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AbCellera Biologics(ABCL) - 2024 Q4 - Annual Report
ABCLAbCellera Biologics(ABCL)2025-02-27 21:24
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Investment and Financials - The company has invested over 600millioninbuildingitsinfrastructureandexpandingcapabilitiessinceitsincorporationin2012[33].−Thecompanyhasgeneratedover600 million in building its infrastructure and expanding capabilities since its incorporation in 2012[33]. - The company has generated over 100 million in cumulative earnings since 2012 and has approximately 840millioninavailableliquidityasofDecember31,2024[33].−ThecompanysecuredCAD840 million in available liquidity as of December 31, 2024[33]. - The company secured CAD 300 million (222.3million)innon−dilutivefinancinginMay2023tobuildnewcapabilitiesfordevelopingandmanufacturingantibodymedicines[57].−Thecompanyexpectstoincurlossesandnegativeoperatingcashflowinthenear−to−mediumtermduetoongoinginvestmentsinitspipeline[112].−Thecompanyhasalong−termcapitalallocationstrategy,focusingonbuildingintellectualcapitalandinfrastructuretosupportfuturedrugdevelopment[113].ResearchandDevelopment−Approximately40222.3 million) in non-dilutive financing in May 2023 to build new capabilities for developing and manufacturing antibody medicines[57]. - The company expects to incur losses and negative operating cash flow in the near-to-medium term due to ongoing investments in its pipeline[112]. - The company has a long-term capital allocation strategy, focusing on building intellectual capital and infrastructure to support future drug development[113]. Research and Development - Approximately 40% of the total research and development spend in 2024 is allocated to platform development, enhancing capabilities for future drug discovery[56]. - The company is advancing a pipeline of more than 20 internal discovery programs across multiple modalities and indications[26]. - The company aims to reduce the time from target nomination to IND filing to two years or less through ongoing investments in integrated target-to-clinic capabilities[154]. - The company has developed its T-cell-engager platform and initiated internal programs targeting eight important tumor targets, alongside 10 internal programs focused on GPCRs and ion channels[139]. - The company’s investments in technology development are aimed at increasing the probability of success for its drug development programs, particularly in high unmet medical need areas[151]. Clinical Trials and Drug Development - The company expects to submit Clinical Trial Applications for its internal programs ABCL635 and ABCL575 in Q2 2025[26]. - ABCL635, targeting metabolic and endocrine conditions, is anticipated to enter clinical trial authorization (CTA) submission in Q2 2025, with a potential market exceeding 2 billion in annual sales[62]. - ABCL575, a monoclonal antibody for atopic dermatitis, is also expected to submit a CTA in Q2 2025, leveraging a clinically validated mechanism to modulate inflammation[63][64]. - The company advanced two drug programs, ABCL635 and ABCL575, into IND/CTA-enabling studies in 2023, with plans for clinical trial authorizations in 2025[61]. - The company plans to start its first clinical trial in 2025, which will require compliance with numerous regulations in the life sciences sector[217]. Partnerships and Collaborations - The company has established multiple partnership agreements with pharmaceutical and biotechnology companies, including Eli Lilly and Company for multi-target, multi-year projects in immunology and neuroscience, announced on July 31, 2024[93]. - Total potential milestone payments from partnership agreements amount to 8.69billion,with8.69 billion, with 5.51 billion expected from commercial milestones[97]. - The company has initiated 96 partner-initiated programs as of December 31, 2024, which could yield milestone and royalty payments[92]. - The company has successfully completed the agreed scope of work for 76 out of 96 partner-initiated programs, with 51 programs actively progressing[143]. - The company earned over 950millionincombinedroyaltiesfromcommercialsalesofCOVID−19antibodyassetsdevelopedinpartnershipwithLillyfrom2020to2022[138].MarketandCompetitiveLandscape−Thebiotechnologysectorisprojectedtobeasignificantgrowthopportunity,withglobaltherapeuticantibodysalesnearing950 million in combined royalties from commercial sales of COVID-19 antibody assets developed in partnership with Lilly from 2020 to 2022[138]. Market and Competitive Landscape - The biotechnology sector is projected to be a significant growth opportunity, with global therapeutic antibody sales nearing 300 billion in 2023 and expected to exceed 450billionby2028,reflectingaCAGRofover10450 billion by 2028, reflecting a CAGR of over 10%[80]. - The therapeutic antibody market is characterized by a significant number of blockbuster drugs, with around 50 achieving annual sales exceeding 1 billion in 2023[80]. - Over 50% of new-drug approvals in the U.S. from 2011 to 2021 originated from smaller biotechnology companies with annual revenues below 500million,indicatingacompetitivelandscape[101].−Thecompanyfacescompetitionfromvarioussources,includinglargepharmaceuticalcompaniesandspecializedbiotechnologyfirms,intheantibodytherapeuticsmarket[106].−Thecompanyaimstounlocknewmarketsegmentsandimprovediscoveryspeed,estimatingthatacceleratingthepathtomarketbyoneyearcouldenhancethevalueofanaverageapprovedtreatmentbyover500 million, indicating a competitive landscape[101]. - The company faces competition from various sources, including large pharmaceutical companies and specialized biotechnology firms, in the antibody therapeutics market[106]. - The company aims to unlock new market segments and improve discovery speed, estimating that accelerating the path to market by one year could enhance the value of an average approved treatment by over 100 million[88]. Workforce and Employee Engagement - The voluntary turnover rate for the company was 4.7% in 2024, indicating strong employee engagement and retention[77]. - The company employs a workforce comprising approximately 62% scientists, 14% engineers and data scientists, and 24% business professionals, with over 54% holding advanced degrees[75]. Intellectual Property and Patents - The company has developed an expansive patent portfolio with over 100 issued or allowed patents and over 70 pending applications worldwide as of December 31, 2024[172]. - The company utilizes various forms of intellectual property protection, including trademarks, copyrights, and trade secrets, to safeguard its proprietary rights[173]. - The company acquired Trianni, including all existing intellectual property and issued patents related to the Trianni mouse, with patents expected to expire in July 2031[196][197]. - The Trianni intellectual property portfolio includes 14 issued patents in various jurisdictions, focusing on transgenic animals and methods of use[197]. - The company has a patent family directed to enhanced production of immunoglobulins, which includes six issued patents and four pending applications, with expiration expected in February 2037[198]. Regulatory Compliance - The company is subject to various regulations governing clinical studies and commercial sales, impacting its ability to develop and sell therapeutic products[219]. - The company is subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, which could impact its operations and interactions in the healthcare sector[222]. - The company maintains compliance with environmental laws, which govern the handling and disposal of hazardous substances used in its operations[221].