AbCellera Biologics(ABCL) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a revenue of almost $29 million for the year, a decrease from approximately$38 million in 2023, primarily due to a shift towards internal and co-development programs [37] - Research and development expenses were approximately $167 million, down$8 million from the previous year, reflecting a one-time payment of about $32 million made in 2023 [38] - The net loss for the year was roughly$163 million, compared to a loss of about 146 million the previous year, which included non-cash impairment charges for in-process R&D of approximately 47 million [39] Business Line Data and Key Metrics Changes - The company has a cumulative total of 96 partner-initiated programs with downstream participation, with 14 programs still actively led or co-led by the company [30][33] - The company initiated two new partnerships in the first half of 2024 and expanded one existing collaboration, while also reducing new discovery partnership activities [25][9] Market Data and Key Metrics Changes - The company is focusing on the therapeutic areas of oncology, neurology, and immunology, which reflect the broader industry activity [35] - The total addressable market for the lead program ABCL635 is estimated to be at least $2 billion in annual sales, while the atopic dermatitis market for ABCL575 is already over$10 billion [17][20] Company Strategy and Development Direction - The company is transitioning from a platform and partnership model to a clinical-stage biotech, with a focus on building an internal pipeline and reducing new discovery partnerships [7][61] - The strategic focus includes selecting programs based on unmet needs, commercial opportunities, differentiation, and clear development paths [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's liquidity position, with over $800 million available to execute its strategy [10][43] - The company plans to initiate Phase 1 clinical trials for its lead programs in 2025 and expects to complete its transition to a clinical-stage biotech [27][24] Other Important Information - The company has completed its move to a new headquarters and is on track to bring its clinical manufacturing facility online in 2025 [9] - The company has received commitments for funding from the Government of Canada's Strategic Innovation Fund and the government of British Columbia, which will support its GMP facility and internal pipeline advancements [42] Q&A Session Summary Question: What competencies are needed for clinical trials across multiple disease areas? - Management stated that they are building up translational science and clinical development teams to support their first two programs moving into clinical development [47][48] Question: Is there a finite number of candidates under the AbbVie collaboration? - Management confirmed that they are excited about the collaboration and are working on multiple but a small number of targets [54] Question: What is the attrition rate for partner-initiated programs? - Management indicated that the attrition rate is consistent with expectations, with over half of the programs still progressing after being handed back to partners [60] Question: Why reduce the number of partnerships pursued? - Management explained that the transition to a clinical-stage biotech necessitated a focus on internal programs, while still seeking opportunities in TCE collaborations [62] Question: What preparations are being made for the upcoming CTA filings? - Management confirmed that extensive preparations have been made for both programs, with no noteworthy special considerations at this time [83]