AbCellera Biologics(ABCL)2024-08-07 00:29Financial Data and Key Metrics Changes - AbCellera reported revenue of 10 million in Q2 2023, primarily due to a shift in focus towards internal and co-development programs [13][14] - The company experienced a net loss of roughly 31 million in the same quarter of the previous year, resulting in a loss of 72 million, with total cash, cash equivalents, and marketable securities at 700 million in cash and equivalents and 900 million in total available liquidity to execute its strategy [12][16] - The company noted a trend of decreasing research fee revenue as it focuses more on internal programs, which is expected to continue in the coming quarters [14][41] Company Strategy and Development Direction - The company is prioritizing three main areas: advancing its internal pipeline, completing investments in platforms and facilities, and executing select strategic partnerships [6] - AbCellera is focusing on T cell engager (TCE) programs, with ongoing development in oncology and autoimmune indications, aiming for better safety and efficacy profiles compared to existing therapies [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of their TCE platform, highlighting the progress made in preclinical studies and the potential for differentiation in the market [20][22] - The company is actively engaging with key players in the TCE space and is focused on translating in vitro data into in vivo models [19][20] Other Important Information - AbCellera announced an expansion of its partnership with Eli Lilly, building on a successful collaboration that began in March 2020 [11] - The company congratulated partners Abdera and Invetx on their recent advancements, indicating strong collaboration and potential future revenue streams from these partnerships [10][11] Q&A Session Summary Question: Interest in advancing TCE programs in oncology vs autoimmune indications - Management indicated that they are advancing multiple TCE programs simultaneously and are focused on demonstrating efficacy in vivo models before making further development decisions [19][20] Question: Competitive landscape for CD19 TCE in autoimmune diseases - Management acknowledged the crowded space but emphasized their focus on developing a product with strong efficacy and convenience compared to existing therapies [25][26] Question: Differentiation of OX40 ligand vs OX40 approaches - Management discussed the potential of their OX40 program and its long-lasting effects, positioning it as a best-in-class asset in the treatment of atopic dermatitis and other autoimmune conditions [31][32] Question: Economics of collaborations with large partners - Management expressed satisfaction with the collaboration renewals, indicating that the financial components have evolved positively, reflecting the value of their platform [44][45] Question: Impairment assessment in the quarter - Management clarified that the impairment was related to contingent consideration and in-process R&D from previous acquisitions, which was non-cash and roughly offsetting [47] Question: Engagement levels with new partners - Management noted a focus on building internal programs and strategic partnerships, indicating a lower volume of new partnerships compared to previous years [51] Question: Status of Viking ArrowMark collaboration - Management described the collaboration as being in early stages but expressed optimism about its potential to create new companies once development candidates are identified [53]