0001703057false00017030572024-05-072024-05-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________
FORM 8-K
__________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 7, 2024
__________________________________________
AbCellera Biologics Inc.
(Exact name of registrant as specified in its charter)
__________________________________________
British Columbia001-39781Not Applicable
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification Number)
2215 Yukon Street
Vancouver, BC
V5Y 0A1
(Address of registrant’s principal executive office)(Zip code)
(604) 559-9005
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
__________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common sharesABCLThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company  o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o



Item 2.02    Results of Operations and Financial Condition
On May 7, 2024, AbCellera Biologics Inc. (the “Company”), issued a press release announcing its financial and operational results for the quarter ended March 31, 2024. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 7.01    Regulation FD Disclosure
In connection with its earnings call on May 7, 2024, to discuss its results for the quarter ended March 31, 2024, the Company will utilize a corporate presentation, a copy of which is furnished herewith as Exhibit 99.2.
The information in Items 2.02 and 7.01 of this Form 8-K (including the exhibits attached hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
Item 9.01    Financial Statements and Exhibits
(d)Exhibits
Exhibit
No.
Description
99.1
99.2
104Cover Page Interactive Data File (embedded as Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 7, 2024ABCELLERA BIOLOGICS INC.
 
By:/s/ Carl L. G. Hansen
Carl L. G. Hansen, Ph.D.
Chief Executive Officer and Director
(Principal Executive Officer)

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NEWS RELEASE


AbCellera Reports Q1 2024 Business Results

05/07/2024


VANCOUVER, British Columbia--(BUSINESS WIRE) -- AbCellera (Nasdaq: ABCL) today announced financial results for the first quarter of 2024. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“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 Research 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.
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Key Business Metrics
Cumulative MetricsMarch 31, 2023March 31, 2024Change %
Partner-initiated program starts with downstreams759020 %
Molecules in the clinic91344 %

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.
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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
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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.

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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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,
20232024
Revenue:
Research fees$10,570 $9,774 
Licensing revenue372 180 
Milestone payments1,250 
Total revenue12,192 9,954 
Operating expenses:
Research and development(1)
52,647 39,287 
Sales and marketing(1)
3,771 3,365 
General and administrative(1)
15,134 17,352 
Depreciation and amortization5,514 4,844 
Total operating expenses77,066 64,848 
Loss from operations(64,874)(54,894)
Other (income) expense
Interest income(9,759)(10,401)
Grants and incentives(3,374)(3,275)
Other(3,593)1,529 
Total other (income)(16,726)(12,147)
Net loss before income tax(48,148)(42,747)
Income tax recovery(8,038)(2,137)
Net loss$(40,110)$(40,610)
Foreign currency translation adjustment(630)(96)
Comprehensive loss$(40,740)$(40,706)
Net loss per share
Basic$(0.14)$(0.14)
Diluted$(0.14)$(0.14)
Weighted-average common shares outstanding
Basic287,767,136292,723,901
Diluted287,767,136292,723,901

(1) Exclusive of depreciation and amortization
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AbCellera Biologics Inc.
Condensed Consolidated Balance Sheet
(All figures in U.S. dollars. Amounts are expressed in thousands except share data.)
(Unaudited)
December 31, 2023March 31, 2024
Assets
Current assets:
Cash and cash equivalents$133,320 $123,572 
Marketable securities627,265 574,451 
Total cash, cash equivalents, and marketable securities760,585 698,023 
Accounts and accrued receivable30,590 34,419 
Restricted cash25,000 25,000 
Other current assets55,810 56,506 
Total current assets871,985 813,948 
Long-term assets:
Property and equipment, net287,696 306,081 
Intangible assets, net120,425 118,736 
Goodwill47,806 47,806 
Investments in equity accounted investees65,938 71,592 
Other long-term assets94,244 104,933 
Total long-term assets616,109 649,148 
Total assets$1,488,094 $1,463,096 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and other current liabilities$49,580 $42,887 
Contingent consideration payable50,475 51,431 
Deferred revenue18,958 10,565 
Total current liabilities119,013 104,883 
Long-term liabilities:
Operating lease liability71,222 68,079 
Deferred revenue8,195 8,570 
Deferred government contributions95,915 110,579 
Contingent consideration payable4,913 5,063 
Deferred tax liability30,612 30,274 
Other long-term liabilities5,906 5,735 
Total long-term liabilities216,763 228,300 
Total liabilities335,776 333,183 
Commitments and contingencies
Shareholders' equity:
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, respectively753,199 764,562 
Additional paid-in capital121,052 127,990 
Accumulated other comprehensive loss(1,720)(1,816)
Accumulated earnings279,787 239,177 
Total shareholders' equity1,152,318 1,129,913 
Total liabilities and shareholders' equity$1,488,094 $1,463,096 
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AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars.)
(Unaudited)

Three months ended March 31,
20232024
Cash flows from operating activities:
Net loss$(40,110)$(40,610)
Cash flows from operating activities:
Depreciation of property and equipment2,858 3,155 
Amortization of intangible assets2,656 1,689 
Amortization of operating lease right-of-use assets1,606 1,922 
Stock-based compensation15,474 17,409 
Other(3,634)1,707 
Changes in operating assets and liabilities:
Research fees and grants receivable7,915 (18,576)
Accrued royalties receivable9,260 — 
Income taxes payable(12,614)(3,182)
Accounts payable and accrued liabilities(5,778)(4,878)
Deferred revenue(3,905)(8,017)
Accrued royalties payable(16,253)— 
Deferred grant income4,525 11,278 
Other assets(6,063)(3,605)
Net cash used in operating activities(44,063)(41,708)
Cash flows from investing activities:
Purchases of property and equipment(14,984)(24,140)
Purchase of marketable securities(360,752)(249,371)
Proceeds from marketable securities262,638 306,545 
Receipt of grant funding2,693 7,168 
Long-term investments and other assets(34,735)(4,385)
Investment in equity accounted investees(4,469)(5,907)
Net cash provided by (used in) investing activities(149,609)29,910 
Cash flows from financing activities:
Payment of liability for in-licensing agreement and other(948)(185)
Proceeds from long-term liabilities— 2,124 
Proceeds from exercise of stock options490 892 
Net cash provided by (used in) financing activities(458)2,831 
Effect of exchange rate changes on cash and cash equivalents(213)(781)
Decrease in cash and cash equivalents(194,343)(9,748)
Cash and cash equivalents and restricted cash, beginning of period414,650 160,610 
Cash and cash equivalents and restricted cash, end of period$220,307 $150,862 
Restricted cash included in other assets2,290 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 payable8,918 18,654 
Right-of-use assets obtained in exchange for operating lease obligation2,124 107 
7
C O P YR IG H T © A B C E LL E R A Q1 2024 BUSINESS UPDATE MAY 7, 2024


 
C O PY RI G H T © A B C EL LE RA DISCLAIMER 2 This presentation 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 beliefs and assumptions and on information currently available to management. All statements contained in this presentation 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 presentation 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. Q 1 2 0 2 4 B U S IN ES S U PD AT E


 
C O PY RI G H T © A B C EL LE RA C O PY RI G H T © A B C EL LE RA 3 As we move programs toward the clinic, we are prioritizing: 2 0 2 4 P R I O R I T I E S Engine & Capabilities Strategic Partnerships Internal Programs & Pipeline 1 2 3 Q 1 2 0 2 4 B U S IN ES S U PD AT E


 
C O PY RI G H T © A B C EL LE RA C O PY RI G H T © A B C EL LE RA 4 New data demonstrates highly differentiated T-cell engager platform. O U R E N G I N E . P L A T F O R M D E V E L O P M E N T Q 1 2 0 2 4 B U S IN ES S U PD AT E Presented at AACR 2024


 
C O PY RI G H T © A B C EL LE RA C O PY RI G H T © A B C EL LE RA 5 Widening the therapeutic window across solid tumor indications. O U R E N G I N E . P L A T F O R M D E V E L O P M E N T We describe the generation of T-cell engagers for three solid tumor targets, PSMA, B7-H4, and 5T4, with functional profiles that are differentiated from clinical benchmarks. These molecules were engineered using a specific set of rare CD3-binding antibodies that consistently show potent tumor-cell killing and low cytokine release across multiple targets, demonstrating their potential to expand the therapeutic window across solid tumor indications. Potent molecules with functional profiles that rival clinical benchmarks Log [bispecific] (nM) Q 1 2 0 2 4 B U S IN ES S U PD AT E


 
C O PY RI G H T © A B C EL LE RA C O PY RI G H T © A B C EL LE RA 6 Q 1 2 0 2 4 B U S IN ES S U PD AT E We are using our T-cell engager platform as a source of internal programs and a basis for strategic partnerships. Our TCE platform is nearly complete. In addition to having highly differentiated proprietary CD3s, we have also developed panels of antibodies that can be used to enhance T-cell activation, survival via signal-2 costimulation, and have demonstrated the ability to target MHC peptides. O U R E N G I N E . P L A T F O R M D E V E L O P M E N T Our focus is to test in vivo and to advance a subset of programs.


 
C O PY RI G H T © A B C EL LE RA C O PY RI G H T © A B C EL LE RA 7 We advanced strategic partnerships with established biopharmas and top-tier investment groups. O U R P A R T N E R S 1 Program NEUROLOGY Multiple Programs IMMUNOLOGY ESTABLISHED BIOPHARMA COMPANY CREATION with Investment Groups Q 1 2 0 2 4 B U S IN ES S U PD AT E


 
C O P Y R IG H T © A B C E LL E R A Q1 2024 FINANCIALS UPDATE


 
C O PY RI G H T © A B C EL LE RA C O PY RI G H T © A B C EL LE RA 9 Q 1 2 0 2 4 B U S IN ES S U PD AT E Continued progress on key business metrics and a strong cash position. in total cash, cash equivalents, & marketable securities cumulative partner- initiated program starts with downstreams internal programs advanced into IND-enabling studies $725M 90 2 molecules in the clinic13 In available liquidity to execute on our strategy~$1B


 
C O PY RI G H T © A B C EL LE RA PARTNER-INITIATED PROGRAM STARTS WITH DOWNSTREAMS Continuing portfolio growth. 10 FI N A N CI A LS Cumulative # of Q 1 2 0 2 4 B U S IN ES S U PD AT E 13 1 2 3 4 5 6 7 8 9 10 11 12 13 0 19 20 21 22 23 24 Q1 1817162015 MOLECULES IN THE CLINIC Cumulative # of 90 10 20 30 40 50 60 70 80 90 0 19 20 21 22 23 24 Q1 18162015 17


 
C O PY RI G H T © A B C EL LE RA 11 FI N A N CI A LS RESEARCH & DEVELOPMENT SALES & MARKETING GENERAL & ADMIN Operating Expenses USD Q1 2023 Q1 2024 $3.8M $3.4M Q1 2023 Q1 2024 $52.6M $39.3M -$13.4M Q 1 2 0 2 4 B U S IN ES S U PD AT E MILESTONES LICENSING RESEARCH FEES Revenue USD $0.2M $10.6M $9.8M Q1 2023 $12.2M $10.0M Q1 2024 Operating expenses reflect ongoing investments, predominantly in R&D; partly offset by $10M in revenue. -$0.4M Q1 2023 Q1 2024 +$2.2M $15.1M $17.4M


 
C O PY RI G H T © A B C EL LE RA 12 FI N A N CI A LS Net loss of $41M; equivalent to ($0.14) per share (basic & diluted). NET EARNINGS EARNINGS PER SHARE: BASIC AND DILUTED Q1 2023 Q1 2024 -$40.1M -$40.6M -$0.14 -$0.14 Q1 2023 Q1 2024 Q 1 2 0 2 4 B U S IN ES S U PD AT E Earnings USD


 
C O PY RI G H T © A B C EL LE RA 13 FI N A N CI A LS Approximately $725M in total cash, equivalents, and marketable securities. Cash Flows USD FINANCINGINVESTING FX $574M Marketable Securities $124M Cash & Equivalents $27M* $627M Marketable Securities ($27M) Other $57M Marketable Securities (net) OPERATINGDec 31, 2023 $27M* $788M ($42M) $30M $3M ($1M) $725M $133M Cash & Equivalents Mar 31, 2024 Q 1 2 0 2 4 B U S IN ES S U PD AT E


 
C O PY RI G H T © A B C EL LE RA 14 THANK YOU Q 1 2 0 2 4 B U S IN ES S U PD AT E


 
v3.24.1.u1
Cover
May 07, 2024
Cover [Abstract]  
Document Type 8-K
Entity Registrant Name AbCellera Biologics Inc.
Document Period End Date May 07, 2024
Entity Incorporation, State or Country Code A1
Entity File Number 001-39781
Entity Address, Postal Zip Code V5Y 0A1
Entity Central Index Key 0001703057
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Entity Address, Address Line One 2215 Yukon StreetVancouver, BC
Entity Address, City or Town Vancouver
Entity Address, State or Province BC
City Area Code (604)
Local Phone Number 559-9005
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Title of 12(b) Security Common shares
Trading Symbol ABCL
Security Exchange Name NASDAQ
Entity Emerging Growth Company false

AbCellera Biologics (NASDAQ:ABCL)
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