• Total revenue of $375 million, up from $233 million in 2020, and liquidity of over $720 million
  • Total cumulative program starts of 78, with 26 new starts in the year
  • EPS of $0.56 (basic) and $0.48 (diluted) compared to $0.53 (basic) and $0.45 (diluted) per share in 2020

AbCellera (Nasdaq: ABCL), a technology company with a centralized operating system for next-generation antibody discovery, today announced financial results for full year 2021. All financial information in this press release is reported in U.S. dollars.

“In 2021 we made significant advancements in executing our long-term strategy by growing our portfolio, deepening our platform to unlock new modalities, and expanding our deal structures to add new ways to capture value,” said Carl Hansen, Ph.D., CEO and President of AbCellera. “We move into 2022 with momentum and a strong cash position to continue to grow our business and to make investments that will increase the speed, efficiency, and scalability of our platform.”

2021 Business Highlights

  • Earned $375 million in total revenue, including $335 million in milestones and royalties, of which $138 million is in accounts receivable.
  • Ended the year with over $720 million in cash, equivalents, and marketable securities.
  • Generated $153 million in net earnings, up from $119 million in 2020.
  • Started discovery on 26 programs, bringing the cumulative number of program starts to 78.
  • Achieved a cumulative total of 156 programs under contract with 36 partners.
  • Reached a cumulative total of five molecules in the clinic across oncology, infectious disease, animal health, and immunology, dermatology and gastrointestinal disease.
  • Acquired TetraGenetics to expand capabilities for high-value transmembrane protein targets.
  • Expanded the leadership team with the appointment of Neil Berkley as Chief Business Officer, Neil Aubuchon as Chief Commercial Officer, and appointed Andrew Lo, Ph.D., to the Board of Directors.

Key Business Metrics

 

 

Year Ended December 31,

 

 

Change

 

Cumulative Metrics

 

2020

 

 

2021

 

 

%

 

Number of discovery partners

 

 

27

 

 

 

36

 

 

 

33

%

Programs under contract

 

 

103

 

 

 

156

 

 

 

51

%

Program starts

 

 

52

 

 

 

78

 

 

 

50

%

Programs in the clinic

 

 

1

 

 

 

5

 

 

 

400

%

AbCellera added 53 discovery programs in 2021 to reach a cumulative total of 156 discovery programs as of December 31, 2021 (up 51% from 103 on December 31, 2020), that are either completed, in progress, or under contract with 36 different partners (up from 27 on December 31, 2020). AbCellera started discovery on 26 programs in 2021 to reach a cumulative total of 78 program starts (up from 52 on December 31, 2020). AbCellera’s partners advanced four additional molecules into the clinic in 2021, bringing the cumulative total to five.

Discussion of 2021 Financial Results

 

 

Year Ended December 31,

 

 

Change

 

 

 

2020

 

 

2021

 

 

Amount

 

 

%

 

 

 

(in thousands, except percentages)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research fees

 

$

19,848

 

 

$

19,076

 

 

$

(772

)

 

 

(4

)%

Licensing revenue

 

 

-

 

 

 

20,778

 

 

 

20,778

 

 

N/A

 

Milestone payments

 

 

15,000

 

 

 

8,000

 

 

 

(7,000

)

 

 

(47

)%

Royalty revenue

 

 

198,307

 

 

 

327,349

 

 

 

129,042

 

 

 

65

%

Total revenue

 

$

233,155

 

 

$

375,203

 

 

$

142,048

 

 

 

61

%

  • Revenue – Total revenue was $375.2 million, compared to $233.2 million in 2020, of which $327.3 million is attributable to royalties. The partnership business generated research fees of $19.1 million, compared to $19.8 million in 2020. Licensing revenue was $20.8 million.
  • Research & Development (R&D) Expenses – R&D expenses were $62.1 million, compared to $29.4 million in 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 $6.9 million, compared to $3.8 million in 2020.
  • General & Administrative (G&A) Expenses – G&A expenses were $41.8 million, compared to $11.9 million in 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 Earnings – Net earnings were $153.5 million, or $0.56 per share on a basic and $0.48 per share on a diluted basis, compared to net earnings of $118.9 million, or $0.53 per share on a basic and $0.45 per share on a diluted basis in 2020.
  • Liquidity – $723.0 million of cash, cash equivalents, and marketable securities.

Q4 Highlights and Financial Results

  • Started nine programs.
  • U.S. shipments of bamlanivimab resumed.
  • Added one program under contract with a new, undisclosed partner.

Revenue for the fourth quarter of 2021 was $139.3 million, representing 37% of the total for 2021. $134.5 million was generated in the quarter from royalties on net sales of bamlanivimab and $4.7 million from research fees, representing 41% and 25% of the respective totals for 2021.

Operating expenses totaled $57.8 million in the fourth quarter or 34% of the total for 2021 and include $21.9 million in royalty fees (48% of the total for the year).

Net earnings for the fourth quarter were $59.9 million, 39% of the total for 2021, or $0.21 per share on a basic and $0.19 per share on a diluted basis.

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 Statement of Operations

(Expressed in thousands of U.S. dollars except share and per share data)

(Unaudited)

 

 

Year Ended December 31,

 

 

 

2019

 

 

2020

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Research fees

 

$

11,612

 

 

$

19,848

 

 

$

19,076

 

Licensing revenue

 

 

-

 

 

 

-

 

 

 

20,778

 

Milestone payments

 

 

-

 

 

 

15,000

 

 

 

8,000

 

Royalty revenue

 

 

-

 

 

 

198,307

 

 

 

327,349

 

Total revenue

 

 

11,612

 

 

 

233,155

 

 

 

375,203

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Royalty fees

 

 

-

 

 

 

27,143

 

 

 

45,516

 

Research and development (1)

 

 

10,113

 

 

 

29,393

 

 

 

62,062

 

Sales and marketing(1)

 

 

1,263

 

 

 

3,842

 

 

 

6,913

 

General and administrative(1)

 

 

2,749

 

 

 

11,910

 

 

 

41,848

 

Depreciation and amortization

 

 

1,604

 

 

 

4,836

 

 

 

14,451

 

Total operating expenses

 

 

15,729

 

 

 

77,124

 

 

 

170,790

 

Income (loss) from operations

 

 

(4,117

)

 

 

156,031

 

 

 

204,413

 

Other (income) expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(155

)

 

 

(293

)

 

 

(3,330

)

Interest and other expense

 

 

209

 

 

 

6,511

 

 

 

5,225

 

Foreign exchange (gain) loss

 

 

(186

)

 

 

300

 

 

 

855

 

Grants and incentives

 

 

(1,774

)

 

 

(8,320

)

 

 

(17,486

)

Total other income

 

 

(1,906

)

 

 

(1,802

)

 

 

(14,736

)

Net earnings (loss) before income tax

 

 

(2,211

)

 

 

157,833

 

 

 

219,149

 

Income tax expense

 

 

-

 

 

 

38,915

 

 

 

65,685

 

Net earnings (loss)

 

$

(2,211

)

 

$

118,918

 

 

$

153,464

 

Foreign currency translation adjustment

 

 

-

 

 

 

-

 

 

 

280

 

Comprehensive income (loss)

 

$

(2,211

)

 

$

118,918

 

 

$

153,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share attributable to common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.53

 

 

$

0.56

 

Diluted

 

$

(0.01

)

 

$

0.45

 

 

$

0.48

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

151,327,560

 

 

 

159,195,023

 

 

 

275,763,745

 

Diluted

151,327,560

263,129,765

318,294,236

 

1 Exclusive of depreciation and amortization

AbCellera Biologics Inc.

Condensed Consolidated Balance Sheet

(Expressed in thousands of U.S. dollars except share data)

(Unaudited)

 

 

December 31, 2020

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

594,116

 

 

$

476,142

 

Marketable securities

 

 

-

 

 

 

246,835

 

Total cash, cash equivalents, and marketable securities

 

 

594,116

 

 

 

722,977

 

Accounts and accrued receivable

 

 

213,239

 

 

 

160,576

 

Restricted cash

 

 

-

 

 

 

25,000

 

Other current assets

 

 

5,970

 

 

 

21,247

 

Total current assets

 

 

813,325

 

 

 

929,800

 

Long-term assets:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

17,923

 

 

 

111,616

 

Intangible assets, net

 

 

115,153

 

 

 

148,392

 

Goodwill

 

 

31,500

 

 

 

47,806

 

Investments in and loans to equity accounted investees

 

 

19,247

 

 

 

50,313

 

Other long-term assets

 

 

8,388

 

 

 

30,642

 

Total long-term assets

 

 

192,211

 

 

 

388,769

 

Total assets

 

$

1,005,536

 

 

$

1,318,569

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and other liabilities

 

$

20,195

 

 

$

32,017

 

Current portion of contingent consideration payable

 

 

13,411

 

 

 

22,934

 

Income taxes payable

 

 

36,152

 

 

 

35,683

 

Accrued royalties payable

 

 

27,143

 

 

 

22,506

 

Deferred revenue

 

 

6,589

 

 

 

7,536

 

Total current liabilities

 

 

103,490

 

 

 

120,676

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Operating lease liability

 

 

3,715

 

 

 

36,413

 

Deferred revenue and grant funding

 

 

25,894

 

 

 

60,758

 

Contingent consideration payable

 

 

9,148

 

 

 

35,886

 

Deferred tax liability

 

 

26,161

 

 

 

37,370

 

Other long-term liabilities

 

 

6,620

 

 

 

1,733

 

Total long-term liabilities

 

 

71,538

 

 

 

172,160

 

Total liabilities

 

 

175,028

 

 

 

292,836

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Common shares: no par value, unlimited authorized shares at December 31, 2020 and 2021: 269,497,768 and 283,257,104 shares issued and outstanding at December 31, 2020 and 2021 respectively

 

 

710,387

 

 

 

722,430

 

Additional paid-in capital

 

 

5,919

 

 

 

35,357

 

Accumulated other comprehensive income

 

 

-

 

 

 

280

 

Accumulated earnings

 

 

114,202

 

 

 

267,666

 

Total shareholders' equity

 

 

830,508

 

 

 

1,025,733

 

Total liabilities and shareholders' equity

$

1,005,536

$

1,318,569

AbCellera Biologics Inc.

Condensed Consolidated Statement of Cash Flows

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

 

December 31, 2019

 

 

December 31, 2020

 

 

December 31, 2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

(2,211

)

 

$

118,918

 

 

$

153,464

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

1,604

 

 

 

2,317

 

 

 

4,403

 

Amortization of intangible assets

 

 

-

 

 

 

2,519

 

 

 

10,062

 

Amortization of operating lease right-of-use assets

 

 

243

 

 

 

435

 

 

 

2,785

 

Stock-based compensation

 

 

890

 

 

 

8,397

 

 

 

30,646

 

Deferred tax expense

 

 

-

 

 

 

2,098

 

 

 

(2,018

)

Other

 

 

194

 

 

 

4,707

 

 

 

3,570

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts and accrued research fees receivable

 

 

(1,803

)

 

 

(5,467

)

 

 

(37,386

)

Accrued royalties receivable

 

 

-

 

 

 

(197,553

)

 

 

59,864

 

Income taxes payable

 

 

-

 

 

 

36,412

 

 

 

(13,530

)

Accounts payable and accrued liabilities

 

 

150

 

 

 

6,601

 

 

 

1,400

 

Operating lease liabilities

 

 

2,784

 

 

 

(350

)

 

 

(778

)

Deferred revenue

 

 

(6

)

 

 

21,810

 

 

 

8,624

 

Accrued royalties payable

 

 

-

 

 

 

27,143

 

 

 

(4,637

)

Deferred grant revenue

 

 

-

 

 

 

(6,763

)

 

 

30,718

 

Other operating assets and liabilities

 

 

849

 

 

 

1,466

 

 

 

(2,603

)

Net cash provided by operating activities

 

 

2,694

 

 

 

22,690

 

 

 

244,584

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(3,997

)

 

 

(9,673

)

 

 

(58,452

)

Purchase of intangible assets

 

 

-

 

 

 

(5,000

)

 

 

-

 

Repayment (issuance) of related party loans

 

 

(1,783

)

 

 

1,783

 

 

 

-

 

Purchase of marketable securities

 

 

-

 

 

 

-

 

 

 

(274,710

)

Proceeds from marketable securities

 

 

-

 

 

 

-

 

 

 

27,608

 

Receipt of grant funding

 

 

-

 

 

 

-

 

 

 

32,621

 

Acquisitions, net of cash acquired

 

 

-

 

 

 

(87,643

)

 

 

(11,457

)

Long-term investments and other assets

 

 

-

 

 

 

-

 

 

 

(17,534

)

Investment in and loans to equity accounted investees

 

 

-

 

 

 

(19,247

)

 

 

(30,323

)

Net cash used in investing activities

 

 

(5,780

)

 

 

(119,780

)

 

 

(332,247

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(399

)

 

 

(19,942

)

 

 

(1,823

)

Proceeds from long-term debt

 

 

193

 

 

 

15,490

 

 

 

872

 

Proceeds from convertible debentures

 

 

-

 

 

 

89,990

 

 

 

-

 

Payment of contingent consideration

 

 

-

 

 

 

-

 

 

 

(2,550

)

Payment of liability for in-licensing agreement

 

 

-

 

 

 

-

 

 

 

(5,000

)

Short-term borrowings

 

 

387

 

 

 

(387

)

 

 

-

 

Issuance of common shares pursuant to exercise of stock options and other

 

 

25

 

 

 

1,000

 

 

 

4,615

 

Net proceeds from issuance of common shares

 

 

-

 

 

 

522,840

 

 

 

-

 

Proceeds from issuance of preferred shares - series A1 and A2 financing

 

 

(11

)

 

 

74,662

 

 

 

-

 

Net cash provided by (used in) financing activities

 

 

195

 

 

 

683,653

 

 

 

(3,886

)

Effect of exchange rate changes on cash and cash equivalents

 

 

-

 

 

 

-

 

 

 

(1,425

)

Increase (decrease) in cash and cash equivalents

 

 

(2,891

)

 

 

586,563

 

 

 

(92,974

)

Cash and cash equivalents and restricted cash, beginning of year

 

 

10,444

 

 

 

7,553

 

 

 

594,116

 

Cash and cash equivalents and restricted cash, end of year

 

$

7,553

 

 

$

594,116

 

 

$

501,142

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable

 

 

35

 

 

 

656

 

 

 

5,397

 

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

 

 

2,830

 

 

 

1,679

 

 

 

36,638

 

Purchase of intangible assets in exchange for in-licensing agreement payable

 

 

-

 

 

 

9,060

 

 

 

-

 

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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