On July 7, 2023 IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the "Company" or "IPA") (NASDAQ: IPA), an AI-driven biotherapeutic research and technology company, reported financial results for the full fiscal year 2023 ended April 30, 2023 (Press release, ImmunoPrecise Antibodies, JUL 7, 2023, View Source [SID1234633110]).
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"As we usher in Fiscal Year 2024, we carry with us a strong momentum from the impressive strides we made in the previous year. In the fiscal year ended April 30, 2023, we achieved a revenue of $20.7 million, marking a notable 6.7% (or 9% when adjusting for the effects of currency translation) increase compared to the year ended April 30, 2022. We also recorded our highest quarterly revenue total of $5.6 million in the last quarter ending April 30, 2023. These milestones serve as a testament to the soundness of our strategies and the dedication of our team.
As we look ahead to Fiscal Year 2024, we see immense potential for our in silico suite of services and data management capabilities to further bolster our growth. We expect these innovative offerings to significantly contribute to our financial performance this year and set the stage for long-term success.
Our unwavering commitment to excellence, coupled with our robust pipeline and agile execution, position us to deliver continued strong performance this year and beyond. This is a thrilling period for our company, and we are eager to embark on the new fiscal year, further driving innovation and growth." Stated Dr. Jennifer Bath, CEO of IPA.
Recent and Fiscal 2023 Operational Highlights
Talem entered into exclusive research collaboration and license option agreement with Astellas targeting an undisclosed protein in the tumor microenvironment (TME)
Talem presented its latest data on the development of bispecific T-cell engagers targeting TrkB at the annual AACR (Free AACR Whitepaper) meeting in Orlando, Florida, in April 2023.
Talem entered into a multi-target license agreement with OmniAb, Inc to further the development and commercialization of immuno-oncology antibody panels.
BioStrand entered into a research collaboration and license agreement with BriaCell Therapeutics Corp. (NASDAQ: BCTX, BCTXW) (TSX: BCT)
IPA’s subsidiary, BioStrand, secured second €460,000 VLAIO research grant.
BioStrand has successfully solved the Information Integration Dilemma (IID)
BioStrand publicly unveiled use case showing solution of the Information Integration Dilemma (IID)
BioStrand completed the full integration of 20 million Structural HYFTs with DeepMind’s AlphaFold and META’s ESM-2 Fold platforms.
EPO granted BioKey’s patent application covering the company’s HYFT Technology used to organize and analyze biological sequence information.
IPA achieved a record global CRO revenue of $5.6 million in Q4 FY23, representing a 7.3% increase from the previous year, reflecting strong demand and stability.
IPA secured $4.65M sales orders for future fee-for-service work in Q4, demonstrating market confidence and high demand for services.
IPA Europe’s human phage display and humanization offerings experienced financial growth and improved capabilities with newly generated phage libraries and modernized workflows.
IPA expanded its single B cell screening capabilities to include species from the camelid family, leading to increased requests for VHH-based discovery programs and new revenue opportunities.
Talem, a subsidiary of IPA, elevated three key programs with significant value potential, generating interest from prospective partners and focusing on partnering discussions with larger corporations.
IPA’s revenue streams consist of non-cannibalistic in silico technologies, in silico de novo antibody discovery and development partnerships, and a Data Organization and Management Platform, all demonstrating robust growth.
IPA’s commitment to innovation is reflected in its unique platform that integrates biological data dimensions using AI and HYFT technology to unlock valuable insights and connections.
The ongoing advancements in software development, including LENSai software, have enabled IPA to solve real-life biological problems and overcome the challenges of omics data integration and analysis.
IPA has strategically positioned itself to capture opportunities in multiple revenue streams, including in silico technologies, de novo antibody discovery, and data organization and management.
The investor call will dive deeper into IPA’s achievements, discuss exciting prospects, and invite participants to join in driving innovation in AI-driven antibody discovery.
Financial Results
Revenue
The Company achieved record revenue of $20.7 million during the year ended April 30, 2023, a 6.7% increase from the year ended April 30, 2022. Revenue growth from the prior year was 9.0% when adjusting for the effect of currency translations. The increase in revenue was primarily driven by growth in the Company’s B cell Select platform and protein manufacturing services.
Research and development
During the year ended April 30, 2023, research and development expenses increased to $12.3 million from $7.7 million during the year ended April 30, 2022. Expenditures on research activities totaled $10.8 million during the year ended April 30, 2023 (2022 – $6.7 million), including $8.3 million on Talem’s PolyTope antibody combination therapy. Additional expenditures include compensation expense of $1.2 million (2022 – $0.7 million), and depreciation of $0.2 million (2022 – $0.2 million).
Sales and marketing
Sales and marketing expenses totaled $3.6 million during the year ended April 30, 2023, compared to $2.7 million during the year ended April 30, 2022. Expenditures during the year ended April 30, 2023, include $2.5 million in compensation expense (2022 – $2.1 million), $0.7 million in advertising costs (2022 – $0.5 million), and $0.2 million in travel costs (2022 – $0.03 million).
General and administrative
During the year ended April 30, 2023, general and administrative expenses totaled $19.8 million, an increase of $4.4 million compared to the year ended April 30, 2022. Salaries and benefits increased $2.1 million due primarily to the addition of staff at BioStrand and routine pay increases. The Company recorded an impairment charge of $2.5 million related to the BioStrand cash-generating unit. Professional fees decreased $0.2 million, driven primarily by a decrease in legal costs. Management fees increased $1.3 million due to contracted general managers at the BioStrand site. Share-based payment expenses decreased by $1.0 million.
Other Income / Expense
The Company recorded other income of $0.8 during the year ended April 30, 2023, compared to other income of $0.9 million during the year ended April 30, 2022. The most noteworthy variance is the decrease in unrealized foreign exchange gain of $0.4 million compared to the year ended April 30, 2022, a result of currency revaluations at the current quarter-end exchange rate. Grant income increased $0.3 million compared to the year prior, as the Company recorded the first round of grant funding from VLAIO (Flanders Innovation & Entrepreneurship), the research fund of the Flemish regional government in Belgium.
Net Loss
The Company recorded a net loss of $26.6 million during the year ended April 30, 2023, compared to a net loss of $16.7 million during the year ended April 30, 2022. The increased net loss is the result of an increase in gross profit of $0.6 million, offset by an increase in research and development expenses of $4.6 million, an increase in sales and marketing expenses of $0.9 million, an increase in general and administrative expenses of $4.4 million.
Liquidity and Capital Resources
As of April 30, 2023, the Company had cash on hand of $8.4 million compared to $30.0 million as of April 30, 2022, and had working capital of $11.1 million (April 30, 2022 – $28.2 million). During the year ended April 30, 2023, the cash used in operating activities was $19.8 million. As part of investing activities, the Company made equipment purchases of $1.5 million, and paid deferred acquisition payments of $0.6 million. As part of financing activities, the Company received $0.7 million from issuing common shares, and incurred lease repayments of $1.3 million.
Conference Call:
Event Date: July 07, 2023
Event Time: 10:30 ET
Participant Details:
Conference ID: 9236374
Participant Toll-Free Dial-In Number: 1 (888) 550-5658
Participant Toll Dial-In Number: 1 (646) 960-0289
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