Abcellera reports full year 2021 business results
Vancouver, british columbia--(business wire)--abcellera (nasdaq: abcl), a technology company with a centralized operating system for next-generation antibody discovery, today announced financial results for full year 2021. all financial information in this press release is reported in u.s. dollars. “in 2021 we made significant advancements in executing our long-term strategy by growing our portfolio, deepening our platform to unlock new modalities, and expanding our deal structures to add new ways to capture value,” said carl hansen, ph.d., ceo and president of abcellera. “we move into 2022 with momentum and a strong cash position to continue to grow our business and to make investments that will increase the speed, efficiency, and scalability of our platform.” 2021 business highlights earned $375 million in total revenue, including $335 million in milestones and royalties, of which $138 million is in accounts receivable. ended the year with over $720 million in cash, equivalents, and marketable securities. generated $153 million in net earnings, up from $119 million in 2020. started discovery on 26 programs, bringing the cumulative number of program starts to 78. achieved a cumulative total of 156 programs under contract with 36 partners. reached a cumulative total of five molecules in the clinic across oncology, infectious disease, animal health, and immunology, dermatology and gastrointestinal disease. acquired tetragenetics to expand capabilities for high-value transmembrane protein targets. expanded the leadership team with the appointment of neil berkley as chief business officer, neil aubuchon as chief commercial officer, and appointed andrew lo, ph.d., to the board of directors. key business metrics year ended december 31, change cumulative metrics 2020 2021 % number of discovery partners 27 36 33 % programs under contract 103 156 51 % program starts 52 78 50 % programs in the clinic 1 5 400 % abcellera added 53 discovery programs in 2021 to reach a cumulative total of 156 discovery programs as of december 31, 2021 (up 51% from 103 on december 31, 2020), that are either completed, in progress, or under contract with 36 different partners (up from 27 on december 31, 2020). abcellera started discovery on 26 programs in 2021 to reach a cumulative total of 78 program starts (up from 52 on december 31, 2020). abcellera’s partners advanced four additional molecules into the clinic in 2021, bringing the cumulative total to five. discussion of 2021 financial results year ended december 31, change 2020 2021 amount % (in thousands, except percentages) revenue research fees $ 19,848 $ 19,076 $ (772 ) (4 )% licensing revenue - 20,778 20,778 n/a milestone payments 15,000 8,000 (7,000 ) (47 )% royalty revenue 198,307 327,349 129,042 65 % total revenue $ 233,155 $ 375,203 $ 142,048 61 % revenue – total revenue was $375.2 million, compared to $233.2 million in 2020, of which $327.3 million is attributable to royalties. the partnership business generated research fees of $19.1 million, compared to $19.8 million in 2020. licensing revenue was $20.8 million. research & development (r&d) expenses – r&d expenses were $62.1 million, compared to $29.4 million in 2020, reflecting continuing investments in the capacity and capabilities of abcellera’s discovery and development platform. sales & marketing (s&m) expenses – s&m expenses were $6.9 million, compared to $3.8 million in 2020. general & administrative (g&a) expenses – g&a expenses were $41.8 million, compared to $11.9 million in 2020, with the increase driven primarily by investments to support the growth of the company, non-cash stock-based compensation in line with publicly listed companies, and protecting intellectual property. net earnings – net earnings were $153.5 million, or $0.56 per share on a basic and $0.48 per share on a diluted basis, compared to net earnings of $118.9 million, or $0.53 per share on a basic and $0.45 per share on a diluted basis in 2020. liquidity – $723.0 million of cash, cash equivalents, and marketable securities. q4 highlights and financial results started nine programs. u.s. shipments of bamlanivimab resumed. added one program under contract with a new, undisclosed partner. revenue for the fourth quarter of 2021 was $139.3 million, representing 37% of the total for 2021. $134.5 million was generated in the quarter from royalties on net sales of bamlanivimab and $4.7 million from research fees, representing 41% and 25% of the respective totals for 2021. operating expenses totaled $57.8 million in the fourth quarter or 34% of the total for 2021 and include $21.9 million in royalty fees (48% of the total for the year). net earnings for the fourth quarter were $59.9 million, 39% of the total for 2021, or $0.21 per share on a basic and $0.19 per share on a diluted basis. conference call and webcast abcellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. pacific standard time (5:00 p.m. eastern standard 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. abcellera is a technology company that searches, decodes, and analyzes natural immune systems to find antibodies that its partners can develop into drugs to prevent and treat disease. abcellera partners with drug developers of all sizes, from large pharmaceutical to small biotechnology companies, empowering them to move quickly, reduce costs, 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. for example, as our business matures and to the extent programs are discontinued, we anticipate updating these metrics to reflect such changes. 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 technology stack and our current 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 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 technology 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. 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 near-term potential to earn research fees. cumulatively, 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 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 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. abcellera biologics inc. condensed consolidated statement of operations (expressed in thousands of u.s. dollars except share and per share data) (unaudited) year ended december 31, 2019 2020 2021 revenue: research fees $ 11,612 $ 19,848 $ 19,076 licensing revenue - - 20,778 milestone payments - 15,000 8,000 royalty revenue - 198,307 327,349 total revenue 11,612 233,155 375,203 operating expenses: royalty fees - 27,143 45,516 research and development (1) 10,113 29,393 62,062 sales and marketing(1) 1,263 3,842 6,913 general and administrative(1) 2,749 11,910 41,848 depreciation and amortization 1,604 4,836 14,451 total operating expenses 15,729 77,124 170,790 income (loss) from operations (4,117 ) 156,031 204,413 other (income) expense interest income (155 ) (293 ) (3,330 ) interest and other expense 209 6,511 5,225 foreign exchange (gain) loss (186 ) 300 855 grants and incentives (1,774 ) (8,320 ) (17,486 ) total other income (1,906 ) (1,802 ) (14,736 ) net earnings (loss) before income tax (2,211 ) 157,833 219,149 income tax expense - 38,915 65,685 net earnings (loss) $ (2,211 ) $ 118,918 $ 153,464 foreign currency translation adjustment - - 280 comprehensive income (loss) $ (2,211 ) $ 118,918 $ 153,744 net earnings (loss) per share attributable to common shareholders basic $ (0.01 ) $ 0.53 $ 0.56 diluted $ (0.01 ) $ 0.45 $ 0.48 weighted-average common shares outstanding basic 151,327,560 159,195,023 275,763,745 diluted 151,327,560 263,129,765 318,294,236 1 exclusive of depreciation and amortization abcellera biologics inc. condensed consolidated balance sheet (expressed in thousands of u.s. dollars except share data) (unaudited) december 31, 2020 december 31, 2021 assets current assets: cash and cash equivalents $ 594,116 $ 476,142 marketable securities - 246,835 total cash, cash equivalents, and marketable securities 594,116 722,977 accounts and accrued receivable 213,239 160,576 restricted cash - 25,000 other current assets 5,970 21,247 total current assets 813,325 929,800 long-term assets: property and equipment, net 17,923 111,616 intangible assets, net 115,153 148,392 goodwill 31,500 47,806 investments in and loans to equity accounted investees 19,247 50,313 other long-term assets 8,388 30,642 total long-term assets 192,211 388,769 total assets $ 1,005,536 $ 1,318,569 liabilities and shareholders' equity current liabilities: accounts payable and other liabilities $ 20,195 $ 32,017 current portion of contingent consideration payable 13,411 22,934 income taxes payable 36,152 35,683 accrued royalties payable 27,143 22,506 deferred revenue 6,589 7,536 total current liabilities 103,490 120,676 long-term liabilities: operating lease liability 3,715 36,413 deferred revenue and grant funding 25,894 60,758 contingent consideration payable 9,148 35,886 deferred tax liability 26,161 37,370 other long-term liabilities 6,620 1,733 total long-term liabilities 71,538 172,160 total liabilities 175,028 292,836 commitments and contingencies shareholders' equity: common shares: no par value, unlimited authorized shares at december 31, 2020 and 2021: 269,497,768 and 283,257,104 shares issued and outstanding at december 31, 2020 and 2021 respectively 710,387 722,430 additional paid-in capital 5,919 35,357 accumulated other comprehensive income - 280 accumulated earnings 114,202 267,666 total shareholders' equity 830,508 1,025,733 total liabilities and shareholders' equity $ 1,005,536 $ 1,318,569 abcellera biologics inc. condensed consolidated statement of cash flows (expressed in thousands of u.s. dollars) (unaudited) december 31, 2019 december 31, 2020 december 31, 2021 cash flows from operating activities: net earnings (loss) $ (2,211 ) $ 118,918 $ 153,464 cash flows from operating activities: depreciation of property and equipment 1,604 2,317 4,403 amortization of intangible assets - 2,519 10,062 amortization of operating lease right-of-use assets 243 435 2,785 stock-based compensation 890 8,397 30,646 deferred tax expense - 2,098 (2,018 ) other 194 4,707 3,570 changes in operating assets and liabilities: accounts and accrued research fees receivable (1,803 ) (5,467 ) (37,386 ) accrued royalties receivable - (197,553 ) 59,864 income taxes payable - 36,412 (13,530 ) accounts payable and accrued liabilities 150 6,601 1,400 operating lease liabilities 2,784 (350 ) (778 ) deferred revenue (6 ) 21,810 8,624 accrued royalties payable - 27,143 (4,637 ) deferred grant revenue - (6,763 ) 30,718 other operating assets and liabilities 849 1,466 (2,603 ) net cash provided by operating activities 2,694 22,690 244,584 cash flows from investing activities: purchases of property and equipment (3,997 ) (9,673 ) (58,452 ) purchase of intangible assets - (5,000 ) - repayment (issuance) of related party loans (1,783 ) 1,783 - purchase of marketable securities - - (274,710 ) proceeds from marketable securities - - 27,608 receipt of grant funding - - 32,621 acquisitions, net of cash acquired - (87,643 ) (11,457 ) long-term investments and other assets - - (17,534 ) investment in and loans to equity accounted investees - (19,247 ) (30,323 ) net cash used in investing activities (5,780 ) (119,780 ) (332,247 ) cash flows from financing activities: repayment of long-term debt (399 ) (19,942 ) (1,823 ) proceeds from long-term debt 193 15,490 872 proceeds from convertible debentures - 89,990 - payment of contingent consideration - - (2,550 ) payment of liability for in-licensing agreement - - (5,000 ) short-term borrowings 387 (387 ) - issuance of common shares pursuant to exercise of stock options and other 25 1,000 4,615 net proceeds from issuance of common shares - 522,840 - proceeds from issuance of preferred shares - series a1 and a2 financing (11 ) 74,662 - net cash provided by (used in) financing activities 195 683,653 (3,886 ) effect of exchange rate changes on cash and cash equivalents - - (1,425 ) increase (decrease) in cash and cash equivalents (2,891 ) 586,563 (92,974 ) cash and cash equivalents and restricted cash, beginning of year 10,444 7,553 594,116 cash and cash equivalents and restricted cash, end of year $ 7,553 $ 594,116 $ 501,142 supplemental disclosure of non-cash investing and financing activities: property and equipment purchases in accounts payable 35 656 5,397 right-of-use assets obtained in exchange for operating lease obligation 2,830 1,679 36,638 purchase of intangible assets in exchange for in-licensing agreement payable - 9,060 -
