AbCellera Biologics(ABCL) - 2025 Q1 - Quarterly Report

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]