AbCellera Biologics, Inc. Q3 FY2024 earnings call

• Committed to building an internal pipeline and transitioning from a platform company to a clinical stage biotech over the past year, reallocating investments and reorganizing teams.
• First two pipeline programs, ABCL635 and ABCL575, on track for CTA filings in Q2 2025; broad portfolio of discovery stage programs including wholly-owned and co-development programs.
• Completed move-in to new Vancouver headquarters; GMP manufacturing facility on track for 2025 completion; built translational and development teams for upcoming clinical trials.
• Expanded partnership with Eli Lilly; partnering priority is co-development collaborations with co-ownership of assets; will present TCE platform data at CITSE.

In Q3 2024, revenue was almost $7 million, mostly from research fees related to partnered programs. Research and development expenses were approximately $41 million, $3 million more than the previous year. Sales and marketing expenses were about $3 million, and general and administration expenses were approximately $19 million. The net loss for the quarter was roughly $51 million, including a non-cash impairment charge for in-process R&D of approximately $32 million. Revenue in Q3 2023 was also approximately $7 million. Cash and equivalents were $670 million, with ~$210 million in available government funding.

• First two pipeline programs (ABCL635, ABCL575) expected to file CTAs in Q2 2025.
• R&D expenses expected to be manageable, with run rate into 2025 similar to current quarter.
• PP&E investments expected to drop off significantly in 2025 after substantial spending in 2024.
• Sufficient liquidity (~$880 million total available) to fund pipeline and platform investments well beyond the next three years.

• Geopolitical headwinds related to the US Biosecure Act could impact manufacturing and operations.
• Actual results could differ materially from forward-looking statements due to various factors outlined in SEC filings.

Q: Allison Bratzel asked about OX40 and the competitive landscape, specifically advantages of 575 and the space in atopic vs. other indications.

A: Carl Hansen stated that 575 is a non-depleting effector null antibody vs. depleting antibodies like [indiscernible], emphasized non-depleting OX40 ligand antibodies are lead in the race, bullish on 575's potential in atopic dermatitis and other indications, plans to present preclinical data next year.

Q: Andrea Tan asked about data on T-cell engagers at CITSE.

A: Carl Hansen said CITSE presentation will include updated TCE platform data, highlighting programs using TAA antibodies and CD3 panel for desired killing and cytokine response, and work on trispecific TCEs for sustained T-cell killing.

Q: Stephen Willey asked about number of wholly-owned programs that could be pushed forward independently.

A: Carl Hansen said AbCellera has a built platform and ~$900 million in available liquidity, has a broad preclinical portfolio, prioritizing programs for clinical pipeline, anticipating 2-3 new development candidates per year starting next year.

Q: Srikripa Devarakonda asked about ABCL635 target, market, and competition.

A: Carl Hansen said ABCL635 is first-in-class against a multi-pass transmembrane protein target for endocrine/metabolic disorders, addressable market over $2 billion, keeping details strategic until CTA approval.

Q: Connor (on for Evan) asked about ramping spend and resource allocation for internal vs. partner programs.

A: Andrew Booth said R&D spend into 2025 expected to be similar to current quarter, PP&E CapEx expenses to drop off significantly in 2025, operating expenses in 2025 expected to be similar to 2024.

Q: David Martin asked about 575 vs. IL receptor antibodies and patient response.

A: Carl Hansen said DUPIXENT is a good drug but not for all, OX40 ligand mechanism could be second line behind DUPIXENT initially, potential for first line over time, and biology suggests orthogonal response to IL-13 antibodies but clinical testing needed.

Q: Brendan Smith asked about ideal TCE partnership.

A: Carl Hansen said ideal partnership brings cash upfront and works with teams deep in science to develop effective cancer drugs, important to work with committed teams for long-term clinical testing.

Q: Puneet Souda asked about GMP facility update and Biosecure inbound.

A: Andrew Booth said GMP facility now expected to be in late 2025, project well进展; Carl Hansen said broad preclinical pipeline with molecules close to development candidate, first year of facility for demonstrating capabilities, and Biosecure Act could be a headwind but controlling own manufacturing is an advantage.

Q: Puneet Souda asked about near-term and medium-term priorities.

A: Carl Hansen said priorities are making good capital allocation decisions to find first big winner, backing it with a differentiated portfolio, and maintaining operational efficiency with sufficient liquidity to fund future investments.