AbCellera Biologics(ABCL) - 2021 Q4 - Annual Report

Discovery Programs and Partnerships - As of December 31, 2021, the company had 156 discovery programs either completed, in progress, or under contract with 36 partners[12] - The company aims to maximize the value of its work through partnerships, as demonstrated by its collaboration with Lilly during the COVID-19 pandemic[20] - The company aims to expand its partnerships and has contracts for over 155 antibody discovery programs, with over 80% including multiple targets[30] - The company has partnerships with multiple pharmaceutical and biotechnology companies, including up to 10 targets with Everest Medicines and up to 9 targets with Eli Lilly[67] - The company’s programs are designed to generate milestone payments upon reaching preclinical, clinical, regulatory, and commercial milestones[68] Financial Performance - Revenue for the years ended December 31, 2020 and 2021 was $233.2 million and $375.2 million, respectively, with net income of $118.4 million and $153.5 million[25] - In 2020 and 2021, the company recognized $198.3 million and $327.3 million in royalty payments related to bamlanivimab sales, respectively[24] - The total potential milestones for the company's portfolio of programs under contract is $4.6 billion, not adjusted for probability of success[73] - The company has maintained positive operating cash flow cumulatively since its inception in 2012 and in every year since 2018[25] Technology and Innovation - The company’s antibody discovery platform enables rapid advancement to clinical testing, exemplified by the development of bamlanivimab, which reached clinical testing 90 days after initiation[12] - The company has integrated high-throughput RepSeq technology with single-cell screening technology to enhance antibody profiling capabilities[17] - The company’s technology stack includes proprietary immunization and genetically engineered mouse technologies, enhancing the diversity of human antibodies[17] - The company’s technology stack can go from screening to hundreds of antibody sequences in three days and from sequences to characterized proteins in less than ten days[59] - The company’s technology stack includes capabilities in antibody sourcing, searching, finding, analyzing, and engineering, leveraging advanced methods like AI and genomics[78] - The company has developed machine learning and AI methods to automate data analysis and improve the efficiency of antibody discovery[111] Market Overview - The antibody-based therapeutics market accounted for over $140.0 billion in sales worldwide in 2019, representing five of the top 10 selling therapeutics[13] - Antibody-based therapeutics generated over $140.0 billion in sales in 2019, representing 70% of all biologics sales, with 36 therapeutics achieving blockbuster status (sales over $1.0 billion) [43] - The antibody therapeutics market is projected to reach approximately $260.0 billion by 2025, reflecting a CAGR of about 11% from 2019 to 2025 [45] - The cell therapy market is expected to grow from $1.0 billion in 2019 to over $17.0 billion by 2025, reflecting a CAGR of approximately 60% [45] Research and Development - The company has invested in research and development to enhance its antibody discovery platform, which is inherently risky and may affect operating results[9] - The company has developed immunization methods that allow for antibody generation against targets 100% identical to the host species, enhancing cross-reactivity for preclinical studies[85] - The company screened approximately 5.8 million single cells to identify over 500 unique anti-SARS-CoV-2 antibodies, yielding 220,000 data points for analysis[133] - Rapid antibody screening pipelines were established, allowing for the isolation of potent neutralizers in less than 96 hours during previous pandemic responses[131] Intellectual Property - The company has a robust IP portfolio, including foundation patents related to microfluidic single-cell screening and bispecific antibody engineering[37] - The company has over 70 issued or allowed patents and over 70 pending patent applications worldwide, including over 30 issued U.S. patents[160] - The Trianni intellectual property portfolio includes eight issued patents related to transgenic animals, with patents expected to expire in July 2031[188] - The company has several pending U.S. non-provisional patent applications for high throughput screening of multispecific antibody libraries and anti-coronavirus antibodies[200] Operational Challenges - The company has identified a material weakness in its internal control over financial reporting, which could impact investor confidence[9] - The life sciences and biotech platform technology market is highly competitive, and the company must effectively manage growth to sustain revenue[9]