On July 29, 2022 IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the "Company" or "IPA") (NASDAQ: IPA) (TSXV: IPA), an advanced biotherapeutic research and technology company, reported financial results for the full fiscal year 2022 ended April 30, 2022 (Press release, ImmunoPrecise Antibodies, JUL 29, 2022, View Source [SID1234617141]).
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Fiscal 2022 Financial Summary*
The Company achieved record total revenues of $19.4 million during the year ended April 30, 2022, an 8.1% increase from the year ended April 30, 2021.
Project revenue of $17.4 million was $1.4 million, or 9.1%, higher than last year. Growth is driven primarily by the Company’s B cell Select platform, with expansion in both the number and size of projects under contract.
The Company, primarily through its subsidiary Talem Therapeutics LLC, invested $6.7 million in strategic research and development costs as compared to $2.0 million in 2021.
The Company recorded a net loss of $16.7 million during the year ended April 30, 2022, compared to a net loss of $7.3 million for the year ended April 30, 2021.
As of April 30, 2022, the Company held cash of $30 million (April 30, 2021 – $41.8 million)
*Expressed in Canadian dollars unless otherwise noted.
"We delivered another year of strong performance in fiscal year 2022, demonstrating both our highest revenue quarter and fiscal year in the history of IPA," said Dr. Jennifer L. Bath, Chief Executive Officer, IPA. "We are entering Fiscal Year 2023 with significant momentum and a strong focus and expectations on our new capabilities, robust pipeline, and excellent execution to deliver continued strong performance this year and over the long-term."
Recent and Fiscal 2022 Operational Highlights
IPA seeks to rapidly and dramatically expand its IP portfolio with the addition of several US and international patent applications submitted by Talem Therapeutics LLC and obtained through the recent BioStrand acquisition
IPA announces the retirement of Lisa Helbling, Chief Financial Officer, and the appointment of her successor and current member of the IPA executive team, Brad McConn, effective August 5th.
Pre-clinical, IND-enabling histopathology data from toxicity study and ex vivo human Tissue Cross-Reactivity (TCR) analysis support the safety of IPA’s Polytope TATX-03 cocktail
IPA’s PolyTope TATX-03 demonstrates protection against in vitro Infection by Omicron sublineage BA.2, in addition to all other Variants of Concern
IPA completes acquisition of Belgian group, BioStrand, revolutionizing biotherapeutics with method to encode omics and power drug development with advanced Artificial Intelligence (AI)
IPA’s newly acquired subsidiary, BioStrand, awarded second round of grant funding from VLAIO Research Grant
IPA and ChemPartner Biologics announce PolyTope TATX-03 antibody cocktail manufacturing collaboration
After program review by the Department of Defense (DOD), IPA was selected to work with Elektrofi on a deployment ready formulation of its PolyTope TATX-03 as well as future pandemic preparation under an SBIR contract from Defense Health Agency (DHA) within the US DOD
IPA bolstered global senior leadership with Barry Duplantis, Ph.D., promoted to Vice President of Client Relations and the addition of Ms. Carla Dahl, Vice President of Marketing
IPA Europe granted three-year approval for the "Crédit d’Impôt Recherche" (CIR) from the French Ministry of Higher Education and Research to provide research tax credits to eligible French companies
The Company established a multi-target research collaboration with Pierre Fabre in immuno-oncology
IPA established a US $50 million At-The-Market distribution agreement (the "ATM")
IPA presented in vitro characterizations results from studies on TATX-21, a novel potential first-in-class antibody for Atherosclerosis Cardiovascular Disease (ACVD), at the 2021 BIO Convention
IPA enters co-offering agreement with Eurofins Discovery, providing Eurofin’s global clients’ integrated access to IPA’s end-to-end discovery service
Financial Results
Revenue
The Company achieved record revenues of $19.4 million during the year ended April 30, 2022, compared to $17.9 million in fiscal year 2021, an 8.1% increase. The continued growth trend is primarily from project revenues in the Company’s B cell Select platform with expansion in both the number and size of projects under contract.
For the three months period ending April 30, 2022, the Company achieved record revenues of $5.2 million compared to $4.9 million for the three months period ended April 30, 2021, a 7.4% increase.
Research & Development
Research and development increased to $6.7 million from $2 million in 2021, due to the strategic investment in R&D the Company is undertaking, including the Company’s SARSCoV-2 PolyTope cocktail and other research projects.
Net Loss
The Company recorded a net loss of $16.7 million during the year ended April 30, 2022, compared to a net loss of $7.3 million for the year ended April 30, 2021. The $9.4 million increased net loss is primarily due to the Company’s investment in R&D, increased professional and consulting fees, increased insurance costs, increased salaries, and benefits to support the Company’s strategic plans and operations, and lower grant and subsidy income.
Liquidity and Capital Resources
As of April 30, 2022, the Company held cash of $30.0 million as compared to $41.8 million as of April 30, 2021, and had working capital of $28.2 million. The Company’s internal forecast indicates the cash on hand will sustain its existing operations, support its Nasdaq and TSXV on-going listing costs and satisfy its obligations for at least 12 months.
On October 13, 2021, at at-the-market ("ATM") equity offering facility, was entered into with H.C. Wainwright & Co., LLC, as sole sales agent ("Agent"). The Company will be entitled, at its discretion and from time-to-time during the term of the ATM agreement, to sell through the Agent common shares of the Company having an aggregate gross sales price of up to US $50 million. As of July 29, 2022, US $50 million of the Company’s stock remained available for sale under the ATM facility.
The conference call will be webcast live and available for replay via the same link found on the main page of the Company’s Investors section at: View Source
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Anyone listening to the call is encouraged to read the company’s periodic reports on file with the Toronto Stock Exchange and Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.