Abcellera reports q2 2022 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 the second quarter of 2022. all financial information in this press release is reported in u.s. dollars, unless otherwise indicated. “we have further strengthened our balance sheet as we execute on our strategy, extending our competitive advantage in antibody discovery and creating value through partnerships,” said carl hansen, ph.d., ceo and president of abcellera. “we continue to invest in technology development, including advancements in our cd3 bispecific platform for creating optimal t-cell-engager therapies for cancer, which we believe will create significant value for patients, our partners, and our shareholders.” q2 2022 business summary earned $46 million in total revenue. incurred net loss of $7 million, compared to a net loss of $2 million in q2 2021. added six programs under contract with two new partners, resulting in a cumulative total of 164 programs under contract with 38 different partners. started discovery on four programs, bringing the cumulative number of program starts to 88. continuing to report six molecules cumulatively advanced to the clinic. key business metrics cumulative metrics june 30, 2021 june 30, 2022 change % number of discovery partners 33 38 15 % programs under contract 138 164 19 % program starts 60 88 47 % molecules in the clinic 4 6 50 % abcellera added six discovery programs in q2 to reach a cumulative total of 164 discovery programs as of june 30, 2022 (up from 138 on june 30, 2021), that are either completed, in progress, or under contract with 38 different partners (up from 33 on june 30, 2021). abcellera started discovery on an additional four programs in q2 to reach a cumulative total of 88 program starts (up from 60 on june 30, 2021). abcellera’s partners have advanced a cumulative total of six molecules into the clinic. discussion of q2 2022 financial results revenue – total revenue was $45.9 million, compared to $27.6 million in q2 2021. royalties associated with bebtelovimab were $33.2 million. the partnership business produced research fees of $12.5 million, compared to $5.2 million in q2 2021. licensing revenue was $0.1 million. research & development (r&d) expenses – r&d expenses were $26.7 million, compared to $15.0 million in q2 2021, reflecting continuing investments in the capacity and capabilities of abcellera’s discovery and development platform. sales & marketing (s&m) expenses – s&m expenses were $3.1 million, compared to $1.3 million in q2 2021. general & administrative (g&a) expenses – g&a expenses were $14.4 million, compared to $11.2 million in q2 2021, with the increase driven by investments to support the growth of the company. net loss – net loss was $6.8 million, or ($0.02) per share on both a basic and diluted basis compared to a net loss of $2.3 million, or ($0.01) per share on a basic and diluted basis in q2 2021. liquidity – $1,022 million of 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. 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 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. 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, 2021 2022 2021 2022 revenue: research fees $ 5,215 $ 12,538 $ 9,201 $ 21,871 licensing revenue 263 147 20,522 377 milestone payments 1,000 - 8,000 - royalty revenue 21,165 33,232 192,661 340,249 total revenue 27,643 45,917 230,384 362,497 operating expenses: royalty fees 3,610 5,210 23,622 49,847 research and development(1) 15,046 26,685 27,403 53,052 sales and marketing(1) 1,295 3,120 3,869 5,490 general and administrative(1) 11,203 14,412 17,688 28,680 depreciation and amortization 3,522 4,886 6,827 8,875 total operating expenses 34,676 54,313 79,409 145,944 income (loss) from operations (7,033 ) (8,396 ) 150,975 216,553 other (income) expense other (income) expense (314 ) 25 (645 ) (641 ) grants and incentives (4,646 ) (1,535 ) (7,794 ) (6,730 ) total other (income) (4,960 ) (1,510 ) (8,439 ) (7,371 ) net earnings (loss) before income tax (2,073 ) (6,886 ) 159,414 223,924 income tax (recovery) expense 250 (101 ) 44,516 62,136 net earnings (loss) $ (2,323 ) $ (6,785 ) $ 114,898 $ 161,788 foreign currency translation adjustment 2,152 (211 ) 2,152 296 comprehensive income (loss) $ (171 ) $ (6,996 ) $ 117,050 $ 162,084 net earnings (loss) per share attributable to common shareholders basic $ (0.01 ) $ (0.02 ) $ 0.42 $ 0.57 diluted $ (0.01 ) $ (0.02 ) $ 0.36 $ 0.52 weighted-average outstanding basic 272,196,107 284,686,542 270,953,541 284,292,312 diluted 272,196,107 284,686,542 321,555,443 313,361,183 (1) exclusive of depreciation and amortization abcellera biologics inc. condensed consolidated balance sheet (all figures in u.s. dollars. amounts are expressed in thousands except share data) (unaudited) december 31, 2021 june 30, 2022 assets current assets: cash and cash equivalents $ 476,142 $ 790,615 marketable securities 246,835 231,652 total cash, cash equivalents, and marketable securities 722,977 1,022,267 accounts and accrued receivable 160,576 52,797 restricted cash 25,000 25,000 other current assets 21,247 43,891 total current assets 929,800 1,143,955 long-term assets: property and equipment, net 111,616 149,178 intangible assets, net 148,392 143,179 goodwill 47,806 47,806 investments in and loans to equity accounted investees 50,313 65,824 other long-term assets 30,642 43,842 total long-term assets 388,769 449,829 total assets $ 1,318,569 $ 1,593,784 liabilities and shareholders' equity current liabilities: accounts payable and other liabilities $ 32,017 $ 24,390 current portion of contingent consideration payable 22,934 34,252 income taxes payable 35,683 107,322 accrued royalties payable 22,506 50,555 deferred revenue 7,536 4,621 total current liabilities 120,676 221,140 long-term liabilities: operating lease liability 36,413 32,759 deferred revenue and grant funding 60,758 64,800 contingent consideration payable 35,886 24,629 deferred tax liability 37,370 34,616 other long-term liabilities 1,733 2,984 total long-term liabilities 172,160 159,788 total liabilities 292,836 380,928 commitments and contingencies shareholders' equity: common shares: no par value, unlimited authorized shares at december 31, 2021 and june 30, 2022: 283,257,104 and 285,052,302 shares issued and outstanding at december 31, 2021 and june 30, 2022, respectively 722,430 726,825 additional paid-in capital 35,357 56,001 accumulated other comprehensive income 280 576 accumulated earnings 267,666 429,454 total shareholders' equity 1,025,733 1,212,856 total liabilities and shareholders' equity $ 1,318,569 $ 1,593,784 abcellera biologics inc. condensed consolidated statement of cash flows (expressed in thousands of u.s. dollars) (unaudited) six months ended june 30, 2021 2022 cash flows from operating activities: net income $ 114,898 $ 161,788 cash flows from operating activities: depreciation of property and equipment 1,897 3,681 amortization of intangible assets 4,930 5,213 amortization of operating lease right-of-use assets 1,354 2,120 stock-based compensation 13,900 24,404 other 337 (298 ) changes in operating assets and liabilities: accounts and accrued research fees receivable (28,339 ) (6,963 ) accrued royalties receivable 172,768 106,583 income taxes payable (30,330 ) 52,251 accounts payable and accrued liabilities (3,640 ) (1,882 ) deferred revenue 4,848 (2,979 ) accrued royalties payable (3,623 ) 28,049 deferred grant revenue 22,349 5,406 other assets (4,121 ) (4,139 ) net cash provided by operating activities 267,228 373,234 cash flows from investing activities: purchases of property and equipment (40,448 ) (45,817 ) purchase of marketable securities - (134,306 ) proceeds from marketable securities - 145,808 receipt of grant funding 4,520 8,098 long-term investments and other assets (5,034 ) (11,657 ) investment in and loans to equity accounted investees (20,510 ) (15,694 ) net cash used in investing activities (61,472 ) (53,568 ) cash flows from financing activities: repayment of long-term debt and contingent consideration (4,373 ) (73 ) proceeds from debt and exercise of stock options 2,755 2,175 payment of liability for in-licensing agreement (5,000 ) (4,060 ) net cash used in financing activities (6,618 ) (1,958 ) effect of exchange rate changes on cash and cash equivalents (683 ) (1,411 ) increase in cash and cash equivalents 198,455 316,297 cash and cash equivalents and restricted cash, beginning of period 594,116 501,142 cash and cash equivalents and restricted cash, end of period $ 792,571 $ 817,439 restricted cash included in other assets - (1,824 ) total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 792,571 $ 815,615 supplemental disclosure of non-cash investing and financing activities property, plant and equipment in accounts payable - 2,146 right-of-use assets obtained in exchange for operating-lease obligation 29,573 (796 )
