Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AbCellera Biologics Inc (ABCL, Financial) has a strong liquidity position with approximately $700 million in cash and equivalents and $220 million in available government funding.
- The company is progressing well with its internal pipeline, including ABCL635 and ABCL575, with anticipated Clinical Trial Applications in Q2 of 2025.
- AbCellera Biologics Inc (ABCL) has shown promising preclinical data for its PSMA and B7-H4 TCE programs, indicating potential for better safety and efficacy.
- The company has expanded its partnership with Eli Lilly, building on a successful collaboration that started in March 2020.
- AbCellera Biologics Inc (ABCL) has a growing list of progressing molecules in the clinic, with 14 molecules having reached clinical trials, indicating potential for near and mid-term revenue from milestone fees and royalty payments.
Negative Points
- Revenue for the quarter was $7 million, a decrease from $10 million in Q2 2023, indicating a downward trend in research fee revenue.
- The company reported a net loss of approximately $37 million for the quarter, compared to a loss of nearly $31 million in the same quarter of last year.
- Research and development expenses increased to approximately $41 million, driven by ongoing program execution and platform development.
- General and administrative expenses rose to just over $20 million, compared to roughly $16 million in Q2 2023, primarily due to expenses related to the defense of intellectual property.
- The company is increasingly focusing on internal and co-development programs, which may lead to lower research fee revenue in the future.
Q & A Highlights
Q: Could you help us understand strategic interests and also your own internal interest in advancing the TCE program in oncology indications versus autoimmune indications like with your CD19 program?
A: Carl Hansen, CEO: Our focus is on showing that the data we've had in vitro will translate into in vivo models and ultimately toward the clinic. We are advancing four programs into in vivo studies to confirm tumor regression and evaluate cytokine release. For autoimmune conditions, we aim for strong B-cell depletion with a safe and convenient delivery, potentially superior to CAR T therapies.
Q: How do you think about the lower rate of CRS from a competitive perspective as you move another CD19 TCE into a crowded space?
A: Carl Hansen, CEO: Lower cytokine release in autoimmune conditions is due to lower antigen burden and prior immunosuppression. We believe TCEs will dominate over CAR T therapies due to better convenience and accessibility. Our platform aims to achieve strong B-cell depletion with low cytokine release in a developable package.
Q: Could you discuss the differentiation of your undisclosed oncology TCE target?
A: Carl Hansen, CEO: The undisclosed target is a step behind others and involves biological risk. We will disclose the target and share data as it matures, likely at conferences like CITSE or ASCO.
Q: Could you walk us through the differentiation of ABCL575 in targeting OX40 ligand versus OX40 receptor in atopic dermatitis?
A: Carl Hansen, CEO: ABCL575 aims to be a best-in-class asset with superior half-life, potency, and developability compared to competitors. We are on track for a CTA submission in Q2 2025 and may share preclinical data ahead of that.
Q: What might help reduce CRS and AEs in the clinic for your PSMA by CD3 TCE?
A: Carl Hansen, CEO: Our PSMA TCE shows comparable tumor cell killing with dramatically less cytokine release in vitro compared to Amgen's AMG 160. We are optimistic this profile will translate in vivo, potentially reducing toxicity and improving efficacy.
Q: Could you expand on the lower research fees this quarter and whether this reflects a new run rate?
A: Andrew Booth, CFO: The reduction in research fees is due to our focus on internal programs and co-development, which we had anticipated. This trend is expected to continue as we prioritize internal investments.
Q: How have the economics of large-cap collaborations evolved since their first iteration?
A: Carl Hansen, CEO: While specific financial details are confidential, our collaborations with companies like Lilly, Gilead, and Regeneron have moved in the right direction, reflecting the value of our platform.
Q: What drove the impairment assessed this quarter?
A: Andrew Booth, CFO: The impairment was due to contingent consideration and in-process R&D from a previous acquisition. Some programs are not advancing, leading to a non-cash impairment that was roughly offsetting.
Q: How are new partner engagement levels as you see more funding into biotech companies?
A: Carl Hansen, CEO: We are focusing on building our internal pipeline and select strategic partnerships. While there may be fewer announcements, we are prioritizing high-value collaborations.
Q: How is the Viking ArrowMark collaboration progressing, and when should we expect new companies to launch?
A: Carl Hansen, CEO: The collaboration is off to a great start, but we are in the early stages. We are working on program ideas and will create companies once we have development candidates.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
