- Total revenue of $10 million, compared to $46 million in Q2
2022
- Total cumulative partnered program starts of 106, up 20% from
Q2 2022
- Net loss of $0.11 per share on a basic and diluted basis,
compared to a net loss of $0.02 per share on a basic and diluted
basis in Q2 2022
AbCellera (Nasdaq: ABCL) today announced financial results for
the second quarter of 2023. All financial information in this press
release is reported in U.S. dollars, unless otherwise
indicated.
“In the second quarter we secured over $220 million in strategic
financing from the Governments of Canada and British Columbia to
accelerate the execution of our strategy. When combined with our
cash, cash equivalents, and marketable securities of over $800
million this brings our total available liquidity to over $1
billion,” said Carl Hansen, Ph.D., founder and CEO of AbCellera.
“By strengthening our liquidity position, our discovery and
development engine, and our portfolio, this funding will drive
value in multiple dimensions of our business, including advancing
more pre-partnered programs to the clinic.”
Q2 2023 Business Summary
- Earned $10.1 million in total revenue.
- Generated a net loss of $30.5 million, compared to a net loss
of $6.8 million in Q2 2022.
- Maintained a cumulative total of 177 programs under contract
with 41 different partners.
- Reached a cumulative total of 106 partnered program
starts.
- Continuing to report nine molecules cumulatively advanced to
the clinic.
Key Business Metrics
Cumulative Metrics
June 30, 2022
June 30, 2023
Change %
Number of discovery partners
38
41
8 %
Programs under contract
164
177
8 %
Partnered program starts
88
106
20 %
Molecules in the clinic
6
9
50 %
AbCellera maintained a cumulative total of 177 programs under
contract (up from 164 on June 30, 2022) that are either completed,
in progress, or under contract with 41 different partners as of
June 30, 2023 (up from 38 on June 30, 2022). AbCellera started
discovery on an additional five partner-initiated programs to reach
a cumulative total of 106 partnered program starts in Q2 2023 (up
from 88 on June 30, 2022). AbCellera’s partners have advanced a
cumulative total of nine molecules into the clinic (up from six on
June 30, 2022).
Discussion of Q2 2023 Financial Results
- Revenue – Total revenue was $10.1 million, compared to
$45.9 million in Q2 2022. The partnership business generated
research fees of $9.8 million, compared to $12.5 million in Q2
2022. Licensing revenue was $0.2 million.
- Research & Development (R&D) Expenses – R&D
expenses were $36.5 million, compared to $26.7 million in Q2 2022,
reflecting continued growth in program execution and platform
development.
- Sales & Marketing (S&M) Expenses – S&M
expenses were $3.8 million, compared to $3.1 million in Q2 2022.
The increase reflects continued investments in business
development.
- General & Administrative (G&A) Expenses –
G&A expenses were $15.5 million, compared to $14.4 million in
Q2 2022, with the increase driven by investments to support the
growth of the company.
- Net Loss – Net loss of $30.5 million, or $(0.11) per
share on a basic and diluted basis, compared to a net loss of $6.8
million, or $(0.02) per share on a basic and diluted basis in Q2
2022.
- Liquidity – $822.9 million of total 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 breaking the barriers of conventional antibody
discovery to bring better medicines to patients, sooner.
AbCellera’s engine integrates expert teams, technology, and
facilities with the data science and automation needed to propel
antibody-based medicines from target to clinic in nearly every
therapeutic area with precision and speed. AbCellera provides
innovative biotechs and leading pharmaceutical companies with a
competitive advantage that empowers them to move quickly, reduce
cost, 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.
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
engine and our 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 or deliver 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 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.
Partnered 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 potential
for near-term payments. Cumulatively, partnered 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.
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,
2022
2023
2022
2023
Revenue:
Research fees
$
12,538
$
9,830
$
21,871
$
20,400
Licensing revenue
147
226
377
598
Milestone payments
-
-
-
1,250
Royalty revenue
33,232
-
340,249
-
Total revenue
45,917
10,056
362,497
22,248
Operating expenses:
Royalty fees
5,210
-
49,847
-
Research and development(1)
26,685
36,473
53,052
89,120
Sales and marketing(1)
3,120
3,841
5,490
7,612
General and administrative(1)
14,412
15,521
28,680
30,655
Depreciation and amortization
4,886
5,610
8,875
11,124
Total operating expenses
54,313
61,445
145,944
138,511
Income (loss) from operations
(8,396
)
(51,389
)
216,553
(116,263
)
Other (income) expense
Interest (income)
(1,414
)
(10,779
)
(2,079
)
(20,537
)
Grants and incentives
(1,535
)
(4,576
)
(6,730
)
(7,951
)
Other
1,439
1,970
1,438
(1,624
)
Total other (income)
(1,510
)
(13,385
)
(7,371
)
(30,112
)
Net earnings (loss) before income tax
(6,886
)
(38,004
)
223,924
(86,151
)
Income tax (recovery) expense
(101
)
(7,476
)
62,136
(15,513
)
Net earnings (loss)
$
(6,785
)
$
(30,528
)
$
161,788
$
(70,638
)
Foreign currency translation
adjustment
(211
)
122
296
(508
)
Comprehensive income (loss)
$
(6,996
)
$
(30,406
)
$
162,084
$
(71,146
)
Net earnings (loss) per share attributable
to common shareholders
Basic
$
(0.02
)
$
(0.11
)
$
0.57
$
(0.24
)
Diluted
$
(0.02
)
$
(0.11
)
$
0.52
$
(0.24
)
Weighted-average common shares
outstanding
Basic
284,686,542
288,905,587
284,292,312
288,357,081
Diluted
284,686,542
288,905,587
313,361,183
288,357,081
(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, 2022
June 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
386,535
$
179,747
Marketable securities
499,950
615,947
Total cash, cash equivalents, and
marketable securities
886,485
795,694
Accounts and accrued receivable
38,593
45,678
Restricted cash
25,000
25,000
Other current assets
75,413
64,363
Total current assets
1,025,491
930,735
Long-term assets:
Property and equipment, net
217,255
259,640
Intangible assets, net
131,502
126,747
Goodwill
47,806
47,806
Investments in and loans to equity
accounted investees
72,522
58,792
Other long-term assets
46,331
113,446
Total long-term assets
515,416
606,431
Total assets
$
1,540,907
$
1,537,166
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and other liabilities
$
33,150
$
52,395
Contingent consideration payable
44,211
54,874
Accrued royalties payable
19,347
3,094
Deferred revenue
21,612
8,542
Total current liabilities
118,320
118,905
Long-term liabilities:
Operating lease liability
76,675
78,079
Deferred revenue
19,516
27,716
Deferred government contributions
40,801
76,354
Contingent consideration payable
16,054
5,774
Deferred tax liability
33,178
33,178
Other long-term liabilities
3,086
2,333
Total long-term liabilities
189,310
223,434
Total liabilities
307,630
342,339
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited
authorized shares at December 31, 2022 and June 30, 2023:
286,851,595 and 289,189,469 shares issued and outstanding at
December 31, 2022 and June 30, 2023, respectively
734,365
744,756
Additional paid-in capital
74,118
96,423
Accumulated other comprehensive (loss)
(1,391
)
(1,899
)
Accumulated earnings
426,185
355,547
Total shareholders' equity
1,233,277
1,194,827
Total liabilities and shareholders'
equity
$
1,540,907
$
1,537,166
AbCellera Biologics
Inc.
Condensed Consolidated
Statement of Cash Flows
(Expressed in thousands of
U.S. dollars)
(Unaudited)
Six months ended June
30,
2022
2023
Cash flows from operating
activities:
Net earnings (loss)
$
161,788
$
(70,638
)
Cash flows from operating activities:
Depreciation of property and equipment
3,681
5,810
Amortization of intangible assets
5,213
5,314
Amortization of operating lease
right-of-use assets
2,120
3,252
Stock-based compensation
24,404
31,873
Other
(298
)
(4,429
)
Changes in operating assets and
liabilities:
Accounts and accrued research fees
receivable
(6,963
)
(24,269
)
Accrued royalties receivable
106,583
9,260
Income taxes payable
52,251
22,884
Accounts payable and accrued
liabilities
(1,882
)
(2,827
)
Deferred revenue
(2,979
)
(4,870
)
Accrued royalties payable
28,049
(16,253
)
Deferred grant income
5,406
25,566
Other assets
(4,139
)
(4,833
)
Net cash provided by (used in) operating
activities
373,234
(24,160
)
Cash flows from investing
activities:
Purchases of property and equipment
(45,817
)
(42,185
)
Purchase of marketable securities
(134,306
)
(528,891
)
Proceeds from marketable securities
145,808
422,814
Receipt of grant funding
8,098
7,693
Long-term investments and other assets
(11,657
)
(36,757
)
Investment in and loans to equity
accounted investees
(15,694
)
(6,673
)
Net cash used in investing activities
(53,568
)
(183,999
)
Cash flows from financing
activities:
Payment of liability for in-licensing
agreement and contingent consideration
(4,133
)
(677
)
Proceeds (repayment) from long-term debt
and exercise of stock options
2,175
638
Net cash used in financing activities
(1,958
)
(39
)
Effect of exchange rate changes on cash
and cash equivalents
(1,411
)
584
Increase (decrease) in cash and cash
equivalents
316,297
(207,614
)
Cash and cash equivalents and restricted
cash, beginning of period
501,142
414,651
Cash and cash equivalents and restricted
cash, end of period
$
817,439
$
207,037
Restricted cash included in other
assets
1,824
2,290
Total cash, cash equivalents, and
restricted cash shown on the balance sheet
$
815,615
$
204,747
Supplemental disclosure of non-cash
investing and financing activities
Property and equipment in accounts
payable
2,146
11,718
Right-of-use assets obtained in exchange
for operating lease obligation
796
2,945
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230731085828/en/
Inquiries
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1 (236)
521-6774 Business Development: Murray McCutcheon, Ph.D.;
bd@abcellera.com, +1 (604) 559-9005 Investor Relations: Josephine
Hellschlienger, Ph.D.; ir@abcellera.com, +1 (778) 729-9116
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