Q3 2024 BUSINESS UPDATE COPYRIGHT © ABCELLERA NOVEMBER 4, 2024 DISCLAIMER This presentation contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. All statements contained in this presentation other than statements of historical fact are forward-looking statements, includi ...

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

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

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 ...

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]

Financial Performance - Total revenue for Q2 2024 was $7.3 million, a decrease of 27.2% from $10.1 million in Q2 2023[8] - Research fees generated from partnerships were $5.5 million, down from $9.8 million in Q2 2023[8] - Net loss for Q2 2024 was $36.9 million, or $(0.13) per share, compared to a net loss of $30.5 million, or $(0.11) per share in Q2 2023[8] - Net loss for the six months ended June 30, 2024, was $77,540 thousand, compared to a net loss of $70,638 thousand for the same period in 2023, indicating a deterioration of approximately 9%[21] Research and Development - R&D expenses increased to $40.9 million, compared to $36.5 million in Q2 2023, reflecting growth in program execution and platform development[8] - Cumulative partner-initiated program starts with downstreams reached 93, a 16% increase from 80 on June 30, 2023[7] - The number of molecules in the clinic increased to 14, representing a 56% increase from 9 on June 30, 2023[7] - AbCellera aims to submit clinical trial applications for ABCL635 and ABCL575 in Q2 2025[4] - The U.S. FDA cleared Abdera's IND application for ABD-147 and granted it Fast Track designation[4] - An expanded collaboration with Lilly was announced to discover therapeutic antibodies for various diseases[6] Cash and Liquidity - AbCellera has approximately $697.6 million in cash and equivalents, with total available liquidity exceeding $900 million[8] - Cash and cash equivalents decreased to $207,037 thousand at the end of the period from $414,651 thousand at the beginning, representing a decline of about 50%[21] - The company’s total cash, cash equivalents, and restricted cash at the end of the period was $204,747 thousand, down from $414,651 thousand at the beginning of the period, indicating a significant decrease in liquidity[21] Assets and Liabilities - Total assets increased to $1,488,094 thousand as of December 31, 2023, compared to $1,412,481 thousand on June 30, 2024, reflecting a growth of approximately 5.4%[19] - Total current assets rose to $871,985 thousand, up from $771,554 thousand, marking an increase of about 13%[19] - Total liabilities increased to $335,776 thousand as of December 31, 2023, compared to $301,513 thousand on June 30, 2024, reflecting an increase of approximately 11.3%[19] - Total shareholders' equity was $1,152,318 thousand as of December 31, 2023, compared to $1,110,968 thousand on June 30, 2024, showing an increase of about 3.7%[19] Cash Flow - Cash flows from operating activities resulted in a net cash used of $71,674 thousand for the six months ended June 30, 2024, compared to $24,160 thousand for the same period in 2023, indicating a significant increase in cash outflow[21] - Net cash provided by investing activities was $82,008 thousand for the six months ended June 30, 2024, contrasting with a net cash used of $183,999 thousand for the same period in 2023, showing a turnaround in cash flow[21] - The company reported a fair value gain on contingent consideration of $(30,920) thousand for the six months ended June 30, 2024, compared to no gain reported in the same period of 2023[21]