PharmiWeb.com - Global Pharma News & Resources
09-Aug-2022

AbCellera Reports Q2 2022 Business Results

  • 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

VANCOUVER, British Columbia--(BUSINESS WIRE)--$ABCL--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

)

 


Contacts

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

Editor Details

  • Company:
    • Businesswire
Last Updated: 09-Aug-2022