AbCellera Biologics Inc. (ABCL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sys ...

Core Viewpoint - AbCellera Biologics experienced a significant stock increase of nearly 6% following the announcement of receiving a no objection letter (NOL) from Health Canada for its investigational drug ABCL575, which targets moderate to severe atopic dermatitis [1][2][4]. Group 1: Regulatory Approval - The receipt of the NOL from Health Canada is a crucial milestone for AbCellera, facilitating the advancement of its clinical program [4]. - The company plans to initiate a phase 1 clinical study of ABCL575 in the third calendar quarter of this year, with the drug administered via injection to trial participants [4]. Group 2: Company Overview - AbCellera is actively engaged in over 20 investigational programs across various indications, indicating a robust pipeline [5]. - Despite the positive news, the Canadian market is smaller compared to the U.S., making this development a relatively minor but still significant step for the company [5].

Financial Data and Key Metrics Changes - The company reported revenue of approximately $4 million for Q1 2025, a decrease from $10 million in the same quarter of 2024, primarily due to a shift in focus towards internal and co-development programs [22][23] - The net loss for the quarter was roughly $46 million, compared to a loss of around $41 million in Q1 2024, resulting in a loss of CAD0.15 per share [24][25] - The company ended the quarter with approximately $630 million in cash and equivalents, along with $180 million in available committed government funding, totaling about $810 million in liquidity [21][27] Business Line Data and Key Metrics Changes - The company maintained a cumulative total of 16 molecules that have reached the clinic, with no new molecules advancing in the quarter [22] - The company initiated work on one partner-initiated program, bringing the cumulative total to 97 programs with downstream participation [21] Market Data and Key Metrics Changes - The market opportunity for ABCL635, targeting vasomotor symptoms associated with menopause, is estimated to exceed $2 billion in annual sales, with approximately 30% of women experiencing moderate to severe symptoms [9][10] Company Strategy and Development Direction - The company is focused on advancing its lead programs, ABCL635 and ABCL575, into clinical trials, with plans to complete the CTA process for both programs [18][19] - The company aims to transition from a platform company to a clinical-stage biotech, with over 20 internal and co-development programs in the pipeline [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the biology and differentiation of ABCL635, highlighting the unmet medical need for non-hormonal treatments for vasomotor symptoms [18] - The company plans to start Phase I studies for ABCL635 in Q3 2025, with key readouts expected in mid-2026 [18] Other Important Information - The company is investing in building clinical manufacturing capabilities, expected to be operational by the end of 2025 [27] - The company has received commitments for funding from the Government of Canada's Strategic Innovation Fund and the Government of British Columbia, which will support its GMP facility and internal pipeline advancement [27] Q&A Session Summary Question: What do you expect this asset needs to see in terms of Phase one data to capture a competitive edge? - Management indicated that they will look for safety data and important biomarker data, which will provide early signs of target engagement and efficacy [30][31] Question: What should we expect to see from the upcoming ABCL575 preclinical data? - Management stated that the preclinical data will include early animal work and PK analysis, with expectations for a superior dosing regimen [35] Question: Given the risk around translatability of NKTR engagement, is there a precedent that gives confidence? - Management noted preclinical data from nonhuman primates provides optimism, but emphasized caution in drug development [37][38] Question: How are you thinking about the next development candidates? - Management is looking for high conviction biology with large unmet medical needs and compelling differentiation, likely focusing on GPCR or ion channel targets [40][41] Question: Can you provide context on the pause of Novorok molecules in the clinic? - Management believes the pause is related to fundraising efforts by Novorok, which is common in the current environment [57] Question: Is there consideration for U.S.-based manufacturing redundancies? - Management confirmed that their current manufacturing facility in Canada supports their clinical trials, and they have not yet considered U.S.-based manufacturing [58][59]

Q1 2025 BUSINESS UPDATE MAY 8, 2025 COPYRIGHT © ABCELLERA DISCLAIMER This presentation 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 presentation other than statements of historical fact are forward-looking statements, including st ...

Financial Performance - Total revenue for Q1 2025 was $4,235,000, a decrease of 57.5% compared to $9,954,000 in Q1 2024[13] - Net loss for Q1 2025 was $45,621,000, compared to a net loss of $40,610,000 in Q1 2024, indicating a 12.4% increase in losses[13] - The company reported a comprehensive loss of $48,241,000 for Q1 2025, compared to a comprehensive loss of $40,706,000 in Q1 2024, representing a 18.5% increase[13] - Operating expenses for Q1 2025 were $66,895,000, up from $64,848,000 in Q1 2024, indicating a rise of 3.2%[79] - Interest income decreased by $2.4 million, or 23%, from $(10.40) million in Q1 2024 to $(8.05) million in Q1 2025, primarily due to lower cash balances and interest yields[93] - The company reported a net loss of $162.9 million for the year ended December 31, 2024, compared to a net loss of $146.4 million for 2023[115] - Accumulated earnings as of December 31, 2024, were $116.9 million, down from $279.8 million in 2023[115] Assets and Liabilities - Total assets decreased from $1,360,553,000 as of December 31, 2024, to $1,344,208,000 as of March 31, 2025, a decline of 1.2%[12] - Total liabilities increased from $304,469,000 to $321,226,000, marking a rise of 5.5%[12] - Shareholders' equity decreased from $1,056,084,000 to $1,022,982,000, a decline of 3.1%[12] - Cash and cash equivalents increased from $156,325,000 at the end of 2024 to $159,266,000 by March 31, 2025, reflecting a growth of 1.2%[12] - Total current assets rose from $751,370,000 to $764,978,000, an increase of 1.8%[12] Research and Development - Research and development expenses increased to $42,496,000 in Q1 2025, up from $39,287,000 in Q1 2024, representing a 5.5% increase[13] - Significant investments are expected in research and development to enhance antibody discovery and development capabilities[75] - The company is focused on developing first-in-class and best-in-class antibody-based medicines for high unmet medical needs[67] - The company has invested significantly in research and development efforts to enhance its technology and platform, but these investments carry inherent risks that may affect operating results[141] - The company has not expensed any amounts related to research and development milestone payments during the three months ended March 31, 2024, or March 31, 2025[51] Government Contributions - The company received a total of CAD $300 million ($222.3 million) in multi-year contributions from the Government of Canada and the Government of British Columbia to develop and manufacture antibody medicines[53] - Government Contribution 1 includes CAD $175.6 million ($125.6 million) for R&D related to COVID-19, with CAD $116.9 million ($88.5 million) repayable based on revenue thresholds[52] - The company has recorded CAD $83.1 million ($60.4 million) in respect of Government Contribution 2 from the Government of Canada as of March 31, 2025[54] - The company has a deferred government contribution of $164.4 million as of March 31, 2025, compared to $157.6 million as of December 31, 2024[57] Clinical Development and Trials - Cumulative total of 16 molecules advanced into the clinic as of March 31, 2025, an increase of 23% from 13 molecules in the previous year[82] - The company plans to start Phase 1 clinical trials in Canada for two AbCellera-led programs in the second half of 2025[73] - The company has initiated a total of 97 partner-initiated programs with downstream participation, reflecting an 8% increase from 90 programs[82] - The company’s ability to generate revenue is dependent on the success of its antibody discovery and development capabilities[129] - The successful development of product candidates is uncertain, with a high failure rate in clinical studies, which could adversely affect business and operating results[177] Market and Regulatory Challenges - The company faces challenges in obtaining adequate reimbursement for its products, which is crucial for market acceptance and revenue generation[192] - The Medicare Modernization Act and the Inflation Reduction Act have introduced pricing pressures and regulatory changes that could impact the pharmaceutical industry[194] - Regulatory approval for product candidates is subject to various factors, including government budget and funding levels, which could delay or prevent timely commercialization[176] - The company may experience delays in patient enrollment for clinical trials, which is critical for timely completion and regulatory approval[168] - Changes in regulatory requirements may necessitate amendments to clinical trial protocols, potentially affecting costs and timelines[162] Liquidity and Future Outlook - The company believes it has sufficient liquidity from existing cash and cash equivalents to meet its working capital needs for at least the next 36 months[123] - Future funding requirements will depend on various factors, including the introduction of new technologies and costs related to litigation[124] - The company anticipates continued losses for the foreseeable future and cannot predict when it may achieve profitability[115] - The company acknowledges that interim, preliminary, or top-line data from clinical trials may change as more patient data become available, which could significantly impact business prospects[173] Miscellaneous - The company is in an ongoing patent infringement litigation against Bruker, with a jury trial scheduled for January 2026[111] - The company has completed the implementation of the consolidated financial accounting module of its new ERP system, which is expected to enhance financial reporting accuracy[107] - The company is currently implementing changes to its internal controls over financial reporting due to the new ERP system[108] - The company does not have any product candidates approved for sale in any jurisdiction, limiting its ability to realize full market potential[186]

Financial Performance - Total revenue for Q1 2025 was $4.2 million, a decrease from $10.0 million in Q1 2024[7] - Net loss for Q1 2025 was $45.6 million, compared to a net loss of $40.6 million in Q1 2024, resulting in a loss per share of $(0.15)[7][16] - Net loss for the three months ended March 31, 2024, was $40,610, compared to a net loss of $45,621 for the same period in 2025[19] Expenses - Research and Development (R&D) expenses increased to $42.5 million in Q1 2025 from $39.3 million in Q1 2024, reflecting a 5.5% growth in investments[7][16] - Sales and Marketing (S&M) expenses decreased to $2.8 million in Q1 2025 from $3.4 million in Q1 2024[7] - General & Administrative (G&A) expenses decreased to $16.2 million in Q1 2025 from $17.4 million in Q1 2024[7] - Cash used in operating activities was $41,708 for the three months ended March 31, 2024, significantly higher than $11,554 in 2025[19] - Stock-based compensation was $17,409 for the three months ended March 31, 2024, down from $14,786 in 2025[19] Liquidity and Cash Flow - The company ended Q1 2025 with over $800 million in available liquidity, including $633 million in cash and cash equivalents[2][7] - Cash and cash equivalents and restricted cash at the end of the period were $150,862 for March 31, 2024, compared to $186,556 for the same date in 2025[19] - Total cash, cash equivalents, and restricted cash shown on the balance sheet was $148,572 for March 31, 2024, versus $184,266 for the same date in 2025[19] - Net cash provided by investing activities was $29,910 for the three months ended March 31, 2024, compared to $7,935 in 2025[19] Operational Highlights - Cumulative partner-initiated program starts with downstreams reached 97 in Q1 2025, an 8% increase from 90 in Q1 2024[4] - The number of molecules that have reached the clinic increased to 16, representing a 23% growth from 13 in Q1 2024[4] - The company anticipates starting Phase 1 clinical trials for ABCL635 and ABCL575 in the second half of 2025[2] - AbCellera is focused on advancing its internal pipeline of first-in-class and best-in-class programs while collaborating on innovative drug development with partners[8] Changes in Financial Metrics - Purchases of property and equipment amounted to $24,140 for the three months ended March 31, 2024, compared to $10,636 in 2025[19] - Proceeds from marketable securities were $306,545 for the three months ended March 31, 2024, compared to $190,027 in 2025[19] - Research fees and grants receivable showed a significant change of $(18,576) for the three months ended March 31, 2024, compared to $(1,133) in 2025[19] - Deferred revenue changed by $(8,017) for the three months ended March 31, 2024, while it increased by $13,313 in 2025[19]

Summary of AbCellera Biologics (ABCL) 2025 Conference Call Company Overview - **Company**: AbCellera Biologics (ABCL) - **Location**: Vancouver, Canada - **Focus**: Therapeutic antibody development - **Public Listing**: Nasdaq since 2020, initial share price at $20, currently trading around $2.5 [4][3] Key Points and Arguments 1. **Biotech Industry Context**: The biotech sector is experiencing significant challenges, with many companies facing volatile market conditions. AbCellera considers itself fortunate compared to others in the industry [4][5]. 2. **Leadership**: The company is led by Carl Hansen, a visionary CEO, who emphasizes the importance of drug development and its impact on human life [5][6]. 3. **Historical Perspective**: The company draws parallels between current biotech advancements and historical moments in physics, suggesting that the industry is at a pivotal point for innovation [7][8][9]. 4. **Drug Development Challenges**: Drug development is described as a Herculean task, with high costs, lengthy timelines, and low success rates. Only a small number of companies have successfully developed sustainable drug pipelines [11][12]. 5. **Company Aspirations**: AbCellera aims to be among the few companies that can develop and sustain a successful drug pipeline, particularly in the Canadian biotech landscape, which lacks major pharmaceutical companies [13][14]. 6. **Therapeutic Focus**: The company is focused on developing therapeutic antibodies, having completed over 100 programs for partners, with 16 molecules reaching phase one clinical trials [15][17]. 7. **COVID-19 Contributions**: AbCellera's COVID-19 antibodies treated over 2.5 million patients, saving numerous lives and hospitalizations [18]. 8. **Pipeline Development**: The company is transitioning to wholly owning its drug candidates, with significant investments in infrastructure, including a GMP manufacturing facility expected to be operational for clinical batches in 2026 [19][20][21]. 9. **Financial Position**: AbCellera has approximately $650 million in cash and $200 million in committed capital from government sources, providing a strong financial foundation for drug development [21]. 10. **Target Selection Criteria**: The company employs a rigorous framework for selecting drug targets, focusing on validated biology, commercial opportunity, differentiation, and clear clinical development plans [22][23]. 11. **Upcoming Clinical Trials**: Two molecules, ABCL-635 and ABCL-575, are set to enter clinical trials, with the first target being disclosed during the earnings call [24][25][26]. 12. **Market Potential**: The total addressable market for ABCL-635 is estimated to exceed $2 billion, indicating potential blockbuster status [27]. 13. **Differentiation Strategy**: For ABCL-575, differentiation is expected based on half-life and dosing frequency compared to competitors [28][29]. Additional Important Content - **Strategic Partnerships**: The company maintains strategic partnerships with major pharmaceutical firms, which have not been negatively impacted by its focus on internal programs [37][39]. - **T Cell Engagement**: AbCellera is developing a portfolio for T cell engagement, which has attracted interest from partners like AbbVie [38]. - **Manufacturing Plans**: The company plans to manufacture its own antibodies, particularly those it has discovered, rather than operating strictly as a contract manufacturer [42]. This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting AbCellera's position within the biotech industry and its future plans for drug development.

Financial Data and Key Metrics Changes - The company reported a revenue of almost $29 million for the year, a decrease from approximately $38 million in 2023, primarily due to a shift towards internal and co-development programs [37] - Research and development expenses were approximately $167 million, down $8 million from the previous year, reflecting a one-time payment of about $32 million made in 2023 [38] - The net loss for the year was roughly $163 million, compared to a loss of about $146 million the previous year, which included non-cash impairment charges for in-process R&D of approximately $47 million [39] Business Line Data and Key Metrics Changes - The company has a cumulative total of 96 partner-initiated programs with downstream participation, with 14 programs still actively led or co-led by the company [30][33] - The company initiated two new partnerships in the first half of 2024 and expanded one existing collaboration, while also reducing new discovery partnership activities [25][9] Market Data and Key Metrics Changes - The company is focusing on the therapeutic areas of oncology, neurology, and immunology, which reflect the broader industry activity [35] - The total addressable market for the lead program ABCL635 is estimated to be at least $2 billion in annual sales, while the atopic dermatitis market for ABCL575 is already over $10 billion [17][20] Company Strategy and Development Direction - The company is transitioning from a platform and partnership model to a clinical-stage biotech, with a focus on building an internal pipeline and reducing new discovery partnerships [7][61] - The strategic focus includes selecting programs based on unmet needs, commercial opportunities, differentiation, and clear development paths [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's liquidity position, with over $800 million available to execute its strategy [10][43] - The company plans to initiate Phase 1 clinical trials for its lead programs in 2025 and expects to complete its transition to a clinical-stage biotech [27][24] Other Important Information - The company has completed its move to a new headquarters and is on track to bring its clinical manufacturing facility online in 2025 [9] - The company has received commitments for funding from the Government of Canada's Strategic Innovation Fund and the government of British Columbia, which will support its GMP facility and internal pipeline advancements [42] Q&A Session Summary Question: What competencies are needed for clinical trials across multiple disease areas? - Management stated that they are building up translational science and clinical development teams to support their first two programs moving into clinical development [47][48] Question: Is there a finite number of candidates under the AbbVie collaboration? - Management confirmed that they are excited about the collaboration and are working on multiple but a small number of targets [54] Question: What is the attrition rate for partner-initiated programs? - Management indicated that the attrition rate is consistent with expectations, with over half of the programs still progressing after being handed back to partners [60] Question: Why reduce the number of partnerships pursued? - Management explained that the transition to a clinical-stage biotech necessitated a focus on internal programs, while still seeking opportunities in TCE collaborations [62] Question: What preparations are being made for the upcoming CTA filings? - Management confirmed that extensive preparations have been made for both programs, with no noteworthy special considerations at this time [83]

Company Performance - AbCellera Biologics Inc. reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and an improvement from a loss of $0.17 per share a year ago, representing an earnings surprise of 26.67% [1] - The company posted revenues of $5.05 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 40.83%, and down from $9.18 million in the same quarter last year [2] - Over the last four quarters, AbCellera has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Outlook - The immediate price movement of AbCellera's stock will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $13.97 million, and for the current fiscal year, it is -$0.71 on revenues of $46.43 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which AbCellera belongs, is currently in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AbCellera's stock performance [5][6]

AbCellera Biologics (ABCL) Q4 2024 Earnings Call February 27, 2025 05:00 PM ET Company Participants Tryn Stimart - Chief Legal Officer, CCO, Compliance Officer, Corporate Secretary & Privacy OfficerDr. Carl Hansen - Chairman, Chief Executive Officer, and PresidentAndrew Booth - CFOSteve Dechert - AVPJacqueline Kisa - Equity Research AssociateMalcolm Hoffman - Senior BioPharma Equity Research Associate Conference Call Participants Stephen Willey - AnalystNone - Analyst Operator Good afternoon and welcome to ...