Abcellera reports q1 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 first quarter of 2022. all financial information in this press release is reported in u.s. dollars, unless otherwise indicated. “we entered 2022 with strong momentum that we leveraged to start new drug discovery programs and demonstrate the power of our platform by discovering a panel of cd3 antibodies for use in precision cancer treatments,” said carl hansen, ph.d., ceo and president of abcellera. “with our strong cash position and book of business, we also continued pursuing deal structures that allow us to capture more downstream value and expanded an existing partnership to include the option to co-develop therapeutic programs.” q1 2022 business summary earned $317 million in total revenue. generated net earnings of $169 million, compared to $117 million in q1 2021. added two programs under contract with an existing partner, resulting in a cumulative total of 158 programs under contract with 36 different partners. started discovery on six programs, bringing the cumulative number of program starts to 84. confirmed one new molecule advanced into the clinic, bringing the cumulative total to six. key business metrics cumulative metrics march 31, 2021 march 31, 2022 change % number of discovery partners 29 36 24 % programs under contract 119 158 33 % program starts 54 84 56 % molecules in the clinic 1 6 500 % abcellera added two discovery programs in q1 to reach a cumulative total of 158 discovery programs as of march 31, 2022 (up from 119 on march 31, 2021), that are either completed, in progress, or under contract with 36 different partners (up from 29 on march 31, 2021). abcellera started discovery on an additional six programs in q1 to reach a cumulative total of 84 program starts (up from 54 on march 31, 2021). abcellera’s partners advanced one additional molecule into the clinic in q1 2022, bringing the cumulative total to six. discussion of q1 2022 financial results revenue – total revenue was $316.6 million, compared to $202.7 million in q1 2021. royalties associated with bamlanivimab and bebtelovimab were $307.0 million. the partnership business produced research fees of $9.3 million, compared to $4.0 million in q1 2021. licensing revenue was $0.2 million. research & development (r&d) expenses – r&d expenses were $26.4 million, compared to $12.4 million in q1 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 $2.4 million, compared to $2.6 million in q1 2021. general & administrative (g&a) expenses – g&a expenses were $14.3 million, compared to $6.4 million in q1 2021, with the increase driven by investments to support the growth of the company and non-cash stock-based compensation. net earnings – net earnings were $168.6 million, or $0.59 per share on a basic and $0.54 on a diluted basis compared to $117.2 million, or $0.43 per share on a basic and $0.37 on a diluted basis in q1 2021. liquidity – $786.1 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. abcellera biologics inc. condensed consolidated statements of income and comprehensive income (all figures in u.s. dollars. amounts are expressed in thousands except share and per share data) (unaudited) three months ended march 31, 2021 2022 revenue: research fees $ 3,986 $ 9,333 licensing revenue 20,259 231 milestone payments 7,000 - royalty revenue 171,496 307,017 total revenue 202,741 316,581 operating expenses: royalty fees 20,010 44,637 research and development(1) 12,352 26,366 sales and marketing(1) 2,578 2,370 general and administrative(1) 6,422 14,268 depreciation and amortization 3,305 3,990 total operating expenses 44,667 91,631 income from operations 158,074 224,950 other (income) other income (265 ) (665 ) grants and incentives (3,148 ) (5,194 ) total other (income) (3,413 ) (5,859 ) net earnings before income tax 161,487 230,809 income tax expense 44,266 62,236 net earnings $ 117,221 $ 168,573 foreign currency translation adjustment - 507 comprehensive income $ 117,221 $ 169,080 net earnings per share attributable to common shareholders basic $ 0.43 $ 0.59 diluted $ 0.37 $ 0.54 weighted-average common shares outstanding basic 269,697,212 283,895,020 diluted 320,282,747 311,482,017 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 march 31, 2022 assets current assets: cash and cash equivalents $ 476,142 $ 545,718 marketable securities 246,835 240,335 total cash, cash equivalents, and marketable securities 722,977 786,053 accounts and accrued receivable 160,576 334,403 restricted cash 25,000 25,000 other current assets 21,247 28,922 total current assets 929,800 1,174,378 long-term assets: property and equipment, net 111,616 122,049 intangible assets, net 148,392 145,785 goodwill 47,806 47,806 investments in and loans to equity accounted investees 50,313 58,882 other long-term assets 30,642 43,389 total long-term assets 388,769 417,911 total assets $ 1,318,569 $ 1,592,289 liabilities and shareholders' equity current liabilities: accounts payable and other liabilities $ 32,017 $ 25,717 current portion of contingent consideration payable 22,934 27,499 income taxes payable 35,683 105,648 accrued royalties payable 22,506 45,364 deferred revenue 7,536 9,190 total current liabilities 120,676 213,418 long-term liabilities: operating lease liability 36,413 36,356 deferred revenue and grant funding 60,758 64,151 contingent consideration payable 35,886 30,623 deferred tax liability 37,370 36,804 other long-term liabilities 1,733 3,430 total long-term liabilities 172,160 171,364 total liabilities 292,836 384,782 commitments and contingencies shareholders' equity: common shares: no par value, unlimited authorized shares at december 31, 2021 and march 31, 2022: 283,257,104 and 284,521,181 shares issued and outstanding at december 31, 2021 and march 31, 2022, respectively 722,430 725,755 additional paid-in capital 35,357 44,726 accumulated other comprehensive income 280 787 accumulated earnings 267,666 436,239 total shareholders' equity 1,025,733 1,207,507 total liabilities and shareholders' equity $ 1,318,569 $ 1,592,289 abcellera biologics inc. condensed consolidated statement of cash flows (expressed in thousands of u.s. dollars) (unaudited) three months ended march 31, 2021 2022 cash flows from operating activities: net income $ 117,221 $ 168,573 cash flows from operating activities: depreciation of property and equipment 840 1,391 amortization of intangible assets 2,465 2,606 amortization of operating lease right-of-use assets 661 976 stock-based compensation 5,427 12,291 other 432 (592 ) changes in operating assets and liabilities: accounts and accrued research fees receivable (30,073 ) (8,751 ) accrued royalties receivable 26,861 (167,914 ) income taxes payable (6,123 ) 69,965 accounts payable and accrued liabilities (5,194 ) 751 deferred revenue 6,086 941 accrued royalties payable (7,134 ) 22,857 deferred grant revenue 2,468 4,682 other assets (4,392 ) (7,557 ) net cash provided by operating activities 109,545 100,219 cash flows from investing activities: purchases of property and equipment (3,644 ) (14,495 ) purchase of marketable securities - (51,774 ) proceeds from marketable securities - 57,294 receipt of grant funding - 2,596 long-term investments and other assets - (11,657 ) investment in and loans to equity accounted investees (12,195 ) (8,335 ) net cash used in investing activities (15,839 ) (26,371 ) cash flows from financing activities: repayment of long-term debt and contingent consideration (1,716 ) (72 ) proceeds from long-term debt and issuance of common shares pursuant to exercise of stock options 173 1,941 payment of liability for in-licensing agreement - (5,000 ) net cash provided by (used in) financing activities (1,543 ) (3,131 ) effect of exchange rate changes on cash and cash equivalents (484 ) (204 ) increase in cash and cash equivalents 91,679 70,513 cash and cash equivalents and restricted cash, beginning of period 594,116 501,142 cash and cash equivalents and restricted cash, end of period $ 685,795 $ 571,655 restricted cash included in other long-term assets - (937 ) total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 685,795 $ 570,718 supplemental disclosure of non-cash investing and financing activities property plant and equipment in accounts payable 423 2,353 right-of-use assets obtained in exchange for operating lease obligation 14,188 658 source: abcellera biologics inc.
