On August 6, 2024 AbCellera (Nasdaq: ABCL) reported financial results for the second quarter of 2024 (Press release, AbCellera, AUG 6, 2024, View Source [SID1234645446]). All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
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"This quarter, we made important progress on our internal pipeline and aim to submit applications for clinical trials for ABCL635 and ABCL575 in the second quarter of 2025. In parallel, we have focused preclinical work on our T-cell engager platform to four molecules for indications in oncology and autoimmunity," said Carl Hansen, Ph.D., founder and CEO of AbCellera. "Since our last earnings release, two of our partners have achieved notable milestones, including Abdera’s IND clearance and Fast Track designation for ABD-147 and Invetx’s upcoming acquisition by a global leader in animal health. AbCellera is a founding partner of both Abdera and Invetx. In addition, we have recently announced an expansion of our partnership with Lilly."
Q2 2024 Business Summary
ABCL635 and ABCL575 remain on track for anticipated Clinical Trial Applications (CTAs) in the second quarter of 2025.
Disclosed three T-cell engager programs under evaluation targeting PSMA, B7-H4, and CD-19.
The U.S. FDA cleared Abdera’s Investigational New Drug (IND) application for ABD-147, and also granted it a Fast Track designation. AbCellera is a founding partner in Abdera, has a low-single-digit royalty stake in Abdera’s programs, and has a mid-single-digit equity ownership position.
Reported the start of three additional partner-initiated programs with downstreams to reach a cumulative total of 93 partner-initiated program starts with downstreams.
Reported the addition of one molecule in the clinic, bringing the cumulative total to 14 molecules advanced to the clinic.
Recent Developments
On July 31, 2024, announced an expanded collaboration with Lilly to discover therapeutic antibodies for programs in immunology, cardiovascular disease, and neuroscience.
On July 18, 2024, Invetx announced its upcoming acquisition by Dechra Pharmaceuticals for up to $520 million in total consideration. AbCellera is a founding partner in Invetx, has a low-single-digit royalty stake in Invetx’s programs, and has a mid-single-digit equity ownership position.
Key Business Metrics
Cumulative Metrics
June 30, 2023
June 30, 2024
Change %
Partner-initiated program starts with downstreams
80
93
16 %
Molecules in the clinic
9
14
56 %
AbCellera started discovery on an additional three partner-initiated programs with downstreams to reach a cumulative total of 93 partner-initiated program starts with downstreams in Q2 2024 (up from 80 on June 30, 2023). AbCellera’s partners have advanced a cumulative total of 14 molecules into the clinic (up from nine on June 30, 2023).
Discussion of Q2 2024 Financial Results
Revenue – Total revenue was $7.3 million, compared to $10.1 million in Q2 2023. Partnerships generated research fees of $5.5 million, compared to $9.8 million in Q2 2023. Milestone payments contributed $1.5 million in the quarter.
Research & Development (R&D) Expenses – R&D expenses were $40.9 million, compared to $36.5 million in Q2 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 $3.8 million in Q2 2023.
General & Administrative (G&A) Expenses – G&A expenses were $20.2 million, compared to $15.5 million in Q2 2023.
Net Loss – Net loss of $36.9 million, or $(0.13) per share on a basic and diluted basis, compared to net loss of $30.5 million, or $(0.11) per share on a basic and diluted basis in Q2 2023.
Liquidity – $697.6 million of total cash, cash equivalents, and marketable securities and with approximately $220 million in available non-dilutive government funding to execute on AbCellera’s strategy, bringing total available liquidity to over $900 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.