AbCellera (Nasdaq: ABCL), a technology company with a centralized operating system for next-generation antibody discovery, today announced financial results for the first quarter of 2021.
“Our partnership business continued to thrive in the first quarter of 2021, expanding our diversified program portfolio through collaborations with both new and existing partners,” said Carl Hansen, Ph.D., President and CEO of AbCellera. “Royalty revenue from our COVID-19 program continues to provide us with non-dilutive funding, bolstering our strong cash position as we execute on our long-term growth strategies.”
Q1 2021 Business Highlights
- Earned $203 million in total revenue, including $178 million in milestones and royalties.
- Generated $117 million in net earnings, up from a $2 million loss in Q1 2020.
- Expanded partnership business by 16 programs within the quarter, a 23% increase in the rate of growth from 13 new programs added in the same period in 2020.
- Achieved cumulative total of 119 programs under contract with 29 partners.
- Bamlanivimab alone and bamlanivimab together with etesevimab have been authorized under emergency/special use pathways by more than 15 countries worldwide. In the US, bamlanivimab alone is no longer authorized for emergency use, and Lilly has transitioned to exclusively supplying bamlanivimab together with etesevimab to treat COVID-19 in high-risk patients.
- Identified a second therapeutic antibody for COVID-19, LY-CoV1404, which advanced into clinical trials in April 2021.
- Appointed Ester Falconer, Ph.D., to Chief Technology Officer.
Key Business Metrics
| Metric | March 31, 2020 | March 31, 2021 | Change % |
| Number of discovery partners | 24 | 29 | 21% |
| Programs under contract, cumulative | 73 | 119 | 63% |
| Program starts, cumulative | 47 | 52 | 11% |
| Programs in the clinic | - | 1 | N/M |
As of March 31, 2021, the Company had 119 discovery programs (up 63% from 73 on March 31, 2020) that are either completed, in progress, or under contract with 29 partners (up from 24 on March 31, 2020). The Company has started discovery on a cumulative total of 52 of these programs (up from 47 on March 31, 2020).
Discussion of Q1 2021 Financial Results
|
| Three months ended March 31, | Change | ||||||||||
|
| 2020 | 2021 | Amount | % | ||||||||
|
| (in thousands, except percentages) |
| ||||||||||
| Revenue |
|
|
|
|
|
|
|
|
| |||
| Research fees | $ | 4,657 | $ | 3,986 | $ | (671 | ) | -14 | % | |||
| Licensing revenue |
| - |
| 20,259 |
| 20,259 |
| N/A |
| |||
| Milestone payments |
| - |
| 7,000 |
| 7,000 |
| N/A |
| |||
| Royalty revenue |
| - |
| 171,496 |
| 171,496 |
| N/A |
| |||
| Total revenue | $ | 4,657 | $ | 202,741 | $ | 198,084 |
| 4253 | % | |||
- Revenue – Total revenue was $202.7 million, up from $4.7 million in Q1 2020. Sales of bamlanivimab generated earned royalties of $171.5 million and $7.0 million for first sales in Europe. Licensing revenue of $20.3 million is a new line on the income statement and originated from the recently acquired Trianni humanized rodent platform. The partnership business produced research fees of $4.0 million, $0.7 million less than in Q1 2020.
- Royalty Fees – Royalty fees to the National Institutes of Health on bamlanivimab were $20.0 million.
- Research & Development (R&D) Expenses – R&D expenses were $12.4 million, compared to $4.1 million in Q1 2020, reflecting continuing strong investments in the capacity and capabilities of AbCellera’s discovery and development platform.
- Sales & Marketing (S&M) Expenses – S&M expenses were $2.6 million, compared to $0.4 million in Q1 2020.
- General & Administrative (G&A) Expenses – G&A expenses were $6.4 million, compared to $1.7 million in 2020, with the increase driven by investments to support the growth of the company and operations as a listed company.
- Net Earnings – Net earnings were $117.2 million, or $0.43 per share and $0.37 per share on a basic and diluted basis, respectively, compared to a net loss of $2.1 million, or $0.01 per share on both a basic and diluted basis in Q1 2020.
- Liquidity – $686 million of cash and cash equivalents and $193 million in accrued accounts receivable.
Conference Call and Webcast
AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Daylight Time (5:00 p.m. Eastern Daylight Time).
The live webcast of the earnings conference call can be accessed on the Events and Presentations section of AbCellera’s Investor Relations website. A replay of the webcast will be available through the same link following the conference call.
About AbCellera Biologics Inc.
AbCellera is a technology company that searches, decodes, and analyzes natural immune systems to find antibodies that its partners can develop into drugs to prevent and treat disease. AbCellera partners with drug developers of all sizes, from large pharmaceutical to small biotechnology companies, empowering them to move quickly, reduce costs, and tackle the toughest problems in drug development. To learn more, please visit us at www.abcellera.com.
Definition of Key Business Metrics
We regularly review the following key business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. We believe that the following metrics are important to understand our current business. These metrics may change or may be substituted for additional or different metrics as our business develops. For example, as our business matures and to the extent programs are discontinued, we anticipate updating these metrics to reflect such changes.
Number of discovery partners represents the unique number of partners with whom we have executed partnership contracts. We view this metric as an indication of the competitiveness of our technology stack and our current level of market penetration. The metric also relates to our opportunities to secure programs under contract.
Programs under contract represent the number of antibody development programs that are under contract for delivery of discovery research activities. A program under contract is counted when a contract is executed with a partner under which we commit to discover antibodies against one selected target. A target is any relevant antigen for which a partner seeks our support in developing binding antibodies. We view this metric as an indication of commercial success and technological competitiveness. It further relates to revenue from technology access fees. The cumulative number of programs under contract with downstream participation is related to our ability to generate future revenue from milestone payments and royalties.
Program starts represent the number of unique programs under contract for which we have commenced the discovery effort. The discovery effort commences on the later of (i) the day on which we receive sufficient reagents to start discovery of antibodies against a target and (ii) the day on which the kick-off meeting for the program is held. We view this metric as an indication of our operational capacity to execute on programs under contract. It is also an indication of the selection and initiation of discovery projects by our partners and the resulting near-term potential to earn research fees. Cumulatively, program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties in the mid- to long-term.
Programs in the clinic represent the count of unique programs for which an Investigational New Drug, or IND, New Animal Drug or Pre-Market Approval, or PMA, application, or equivalents under other regulatory regimes, has been filed based on an antibody that was discovered by us. Where the date of such application is not known to us, the date of the first public announcement of clinical trials will be used instead for the purpose of this metric. We view this metric as an indication of our near- and mid-term potential revenue from milestone fees and potential royalty payments in the long term.
AbCellera Forward-looking Statements
This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts, and other matters regarding our business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
| AbCellera Biologics Inc. Condensed Consolidated Statement of Operations (Unaudited) (Expressed in thousands of U.S. dollars except share and per share data) | ||||||||
|
|
| Three months ended March 31, | ||||||
|
|
| 2020 |
| 2021 | ||||
| Revenue: |
|
|
|
|
|
|
| |
| Research fees |
| $ | 4,657 |
|
| $ | 3,986 | |
| Licensing revenue |
|
| - |
|
|
| 20,259 | |
| Milestone payments |
|
| - |
|
|
| 7,000 | |
| Royalty revenue |
|
| - |
|
|
| 171,496 | |
| Total revenue |
|
| 4,657 |
|
|
| 202,741 | |
| Operating expenses: |
|
|
|
|
|
|
| |
| Royalty fees |
|
| - |
|
|
| 20,010 | |
| Research and development(1) |
|
| 4,118 |
|
|
| 12,352 | |
| Sales and marketing(1) |
|
| 437 |
|
|
| 2,578 | |
| General and administrative(1) |
|
| 1,650 |
|
|
| 6,422 | |
| Depreciation and amortization |
|
| 574 |
|
|
| 3,305 | |
| Total operating expenses |
|
| 6,779 |
|
|
| 44,667 | |
| Income (loss) from operations |
|
| (2,122 | ) |
|
| 158,074 | |
| Other (income) expense |
|
|
|
|
|
|
| |
| Other (income) expense |
|
| 1,001 |
|
|
| (265 | ) |
| Grants and incentives |
|
| (1,030 | ) |
|
| (3,148 | ) |
| Total other income |
|
| (29 | ) |
|
| (3,413 | ) |
| Net earnings (loss) before income tax |
|
| (2,093 | ) |
|
| 161,487 | |
| Provision for income tax |
|
| - |
|
|
| 44,266 | |
| Net earnings (loss) and comprehensive income (loss) for the period |
| $ | (2,093 | ) |
| $ | 117,221 | |
| Net earnings (loss) per share attributable to common shareholders |
|
|
|
|
|
|
| |
| Basic |
| $ | (0.01 | ) |
| $ | 0.43 | |
| Diluted |
| $ | (0.01 | ) |
| $ | 0.37 | |
| Weighted-average common shares outstanding |
|
|
|
|
|
|
| |
| Basic |
|
| 151,859,924 |
|
|
| 269,697,212 | |
| Diluted |
|
| 151,859,924 |
|
|
| 320,282,747 | |
| (1) Exclusive of depreciation and amortization |
| |||||||
| AbCellera Biologics Inc. Condensed Consolidated Balance Sheet (Unaudited) (Expressed in thousands of U.S. dollars except share data) | ||||||||
|
|
| December 31, 2020 |
|
| March 31, 2021 | |||
| Assets |
|
|
|
|
|
|
| |
| Current assets: |
|
|
|
|
|
|
| |
| Cash and cash equivalents |
| $ | 594,116 |
|
| $ | 685,795 | |
| Accounts receivable |
|
| 903 |
|
|
| 23,371 | |
| Accrued accounts receivable |
|
| 212,336 |
|
|
| 193,071 | |
| Other current assets |
|
| 5,970 |
|
|
| 5,745 | |
| Total current assets |
|
| 813,325 |
|
|
| 907,982 | |
| Long term assets: |
|
|
|
|
|
|
| |
| Property and equipment, net |
|
| 17,923 |
|
|
| 34,618 | |
| Intangible assets |
|
| 115,153 |
|
|
| 112,688 | |
| Goodwill |
|
| 31,500 |
|
|
| 31,500 | |
| Investments in and loans to equity accounted investees |
|
| 19,247 |
|
|
| 32,187 | |
| Other long-term assets |
|
| 8,388 |
|
|
| 9,548 | |
| Total long-term assets |
|
| 192,211 |
|
|
| 220,541 | |
| Total assets |
| $ | 1,005,536 |
|
| $ | 1,128,523 | |
| Liabilities and shareholders’ equity |
|
|
|
|
|
|
| |
| Current liabilities: |
|
|
|
|
|
|
| |
| Accounts payable and other liabilities |
| $ | 20,195 |
|
| $ | 13,287 | |
| Current portion of contingent consideration payable |
|
| 13,411 |
|
|
| 13,762 | |
| Income taxes payable |
|
| 36,152 |
|
|
| 30,030 | |
| Accrued royalties payable |
|
| 27,143 |
|
|
| 20,010 | |
| Deferred revenue |
|
| 6,589 |
|
|
| 11,306 | |
| Total current liabilities |
|
| 103,490 |
|
|
| 88,395 | |
| Long-term liabilities: |
|
|
|
|
|
|
| |
| Operating lease liability |
|
| 3,715 |
|
|
| 16,973 | |
| Deferred revenue and grant funding |
|
| 25,894 |
|
|
| 28,730 | |
| Contingent consideration payable |
|
| 9,148 |
|
|
| 9,378 | |
| Deferred tax liability |
|
| 26,161 |
|
|
| 26,992 | |
| Other long-term liabilities |
|
| 6,620 |
|
|
| 931 | |
| Total long-term liabilities |
|
| 71,538 |
|
|
| 83,004 | |
| Total liabilities |
|
| 175,028 |
|
|
| 171,399 | |
| Commitments and contingencies |
|
|
|
|
|
|
| |
| Shareholders’ equity: |
|
|
|
|
|
|
| |
| Common shares: no par value, unlimited authorized shares at December 31, 2020 and March 31, 2021: 269,497,768 and 270,925,930 shares issued and outstanding at December 31, 2020 and March 31, 2021 respectively |
|
| 710,387 |
|
|
| 711,139 | |
| Additional paid-in capital |
|
| 5,919 |
|
|
| 14,562 | |
| Accumulated earnings |
|
| 114,202 |
|
|
| 231,423 | |
| Total shareholders’ equity |
|
| 830,508 |
|
|
| 957,124 | |
| Total liabilities and shareholders’ equity |
| $ | 1,005,536 |
|
| $ | 1,128,523 | |
| AbCellera Biologics Inc. Condensed Consolidated Statement of Cash Flows (Unaudited) (Expressed in thousands of U.S. dollars) | ||||||||
|
|
| Three months ended March 31, | ||||||
|
|
| 2020 |
| 2021 | ||||
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
| Net income (loss) |
| $ | (2,093 | ) |
| $ | 117,221 |
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
| Depreciation of property and equipment |
|
| 415 |
|
|
| 840 |
|
| Amortization of intangible assets |
|
| 158 |
|
|
| 2,465 |
|
| Amortization of operating lease right-of-use-assets |
|
| 73 |
|
|
| 661 |
|
| Stock-based compensation |
|
| 1,237 |
|
|
| 5,427 |
|
| Deferred tax expense |
|
| - |
|
|
| 623 |
|
| Other |
|
| (28 | ) |
|
| (191 | ) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts and accrued research fees receivable |
|
| (26,611 | ) |
|
| (30,073 | ) |
| Accrued royalties receivable |
|
| - |
|
|
| 26,861 |
|
| Income taxes payable |
|
| - |
|
|
| (6,123 | ) |
| Accounts payable and accrued liabilities |
|
| (156 | ) |
|
| (5,194 | ) |
| Deferred revenue |
|
| 27,676 |
|
|
| 6,086 |
|
| Accrued royalties payable |
|
| - |
|
|
| (7,134 | ) |
| Other assets and liabilities |
|
| (1,435 | ) |
|
| (1,924 | ) |
| Net cash (used in) provided by operating activities |
|
| (764 | ) |
|
| 109,545 |
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
| (583 | ) |
|
| (3,644 | ) |
| Purchase of intangible assets |
|
| (5,000 | ) |
|
| - |
|
| Investment in equity investees |
|
| - |
|
|
| (12,195 | ) |
| Net cash used in investing activities |
|
| (5,583 | ) |
|
| (15,839 | ) |
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
| Repayment of long-term debt |
|
| (2,033 | ) |
|
| (1,716 | ) |
| Proceeds from long-term debt |
|
| 16,171 |
|
|
| - |
|
| Payment of deferred financing fees |
|
| (799 | ) |
|
| - |
|
| Short-term borrowings |
|
| (387 | ) |
|
| - |
|
| Issuance of common shares pursuant to exercise of stock options |
|
| 124 |
|
|
| 173 |
|
| Proceeds from issuance of preferred shares - series A2 financing |
|
| 74,662 |
|
|
| - |
|
| Net cash provided by (used in) financing activities |
|
| 87,738 |
|
|
| (1,543 | ) |
| Effect of exchange rate changes on cash and cash equivalents |
|
|
|
|
|
| (484 | ) |
| Increase in cash and cash equivalents |
|
| 81,391 |
|
|
| 91,679 |
|
| Cash and cash equivalents, beginning of period |
|
| 7,553 |
|
|
| 594,116 |
|
| Cash and cash equivalents, end of period |
| $ | 88,944 |
|
| $ | 685,795 |
|
| Supplemental disclosure of non-cash investing and financing activities |
|
|
|
|
|
|
|
|
| Property plant and equipment in accounts payable |
|
| 95 |
|
|
| 423 |
|
| Right-of-use assets obtained in exchange for operating lease obligation |
| 741 |
|
|
| 14,188 | ||
| Purchase of intangible assets in exchange for in-licensing agreement payable |
|
| 9,060 |
|
|
| - |
|
Source: AbCellera Biologics Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210513005800/en/
Contacts
Inquiries
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1(236)521-6774
Business Development: Kevin Heyries, Ph.D.; bd@abcellera.com, +1(604)559-9005
Investor Relations: Melanie Solomon; ir@abcellera.com, +1(778)729-9116
Source: AbCellera Biologics Inc.
View this news release online at:
http://www.businesswire.com/news/home/20210513005800/en
