Financial Data and Key Metrics Changes - The company has over $500 million in cash and nearly $200 million of available capital from government funding, indicating strong financial health for at least the next three years [49][50][51] - The company has successfully transitioned from early-stage discovery to running early-stage clinical trials, demonstrating strong execution and capability building [16][17] Business Line Data and Key Metrics Changes - The company has shifted focus from a partnership model to developing its own internal pipeline, with two therapeutic antibodies, ABCL635 and ABCL575, recently brought to the clinic [7][11] - The company aims to bring approximately two molecules to the clinic each year, with plans for additional candidates in the pipeline [45][46] Market Data and Key Metrics Changes - The addressable market for non-hormonal options to treat vasomotor symptoms (VMS) in postmenopausal women is estimated at $2 billion, with a significant unmet medical need [27][36] - The company is positioned to capitalize on the market created by competitors like Bayer and Astellas, which are developing similar treatments [27][36] Company Strategy and Development Direction - The company is focusing on developing differentiated therapeutic candidates targeting complex and difficult-to-find antibodies, which sets it apart from competitors [12][30] - The strategy includes a mix of internal development and selective partnerships to manage its portfolio effectively [51][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in their ability to execute clinical trials and bring candidates to market, despite initial skepticism from the market [16][17] - The company is optimistic about the potential for its therapeutic candidates to meet significant unmet medical needs and capture market share [27][36] Other Important Information - The company has made significant investments in building integrated capabilities for drug development, including CMC and GMP manufacturing [14][15] - The company has established partnerships with major players like AbbVie and Eli Lilly, which validate its technology and business model [6][58] Q&A Session Summary Question: How has the transition to internal programs affected productivity? - Management highlighted that investments in technology have enabled the discovery of difficult-to-find antibodies, which is expected to enhance productivity [10] Question: What capabilities have been built to support early-stage clinical trials? - Management noted that they have successfully built a clinical and regulatory team to support their internal programs and have submitted two clinical trial applications [15][16] Question: What is the market potential for ABCL635? - The addressable market for non-hormonal treatments for VMS is estimated at $2 billion, with a significant number of women seeking alternatives to hormone replacement therapy [27][36] Question: How does ABCL575 differentiate from competitors? - Management indicated that ABCL575 has a longer half-life compared to competitors, which could lead to less frequent dosing and better patient compliance [42] Question: What is the company's capital allocation strategy moving forward? - The company plans to manage its portfolio on an asset-by-asset basis, focusing on advancing promising candidates while seeking partnerships for others [51][58]

AbCellera Biologics Inc. (ABCL) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.17. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +29.41%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.15, delivering a surprise of +11.76%. Over the last four quarters, the compa ...

Financial Data and Key Metrics Changes - The company reported revenue of approximately $17 million for the quarter, a significant increase from $7 million in the same quarter of 2024, primarily driven by licensing fees of $10 million related to the Triany platform [14][12] - Research and development expenses were approximately $39 million, a slight decrease from the previous year's $41 million, reflecting ongoing investments in internal and co-development programs [15][16] - The net loss for the quarter was roughly $35 million, compared to a loss of $37 million in the same quarter of last year, resulting in a loss of $0.12 per share [16][12] Business Line Data and Key Metrics Changes - The company initiated five partner-initiated programs in the second quarter, bringing the cumulative total to 102 programs with downstream participation [13] - ABCL635 and ABCL575 received clinical trial authorizations, marking them as the first Absella-led molecules to reach the clinic, increasing the total number of molecules in the clinic to 18 [13][12] Market Data and Key Metrics Changes - The company ended the quarter with approximately $750 million in total available liquidity, including $580 million in cash and equivalents and $170 million in committed government funding [19][12] - The company is focused on advancing its two lead programs through Phase I clinical studies and building its preclinical pipeline [19] Company Strategy and Development Direction - The company aims to transition from a platform company to a clinical-stage biotech, with a focus on advancing its antibody therapy pipeline [5][6] - Key priorities for the remainder of the year include executing clinical studies for ABCL635 and ABCL575, advancing ABCL688 into IND enabling studies, and enhancing clinical manufacturing capabilities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for ABCL635, noting that a significant portion of the eligible population for menopausal treatments either cannot or prefers not to use hormone therapy [34][33] - The company anticipates initial safety and efficacy data from the ABCL635 trial in mid-2026, which will be crucial for future development [8][42] Other Important Information - The company has initiated a Phase I clinical trial for ABCL575, targeting moderate to severe atopic dermatitis, with dosing expected to begin shortly [9][12] - The company has advanced ABCL688 into IND enabling studies, with plans to submit an IND in mid-2026 [11][12] Q&A Session Summary Question: Risks to the development path for June from a regulatory perspective - Management acknowledged a delay with elenzanatant but indicated no concerns about approvability and expects progress towards approval later this year [23][24] Question: Specifics on the ABCL635 Phase I trial - The trial will include both menopausal women and healthy male volunteers, with an expected enrollment of around 60 patients in the initial phases and up to 80 in the proof of concept study [32][33] Question: Partnership and licensing revenue expectations - Management clarified that the higher licensing revenue was a one-off payment related to the Triani acquisition and not expected to recur [38][37] Question: Key efficacy data to look for in the ABCL635 Phase I study - Early assessments will include biomarkers such as LH, FSH, and testosterone, with efficacy measures expected in the proof of concept study [41][42] Question: Plans for U.S. sites in future trials - Currently, the focus is on a Canadian site for the Phase I study, with plans to engage with the FDA for Phase II studies that may include U.S. sites [55][54] Question: Autoimmune indications for ABCL688 - Management refrained from disclosing specific details but expressed high confidence in the program and its potential [58][59]

Q2 2025 BUSINESS UPDATE August 7, 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 ...

Part I. Financial Information [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, show an increase in total assets to **$1.40 billion** and total liabilities to **$395.0 million**, with a net loss of **$34.7 million** for Q2 2025 and **$80.3 million** for the six months ended June 30, 2025, while cash flows from operations remained negative but improved Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | **Total cash, cash equivalents, and marketable securities** | $625,614 | $553,078 | | **Total current assets** | $751,370 | $742,145 | | **Total assets** | $1,360,553 | $1,402,061 | | **Total current liabilities** | $76,612 | $67,023 | | **Total liabilities** | $304,469 | $394,985 | | **Total shareholders' equity** | $1,056,084 | $1,007,076 | Condensed Consolidated Statements of Loss Highlights (in thousands, except per share data) | Metric | Q2 2024 | Q2 2025 | YTD 2024 | YTD 2025 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $7,323 | $17,084 | $17,277 | $21,320 | | **Loss from operations** | $(93,454) | $(49,585) | $(148,348) | $(112,246) | | **Net loss** | $(36,930) | $(34,727) | $(77,540) | $(80,348) | | **Net loss per share (basic & diluted)** | $(0.13) | $(0.12) | $(0.26) | $(0.27) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six months ended June 30, 2024 | Six months ended June 30, 2025 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(71,674) | $(43,958) | | **Net cash provided by (used in) investing activities** | $82,008 | $(23,876) | | **Net cash provided by financing activities** | $5,482 | $2,595 | | **Net increase (decrease) in cash** | $14,992 | $(63,888) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting a **133% YoY increase** in Q2 revenue to **$17.1 million**, driven by licensing revenue, while operating expenses decreased primarily due to a large impairment charge in the prior year, and the company advanced its internal pipeline, submitting Clinical Trial Applications for ABCL635 and ABCL575, expecting to initiate Phase 1 trials in H2 2025, with key business metrics showing growth in partner-initiated programs and molecules in the clinic, and management believes its liquidity of **$553.1 million** is sufficient for at least the next 36 months [Overview and Recent Developments](index=19&type=section&id=Overview%20and%20Recent%20Developments) AbCellera is focused on discovering and developing antibody-based medicines, advancing its internal pipeline and partnering with other companies, achieving a key milestone in Q2 2025 by submitting Clinical Trial Applications (CTAs) for two therapies, ABCL635 (for menopause symptoms) and ABCL575 (for atopic dermatitis), receiving No Objection Letters from Health Canada, with Phase 1 trials for both expected to begin in H2 2025, and a third program, ABCL688 for autoimmunity, advanced into IND/CTA-enabling studies - Submitted Clinical Trial Applications (CTAs) for ABCL635 (vasomotor symptoms in menopause) and ABCL575 (atopic dermatitis) and received No Objection Letters from Health Canada in May 2025[71](index=71&type=chunk) - Phase 1 clinical trials for both ABCL635 and ABCL575 are anticipated to start in Canada during the second half of 2025[71](index=71&type=chunk)[72](index=72&type=chunk) - A third internal program, ABCL688 for an undisclosed autoimmunity indication, advanced into IND/CTA-enabling studies in Q2 2025, with a submission anticipated in 2026[73](index=73&type=chunk) [Key Business Metrics](index=24&type=section&id=Key%20Business%20Metrics) The company tracks key metrics to evaluate its business, including the cumulative number of partner-initiated programs with downstream participation and the number of molecules in the clinic, with partner-initiated programs growing **10% YoY to 102** and molecules in the clinic increasing **29% YoY to 18** as of June 30, 2025 Cumulative Key Business Metrics Comparison | Metric | June 30, 2024 | June 30, 2025 | Change % | | :--- | :--- | :--- | :--- | | **Partner-initiated program starts with downstreams** | 93 | 102 | 10% | | **Molecules in the clinic** | 14 | 18 | 29% | - As of June 30, 2025, there are **18 molecules in the clinic**, including two AbCellera-led programs (ABCL635 and ABCL575) with authorized clinical trials[84](index=84&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) For Q2 2025, total revenue increased **133% YoY to $17.1 million**, mainly due to a **$10.1 million increase** in licensing revenue, while research and development expenses decreased slightly by **4% to $39.2 million**, and general and administrative expenses decreased by **6% to $19.0 million**, with a significant factor in the reduced loss from operations being the **$31.1 million decrease** in depreciation, amortization, and impairment, as Q2 2024 included a **$32.0 million impairment charge** Revenue Comparison (in thousands) | Revenue Category | Q2 2024 | Q2 2025 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research fees | $5,453 | $6,639 | $1,186 | 22% | | Licensing revenue | $370 | $10,445 | $10,075 | 2723% | | Milestone payments | $1,500 | $– | $(1,500) | (100)% | | **Total revenue** | **$7,323** | **$17,084** | **$9,761** | **133%** | - Depreciation, amortization, and impairment expense decreased by **$31.1 million (85%)** in Q2 2025 compared to Q2 2024, primarily due to a **$32.0 million impairment charge** related to IPR&D from the TetraGenetics acquisition recognized in 2024[96](index=96&type=chunk) - Other income decreased by **$30.2 million** in Q2 2025 compared to Q2 2024, mainly because the prior-year period included a **$32.4 million non-cash fair value gain** from adjusting contingent consideration related to the TetraGenetics impairment[99](index=99&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, AbCellera had **$553.1 million** in cash, cash equivalents, and marketable securities, a decrease of **$72.5 million** from year-end 2024, driven by cash used in operations, R&D activities, and investments in its corporate headquarters and manufacturing facility, with management believing existing liquidity is sufficient to meet capital needs for at least the next 36 months without requiring additional external funding - The company holds **$553.1 million** in cash, cash equivalents, and marketable securities as of June 30, 2025[102](index=102&type=chunk) - The company is on track to complete its final large platform investments in its clinical manufacturing facility and corporate headquarters in 2025, which is expected to significantly reduce investing cash flows going forward[104](index=104&type=chunk) - Management believes current liquidity is sufficient to meet working capital and capital expenditure needs for at least the next **36 months**[104](index=104&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk has not materially changed from the disclosures provided in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the company's exposure to market risk since the end of the 2024 fiscal year[111](index=111&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, and the company is in the process of implementing a new enterprise resource planning (ERP) system, which has led to modifications in certain internal controls over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[112](index=112&type=chunk) - The company is implementing a new ERP system, which has resulted in modifications to certain existing internal controls over financial reporting. The implementation is ongoing[113](index=113&type=chunk)[114](index=114&type=chunk) Part II. Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company provides updates on its ongoing legal matters, including a patent infringement litigation against Bruker Cellular Analysis with a jury trial scheduled for January 2026, a related appeal where the CAFC affirmed the validity of all claims of AbCellera's '408 Patent, and a separate case involving the estate of John Schrader where the company is seeking dismissal of certain affiliates for lack of jurisdiction and believes the claim is meritless - A jury trial for the patent infringement litigation against Bruker Cellular Analysis is scheduled for January 2026[116](index=116&type=chunk) - In May 2025, the U.S. Court of Appeals for the Federal Circuit (CAFC) confirmed that all claims of AbCellera's '408 Patent are valid, rejecting Bruker's appeal[117](index=117&type=chunk) - In the Schrader v. Hansen et al. case, the company is seeking to dismiss certain affiliates from the matter and believes the plaintiff's claim is meritless[118](index=118&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks that could materially affect the company's business, financial condition, and results of operations, including a history of losses and potential inability to achieve profitability, reliance on partners for the successful development and commercialization of discovered antibodies, uncertainty in drug development, competition, and the need to protect intellectual property, along with risks related to financial market volatility, dependence on key personnel, cybersecurity threats, and regulatory changes - The company has incurred losses, including in 2025, and may not generate sufficient revenue to achieve profitability, as its success depends on developing and monetizing a therapeutic[120](index=120&type=chunk)[121](index=121&type=chunk) - The company's business is highly reliant on partners successfully developing and commercializing antibodies discovered by AbCellera, as the majority of potential value is in future milestone and royalty payments[83](index=83&type=chunk)[138](index=138&type=chunk) - The company faces risks related to its ability to obtain and maintain sufficient intellectual property protection for its technology, which is critical to its competitive advantage[300](index=300&type=chunk)[301](index=301&type=chunk) - The market price of the company's common shares may be volatile, and sales of a substantial number of shares could cause the price to fall[377](index=377&type=chunk)[405](index=405&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[415](index=415&type=chunk) [Other Information](index=88&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no directors or officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No director or officer adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[416](index=416&type=chunk) [Exhibits](index=89&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - The report includes standard exhibits such as CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL data files[419](index=419&type=chunk)

[Q2 2025 Business and Financial Highlights](index=1&type=section&id=Q2%202025%20Business%20and%20Financial%20Highlights) AbCellera's Q2 2025 highlights include significant clinical pipeline advancements and strong financial performance with doubled revenue [Business & Operational Summary](index=1&type=section&id=Business%20%26%20Operational%20Summary) AbCellera transitioned to a clinical-stage biotechnology company in Q2 2025, initiating Phase 1 trials for two programs and advancing a third, while expanding its discovery pipeline - AbCellera has transitioned into a **clinical-stage biotechnology company** with the initiation of **Phase 1 studies** for ABCL635 and ABCL575[2](index=2&type=chunk) - A third internal program, ABCL688, targeting autoimmunity, has advanced into **IND/CTA-enabling studies**[2](index=2&type=chunk)[3](index=3&type=chunk) [Key Business Metrics](index=2&type=section&id=Key%20Business%20Metrics) The company achieved strong year-over-year growth in key operational metrics, including partner-initiated programs and molecules advanced into the clinic Cumulative Business Metrics Growth (YoY) | Cumulative Metrics | June 30, 2024 | June 30, 2025 | Change % | | :--- | :--- | :--- | :--- | | Partner-initiated program starts with downstreams | 93 | 102 | 10% | | Molecules in the clinic | 14 | 18 | 29% | [Clinical Pipeline Updates](index=2&type=section&id=Clinical%20Pipeline%20Updates) The company initiated Phase 1 trials for ABCL635 and ABCL575, advancing its clinical pipeline with anticipated data in mid-2026 for ABCL635 - **ABCL635 (Endocrinology/Women's Health):** Dosing has begun in a Phase 1 trial for treating moderate-to-severe vasomotor symptoms Initial safety and efficacy data is expected in mid-2026[7](index=7&type=chunk) - **ABCL575 (Immunology and Inflammation):** A Phase 1 trial has been initiated for treating moderate-to-severe atopic dermatitis The antibody is designed for a potential dosing interval of once every 6 months[7](index=7&type=chunk) [Q2 2025 Financial Performance](index=1&type=section&id=Q2%202025%20Financial%20Performance) In Q2 2025, AbCellera's revenue more than doubled to $17.1 million compared to $7.3 million in Q2 2024, narrowing its net loss and maintaining robust liquidity Q2 2025 Financial Highlights vs. Q2 2024 (in millions USD) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $17.1 | $7.3 | +134% | | R&D Expenses | $39.2 | $40.9 | -4.2% | | Net Loss | $(34.7) | $(36.9) | +6.0% | | Net Loss Per Share | $(0.12) | $(0.13) | +7.7% | - The company is well-capitalized with total available liquidity of approximately **$753 million**, comprising **$580 million** in cash and marketable securities and **$173 million** in available non-dilutive government funding[2](index=2&type=chunk)[8](index=8&type=chunk) [Condensed Consolidated Statements of Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss) For the three months ended June 30, 2025, total revenue surged to $17.1 million, driven by a significant increase in licensing revenue, resulting in a net loss of $34.7 million Q2 2025 Statement of Loss (in thousands USD) | Line Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | **$17,084** | **$7,323** | | Research fees | $6,639 | $5,453 | | Licensing revenue | $10,445 | $370 | | **Total operating expenses** | **$66,669** | **$100,777** | | Research and development | $39,213 | $40,927 | | Depreciation, amortization, and impairment | $5,470 | $36,522 | | **Loss from operations** | **$(49,585)** | **$(93,454)** | | **Net loss** | **$(34,727)** | **$(36,930)** | | **Net loss per share (basic & diluted)** | **$(0.12)** | **$(0.13)** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, AbCellera's total assets increased to $1.40 billion, with total cash, cash equivalents, and marketable securities at $553.1 million, and total shareholders' equity at $1.01 billion Balance Sheet Summary (in thousands USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$742,145** | **$751,370** | | Cash, cash equivalents, and marketable securities | $553,078 | $625,614 | | **Total assets** | **$1,402,061** | **$1,360,553** | | **Total current liabilities** | **$67,023** | **$76,612** | | **Total liabilities** | **$394,985** | **$304,469** | | **Total shareholders' equity** | **$1,007,076** | **$1,056,084** | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities improved to $44.0 million, while net cash used in investing activities shifted to $23.9 million, resulting in a $63.9 million decrease in cash and cash equivalents Cash Flow Summary - Six Months Ended June 30 (in thousands USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(43,958) | $(71,674) | | Net cash provided by (used in) investing activities | $(23,876) | $82,008 | | Net cash provided by financing activities | $2,595 | $5,482 | | **Decrease in cash and cash equivalents** | **$(63,888)** | **$14,992** | [Other Information](index=3&type=section&id=Other%20Information) This section provides definitions for key business metrics, outlines forward-looking statement disclaimers, and details conference call access information [Definition of Key Business Metrics](index=3&type=section&id=Definition%20of%20Key%20Business%20Metrics) This section defines key business metrics, including partner-initiated programs and molecules in the clinic, which indicate potential for future revenue from milestones and royalties - **Partner-initiated program starts with downstreams:** This metric indicates the potential for near-term payments and long-term revenue from milestone fees and royalties[12](index=12&type=chunk) - **Molecules in the clinic:** This metric signals near- and mid-term potential revenue from milestone fees and long-term potential from royalty payments[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains the standard "safe harbor" provision, cautioning that the press release includes forward-looking statements based on management's current beliefs and assumptions - The press release contains **forward-looking statements** under the **safe harbor provisions** of the Private Securities Litigation Reform Act of 1995[14](index=14&type=chunk) - These statements involve **risks and uncertainties**, and readers are cautioned that they are based on current projections and may not prove to be accurate[16](index=16&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) AbCellera scheduled a conference call and live webcast to discuss the Q2 2025 financial results and business updates for 2:00 p.m. Pacific Time on the day of the earnings release - A **conference call and live webcast** were scheduled for 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results[9](index=9&type=chunk)

Company Overview - AbCellera Biologics Inc. (ABCL) shares increased by 15% to close at $5.15, with notable trading volume exceeding typical levels. The stock has gained 31.4% over the past four weeks [1][2]. Pipeline Development - The price surge is linked to growing investor optimism regarding the company's pipeline candidate, ABCL635, which is a first-in-class antibody for treating vasomotor symptoms (hot flashes) related to menopause. A phase I study for ABCL635 is expected to commence in the second half of 2025 [2]. Financial Performance Expectations - The company is projected to report a quarterly loss of $0.16 per share, reflecting a year-over-year decline of 23.1%. Revenue is anticipated to be $9.33 million, marking a 27.4% increase from the same quarter last year [3]. - The consensus EPS estimate for the upcoming quarter has been revised 5.9% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [4]. Industry Context - AbCellera operates within the Zacks Medical - Biomedical and Genetics industry. Jazz Pharmaceuticals (JAZZ), a peer in the same sector, experienced a slight decline of 0.2% to $112.65, with a 5% return over the past month [5]. - Jazz's consensus EPS estimate has changed by +4.2% to -$6.12, representing a significant year-over-year decline of 215.5%. Jazz currently holds a Zacks Rank of 4 (Sell) [6].

Summary of AbCellera Biologics (ABCL) FY Conference Call - June 09, 2025 Company Overview - **Company**: AbCellera Biologics (ABCL) - **Transition**: Shifted from a platform company to a clinical-stage biotech with two internally developed agents authorized for clinical trials [3][4] Key Points and Arguments Financial Position - **Liquidity**: Company has approximately $800 million in liquidity, allowing for continued investment in pipeline development [3] Pipeline Development - **Initial Molecules**: Focus on two molecules, ABCL635 and ABCL575, entering clinical trials in Q3 2025 [3] - **Development Projects**: Over 20 development projects, with more than half targeting complex membrane protein targets [4] Target Selection Framework - **Framework Criteria**: Selection based on validated science, large commercial opportunities, differentiation, and clear development paths [5][6] ABCL635 Specifics - **Indication**: Targeting vasomotor symptoms (VMS) related to menopause, specifically hot flashes [8] - **Market Opportunity**: Estimated annual sales potential over $2 billion, with 30% of women experiencing moderate to severe VMS [10] - **Differentiation**: Antibody approach expected to have fewer safety issues compared to small molecules, with a preference for monthly dosing over daily oral administration [20][21] Market Dynamics - **Menopausal Hormone Therapy (MHT)**: Approximately 40 million women in the U.S. are of menopausal age, with 30% experiencing moderate to severe VMS. About 50% seek treatment, but 20% are contraindicated for MHT [25][26][27] - **Commercial Market**: Significant opportunity exists for alternatives to MHT, especially for the 1.2 million women contraindicated for MHT [28] ABCL575 Overview - **Mechanism**: Targets OX40 ligand, which mediates T cell expansion and survival, potentially offering safety advantages over OX40 receptor targeting [35] - **Indication**: Initially exploring atopic dermatitis, a large unmet medical need with existing successful treatments like Dupixent [38] Competitive Landscape - **Dupixent Comparison**: Dupixent generates $8 billion in sales but has limitations in patient response rates, indicating a potential market for alternative therapies like ABCL575 [41] Clinical Trials and Future Plans - **Phase One Trials**: Expected to start dosing in Q3 2025, with initial data anticipated in the first half of 2026 [49][50] - **Partnership Strategy**: ABCL635 is likely to be advanced independently, while ABCL575 may be better suited for partnership due to its broader indication potential [54][60] Legacy Business and Partnerships - **Ongoing Partnerships**: Continued investment in partnerships, including a recent collaboration with AbbVie on T cell engagers [61] - **GMP Facility**: Investment in a GMP facility expected to be operational by the end of the year, supporting clinical trial material production [62] Additional Important Content - **Patient Preferences**: Surveys indicate a preference for injectable treatments over daily oral medications among menopausal women [21][23] - **Market Segmentation**: There is room for both biologics and oral treatments in the market, with patient choice being a significant factor [32] This summary encapsulates the key insights from the conference call, highlighting the strategic direction, market opportunities, and clinical development plans of AbCellera Biologics.

Core Viewpoint - AbCellera Biologics Inc. (ABCL) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2][3]. - The recent upgrade for AbCellera indicates a positive outlook on its earnings, which could positively affect its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in AbCellera's underlying business, which should lead to higher stock prices [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and stock movements, making tracking these revisions beneficial for investment decisions [7]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks into five groups, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. Specific Earnings Estimates for AbCellera - For the fiscal year ending December 2025, AbCellera is expected to earn -$0.68 per share, reflecting a change of -23.6% from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for AbCellera has increased by 5.6%, indicating a positive trend in earnings estimates [9]. Overall Rating System Insights - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving favorable ratings [10][11]. - The upgrade of AbCellera to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

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].