AbCellera Biologics Conference Call Summary Company Overview - **Company**: AbCellera Biologics (NasdaqGS: ABCL) - **Date**: November 13, 2025 - **Key Focus**: Transition from a partnership-focused model to developing its own clinical assets [8][12][14] Core Points and Arguments Transition to Internal Development - AbCellera has shifted from primarily building capabilities through partnerships to developing its own clinical assets, completing this transition in 2025 with two wholly owned assets entering the clinic [12][14] - The company aims to retain more economic value from its assets, moving towards co-development models with partners [7][9][12] Partnership Strategy - AbCellera has worked on over 100 programs with partners, focusing on scientific merit, commercial opportunity, and differentiation when selecting partnership opportunities [18][19] - The company continues to engage with strategic partners like Lilly and AbbVie, leveraging its capabilities to enhance their programs [11][21] Clinical Pipeline - **ABCL635**: An antibody targeting the NK3R for treating hot flashes associated with menopause. The company believes it has a significant commercial opportunity due to the large unmet medical need [35][36] - The preferred administration method is a monthly injectable, which over 50% of surveyed women preferred over daily oral options [44] - The clinical development path is straightforward, with a proof of concept study expected to start in early 2026 [60][62] - **ABCL575**: An OX40 ligand antagonist, positioned to potentially outperform existing treatments by targeting upstream pathways [88][90] - **ABCL688**: Another candidate targeting GPCRs, expected to enter clinical trials mid-next year [102][107] Market Dynamics - The market for non-hormonal treatments for menopause is expanding, with competitors like Astellas and Bayer already establishing a presence. AbCellera aims to enter this market with a differentiated product [68][75][80] - The company estimates a $6 billion addressable market for non-hormonal treatments, with significant unmet needs among women contraindicated for hormone replacement therapy [74][76] Financial Position - AbCellera reported over $500 million in cash and equivalents, with total available liquidity around $700 million, providing sufficient resources for at least the next three years [108][109] Additional Important Insights - The company has received government funding to support clinical trials, which has facilitated the establishment of trial sites in Canada without delays [53][54] - The focus on difficult antibody discovery programs has positioned AbCellera as a leader in the field, with a strong reputation among partners [31][32] - The anticipated readouts for the first clinical assets are expected in 2026, which could significantly impact the company's valuation and market perception [14][12]

Company Performance - AbCellera Biologics Inc. reported a quarterly loss of $0.19 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.17, marking an earnings surprise of -11.76% [1] - The company posted revenues of $8.96 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 35.31%, compared to revenues of $6.51 million in the same quarter last year [2] - Over the last four quarters, AbCellera has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - AbCellera shares have increased approximately 60.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $7.65 million, and for the current fiscal year, it is -$0.61 on revenues of $34.96 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which AbCellera belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - The company reported revenue of $9 million for the quarter, an increase from approximately $7 million in the same quarter of the previous year, reflecting a growth of about 29% [8] - Research and development expenses for the quarter were $55 million, which is approximately $14 million more than last year, indicating a significant investment in internal and co-development programs [9] - The net loss for the quarter was roughly $57 million, compared to a loss of about $51 million in the same quarter of the previous year, resulting in a loss of $0.19 per share [9][10] - The company ended the quarter with approximately $680 million in available liquidity, including $520 million in cash and cash equivalents and $160 million in committed government funding [4][11] Business Line Data and Key Metrics Changes - The company initiated one additional partner-initiated program in the third quarter, bringing the cumulative total to 103 programs with downstream participation [7] - The cumulative total of molecules that have reached the clinic remains at 18, including both the company's own pipeline and those led by partners [7] Market Data and Key Metrics Changes - The company is transitioning from a partnership model to focusing on internal drug development, with the first two programs now in clinical development [4][16] - The company aims to advance at least one more development candidate into IND enabling studies by the end of the year [4][26] Company Strategy and Development Direction - The company has completed its transition to a clinical-stage biotech and is focusing on advancing its internal pipeline while leveraging its clinical manufacturing capabilities [4][11] - The appointment of Dr. Sarah Nunberg as Chief Medical Officer is seen as a strategic move to enhance clinical development expertise within the company [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving corporate priorities and advancing development candidates, with a focus on building a strong pre-clinical pipeline [11] - The company is encouraged by the progress of its clinical trials and expects to provide updates on its pipeline in the coming year [21][41] Other Important Information - 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 internal pipeline advancements [10][11] - The company is managing its capital needs effectively and believes it has sufficient liquidity to fund operations well beyond the next three years [11] Q&A Session Summary Question: How to think about partner-initiated programs in the clinic? - Management acknowledged that partner-initiated programs have been slower to progress than anticipated, with some taking as long as six years to move into clinical development [15] Question: Why was now the appropriate time to bring Dr. Nunberg in as CMO? - Management indicated that the transition to drug development on their own behalf necessitated the need for a senior executive with clinical development experience [16] Question: Can you provide insights on the data disclosure strategy for the phase I 635 study? - Management plans to make a single disclosure after completing the proof of concept part of the study, expected around mid-next year [21] Question: What are the expected benefits of 635 versus existing hormonal treatments? - Management clarified that 635 is being developed as an alternative to menopausal hormone therapy, targeting women who cannot use traditional treatments [35] Question: What differentiates 575 from existing competitors? - Management highlighted that 575 aims for less frequent dosing compared to competitors, which could be a significant advantage in the clinical setting [39]

Financial Data and Key Metrics Changes - The company reported revenue of $9 million for Q3 2025, an increase from approximately $7 million in the same quarter of the previous year, primarily from research fees related to partnered programs [9] - Research and development expenses for the quarter were $55 million, an increase of about $14 million compared to the same quarter last year, driven by specific investments of $15 million in two internal programs [10] - The net loss for the quarter was approximately $57 million, compared to a loss of about $51 million in the same quarter of the previous year, resulting in a loss of $0.19 per share [10][11] - The company ended the quarter with approximately $680 million in available liquidity, including $520 million in cash and cash equivalents and $160 million in committed government funding [4][12] Business Line Data and Key Metrics Changes - The company initiated one additional partner-initiated program in Q3 2025, bringing the cumulative total to 103 programs with downstream participation [7] - The cumulative total of molecules that have reached the clinic remained at 18, including both the company's own pipeline and those led by partners [7][8] Market Data and Key Metrics Changes - The company is transitioning from a partnership model to focusing on internal drug development, with the first two programs now in clinical development [16] - The company aims to advance at least one more development candidate into IND enabling studies by the end of the year [4][25] Company Strategy and Development Direction - The company has completed its transition from a platform company to a clinical-stage biotech, with a focus on advancing its internal pipeline [4] - The appointment of Dr. Sarah Nunberg as Chief Medical Officer is seen as a strategic move to enhance clinical development capabilities [5][17] - The company is confident in its ability to fund pipeline investments well beyond the next three years [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the progress of partner-initiated programs has been slower than anticipated, with some programs taking up to six years to move into clinical development [16] - The company is encouraged by the progress of its clinical trials and expects to provide updates on its pipeline in the coming year [21][36] Other Important Information - The company has received commitments for funding from the Government of Canada's Strategic Innovation Fund and the Government of British Columbia, which are not reflected on the balance sheet [11][12] - The company is focused on advancing its two lead programs through their phase I clinical studies while building a strong pre-clinical pipeline [12] Q&A Session Summary Question: How to think about partner-initiated programs in the clinic? - Management noted that the partner-initiated programs have been stagnant since 2024, but they expect some to move forward into clinical development, albeit at a slower pace than initially anticipated [16] Question: Why was now the appropriate time to bring Dr. Nunberg in as CMO? - Management indicated that the transition to drug development on their own behalf necessitated the need for a senior executive with clinical development experience [17] Question: What is the data disclosure strategy for the phase I 635 study? - Management expects to make a single disclosure after completing the proof of concept part, likely around mid-next year, focusing on safety and efficacy [21] Question: How is enrollment going in the phase I trial for 575? - Management confirmed that enrollment is proceeding as expected and is on track [24] Question: What are the benefits of 635 versus existing hormonal treatments for hot flashes? - Management clarified that 635 is being developed as an alternative to menopausal hormone therapy, targeting women who cannot use MHT due to contraindications or adverse events [31]

Q3 2025 BUSINESS UPDATE November 6, 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, includi ...

Financial Performance - Total revenue for the three months ended September 30, 2025, was $8,955,000, representing a 37.5% increase from $6,507,000 in the same period of 2024[13] - Research fees increased to $8,817,000 in Q3 2025, up from $6,289,000 in Q3 2024, marking a 40.2% growth[13] - Net loss for the three months ended September 30, 2025, was $57,119,000, compared to a net loss of $51,107,000 in the same period of 2024, indicating a 11.8% increase in losses[13] - Revenue for the three months ended September 30, 2025, increased by $2.4 million (38%) compared to the same period in 2024, reaching $8.955 million[88] - Revenue for the nine months ended September 30, 2025, increased by $6.5 million (27%) compared to the same period in 2024, totaling $30.275 million[88] - Basic and diluted net loss per share for the nine months ended September 30, 2024, was $0.44, which increased to $0.46 in 2025, representing a rise of approximately 5%[24] Cash and Liquidity - Total cash, cash equivalents, and marketable securities decreased to $495,672,000 as of September 30, 2025, down from $625,614,000 as of December 31, 2024, a decline of 20.8%[12] - Cash flows from operating activities resulted in a net cash used of $100.556 million for the nine months ended September 30, 2024, compared to $96.552 million for the same period in 2025, indicating a slight increase in cash outflow[17] - The company’s net cash provided by investing activities was $85.706 million for the nine months ended September 30, 2024, compared to $12.612 million in 2025, indicating a significant decline in cash inflow from investments[17] - As of September 30, 2025, the company had $495.7 million in cash, cash equivalents, and marketable securities, a decrease of $129.9 million since December 31, 2024[102] - The company does not anticipate the need for additional external funding over at least the next 36 months, based on current liquidity and cash flow projections[128] Expenses and Liabilities - Operating expenses for the three months ended September 30, 2025, were $85,233,000, down from $100,170,000 in Q3 2024, a reduction of 14.9%[13] - Total liabilities increased to $391,954,000 as of September 30, 2025, from $304,469,000 as of December 31, 2024, an increase of 28.7%[12] - Shareholders' equity decreased to $964,038,000 as of September 30, 2025, down from $1,056,084,000 as of December 31, 2024, a decline of 8.7%[12] - Stock-based compensation expenses for the three months ended September 30, 2025, totaled $13.9 million, down from $17.2 million in the same period of 2024, a decrease of 19.8%[37] - General and administrative expenses increased by $2.9 million, or 15%, for the three months ended September 30, 2025, compared to the same period in 2024[92] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $136,736,000, up from $121,183,000 in the same period of 2024, an increase of 12.8%[13] - The company plans to continue significant investments in research and development to enhance antibody discovery and development capabilities[74] - The company plans to invest significantly in preclinical and clinical development of internal programs, focusing on areas with substantial unmet medical needs[78] - Research and development expenses increased by $14.1 million, or 34%, for the three months ended September 30, 2025, compared to the same period in 2024[89] - Total compensation expense for research and development was $21.2 million for the three months ended September 30, 2025, compared to $20.3 million for the same period in 2024[89] Clinical Trials and Regulatory Matters - The Phase 1 clinical trial for ABCL635 is expected to present data in mid-2026, focusing on safety and pharmacokinetics[71] - The company achieved a regulatory milestone with the submission of Clinical Trial Applications for therapies ABCL635 and ABCL575 in Q2 2025[70] - The company may experience delays in filing applications for clinical trials, which could hinder timely commercialization of its products[151] - Regulatory approval for product candidates depends on various factors, including successful clinical trials and compliance with health authority requirements[161] - The successful development of product candidates is uncertain, with a high failure rate in clinical studies[183] Market and Competitive Risks - The company’s financial performance is highly reliant on the successful development and commercialization of antibodies by its partners, which will impact future milestone payments and royalties[82] - The company continues to face risks related to market fluctuations and the need for additional capital to support operations and growth initiatives[132] - Unstable market conditions may adversely affect the company's business, financial condition, and share price, with potential impacts from military conflicts and sanctions[133] - Market acceptance of approved products depends on various factors, including safety, efficacy, and competition[188] - The ability to generate significant revenue from product sales is contingent on timely market introduction and competitive positioning[193] Government Support and Funding - The company has recorded CAD $112.1 million ($81.6 million) in respect of Government Contribution 2 funding from the Government of Canada as of September 30, 2025[53] - The Government of Canada and the Government of British Columbia committed up to $166.7 million and $55.6 million, respectively, to develop and deliver antibody medicines through Phase 1 clinical trials[105] - The company incurred maximum expenditures under Government Contribution 1, totaling CAD $175.6 million ($125.6 million), to support R&D efforts related to COVID-19[50] Legal and Compliance Issues - The company is involved in ongoing legal proceedings regarding intellectual property, with a jury trial scheduled for January 2026[117] - The FDA strictly regulates promotional claims, and improper promotion of off-label uses can lead to significant liabilities for the company[208] - Product liability claims may result in substantial liabilities, potentially limiting the commercialization of product candidates[209]

Financial Performance - Total revenue for Q3 2025 was $9.0 million, an increase of 38.5% from $6.5 million in Q3 2024[10] - Net loss for Q3 2025 was $57.1 million, compared to a net loss of $51.1 million in Q3 2024, representing a 11.7% increase in losses[5] - Net loss for the nine months ended September 30, 2024, was $128.647 million, compared to a net loss of $137.467 million for the same period in 2025[18] - Cash used in operating activities for the nine months ended September 30, 2024, was $100.556 million, slightly higher than $96.552 million in 2025[18] Expenses - Research and Development (R&D) expenses were $55.0 million, up from $41.0 million in Q3 2024, indicating a 34.1% increase[10] - Sales and Marketing (S&M) expenses decreased slightly to $2.9 million from $3.1 million in Q3 2024[10] - General & Administrative (G&A) expenses increased to $22.1 million from $19.1 million in Q3 2024, a 15.7% rise[10] - Stock-based compensation for the nine months ended September 30, 2024, was $52.355 million, down from $42.888 million in 2025[18] Liquidity and Cash Flow - Total available liquidity at the end of Q3 2025 was approximately $680 million, including $523 million in cash and cash equivalents[10] - Cash and cash equivalents and restricted cash at the end of the period were $153.930 million for 2024, down from $110.449 million in 2025[18] - Total cash, cash equivalents, and restricted cash shown on the balance sheet was $151.640 million for 2024, compared to $108.159 million in 2025[18] - Proceeds from marketable securities were $735.989 million for the nine months ended September 30, 2024, compared to $386.536 million in 2025[18] Clinical and Operational Highlights - The number of partner-initiated program starts with downstreams increased to 103 in Q3 2025, an 8% rise from 95 in Q3 2024[3] - Molecules in the clinic rose to 18, a 29% increase from 14 in Q3 2024[3] - AbCellera continues to advance its lead programs, ABCL635 and ABCL575, through Phase 1 clinical trials[5] - The company appointed Sarah Noonberg, M.D., Ph.D., as Chief Medical Officer during the quarter[5] Changes in Assets and Liabilities - Research fees and grants receivable decreased by $54.258 million for the nine months ended September 30, 2024, compared to a decrease of $15.957 million in 2025[18] - Purchases of property and equipment amounted to $62.766 million for the nine months ended September 30, 2024, compared to $32.929 million in 2025[18] - The effect of exchange rate changes on cash and cash equivalents resulted in a decrease of $457 for the nine months ended September 30, 2024, while it increased by $807 in 2025[18]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1] - The energy demands of AI technologies are immense, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2] - A specific company is highlighted as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] Investment Opportunity - The company in question is positioned as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend driven by tariffs [5][6] - It is noted for its ownership of nuclear energy infrastructure, which is crucial for America's future power strategy, and its capability to execute large-scale engineering projects across various energy sectors [7][8] - The company is debt-free and has significant cash reserves, equating to nearly one-third of its market capitalization, making it financially robust compared to other firms in the energy sector [8] Market Position - The company has an equity stake in another prominent AI venture, providing investors with indirect exposure to multiple growth engines in the AI space without the associated premium costs [9] - It is trading at less than 7 times earnings, indicating a potentially undervalued position in the market, especially for a business linked to both AI and energy [10] - The company is recognized for delivering real cash flows and owning critical infrastructure, positioning it as a strong investment choice amidst the AI revolution [11] Future Trends - The ongoing influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12] - The article emphasizes that the future is heavily reliant on AI, and the time to invest is immediate, suggesting a potential for significant returns within the next 12 to 24 months [13][15]

Group 1 - The core viewpoint is a bullish outlook on AbCellera Biologics Inc. (NASDAQ: ABCL), driven by anticipated long-term gains from the completion of a clinical manufacturing facility by the end of 2025 [1] - The company is focused on emerging technologies, sustainable investing, and the intersection of innovation and finance, indicating a strategic emphasis on these areas for future growth [1] - The analyst employs a "First Principles" approach, breaking down complex problems to uncover overlooked investment opportunities, which highlights a unique analytical methodology [1] Group 2 - The analyst has a strong background in investment, private equity, and venture capital, suggesting a robust foundation for evaluating investment opportunities [1] - The articles published on Seeking Alpha aim to share insights with a wider audience, emphasizing collaboration among investors to drive positive change [1]

Core Viewpoint - AbCellera Biologics Inc. (NASDAQ: ABCL) is expected to benefit from the completion of its clinical manufacturing facility by the end of 2025, which is anticipated to drive long-term growth [1] Company Analysis - The company is positioned in the biotechnology sector, focusing on innovative solutions and sustainable practices [1] - AbCellera's strategic development includes enhancing its manufacturing capabilities, which is crucial for scaling operations and meeting future demand [1] Investment Perspective - The investment thesis is based on a unique analytical approach termed "First Principles," which aims to identify overlooked investment opportunities by simplifying complex financial and technological problems [1] - The analyst has a strong background in investment, private equity, and venture capital, indicating a robust understanding of market dynamics and potential returns [1]