In the release dated May 13, 2021, the “Program starts,
cumulative” figure for the period ended March 31, 2021 in both the
Key Business Metrics table and the following paragraph should read
54 instead of 52. The resulting percent change from the prior
period (“Change %) in the table should read 15% instead of 11%.
The corrected release reads:
ABCELLERA REPORTS Q1 2021 BUSINESS
RESULTS
- Total revenue of $203 million, up from $5 million in Q1
2020
- Total programs under contract of 119, up 63%
year-over-year
- EPS of $0.43 (basic) and $0.37 (diluted) compared to $0.01 loss
per share in Q1 2020
AbCellera (Nasdaq: ABCL), a technology company with a
centralized operating system for next-generation antibody
discovery, today announced financial results for the first quarter
of 2021.
“Our partnership business continued to thrive in the first
quarter of 2021, expanding our diversified program portfolio
through collaborations with both new and existing partners,” said
Carl Hansen, Ph.D., President and CEO of AbCellera. “Royalty
revenue from our COVID-19 program continues to provide us with
non-dilutive funding, bolstering our strong cash position as we
execute on our long-term growth strategies.”
Q1 2021 Business Highlights
- Earned $203 million in total revenue, including $178 million in
milestones and royalties.
- Generated $117 million in net earnings, up from a $2 million
loss in Q1 2020.
- Expanded partnership business by 16 programs within the
quarter, a 23% increase in the rate of growth from 13 new programs
added in the same period in 2020.
- Achieved cumulative total of 119 programs under contract with
29 partners.
- Bamlanivimab alone and bamlanivimab together with etesevimab
have been authorized under emergency/special use pathways by more
than 15 countries worldwide. In the US, bamlanivimab alone is no
longer authorized for emergency use, and Lilly has transitioned to
exclusively supplying bamlanivimab together with etesevimab to
treat COVID-19 in high-risk patients.
- Identified a second therapeutic antibody for COVID-19,
LY-CoV1404, which advanced into clinical trials in April 2021.
- Appointed Ester Falconer, Ph.D., to Chief Technology
Officer.
Key Business Metrics
Metric
March 31,
2020
March 31,
2021
Change %
Number of discovery partners
24
29
21%
Programs under contract, cumulative
73
119
63%
Program starts, cumulative
47
54
15%
Programs in the clinic
-
1
N/M
As of March 31, 2021, the Company had 119 discovery programs (up
63% from 73 on March 31, 2020) that are either completed, in
progress, or under contract with 29 partners (up from 24 on March
31, 2020). The Company has started discovery on a cumulative total
of 54 of these programs (up from 47 on March 31, 2020).
Discussion of Q1 2021 Financial Results
Three months ended March
31,
Change
2020
2021
Amount
%
(in thousands, except
percentages)
Revenue
Research fees
$
4,657
$
3,986
$
(671
)
-14
%
Licensing revenue
-
20,259
20,259
N/A
Milestone payments
-
7,000
7,000
N/A
Royalty revenue
-
171,496
171,496
N/A
Total revenue
$
4,657
$
202,741
$
198,084
4253
%
- Revenue – Total revenue was $202.7 million, up from $4.7
million in Q1 2020. Sales of bamlanivimab generated earned
royalties of $171.5 million and $7.0 million for first sales in
Europe. Licensing revenue of $20.3 million is a new line on the
income statement and originated from the recently acquired Trianni
humanized rodent platform. The partnership business produced
research fees of $4.0 million, $0.7 million less than in Q1
2020.
- Royalty Fees – Royalty fees to the National Institutes
of Health on bamlanivimab were $20.0 million.
- Research & Development (R&D) Expenses – R&D
expenses were $12.4 million, compared to $4.1 million in Q1 2020,
reflecting continuing strong investments in the capacity and
capabilities of AbCellera’s discovery and development
platform.
- Sales & Marketing (S&M) Expenses – S&M
expenses were $2.6 million, compared to $0.4 million in Q1
2020.
- General & Administrative (G&A) Expenses –
G&A expenses were $6.4 million, compared to $1.7 million in
2020, with the increase driven by investments to support the growth
of the company and operations as a listed company.
- Net Earnings – Net earnings were $117.2 million, or
$0.43 per share and $0.37 per share on a basic and diluted basis,
respectively, compared to a net loss of $2.1 million, or $0.01 per
share on both a basic and diluted basis in Q1 2020.
- Liquidity – $686 million of cash and cash equivalents
and $193 million in accrued accounts 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 Daylight Time
(5:00 p.m. Eastern Daylight 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. To learn more, please visit us at
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.
Programs in the clinic represent the count of unique
programs for which an Investigational New Drug, or IND, New Animal
Drug or Pre-Market Approval, or PMA, application, or equivalents
under other regulatory regimes, has been filed based on an antibody
that was discovered by us. Where the date of such application is
not known to us, the date of the first public announcement of
clinical trials will be used instead 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.
AbCellera Biologics
Inc.
Condensed Consolidated
Statement of Operations
(Unaudited)
(Expressed in thousands of
U.S. dollars except share and per share data)
Three months ended March
31,
2020
2021
Revenue:
Research fees
$
4,657
$
3,986
Licensing revenue
-
20,259
Milestone payments
-
7,000
Royalty revenue
-
171,496
Total revenue
4,657
202,741
Operating expenses:
Royalty fees
-
20,010
Research and development(1)
4,118
12,352
Sales and marketing(1)
437
2,578
General and administrative(1)
1,650
6,422
Depreciation and amortization
574
3,305
Total operating expenses
6,779
44,667
Income (loss) from operations
(2,122
)
158,074
Other (income) expense
Other (income) expense
1,001
(265
)
Grants and incentives
(1,030
)
(3,148
)
Total other income
(29
)
(3,413
)
Net earnings (loss) before income tax
(2,093
)
161,487
Provision for income tax
-
44,266
Net earnings (loss) and comprehensive
income (loss) for the period
$
(2,093
)
$
117,221
Net earnings (loss) per share attributable
to common shareholders
Basic
$
(0.01
)
$
0.43
Diluted
$
(0.01
)
$
0.37
Weighted-average common shares
outstanding
Basic
151,859,924
269,697,212
Diluted
151,859,924
320,282,747
(1) Exclusive of depreciation and
amortization
AbCellera Biologics
Inc.
Condensed Consolidated Balance
Sheet
(Unaudited)
(Expressed in thousands of
U.S. dollars except share data)
December 31, 2020
March 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
594,116
$
685,795
Accounts receivable
903
23,371
Accrued accounts receivable
212,336
193,071
Other current assets
5,970
5,745
Total current assets
813,325
907,982
Long term assets:
Property and equipment, net
17,923
34,618
Intangible assets
115,153
112,688
Goodwill
31,500
31,500
Investments in and loans to equity
accounted investees
19,247
32,187
Other long-term assets
8,388
9,548
Total long-term assets
192,211
220,541
Total assets
$
1,005,536
$
1,128,523
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and other liabilities
$
20,195
$
13,287
Current portion of contingent
consideration payable
13,411
13,762
Income taxes payable
36,152
30,030
Accrued royalties payable
27,143
20,010
Deferred revenue
6,589
11,306
Total current liabilities
103,490
88,395
Long-term liabilities:
Operating lease liability
3,715
16,973
Deferred revenue and grant funding
25,894
28,730
Contingent consideration payable
9,148
9,378
Deferred tax liability
26,161
26,992
Other long-term liabilities
6,620
931
Total long-term liabilities
71,538
83,004
Total liabilities
175,028
171,399
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited
authorized shares at December 31, 2020 and March 31, 2021:
269,497,768 and 270,925,930 shares issued and outstanding at
December 31, 2020 and March 31, 2021 respectively
710,387
711,139
Additional paid-in capital
5,919
14,562
Accumulated earnings
114,202
231,423
Total shareholders' equity
830,508
957,124
Total liabilities and shareholders'
equity
$
1,005,536
$
1,128,523
AbCellera Biologics
Inc.
Condensed Consolidated
Statement of Cash Flows
(Unaudited)
(Expressed in thousands of
U.S. dollars)
Three months ended March
31,
2020
2021
Cash flows from operating
activities:
Net income (loss)
$
(2,093
)
$
117,221
Cash flows from operating activities:
Depreciation of property and equipment
415
840
Amortization of intangible assets
158
2,465
Amortization of operating lease
right-of-use-assets
73
661
Stock-based compensation
1,237
5,427
Deferred tax expense
-
623
Other
(28
)
(191
)
Changes in operating assets and
liabilities:
Accounts and accrued research fees
receivable
(26,611
)
(30,073
)
Accrued royalties receivable
-
26,861
Income taxes payable
-
(6,123
)
Accounts payable and accrued
liabilities
(156
)
(5,194
)
Deferred revenue
27,676
6,086
Accrued royalties payable
-
(7,134
)
Other assets and liabilities
(1,435
)
(1,924
)
Net cash (used in) provided by operating
activities
(764
)
109,545
Cash flows from investing
activities:
Purchases of property and equipment
(583
)
(3,644
)
Purchase of intangible assets
(5,000
)
-
Investment in equity investees
-
(12,195
)
Net cash used in investing activities
(5,583
)
(15,839
)
Cash flows from financing
activities:
Repayment of long-term debt
(2,033
)
(1,716
)
Proceeds from long-term debt
16,171
-
Payment of deferred financing fees
(799
)
-
Short-term borrowings
(387
)
-
Issuance of common shares pursuant to
exercise of stock options
124
173
Proceeds from issuance of preferred shares
- series A2 financing
74,662
-
Net cash provided by (used in) financing
activities
87,738
(1,543
)
Effect of exchange rate changes on cash
and cash equivalents
(484
)
Increase in cash and cash equivalents
81,391
91,679
Cash and cash equivalents, beginning of
period
7,553
594,116
Cash and cash equivalents, end of
period
$
88,944
$
685,795
Supplemental disclosure of non-cash
investing and financing activities
Property plant and equipment in accounts
payable
95
423
Right-of-use assets obtained in exchange
for operating lease obligation
741
14,188
Purchase of intangible assets in exchange
for in-licensing agreement payable
9,060
-
Source: AbCellera Biologics Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210513005800/en/
Inquiries Media: Jessica Yingling, Ph.D.;
media@abcellera.com, +1(236)521-6774 Business Development: Kevin
Heyries, Ph.D.; bd@abcellera.com, +1(604)559-9005 Investor
Relations: Melanie Solomon; ir@abcellera.com, +1(778)729-9116
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