AbCellera Biologics Inc. Q3 FY2025 earnings call

• Completed transition from platform company to clinical-stage biotech with initiation of Phase I clinical trials for ABCL635 and ABCL575, both on track for readouts next year.
• Started activities at new clinical manufacturing facility and substantially completed platform investments.
• Ended quarter with approximately $680 million in available liquidity.
• Confident in achieving corporate priorities, including advancing at least one more development candidate into IND-enabling studies.
• Appointed Dr. Sarah Noonberg as Chief Medical Officer, with Dr. Geoff Nichol stepping down as SVP of Development.
• In Q3, started work on one additional partner-initiated program, totaling 103 programs with downstream participation.

In the third quarter, revenue was $9 million, predominantly from research fees related to partnered programs. Research and development expenses were $55 million, approximately $14 million more than the same quarter last year. Sales and marketing expenses were just under $3 million, a small reduction from the same quarter last year. General and administration expenses were approximately $22 million compared to roughly $19 million in Q3 2024. AbCellera ended the quarter with approximately $520 million in cash and cash equivalents and roughly $160 million in available committed government funding, resulting in approximately $680 million in available liquidity.

• Confident in achieving all corporate priorities by year-end, including advancing at least one more development candidate into IND-enabling studies.
• ABCL635 and ABCL575 Phase I trials progressing to plan and on track for readouts next year.
• New clinical manufacturing facility activities started, platform investments substantially complete.

• Actual results could differ materially due to factors outlined in SEC filings.
• Partner-initiated programs may progress slower than anticipated.
• Uncertainty in clinical development outcomes.
• Competition from other biotech companies' products.

Q: How to think about partner-initiated programs in the clinic and why Dr. Noonberg was appointed?

A: Partner-initiated programs may take longer than initially anticipated for clinical development. Dr. Noonberg was appointed as Chief Medical Officer as the company transitioned to clinical-stage biotech and needed a senior executive with clinical drug development experience across modalities and indications.

Q: Data disclosure strategy for ABCL635 Phase I study and what's needed for advancing to Phase II?

A: Expect single disclosure after proof-of-concept part with double-blind, placebo-controlled evaluation. Looking for safety signal and efficacy competitive with existing products.

Q: Enrollment in ABCL575 Phase I trial and progress on fourth AbCellera-led candidate?

A: Enrollment in ABCL575 Phase I trial going as expected. Still on track to bring an additional development candidate forward by end of the year.

Q: Benchmark for testosterone reduction in ABCL635 and risk of CNS target with mAb?

A: Look for engagement at least as good as literature on small molecules like fezolinetant. NK3R pathway is validated, but need proof-of-concept study readout for conviction.

Q: Benefits of ABCL635 vs existing hormonal treatment and competitive molecules?

A: ABCL635 is alternative to menopausal hormone therapy for women with contraindications or adverse events. Competitors include VEOZAH by Astellas and Lynkuet by Bayer.

Q: What's needed from ABCL575 Phase I data to solidify positioning?

A: ABCL575 has potential for less frequent dosing, and data would show safety, PK, and half-life supporting dosing hypothesis, with catalysts from readouts on other OX40/OX40 ligand class molecules