AbCellera Biologics, Inc. Q4 FY2024 earnings call

• Transitioned from a platform and partnership company to a clinical stage biotech in late 2023, focusing on building internal pipeline and platform.
• 2024 milestones: Advanced ABCL635 and ABCL575 for CTA filings in Q2 2025, moved into new HQ, clinical manufacturing facility to be online in 2025, reduced new discovery partnerships, ended 2024 with over $800 million liquidity.
• 2025 priorities: Initiate Phase 1 trials for ABCL635 and ABCL575, nominate additional development candidates, complete platform investments by Q2, start activities in new clinical manufacturing facility.
• ABCL635: Scores well on science, unmet need, differentiation, and development path; target and indication to be disclosed at next earnings call.
• ABCL575: Non-depleting OX40 ligand antagonist, low scientific risk, large market opportunity but competitive space with modest differentiation.
• Financials: Ended 2024 with ~$650 million in cash and equivalents and ~$190 million in available committed government funding.

In 2024, revenue was almost $29 million, down from ~$38 million in 2023. Research and development expenses were approximately $167 million, a decrease of $8 million from the previous year. Sales and marketing expenses were ~$13 million, and general and administration expenses were ~$73 million. Net loss was roughly $163 million. There were 96 partner-initiated programs with downstream participation; 14 were still actively led/co-led, 76 had completed scope of work and transferred data, and 37 of those 76 were actively progressing by partners. AbCellera-initiated internal programs increased to 27 from 19 at the start of the year.

• Prioritize initiating Phase 1 clinical trials for ABCL635 and ABCL575 in 2025.
• Nominate additional development candidates for CT-enabling studies.
• Complete platform investments by the end of Q2 2025.
• Start activities in the new clinical manufacturing facility.
• Expect CPAs and clinical starts in 2025, first clinical readouts in 2026, and electing ~2 additional development candidates per year.

• Uncertainty in clinical trial outcomes for programs.
• Competition in the biotech space, particularly in areas like TCEs where there may be increasing activity from other players.
• Dependence on successful execution of partnerships, especially on the TCE front.

Q: Stephen Willey asked about longer-term competencies needed for clinical trials across disease areas.

A: Carl Hansen stated they are indication agnostic, building translational science and clinical development teams driven by programs, with hiring motivated by program progress.

Q: Stephen Willey asked about AbbVie collaboration and China headwinds.

A: Carl Hansen said AbbVie collaboration is a good first TCE deal, and they are watching China competition but their portfolio emphasizes differentiated assets.

Q: Sonia asked about attrition rate of partner-initiated programs and reducing partnerships.

A: Andrew Booth talked about attrition rates and Carl Hansen explained transitioning to clinical stage biotech means focusing on that, still active in TCE partnerships.

Q: Steve Dechert asked about AbbVie partnership.

A: Carl Hansen said they built TCE platform over 2-3 years, and the collaboration with AbbVie is based on their strong TCE toolkit.

Q: Jacqueline Kisa asked about geopolitical tariffs and internal pipeline commercialization.

A: Andrew Booth said no material impact from tariffs, and Carl Hansen said they evaluate each program for commercialization, may partner early or take to late-stage.

Q: Malcolm Hoffman asked about preparations for CTA filings.

A: Carl Hansen said IND-enabling studies done, teams and plans in place.

Q: Michael asked about internally initiated programs.

A: Carl Hansen said they look for high conviction programs in ion channels, GPCRs, etc., based on science, unmet need, differentiation, and development path.