AbCellera Biologics(US:ABCL)2022-11-09 02:14Financial 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]