Core Insights - AbCellera is a market leader in antibody discovery, focusing on building an integrated platform for antibody discovery and development aimed at generating best-in-class antibody medicines [1] Company Overview - The company has validated its technology with over 100 successful applications, showcasing its capability in the antibody discovery sector [1]

Core Viewpoint - AbCellera's stock has dropped significantly, with a 47% decline since September, attributed to falling revenues and increased R&D expenditures, leading to a cautious investment recommendation of "hold" for prospective investors [1][15]. Financial Performance - In Q2 2023, AbCellera's revenue fell to $10.1 million from $45.9 million in Q2 2022, with a net loss of $30.5 million [2]. - By Q2 2024, revenue further declined by 27% year-over-year to $7.3 million, while operating expenses increased, resulting in a net loss of $36.9 million [3][5]. - The company reported $133.32 million in cash and cash equivalents and $627.265 million in marketable securities as of June 30, 2024, indicating a strong balance sheet despite ongoing losses [11]. Research and Development - The number of molecules in clinical trials increased from nine to 14 over the past year, reflecting progress in the pipeline [5]. - R&D expenses rose to $40.9 million in Q2 2024, contributing to the widening net loss [5]. - AbCellera has expanded its partnership with Eli Lilly to discover therapeutic antibodies across various clinical areas, which may enhance its pipeline [7]. Market Challenges - The company faces skepticism from the market due to fiscal inefficiencies and the diminishing impact of COVID-19 related revenues [1]. - The nature of drug development poses significant risks, with many drugs in the pipeline still in early stages and unlikely to reach market [9][14]. - Historical data suggests that only about 5% of Phase 1 oncology drugs make it to market, indicating a challenging environment for AbCellera's drug candidates [10]. Investment Outlook - The stock is expected to remain volatile, with speculative valuation until one or two drugs achieve market visibility [12]. - The cash runway extends beyond 2026 based on current cash burn rates, providing some financial stability in the near term [11]. - A cautious "hold" recommendation is advised, with existing investors encouraged to maintain their positions while prospective investors should consider waiting [15].

Financial Data and Key Metrics Changes - AbCellera reported revenue of $7 million in Q2 2024, a decrease from approximately $10 million in Q2 2023, primarily due to a shift in focus towards internal and co-development programs [13][14] - The company experienced a net loss of roughly $37 million for the quarter, compared to a loss of nearly $31 million in the same quarter of the previous year, resulting in a loss of $0.13 per share [14][15] - Operating activities for the first half of 2024 used approximately $72 million, with total cash, cash equivalents, and marketable securities at $698 million at the end of the quarter [15][16] Business Line Data and Key Metrics Changes - The company initiated work on three partner-initiated programs in Q2 2024, bringing the cumulative total to 93 programs with downstream participation [12] - The cumulative total of molecules that have reached the clinic increased to 14, with the advancement of ABD-147 into the clinic [13] Market Data and Key Metrics Changes - AbCellera has approximately $700 million in cash and equivalents and $220 million in available government funding, providing over $900 million in total available liquidity to execute its strategy [12][16] - The company noted a trend of decreasing research fee revenue as it focuses more on internal programs, which is expected to continue in the coming quarters [14][41] Company Strategy and Development Direction - The company is prioritizing three main areas: advancing its internal pipeline, completing investments in platforms and facilities, and executing select strategic partnerships [6] - AbCellera is focusing on T cell engager (TCE) programs, with ongoing development in oncology and autoimmune indications, aiming for better safety and efficacy profiles compared to existing therapies [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of their TCE platform, highlighting the progress made in preclinical studies and the potential for differentiation in the market [20][22] - The company is actively engaging with key players in the TCE space and is focused on translating in vitro data into in vivo models [19][20] Other Important Information - AbCellera announced an expansion of its partnership with Eli Lilly, building on a successful collaboration that began in March 2020 [11] - The company congratulated partners Abdera and Invetx on their recent advancements, indicating strong collaboration and potential future revenue streams from these partnerships [10][11] Q&A Session Summary Question: Interest in advancing TCE programs in oncology vs autoimmune indications - Management indicated that they are advancing multiple TCE programs simultaneously and are focused on demonstrating efficacy in vivo models before making further development decisions [19][20] Question: Competitive landscape for CD19 TCE in autoimmune diseases - Management acknowledged the crowded space but emphasized their focus on developing a product with strong efficacy and convenience compared to existing therapies [25][26] Question: Differentiation of OX40 ligand vs OX40 approaches - Management discussed the potential of their OX40 program and its long-lasting effects, positioning it as a best-in-class asset in the treatment of atopic dermatitis and other autoimmune conditions [31][32] Question: Economics of collaborations with large partners - Management expressed satisfaction with the collaboration renewals, indicating that the financial components have evolved positively, reflecting the value of their platform [44][45] Question: Impairment assessment in the quarter - Management clarified that the impairment was related to contingent consideration and in-process R&D from previous acquisitions, which was non-cash and roughly offsetting [47] Question: Engagement levels with new partners - Management noted a focus on building internal programs and strategic partnerships, indicating a lower volume of new partnerships compared to previous years [51] Question: Status of Viking ArrowMark collaboration - Management described the collaboration as being in early stages but expressed optimism about its potential to create new companies once development candidates are identified [53]

AbCellera 42 2024 BUSINESS UPDATE AUGUST 6, 2024 DISCLAIMER 2024 BUSINESS UPDAT 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, i ...

AbCellera Biologics Inc. (ABCL) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.14, delivering a surprise of 12.50%. Over the last four quarters, the company h ...

Revenue and Net Loss - Total revenue for the six months ended June 30, 2024, was $17.277 million, a decrease from $22.248 million in the same period in 2023[11] - Net loss for the six months ended June 30, 2024, was $77.540 million, compared to $70.638 million in the same period in 2023[11] - Net loss for the six months ended June 30, 2024 was $77.54 million, compared to $70.64 million for the same period in 2023[18] - Basic and diluted net loss per share for the six months ended June 30, 2024, was $0.26, compared to $0.24 in the same period in 2023[11] - Basic and diluted net loss per share for Q2 2024 was $(0.13), compared to $(0.11) in Q2 2023, with net losses of $(36.9 million) and $(30.5 million) respectively[28] Research and Development Expenses - Research and development expenses for the six months ended June 30, 2024, were $80.214 million, down from $89.120 million in the same period in 2023[11] - Stock-based compensation expense increased to $35.19 million for the six months ended June 30, 2024, up from $31.87 million in the same period in 2023[18] - Stock-based compensation expense increased from $16.4 million in Q2 2023 to $17.8 million in Q2 2024, primarily driven by R&D and G&A expenses[49] Cash and Marketable Securities - Total cash, cash equivalents, and marketable securities as of June 30, 2024, were $670.356 million, a decrease from $760.585 million as of December 31, 2023[10] - Cash and cash equivalents and restricted cash decreased to $175.60 million as of June 30, 2024, compared to $207.04 million as of June 30, 2023[18] - Proceeds from marketable securities increased to $539.39 million for the six months ended June 30, 2024, compared to $422.81 million in the same period in 2023[18] - The company's marketable securities totaled $522.044 million as of June 30, 2024, with $72.434 million in Level 1 and $449.610 million in Level 2[60] - The company's marketable securities had a weighted average life of approximately 0.6 years and were rated A- or higher by at least two major rating agencies[58] Assets and Liabilities - Total current assets as of June 30, 2024, were $771.554 million, down from $871.985 million as of December 31, 2023[10] - Total liabilities as of June 30, 2024, were $301.513 million, a decrease from $335.776 million as of December 31, 2023[10] - Total shareholders' equity as of June 30, 2024, was $1.110968 billion, down from $1.152318 billion as of December 31, 2023[10] - Total shareholders' equity decreased to $1.11 billion as of June 30, 2024, down from $1.15 billion as of December 31, 2023[15] - Accumulated other comprehensive loss increased to $2.07 million as of June 30, 2024, compared to $1.72 million as of December 31, 2023[15] - Common shares outstanding increased to 294.67 million as of June 30, 2024, up from 290.82 million as of December 31, 2023[15] - Property and equipment, net increased from $287.7 million in December 2023 to $318.9 million in June 2024, driven by building and leasehold improvements[31] - The company held $32.3 million in non-marketable securities as of June 2024, unchanged from December 2023[52] Depreciation, Amortization, and Impairment - Depreciation, amortization, and impairment expenses for the six months ended June 30, 2024, were $41.366 million, up from $11.124 million in the same period in 2023[11] - Amortization and impairment of intangible assets significantly increased to $34.76 million for the six months ended June 30, 2024, compared to $5.31 million in the same period in 2023[18] - The company recorded a full impairment charge of $32.0 million for IPR&D assets acquired through the TetraGenetics acquisition in 2021[33] - Amortization expense on intangible assets is estimated to be $4.3 million annually from 2025 to 2029, totaling $21.5 million over five years[35] Cash Flow and Investments - Net cash used in operating activities increased to $71.67 million for the six months ended June 30, 2024, compared to $24.16 million in the same period in 2023[18] - Purchases of property and equipment increased to $44.25 million for the six months ended June 30, 2024, up from $42.19 million in the same period in 2023[18] - The company's equity investment in Dayhu JV increased slightly from $42.1 million in December 2023 to $42.2 million in June 2024[37] - Loan receivable from Beedie JV partner increased significantly from CAD $18.4 million ($13.9 million) in December 2023 to CAD $30.6 million ($22.4 million) in June 2024[40] Government Funding and Contributions - The company received a total of CAD $175.6 million ($125.6 million) from the Canadian government under the Strategic Innovation Fund (SIF) for COVID-19 antibody research and development[63] - The company entered into multi-year contribution agreements totaling CAD $300.0 million ($222.3 million) with the Canadian and British Columbia governments for antibody medicine development and manufacturing[64] - The company recorded CAD $46.0 million ($34.1 million) in respect of the Canadian government's funding commitment as of June 30, 2024[65] - The company recorded CAD $31.0 million ($23.0 million) in respect of the British Columbia government's funding commitment as of June 30, 2024[65] - Government Contribution 1 and 2 totaled $131.593 million on the consolidated balance sheets as of June 30, 2024[67] Contingent Consideration and Liabilities - Contingent consideration related to business acquisitions is measured using Level 3 inputs, with no changes to valuation techniques since acquisition[55] - Trianni's contingent consideration liability increased by $374,000 to $20.027 million for the three months ended June 30, 2024[56] - TetraGenetics' contingent consideration liability decreased by $32.4 million to $4.441 million for the three months ended June 30, 2024[56] Deferred Revenue and Other Financial Metrics - Deferred revenue decreased from $27.2 million in December 2023 to $14.4 million in June 2024, with $13.0 million recognized as revenue in H1 2024[50] - The company's exposure to market risk has not changed materially since December 31, 2023[125]

NEWS RELEASE AbCellera Reports Q2 2024 Business Results 08/06/2024 VANCOUVER, British Columbia - AbCellera (Nasdaq: ABCL) today announced financial results for the second quarter of 2024. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. "This quarter, we made important progress on our internal pipeline and aim to submit applications for clinical trials for ABCL635 and ABCL575 in the second quarter of 2025. In parallel, we have focused preclinical work ...

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Investors might want to bet on AbCellera Biologics Inc. (ABCL) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a ...

Wall Street analysts say this drug developer can more than double your money.Discovering new drugs can be a lucrative endeavor, but things aren't working out lately for AbCellera Biologics (ABCL -0.29%). Shares of this unusual biotech stock are down by about 57% from the high water mark they set last summer.The steep losses might seem surprising if you've been paying attention to Wall Street analysts who follow AbCellera Biologics. KeyBanc has an overweight rating on the stock and a $7 per share price targe ...