- Total revenue of $46 million, compared to $28 million in Q2
2021
- Four program starts in the quarter bringing cumulative total to
88, up 47% from Q2 2021
- Net loss of ($0.02) per share on a basic and diluted basis
compared to ($0.01) (basic and diluted) per share in Q2 2021
AbCellera (Nasdaq: ABCL), a technology company with a
centralized operating system for next-generation antibody
discovery, today announced financial results for the second quarter
of 2022. All financial information in this press release is
reported in U.S. dollars, unless otherwise indicated.
“We have further strengthened our balance sheet as we execute on
our strategy, extending our competitive advantage in antibody
discovery and creating value through partnerships,” said Carl
Hansen, Ph.D., CEO and President of AbCellera. “We continue to
invest in technology development, including advancements in our CD3
bispecific platform for creating optimal T-cell-engager therapies
for cancer, which we believe will create significant value for
patients, our partners, and our shareholders.”
Q2 2022 Business Summary
- Earned $46 million in total revenue.
- Incurred net loss of $7 million, compared to a net loss of $2
million in Q2 2021.
- Added six programs under contract with two new partners,
resulting in a cumulative total of 164 programs under contract with
38 different partners.
- Started discovery on four programs, bringing the cumulative
number of program starts to 88.
- Continuing to report six molecules cumulatively advanced to the
clinic.
Key Business Metrics
Cumulative Metrics
June 30, 2021
June 30, 2022
Change %
Number of discovery partners
33
38
15
%
Programs under contract
138
164
19
%
Program starts
60
88
47
%
Molecules in the clinic
4
6
50
%
AbCellera added six discovery programs in Q2 to reach a
cumulative total of 164 discovery programs as of June 30, 2022 (up
from 138 on June 30, 2021), that are either completed, in progress,
or under contract with 38 different partners (up from 33 on June
30, 2021). AbCellera started discovery on an additional four
programs in Q2 to reach a cumulative total of 88 program starts (up
from 60 on June 30, 2021). AbCellera’s partners have advanced a
cumulative total of six molecules into the clinic.
Discussion of Q2 2022 Financial Results
- Revenue – Total revenue was $45.9 million, compared to
$27.6 million in Q2 2021. Royalties associated with bebtelovimab
were $33.2 million. The partnership business produced research fees
of $12.5 million, compared to $5.2 million in Q2 2021. Licensing
revenue was $0.1 million.
- Research & Development (R&D) Expenses – R&D
expenses were $26.7 million, compared to $15.0 million in Q2 2021,
reflecting continuing investments in the capacity and capabilities
of AbCellera’s discovery and development platform.
- Sales & Marketing (S&M) Expenses – S&M
expenses were $3.1 million, compared to $1.3 million in Q2
2021.
- General & Administrative (G&A) Expenses –
G&A expenses were $14.4 million, compared to $11.2 million in
Q2 2021, with the increase driven by investments to support the
growth of the company.
- Net Loss – Net loss was $6.8 million, or ($0.02) per
share on both a basic and diluted basis compared to a net loss of
$2.3 million, or ($0.01) per share on a basic and diluted basis in
Q2 2021.
- Liquidity – $1,022 million of cash, cash equivalents,
and marketable securities.
Conference Call and Webcast
AbCellera will host a conference call and live webcast to
discuss these results today at 2:00 p.m. Pacific Time (5:00 p.m.
Eastern Time).
The live webcast of the earnings conference call can be accessed
on the Events and Presentations section of AbCellera’s Investor
Relations website. A replay of the webcast will be available
through the same link following the conference call.
About AbCellera Biologics Inc.
AbCellera is a technology company that searches, decodes, and
analyzes natural immune systems to find antibodies that its
partners can develop into drugs to prevent and treat disease.
AbCellera partners with drug developers of all sizes, from large
pharmaceutical to small biotechnology companies, empowering them to
move quickly, reduce costs, and tackle the toughest problems in
drug development. For more information, please visit
www.abcellera.com.
Definition of Key Business Metrics
We regularly review the following key business metrics to
evaluate our business, measure our performance, identify trends
affecting our business, formulate financial projections, and make
strategic decisions. We believe that the following metrics are
important to understand our current business. These metrics may
change or may be substituted for additional or different metrics as
our business develops. For example, as our business matures and to
the extent programs are discontinued, we anticipate updating these
metrics to reflect such changes.
Number of discovery partners represents the unique number
of partners with whom we have executed partnership contracts. We
view this metric as an indication of the competitiveness of our
technology stack and our current level of market penetration. The
metric also relates to our opportunities to secure programs under
contract.
Programs under contract represent the number of antibody
development programs that are under contract for delivery of
discovery research activities. A program under contract is counted
when a contract is executed with a partner under which we commit to
discover antibodies against one selected target. A target is any
relevant antigen for which a partner seeks our support in
developing binding antibodies. We view this metric as an indication
of commercial success and technological competitiveness. It further
relates to revenue from technology access fees. The cumulative
number of programs under contract with downstream participation is
related to our ability to generate future revenue from milestone
payments and royalties.
Program starts represent the number of unique programs
under contract for which we have commenced the discovery effort.
The discovery effort commences on the later of (i) the day on which
we receive sufficient reagents to start discovery of antibodies
against a target and (ii) the day on which the kick-off meeting for
the program is held. We view this metric as an indication of our
operational capacity to execute on programs under contract. It is
also an indication of the selection and initiation of discovery
projects by our partners and the resulting near-term potential to
earn research fees. Cumulatively, program starts with downstream
participation indicate our total opportunities to earn downstream
revenue from milestone fees and royalties in the mid- to
long-term.
Molecules in the clinic represent the count of unique
molecules for which an Investigational New Drug, or IND, New Animal
Drug, or equivalent under other regulatory regimes, application has
been approved based on an antibody that was discovered either by us
or by a partner using licensed AbCellera technology. Where the date
of such application approval is not known to us, the date of the
first public announcement of a clinical trial will be used for the
purpose of this metric. We view this metric as an indication of our
near- and mid-term potential revenue from milestone fees and
potential royalty payments in the long term.
AbCellera Forward-looking Statements
This press release contains forward-looking statements,
including statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The
forward-looking statements are based on management’s current
beliefs and assumptions and on information currently available to
management. All statements contained in this release other than
statements of historical fact are forward-looking statements,
including statements regarding our ability to develop,
commercialize and achieve market acceptance of our current and
planned products and services, our research and development
efforts, and other matters regarding our business strategies, use
of capital, results of operations and financial position, and plans
and objectives for future operations.
In some cases, you can identify forward-looking statements by
the words “may,” “will,” “could,” “would,” “should,” “expect,”
“intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“project,” “potential,” “continue,” “ongoing” or the negative of
these terms or other comparable terminology, although not all
forward-looking statements contain these words. These statements
involve risks, uncertainties and other factors that may cause
actual results, levels of activity, performance, or achievements to
be materially different from the information expressed or implied
by these forward-looking statements. These risks, uncertainties and
other factors are described under "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and elsewhere in the documents we file with the
Securities and Exchange Commission from time to time. We caution
you that forward-looking statements are based on a combination of
facts and factors currently known by us and our projections of the
future, about which we cannot be certain. As a result, the
forward-looking statements may not prove to be accurate. The
forward-looking statements in this press release represent our
views as of the date hereof. We undertake no obligation to update
any forward-looking statements for any reason, except as required
by law.
Source: AbCellera Biologics Inc.
AbCellera Biologics
Inc.
Condensed Consolidated
Statements of Income (Loss) and
Comprehensive Income
(Loss)
(All figures in U.S. dollars.
Amounts are expressed in thousands except share and per share
data)
(Unaudited)
Three months ended June
30,
Six months ended June
30,
2021
2022
2021
2022
Revenue:
Research fees
$
5,215
$
12,538
$
9,201
$
21,871
Licensing revenue
263
147
20,522
377
Milestone payments
1,000
-
8,000
-
Royalty revenue
21,165
33,232
192,661
340,249
Total revenue
27,643
45,917
230,384
362,497
Operating expenses:
Royalty fees
3,610
5,210
23,622
49,847
Research and development(1)
15,046
26,685
27,403
53,052
Sales and marketing(1)
1,295
3,120
3,869
5,490
General and administrative(1)
11,203
14,412
17,688
28,680
Depreciation and amortization
3,522
4,886
6,827
8,875
Total operating expenses
34,676
54,313
79,409
145,944
Income (loss) from operations
(7,033
)
(8,396
)
150,975
216,553
Other (income) expense
Other (income) expense
(314
)
25
(645
)
(641
)
Grants and incentives
(4,646
)
(1,535
)
(7,794
)
(6,730
)
Total other (income)
(4,960
)
(1,510
)
(8,439
)
(7,371
)
Net earnings (loss) before income tax
(2,073
)
(6,886
)
159,414
223,924
Income tax (recovery) expense
250
(101
)
44,516
62,136
Net earnings (loss)
$
(2,323
)
$
(6,785
)
$
114,898
$
161,788
Foreign currency translation
adjustment
2,152
(211
)
2,152
296
Comprehensive income (loss)
$
(171
)
$
(6,996
)
$
117,050
$
162,084
Net earnings (loss) per share attributable
to common shareholders
Basic
$
(0.01
)
$
(0.02
)
$
0.42
$
0.57
Diluted
$
(0.01
)
$
(0.02
)
$
0.36
$
0.52
Weighted-average
outstanding
Basic
272,196,107
284,686,542
270,953,541
284,292,312
Diluted
272,196,107
284,686,542
321,555,443
313,361,183
(1) Exclusive of depreciation and
amortization
AbCellera Biologics
Inc.
Condensed Consolidated Balance
Sheet
(All figures in U.S. dollars.
Amounts are expressed in thousands except share data)
(Unaudited)
December 31, 2021
June 30, 2022
Assets
Current assets:
Cash and cash equivalents
$
476,142
$
790,615
Marketable securities
246,835
231,652
Total cash, cash equivalents, and
marketable securities
722,977
1,022,267
Accounts and accrued receivable
160,576
52,797
Restricted cash
25,000
25,000
Other current assets
21,247
43,891
Total current assets
929,800
1,143,955
Long-term assets:
Property and equipment, net
111,616
149,178
Intangible assets, net
148,392
143,179
Goodwill
47,806
47,806
Investments in and loans to equity
accounted investees
50,313
65,824
Other long-term assets
30,642
43,842
Total long-term assets
388,769
449,829
Total assets
$
1,318,569
$
1,593,784
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and other liabilities
$
32,017
$
24,390
Current portion of contingent
consideration payable
22,934
34,252
Income taxes payable
35,683
107,322
Accrued royalties payable
22,506
50,555
Deferred revenue
7,536
4,621
Total current liabilities
120,676
221,140
Long-term liabilities:
Operating lease liability
36,413
32,759
Deferred revenue and grant funding
60,758
64,800
Contingent consideration payable
35,886
24,629
Deferred tax liability
37,370
34,616
Other long-term liabilities
1,733
2,984
Total long-term liabilities
172,160
159,788
Total liabilities
292,836
380,928
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited
authorized shares at December 31, 2021 and June 30, 2022:
283,257,104 and 285,052,302 shares issued and outstanding at
December 31, 2021 and June 30, 2022, respectively
722,430
726,825
Additional paid-in capital
35,357
56,001
Accumulated other comprehensive income
280
576
Accumulated earnings
267,666
429,454
Total shareholders' equity
1,025,733
1,212,856
Total liabilities and shareholders'
equity
$
1,318,569
$
1,593,784
AbCellera Biologics
Inc.
Condensed Consolidated
Statement of Cash Flows
(Expressed in thousands of
U.S. dollars)
(Unaudited)
Six months ended June
30,
2021
2022
Cash flows from operating
activities:
Net income
$
114,898
$
161,788
Cash flows from operating activities:
Depreciation of property and equipment
1,897
3,681
Amortization of intangible assets
4,930
5,213
Amortization of operating lease
right-of-use assets
1,354
2,120
Stock-based compensation
13,900
24,404
Other
337
(298
)
Changes in operating assets and
liabilities:
Accounts and accrued research fees
receivable
(28,339
)
(6,963
)
Accrued royalties receivable
172,768
106,583
Income taxes payable
(30,330
)
52,251
Accounts payable and accrued
liabilities
(3,640
)
(1,882
)
Deferred revenue
4,848
(2,979
)
Accrued royalties payable
(3,623
)
28,049
Deferred grant revenue
22,349
5,406
Other assets
(4,121
)
(4,139
)
Net cash provided by operating
activities
267,228
373,234
Cash flows from investing
activities:
Purchases of property and equipment
(40,448
)
(45,817
)
Purchase of marketable securities
-
(134,306
)
Proceeds from marketable securities
-
145,808
Receipt of grant funding
4,520
8,098
Long-term investments and other assets
(5,034
)
(11,657
)
Investment in and loans to equity
accounted investees
(20,510
)
(15,694
)
Net cash used in investing activities
(61,472
)
(53,568
)
Cash flows from financing
activities:
Repayment of long-term debt and contingent
consideration
(4,373
)
(73
)
Proceeds from debt and exercise of stock
options
2,755
2,175
Payment of liability for in-licensing
agreement
(5,000
)
(4,060
)
Net cash used in financing activities
(6,618
)
(1,958
)
Effect of exchange rate changes on cash
and cash equivalents
(683
)
(1,411
)
Increase in cash and cash equivalents
198,455
316,297
Cash and cash equivalents and restricted
cash, beginning of period
594,116
501,142
Cash and cash equivalents and restricted
cash, end of period
$
792,571
$
817,439
Restricted cash included in other
assets
-
(1,824
)
Total cash, cash equivalents, and
restricted cash shown in the statement of cash flows
$
792,571
$
815,615
Supplemental disclosure of non-cash
investing and financing activities
Property, plant and equipment in accounts
payable
-
2,146
Right-of-use assets obtained in exchange
for operating-lease obligation
29,573
(796
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005427/en/
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1(236)
521-6774 Business Development: Murray McCutcheon; bd@abcellera.com,
+1(604) 559-9005 Investor Relations: Melanie Solomon;
ir@abcellera.com, +1(778) 729-9116
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