- Total revenue of $6 million, compared to $9 million in Q3
2020
- Nine program starts in the quarter bringing cumulative total to
69, up 35% from Q3 2020
- Net loss of ($0.08) per share (basic and diluted) compared to a
net loss of ($0.02) per share (basic and diluted) in Q3 2020
AbCellera (Nasdaq: ABCL), a technology company with a
centralized operating system for next-generation antibody
discovery, today announced financial results for the third quarter
of 2021. All financial information in this press release is
reported in U.S. dollars, unless otherwise indicated.
“We continue to execute on our long-term business strategy and
have achieved another quarter of strong business development and
growth in the key metric of program starts,” said Carl Hansen,
Ph.D., CEO and President of AbCellera. “Our focus remains on the
following top priorities: execution of our partnership business,
forward integration of the platform to support all antibody drug
discovery activities for the submission of an Investigational New
Drug application, and investments in data science to increase the
speed and scalability of our tech stack.”
Q3 2021 Business Summary
- Earned $5.5 million in total revenue.
- Incurred net loss of $21.4 million, compared to a net loss of
$2.7 million in Q3 2020.
- Added 17 programs under contract and two new partners,
resulting in a cumulative total of 155 programs under contract with
35 different partners.
- Started discovery on nine programs, bringing the cumulative
number of program starts to 69.
- Confirmed one new molecule advanced into the clinic, bringing
the cumulative total to five.
- Acquired TetraGenetics to expand capabilities for high-value
transmembrane protein targets.
Key Business Metrics
Metric
September 30, 2020
September 30, 2021
Change %
Number of discovery partners
26
35
35
%
Programs under contract, cumulative
94
155
65
%
Program starts, cumulative
51
69
35
%
Molecules in the clinic
1
5
400
%
AbCellera added 17 discovery programs in Q3 to reach a
cumulative total of 155 discovery programs as of September 30, 2021
(up 65% from 94 on September 30, 2020), that are either completed,
in progress, or under contract with 35 different partners (up from
26 on September 30, 2020). AbCellera started discovery on an
additional nine programs in Q3 to reach a cumulative total of 69
program starts (up from 51 on September 30, 2020). AbCellera's
partners advanced one additional molecule into the clinic in Q3
2021, bringing the cumulative total to five.
Discussion of Q3 2021 Financial Results
(expressed in
thousands)
Three months ended
September 30,
Nine months ended
September 30,
2020
2021
2020
2021
Revenue:
Research fees
$
4,362
$
5,128
$
17,247
$
14,330
Licensing revenue
-
190
-
20,692
Milestone payments
5,000
-
8,000
8,000
Royalty revenue
-
190
-
192,850
Total revenue
$
9,362
$
5,508
$
25,247
$
235,872
- Revenue – Total revenue was $5.5 million, compared to
$9.4 million in Q3 2020, which is attributable to the reduction of
milestone payments associated with COVID-19 treatments. Royalties
associated with bamlanivimab were $0.2 million due to a temporary
pause in usage until September 2, 2021 by the Assistant Secretary
for Preparedness and Response and the Food and Drug Administration.
Shipments from existing U.S. supply then resumed on a weekly basis,
and subsequent to the end of the quarter, Eli Lilly reported that
the U.S. government has ordered 614,000 additional doses of
bamlanivimab with etesevimab to be delivered by January 31, 2022.
The partnership business produced research fees of $5.1 million,
compared to $4.4 million in Q3 2020. Licensing revenue was $0.2
million.
- Research & Development (R&D) Expenses – R&D
expenses were $17.5 million, compared to $7.5 million in Q3 2020,
reflecting continuing investments in the capacity and capabilities
of AbCellera’s discovery and development platform.
- Sales & Marketing (S&M) Expenses – S&M
expenses were $1.2 million, compared to $0.6 million in Q3
2020.
- General & Administrative (G&A) Expenses –
G&A expenses were $11.3 million, compared to $3.0 million in Q3
2020, with the increase driven primarily by investments to support
the growth of the company, non-cash stock-based compensation in
line with publicly listed companies, and protecting intellectual
property.
- Net Loss – Net loss was $21.4 million, or ($0.08) per
share on both a basic and diluted basis compared to a net loss of
$2.7 million, or ($0.02) per share on a basic and diluted basis, in
Q3 2020.
- Liquidity – $753.5 million of cash, cash equivalents,
and marketable securities and $43.6 million in accounts and accrued
receivable.
Conference Call and Webcast
AbCellera will host a conference call and live webcast to
discuss these results today at 2:00 p.m. Pacific Standard Time
(5:00 p.m. Eastern Standard 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 is a technology company that searches, decodes, and
analyzes natural immune systems to find antibodies that its
partners can develop into drugs to prevent and treat disease.
AbCellera partners with drug developers of all sizes, from large
pharmaceutical to small biotechnology companies, empowering them to
move quickly, reduce costs, and tackle the toughest problems in
drug development. 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. For example, as our business matures and to
the extent programs are discontinued, we anticipate updating these
metrics to reflect such changes.
Number of discovery partners represents the unique number
of partners with whom we have executed partnership contracts. We
view this metric as an indication of the competitiveness of our
technology stack and our current level of market penetration. The
metric also relates to our opportunities to secure programs under
contract.
Programs under contract represent the number of antibody
development programs that are under contract for delivery of
discovery research activities. A program under contract is counted
when a contract is executed with a partner under which we commit to
discover antibodies against one selected target. A target is any
relevant antigen for which a partner seeks our support in
developing binding antibodies. We view this metric as an indication
of commercial success and technological competitiveness. It further
relates to revenue from technology access fees. The cumulative
number of programs under contract with downstream participation is
related to our ability to generate future revenue from milestone
payments and royalties.
Program starts represent the number of unique programs
under contract 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 our
operational capacity to execute on programs under contract. It is
also an indication of the selection and initiation of discovery
projects by our partners and the resulting near-term potential to
earn research fees. Cumulatively, program starts with downstream
participation indicate our total opportunities to earn downstream
revenue from milestone fees and royalties 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
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 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 Income (Loss) and Comprehensive Income
(Loss) (All figures in U.S. dollars. Amounts are expressed in
thousands except share and per share data) (Unaudited)
Three months ended September
30,
Nine months ended September
30,
2020
2021
2020
2021
Revenue:
Research fees
$
4,362
$
5,128
$
17,247
$
14,330
Licensing revenue
-
190
-
20,692
Milestone payments
5,000
-
8,000
8,000
Royalty revenue
-
190
-
192,850
Total revenue
9,362
5,508
25,247
235,872
Operating expenses:
Royalty fees
-
-
-
23,622
Research and development(1)
7,495
17,450
20,757
44,853
Sales and marketing(1)
626
1,217
1,610
5,086
General and administrative(1)
2,968
11,271
6,116
28,958
Depreciation and amortization
41
3,666
1,508
10,493
Total operating expenses
11,130
33,604
29,991
113,012
Income (loss) from operations
(1,768
)
(28,096
)
(4,744
)
122,860
Other (income) expense
Other (income) expense
2,262
1,256
3,556
595
Grants and incentives
(1,337
)
(4,380
)
(10,217
)
(12,174
)
Total other (income) expense
925
(3,124
)
(6,661
)
(11,579
)
Net earnings (loss) before income tax
(2,693
)
(24,972
)
1,917
134,439
Income tax (recovery)
-
(3,592
)
-
40,923
Net earnings (loss)
$
(2,693
)
$
(21,380
)
$
1,917
$
93,516
Foreign currency translation
adjustment
-
(1,508
)
-
644
Comprehensive income (loss)
$
(2,693
)
$
(22,888
)
$
1,917
$
94,160
Net earnings (loss) per share attributable
to common shareholders
Basic
$
(0.02
)
$
(0.08
)
$
0.01
$
0.34
Diluted
$
(0.02
)
$
(0.08
)
$
0.01
$
0.29
Weighted-average common shares
outstanding
Basic
153,049,739
278,933,760
152,413,300
273,642,542
Diluted
153,049,739
278,933,760
237,723,530
323,323,053
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, 2020
September 30, 2021
Assets
Current assets:
Cash and cash equivalents
$
594,116
$
517,694
Marketable securities
-
235,785
Total cash, cash equivalents, and
marketable securities
594,116
753,479
Accounts and accrued receivable
213,239
43,633
Other current assets
5,970
6,635
Total current assets
813,325
803,747
Long term assets:
Property and equipment, net
17,923
91,584
Intangible assets
115,153
148,821
Goodwill
31,500
49,457
Investments in and loans to equity
accounted investees
19,247
47,507
Other long-term assets
8,388
31,616
Total long-term assets
192,211
368,985
Total assets
$
1,005,536
$
1,172,732
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and other liabilities
$
20,195
$
24,072
Current portion of contingent
consideration payable
13,411
12,122
Income taxes payable
36,152
6,590
Accrued royalties payable
27,143
595
Deferred revenue
6,589
6,170
Total current liabilities
103,490
49,549
Long-term liabilities:
Operating lease liability
3,715
27,264
Deferred revenue and grant funding
25,894
59,682
Contingent consideration payable
9,148
44,948
Deferred tax liability
26,161
36,197
Other long-term liabilities
6,620
1,695
Total long-term liabilities
71,538
169,786
Total liabilities
175,028
219,335
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited
authorized shares at December 31, 2020 and September 30, 2021:
269,497,768 and 281,151,877 shares issued and outstanding at
December 31, 2020 and September 30, 2021 respectively
710,387
718,088
Additional paid-in capital
5,919
26,945
Accumulated other comprehensive income
-
644
Accumulated earnings
114,202
207,720
Total shareholders' equity
830,508
953,397
Total liabilities and shareholders'
equity
$
1,005,536
$
1,172,732
AbCellera Biologics Inc. Condensed
Consolidated Statement of Cash Flows (Expressed in thousands of
U.S. dollars) (Unaudited)
Nine months ended September
30,
2020
2021
Cash flows from operating
activities:
Net income
$
1,917
$
93,516
Cash flows from operating activities:
Depreciation of property and equipment
1,507
3,060
Amortization of intangible assets
821
7,432
Amortization of operating lease
right-of-use assets
335
1,895
Stock-based compensation
3,775
21,608
Deferred tax expense
-
(3,267
)
Other
440
888
Changes in operating assets and
liabilities:
Accounts and accrued research fees
receivable
(16,992
)
(34,329
)
Accrued royalties receivable
-
194,327
Income taxes payable
-
(29,563
)
Accounts payable and accrued
liabilities
2,890
(313
)
Deferred revenue
22,431
9,051
Accrued royalties payable
-
(26,548
)
Operating lease liabilities
594
(327
)
Deferred grant income
4,592
27,324
Other assets
(898
)
(3,458
)
Net cash provided by operating
activities
21,412
261,296
Cash flows from investing
activities:
Purchases of property and equipment
(8,171
)
(49,022
)
Purchase of intangible assets
(5,000
)
-
Repayment of loan to related parties
1,573
-
Purchase of marketable securities
-
(245,314
)
Proceeds from marketable securities
-
9,527
Receipt of grant funding
-
9,807
Acquisitions
-
(11,457
)
Long-term investments and deposits
-
(17,534
)
Investment in and loans to equity
accounted investees
-
(27,105
)
Net cash used in investing activities
(11,598
)
(331,098
)
Cash flows from financing
activities:
Repayment of long-term debt
(16,971
)
(1,823
)
Payment of contingent consideration
-
(2,550
)
Proceeds from long-term debt
15,516
872
Payment of liability for in-licensing
agreement
-
(5,000
)
Short-term borrowings
(387
)
-
Issuance of common shares pursuant to
exercise of stock options
893
2,781
Proceeds from issuance of preferred shares
- series A2 financing
74,663
-
Net cash provided by (used in) financing
activities
73,714
(5,720
)
Effect of exchange rate changes on cash
and cash equivalents
-
(900
)
Increase (decrease) in cash and cash
equivalents
83,528
(76,422
)
Cash and cash equivalents, beginning of
period
7,553
594,116
Cash and cash equivalents, end of
period
$
91,081
$
517,694
Supplemental disclosure of non-cash
investing and financing activities
Right-of-use assets obtained in exchange
for operating lease obligation
567
26,976
Purchase of intangible assets in exchange
for in-licensing agreement payable
9,060
-
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211109006423/en/
Inquiries Media: Jessica Yingling, Ph.D.;
media@abcellera.com, +1(236) 521-6774 Business Development: Neil
Berkley; bd@abcellera.com, +1(604) 559-9005 Investor Relations:
Melanie Solomon; ir@abcellera.com, +1(778) 729-9116
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