分组1 - AbCellera Biologics Inc. reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.15, but worse than the loss of $0.11 per share a year ago, indicating a 18.18% increase in loss year-over-year [1] - The company posted revenues of $7.32 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 27.71%, and down from $10.06 million in the same quarter last year [1] - AbCellera Biologics has underperformed the market, with shares down approximately 51.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [2] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $11.03 million, and for the current fiscal year, it is -$0.57 on revenues of $43.13 million [4] - The Zacks Industry Rank for Medical - Biomedical and Genetics is in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5] - Kronos Bio, Inc., another company in the same industry, is expected to report a quarterly loss of $0.32 per share, which represents a year-over-year change of +38.5% [5]

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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Core Viewpoint - AbCellera Biologics Inc. (ABCL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Earnings Estimate Revisions - For the fiscal year ending December 2024, AbCellera Biologics is expected to earn -$0.60 per share, reflecting a -17.7% change from the previous year [5]. - Over the past three months, the Zacks Consensus Estimate for AbCellera has increased by 7.4%, indicating a positive trend in earnings estimates [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [4]. - The upgrade to Zacks Rank 2 places AbCellera in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [7].

Core Viewpoint - AbCellera Biologics has seen a significant decline in stock value, down approximately 57% from its peak, despite optimistic price targets from analysts suggesting potential gains of over 100% [1][2]. Group 1: Company Overview - AbCellera Biologics focuses on rapidly discovering antibodies for drugmakers, aiming to be a key partner in the biotech industry [2]. - The company was initially valued at over $15 billion after its IPO in late 2020, supported by the success of COVID-19 antibodies bamlanivimab and bebtelovimab [2]. - The FDA's rescindment of authorization for these antibodies in November 2022 has led to a halt in royalty payments, impacting the company's financial health [2]. Group 2: Current Business Activities - As of March 31, 2024, AbCellera has initiated 90 programs with downstream revenue potential, an increase of 15 programs from the previous year [3]. - The company has 13 partnered antibodies currently in clinical-stage testing, which could lead to significant revenue if any become successful drugs [3]. - Operating expenses for the first quarter were reported at $77 million, indicating a strategic approach to cost management by allowing partners to conduct clinical trials [3]. Group 3: Financial Performance - AbCellera reported a net loss of $41 million in the first quarter but has sufficient cash reserves of $725 million and access to $240 million in government funds [4]. - The company can maintain its current cash burn rate for a few more years before needing to raise additional capital [4]. Group 4: Challenges and Risks - Despite having 13 candidates in clinical trials, less than 10% of the 158 programs under contract as of March 31, 2022, advanced to this stage, raising concerns about the company's development capabilities [5]. - The cessation of reporting total programs under contract may indicate difficulties in acquiring new clients [5]. - First-quarter research fee revenue declined by 7.5% year-over-year to $9.8 million, suggesting challenges in sales growth [6].

Financial Data and Key Metrics Changes - AbCellera reported revenue of $10 million in Q1 2024, a decrease from approximately $11 million in Q1 2023, primarily driven by research fees from partner-initiated programs [12][13] - Research and development expenses for the quarter were approximately $39 million, which is about $13 million less than the same period last year, reflecting the absence of one-time expenses incurred in Q1 2023 [13][14] - The net loss for the quarter was roughly $41 million, compared to a loss of $40 million in the same quarter of the previous year, with a loss per share of $0.14 [14][16] Business Line Data and Key Metrics Changes - The company started work on three partner-initiated programs in Q1 2024, bringing the cumulative total to 90 partner-initiated programs [12] - No additional molecules advanced into the clinic during the quarter, maintaining a cumulative total of 13 molecules that have reached the clinic [12] Market Data and Key Metrics Changes - AbCellera has approximately $725 million in cash and equivalents, along with about $240 million in available government funding, providing a strong liquidity position to execute its strategy [12][16] - The company expects to continue its investments in CMC and GMP manufacturing capabilities, with the first engineering runs anticipated in 2025 [12][16] Company Strategy and Development Direction - The company is focusing on three main priorities: advancing its internal pipeline, completing platform investments for clinical manufacturing capabilities, and executing strategic partnerships [7] - AbCellera aims to leverage its TCE platform for both internal programs and strategic partnerships, with a focus on oncology and autoimmunity [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of the TCE platform and its ability to generate differentiated therapies for cancer and liquid tumors [8][22] - The company is actively engaging in discussions for potential partnerships and remains confident in the value of its platform [21][46] Other Important Information - AbCellera announced collaborations with Biogen and Viking/ArrowMark, focusing on novel targets and the creation of asset-based companies [10][11] - The company has secured $220 million from the Governments of Canada and British Columbia, which is not reflected on the balance sheet but contributes to total available liquidity [16] Q&A Session Summary Question: What additional data is needed to spur strategic interest in a transaction? - Management indicated that the focus is on translating in vitro data to in vivo models and ultimately to the clinic, which is essential for demonstrating the platform's value [20] Question: Would the company consider advancing one of the TCEs independently? - Management confirmed that they see the platform as a source of internal programs and are open to advancing promising candidates independently [24] Question: Can you provide details on the new partner-initiated programs? - Specific details about the partners and therapies were not disclosed, but the distribution of programs aligns with historical trends [42] Question: What is the status of the GMP Biologic Manufacturing Facility? - There have been no changes to the timing, with the first engineering batches expected in 2025 [36] Question: How does the Biogen partnership compare to other offerings? - The Biogen deal is seen as an exciting opportunity to address the challenge of transporting biologics across the blood-brain barrier [39] Question: How will the company decide which TCEs to develop internally? - Decisions will be based on a combination of scientific data, commercial considerations, and the competitive landscape [31] Question: What is the outlook for operating expenditures as assets move into the clinic? - The company indicated that the pace of bringing assets into the clinic will depend on scientific and clinical data, making it difficult to predict a regular trajectory [63]

Company Performance - AbCellera Biologics Inc. reported a quarterly loss of $0.14 per share, which was better than the Zacks Consensus Estimate of a loss of $0.16, and the same as the loss reported a year ago [1] - The company achieved an earnings surprise of 12.50% and has surpassed consensus EPS estimates three times over the last four quarters [1] - Revenues for the quarter ended March 2024 were $9.95 million, missing the Zacks Consensus Estimate by 11.64%, and down from $12.19 million a year ago [1] Stock Performance - AbCellera Biologics shares have declined approximately 28% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $12.25 million, and for the current fiscal year, it is -$0.66 on revenues of $49.39 million [4] - The estimate revisions trend for AbCellera Biologics is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Medical - Biomedical and Genetics industry, to which AbCellera belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable industry outlook [5] - Avidity Biosciences, another company in the same industry, is expected to report a quarterly loss of $0.81 per share, with revenues projected to be $7.09 million, reflecting a year-over-year increase of 217.9% [5]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited Q1 2024 consolidated financial statements reflect total assets at $1.46 billion, a net loss of $40.6 million, and $41.7 million cash used in operations [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to $1.46 billion, driven by a reduction in cash and marketable securities, while liabilities remained stable and equity declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 (in thousands) | Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total cash, cash equivalents, and marketable securities** | $760,585 | $698,023 | | **Total current assets** | $871,985 | $813,948 | | **Total assets** | $1,488,094 | $1,463,096 | | **Total current liabilities** | $119,013 | $104,883 | | **Total liabilities** | $335,776 | $333,183 | | **Total shareholders' equity** | $1,152,318 | $1,129,913 | [Condensed Consolidated Statements of Loss and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) Q1 2024 total revenue decreased to $10.0 million due to no milestone payments, while operating expenses fell to $64.8 million, resulting in a net loss of $40.6 million Statement of Loss Highlights (in thousands, except per share data) | Metric | Q1 2023 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $12,192 | $9,954 | | Research fees | $10,570 | $9,774 | | Milestone payments | $1,250 | $0 | | **Total Operating Expenses** | $77,066 | $64,848 | | Research and development | $52,647 | $39,287 | | **Loss from Operations** | ($64,874) | ($54,894) | | **Net Loss** | ($40,110) | ($40,610) | | **Net Loss Per Share (Basic & Diluted)** | ($0.14) | ($0.14) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $41.7 million in Q1 2024, while investing activities provided $29.9 million, leading to a $9.7 million decrease in cash Cash Flow Summary (in thousands) | Activity | Q1 2023 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($44,063) | ($41,708) | | **Net cash provided by (used in) investing activities** | ($149,609) | $29,910 | | **Net cash provided by (used in) financing activities** | ($458) | $2,831 | | **Decrease in cash and cash equivalents** | ($194,343) | ($9,748) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including CAD $475.6 million in government contributions, a decrease in deferred revenue to $19.1 million, and $17.4 million in stock-based compensation expense - Stock-based compensation expense for Q1 2024 was **$17.4 million**, an increase from **$15.5 million** in Q1 2023[46](index=46&type=chunk) - Deferred revenue decreased to **$19.1 million** as of March 31, 2024, from **$27.2 million** at the end of 2023, with **$8.6 million** recognized as revenue in Q1 2024[47](index=47&type=chunk) - The company has received significant funding commitments from the Government of Canada and the Government of British Columbia, totaling up to **CAD $475.6 million** for R&D and manufacturing infrastructure, with varying repayment terms[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 revenue decline due to milestone absence, reduced R&D expenses, and continued investment, while highlighting growth in key business metrics and sufficient liquidity for 36 months [Overview](index=22&type=section&id=Overview) AbCellera's strategy focuses on building an integrated antibody drug discovery engine through partnerships for royalty stakes and developing its own internal pipeline - The company's business model focuses on both partnering to build a portfolio of royalty stakes and developing its own pipeline of antibody drugs[73](index=73&type=chunk)[74](index=74&type=chunk) - Partnership agreements are structured with near-term payments (technology access, research fees) and long-term downstream payments (milestones, royalties), with royalties typically in the single-digit to low-double-digit range[76](index=76&type=chunk) - The company has started a cumulative total of **90** partner-initiated programs with downstream participation and has seen **13** molecules advance into the clinic[78](index=78&type=chunk) [Key Business Metrics](index=27&type=section&id=Key%20Business%20Metrics) Key business metrics show 90 cumulative partner-initiated programs and 13 molecules in the clinic as of March 31, 2024, indicating growing potential for future milestone and royalty revenues Cumulative Key Business Metrics | Metric | Mar 31, 2023 | Mar 31, 2024 | Change % | | :--- | :--- | :--- | :--- | | Partner-initiated program starts with downstreams | 75 | 90 | 20% | | Molecules in the clinic | 9 | 13 | 44% | - The company has recently signed or expanded multi-target partnership agreements with firms including Viking Global Investors, Biogen, Regeneron, and AbbVie[95](index=95&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2024 total revenue decreased 18% to $10.0 million due to no milestone payments, while R&D expenses fell 25% to $39.3 million, and G&A expenses rose 15% to $17.4 million Revenue Comparison (in thousands) | Revenue Source | Q1 2023 (in thousands) | Q1 2024 (in thousands) | Change (in thousands) | Change % | | :--- | :--- | :--- | :--- | :--- | | Research fees | $10,570 | $9,774 | ($796) | (8)% | | Milestone payments | $1,250 | $0 | ($1,250) | (100)% | | **Total revenue** | **$12,192** | **$9,954** | **($2,238)** | **(18)%** | Operating Expense Comparison (in thousands) | Expense Category | Q1 2023 (in thousands) | Q1 2024 (in thousands) | Change (in thousands) | Change % | | :--- | :--- | :--- | :--- | :--- | | Research and development | $52,647 | $39,287 | ($13,360) | (25)% | | Sales and marketing | $3,771 | $3,365 | ($406) | (11)% | | General and administrative | $15,134 | $17,352 | $2,218 | 15% | - The decrease in R&D expenses is mainly due to specific one-time investments of approximately **$20.0 million** in co-development and internal programs made in Q1 2023[100](index=100&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, AbCellera held $698.0 million in cash and marketable securities, deemed sufficient for at least 36 months of operations and capital expenditures - The company had **$698.0 million** in cash, cash equivalents, and marketable securities as of March 31, 2024[108](index=108&type=chunk) - Management believes existing liquidity is sufficient to fund operations and capital expenditures for at least the next **36 months** without needing external funding[109](index=109&type=chunk) - Net cash used in operating activities was **$41.7 million** in Q1 2024, while net cash from investing activities was **$29.9 million**, a reversal from the prior year due to proceeds from marketable securities[112](index=112&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure since the disclosures in its December 31, 2023 Annual Report on Form 10-K - There have been no material changes to the company's market risk exposure since the end of 2023[118](index=118&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[119](index=119&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2024[120](index=120&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material changes to legal proceedings, with the patent infringement case against Bruker Cellular Analysis resuming and efforts to dismiss affiliates from the John Schrader lawsuit - The patent infringement lawsuit against Bruker Cellular Analysis has resumed, and the company remains confident in its case[122](index=122&type=chunk) - In the lawsuit brought by the estate of John Schrader, the company is seeking dismissal of certain affiliates for lack of jurisdiction and believes the claim is meritless[123](index=123&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company details risks across business strategy, intellectual property, and share ownership, including historical losses, revenue volatility, IP litigation, and potential shareholder dilution [Risks Related to Our Business and Strategy](index=38&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Strategy) Business risks include a history of losses, fluctuating revenue highly dependent on partner success, intense competition, and challenges in managing rapid growth and platform investments - The company has incurred losses in certain years, including a net loss of **$146.4 million** in 2023, and may incur significant losses in the foreseeable future due to continued investment in R&D, facilities, and personnel[125](index=125&type=chunk) - Revenue has fluctuated significantly and is not recurring, as it depends on the timing of partnership agreements, research activities, and partner-driven clinical milestones, with no expectation of continued royalty revenue from COVID-19 antibodies[127](index=127&type=chunk)[128](index=128&type=chunk) - The company's success is highly reliant on partners advancing discovered antibodies through clinical trials and commercialization, a long and uncertain process over which AbCellera has no control[155](index=155&type=chunk)[156](index=156&type=chunk) [Risks Related to Our Intellectual Property](index=65&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) IP risks include challenges in obtaining and maintaining patent protection, costly ongoing litigation with Bruker Cellular Analysis and the John Schrader estate, and reliance on in-licensed third-party technologies - The company relies on a combination of patents, trade secrets, and contractual restrictions to protect its technology, but these may not provide adequate protection against competitors[253](index=253&type=chunk)[254](index=254&type=chunk) - The company is engaged in ongoing, time-intensive, and costly litigation related to intellectual property with Bruker Cellular Analysis and the estate of John Schrader, which could adversely affect the business regardless of the outcome[297](index=297&type=chunk)[307](index=307&type=chunk)[309](index=309&type=chunk) - The company relies on in-licensed technologies from third parties, such as the University of British Columbia and Stanford University, and loss of these rights or disputes over them could materially harm the business[270](index=270&type=chunk)[271](index=271&type=chunk) [Risks Related to Ownership of Our Common Shares](index=79&type=section&id=Risks%20Related%20to%20Our%20Common%20Shares) Share ownership risks include potential dilution from future equity issuances, no dividend payments, significant influence by major shareholders, share price volatility, and complex U.S. tax implications like CFC or PFIC classification - Future sales of common shares to raise capital or under employee incentive plans could result in significant dilution to existing shareholders[327](index=327&type=chunk)[328](index=328&type=chunk) - Executive officers, directors, and **5%** shareholders own over **20%** of common shares, enabling them to exert significant influence over matters requiring shareholder approval[332](index=332&type=chunk) - There are potentially adverse U.S. federal income tax consequences for certain U.S. shareholders if the company or its non-U.S. subsidiaries are classified as a Controlled Foreign Corporation (CFC) or a Passive Foreign Investment Company (PFIC)[350](index=350&type=chunk)[356](index=356&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[375](index=375&type=chunk) [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during Q1 2024 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading plan in Q1 2024[375](index=375&type=chunk) [Item 6. Exhibits](index=91&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including officer certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL documents[378](index=378&type=chunk)

[AbCellera Q1 2024 Business Results](index=1&type=section&id=AbCellera%20Reports%20Q1%202024%20Business%20Results) [Q1 2024 Business and Financial Highlights](index=1&type=section&id=Q1%202024%20Business%20and%20Financial%20Highlights) AbCellera advanced its internal pipeline and expanded strategic partnerships in Q1 2024, achieving growth in key business metrics while reporting $10.0 million revenue and a $40.6 million net loss [Q1 2024 Business Summary](index=1&type=section&id=Q1%202024%20Business%20Summary) AbCellera initiated new collaborations with Biogen, Viking Global Investors, and ArrowMark Partners, while presenting promising data on its T-cell engager platform - Announced a new collaboration with Biogen Inc. to discover antibodies for neurological conditions[3](index=3&type=chunk) - Formed a new collaboration with Viking Global Investors and ArrowMark Partners to launch new biotech companies[3](index=3&type=chunk) - Presented new data on its T-cell engager (TCE) platform, demonstrating the ability to generate TCEs that achieve potent cell killing with low toxicity associated with cytokine release[3](index=3&type=chunk) [Key Business Metrics](index=2&type=section&id=Key%20Business%20Metrics) The company demonstrated strong year-over-year growth in core operational metrics, including partner-initiated programs and molecules in the clinic Key Business Metrics Growth (YoY) | Cumulative Metrics | March 31, 2023 | March 31, 2024 | Change % | | :--- | :--- | :--- | :--- | | Partner-initiated program starts with downstreams | 75 | 90 | 20% | | Molecules in the clinic | 9 | 13 | 44% | [Discussion of Q1 2024 Financial Results](index=2&type=section&id=Discussion%20of%20Q1%202024%20Financial%20Results) AbCellera reported Q1 2024 total revenue of $10.0 million and a net loss of $40.6 million, while maintaining a robust liquidity position Q1 2024 Financial Highlights (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $10.0 million | $12.2 million | | R&D Expenses | $39.3 million | $52.6 million | | G&A Expenses | $17.4 million | $15.1 million | | Net Loss | $40.6 million | $40.1 million | | Net Loss per Share | $(0.14) | $(0.14) | - The company holds a strong liquidity position with **$725.3 million** in cash, cash equivalents, and marketable securities, and has access to an additional **$240 million** in non-dilutive government funding[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2024 detail the company's financial performance, position, and cash flows, including a $40.6 million net loss and $1.46 billion in total assets [Condensed Consolidated Statements of Loss and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For Q1 2024, total revenue was $10.0 million, operating expenses decreased to $64.8 million, resulting in a net loss of $40.6 million, or ($0.14) per share Q1 2024 Statement of Loss (in thousands USD) | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Total Revenue | $9,954 | $12,192 | | Total Operating Expenses | $64,848 | $77,066 | | Loss from Operations | $(54,894) | $(64,874) | | Net Loss | $(40,610) | $(40,110) | | Net Loss per Share (Basic & Diluted) | $(0.14) | $(0.14) | [Condensed Consolidated Balance Sheet](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of March 31, 2024, AbCellera reported total assets of $1.463 billion, with $698.0 million in cash and marketable securities, and total shareholders' equity of $1.130 billion Balance Sheet Summary (in thousands USD) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total cash, cash equivalents, and marketable securities | $698,023 | $760,585 | | Total Assets | $1,463,096 | $1,488,094 | | Total Liabilities | $333,183 | $335,776 | | Total Shareholders' Equity | $1,129,913 | $1,152,318 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In Q1 2024, net cash used in operating activities was $41.7 million, while investing activities provided $29.9 million, resulting in a period-end cash balance of $150.9 million Statement of Cash Flows Summary (in thousands USD) | Cash Flow Activity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(41,708) | $(44,063) | | Net cash provided by (used in) investing activities | $29,910 | $(149,609) | | Net cash provided by (used in) financing activities | $2,831 | $(458) | | Decrease in cash and cash equivalents | $(9,748) | $(194,343) | [Supporting Information](index=3&type=section&id=Supporting%20Information) This section provides context on AbCellera's business, defines key performance metrics, and includes standard legal disclaimers regarding forward-looking statements [About AbCellera Biologics Inc.](index=3&type=section&id=About%20AbCellera%20Biologics%20Inc.) AbCellera focuses on discovering and developing antibody medicines across various therapeutic areas using an integrated technology platform, pursuing both internal pipeline programs and external collaborations - AbCellera's business is centered on discovering and developing antibody medicines for therapeutic areas including cancer, metabolic and endocrine conditions, and autoimmune disorders[7](index=7&type=chunk) - The company's strategy involves both advancing an internal pipeline of programs and collaborating with partners on innovative drug development[7](index=7&type=chunk) [Definition of Key Business Metrics](index=3&type=section&id=Definition%20of%20Key%20Business%20Metrics) AbCellera defines 'partner-initiated program starts with downstreams' and 'molecules in the clinic' as key business metrics to gauge future revenue potential from milestones and royalties - Partner-initiated program starts with downstreams: This metric indicates the total opportunities for future downstream revenue from milestone fees and royalties[9](index=9&type=chunk) - Molecules in the clinic: This metric tracks molecules reaching the IND stage and indicates near- and mid-term potential revenue from milestone fees and long-term royalty payments[10](index=10&type=chunk) [AbCellera Forward-Looking Statements](index=3&type=section&id=AbCellera%20Forward-Looking%20Statements) This legal disclaimer states that the press release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially - The press release contains forward-looking statements based on management's current beliefs and assumptions, which are subject to risks, uncertainties, and other factors that may cause actual results to differ[11](index=11&type=chunk)[13](index=13&type=chunk)