AbCellera Reports Q1 2024 Business Results

VANCOUVER, British Columbia--()--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.

Key Business Metrics

Cumulative Metrics

 

March 31, 2023

 

March 31, 2024

 

Change %

Partner-initiated program starts with downstreams

 

75

 

90

 

20

%

Molecules in the clinic

 

9

 

13

44

%

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:

 

 

 

Research fees

$

10,570

 

 

$

9,774

 

Licensing revenue

 

372

 

 

 

180

 

Milestone payments

 

1,250

 

 

 

-

 

Total revenue

 

12,192

 

 

 

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 amortization

 

5,514

 

 

 

4,844

 

Total operating expenses

 

77,066

 

 

 

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

 

 

 

Basic

 

287,767,136

 

 

 

292,723,901

 

Diluted

 

287,767,136

 

 

 

292,723,901

 

(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:

 

 

 

Cash and cash equivalents

$

133,320

 

 

$

123,572

 

Marketable securities

 

627,265

 

 

 

574,451

 

Total cash, cash equivalents, and marketable securities

 

760,585

 

 

 

698,023

 

Accounts and accrued receivable

 

30,590

 

 

 

34,419

 

Restricted cash

 

25,000

 

 

 

25,000

 

Other current assets

 

55,810

 

 

 

56,506

 

Total current assets

 

871,985

 

 

 

813,948

 

Long-term assets:

 

 

 

Property and equipment, net

 

287,696

 

 

 

306,081

 

Intangible assets, net

 

120,425

 

 

 

118,736

 

Goodwill

 

47,806

 

 

 

47,806

 

Investments in equity accounted investees

 

65,938

 

 

 

71,592

 

Other long-term assets

 

94,244

 

 

 

104,933

 

Total long-term assets

 

616,109

 

 

 

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 payable

 

50,475

 

 

 

51,431

 

Deferred revenue

 

18,958

 

 

 

10,565

 

Total current liabilities

 

119,013

 

 

 

104,883

 

Long-term liabilities:

 

 

 

Operating lease liability

 

71,222

 

 

 

68,079

 

Deferred revenue

 

8,195

 

 

 

8,570

 

Deferred government contributions

 

95,915

 

 

 

110,579

 

Contingent consideration payable

 

4,913

 

 

 

5,063

 

Deferred tax liability

 

30,612

 

 

 

30,274

 

Other long-term liabilities

 

5,906

 

 

 

5,735

 

Total long-term liabilities

 

216,763

 

 

 

228,300

 

Total liabilities

 

335,776

 

 

 

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, respectively

 

753,199

 

 

 

764,562

 

Additional paid-in capital

 

121,052

 

 

 

127,990

 

Accumulated other comprehensive loss

 

(1,720

)

 

 

(1,816

)

Accumulated earnings

 

279,787

 

 

 

239,177

 

Total shareholders' equity

 

1,152,318

 

 

 

1,129,913

Total liabilities and shareholders' equity

$

1,488,094

 

 

$

1,463,096

 

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:

 

 

 

Depreciation of property and equipment

 

2,858

 

 

 

3,155

 

Amortization of intangible assets

 

2,656

 

 

 

1,689

 

Amortization of operating lease right-of-use assets

 

1,606

 

 

 

1,922

 

Stock-based compensation

 

15,474

 

 

 

17,409

 

Other

 

(3,634

)

 

 

1,707

 

Changes in operating assets and liabilities:

 

 

 

Research fees and grants receivable

 

7,915

 

 

 

(18,576

)

Accrued royalties receivable

 

9,260

 

 

 

 

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 income

 

4,525

 

 

 

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 securities

 

262,638

 

 

 

306,545

 

Receipt of grant funding

 

2,693

 

 

 

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 options

 

490

 

 

 

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 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

 

Right-of-use assets obtained in exchange for operating lease obligation

 

2,124

 

 

 

107

 

 

Contacts

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

Release Summary

AbCellera Reports Q1 2024 Business Results

$Cashtags

Contacts

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