AbCellera Biologics Inc. Q2 FY2026 earnings call

• New Partnerships • Signed two new T-cell engager (TCE) discovery collaborations, with Vertex focused on TCEs for autoimmune diseases and other conditions, and with Jazz Pharmaceuticals for three confirmed discovery programs (with mutual options for two additional programs) • The deals brought over $110 million in total upfront cash to the balance sheet: $28 million from Vertex, $56 million received from Jazz for the first two programs, and an additional $28 million from Jazz due when the third program initiates within the next 12 months • The Jazz collaboration offers over $2 billion in potential downstream milestone payments plus tiered royalties ranging from mid-single digit to low-double digit on net sales; if all five optional programs are exercised, total potential deal value exceeds $4 billion, which management notes is one of the largest TCE discovery deals reported to date • Both collaborations leverage the company's established TCE platform, with partners focused on high innovation and advancing programs to clinical development

• Pipeline & Clinical Progress • The company’s lead candidate ABCL635 for vasomotor symptoms (VMS, hot flashes) is preparing for Phase II top-line data readout, with all patients having completed the required 4-week efficacy assessment • Added two new independent directors, Dr. Victor Sander and Dr. Lynn Seeley, experienced biopharmaceutical executives with complementary development expertise across oncology, women's health, immunology, and endocrinology to support pipeline and company growth

• Financial & Liquidity Position • Maintains a strong liquidity position: over $565 million in cash and equivalents, plus approximately $110 million in available committed government funding from the Government of Canada Strategic Innovation Fund and the Government of British Columbia, for total available liquidity of over $675 million • Additional liquidity is available via the company’s owned Vancouver lab office building and GMP manufacturing facility, and management confirms sufficient capital to fund at least three years of pipeline investments

The transcript does not break out financial performance for separate product or business segments. Overall company Q2 2026 revenue was $4 million, down from $17 million in the year-ago quarter, with revenue consisting mostly of research fees. Total Q2 2026 net loss was $55 million, or a loss of 18 cents per basic and diluted share, compared to a $35 million net loss in Q2 2025. Research and development (R&D) expenses were $46 million, $7 million higher than the prior year, reflecting increased investment in internal pipeline programs. Selling, general and administrative (SG&A) expenses were $14 million, $8 million lower than the prior year, driven by the conclusion of an intellectual property litigation case and team restructuring aligned to the internal pipeline focus. As of quarter-end, the company held $567 million in total cash and marketable securities, with total available liquidity (cash + unused committed government funding) of over $675 million.

• Liquidity guidance is maintained: management confirms current available capital is sufficient to fund at least the next three years of pipeline development programs • No forward financial revenue or earnings guidance was provided in the transcript • ABCL635 Phase II top-line data readout is expected imminently; initiation of Phase II studies for VMS in cancer patient populations is planned to begin relatively soon, following the completion of the ongoing Phase II in menopausal VMS, with Phase 3 design to be determined after Phase II data is reviewed

• The key remaining scientific risk for the lead ABCL635 VMS program is whether inhibition of NK3R receptors in the median pre-optic nucleus (in addition to proven target engagement in the infundibular/arcuate nucleus kisspeptin neurons) is required to achieve clinically meaningful efficacy; this question will be answered by the upcoming Phase II readout • Placebo response magnitude in the ABCL635 Phase II trial is an unknown; management expects placebo response to fall in the range seen in prior small molecule trials, but the exact level will not be known until data unblinding • Success of the TCE platform collaborations is dependent on meeting undisclosed target-specific therapeutic requirements for autoimmune and other indications, including achieving desired cell depletion depth, safety, tolerability, and repeat dosing profiles that vary by target • There is uncertainty around whether ABCL635 will meet the required efficacy endpoints for VMS, specifically the 20% frequency reduction relative to placebo and at least two hot flashes per day reduction that matches approved small molecule benchmarks

Q: What is the bar for clinically meaningful success for the upcoming ABCL635 VMS Phase II readout, and will threshold efficacy analyses be included with top-line data? / A: Management defines success as a clean safety profile (consistent with what has been observed in Phase 1) and efficacy matching the level of approved small molecule VMS treatments. The key efficacy requirement is at least a 20% reduction in VMS frequency relative to placebo, plus a reduction of at least two hot flashes per day. Management expects severity results to track with frequency, which is their primary current focus.

Q: Why sequence cancer indication VMS studies with Phase 2 first rather than moving directly to label-enabling Phase 3 trials after positive Phase 2 menopausal data? / A: Oncology patients represent a significantly different population than otherwise healthy menopausal women, so initial Phase 2 testing is required to confirm safety and efficacy before advancing to larger later-stage trials. The Phase 2 oncology studies will be initiated relatively soon during preparation for the late-stage menopausal program, with sequencing optimized to move as quickly as possible given the gap between the menopausal Phase II readout and trial setup for subsequent programs.

Q: What is the current resource allocation balance between the TCE platform and the company’s GPCR/ion channel pipeline? / A: The TCE platform is fully established after five years of foundational development work, so resource allocation will not shift substantially away from other programs. Current resource focus is moving from building platform capabilities to executing on existing internal and partner programs, rather than allocating major new resources to TCE. Management notes significantly more overall effort is currently dedicated to the GPCR and ion channel portfolio, with TCE remaining a steady core pipeline pillar.

Q: What differentiation does ABCL635 have over approved small molecule VMS treatments, and how will safety differentiation be confirmed? / A: Approved small molecules require regular liver safety monitoring, which is inconvenient for patients and providers; this is a property of small molecule metabolism that an NK3R-specific antibody should not have, and to date all data has shown no increase in liver enzymes. ABCL635 also avoids the somnolence side effect seen with one approved small molecule, caused by off-target NK1R binding that does not occur with ABCL635’s highly specific antibody design. The company will continue monitoring liver enzyme levels in future trials to confirm this safety profile.

Q: Will the upcoming ABCL635 top-line readout include 12-week data for any patients, and what is the target patient population for planned Phase 3 development? / A: Only 4-week efficacy data from all patients will be released in the upcoming top-line readout, as 4-week data has historically correlated well with 12-week results for VMS treatments. The base case commercial opportunity is focused on women who cannot use or are intolerant to hormone replacement therapy (HRT), which is over 1 million potential patients in the US alone, plus patients with VMS associated with cancer treatment (prostate and breast cancer) for whom hormones are contraindicated. Phase 3 trial design will be finalized after Phase II data is read out.