AbCellera Biologics(US:ABCL)2024-05-08 03:00Financial Data and Key Metrics Changes - AbCellera reported revenue of $10 million in Q1 2024, a decrease from approximately $11 million in Q1 2023, primarily driven by research fees from partner-initiated programs [12][13] - Research and development expenses for the quarter were approximately $39 million, which is about $13 million less than the same period last year, reflecting the absence of one-time expenses incurred in Q1 2023 [13][14] - The net loss for the quarter was roughly $41 million, compared to a loss of $40 million in the same quarter of the previous year, with a loss per share of $0.14 [14][16] Business Line Data and Key Metrics Changes - The company started work on three partner-initiated programs in Q1 2024, bringing the cumulative total to 90 partner-initiated programs [12] - No additional molecules advanced into the clinic during the quarter, maintaining a cumulative total of 13 molecules that have reached the clinic [12] Market Data and Key Metrics Changes - AbCellera has approximately $725 million in cash and equivalents, along with about $240 million in available government funding, providing a strong liquidity position to execute its strategy [12][16] - The company expects to continue its investments in CMC and GMP manufacturing capabilities, with the first engineering runs anticipated in 2025 [12][16] Company Strategy and Development Direction - The company is focusing on three main priorities: advancing its internal pipeline, completing platform investments for clinical manufacturing capabilities, and executing strategic partnerships [7] - AbCellera aims to leverage its TCE platform for both internal programs and strategic partnerships, with a focus on oncology and autoimmunity [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of the TCE platform and its ability to generate differentiated therapies for cancer and liquid tumors [8][22] - The company is actively engaging in discussions for potential partnerships and remains confident in the value of its platform [21][46] Other Important Information - AbCellera announced collaborations with Biogen and Viking/ArrowMark, focusing on novel targets and the creation of asset-based companies [10][11] - The company has secured $220 million from the Governments of Canada and British Columbia, which is not reflected on the balance sheet but contributes to total available liquidity [16] Q&A Session Summary Question: What additional data is needed to spur strategic interest in a transaction? - Management indicated that the focus is on translating in vitro data to in vivo models and ultimately to the clinic, which is essential for demonstrating the platform's value [20] Question: Would the company consider advancing one of the TCEs independently? - Management confirmed that they see the platform as a source of internal programs and are open to advancing promising candidates independently [24] Question: Can you provide details on the new partner-initiated programs? - Specific details about the partners and therapies were not disclosed, but the distribution of programs aligns with historical trends [42] Question: What is the status of the GMP Biologic Manufacturing Facility? - There have been no changes to the timing, with the first engineering batches expected in 2025 [36] Question: How does the Biogen partnership compare to other offerings? - The Biogen deal is seen as an exciting opportunity to address the challenge of transporting biologics across the blood-brain barrier [39] Question: How will the company decide which TCEs to develop internally? - Decisions will be based on a combination of scientific data, commercial considerations, and the competitive landscape [31] Question: What is the outlook for operating expenditures as assets move into the clinic? - The company indicated that the pace of bringing assets into the clinic will depend on scientific and clinical data, making it difficult to predict a regular trajectory [63]