AbCellera Biologics (ABCL) Q2 2024 earnings summary

Executive summary

• Capital allocation prioritized internal pipeline advancement, platform and facility investments, and select strategic partnerships, including expanded collaborations with Eli Lilly, Regeneron, and Gilead.

• Internal pipeline programs ABCL-635 and ABCL-575 are progressing toward clinical trial applications in Q2 2025.

• Four T-cell engager molecules are advancing into preclinical efficacy models, targeting oncology and autoimmunity.

• Achieved partner milestones: Abdera's ABD-147 received IND clearance and FDA Fast Track; Invetx to be acquired by Dechra Pharmaceuticals for up to $520 million, with equity and royalty stakes held.

• Two internal programs advanced into IND-enabling studies this quarter.

Financial highlights

• Q2 2024 revenue was $7.3 million, down from $10.1 million in Q2 2023, mainly due to lower research fees and $1.5 million in milestone payments.

• Net loss for Q2 2024 was $36.9 million ($0.13 per share), compared to $30.5 million ($0.11 per share) in Q2 2023.

• Operating expenses rose to $100.8 million in Q2 2024, up from $61.4 million in Q2 2023, driven by a $32 million impairment charge related to the TetraGenetics acquisition.

• R&D expenses increased to $40.9 million; G&A expenses rose to $20.2 million.

• Cash, cash equivalents, and marketable securities totaled $697.6 million as of June 30, 2024, with over $900 million in total available liquidity including government funding.

Outlook and guidance

• ABCL-635 and ABCL-575 expected to submit clinical trial applications in Q2 2025.

• Research fee revenue expected to trend lower as focus shifts to internal and co-development programs.

• Continued significant investment in R&D, internal pipeline, and infrastructure, with no need for additional external funding anticipated for at least the next 36 months.

• Investments in CMC and GMP manufacturing capabilities to continue at current rate through 2024, substantially complete by early 2025.

• Revenue expected to remain variable and dependent on partner milestones and out-licensing success.