AbCellera Biologics(US:ABCL)2022-05-11 01:55Financial Data and Key Metrics Changes - The company ended Q1 2022 with over $780 million in cash, cash equivalents, and marketable securities, positioning it well for long-term strategy execution [7][41] - Revenue for Q1 2022 was $317 million, primarily driven by $307 million in royalties from bamlanivimab and bebtelovimab [32] - Earnings for Q1 2022 were reported at $168 million, compared to approximately $117 million in Q1 2021, resulting in earnings per share of $0.59 on a basic basis [38][39] Business Line Data and Key Metrics Changes - The company started six new programs in Q1 2022, bringing the cumulative total to 84 program starts, with a year-over-year increase in program starts [27][28] - There are currently 158 programs under contract, a 33% increase compared to Q1 2021 [28] - The company has seen a total of six molecules advance into the clinic, with one additional molecule receiving IND approval from the FDA [29][31] Market Data and Key Metrics Changes - The company anticipates that the majority of total 2022 revenue will come from royalties on COVID antibodies, with 600,000 doses of bamlanivimab shipped to the U.S. government in Q1 [33][35] - The U.S. government retains an option to purchase an additional 500,000 doses, which could further impact revenue [33] Company Strategy and Development Direction - The company aims to establish a dominant competitive advantage in the therapeutic antibody space by investing in technology, workforce, and infrastructure [8][12] - Investments are focused on building a centralized engine for antibody discovery, executing partner programs, and developing new technology to unlock new target classes [9][10] - The company is prioritizing deals with greater downstream participation to build a diversified portfolio [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong liquidity position, which allows for continued investment in capacity and platform capabilities [42] - The company is not pivoting to internal drug development but is focused on building a competitive advantage in the discovery process [49][50] - There is a strong uptick in business development discussions, particularly in response to recent data presented at industry conferences [62] Other Important Information - The company has invested significantly in expanding its facilities, with three new facilities brought online in Q1 2022 [14] - Over 25% of the R&D team is dedicated to software development, data science, and machine learning, which is seen as essential for scaling antibody discovery [16] Q&A Session Summary Question: Comparison of Empirico experience and future partnerships - Management clarified that the option to co-fund programs is not co-development but allows for capital allocation based on confidence in the indication and quality of molecules [45] Question: Shift towards internal development - Management reiterated that the focus remains on supporting partners and not pivoting to internal programs, although long-range R&D efforts are ongoing [49][50] Question: Irregularity in program starts - Management acknowledged that program starts may be irregular but emphasized the importance of long-term trends and increased work per program [52][53] Question: Impact of market conditions on business development - Management noted a strong uptick in business development activity, suggesting that their model is attractive in a liquidity-constrained environment [62][64] Question: Clinical data from molecules in the clinic - Management expects a steady stream of molecules entering the clinic and anticipates milestone revenue in the coming years [75] Question: CD3 antibodies and partnership potential - Management indicated strong interest from partners in the CD3 antibodies and plans to validate their technology before pursuing partnerships [79]