Q1 2025 BUSINESS UPDATE MAY 8, 2025 COPYRIGHT © ABCELLERA DISCLAIMER This presentation 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 beliefs and assumptions and on information currently available to management. All statements contained in this presentation other than statements of historical fact are forward-looking statements, including st ...

Financial Performance - Total revenue for Q1 2025 was $4,235,000, a decrease of 57.5% compared to $9,954,000 in Q1 2024[13] - Net loss for Q1 2025 was $45,621,000, compared to a net loss of $40,610,000 in Q1 2024, indicating a 12.4% increase in losses[13] - The company reported a comprehensive loss of $48,241,000 for Q1 2025, compared to a comprehensive loss of $40,706,000 in Q1 2024, representing a 18.5% increase[13] - Operating expenses for Q1 2025 were $66,895,000, up from $64,848,000 in Q1 2024, indicating a rise of 3.2%[79] - Interest income decreased by $2.4 million, or 23%, from $(10.40) million in Q1 2024 to $(8.05) million in Q1 2025, primarily due to lower cash balances and interest yields[93] - The company reported a net loss of $162.9 million for the year ended December 31, 2024, compared to a net loss of $146.4 million for 2023[115] - Accumulated earnings as of December 31, 2024, were $116.9 million, down from $279.8 million in 2023[115] Assets and Liabilities - Total assets decreased from $1,360,553,000 as of December 31, 2024, to $1,344,208,000 as of March 31, 2025, a decline of 1.2%[12] - Total liabilities increased from $304,469,000 to $321,226,000, marking a rise of 5.5%[12] - Shareholders' equity decreased from $1,056,084,000 to $1,022,982,000, a decline of 3.1%[12] - Cash and cash equivalents increased from $156,325,000 at the end of 2024 to $159,266,000 by March 31, 2025, reflecting a growth of 1.2%[12] - Total current assets rose from $751,370,000 to $764,978,000, an increase of 1.8%[12] Research and Development - Research and development expenses increased to $42,496,000 in Q1 2025, up from $39,287,000 in Q1 2024, representing a 5.5% increase[13] - Significant investments are expected in research and development to enhance antibody discovery and development capabilities[75] - The company is focused on developing first-in-class and best-in-class antibody-based medicines for high unmet medical needs[67] - The company has invested significantly in research and development efforts to enhance its technology and platform, but these investments carry inherent risks that may affect operating results[141] - The company has not expensed any amounts related to research and development milestone payments during the three months ended March 31, 2024, or March 31, 2025[51] Government Contributions - The company received a total of CAD $300 million ($222.3 million) in multi-year contributions from the Government of Canada and the Government of British Columbia to develop and manufacture antibody medicines[53] - Government Contribution 1 includes CAD $175.6 million ($125.6 million) for R&D related to COVID-19, with CAD $116.9 million ($88.5 million) repayable based on revenue thresholds[52] - The company has recorded CAD $83.1 million ($60.4 million) in respect of Government Contribution 2 from the Government of Canada as of March 31, 2025[54] - The company has a deferred government contribution of $164.4 million as of March 31, 2025, compared to $157.6 million as of December 31, 2024[57] Clinical Development and Trials - Cumulative total of 16 molecules advanced into the clinic as of March 31, 2025, an increase of 23% from 13 molecules in the previous year[82] - The company plans to start Phase 1 clinical trials in Canada for two AbCellera-led programs in the second half of 2025[73] - The company has initiated a total of 97 partner-initiated programs with downstream participation, reflecting an 8% increase from 90 programs[82] - The company’s ability to generate revenue is dependent on the success of its antibody discovery and development capabilities[129] - The successful development of product candidates is uncertain, with a high failure rate in clinical studies, which could adversely affect business and operating results[177] Market and Regulatory Challenges - The company faces challenges in obtaining adequate reimbursement for its products, which is crucial for market acceptance and revenue generation[192] - The Medicare Modernization Act and the Inflation Reduction Act have introduced pricing pressures and regulatory changes that could impact the pharmaceutical industry[194] - Regulatory approval for product candidates is subject to various factors, including government budget and funding levels, which could delay or prevent timely commercialization[176] - The company may experience delays in patient enrollment for clinical trials, which is critical for timely completion and regulatory approval[168] - Changes in regulatory requirements may necessitate amendments to clinical trial protocols, potentially affecting costs and timelines[162] Liquidity and Future Outlook - The company believes it has sufficient liquidity from existing cash and cash equivalents to meet its working capital needs for at least the next 36 months[123] - Future funding requirements will depend on various factors, including the introduction of new technologies and costs related to litigation[124] - The company anticipates continued losses for the foreseeable future and cannot predict when it may achieve profitability[115] - The company acknowledges that interim, preliminary, or top-line data from clinical trials may change as more patient data become available, which could significantly impact business prospects[173] Miscellaneous - The company is in an ongoing patent infringement litigation against Bruker, with a jury trial scheduled for January 2026[111] - The company has completed the implementation of the consolidated financial accounting module of its new ERP system, which is expected to enhance financial reporting accuracy[107] - The company is currently implementing changes to its internal controls over financial reporting due to the new ERP system[108] - The company does not have any product candidates approved for sale in any jurisdiction, limiting its ability to realize full market potential[186]

NEWS RELEASE AbCellera Reports Q1 2025 Business Results 5/8/2025 VANCOUVER, British Columbia--(BUSINESS WIRE)-- AbCellera (Nasdaq: ABCL) today announced financial results for the first quarter of 2025. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. "After completion of a successful first quarter, we are excited to introduce ABCL635 as a potential first- in-class antibody for the non-hormonal treatment of vasomotor symptoms (hot flashes) associated wi ...

AbCellera Biologics (ABCL) 2025 Conference May 05, 2025 09:30 AM ET Speaker0 We're going to get started with the first presentation of the morning. So our first presenter I am very excited to present is Andrew Booth, the Chief Financial Officer of Absella Biologics. Speaker1 Andrew, take it away. Do you put them on the screens? There we go. Perfect. Is this the excellent. Okay. A real pleasure to be here today. And actually, I wanna thank, first of all, Brian and Jollian and the whole Bloomberg team for hav ...

Financial Data and Key Metrics Changes - The company reported a revenue of almost $29 million for the year, a decrease from approximately $38 million in 2023, primarily due to a shift towards internal and co-development programs [37] - Research and development expenses were approximately $167 million, down $8 million from the previous year, reflecting a one-time payment of about $32 million made in 2023 [38] - The net loss for the year was roughly $163 million, compared to a loss of about $146 million the previous year, which included non-cash impairment charges for in-process R&D of approximately $47 million [39] Business Line Data and Key Metrics Changes - The company has a cumulative total of 96 partner-initiated programs with downstream participation, with 14 programs still actively led or co-led by the company [30][33] - The company initiated two new partnerships in the first half of 2024 and expanded one existing collaboration, while also reducing new discovery partnership activities [25][9] Market Data and Key Metrics Changes - The company is focusing on the therapeutic areas of oncology, neurology, and immunology, which reflect the broader industry activity [35] - The total addressable market for the lead program ABCL635 is estimated to be at least $2 billion in annual sales, while the atopic dermatitis market for ABCL575 is already over $10 billion [17][20] Company Strategy and Development Direction - The company is transitioning from a platform and partnership model to a clinical-stage biotech, with a focus on building an internal pipeline and reducing new discovery partnerships [7][61] - The strategic focus includes selecting programs based on unmet needs, commercial opportunities, differentiation, and clear development paths [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's liquidity position, with over $800 million available to execute its strategy [10][43] - The company plans to initiate Phase 1 clinical trials for its lead programs in 2025 and expects to complete its transition to a clinical-stage biotech [27][24] Other Important Information - The company has completed its move to a new headquarters and is on track to bring its clinical manufacturing facility online in 2025 [9] - The company has received commitments for funding from the Government of Canada's Strategic Innovation Fund and the government of British Columbia, which will support its GMP facility and internal pipeline advancements [42] Q&A Session Summary Question: What competencies are needed for clinical trials across multiple disease areas? - Management stated that they are building up translational science and clinical development teams to support their first two programs moving into clinical development [47][48] Question: Is there a finite number of candidates under the AbbVie collaboration? - Management confirmed that they are excited about the collaboration and are working on multiple but a small number of targets [54] Question: What is the attrition rate for partner-initiated programs? - Management indicated that the attrition rate is consistent with expectations, with over half of the programs still progressing after being handed back to partners [60] Question: Why reduce the number of partnerships pursued? - Management explained that the transition to a clinical-stage biotech necessitated a focus on internal programs, while still seeking opportunities in TCE collaborations [62] Question: What preparations are being made for the upcoming CTA filings? - Management confirmed that extensive preparations have been made for both programs, with no noteworthy special considerations at this time [83]

Company Performance - AbCellera Biologics Inc. reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and an improvement from a loss of $0.17 per share a year ago, representing an earnings surprise of 26.67% [1] - The company posted revenues of $5.05 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 40.83%, and down from $9.18 million in the same quarter last year [2] - Over the last four quarters, AbCellera has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Outlook - The immediate price movement of AbCellera's stock will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $13.97 million, and for the current fiscal year, it is -$0.71 on revenues of $46.43 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which AbCellera belongs, is currently in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AbCellera's stock performance [5][6]

Investment and Financials - The company has invested over $600 million in building its infrastructure and expanding capabilities since its incorporation in 2012[33]. - The company has generated over $100 million in cumulative earnings since 2012 and has approximately $840 million in available liquidity as of December 31, 2024[33]. - The company secured CAD $300 million ($222.3 million) in non-dilutive financing in May 2023 to build new capabilities for developing and manufacturing antibody medicines[57]. - The company expects to incur losses and negative operating cash flow in the near-to-medium term due to ongoing investments in its pipeline[112]. - The company has a long-term capital allocation strategy, focusing on building intellectual capital and infrastructure to support future drug development[113]. Research and Development - Approximately 40% of the total research and development spend in 2024 is allocated to platform development, enhancing capabilities for future drug discovery[56]. - The company is advancing a pipeline of more than 20 internal discovery programs across multiple modalities and indications[26]. - The company aims to reduce the time from target nomination to IND filing to two years or less through ongoing investments in integrated target-to-clinic capabilities[154]. - The company has developed its T-cell-engager platform and initiated internal programs targeting eight important tumor targets, alongside 10 internal programs focused on GPCRs and ion channels[139]. - The company’s investments in technology development are aimed at increasing the probability of success for its drug development programs, particularly in high unmet medical need areas[151]. Clinical Trials and Drug Development - The company expects to submit Clinical Trial Applications for its internal programs ABCL635 and ABCL575 in Q2 2025[26]. - ABCL635, targeting metabolic and endocrine conditions, is anticipated to enter clinical trial authorization (CTA) submission in Q2 2025, with a potential market exceeding $2 billion in annual sales[62]. - ABCL575, a monoclonal antibody for atopic dermatitis, is also expected to submit a CTA in Q2 2025, leveraging a clinically validated mechanism to modulate inflammation[63][64]. - The company advanced two drug programs, ABCL635 and ABCL575, into IND/CTA-enabling studies in 2023, with plans for clinical trial authorizations in 2025[61]. - The company plans to start its first clinical trial in 2025, which will require compliance with numerous regulations in the life sciences sector[217]. Partnerships and Collaborations - The company has established multiple partnership agreements with pharmaceutical and biotechnology companies, including Eli Lilly and Company for multi-target, multi-year projects in immunology and neuroscience, announced on July 31, 2024[93]. - Total potential milestone payments from partnership agreements amount to $8.69 billion, with $5.51 billion expected from commercial milestones[97]. - The company has initiated 96 partner-initiated programs as of December 31, 2024, which could yield milestone and royalty payments[92]. - The company has successfully completed the agreed scope of work for 76 out of 96 partner-initiated programs, with 51 programs actively progressing[143]. - The company earned over $950 million in combined royalties from commercial sales of COVID-19 antibody assets developed in partnership with Lilly from 2020 to 2022[138]. Market and Competitive Landscape - The biotechnology sector is projected to be a significant growth opportunity, with global therapeutic antibody sales nearing $300 billion in 2023 and expected to exceed $450 billion by 2028, reflecting a CAGR of over 10%[80]. - The therapeutic antibody market is characterized by a significant number of blockbuster drugs, with around 50 achieving annual sales exceeding $1 billion in 2023[80]. - Over 50% of new-drug approvals in the U.S. from 2011 to 2021 originated from smaller biotechnology companies with annual revenues below $500 million, indicating a competitive landscape[101]. - The company faces competition from various sources, including large pharmaceutical companies and specialized biotechnology firms, in the antibody therapeutics market[106]. - The company aims to unlock new market segments and improve discovery speed, estimating that accelerating the path to market by one year could enhance the value of an average approved treatment by over $100 million[88]. Workforce and Employee Engagement - The voluntary turnover rate for the company was 4.7% in 2024, indicating strong employee engagement and retention[77]. - The company employs a workforce comprising approximately 62% scientists, 14% engineers and data scientists, and 24% business professionals, with over 54% holding advanced degrees[75]. Intellectual Property and Patents - The company has developed an expansive patent portfolio with over 100 issued or allowed patents and over 70 pending applications worldwide as of December 31, 2024[172]. - The company utilizes various forms of intellectual property protection, including trademarks, copyrights, and trade secrets, to safeguard its proprietary rights[173]. - The company acquired Trianni, including all existing intellectual property and issued patents related to the Trianni mouse, with patents expected to expire in July 2031[196][197]. - The Trianni intellectual property portfolio includes 14 issued patents in various jurisdictions, focusing on transgenic animals and methods of use[197]. - The company has a patent family directed to enhanced production of immunoglobulins, which includes six issued patents and four pending applications, with expiration expected in February 2037[198]. Regulatory Compliance - The company is subject to various regulations governing clinical studies and commercial sales, impacting its ability to develop and sell therapeutic products[219]. - The company is subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, which could impact its operations and interactions in the healthcare sector[222]. - The company maintains compliance with environmental laws, which govern the handling and disposal of hazardous substances used in its operations[221].

Financial Performance - Total revenue for FY 2024 was $28.8 million, a decrease of 24.2% from $38.0 million in 2023[8] - Net loss for FY 2024 was $162.9 million, compared to a net loss of $146.4 million in 2023, representing a 11.1% increase in losses[4] - Revenue for Q4 2024 was $5.1 million, representing 18% of total revenue for the year[8] - The net loss for Q4 2024 was $34.2 million, or $(0.12) per share[9] - Net earnings for December 31, 2023, showed a loss of $146,398, compared to a profit of $158,519 in 2022, indicating a significant decline in profitability[24] Expenses - Research and Development (R&D) expenses for FY 2024 were $167.3 million, down 4.3% from $175.7 million in 2023[8] - General & Administrative (G&A) expenses increased to $72.7 million in FY 2024, up 18.0% from $61.0 million in 2023[8] - The company reported a significant increase in amortization and impairment of intangible assets, rising to $78,312 in 2024 from $11,637 in 2023[24] - Stock-based compensation increased to $64,183 in 2023, up from $49,481 in 2022, reflecting a rise of approximately 30%[24] Cash Flow and Liquidity - The company ended FY 2024 with approximately $840 million in total available liquidity, including $652.9 million in cash and cash equivalents[8] - Cash flows from operating activities decreased to $(43,877) for the year ending December 31, 2023, down from $277,360 in 2022[24] - Total cash and cash equivalents at the end of the period decreased to $160,610 in 2023 from $414,650 in 2022, reflecting a decline of approximately 61%[24] - Cash flows from investing activities showed a net outflow of $(221,108) in 2023, compared to $(352,625) in 2022, indicating a reduction in investment spending[24] - The total cash, cash equivalents, and restricted cash shown on the balance sheet decreased to $158,320 in 2023 from $411,535 in 2022, a decline of approximately 62%[24] Clinical Development - Cumulative partner-initiated program starts with downstreams increased to 96 in 2024, up 10% from 87 in 2023[5] - The number of molecules in the clinic rose to 16, reflecting a 23% increase from 13 in 2023[5] - AbCellera plans to initiate Phase 1 clinical trials for its first two programs, ABCL635 and ABCL575, in 2025[2] Other Financial Metrics - The company experienced a decrease in net cash provided by financing activities, which rose to $10,356 in 2023 from $(1,628) in 2022[24] - Research fee and grant receivable increased significantly, with a decline of $(45,933) in 2023 compared to $(22,715) in 2022[24] - The company reported a cash outflow of $(763,982) for the purchase of marketable securities in 2022, which increased to $(1,021,510) in 2023[24]

Company Overview - AbCellera Biologics Inc. is highlighted as a unique developmental concern, marking the first analysis since mid-February of the current year [2]. Investment Insights - The Biotech Forum has seen significant discussions around profitable buy-write or covered call strategies on selected biotech stocks, indicating a focus on trading ideas within the biotech sector [3]. Analyst Position - The analyst has disclosed a beneficial long position in AbCellera Biologics shares, indicating personal investment interest and confidence in the company's potential [4].

Financial Data and Key Metrics - Revenue for Q3 2024 was approximately $7 million, driven by research fees from partnered programs, consistent with Q3 2023 [12] - Research and development expenses increased to $41 million, up $3 million from the previous year, due to ongoing program execution and internal pipeline investments [12] - Sales and marketing expenses decreased slightly to $3 million, while general and administrative expenses rose to $19 million, primarily due to intellectual property defense costs [13] - Net loss for the quarter was $51 million, including a non-cash impairment charge of $32 million related to discontinued development of next-generation transgenic mice [14] - Cash and equivalents stood at $670 million, with an additional $210 million in available government funding, bringing total liquidity to $880 million [18] Business Line Data and Key Metrics - The company initiated two new partner programs in Q3 2024, bringing the cumulative total to 95 programs with downstream participation [11] - ABD-147 received orphan drug designation from the FDA, highlighting the potential for future milestone fees and royalty payments [11] - The company expects research fee revenue to decline as it shifts focus to internal and co-development programs [12] Market Data and Key Metrics - The company completed the move to its new headquarters in Vancouver and is on track to bring its GMP manufacturing facility online in 2025 [8] - The company expanded its partnership with Eli Lilly, focusing on co-development collaborations with shared ownership of resulting assets [9] Company Strategy and Industry Competition - The company is transitioning from a platform company to a clinical-stage biotech, with a focus on advancing internal programs and building platform capabilities [6] - The first two pipeline programs, ABCL635 and ABCL575, are on track for CTA filings in Q2 2025, with a broad portfolio of discovery-stage programs in development [7] - The company is prioritizing co-development collaborations and leveraging its TCE platform, with updated data to be presented at CITSE [9] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's transition to a clinical-stage company, with a focus on delivering value to patients and shareholders [10] - The company anticipates further investments in its translational and development teams as the pipeline advances [8] - Management highlighted the strong liquidity position, with sufficient funds to support operations and investments for the next three years [18] Other Important Information - The company reported a non-cash impairment charge of $32 million related to the discontinuation of next-generation transgenic mice development [14] - Investments in property, plant, and equipment totaled $63 million, partially offset by government contributions and proceeds from the sale of a stake in Invatex [16][17] Q&A Session Summary Question: Competitive landscape for OX40 and OX40 ligand therapies [20] - Management discussed the advantages of OX40 ligand-targeted therapies, emphasizing the non-depleting mechanism of ABCL575 compared to competitors [21][22] - The company remains bullish on the potential of OX40 ligand antibodies, with preclinical data expected to be presented in 2025 [24] Question: Data expectations for T-cell engagers at CITSE [26] - The company will present updated data on its TCE platform, including programs demonstrating desired profiles in killing and cytokine response [27] Question: Independent development of TCE programs [30] - The company has the liquidity and capabilities to advance two to three new development candidates per year, with potential for equity financing or out-licensing in the future [31][32] Question: Clinical trial site requirements for government funding [35] - Phase 1 trials for ABCL575 and ABCL635 will be conducted in Canada to qualify for government funding, with potential expansion to the US or globally if needed [36][37] Question: Market potential and competition for ABCL635 [39] - ABCL635 targets a multi-pass transmembrane protein in metabolic and endocrine disorders, with a conservative addressable market of over $2 billion [40] Question: Ramp-up of spending and resource allocation [43] - The company expects R&D expenses to remain stable in 2025, with a significant reduction in CapEx as facility builds are completed [44] Question: Positioning of ABCL575 relative to IL receptor antibodies [46] - ABCL575 is expected to enter as a second-line therapy behind DUPIXENT, with potential to move to first-line due to its durability advantages [47][48] Question: Ideal partnership for the TCE platform [51] - The company is focused on collaborations that advance the science of TCEs, with an emphasis on creating effective and safe therapies for cancer patients [52][53] Question: Update on GMP facility and Biosecure Act impact [56] - The GMP facility is on track to bring its first molecules online in late 2025, with the company well-positioned to benefit from geopolitical shifts in manufacturing [57][58][59] Question: Prioritization of internal programs [60] - The company's near-term priorities include capital allocation decisions to identify a major winner, building a differentiated portfolio, and maintaining operational efficiency [60] Closing Remarks - Management thanked participants and expressed optimism about future updates [62]