- Total revenue of $317 million, compared to $203 million in Q1
2021
- Six program starts in the quarter bringing cumulative total to
84, up 56% from Q1 2021
- Net earnings of $0.59 per share on a basic and $0.54 on a
diluted basis compared to $0.43 (basic) and $0.37 (diluted) per
share in Q1 2021
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 2022. All financial information in this press release is
reported in U.S. dollars, unless otherwise indicated.
“We entered 2022 with strong momentum that we leveraged to start
new drug discovery programs and demonstrate the power of our
platform by discovering a panel of CD3 antibodies for use in
precision cancer treatments,” said Carl Hansen, Ph.D., CEO and
President of AbCellera. “With our strong cash position and book of
business, we also continued pursuing deal structures that allow us
to capture more downstream value and expanded an existing
partnership to include the option to co-develop therapeutic
programs.”
Q1 2022 Business Summary
- Earned $317 million in total revenue.
- Generated net earnings of $169 million, compared to $117
million in Q1 2021.
- Added two programs under contract with an existing partner,
resulting in a cumulative total of 158 programs under contract with
36 different partners.
- Started discovery on six programs, bringing the cumulative
number of program starts to 84.
- Confirmed one new molecule advanced into the clinic, bringing
the cumulative total to six.
Key Business Metrics
Cumulative Metrics
March 31, 2021
March 31, 2022
Change %
Number of discovery partners
29
36
24
%
Programs under contract
119
158
33
%
Program starts
54
84
56
%
Molecules in the clinic
1
6
500
%
AbCellera added two discovery programs in Q1 to reach a
cumulative total of 158 discovery programs as of March 31, 2022 (up
from 119 on March 31, 2021), that are either completed, in
progress, or under contract with 36 different partners (up from 29
on March 31, 2021). AbCellera started discovery on an additional
six programs in Q1 to reach a cumulative total of 84 program starts
(up from 54 on March 31, 2021). AbCellera’s partners advanced one
additional molecule into the clinic in Q1 2022, bringing the
cumulative total to six.
Discussion of Q1 2022 Financial Results
- Revenue – Total revenue was $316.6 million, compared to
$202.7 million in Q1 2021. Royalties associated with bamlanivimab
and bebtelovimab were $307.0 million. The partnership business
produced research fees of $9.3 million, compared to $4.0 million in
Q1 2021. Licensing revenue was $0.2 million.
- Research & Development (R&D) Expenses – R&D
expenses were $26.4 million, compared to $12.4 million in Q1 2021,
reflecting continuing investments in the capacity and capabilities
of AbCellera’s discovery and development platform.
- Sales & Marketing (S&M) Expenses – S&M
expenses were $2.4 million, compared to $2.6 million in Q1
2021.
- General & Administrative (G&A) Expenses –
G&A expenses were $14.3 million, compared to $6.4 million in Q1
2021, with the increase driven by investments to support the growth
of the company and non-cash stock-based compensation.
- Net Earnings – Net earnings were $168.6 million, or
$0.59 per share on a basic and $0.54 on a diluted basis compared to
$117.2 million, or $0.43 per share on a basic and $0.37 on a
diluted basis in Q1 2021.
- Liquidity – $786.1 million of cash, cash equivalents,
and marketable securities.
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 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 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 Income and
Comprehensive Income
(All figures in U.S. dollars.
Amounts are expressed in thousands except share and per share
data)
(Unaudited)
Three months ended March
31,
2021
2022
Revenue:
Research fees
$
3,986
$
9,333
Licensing revenue
20,259
231
Milestone payments
7,000
-
Royalty revenue
171,496
307,017
Total revenue
202,741
316,581
Operating expenses:
Royalty fees
20,010
44,637
Research and development(1)
12,352
26,366
Sales and marketing(1)
2,578
2,370
General and administrative(1)
6,422
14,268
Depreciation and amortization
3,305
3,990
Total operating expenses
44,667
91,631
Income from operations
158,074
224,950
Other (income)
Other income
(265
)
(665
)
Grants and incentives
(3,148
)
(5,194
)
Total other (income)
(3,413
)
(5,859
)
Net earnings before income tax
161,487
230,809
Income tax expense
44,266
62,236
Net earnings
$
117,221
$
168,573
Foreign currency translation
adjustment
-
507
Comprehensive income
$
117,221
$
169,080
Net earnings per share attributable to
common shareholders
Basic
$
0.43
$
0.59
Diluted
$
0.37
$
0.54
Weighted-average common shares
outstanding
Basic
269,697,212
283,895,020
Diluted
320,282,747
311,482,017
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, 2021
March 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
476,142
$
545,718
Marketable securities
246,835
240,335
Total cash, cash equivalents, and
marketable securities
722,977
786,053
Accounts and accrued receivable
160,576
334,403
Restricted cash
25,000
25,000
Other current assets
21,247
28,922
Total current assets
929,800
1,174,378
Long-term assets:
Property and equipment, net
111,616
122,049
Intangible assets, net
148,392
145,785
Goodwill
47,806
47,806
Investments in and loans to equity
accounted investees
50,313
58,882
Other long-term assets
30,642
43,389
Total long-term assets
388,769
417,911
Total assets
$
1,318,569
$
1,592,289
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and other liabilities
$
32,017
$
25,717
Current portion of contingent
consideration payable
22,934
27,499
Income taxes payable
35,683
105,648
Accrued royalties payable
22,506
45,364
Deferred revenue
7,536
9,190
Total current liabilities
120,676
213,418
Long-term liabilities:
Operating lease liability
36,413
36,356
Deferred revenue and grant funding
60,758
64,151
Contingent consideration payable
35,886
30,623
Deferred tax liability
37,370
36,804
Other long-term liabilities
1,733
3,430
Total long-term liabilities
172,160
171,364
Total liabilities
292,836
384,782
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited
authorized shares at December 31, 2021 and March 31, 2022:
283,257,104 and 284,521,181 shares issued and outstanding at
December 31, 2021 and March 31, 2022, respectively
722,430
725,755
Additional paid-in capital
35,357
44,726
Accumulated other comprehensive income
280
787
Accumulated earnings
267,666
436,239
Total shareholders' equity
1,025,733
1,207,507
Total liabilities and shareholders'
equity
$
1,318,569
$
1,592,289
AbCellera Biologics
Inc.
Condensed Consolidated
Statement of Cash Flows
(Expressed in thousands of
U.S. dollars)
(Unaudited)
Three months ended March
31,
2021
2022
Cash flows from operating
activities:
Net income
$
117,221
$
168,573
Cash flows from operating activities:
Depreciation of property and equipment
840
1,391
Amortization of intangible assets
2,465
2,606
Amortization of operating lease
right-of-use assets
661
976
Stock-based compensation
5,427
12,291
Other
432
(592
)
Changes in operating assets and
liabilities:
Accounts and accrued research fees
receivable
(30,073
)
(8,751
)
Accrued royalties receivable
26,861
(167,914
)
Income taxes payable
(6,123
)
69,965
Accounts payable and accrued
liabilities
(5,194
)
751
Deferred revenue
6,086
941
Accrued royalties payable
(7,134
)
22,857
Deferred grant revenue
2,468
4,682
Other assets
(4,392
)
(7,557
)
Net cash provided by operating
activities
109,545
100,219
Cash flows from investing
activities:
Purchases of property and equipment
(3,644
)
(14,495
)
Purchase of marketable securities
-
(51,774
)
Proceeds from marketable securities
-
57,294
Receipt of grant funding
-
2,596
Long-term investments and other assets
-
(11,657
)
Investment in and loans to equity
accounted investees
(12,195
)
(8,335
)
Net cash used in investing activities
(15,839
)
(26,371
)
Cash flows from financing
activities:
Repayment of long-term debt and contingent
consideration
(1,716
)
(72
)
Proceeds from long-term debt and issuance
of common shares pursuant to exercise of stock options
173
1,941
Payment of liability for in-licensing
agreement
-
(5,000
)
Net cash provided by (used in) financing
activities
(1,543
)
(3,131
)
Effect of exchange rate changes on cash
and cash equivalents
(484
)
(204
)
Increase in cash and cash equivalents
91,679
70,513
Cash and cash equivalents and restricted
cash, beginning of period
594,116
501,142
Cash and cash equivalents and restricted
cash, end of period
$
685,795
$
571,655
Restricted cash included in other
long-term assets
-
(937
)
Total cash, cash equivalents and
restricted cash shown in the statement of cash flows
$
685,795
$
570,718
Supplemental disclosure of non-cash
investing and financing activities
Property plant and equipment in accounts
payable
423
2,353
Right-of-use assets obtained in exchange
for operating lease obligation
14,188
658
Source: AbCellera Biologics Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510005127/en/
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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