ABCL AbCellera Biologics Inc

AbCellera (Nasdaq: ABCL) today announced financial results for the third quarter of 2024. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“Through the third quarter we continued to execute on our key priorities of advancing our internal pipeline and building capabilities to support clinical trials activities in 2025 and beyond,” said Carl Hansen, Ph.D., founder and CEO of AbCellera. “Notably, we completed the consolidation into our new headquarters in Vancouver, Canada, which marks a significant milestone towards completing our platform and infrastructure investments.”

Q3 2024 Business Summary

• Expanded existing collaboration with Eli Lilly and Company to discover therapeutic antibodies for programs in immunology, cardiovascular disease, and neuroscience.
• Reported the start of two additional partner-initiated programs with downstreams to reach a cumulative total of 95 partner-initiated program starts with downstreams.
• Maintained a cumulative total of 14 molecules advanced to the clinic.

Key Business Metrics

Cumulative Metrics

 

September 30, 2023

 

September 30, 2024

 

Change %

Partner-initiated program starts with downstreams

 

84

 

95

 

13%

Molecules in the clinic

 

10

 

14

 

40%

AbCellera started discovery on an additional two partner-initiated programs with downstreams to reach a cumulative total of 95 partner-initiated program starts with downstreams in Q3 2024 (up from 84 on September 30, 2023). AbCellera’s partners have advanced a cumulative total of 14 molecules into the clinic (up from 10 on September 30, 2023).

Discussion of Q3 2024 Financial Results

• Revenue – Total revenue was $6.5 million, compared to $6.6 million in Q3 2023. In both periods, the majority of revenues were research fees generated by our partnerships.
• Research & Development (R&D) Expenses – R&D expenses were $41.0 million, compared to $37.9 million in Q3 2023, reflecting underlying continued growth in program execution, platform development, and investments in internal programs.
• Sales & Marketing (S&M) Expenses – S&M expenses were $3.1 million, compared to $3.5 million in Q3 2023.
• General & Administrative (G&A) Expenses – G&A expenses were $19.1 million, compared to $14.4 million in Q3 2023.
• Net Loss – Net loss of $51.1 million, or $(0.17) per share on a basic and diluted basis, compared to net loss of $28.6 million, or $(0.10) per share on a basic and diluted basis in Q3 2023.
• Liquidity – $670.4 million of total cash, cash equivalents, and marketable securities and with approximately $205 million in available non-dilutive government funding to execute on AbCellera's strategy, bringing total available liquidity to over $875 million.

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.

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 September 30,

 

Nine months ended September 30,

 

 

2023

 

2024

 

2023

 

2024

Revenue:

 

 

 

 

 

 

 

 

Research fees

 

$

6,413

 

 

$

6,289

 

 

$

26,812

 

 

$

21,516

 

Licensing revenue

 

 

186

 

 

 

218

 

 

 

784

 

 

 

767

 

Milestone payments

 

 

–

 

 

 

–

 

 

 

1,250

 

 

 

1,500

 

Total revenue

 

 

6,599

 

 

 

6,507

 

 

 

28,846

 

 

 

23,783

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development(1)

 

 

37,917

 

 

 

40,969

 

 

 

127,036

 

 

 

121,183

 

Sales and marketing(1)

 

 

3,468

 

 

 

3,135

 

 

 

11,080

 

 

 

9,635

 

General and administrative(1)

 

 

14,369

 

 

 

19,147

 

 

 

45,025

 

 

 

56,691

 

Depreciation, amortization, and impairment

 

 

5,735

 

 

 

36,919

 

 

 

16,859

 

 

 

78,285

 

Total operating expenses

 

 

61,489

 

 

 

100,170

 

 

 

200,000

 

 

 

265,794

 

Loss from operations

 

 

(54,890

)

 

 

(93,663

)

 

 

(171,154

)

 

 

(242,011

)

Other income:

 

 

 

 

 

 

 

 

Interest income

 

 

(10,740

)

 

 

(9,603

)

 

 

(31,278

)

 

 

(29,805

)

Grants and incentives

 

 

(2,828

)

 

 

(3,491

)

 

 

(10,779

)

 

 

(10,076

)

Other income

 

 

(2,046

)

 

 

(17,937

)

 

 

(3,670

)

 

 

(48,564

)

Total other income

 

 

(15,614

)

 

 

(31,031

)

 

 

(45,727

)

 

 

(88,445

)

Net loss before income tax

 

 

(39,276

)

 

 

(62,632

)

 

 

(125,427

)

 

 

(153,566

)

Income tax recovery

 

 

(10,666

)

 

 

(11,525

)

 

 

(26,179

)

 

 

(24,919

)

Net loss

 

$

(28,610

)

 

$

(51,107

)

 

$

(99,248

)

 

$

(128,647

)

Foreign currency translation adjustment

 

 

439

 

 

 

841

 

 

 

(69

)

 

 

488

 

Comprehensive loss

 

$

(28,171

)

 

$

(50,266

)

 

$

(99,317

)

 

$

(128,159

)

 

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

 

Basic

 

$

(0.10

)

 

$

(0.17

)

 

$

(0.34

)

 

$

(0.44

)

Diluted

 

$

(0.10

)

 

$

(0.17

)

 

$

(0.34

)

 

$

(0.44

)

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

289,496,841

 

 

 

294,851,945

 

 

 

288,750,387

 

 

 

293,930,702

 

Diluted

 

 

289,496,841

 

 

 

294,851,945

 

 

 

288,750,387

 

 

 

293,930,702

 

 

(1) Exclusive of depreciation, amortization, and impairment

AbCellera Biologics Inc.

Condensed Consolidated Balance Sheets

(All figures in U.S. dollars. Amounts are expressed in thousands except share data.)

(Unaudited)

 

 

December 31, 2023

 

September 30, 2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

133,320

 

 

$

126,640

 

Marketable securities

 

627,265

 

 

 

516,499

 

Total cash, cash equivalents, and marketable securities

 

760,585

 

 

 

643,139

 

Accounts and accrued receivable

 

30,590

 

 

 

31,373

 

Restricted cash

 

25,000

 

 

 

25,000

 

Other current assets

 

55,810

 

 

 

43,371

 

Total current assets

 

871,985

 

 

 

742,883

 

Long-term assets:

 

 

 

Property and equipment, net

 

287,696

 

 

 

331,263

 

Intangible assets, net

 

120,425

 

 

 

52,577

 

Goodwill

 

47,806

 

 

 

47,806

 

Investments in equity accounted investees

 

65,938

 

 

 

84,084

 

Other long-term assets

 

94,244

 

 

 

134,215

 

Total long-term assets

 

616,109

 

 

 

649,945

 

Total assets

$

1,488,094

 

 

$

1,392,828

 

Liabilities and shareholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and other current liabilities

$

49,580

 

 

$

53,773

 

Contingent consideration payable

 

50,475

 

 

 

20,217

 

Deferred revenue

 

18,958

 

 

 

5,578

 

Total current liabilities

 

119,013

 

 

 

79,568

 

Long-term liabilities:

 

 

 

Operating lease liability

 

71,222

 

 

 

66,274

 

Deferred revenue

 

8,195

 

 

 

8,100

 

Deferred government contributions

 

95,915

 

 

 

142,046

 

Contingent consideration payable

 

4,913

 

 

 

4,441

 

Deferred tax liability

 

30,612

 

 

 

12,781

 

Other long-term liabilities

 

5,906

 

 

 

1,524

 

Total long-term liabilities

 

216,763

 

 

 

235,166

 

Total liabilities

 

335,776

 

 

 

314,734

 

Commitments and contingencies

 

 

 

Shareholders' equity:

 

 

 

Common shares: no par value, unlimited authorized shares at December 31, 2023 and September 30, 2024: 290,824,970 and 295,157,474 shares issued and outstanding at December 31, 2023 and September 30, 2024, respectively

 

753,199

 

 

 

772,832

 

Additional paid-in capital

 

121,052

 

 

 

155,354

 

Accumulated other comprehensive loss

 

(1,720

)

 

 

(1,232

)

Accumulated earnings

 

279,787

 

 

 

151,140

 

Total shareholders' equity

 

1,152,318

 

 

 

1,078,094

 

Total liabilities and shareholders' equity

$

1,488,094

 

 

$

1,392,828

 

AbCellera Biologics Inc.

Condensed Consolidated Statement of Cash Flows

(Expressed in thousands of U.S. dollars.)

(Unaudited)

 

 

Nine months ended September 30,

 

2023

 

2024

Cash flows from operating activities:

 

 

 

Net loss

$

(99,248

)

 

$

(128,647

)

Cash flows from operating activities:

 

 

 

Depreciation of property and equipment

 

8,874

 

 

 

10,437

 

Amortization and impairment of intangible assets

 

7,985

 

 

 

67,848

 

Amortization of operating lease right-of-use assets

 

4,926

 

 

 

4,813

 

Stock-based compensation

 

47,735

 

 

 

52,355

 

Fair value gain on contingent consideration and investments

 

–

 

 

 

(48,727

)

Deferred income tax and other

 

(6,354

)

 

 

(17,891

)

Changes in operating assets and liabilities:

 

 

 

Research fees and grants receivable

 

(35,495

)

 

 

(54,258

)

Accrued royalties receivable

 

9,273

 

 

 

–

 

Income taxes payable (receivable)

 

28,685

 

 

 

(8,709

)

Accounts payable and accrued liabilities

 

(1,852

)

 

 

4,018

 

Deferred revenue

 

(7,238

)

 

 

(13,474

)

Accrued royalties payable

 

(16,253

)

 

 

–

 

Deferred grant income

 

30,377

 

 

 

30,671

 

Other assets

 

4,319

 

 

 

1,008

 

Net cash used in operating activities

 

(24,266

)

 

 

(100,556

)

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(62,516

)

 

 

(62,766

)

Purchase of marketable securities

 

(744,674

)

 

 

(612,249

)

Proceeds from marketable securities

 

642,913

 

 

 

735,989

 

Receipt of grant funding

 

15,023

 

 

 

29,150

 

Long-term investments and other assets

 

(37,317

)

 

 

13,538

 

Investment in equity accounted investees

 

(10,214

)

 

 

(17,956

)

Net cash provided by (used in) investing activities

 

(196,785

)

 

 

85,706

 

Cash flows from financing activities:

 

 

 

Payment of liability for in-licensing agreement and other

 

(1,049

)

 

 

(552

)

Proceeds from long-term liabilities

 

6,560

 

 

 

7,599

 

Proceeds from exercise of stock options

 

1,080

 

 

 

1,580

 

Net cash provided by financing activities

 

6,591

 

 

 

8,627

 

Effect of exchange rate changes on cash and cash equivalents

 

(479

)

 

 

(457

)

Decrease in cash and cash equivalents

 

(214,939

)

 

 

(6,680

)

Cash and cash equivalents and restricted cash, beginning of period

 

414,651

 

 

 

160,610

 

Cash and cash equivalents and restricted cash, end of period

$

199,712

 

 

$

153,930

 

Restricted cash included in other assets

 

2,290

 

 

 

2,290

 

Total cash, cash equivalents, and restricted cash shown on the balance sheet

$

197,422

 

 

$

151,640

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

Property and equipment in accounts payable

 

12,948

 

 

 

15,989

 

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

 

3,586

 

 

 

2,232

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104711335/en/

Inquiries Media: Kathleen Reid: media@abcellera.com, +1(236)521-6774 Business Development: Murray McCutcheon, Ph.D., partnering@abcellera.com, +1(604)559-9005 Investor Relations: Peter Ahn, ir@abcellera.com, +1(778)729-9116