AbCellera Reports Full Year 2022 Business Results

 

 

  • Total revenue of $485 million, compared to $375 million in FY 2021
  • Total cumulative partnered program starts of 101, with 23 new starts in the year
  • Net earnings of $0.56 per share on a basic and $0.50 on a diluted basis, compared to earnings of $0.56 (basic) and $0.48 (diluted) per share in 2021
 

VANCOUVER, British Columbia--(BUSINESS WIRE)-- AbCellera (Nasdaq: ABCL) today announced financial results for the full year 2022. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“In 2022 we demonstrated strong topline results and ongoing success in our partnering business. Even more significant is the progress we made in scaling and expanding the capabilities of our engine during the year,” said Carl Hansen, Ph.D., founder and CEO of AbCellera. “We believe we are at an inflection point and expect to drive deeper value with partners and to prove our ability to consistently deliver clinical candidates for patients in need.”

FY 2022 Business Summary

  • Earned $485.4 million in total revenue.
  • Generated net income of $158.5 million, compared to net income of $153.5 million in 2021.
  • Reached a cumulative total of 174 programs under contract with 40 different partners.
  • Started discovery on 23 partnered programs, bringing the cumulative number of partnered program starts to 101.
  • Reporting the advancement of three additional molecules, taking the cumulative total to eight molecules in the clinic.

Key Business Metrics

         

 

 

Year Ended December 31,

 

 

Change

Cumulative Metrics

 

2021

 

2022

 

%

Number of discovery partners

 

 

36

 

 

 

40

 

 

 

11%

Programs under contract

 

 

156

 

 

 

174

 

 

 

12%

Partnered program starts

 

 

78

 

 

 

101

 

 

 

29%

Molecules in the clinic

 

 

5

 

 

 

8

 

 

 

60%

AbCellera added 18 partnered programs in 2022 to reach a cumulative total of 174 programs under contract that are either completed, in progress, or under contract with 40 different partners as of December 31, 2022 (up 12% from 156 on December 31, 2021). AbCellera started discovery on 23 partnered programs in 2022 to reach a cumulative total of 101 partnered program starts (up 29% from 78 on December 31, 2021). AbCellera’s partners advanced an additional three molecules into the clinic in 2022, bringing the cumulative total to eight molecules in the clinic.

Discussion of FY 2022 Financial Results

  • Revenue – Total revenue was $485.4 million, compared to $375.2 million in 2021. Royalties associated with bamlanivimab and bebtelovimab were $443.0 million. The partnership business generated research fees of $40.8 million, compared to $19.1 million in 2021. Milestone payments were $0.9 million and licensing revenue was $0.7 million.
  • Research & Development (R&D) Expenses – R&D expenses were $107.9 million, compared to $62.1 million in 2021, reflecting continuing investments in the capacity and capabilities of AbCellera’s engine for antibody discovery and development.
  • Sales & Marketing (S&M) Expenses – S&M expenses were $11.3 million, compared to $6.9 million in 2021. The increase reflects continued investments in business development.
  • General & Administrative (G&A) Expenses – G&A expenses were $55.5 million, compared to $41.8 million in 2021, with the increase driven by investments to support the growth of the company.
  • Net Earnings – Net earnings were $158.5 million, or $0.56 per share on a basic and $0.50 on a diluted basis, compared to $153.5 million, or $0.56 per share on a basic and $0.48 diluted basis in 2021.
  • Liquidity – $886.5 million of cash, cash equivalents, and marketable securities.

Q4 Highlights and Financial Results

  • Started nine partner-initiated programs.
  • U.S. emergency use authorization (EUA) for bebtelovimab was suspended due to emergence of COVID-19 variants resistant to the treatment.
  • Added ten programs under contract with two new partners.

Revenue for the fourth quarter of 2022 was $21.5 million, representing 4% of the total for 2022. $9.5 million was generated in the quarter from royalties on net sales of bebtelovimab prior to the EUA suspension, and $11.4 million was generated from research fees, representing 2% and 28% of the respective totals for 2022.

Operating expenses totaled $59.3 million in the fourth quarter or 22% of the total for 2022 and include $1.6 million in royalty fees, 2% of the total for the year.

The net loss for the fourth quarter was $29.9 million, or ($0.10) per share on a basic and diluted basis.

Conference Call and Webcast

AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern 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 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 antibody drug development. For more information, please visit 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.

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 engine and our 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 or deliver 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 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.

Partnered 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 potential for near-term payments. Cumulatively, partnered program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties in the mid- to long-term.

Molecules in the clinic represent the count of unique molecules for which an Investigational New Drug, or IND, New Animal Drug, or equivalent under other regulatory regimes, application has been approved based on an antibody that was discovered either by us or by a partner using licensed AbCellera technology. Where the date of such application approval is not known to us, the date of the first public announcement of a clinical trial will be used 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 current 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.

Source: AbCellera Biologics Inc.

AbCellera Biologics Inc.

Consolidated Statements of Income and Comprehensive Income

(All figures in U.S. dollars. Amounts are expressed in thousands except share and per share data)

       

 

 

Year Ended December 31,

 

 

 

2020

 

2021

 

2022

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Research fees

 

$

19,848

 

 

$

19,076

 

 

$

40,802

 

Licensing revenue

 

 

-

 

 

 

20,778

 

 

 

696

 

Milestone payments

 

 

15,000

 

 

 

8,000

 

 

 

900

 

Royalty revenue

 

 

198,307

 

 

 

327,349

 

 

 

443,026

 

Total revenue

 

 

233,155

 

 

 

375,203

 

 

 

485,424

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Royalty fees

 

 

27,143

 

 

 

45,516

 

 

 

66,436

 

Research and development(1)

 

 

29,393

 

 

 

62,062

 

 

 

107,879

 

Sales and marketing(1)

 

 

3,842

 

 

 

6,913

 

 

 

11,270

 

General and administrative(1)

 

 

11,910

 

 

 

41,848

 

 

 

55,485

 

Depreciation, amortization, and impairment

 

 

4,836

 

 

 

14,451

 

 

 

27,843

 

Total operating expenses

 

 

77,124

 

 

 

170,790

 

 

 

268,913

 

Income from operations

 

 

156,031

 

 

 

204,413

 

 

 

216,511

 

Other (income) expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income)

 

 

(293

)

 

 

(3,330

)

 

 

(16,079

)

Interest and other

 

 

6,811

 

 

 

6,080

 

 

 

4,045

 

Grants and incentives

 

 

(8,320

)

 

 

(17,486

)

 

 

(10,554

)

Total other income

 

 

(1,802

)

 

 

(14,736

)

 

 

(22,588

)

Net earnings before income tax

 

 

157,833

 

 

 

219,149

 

 

 

239,099

 

Income tax expense

 

 

38,915

 

 

 

65,685

 

 

 

80,580

 

Net earnings

 

$

118,918

 

 

$

153,464

 

 

$

158,519

 

Foreign currency translation adjustment

 

 

-

 

 

 

280

 

 

 

(1,671

)

Comprehensive income

 

$

118,918

 

 

$

153,744

 

 

$

156,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.53

 

 

$

0.56

 

 

$

0.56

 

Diluted

 

$

0.45

 

 

$

0.48

 

 

$

0.50

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

159,195,023

 

 

 

275,763,745

 

 

 

285,056,606

 

Diluted

 

 

263,129,765

 

 

 

318,294,236

 

 

 

314,827,255

 

                         

(1) Exclusive of depreciation, amortization, and impairment

AbCellera Biologics Inc.

Consolidated Balance Sheet

(All figures in U.S. dollars. Amounts are expressed in thousands except share data)

           

 

 

December 31,

2021

 

 

December 31,

2022

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

476,142

 

 

$

386,535

 

Marketable securities

 

 

246,835

 

 

 

499,950

 

Total cash, cash equivalents, and marketable securities

 

 

722,977

 

 

 

886,485

 

Accounts and accrued receivable

 

 

160,576

 

 

 

38,593

 

Restricted cash

 

 

25,000

 

 

 

25,000

 

Other current assets

 

 

21,247

 

 

 

75,413

 

Total current assets

 

 

929,800

 

 

 

1,025,491

 

Long-term assets:

 

 

 

 

 

 

 

Property and equipment, net

 

 

111,616

 

 

 

217,255

 

Intangible assets, net

 

 

148,392

 

 

 

131,502

 

Goodwill

 

 

47,806

 

 

 

47,806

 

Investments in and loans to equity accounted investees

 

 

50,313

 

 

 

72,522

 

Other long-term assets

 

 

30,642

 

 

 

46,331

 

Total long-term assets

 

 

388,769

 

 

 

515,416

 

Total assets

 

$

1,318,569

 

 

$

1,540,907

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable and other liabilities

 

$

32,017

 

 

$

33,150

 

Current portion of contingent consideration payable

 

 

22,934

 

 

 

44,211

 

Income taxes payable

 

 

35,683

 

 

 

-

 

Accrued royalties payable

 

 

22,506

 

 

 

19,347

 

Deferred revenue

 

 

7,536

 

 

 

21,612

 

Total current liabilities

 

 

120,676

 

 

 

118,320

 

Long-term liabilities:

 

 

 

 

 

 

 

Operating lease liability

 

 

36,413

 

 

 

76,675

 

Deferred revenue

 

 

27,409

 

 

 

19,516

 

Deferred grant funding

 

 

33,349

 

 

 

40,801

 

Contingent consideration payable

 

 

35,886

 

 

 

16,054

 

Deferred tax liability

 

 

37,370

 

 

 

33,178

 

Other long-term liabilities

 

 

1,733

 

 

 

3,086

 

Total long-term liabilities

 

 

172,160

 

 

 

189,310

 

Total liabilities

 

 

292,836

 

 

 

307,630

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Common shares: no par value, unlimited authorized shares at December 31, 2021 and 2022: 283,257,104 and 286,851,595 shares issued and outstanding at December 31, 2021 and 2022 respectively

 

 

722,430

 

 

 

734,365

 

Additional paid-in capital

 

 

35,357

 

 

 

74,118

 

Accumulated other comprehensive income (loss)

 

 

280

 

 

 

(1,391

)

Accumulated earnings

 

 

267,666

 

 

 

426,185

 

Total shareholders' equity

 

 

1,025,733

 

 

 

1,233,277

 

Total liabilities and shareholders' equity

 

$

1,318,569

 

 

$

1,540,907

 

Subsequent event

 

 

 

 

 

 

 

AbCellera Biologics Inc.

Consolidated Statement of Cash Flows

(Expressed in thousands of U.S. dollars)

                   

 

 

December 31,

2020

 

 

December 31,

2021

 

 

December 31,

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

118,918

 

 

$

153,464

 

 

$

158,519

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

2,317

 

 

 

4,403

 

 

 

8,953

 

Amortization and impairment of intangible assets

 

 

2,519

 

 

 

10,062

 

 

 

18,890

 

Amortization of operating lease right-of-use assets

 

 

435

 

 

 

2,785

 

 

 

5,259

 

Stock-based compensation

 

 

8,397

 

 

 

30,646

 

 

 

49,481

 

Deferred tax expense

 

 

2,098

 

 

 

(2,018

)

 

 

(2,114

)

Other

 

 

4,707

 

 

 

3,570

 

 

 

8,547

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts and accrued research fees receivable

 

 

(5,467

)

 

 

(37,386

)

 

 

(22,715

)

Accrued royalties receivable

 

 

(197,553

)

 

 

59,864

 

 

 

129,171

 

Income taxes payable

 

 

36,412

 

 

 

(13,530

)

 

 

(88,609

)

Accounts payable and accrued liabilities

 

 

6,601

 

 

 

1,400

 

 

 

1,066

 

Operating lease liabilities

 

 

(350

)

 

 

(778

)

 

 

(3,064

)

Deferred revenue

 

 

21,810

 

 

 

8,624

 

 

 

6,183

 

Accrued royalties payable

 

 

27,143

 

 

 

(4,637

)

 

 

(3,160

)

Deferred grant revenue

 

 

(6,763

)

 

 

30,718

 

 

 

9,264

 

Other operating assets and liabilities

 

 

1,466

 

 

 

(2,603

)

 

 

1,689

 

Net cash provided by operating activities

 

 

22,690

 

 

 

244,584

 

 

 

277,360

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(9,673

)

 

 

(58,452

)

 

 

(70,660

)

Purchase of intangible assets

 

 

(5,000

)

 

 

-

 

 

 

(2,000

)

Purchases of marketable securities

 

 

-

 

 

 

(274,710

)

 

 

(763,982

)

Proceeds from marketable securities

 

 

-

 

 

 

27,608

 

 

 

510,631

 

Receipt of grant funding

 

 

-

 

 

 

32,621

 

 

 

16,434

 

Acquisitions, net of cash acquired

 

 

(87,643

)

 

 

(11,457

)

 

 

-

 

Long-term investments and other

 

 

1,783

 

 

 

(17,534

)

 

 

(17,369

)

Investment in and loans to equity accounted investees

 

 

(19,247

)

 

 

(30,323

)

 

 

(25,679

)

Net cash used in investing activities

 

 

(119,780

)

 

 

(332,247

)

 

 

(352,625

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of long-term debt and contingent consideration

 

 

(19,942

)

 

 

(4,373

)

 

 

(323

)

Proceeds from long-term debt and exercise of stock options

 

 

16,490

 

 

 

5,487

 

 

 

2,755

 

Proceeds from convertible debentures

 

 

89,990

 

 

 

-

 

 

 

-

 

Payment of liability for in-licensing agreement and other

 

 

(387

)

 

 

(5,000

)

 

 

(4,060

)

Net proceeds from issuance of common shares

 

 

522,840

 

 

 

-

 

 

 

-

 

Proceeds from issuance of preferred shares - series A1 and A2 financing

 

 

74,662

 

 

 

-

 

 

 

-

 

Net cash provided by (used in) financing activities

 

 

683,653

 

 

 

(3,886

)

 

 

(1,628

)

Effect of exchange rate changes on cash and cash equivalents

 

 

-

 

 

 

(1,425

)

 

 

(9,599

)

Increase (decrease) in cash and cash equivalents

 

 

586,563

 

 

 

(92,974

)

 

 

(86,492

)

Cash and cash equivalents and restricted cash, beginning of year

 

 

7,553

 

 

 

594,116

 

 

 

501,142

 

Cash and cash equivalents and restricted cash, end of year

 

$

594,116

 

 

$

501,142

 

 

$

414,650

 

Restricted cash included within other current and other long-term assets

 

 

-

 

 

 

-

 

 

 

3,115

 

Total cash, cash equivalents, and restricted cash shown on the balance sheets

 

$

594,116

 

 

$

501,142

 

 

$

411,535

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable

 

 

656

 

 

 

5,397

 

 

 

5,868

 

Right-of-use assets obtained in exchange for operating lease obligation

 

 

1,679

 

 

 

36,638

 

 

 

50,694

 

Purchase of intangible assets in exchange for in-licensing agreement payable

 

 

9,060

 

 

 

-

 

 

 

-

 

 

Contacts

Inquiries
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1(236) 521-6774
Business Development: Murray McCutcheon, Ph.D.; bd@abcellera.com, +1(604) 559-9005
Investor Relations: Josephine Hellschlienger, Ph.D.; ir@abcellera.com, +1(778) 729-9116

 
 

Source: AbCellera Biologics Inc.

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