ABCL AbCellera Biologics Inc

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: 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