EX-99.1 2 q22023earningspressrelease.htm EX-99.1 Document
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NEWS RELEASE


AbCellera Reports Q2 2023 Business Results

08/03/2023



●Total revenue of $10 million, compared to $46 million in Q2 2022
●Total cumulative partnered program starts of 106, up 20% from Q2 2022
●Net loss of $0.11 per share on a basic and diluted basis, compared to a net loss of $0.02 per share on a basic and diluted basis in Q2 2022

VANCOUVER, British Columbia, August 3, 2023 -- AbCellera (Nasdaq: ABCL) today announced financial results for the second quarter of 2023. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“In the second quarter we secured over $220 million in strategic financing from the Governments of Canada and British Columbia to accelerate the execution of our strategy. When combined with our cash, cash equivalents, and marketable securities of over $800 million this brings our total available liquidity to over $1 billion,” said Carl Hansen, Ph.D., founder and CEO of AbCellera. “By strengthening our liquidity position, our discovery and development engine, and our portfolio, this funding will drive value in multiple dimensions of our business, including advancing more pre-partnered programs to the clinic.”

Q2 2023 Business Summary
●Earned $10.1 million in total revenue.
●Generated a net loss of $30.5 million, compared to a net loss of $6.8 million in Q2 2022.
●Maintained a cumulative total of 177 programs under contract with 41 different partners.
●Reached a cumulative total of 106 partnered program starts.
●Continuing to report nine molecules cumulatively advanced to the clinic.
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Key Business Metrics
Cumulative MetricsJune 30, 2022June 30, 2023Change %
Number of discovery partners38418 %
Programs under contract1641778 %
Partnered program starts8810620 %
Molecules in the clinic6950 %

AbCellera maintained a cumulative total of 177 programs under contract (up from 164 on June 30, 2022) that are either completed, in progress, or under contract with 41 different partners as of June 30, 2023 (up from 38 on June 30, 2022). AbCellera started discovery on an additional five partner-initiated programs to reach a cumulative total of 106 partnered program starts in Q2 2023 (up from 88 on June 30, 2022). AbCellera’s partners have advanced a cumulative total of nine molecules into the clinic (up from six on June 30, 2022).

Discussion of Q2 2023 Financial Results
●Revenue – Total revenue was $10.1 million, compared to $45.9 million in Q2 2022. The partnership business generated research fees of $9.8 million, compared to $12.5 million in Q2 2022. Licensing revenue was $0.2 million.
●Research & Development (R&D) Expenses – R&D expenses were $36.5 million, compared to $26.7 million in Q2 2022, reflecting continued growth in program execution and platform development.
●Sales & Marketing (S&M) Expenses – S&M expenses were $3.8 million, compared to $3.1 million in Q2 2022. The increase reflects continued investments in business development.
●General & Administrative (G&A) Expenses – G&A expenses were $15.5 million, compared to $14.4 million in Q2 2022, with the increase driven by investments to support the growth of the company.
●Net Loss – Net loss of $30.5 million, or $(0.11) per share on a basic and diluted basis, compared to a net loss of $6.8 million, or $(0.02) per share on a basic and diluted basis in Q2 2022.
●Liquidity – $822.9 million of total cash, cash equivalents, and marketable securities.
Conference Call and Webcast
AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
The live webcast of the earnings conference call can be accessed on the Events and Presentations section of AbCellera’s Investor Relations website. A replay of the webcast will be available through the same link following the conference call.

About AbCellera Biologics Inc.
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AbCellera is breaking the barriers of conventional antibody discovery to bring better medicines to patients, sooner. AbCellera’s engine integrates expert teams, technology, and facilities with the data science and automation needed to propel antibody-based medicines from target to clinic in nearly every therapeutic area with precision and speed. AbCellera provides innovative biotechs and leading pharmaceutical companies with a competitive advantage that empowers them to move quickly, reduce cost, and tackle the toughest problems in drug development. For more information, please visit www.abcellera.com.

Definition of Key Business Metrics
We regularly review the following key business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections, and make strategic decisions. We believe that the following metrics are important to understand our current business. These metrics may change or may be substituted for additional or different metrics as our business develops.
Number of discovery partners represents the unique number of partners with whom we have executed partnership contracts. We view this metric as an indication of the competitiveness of our engine and our level of market penetration. The metric also relates to our opportunities to secure programs under contract.
Programs under contract represent the number of antibody development programs that are under contract for delivery of discovery research activities. A program under contract is counted when a contract is executed with a partner under which we commit to discover or deliver antibodies against one selected target. A target is any relevant antigen for which a partner seeks our support in developing binding antibodies. We view this metric as an indication of commercial success and technological competitiveness. It further relates to revenue from access fees. The cumulative number of programs under contract with downstream participation is related to our ability to generate future revenue from milestone payments and royalties.
Partnered program starts represent the number of unique programs under contract for which we have commenced the discovery effort. The discovery effort commences on the later of (i) the day on which we receive sufficient reagents to start discovery of antibodies against a target and (ii) the day on which the kick-off meeting for the program is held. We view this metric as an indication of our operational capacity to execute on programs under contract. It is also an indication of the selection and initiation of discovery projects by our partners and the resulting potential for near-term payments. Cumulatively, partnered program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties in the mid- to long-term.
Molecules in the clinic represent the count of unique molecules for which an Investigational New Drug, or IND, New Animal Drug, or equivalent under other regulatory regimes, application has been approved based on an antibody that was discovered either by us or by a partner using licensed AbCellera technology. Where the date of such application approval is not known to us, the date of the first public announcement of a clinical trial will be used for the purpose of this
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metric. We view this metric as an indication of our near- and mid-term potential revenue from milestone fees and potential royalty payments in the long term.

AbCellera Forward-Looking Statements
This press release 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 current beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts, and other matters regarding our business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
Source: AbCellera Biologics Inc.

Inquiries
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1 (236) 521-6774
Business Development: Murray McCutcheon, Ph.D.; bd@abcellera.com, +1 (604) 559-9005
Investor Relations: Josephine Hellschlienger, Ph.D.; ir@abcellera.com, +1 (778) 729-9116
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AbCellera Biologics Inc.
Condensed Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss)
(All figures in U.S. dollars. Amounts are expressed in thousands except share and per share data)
(Unaudited)
Three months ended June 30,Six months ended June 30,
2022202320222023
Revenue:
Research fees$12,538 $9,830 $21,871 $20,400 
Licensing revenue147 226 377 598 
Milestone payments- - - 1,250 
Royalty revenue33,232 - 340,249 - 
Total revenue45,917 10,056 362,497 22,248 
Operating expenses:
Royalty fees5,210 - 49,847 - 
Research and development(1)
26,685 36,473 53,052 89,120 
Sales and marketing(1)
3,120 3,841 5,490 7,612 
General and administrative(1)
14,412 15,521 28,680 30,655 
Depreciation and amortization4,886 5,610 8,875 11,124 
Total operating expenses54,313 61,445 145,944 138,511 
Income (loss) from operations(8,396)(51,389)216,553 (116,263)
Other (income) expense
Interest (income)(1,414)(10,779)(2,079)(20,537)
Grants and incentives(1,535)(4,576)(6,730)(7,951)
Other1,439 1,970 1,438 (1,624)
Total other (income)(1,510)(13,385)(7,371)(30,112)
Net earnings (loss) before income tax(6,886)(38,004)223,924 (86,151)
Income tax (recovery) expense(101)(7,476)62,136 (15,513)
Net earnings (loss)$(6,785)$(30,528)$161,788 $(70,638)
Foreign currency translation adjustment(211)122 296 (508)
Comprehensive income (loss)$(6,996)$(30,406)$162,084 $(71,146)
Net earnings (loss) per share attributable to common shareholders
Basic$(0.02)$(0.11)$0.57 $(0.24)
Diluted$(0.02)$(0.11)$0.52 $(0.24)
Weighted-average common shares outstanding
Basic284,686,542288,905,587284,292,312288,357,081
Diluted284,686,542288,905,587313,361,183288,357,081

(1) Exclusive of depreciation and amortization
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AbCellera Biologics Inc.
Condensed Consolidated Balance Sheet
(All figures in U.S. dollars. Amounts are expressed in thousands except share data)
(Unaudited)
December 31, 2022June 30, 2023
Assets
Current assets:
Cash and cash equivalents$386,535 $179,747 
Marketable securities499,950 615,947 
Total cash, cash equivalents, and marketable securities886,485 795,694 
Accounts and accrued receivable38,593 45,678 
Restricted cash25,000 25,000 
Other current assets75,413 64,363 
Total current assets1,025,491 930,735 
Long-term assets:
Property and equipment, net217,255 259,640 
Intangible assets, net131,502 126,747 
Goodwill47,806 47,806 
Investments in and loans to equity accounted investees72,522 58,792 
Other long-term assets46,331 113,446 
Total long-term assets515,416 606,431 
Total assets$1,540,907 $1,537,166 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and other liabilities$33,150 $52,395 
Contingent consideration payable44,211 54,874 
Accrued royalties payable19,347 3,094 
Deferred revenue21,612 8,542 
Total current liabilities118,320 118,905 
Long-term liabilities:
Operating lease liability76,675 78,079 
Deferred revenue19,516 27,716 
Deferred government contributions40,801 76,354 
Contingent consideration payable16,054 5,774 
Deferred tax liability33,178 33,178 
Other long-term liabilities3,086 2,333 
Total long-term liabilities189,310 223,434 
Total liabilities307,630 342,339 
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited authorized shares at December 31, 2022 and June 30, 2023: 286,851,595 and 289,189,469 shares issued and outstanding at December 31, 2022 and June 30, 2023, respectively
734,365 744,756 
Additional paid-in capital74,118 96,423 
Accumulated other comprehensive (loss)(1,391)(1,899)
Accumulated earnings426,185 355,547 
Total shareholders' equity1,233,277 1,194,827 
Total liabilities and shareholders' equity$1,540,907 $1,537,166 
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AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars)
(Unaudited)
Six months ended June 30,
20222023
Cash flows from operating activities:
Net earnings (loss)$161,788 $(70,638)
Cash flows from operating activities:
Depreciation of property and equipment3,681 5,810 
Amortization of intangible assets5,213 5,314 
Amortization of operating lease right-of-use assets2,120 3,252 
Stock-based compensation24,404 31,873 
Other(298)(4,429)
Changes in operating assets and liabilities:
Accounts and accrued research fees receivable(6,963)(24,269)
Accrued royalties receivable106,583 9,260 
Income taxes payable52,251 22,884 
Accounts payable and accrued liabilities(1,882)(2,827)
Deferred revenue(2,979)(4,870)
Accrued royalties payable28,049 (16,253)
Deferred grant income5,406 25,566 
Other assets(4,139)(4,833)
Net cash provided by (used in) operating activities373,234 (24,160)
Cash flows from investing activities:
Purchases of property and equipment(45,817)(42,185)
Purchase of marketable securities(134,306)(528,891)
Proceeds from marketable securities145,808 422,814 
Receipt of grant funding8,098 7,693 
Long-term investments and other assets(11,657)(36,757)
Investment in and loans to equity accounted investees(15,694)(6,673)
Net cash used in investing activities(53,568)(183,999)
Cash flows from financing activities:
Payment of liability for in-licensing agreement and contingent consideration(4,133)(677)
Proceeds (repayment) from long-term debt and exercise of stock options2,175 638 
Net cash used in financing activities(1,958)(39)
Effect of exchange rate changes on cash and cash equivalents(1,411)584 
Increase (decrease) in cash and cash equivalents316,297 (207,614)
Cash and cash equivalents and restricted cash, beginning of period501,142 414,651 
Cash and cash equivalents and restricted cash, end of period$817,439 $207,037 
Restricted cash included in other assets1,824 2,290 
Total cash, cash equivalents, and restricted cash shown on the balance sheet$815,615 $204,747 
Supplemental disclosure of non-cash investing and financing activities
Property and equipment in accounts payable2,146 11,718 
Right-of-use assets obtained in exchange for operating lease obligation796 2,945 

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