------------------- ---------- -------------------- -------------------- ---------- --------------------
616,109 649,148
Total long-term assets
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total assets $ 1,488,094 $ 1,463,096
==================== ========== ==================== ==================== ========== ====================
Liabilities and shareholders' equity
Current liabilities:
$ 49,580 $ 42,887
Accounts payable and other current liabilities
50,475 51,431
Contingent consideration payable
18,958 10,565
Deferred revenue
-------------------- ---------- -------------------- -------------------- ---------- --------------------
119,013 104,883
Total current liabilities
Long-term liabilities:
71,222 68,079
Operating lease liability
8,195 8,570
Deferred revenue
95,915 110,579
Deferred government contributions
4,913 5,063
Contingent consideration payable
30,612 30,274
Deferred tax liability
5,906 5,735
Other long-term liabilities
-------------------- ---------- -------------------- -------------------- ---------- --------------------
216,763 228,300
Total long-term liabilities
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total liabilities 335,776 333,183
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Commitments and contingencies
Shareholders' equity:
753,199 764,562
Common shares: no par value, unlimited authorized shares at December 31, 2023 and March 31, 2024: 290,824,970 and 293,621,312 shares issued and outstanding at December 31, 2023 and March 31, 2024, respectively
121,052 127,990
Additional paid-in capital
(1,720 ) (1,816 )
Accumulated other comprehensive loss
279,787 239,177
Accumulated earnings
-------------------- ---------- -------------------- -------------------- ---------- --------------------
1,152,318 1,129,913
Total shareholders' equity
-------------------- ---------- -------------------- -------------------- ----------
AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars.)
(Unaudited)
Three months ended March 31,
--------------------------------------------------------------------------------------------------------------------------------
2023 2024
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from operating activities:
Net loss $ (40,110 ) $ (40,610 )
Cash flows from operating activities:
2,858 3,155
Depreciation of property and equipment
2,656 1,689
Amortization of intangible assets
1,606 1,922
Amortization of operating lease right-of-use assets
15,474 17,409
Stock-based compensation
(3,634 ) 1,707
Other
Changes in operating assets and liabilities:
7,915 (18,576 )
Research fees and grants receivable
9,260 --
Accrued royalties receivable
(12,614 ) (3,182 )
Income taxes payable
(5,778 ) (4,878 )
Accounts payable and accrued liabilities
(3,905 ) (8,017 )
Deferred revenue
(16,253 ) --
Accrued royalties payable
4,525 11,278
Deferred grant income
(6,063 ) (3,605 )
Other assets
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(44,063 ) (41,708 )
Net cash used in operating activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from investing activities:
(14,984 ) (24,140 )
Purchases of property and equipment
(360,752 ) (249,371 )
Purchase of marketable securities
262,638 306,545
Proceeds from marketable securities
2,693 7,168
Receipt of grant funding
(34,735 ) (4,385 )
Long-term investments and other assets
(4,469 ) (5,907 )
Investment in equity accounted investees
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(149,609 ) 29,910
Net cash provided by (used in) investing activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from financing activities:
(948 ) (185 )
Payment of liability for in-licensing agreement and other
-- 2,124
Proceeds from long-term liabilities
490 892
Proceeds from exercise of stock options
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(458 ) 2,831
Net cash provided by (used in) financing activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
(213 ) (781 )
Effect of exchange rate changes on cash and cash equivalents
(194,343 ) (9,748 )
Decrease in cash and cash equivalents
Cash and cash equivalents and restricted cash, beginning of period 414,650 160,610
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash and cash equivalents and restricted cash, end of period $ 220,307 $ 150,862
==================== ============== ==================== ==================== ============== ====================
Restricted cash included in other assets 2,290 2,290
Total cash, cash equivalents, and restricted cash shown on the balance sheet $ 218,017 $ 148,572
Supplemental disclosure of non-cash investing and financing activities
Property and equipment in accounts payable 8,918 18,654
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SOURCE: AbCellera Biologics Inc."><Property FormalName="PrimaryTwitterHandle" Value="@AbCelleraBio
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Inquiries Media: Kathleen Reid: media@abcellera.com, +1(236)521-6774 Business Development: Murray McCutcheon, Ph.D., bd@abcellera.com, +1(604)559-9005 Investor Relations: Melanie Solomon, ir@abcellera.com, +1(778)729-9116
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