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]

Investment and Financials - The company has invested over $600 million in building its infrastructure and expanding capabilities since its incorporation in 2012[33]. - The company has generated over $100 million in cumulative earnings since 2012 and has approximately $840 million in available liquidity as of December 31, 2024[33]. - The company secured CAD $300 million ($222.3 million) in non-dilutive financing in May 2023 to build new capabilities for developing and manufacturing antibody medicines[57]. - The company expects to incur losses and negative operating cash flow in the near-to-medium term due to ongoing investments in its pipeline[112]. - The company has a long-term capital allocation strategy, focusing on building intellectual capital and infrastructure to support future drug development[113]. Research and Development - Approximately 40% of the total research and development spend in 2024 is allocated to platform development, enhancing capabilities for future drug discovery[56]. - The company is advancing a pipeline of more than 20 internal discovery programs across multiple modalities and indications[26]. - The company aims to reduce the time from target nomination to IND filing to two years or less through ongoing investments in integrated target-to-clinic capabilities[154]. - The company has developed its T-cell-engager platform and initiated internal programs targeting eight important tumor targets, alongside 10 internal programs focused on GPCRs and ion channels[139]. - The company’s investments in technology development are aimed at increasing the probability of success for its drug development programs, particularly in high unmet medical need areas[151]. Clinical Trials and Drug Development - The company expects to submit Clinical Trial Applications for its internal programs ABCL635 and ABCL575 in Q2 2025[26]. - ABCL635, targeting metabolic and endocrine conditions, is anticipated to enter clinical trial authorization (CTA) submission in Q2 2025, with a potential market exceeding $2 billion in annual sales[62]. - ABCL575, a monoclonal antibody for atopic dermatitis, is also expected to submit a CTA in Q2 2025, leveraging a clinically validated mechanism to modulate inflammation[63][64]. - The company advanced two drug programs, ABCL635 and ABCL575, into IND/CTA-enabling studies in 2023, with plans for clinical trial authorizations in 2025[61]. - The company plans to start its first clinical trial in 2025, which will require compliance with numerous regulations in the life sciences sector[217]. Partnerships and Collaborations - The company has established multiple partnership agreements with pharmaceutical and biotechnology companies, including Eli Lilly and Company for multi-target, multi-year projects in immunology and neuroscience, announced on July 31, 2024[93]. - Total potential milestone payments from partnership agreements amount to $8.69 billion, with $5.51 billion expected from commercial milestones[97]. - The company has initiated 96 partner-initiated programs as of December 31, 2024, which could yield milestone and royalty payments[92]. - The company has successfully completed the agreed scope of work for 76 out of 96 partner-initiated programs, with 51 programs actively progressing[143]. - The company earned over $950 million in combined royalties from commercial sales of COVID-19 antibody assets developed in partnership with Lilly from 2020 to 2022[138]. Market and Competitive Landscape - The biotechnology sector is projected to be a significant growth opportunity, with global therapeutic antibody sales nearing $300 billion in 2023 and expected to exceed $450 billion by 2028, reflecting a CAGR of over 10%[80]. - The therapeutic antibody market is characterized by a significant number of blockbuster drugs, with around 50 achieving annual sales exceeding $1 billion in 2023[80]. - Over 50% of new-drug approvals in the U.S. from 2011 to 2021 originated from smaller biotechnology companies with annual revenues below $500 million, indicating a competitive landscape[101]. - The company faces competition from various sources, including large pharmaceutical companies and specialized biotechnology firms, in the antibody therapeutics market[106]. - The company aims to unlock new market segments and improve discovery speed, estimating that accelerating the path to market by one year could enhance the value of an average approved treatment by over $100 million[88]. Workforce and Employee Engagement - The voluntary turnover rate for the company was 4.7% in 2024, indicating strong employee engagement and retention[77]. - The company employs a workforce comprising approximately 62% scientists, 14% engineers and data scientists, and 24% business professionals, with over 54% holding advanced degrees[75]. Intellectual Property and Patents - The company has developed an expansive patent portfolio with over 100 issued or allowed patents and over 70 pending applications worldwide as of December 31, 2024[172]. - The company utilizes various forms of intellectual property protection, including trademarks, copyrights, and trade secrets, to safeguard its proprietary rights[173]. - The company acquired Trianni, including all existing intellectual property and issued patents related to the Trianni mouse, with patents expected to expire in July 2031[196][197]. - The Trianni intellectual property portfolio includes 14 issued patents in various jurisdictions, focusing on transgenic animals and methods of use[197]. - The company has a patent family directed to enhanced production of immunoglobulins, which includes six issued patents and four pending applications, with expiration expected in February 2037[198]. Regulatory Compliance - The company is subject to various regulations governing clinical studies and commercial sales, impacting its ability to develop and sell therapeutic products[219]. - The company is subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, which could impact its operations and interactions in the healthcare sector[222]. - The company maintains compliance with environmental laws, which govern the handling and disposal of hazardous substances used in its operations[221].

Financial Performance - Total revenue for FY 2024 was $28.8 million, a decrease of 24.2% from $38.0 million in 2023[8] - Net loss for FY 2024 was $162.9 million, compared to a net loss of $146.4 million in 2023, representing a 11.1% increase in losses[4] - Revenue for Q4 2024 was $5.1 million, representing 18% of total revenue for the year[8] - The net loss for Q4 2024 was $34.2 million, or $(0.12) per share[9] - Net earnings for December 31, 2023, showed a loss of $146,398, compared to a profit of $158,519 in 2022, indicating a significant decline in profitability[24] Expenses - Research and Development (R&D) expenses for FY 2024 were $167.3 million, down 4.3% from $175.7 million in 2023[8] - General & Administrative (G&A) expenses increased to $72.7 million in FY 2024, up 18.0% from $61.0 million in 2023[8] - The company reported a significant increase in amortization and impairment of intangible assets, rising to $78,312 in 2024 from $11,637 in 2023[24] - Stock-based compensation increased to $64,183 in 2023, up from $49,481 in 2022, reflecting a rise of approximately 30%[24] Cash Flow and Liquidity - The company ended FY 2024 with approximately $840 million in total available liquidity, including $652.9 million in cash and cash equivalents[8] - Cash flows from operating activities decreased to $(43,877) for the year ending December 31, 2023, down from $277,360 in 2022[24] - Total cash and cash equivalents at the end of the period decreased to $160,610 in 2023 from $414,650 in 2022, reflecting a decline of approximately 61%[24] - Cash flows from investing activities showed a net outflow of $(221,108) in 2023, compared to $(352,625) in 2022, indicating a reduction in investment spending[24] - The total cash, cash equivalents, and restricted cash shown on the balance sheet decreased to $158,320 in 2023 from $411,535 in 2022, a decline of approximately 62%[24] Clinical Development - Cumulative partner-initiated program starts with downstreams increased to 96 in 2024, up 10% from 87 in 2023[5] - The number of molecules in the clinic rose to 16, reflecting a 23% increase from 13 in 2023[5] - AbCellera plans to initiate Phase 1 clinical trials for its first two programs, ABCL635 and ABCL575, in 2025[2] Other Financial Metrics - The company experienced a decrease in net cash provided by financing activities, which rose to $10,356 in 2023 from $(1,628) in 2022[24] - Research fee and grant receivable increased significantly, with a decline of $(45,933) in 2023 compared to $(22,715) in 2022[24] - The company reported a cash outflow of $(763,982) for the purchase of marketable securities in 2022, which increased to $(1,021,510) in 2023[24]

Company Overview - AbCellera Biologics Inc. is highlighted as a unique developmental concern, marking the first analysis since mid-February of the current year [2]. Investment Insights - The Biotech Forum has seen significant discussions around profitable buy-write or covered call strategies on selected biotech stocks, indicating a focus on trading ideas within the biotech sector [3]. Analyst Position - The analyst has disclosed a beneficial long position in AbCellera Biologics shares, indicating personal investment interest and confidence in the company's potential [4].

Financial Data and Key Metrics - Revenue for Q3 2024 was approximately $7 million, driven by research fees from partnered programs, consistent with Q3 2023 [12] - Research and development expenses increased to $41 million, up $3 million from the previous year, due to ongoing program execution and internal pipeline investments [12] - Sales and marketing expenses decreased slightly to $3 million, while general and administrative expenses rose to $19 million, primarily due to intellectual property defense costs [13] - Net loss for the quarter was $51 million, including a non-cash impairment charge of $32 million related to discontinued development of next-generation transgenic mice [14] - Cash and equivalents stood at $670 million, with an additional $210 million in available government funding, bringing total liquidity to $880 million [18] Business Line Data and Key Metrics - The company initiated two new partner programs in Q3 2024, bringing the cumulative total to 95 programs with downstream participation [11] - ABD-147 received orphan drug designation from the FDA, highlighting the potential for future milestone fees and royalty payments [11] - The company expects research fee revenue to decline as it shifts focus to internal and co-development programs [12] Market Data and Key Metrics - The company completed the move to its new headquarters in Vancouver and is on track to bring its GMP manufacturing facility online in 2025 [8] - The company expanded its partnership with Eli Lilly, focusing on co-development collaborations with shared ownership of resulting assets [9] Company Strategy and Industry Competition - The company is transitioning from a platform company to a clinical-stage biotech, with a focus on advancing internal programs and building platform capabilities [6] - The first two pipeline programs, ABCL635 and ABCL575, are on track for CTA filings in Q2 2025, with a broad portfolio of discovery-stage programs in development [7] - The company is prioritizing co-development collaborations and leveraging its TCE platform, with updated data to be presented at CITSE [9] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's transition to a clinical-stage company, with a focus on delivering value to patients and shareholders [10] - The company anticipates further investments in its translational and development teams as the pipeline advances [8] - Management highlighted the strong liquidity position, with sufficient funds to support operations and investments for the next three years [18] Other Important Information - The company reported a non-cash impairment charge of $32 million related to the discontinuation of next-generation transgenic mice development [14] - Investments in property, plant, and equipment totaled $63 million, partially offset by government contributions and proceeds from the sale of a stake in Invatex [16][17] Q&A Session Summary Question: Competitive landscape for OX40 and OX40 ligand therapies [20] - Management discussed the advantages of OX40 ligand-targeted therapies, emphasizing the non-depleting mechanism of ABCL575 compared to competitors [21][22] - The company remains bullish on the potential of OX40 ligand antibodies, with preclinical data expected to be presented in 2025 [24] Question: Data expectations for T-cell engagers at CITSE [26] - The company will present updated data on its TCE platform, including programs demonstrating desired profiles in killing and cytokine response [27] Question: Independent development of TCE programs [30] - The company has the liquidity and capabilities to advance two to three new development candidates per year, with potential for equity financing or out-licensing in the future [31][32] Question: Clinical trial site requirements for government funding [35] - Phase 1 trials for ABCL575 and ABCL635 will be conducted in Canada to qualify for government funding, with potential expansion to the US or globally if needed [36][37] Question: Market potential and competition for ABCL635 [39] - ABCL635 targets a multi-pass transmembrane protein in metabolic and endocrine disorders, with a conservative addressable market of over $2 billion [40] Question: Ramp-up of spending and resource allocation [43] - The company expects R&D expenses to remain stable in 2025, with a significant reduction in CapEx as facility builds are completed [44] Question: Positioning of ABCL575 relative to IL receptor antibodies [46] - ABCL575 is expected to enter as a second-line therapy behind DUPIXENT, with potential to move to first-line due to its durability advantages [47][48] Question: Ideal partnership for the TCE platform [51] - The company is focused on collaborations that advance the science of TCEs, with an emphasis on creating effective and safe therapies for cancer patients [52][53] Question: Update on GMP facility and Biosecure Act impact [56] - The GMP facility is on track to bring its first molecules online in late 2025, with the company well-positioned to benefit from geopolitical shifts in manufacturing [57][58][59] Question: Prioritization of internal programs [60] - The company's near-term priorities include capital allocation decisions to identify a major winner, building a differentiated portfolio, and maintaining operational efficiency [60] Closing Remarks - Management thanked participants and expressed optimism about future updates [62]

Company Performance - AbCellera Biologics Inc. reported a quarterly loss of $0.17 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and compared to a loss of $0.10 per share a year ago, indicating an earnings surprise of -21.43% [1] - The company posted revenues of $6.51 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 27.30%, and down from $6.6 million in the same quarter last year [2] - Over the last four quarters, AbCellera has surpassed consensus EPS estimates only two times and has not beaten consensus revenue estimates during this period [2] Stock Performance - AbCellera Biologics shares have declined approximately 52.2% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $9.57 million, and for the current fiscal year, it is -$0.55 on revenues of $35.86 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which AbCellera belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AbCellera's stock performance [5]

Q3 2024 BUSINESS UPDATE COPYRIGHT © ABCELLERA NOVEMBER 4, 2024 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, includi ...

Financial Performance - Total revenue for the three months ended September 30, 2024, was $6,507,000, a decrease of 1.4% compared to $6,599,000 for the same period in 2023[9] - The net loss for the three months ended September 30, 2024, was $51,107,000, compared to a net loss of $28,610,000 for the same period in 2023, representing an increase in loss of 78.4%[9] - The company reported a comprehensive loss of $50,266,000 for the three months ended September 30, 2024, compared to a comprehensive loss of $28,171,000 for the same period in 2023[9] - The company had a basic net loss per share of $0.17 for the three months ended September 30, 2024, compared to $0.10 for the same period in 2023[9] - The net loss for the nine months ended September 30, 2023, was $99,248,000, compared to a net loss of $128,647,000 for the same period in 2024, indicating a decrease in losses[15] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $100,170,000, an increase of 62.8% from $61,489,000 in the same period of 2023[9] - Research fees for the nine months ended September 30, 2024, were $21,516,000, compared to $26,812,000 for the same period in 2023, reflecting a decline of 19.8%[9] - Research and development expenses for the nine months ended September 30, 2024, totaled $121,183,000, a decrease of 4.6% from $127,036,000 in the same period of 2023[9] - The company experienced a significant increase in depreciation, amortization, and impairment expenses, which rose to $36,919,000 for the three months ended September 30, 2024, compared to $5,735,000 for the same period in 2023[9] - The company reported a depreciation expense of $10,437,000 for the nine months ended September 30, 2024, compared to $8,874,000 in 2023[15] Cash Flow and Liquidity - Cash used in operating activities for the nine months ended September 30, 2023, was $24,266,000, while it increased to $100,556,000 in 2024[15] - Total cash, cash equivalents, and restricted cash at the end of the period was $199,712,000 for September 30, 2023, down from $153,930,000 in 2024[15] - Cash flows from investing activities resulted in a net cash used of $196,785,000 for the nine months ended September 30, 2024, compared to a net cash provided of $85,706,000 in 2023[15] - The company holds marketable securities totaling $516.5 million as of September 30, 2024, with a weighted average life of approximately 0.5 years[47] Shareholder Equity - The total shareholders' equity as of September 30, 2024, was $1,078,094,000, a decrease from $1,152,318,000 as of December 31, 2023[11] - The weighted-average common shares outstanding for the three months ended September 30, 2024, were 294,851,945, compared to 289,496,841 for the same period in 2023[9] - The weighted-average common shares outstanding increased from 288,750,387 in the nine months ended September 30, 2023, to 293,930,702 in 2024[22] Government Contributions - The Company entered into multi-year contribution agreements with the Government of Canada and the Government of British Columbia totaling CAD $300.0 million ($222.3 million) to develop antibody medicines and enhance capabilities in Canada[52] - The Government of Canada committed up to CAD $225.0 million ($166.7 million), with CAD $56.2 million ($41.6 million) being non-repayable and the remaining amounts being repayable starting in 2033[52] - The repayable funding from the Government of Canada is payable over fifteen years, with a conditionally repayable portion based on a percentage of the Company's revenue[52] - The Government of British Columbia committed up to CAD $75.0 million ($55.6 million), including CAD $37.5 million ($27.8 million) for eligible infrastructure investments and a conditional portion based on achieving defined milestones[52] - The Company recorded CAD $57.2 million ($42.4 million) from the Government of Canada funding and CAD $37.2 million ($27.6 million) from the Government of British Columbia funding as of September 30, 2024[52] - The total deferred government contributions recognized on the consolidated balance sheets as of September 30, 2024, amounted to CAD $149.9 million ($112.5 million)[53] - Government contributions are amortized into other income over an average life of approximately 8 years[53] Other Financial Metrics - The company recognized a gain of $16.5 million from the disposal of non-marketable securities in the quarter ended September 30, 2024[41] - The fair value of contingent consideration liabilities related to Trianni increased to $20.2 million as of September 30, 2024, from $20.0 million at the beginning of the period[43] - The company incurred lease expenses of $4,000,000 for both the three and nine months ended September 30, 2024, consistent with the previous year[29] - Stock options outstanding under the Pre-IPO Plan decreased to 27,263,018 shares as of September 30, 2024, from 30,647,575 shares as of December 31, 2023[33] - Stock-based compensation expense for the nine months ended September 30, 2024 was $52.4 million, up from $47.7 million for the same period in 2023[37] Market Risk - The Company believes its exposure to market risk has not changed materially since the last annual report[109]

Financial Performance - Total revenue for Q3 2024 was $6.5 million, a slight decrease from $6.6 million in Q3 2023[5] - Net loss for Q3 2024 was $51.1 million, or $(0.17) per share, compared to a net loss of $28.6 million, or $(0.10) per share in Q3 2023[5] - Net loss for the nine months ended September 30, 2024, was $128,647, compared to a net loss of $99,248 for the same period in 2023[18] - Cash used in operating activities for the nine months ended September 30, 2024, was $100,556, significantly higher than $24,266 for the same period in 2023[18] Expenses - Research and Development (R&D) expenses increased to $41.0 million, up from $37.9 million in Q3 2023, reflecting growth in program execution and platform development[5] - Sales and Marketing (S&M) expenses decreased to $3.1 million from $3.5 million in Q3 2023[5] - General and Administrative (G&A) expenses rose to $19.1 million, compared to $14.4 million in Q3 2023[5] - The company reported a significant increase in amortization and impairment of intangible assets, rising to $67,848 from $7,985[18] Assets and Liabilities - Total assets increased to $1,488,094 from $1,392,828, representing a growth of approximately 6.9%[17] - Total current assets rose to $871,985, up from $742,883, indicating an increase of about 17.4%[17] - Total liabilities increased to $335,776 from $314,734, marking a rise of about 6.7%[17] - Total shareholders' equity grew to $1,152,318, compared to $1,078,094, an increase of approximately 6.9%[17] Cash and Liquidity - Total cash, cash equivalents, and marketable securities amounted to $670.4 million, with an additional $205 million in available non-dilutive government funding, totaling over $875 million in liquidity[5] - Cash and cash equivalents at the end of the period were $199,712, down from $414,651, reflecting a decrease of approximately 51.9%[18] - Proceeds from marketable securities were $735,989, up from $642,913, indicating an increase of approximately 14.5%[18] Collaborations and Developments - Cumulative partner-initiated program starts with downstreams reached 95, an increase of 13% from 84 as of September 30, 2023[3] - The number of molecules advanced to the clinic increased by 40% to 14 from 10 as of September 30, 2023[3] - The company expanded its collaboration with Eli Lilly to discover therapeutic antibodies for various diseases[2] - AbCellera completed the consolidation into its new headquarters in Vancouver, marking a significant milestone in its infrastructure investments[2] Capital Expenditures - Purchases of property and equipment amounted to $62,766, slightly higher than $62,516 in the previous period[18]