EX-99.1 2 q32024earningspressrelease.htm EX-99.1 Document
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NEWS RELEASE


AbCellera Reports Q3 2024 Business Results

11/04/2024


VANCOUVER, British Columbia - AbCellera (Nasdaq: ABCL) today announced financial results for the third quarter of 2024. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“Through the third quarter we continued to execute on our key priorities of advancing our internal pipeline and building capabilities to support clinical trials activities in 2025 and beyond,” said Carl Hansen, Ph.D., founder and CEO of AbCellera. “Notably, we completed the consolidation into our new headquarters in Vancouver, Canada, which marks a significant milestone towards completing our platform and infrastructure investments.”

Q3 2024 Business Summary
●Expanded existing collaboration with Eli Lilly and Company to discover therapeutic antibodies for programs in immunology, cardiovascular disease, and neuroscience.
●Reported the start of two additional partner-initiated programs with downstreams to reach a cumulative total of 95 partner-initiated program starts with downstreams.
●Maintained a cumulative total of 14 molecules advanced to the clinic.


Key Business Metrics
Cumulative MetricsSeptember 30, 2023September 30, 2024Change %
Partner-initiated program starts with downstreams849513 %
Molecules in the clinic101440 %

AbCellera started discovery on an additional two partner-initiated programs with downstreams to reach a cumulative total of 95 partner-initiated program starts with
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downstreams in Q3 2024 (up from 84 on September 30, 2023). AbCellera’s partners have advanced a cumulative total of 14 molecules into the clinic (up from 10 on September 30, 2023).

Discussion of Q3 2024 Financial Results
●Revenue – Total revenue was $6.5 million, compared to $6.6 million in Q3 2023. In both periods, the majority of revenues were research fees generated by our partnerships.
●Research & Development (R&D) Expenses – R&D expenses were $41.0 million, compared to $37.9 million in Q3 2023, reflecting underlying continued growth in program execution, platform development, and investments in internal programs.
●Sales & Marketing (S&M) Expenses – S&M expenses were $3.1 million, compared to $3.5 million in Q3 2023.
●General & Administrative (G&A) Expenses – G&A expenses were $19.1 million, compared to $14.4 million in Q3 2023.
●Net Loss – Net loss of $51.1 million, or $(0.17) per share on a basic and diluted basis, compared to net loss of $28.6 million, or $(0.10) per share on a basic and diluted basis in Q3 2023.
●Liquidity – $670.4 million of total cash, cash equivalents, and marketable securities and with approximately $205 million in available non-dilutive government funding to execute on AbCellera's strategy, bringing total available liquidity to over $875 million.

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 (Nasdaq: ABCL) discovers and develops antibody medicines for indications across therapeutic areas including cancer, metabolic and endocrine conditions, and autoimmune disorders. AbCellera’s engine integrates technology, data science, infrastructure, and interdisciplinary teams to solve the most challenging antibody discovery problems. AbCellera is focused on advancing an internal pipeline of first-in-class and best-in-class programs and collaborating on innovative drug development programs with partners. For more information, please visit www.abcellera.com.

Definition of Key Business Metrics
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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. Information on changes is set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.
Partner-initiated program starts with downstreams represent the number of unique partner-initiated programs where we stand to participate financially in downstream success 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 the selection and initiation of projects by our partners and the resulting potential for near-term payments. Cumulatively, partner-initiated program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties (or royalty equivalents) 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 reached “open” status or has otherwise 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
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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.

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AbCellera Biologics Inc.
Condensed Consolidated Statements of Loss and
Comprehensive Loss
(All figures in U.S. dollars. Amounts are expressed in thousands except share and per share data.)
(Unaudited)

Three months ended September 30,Nine months ended September 30,
2023202420232024
Revenue:
Research fees$6,413 $6,289 $26,812 $21,516 
Licensing revenue186 218 784 767 
Milestone payments– – 1,250 1,500 
Total revenue6,599 6,507 28,846 23,783 
Operating expenses:
Research and development(1)
37,917 40,969 127,036 121,183 
Sales and marketing(1)
3,468 3,135 11,080 9,635 
General and administrative(1)
14,369 19,147 45,025 56,691 
Depreciation, amortization, and impairment5,735 36,919 16,859 78,285 
Total operating expenses61,489 100,170 200,000 265,794 
Loss from operations(54,890)(93,663)(171,154)(242,011)
Other income:
Interest income(10,740)(9,603)(31,278)(29,805)
Grants and incentives(2,828)(3,491)(10,779)(10,076)
Other income (2,046)(17,937)(3,670)(48,564)
Total other income(15,614)(31,031)(45,727)(88,445)
Net loss before income tax(39,276)(62,632)(125,427)(153,566)
Income tax recovery(10,666)(11,525)(26,179)(24,919)
Net loss$(28,610)$(51,107)$(99,248)$(128,647)
Foreign currency translation adjustment439 841 (69)488 
Comprehensive loss$(28,171)$(50,266)$(99,317)$(128,159)
Net loss per share
Basic$(0.10)$(0.17)$(0.34)$(0.44)
Diluted$(0.10)$(0.17)$(0.34)$(0.44)
Weighted-average common shares outstanding
Basic289,496,841294,851,945288,750,387293,930,702
Diluted289,496,841294,851,945288,750,387293,930,702

(1) Exclusive of depreciation, amortization, and impairment
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AbCellera Biologics Inc.
Condensed Consolidated Balance Sheets
(All figures in U.S. dollars. Amounts are expressed in thousands except share data.)
(Unaudited)
December 31, 2023September 30, 2024
Assets
Current assets:
Cash and cash equivalents$133,320 $126,640 
Marketable securities627,265 516,499 
Total cash, cash equivalents, and marketable securities760,585 643,139 
Accounts and accrued receivable30,590 31,373 
Restricted cash25,000 25,000 
Other current assets55,810 43,371 
Total current assets871,985 742,883 
Long-term assets:
Property and equipment, net287,696 331,263 
Intangible assets, net120,425 52,577 
Goodwill47,806 47,806 
Investments in equity accounted investees65,938 84,084 
Other long-term assets94,244 134,215 
Total long-term assets616,109 649,945 
Total assets$1,488,094 $1,392,828 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and other current liabilities$49,580 $53,773 
Contingent consideration payable50,475 20,217 
Deferred revenue18,958 5,578 
Total current liabilities119,013 79,568 
Long-term liabilities:
Operating lease liability71,222 66,274 
Deferred revenue8,195 8,100 
Deferred government contributions95,915 142,046 
Contingent consideration payable4,913 4,441 
Deferred tax liability30,612 12,781 
Other long-term liabilities5,906 1,524 
Total long-term liabilities216,763 235,166 
Total liabilities335,776 314,734 
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited authorized shares at December 31, 2023 and September 30, 2024: 290,824,970 and 295,157,474 shares issued and outstanding at December 31, 2023 and September 30, 2024, respectively
753,199 772,832 
Additional paid-in capital121,052 155,354 
Accumulated other comprehensive loss(1,720)(1,232)
Accumulated earnings279,787 151,140 
Total shareholders' equity1,152,318 1,078,094 
Total liabilities and shareholders' equity$1,488,094 $1,392,828 
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AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars.)
(Unaudited)
Nine months ended September 30,
20232024
Cash flows from operating activities:
Net loss$(99,248)$(128,647)
Cash flows from operating activities:
Depreciation of property and equipment8,874 10,437 
Amortization and impairment of intangible assets7,985 67,848 
Amortization of operating lease right-of-use assets4,926 4,813 
Stock-based compensation47,735 52,355 
Fair value gain on contingent consideration and investments– (48,727)
Deferred income tax and other(6,354)(17,891)
Changes in operating assets and liabilities:
Research fees and grants receivable(35,495)(54,258)
Accrued royalties receivable9,273 – 
Income taxes payable (receivable)28,685 (8,709)
Accounts payable and accrued liabilities(1,852)4,018 
Deferred revenue(7,238)(13,474)
Accrued royalties payable(16,253)– 
Deferred grant income30,377 30,671 
Other assets4,319 1,008 
Net cash used in operating activities(24,266)(100,556)
Cash flows from investing activities:
Purchases of property and equipment(62,516)(62,766)
Purchase of marketable securities(744,674)(612,249)
Proceeds from marketable securities642,913 735,989 
Receipt of grant funding15,023 29,150 
Long-term investments and other assets(37,317)13,538 
Investment in equity accounted investees(10,214)(17,956)
Net cash provided by (used in) investing activities(196,785)85,706 
Cash flows from financing activities:
Payment of liability for in-licensing agreement and other(1,049)(552)
Proceeds from long-term liabilities6,560 7,599 
Proceeds from exercise of stock options1,080 1,580 
Net cash provided by financing activities6,591 8,627 
Effect of exchange rate changes on cash and cash equivalents(479)(457)
Decrease in cash and cash equivalents(214,939)(6,680)
Cash and cash equivalents and restricted cash, beginning of period414,651 160,610 
Cash and cash equivalents and restricted cash, end of period$199,712 $153,930 
Restricted cash included in other assets2,290 2,290 
Total cash, cash equivalents, and restricted cash shown on the balance sheet$197,422 $151,640 
Supplemental disclosure of non-cash investing and financing activities
Property and equipment in accounts payable12,948 15,989 
Right-of-use assets obtained in exchange for operating lease obligation3,586 2,232 
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Inquiries
Media: Kathleen Reid: media@abcellera.com, +1(236)521-6774
Business Development: Murray McCutcheon, Ph.D., partnering@abcellera.com,+1(604)559-9005
Investor Relations: Peter Ahn, ir@abcellera.com, +1(778)729-9116
Source: AbCellera Biologics Inc.
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