Financial Data and Key Metrics Changes - Revenue for Q2 2023 was approximately $10 million, a decrease from approximately $13 million in Q2 2022, primarily due to a shift away from higher upfront fee programs [18][20] - Net loss for the quarter was roughly $31 million, compared to a net loss of approximately $7 million in Q2 2022, reflecting continued investments in the business and absence of royalty revenues [20] - Operating expenses for R&D were approximately $36 million, a $10 million increase year-over-year, indicating growth in program execution and platform development [19] Business Line Data and Key Metrics Changes - The company started work on five new discovery programs in Q2 2023, bringing the cumulative total to 106 partnered program starts [16] - The number of programs under contract remained at 177 with 41 unique partners, with no new programs signed in the quarter [16][17] - Nine molecules were reported in the clinic, indicating ongoing potential revenue from downstream milestone fees and long-term royalty payments [17] Market Data and Key Metrics Changes - The antibody therapeutics market was estimated to generate annual sales of $250 billion in 2022 and is projected to exceed $400 billion by 2030 [10] - The company secured $222 million in non-dilutive financing from the governments of Canada and British Columbia as part of an eight-year project worth $519 million [13][14] Company Strategy and Development Direction - The company aims to build a technological advantage in its antibody discovery engine and assemble a diversified portfolio of economic positions and programs for commercialization [10] - A significant focus is on building capabilities in translational science, process development, and manufacturing, expected to be completed by 2025 [11] - The strategy emphasizes quality over quantity in partnerships, focusing on programs that are likely to succeed in clinical trials [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy with a strong liquidity position, having over $820 million in cash and equivalents [22] - The company is cautious about the current expectations surrounding AI in drug discovery, emphasizing that while there are opportunities, the science is not yet ready to deliver on all applications [25][31] - Management noted a macroeconomic trend where fewer companies are being started, leading partners to prioritize existing programs [50] Other Important Information - The company is actively engaged in discussions regarding the future of co-development programs with EQRx, indicating a path forward regardless of the outcome of EQRx's acquisition [33] - The company is building a GMP manufacturing facility that will support both pre-partnered and co-development programs [60] Q&A Session Summary Question: AI's impact on drug discovery - Management acknowledged the buzz around AI but clarified that current AI technologies do not significantly impact antibody discovery [25][26] Question: Future of EQRx co-development programs - Management confirmed three co-development programs with EQRx and indicated ongoing discussions about their future [33] Question: Milestone expectations for the year - Management stated that they do not provide short-term guidance on milestones but do not foresee a different trajectory than in the past [40] Question: Capacity for new program starts - Management confirmed that they have the capacity to handle multiple active programs and can scale up as needed [66] Question: Updates on COVID-19 antibody development with Eli Lilly - Management indicated ongoing engagement with Eli Lilly and readiness to proceed with clinical development when the path is clear [69]

Q2 2023 BUSINESS UPDATE ARELLECBA AUGUST 3, 2023 © DISCLAIMER Th ...

Financial Performance - Total revenue for the three months ended June 30, 2023, was $10,056, a decrease of 78% compared to $45,917 for the same period in 2022[11] - Net loss for the three months ended June 30, 2023, was $30,528, compared to a net loss of $6,785 for the same period in 2022[11] - The company reported a comprehensive loss of $30,406 for the three months ended June 30, 2023, compared to a comprehensive loss of $6,996 for the same period in 2022[11] - The net loss for the six months ended June 30, 2023, was $70,638, compared to a net earnings of $161,788 for the same period in 2022[17] - Basic net loss per share for the three months ended June 30, 2023, was $(0.11), compared to $(0.02) for the same period in 2022[28] Expenses - Research and development expenses for the three months ended June 30, 2023, were $36,473, an increase of 37% from $26,685 in the same period of 2022[11] - Total operating expenses for the three months ended June 30, 2023, were $61,445, an increase of 13% from $54,313 in the same period of 2022[11] - The company reported stock-based compensation expense of $31,873 for the six months ended June 30, 2023, up from $24,404 in the same period of 2022[17] - Sales and marketing expenses rose from $475 million in Q2 2022 to $1,329 million in Q2 2023, a significant increase of 179%[50] - General and administrative expenses increased from $5,374 million in Q2 2022 to $6,992 million in Q2 2023, reflecting a 30% rise[50] Assets and Liabilities - Total current assets decreased to $930,735 as of June 30, 2023, from $1,025,491 as of December 31, 2022, representing a decline of approximately 9.2%[10] - Total liabilities increased to $342,339 as of June 30, 2023, from $307,630 as of December 31, 2022, reflecting an increase of about 11.3%[10] - Cash and cash equivalents decreased to $179,747 as of June 30, 2023, from $386,535 as of December 31, 2022, a decline of approximately 53.5%[10] - The company had total cash, cash equivalents, and marketable securities of $795,694 as of June 30, 2023, down from $886,485 as of December 31, 2022, a decrease of approximately 10.3%[10] - Total current accounts payable and other liabilities increased from $33,150 million as of December 31, 2022, to $52,395 million as of June 30, 2023[43] Cash Flow - Cash provided by operating activities was $(24,160) for the six months ended June 30, 2023, a significant decline from $373,234 for the same period in 2022[17] - Cash and cash equivalents at the end of the period were $207,037, down from $817,439 at the end of the previous period[17] - The total cash, cash equivalents, and restricted cash at the end of the period was $204,747, down from $815,615 at the beginning of the period[17] Investments and Commitments - The company incurred $528,891 in purchases of marketable securities during the six months ended June 30, 2023, compared to $134,306 in the same period of 2022[17] - The Company has a commitment of up to CAD $82.7 million ($62.5 million) to the Dayhu joint venture as of June 30, 2023[36] - The equity investment balance in the Beedie joint venture was $17.7 million as of June 30, 2023[40] - The company has committed to repayable funding of up to CAD $225.0 million ($169.9 million) from the Government of Canada, with repayments starting in 2033[65] Research and Development - The company aims to enhance its antibody drug discovery and development capabilities through partnerships with various biotechnology and pharmaceutical companies[21] - The company received a total of $132.6 million in government contributions as of June 30, 2023, to support R&D efforts related to COVID-19[63] - For the quarter ended June 30, 2023, the company claimed $13.6 million under federal funding, of which $10.2 million is repayable[66] Other Financial Metrics - The number of common shares outstanding increased from 286,851,595 as of December 31, 2022, to 289,189,469 as of June 30, 2023[10] - As of June 30, 2023, total shareholders' equity was $1,194,827, a decrease from $1,208,500 as of March 31, 2023, reflecting a net loss of $30,528 for the quarter[14] - Total property and equipment, net increased from $217,255 million as of December 31, 2022, to $259,640 million as of June 30, 2023[31] - The Company recorded depreciation expense on property and equipment of $3.0 million for the three months ended June 30, 2023, compared to $2.3 million for the same period in 2022[32] - Intangible assets net book value as of June 30, 2023, was $126,747 million, with a gross carrying amount of $155,143 million[33] - The fair value of contingent consideration liabilities for Trianni increased from $20,903 million to $21,971 million during Q2 2023[56] - The fair value of marketable securities held by the company was $615,947 million as of June 30, 2023, with $153,373 million classified as Level 1[60]

AbCellera Biologics Inc. (NASDAQ:ABCL) Q1 2023 Results Conference Call May 4, 2023 5:00 PM ET Company Participants Tryn Stimart - Chief Legal and Compliance Officer Dr. Carl Hansen - Chairman, Chief Executive Officer, and President Andrew Booth - Chief Financial Officer Conference Call Participants Andrea Tan - Goldman Sachs Antonia Borovina - Bloom Burton Stephen Willey - Stifel Nishant Gandhi - Truist Gaurav Goparaju - Berenberg Puneet Souda - SVB Securities Malcolm Hoffman - BMO Steven Mah - Cowen Operat ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements, detailing financial position and performance for Q1 2023 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets from **$1.54 billion** at December 31, 2022, to **$1.50 billion** at March 31, 2023, primarily driven by a reduction in cash and cash equivalents Balance Sheet Summary | Metric | Dec 31, 2022 (in thousands) | Mar 31, 2023 (in thousands) | Change | | :---------------------------------- | :-------------------------- | :-------------------------- | :----- | | Total assets | $1,540,907 | $1,497,919 | $(42,988) | | Total liabilities | $307,630 | $289,419 | $(18,211) | | Total shareholders' equity | $1,233,277 | $1,208,500 | $(24,777) | | Cash and cash equivalents | $386,535 | $193,017 | $(193,518) | | Marketable securities | $499,950 | $603,478 | $103,528 | | Total cash, cash equivalents, and marketable securities | $886,485 | $796,495 | $(89,990) | [Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29%20and%20Comprehensive%20Income%20%28Loss%29) The company experienced a significant shift from net earnings of **$168.57 million** in Q1 2022 to a net loss of **$40.11 million** in Q1 2023, primarily due to the absence of COVID-19 antibody royalty revenue Income Statement Summary | Metric | Three months ended Mar 31, 2022 (in thousands) | Three months ended Mar 31, 2023 (in thousands) | Change | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :----- | | Total revenue | $316,581 | $12,192 | $(304,389) | | Royalty revenue | $307,017 | $- | $(307,017) | | Research fees | $9,333 | $10,570 | $1,237 | | Milestone payments | $- | $1,250 | $1,250 | | Total operating expenses | $91,631 | $77,066 | $(14,565) | | Royalty fees (expense) | $44,637 | $- | $(44,637) | | Research and development | $26,366 | $52,647 | $26,281 | | Income (loss) from operations | $224,950 | $(64,874) | $(289,824) | | Net earnings (loss) | $168,573 | $(40,110) | $(208,683) | | Basic EPS | $0.59 | $(0.14) | $(0.73) | | Diluted EPS | $0.54 | $(0.14) | $(0.68) | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total shareholders' equity decreased from **$1.23 billion** at December 31, 2022, to **$1.21 billion** at March 31, 2023, primarily due to the net loss incurred Stockholders' Equity Summary | Metric | Dec 31, 2022 (in thousands) | Mar 31, 2023 (in thousands) | Change | | :---------------------------------- | :-------------------------- | :-------------------------- | :----- | | Total Shareholders' Equity | $1,233,277 | $1,208,500 | $(24,777) | | Shares issued and RSUs vested | 286,851,595 | 288,426,514 | 1,574,919 | | Stock-based compensation expense | - | $15,474 | $15,474 | | Net loss | - | $(40,110) | $(40,110) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow shifted from a **$100.22 million** inflow in Q1 2022 to a **$44.06 million** outflow in Q1 2023, mainly due to net loss and increased R&D Cash Flow Summary | Metric | Three months ended Mar 31, 2022 (in thousands) | Three months ended Mar 31, 2023 (in thousands) | Change | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :----- | | Net cash provided by (used in) operating activities | $100,219 | $(44,063) | $(144,282) | | Net cash used in investing activities | $(26,371) | $(149,609) | $(123,238) | | Net cash used in financing activities | $(3,131) | $(458) | $2,673 | | Net increase (decrease) in cash and cash equivalents | $70,513 | $(194,343) | $(264,856) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the condensed consolidated financial statements, covering operations, policies, and financial instruments [Note 1. Nature of operations](index=12&type=section&id=Note%201.%20Nature%20of%20operations) - AbCellera's mission is to accelerate antibody drug discovery and development, partnering with companies to build a diversified portfolio of royalty stakes in future antibody drugs[22](index=22&type=chunk) [Note 2. Basis of presentation](index=12&type=section&id=Note%202.%20Basis%20of%20presentation) - The unaudited interim condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim financial information, reflecting normal recurring adjustments[23](index=23&type=chunk)[24](index=24&type=chunk) [Note 3. Significant accounting policies](index=12&type=section&id=Note%203.%20Significant%20accounting%20policies) - The preparation of financial statements requires management to make estimates and assumptions, particularly for revenue recognition, fair value of acquired intangible assets, contingent consideration payable, and stock-based compensation awards[25](index=25&type=chunk) [Note 4. Net earnings (loss) per share](index=13&type=section&id=Note%204.%20Net%20earnings%20%28loss%29%20per%20share) Net Earnings (Loss) Per Share | Metric | Three months ended Mar 31, 2022 | Three months ended Mar 31, 2023 | | :-------------------------------------------------- | :------------------------------ | :------------------------------ | | Net earnings (loss) per share attributable to common shareholders - basic | $0.59 | $(0.14) | | Net earnings (loss) per share attributable to common shareholders - diluted | $0.54 | $(0.14) | | Weighted-average common shares outstanding - basic | 283,895,020 | 287,767,136 | | Weighted-average common shares outstanding - diluted | 311,482,017 | 287,767,136 | - Potentially dilutive securities (stock options and RSUs) were excluded from diluted net loss per share for Q1 2023 because their effect would be anti-dilutive, resulting in basic and diluted EPS being the same[28](index=28&type=chunk) [Note 5. Property and equipment, net](index=13&type=section&id=Note%205.%20Property%20and%20equipment%2C%20net) Property and Equipment, Net | Category | December 31, 2022 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------ | | Property and equipment, net | $217,255 | $233,187 | | Depreciation expense (3 months) | $1,400 | $2,900 | - Leasehold improvements include tenant improvements in progress of **$38.9 million** as of March 31, 2023, which have not yet commenced depreciation[31](index=31&type=chunk) [Note 6. Intangible assets](index=14&type=section&id=Note%206.%20Intangible%20assets) Intangible Assets Net Book Value | Category | Net book value (March 31, 2023, in thousands) | | :--------- | :-------------------------------------------- | | License | $18,016 | | Technology | $46,819 | | IPR&D | $64,010 | | Total | $128,845 | Estimated Amortization Expense | Year | Estimated Amortization Expense (in thousands) | | :--- | :-------------------------------------------- | | 2024 | $10,599 | | 2025 | $4,241 | | 2026 | $4,241 | | 2027 | $4,241 | | 2028 | $4,241 | | Total | $27,563 | [Note 7. Investments in and loans to equity accounted investees, and other long-term assets](index=14&type=section&id=Note%207.%20Investments%20in%20and%20loans%20to%20equity%20accounted%20investees%2C%20and%20other%20long-term%20assets) - The company has two **50%** joint ventures, Dayhu JV and Beedie JV, for the construction of future office and laboratory headquarters[34](index=34&type=chunk) - As of March 31, 2023, the equity investment balance in Dayhu JV was **$41.3 million**, and a new loan of **$34.0 million** was issued to Dayhu in January 2023[35](index=35&type=chunk)[36](index=36&type=chunk) - As of March 31, 2023, the equity investment balance in Beedie JV was **$16.3 million**, and a land loan of **$5.5 million** was committed to Beedie[37](index=37&type=chunk)[39](index=39&type=chunk) [Note 8. Current assets and liabilities](index=16&type=section&id=Note%208.%20Current%20assets%20and%20liabilities) Current Assets and Liabilities | Category | December 31, 2022 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :------------------------------- | :------------------------------ | | Other current assets | $75,413 | $99,155 | | Accounts payable and other liabilities | $33,150 | $31,814 | [Note 9. Shareholders' equity](index=16&type=section&id=Note%209.%20Shareholders%27%20equity) Stock Option Activity (Pre-IPO Plan) | Stock Option Activity (Pre-IPO Plan) | Dec 31, 2022 | Mar 31, 2023 | | :----------------------------------- | :----------- | :----------- | | Outstanding Shares | 33,694,150 | 32,606,979 | | Weighted-Average Exercise Price | $0.90 | $0.91 | Stock Option Activity (2020 Plan) | Stock Option Activity (2020 Plan) | Dec 31, 2022 | Mar 31, 2023 | | :-------------------------------- | :----------- | :----------- | | Outstanding Shares | 12,322,933 | 13,804,391 | | Weighted-Average Exercise Price | $14.81 | $14.33 | RSU Activity (2020 Plan) | RSU Activity (2020 Plan) | Dec 31, 2022 | Mar 31, 2023 | | :----------------------- | :----------- | :----------- | | Outstanding Shares | 3,946,985 | 4,433,055 | | Weighted-Average Grant Fair Value | $13.71 | $12.87 | Stock-based Compensation Expense | Stock-based Compensation Expense (in thousands) | Three months ended Mar 31, 2022 | Three months ended Mar 31, 2023 | | :---------------------------------------------- | :------------------------------ | :------------------------------ | | Research and development | $5,937 | $7,496 | | Sales and marketing | $994 | $1,271 | | General and administrative | $5,360 | $6,707 | | Total | $12,291 | $15,474 | [Note 10. Revenue](index=17&type=section&id=Note%2010.%20Revenue) Deferred Revenue | Deferred Revenue (in thousands) | Dec 31, 2021 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2023 | | :------------------------------ | :----------- | :----------- | :----------- | :----------- | | Deferred revenue | $34,954 | $35,861 | $41,128 | $37,223 | - The company recognized **$4.8 million** of revenue in Q1 2023 that had been included in deferred revenue from the previous year, an increase from **$2.7 million** in Q1 2022[52](index=52&type=chunk) [Note 11. Financial instruments](index=18&type=section&id=Note%2011.%20Financial%20instruments) - The company categorizes financial assets and liabilities measured at fair value into a three-level hierarchy, with most approximating fair value and classified as Level 2[53](index=53&type=chunk)[54](index=54&type=chunk) Marketable Securities | Marketable Securities (March 31, 2023, in thousands) | Level 1 | Level 2 | Level 3 | Total | | :----------------------------------- | :------ | :------ | :------ | :------ | | U.S. government agencies | $108,117 | $- | $- | $108,117 | | Certificate of deposit | $- | $260,756 | $- | $260,756 | | Commercial paper | $- | $68,129 | $- | $68,129 | | Corporate bonds | $- | $144,526 | $- | $144,526 | | Asset backed securities | $- | $21,950 | $- | $21,950 | | Total | $108,117 | $495,361 | $- | $603,478 | Contingent Consideration | Contingent Consideration (in thousands) | Liability at beginning of period (Dec 31, 2022) | Increase (decrease) in fair value | Liability at end of period (Mar 31, 2023) | | :------------------------------------ | :---------------------------------------------- | :-------------------------------- | :------------------------------------------ | | Trianni | $23,505 | $(2,602) | $20,903 | | TetraGenetics | $36,760 | $946 | $37,706 | [Note 12. Commitments and contingencies](index=19&type=section&id=Note%2012.%20Commitments%20and%20contingencies) - Royalty fees expensed decreased from **$44.6 million** in Q1 2022 to nil in Q1 2023[61](index=61&type=chunk) - Accrued royalties payable decreased from **$19.3 million** at December 31, 2022, to **$3.1 million** at March 31, 2023[61](index=61&type=chunk) - No amounts have been accrued related to the repayment terms of the Canadian government's Strategic Innovation Fund (SIF) Phase 2 funding, as conditions are estimated to be non-probable as of March 31, 2023[62](index=62&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial condition and operations, highlighting decreased revenue, net loss, and R&D investments [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=20&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements regarding plans, objectives, future revenue, performance, and capital expenditures, which are subject to risks and uncertainties[64](index=64&type=chunk) - Actual results may differ materially from expectations due to factors like market acceptance, competition, partner success, R&D investments, and global economic conditions[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) [Overview](index=21&type=section&id=Overview) - AbCellera's mission is to bring better antibody drugs to patients faster by building an integrated engine for antibody drug discovery and development[71](index=71&type=chunk) - Partnership agreements include near-term payments (technology access, research fees) and downstream payments (clinical/commercial milestones, royalties on net sales)[72](index=72&type=chunk) - The company plans significant investments in R&D to enhance its engine, including building new headquarters and a small-scale manufacturing facility, and expanding operations[72](index=72&type=chunk) - As of March 31, 2023, AbCellera had **177** discovery programs under contract with **41** partners, adding **three** new programs and advancing **one** molecule into the clinic in Q1 2023[73](index=73&type=chunk) [Results of operations (Summary Table)](index=23&type=section&id=Results%20of%20operations%20%28Summary%20Table%29) Results of Operations Summary | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | Change % | | :---------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | :------- | | Total Revenue | $316,581 | $12,192 | $(304,389) | (96)% | | Total Operating Expenses | $91,631 | $77,066 | $(14,565) | (16)% | | Income (loss) from operations | $224,950 | $(64,874) | $(289,824) | (129)% | | Net earnings (loss) | $168,573 | $(40,110) | $(208,683) | (124)% | | Basic EPS | $0.59 | $(0.14) | $(0.73) | (124)% | | Diluted EPS | $0.54 | $(0.14) | $(0.68) | (126)% | [Key Factors Affecting Our Results of Operations and Future Performance](index=24&type=section&id=Key%20Factors%20Affecting%20Our%20Results%20of%20Operations%20and%20Future%20Performance) - Future revenue growth is dependent on securing additional programs under contract and partners successfully developing and commercializing discovered antibodies[77](index=77&type=chunk) - The majority of potential value for each program is in future milestone payments and royalties, making partner success critical[77](index=77&type=chunk) - Significant investments in R&D are expected to enhance the discovery and development engine, impacting financial performance[77](index=77&type=chunk) - Operational scaling, including new facilities and increased headcount, will lead to increased operating expenses[77](index=77&type=chunk) [Key Business Metrics](index=24&type=section&id=Key%20Business%20Metrics) Cumulative Business Metrics | Cumulative Metrics | March 31, 2022 | March 31, 2023 | Change % | | :------------------------- | :------------- | :------------- | :------- | | Number of discovery partners | 36 | 41 | 14 % | | Programs under contract | 158 | 177 | 12 % | | Partnered program starts | 84 | 101 | 20 % | | Molecules in the clinic | 6 | 9 | 50 % | - Molecules in the clinic include Bamlanivimab and Bebtelovimab (Marketed, EUA for COVID-19), TAK920/DNL919 (Phase 1 for Alzheimer's), and NBL-012/NBL-015/FL-301/NBL-020 (Phase 1/IND/CTA authorized for various indications)[80](index=80&type=chunk) [Summary partnership agreements with pharmaceutical and biotechnology companies that include downstream participation](index=26&type=section&id=Summary%20partnership%20agreements%20with%20pharmaceutical%20and%20biotechnology%20companies%20that%20include%20downstream%20participation) - The company has numerous partnership agreements with pharmaceutical and biotechnology companies, including recent agreements with RQ Biotechnology Ltd., AbbVie Inc., and Rallybio Corporation in 2022-2023[85](index=85&type=chunk) - These partnerships cover a range of therapeutic indications and modalities, from infectious disease to oncology and neurology, with varying numbers of targets and multi-year durations[85](index=85&type=chunk) [Results of Operations (Detailed Comparison)](index=27&type=section&id=Results%20of%20Operations%20%28Detailed%20Comparison%29) [Revenue](index=27&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Revenue) Revenue by Type | Revenue Type | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | Change % | | :------------------ | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | :------- | | Research fees | $9,333 | $10,570 | $1,237 | 13 % | | Licensing revenue | $231 | $372 | $141 | 61 % | | Milestone payments | $- | $1,250 | $1,250 | 100 % | | Royalty revenue | $307,017 | $- | $(307,017) | (100)% | | Total revenue | $316,581 | $12,192 | $(304,389) | (96)% | - The **96%** decrease in total revenue was primarily due to the absence of royalty revenue from bebtelovimab, which was no longer authorized for emergency use in the U.S. in Q4 2022[88](index=88&type=chunk) [Operating Expenses](index=27&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Operating%20Expenses) [Royalty Fees](index=27&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Royalty%20Fees) Royalty Fees | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :------------- | :-------------------------------- | :-------------------------------- | :----- | | Royalty fees | $44,637 | $- | $(44,637) | - Royalty fees decreased by **100%** due to the cessation of royalty revenues from Eli Lilly's sales of bamlanivimab and bebtelovimab[89](index=89&type=chunk) [Research and Development](index=27&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Research%20and%20Development) Research and Development Expenses | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Research and development | $26,366 | $52,647 | $26,281 | - R&D expenses increased by **100%**, reflecting continued growth in program execution, platform development, forward integration, and specific one-time investments in co-development and pre-partnered programs[90](index=90&type=chunk) [Sales and Marketing](index=28&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Sales%20and%20Marketing) Sales and Marketing Expenses | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :---------------- | :-------------------------------- | :-------------------------------- | :----- | | Sales and marketing | $2,370 | $3,771 | $1,401 | - Sales and marketing expenses increased by **59%**, driven by business development activity, consulting fees, and compensation costs[91](index=91&type=chunk) [General and Administrative](index=28&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20General%20and%20Administrative) General and Administrative Expenses | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :--------------------------- | :-------------------------------- | :-------------------------------- | :----- | | General and administrative | $14,268 | $15,134 | $866 | - General and administrative expenses increased by **6%**, primarily due to compensation-related expenses from increased headcount and higher software, licensing, and facility expenses[92](index=92&type=chunk) [Depreciation and Amortization](index=28&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Depreciation%20and%20Amortization) Depreciation and Amortization Expenses | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :-------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Depreciation and amortization | $3,990 | $5,514 | $1,524 | - Depreciation and amortization expenses increased by **38%** due to the depreciation of equipment and facilities related to capital equipment purchases[93](index=93&type=chunk) [Interest (Income)](index=28&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Interest%20%28Income%29) Interest (Income) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :------------------ | :-------------------------------- | :-------------------------------- | :----- | | Interest (income) | $(665) | $(9,759) | $(9,094) | - Interest income increased by **1368%**, primarily driven by higher interest rates on cash, cash equivalents, and marketable securities[94](index=94&type=chunk) [Grants and incentives](index=28&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Grants%20and%20incentives) Grants and Incentives | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Grants and incentives | $(5,194) | $(3,374) | $1,820 | - Grants and incentives decreased by **35%**, mainly due to reduced activity related to eligible R&D expenditures for the SIF project[95](index=95&type=chunk) [Other](index=29&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Other) Other Income/Expense | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :------ | :-------------------------------- | :-------------------------------- | :----- | | Other | $- | $(3,593) | $(3,593) | - Other income increased by **$3.6 million**, driven by a **$3.5 million** gain on fair value adjustments related to held-for-trading marketable securities and contingent consideration[96](index=96&type=chunk) [Income Tax (Recovery) Expense](index=29&type=section&id=MD%26A%20-%20Results%20of%20Operations%20-%20Income%20Tax%20%28Recovery%29%20Expense) Income Tax (Recovery) Expense | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | Change | | :---------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Income tax (recovery) expense | $62,236 | $(8,038) | $(70,274) | - Income tax expense decreased by **$70.3 million**, shifting to a recovery, primarily due to the net loss incurred and changes in effective income tax rates[97](index=97&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2023, the company had **$796.5 million** in cash, cash equivalents, and marketable securities, a decrease of **$90.0 million** since December 31, 2022[98](index=98&type=chunk) - The decrease was primarily due to increased research and development activity and continued investment in the company's discovery and development engine[98](index=98&type=chunk) - Management believes existing capital and anticipated cash flows will be sufficient for at least the next **36 months**, despite expecting operating losses from significant investments[99](index=99&type=chunk) [Cash Flows](index=29&type=section&id=Cash%20Flows) Cash Flow Summary | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :---------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | | Operating activities | $100,219 | $(44,063) | $(144,282) | | Investing activities | $(26,371) | $(149,609) | $(123,238) | | Financing activities | $(3,131) | $(458) | $2,673 | | Net increase (decrease) in cash and cash equivalents | $70,513 | $(194,343) | $(264,856) | [Operating activities](index=29&type=section&id=MD%26A%20-%20Cash%20Flows%20-%20Operating%20activities) - Net cash provided by operating activities decreased from a **$100.2 million** inflow in Q1 2022 to a **$44.1 million** outflow in Q1 2023[102](index=102&type=chunk) - The decrease is attributable to the absence of royalty revenue and a reduction in royalty-related payments, coupled with increased expenditures in R&D and company growth[103](index=103&type=chunk) [Investing activities](index=30&type=section&id=MD%26A%20-%20Cash%20Flows%20-%20Investing%20activities) - Net cash used in investing activities increased from **$26.4 million** in Q1 2022 to **$149.6 million** in Q1 2023[104](index=104&type=chunk) - This increase was primarily due to purchases of property and equipment, long-term investments, and marketable securities[104](index=104&type=chunk) [Financing activities](index=30&type=section&id=MD%26A%20-%20Cash%20Flows%20-%20Financing%20activities) - Net cash used in financing activities decreased from **$3.1 million** in Q1 2022 to **$0.5 million** in Q1 2023[105](index=105&type=chunk) - The decrease was due to lower contingent consideration payments, partly offset by proceeds from the exercise of stock options[105](index=105&type=chunk) [Critical Accounting Policies and Significant Judgements and Estimates](index=30&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgements%20and%20Estimates) - There have been no significant changes to the company's critical accounting policies and estimates during the three months ended March 31, 2023[106](index=106&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risk has not materially changed since the annual report on Form 10-K for December 31, 2022 - No material change in market risk exposure since December 31, 2022[107](index=107&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective as of March 31, 2023, with no material changes in internal control - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2023[108](index=108&type=chunk) - There were no material changes in internal control over financial reporting during the period covered by this Quarterly Report[109](index=109&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing patent infringement and civil lawsuits, with no material changes since the last annual report - The Patent Trial & Appeals Board (PTAB) upheld the validity of all challenged claims of U.S. Patent No. 10,087,408 in the Inter Partes Review against Berkeley Lights, Inc[111](index=111&type=chunk) - A decision on the company's motion to lift the stay in the patent litigation against Berkeley Lights is pending[111](index=111&type=chunk) - The company is defending against a civil lawsuit by the Estate of John William Schrader et al., alleging breach of implied partnership and patent infringement, which it believes is meritless[112](index=112&type=chunk) [Item 1A. Risk Factors](index=32&type=page&id=Item%201A.%20Risk%20Factors) This section details risks including historical losses, revenue fluctuations, R&D investments, competition, and intellectual property [Risks Related to Our Business and Strategy](index=32&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Strategy) - The company has incurred losses and anticipates significant future losses due to substantial investments in R&D, marketing, acquisitions, and infrastructure[114](index=114&type=chunk)[115](index=115&type=chunk) - Revenue has fluctuated significantly, with Q1 2023 showing no royalty revenue from COVID-19 antibodies, which previously accounted for a large portion of revenue[117](index=117&type=chunk)[118](index=118&type=chunk) - The company may need to raise additional capital for expansion, strategic investments, and operations, which could lead to dilution or restrictive debt covenants[122](index=122&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk) - Commercial success depends on the quality and acceptance of its antibody discovery and development engine by new and existing partners, requiring continuous innovation and R&D investment[128](index=128&type=chunk)[129](index=129&type=chunk) - Rapid growth requires effective management of headcount, facility expansion (e.g., new GMP facility), and operational systems, posing risks of delays, increased costs, and quality issues[146](index=146&type=chunk)[148](index=148&type=chunk) - Reliance on a limited number of suppliers for laboratory equipment and materials creates vulnerability to shortages, price fluctuations, and delays[211](index=211&type=chunk)[214](index=214&type=chunk) - Recent acquisitions (Trianni, TetraGenetics) involve integration challenges, potential unknown liabilities, and uncertainties regarding the realization of anticipated benefits[221](index=221&type=chunk)[222](index=222&type=chunk)[224](index=224&type=chunk) [Risks Related to Our Intellectual Property](index=55&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) - Inability to obtain and maintain sufficient patent, trademark, copyright, and trade secret protection could allow competitors to develop similar technologies, impairing sales and competitive advantage[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) - Issued patents may be found invalid or unenforceable if challenged, leading to loss of exclusivity or narrowed claims[237](index=237&type=chunk) - Reliance on in-licenses from third parties means loss of these rights or disputes could materially impact business and development capabilities[241](index=241&type=chunk)[242](index=242&type=chunk) - Protecting intellectual property worldwide is expensive and challenging, with varying levels of protection and enforcement in different countries[251](index=251&type=chunk)[252](index=252&type=chunk) - Difficulty in protecting the confidentiality of unpatented know-how and trade secrets could harm competitive position if disclosed or independently developed[256](index=256&type=chunk)[258](index=258&type=chunk) - Involvement in intellectual property litigation (e.g., with Berkeley Lights, Schrader) is time-intensive, costly, and can divert management attention, potentially leading to adverse outcomes like damages or injunctions[267](index=267&type=chunk)[274](index=274&type=chunk)[277](index=277&type=chunk)[282](index=282&type=chunk) - Intellectual property developed with U.S. government funding may be subject to "march-in" rights and manufacturing preferences, limiting exclusive rights[291](index=291&type=chunk) [Risks Related to Ownership of Our Common Shares](index=69&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Shares) - Failure to maintain proper and effective internal control over financial reporting could harm operating results and business operations[292](index=292&type=chunk)[293](index=293&type=chunk) - Future sales of common shares or equity awards could result in dilution for existing shareholders[294](index=294&type=chunk)[295](index=295&type=chunk) - The company does not intend to pay dividends, so returns are limited to share price appreciation[297](index=297&type=chunk) - Principal shareholders and management own a significant percentage, allowing them to exert influence over shareholder approval matters[298](index=298&type=chunk) - Potential adverse U.S. federal income tax consequences for U.S. Holders if the company or its non-U.S. subsidiaries are classified as Controlled Foreign Corporations (CFCs) or Passive Foreign Investment Companies (PFICs)[314](index=314&type=chunk)[319](index=319&type=chunk) - Changes in tax law or interpretations could increase tax liabilities or compliance costs[322](index=322&type=chunk)[323](index=323&type=chunk) [General Risk Factors](index=76&type=section&id=General%20Risk%20Factors) - The ongoing COVID-19 pandemic has caused and may continue to cause delays, disruptions, and increased costs, impacting R&D, operations, and sales[326](index=326&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) - The ongoing military action between Russia and Ukraine and related sanctions could adversely affect the business, financial condition, and patent administration[329](index=329&type=chunk)[330](index=330&type=chunk) - Potential impairment charges for goodwill, identifiable intangible assets, or other long-lived assets from acquisitions could impact results and stock value[331](index=331&type=chunk) - The market price of common shares is highly volatile due to various factors, including financial results, competition, and general economic conditions[334](index=334&type=chunk)[337](index=337&type=chunk) - Adverse developments in the financial services industry (e.g., bank failures) could impact liquidity, access to funds, and the ability to meet obligations[341](index=341&type=chunk)[342](index=342&type=chunk)[344](index=344&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[346](index=346&type=chunk) [Item 5. Other Information](index=80&type=section&id=Item%205.%20Other%20Information) No other information to report for the period - No other information to report[346](index=346&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with this Quarterly Report on Form 10-Q, including certifications and XBRL documents - Includes certifications of Principal Executive Officer and Principal Financial Officer (Exhibits **31.1**, **31.2**, **32.1**, **32.2**)[348](index=348&type=chunk) - Includes Inline XBRL Instance Document and Taxonomy Extension Documents (Exhibits **101.INS**, **101.SCH**, **101.CAL**, **101.DEF**, **101.LAB**, **101.PRE**)[348](index=348&type=chunk) [Signatures](index=82&type=section&id=Signatures) The report was duly signed on May 4, 2023, by the CEO and CFO of AbCellera Biologics Inc - The report was signed by Carl L.G. Hansen, Ph.D., Chief Executive Officer, and Andrew Booth, Chief Financial Officer, on May 4, 2023[350](index=350&type=chunk)

AbCellera FULL YEAR 2022 BUSINESS UPDATE FEBRUARY 21, 2023 DISCLAIMER ULL YEAR 2022 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-lo ...

AbCellera Biologics Inc. (NASDAQ:ABCL) Q4 2022 Earnings Conference Call February 21, 2023 5:00 PM ET Company Participants Tryn Stimart - Chief Legal and Compliance Officer Carl Hansen - Chairman, Chief Executive Officer, and President Andrew Booth - Chief Financial Officer Conference Call Participants Tiago Fauth - Credit Suisse Andrea Tan - Goldman Sachs Gary Nachman - BMO Robyn Karnauskas - Truist Gaurav Goparaju - Berenberg Antonia Borovina - Bloom Burton Operator Good afternoon. And welcome to AbCellera ...

Financial Performance and Projections - The company expects to generate losses and negative operating cash flow in the near-to-medium term due to the cessation of royalties from its COVID-19 program, which previously drove profitability[25]. - The company has approximately $900 million in liquidity, positioning it well to continue executing its strategy despite anticipated short-term losses[24]. - The total revenue from the COVID-19 antibody program reached $994 million as of December 31, 2022[98]. - The company has generated positive operating cash flow cumulatively since its inception in 2012 and in every year since 2018[88]. - The company expects to generate losses and negative operating cash flow in the near-to-medium term due to the cessation of royalties from its COVID-19 program[88]. Research and Development - The company has invested over $500 million in its antibody discovery and development engine, which has generated over $425 million in cumulative earnings since its incorporation in 2012[24]. - The average biologic drug takes over 10 years to reach the market, with development costs exceeding $1 billion, highlighting the long timelines and high costs associated with drug development[17]. - The company aims to reduce the time from idea to antibody drug candidate ready for clinical testing from 3-5 years to under 2 years[44]. - The company has made significant investments in technology development to enhance the likelihood of success for drug candidates, particularly in high unmet medical needs areas[120]. - The company aims to reduce drug discovery and development timelines to two years or less for target nomination to IND filing[122]. Partnerships and Collaborations - As of December 31, 2022, the company had 174 programs under contract with 40 unique partners, with 149 including downstream participation in the form of milestones and royalty stakes[22]. - The company has started over 100 drug discovery programs, diversifying its portfolio to reduce risk associated with single drug development[22]. - The company has entered contracts for 174 antibody discovery and development programs as of December 31, 2022[101]. - The company has initiated 75 partner-initiated programs with downstream participation and one pre-partnered program, resulting in a mean royalty rate of 3.6% as of December 31, 2022[130]. - The company has started six partner-initiated co-development programs, enhancing the potential economics in its portfolio[106]. Market and Industry Insights - Therapeutic antibodies generated nearly $250 billion in global sales in 2022, expected to grow to over $350 billion by 2027, representing a CAGR of 9%[57]. - The biotechnology sector is expected to be a significant growth opportunity over the next 30 years, particularly in therapeutic antibodies[56]. - Over 50% of new-drug approvals in the U.S. between 2011 and 2021 originated from smaller biotechnology companies with annual revenues below $500 million[77]. - The mean peak-year sales for currently marketed monoclonal antibody drugs are estimated at approximately $3 billion[58]. - Accelerating the path to market by one year could improve the value of an average approved treatment by over $100 million in net present value[60]. Intellectual Property and Competitive Advantage - The company emphasizes the importance of intellectual property protection for its technologies, as failure to maintain such protection could impair its competitive advantage[12]. - The company has over 80 issued or allowed patents and over 80 pending patent applications worldwide as of December 31, 2022[136]. - The average negotiated royalty rate for partner-initiated programs has increased from 2.4% (2015-2019) to 4.1% (2020-2022), with a quarter of new programs achieving rates above 5%[130]. - The total hypothetical value of clinical and commercial milestone payments for the company's portfolio is estimated at $6.6 billion as of December 31, 2022[132]. - The company believes that its integrated engine improves efficiencies by prioritizing an end-to-end workflow over stand-alone tools[80]. Operational Growth and Team Development - The company has grown to a team of approximately 500 people across four countries and three continents, reflecting its expansion and investment in operational efficiency[16]. - The voluntary turnover rate for the company in 2022 was less than 4%, with a team growth of 28% from 386 to 495 full-time employees[55]. - The company’s research and development team comprised approximately 47% scientists, 36% business professionals, and 17% engineers and data scientists as of December 31, 2022[53]. - The company has active construction projects on three buildings to expand facilities by more than 500,000 square feet, supported by CAD $175.6 million in financing from the Government of Canada[43]. - The company believes it is in material compliance with applicable environmental laws, which govern the handling and disposal of hazardous substances[176]. Financial Management and Risks - As of December 31, 2022, the company had cash and cash equivalents of $386.5 million, restricted cash of $28.1 million, and marketable securities of $500.0 million[531]. - A 10% change in interest rates would not have a material effect on the fair market value of cash, cash equivalents, restricted cash, and marketable securities due to their short-term nature[531]. - The company is exposed to foreign currency risk due to fluctuations between the U.S. dollar and the Canadian dollar, with revenue earned primarily in U.S. dollars and expenses incurred in multiple currencies[533]. - Inflation may increase costs related to labor, raw materials, and equipment, potentially impacting the company's financial condition and operating goals if not managed effectively[534]. - The company has not entered into any hedging arrangements for foreign currency risk but will reassess its approach as international operations grow[533].

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was approximately $101 million, driven largely by $93 million in royalties from bebtelovimab shipments [16][20] - The company reported a net profit of approximately $27 million, compared to a loss of roughly $21 million in Q3 2021 [20] - Operating cash flows for the first nine months of 2022 contributed $246 million to cash, with over $850 million in cash equivalents and marketable securities at the end of the quarter [20][21] Business Line Data and Key Metrics Changes - The company started work on four new discovery programs in Q3 2022, bringing the cumulative total to 92 program starts [14] - The total number of molecules in the clinic increased to seven, with one new molecule entering clinical trials for Alzheimer's disease [15] - The company ended Q3 2022 with 164 programs under contract with 38 unique partners [14] Market Data and Key Metrics Changes - The company noted that bebtelovimab was the only authorized monoclonal antibody effective against all variants of concern for much of Q3 [13] - Recent variants BQ1 and BQ1.1 are likely resistant to bebtelovimab, prompting the identification of a new lead antibody candidate [13] Company Strategy and Development Direction - The company's strategy focuses on being the best in the world at bringing antibody therapies from target to clinic and building a diversified portfolio of stakes in future antibody drugs [9] - The company aims to smooth out the binary risk of biotech investing by providing access to a curated slice of the market enriched for its best parts [9] - The company is investing in co-development partnerships to enhance potential economics and has initiated seven programs under this structure with four different partners [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive position and ability to address difficult targets, particularly in the GPCR and Ion Channel spaces [10][13] - The company anticipates sharing data on clinical candidates from ongoing technology development efforts in 2023 [13] - Management believes they have sufficient liquidity to fund growth and investments well beyond the next three years [21] Other Important Information - The company has nearly $900 million in total cash equivalents and marketable securities, providing a solid foundation for future innovation [8] - The company is on track to have its GMP facility operational by the end of 2024, with commercial batches expected to begin in 2025 [31] Q&A Session Summary Question: Can you discuss the discovery process for GPCR targets? - Management explained that GPCRs and Ion Channels are challenging due to poor immunogenicity and small epitopes, requiring a latticework of technologies for successful discovery [22][23] Question: Is there any impact on program starts due to increased caution in capital spending by Biopharma? - Management noted that while there is macroeconomic caution, they are prioritizing high-value deals and expect to see fewer but more valuable programs [28] Question: Can we expect similar announcements for future programs entering preclinical studies? - Management indicated that they typically do not announce preclinical advancements unless significant progress is made, as seen with the Regeneron program [30] Question: What is the timeline for the new COVID Mab? - Management expects the timeline for the new antibody candidate to be similar to previous COVID-19 developments, pending a clear regulatory path [27] Question: Can you provide updates on the GMP facility? - Management confirmed that the GMP facility is on track for completion by the end of 2024, with commercial batches expected in 2025 [31] Question: What is the key selling point for the Regeneron deal? - Management stated that the partnership leverages their capabilities to move stuck programs forward, particularly in challenging target classes like GPCRs [46]