Earnings call transcript Q2 2023

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Operator

Good afternoon, and thank you, and welcome to AbCellera's Second Quarter 2023 Business Update Conference Call. My name is Jason, and I will be the facilitator for the audio portion of today's interactive broadcast. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]

At this time, I'd like to turn the call over to Tryn Stimart, AbCellera’s Chief Legal and Compliance Officer.

Tryn Stimart

you. Thank welcome quarter and business AbCellera's to afternoon, XXXX second update. Good

after with pleased in as issued Relations today, website. to our are find us you our market can which have release announced We Investor results you today on closed the we press the discuss

AbCellera's Booth, With Financial AbCellera's the Hansen, Officer. are and Officer Dr. today on Executive President; Chief me Carl call Chief and Andrew

a slide during webcast presentation we The call portion to this will the contains call. of refer that

along following the this you the are If phone access may our the on you wish to of on slide and so section portion presentation, Investor website. of Relations do

that For questions to be you the be those able webcast, via access may please have aware the you of streaming that the portion in be web. will to who not post of there delay a

contain provisions harbor review to of based filings may impact certain are expectations the presentation Reform of for our Any and the forward-looking our on forward-looking could statements factors to Act uncertainties. Securities risk Please statements risks are and performance. Litigation current XXXX. pursuant safe future that SEC This management's certain Private subject

our dollars. that SEC Our Relations today Note on to are all U.S. call during dollars our filings website. are referred Investor available presentation and

I Dr. turn Now am the to to Carl Hansen. pleased call over

Carl Hansen

ability the a over our trust had preparation we're doing past we've few what call, Tryn. well conversations the company to a to I investors of execute. clear today's as as had relationships, for and cases, with the of Thanks that years. In was build as reflecting in we've understanding on best deep In opportunity

company that how often to get related antibody -- our differs or In newer strategy our platform discovery antibody competitors. are from space we from the questions investors and or relationships,

today are some start therapies. markets business different and with sharing on I associated strategies by would that perspectives the I antibody thought, Accordingly,

the of program. It contributing different all First, needs a therapeutic a best-in-class therapy hundreds that of meets thing. collection to steps goal antibody discovery of is each the is a not finding for one

activities molecular The engineering, expression generation, Some list. characterization, screening, to a assessment a It's discovery assessment, cannot long is of affinity antibody reagent more. biophysical sequencing, that these liability immunization, technology. much examples point include and purification, testing, single immunogenicity much, be maturation, functional reduced DNA synthesis,

is It takes years and can't investment the stage assemble facilities testing. hard to integrate the these drugs technologies built be success. of know-how the This the bring to been overnight. building people the And that over relationships past many the it likelihood clinical better The of and needed what capabilities work efficiency the greater from we've to and idea efficiently speed are and decade.

When are it and advance sequences. results development testing. anybody antibody to a discovery studies, a IND-enabling few successful, and ready of a candidate line small development backups Typically, in that then cell into and is number clinical into

difficulty of discovery. the complexity different of there are this endeavor, and many Given antibody with businesses that associated are types

the solutions contract pharma sale example, and selling with success make of of sell no to offer they more to For and is end companies program. as is in many a to money research their Accordingly, and margin as goal the devices in the the point one and on participation Their the of that by sale. their possible biotech instruments emphasis capturing each focus little some instruments on steps organizations on and market process. or instruments consumables

the more other services on process. that are stages one address in discovery research antibody specific focus that businesses There providing or

no -- goal this fee-for-service and maximizing possible programs program. have work participation that as of the done means is the again the many Here, market while on end their that is typically R&D each margins biotech of a basis. have they work and little for outsourced pharmaceutical and on is sale and success in to companies emphasis Again, as on and

By And is success volume. of associated and work need We around to patients work whatever are selective program new maximize value structure discovering not deals every the Ultimately, with of we successful. the the with each about in we program we deal actually world. make business reach program. that to therapeutics on. run in we business who do maximize required is the in contrast, what to the AbCellera We do

market. near-term associated generate with not is revenue end fees, we research Although this our

high reach antibody end to much is generate that estimated of and $XXX a over in is believe work this was partners we sales on success We XXXX. discipline therapeutics. XXXX and strategy. is differentiation, technical Our This to by our that degree $XXX in market billion in our of the execution and larger patient annual well programs sale a projected billion of the market market requires selecting of

of our to and and is our assemble the is developed economic are for ultimately programs towards of is strategy and a This by this Our is the as to all to engine medicines our of discovery antibody and our In build portfolio a large advantage business this strategy, building engine. and directed technological positions commercialized line moat a competitive partners. portion in capital engine that diversified foundation time large initiatives. with it our use and

that of a and square it office feet engine bring of In systems, data team, proprietary workflows and and together. processes construction either includes, or suite knowhow a lab high-performance assets the state-of-the-art our facilities all under are over software and integrated online that tangible XX,XXXX technologies terms,

and science, integration to expect in forward platform of process quarter, building by a development our development focus past recruiting major completed XXXX. This we projects. be the and that infrastructure capabilities Over includes manufacturing remained translational effort

our provide concept program is IND of to solution The to from a filing. engine functional full goal

need provides experimental complex to regulatory durable are our capabilities. the integrated important build advantage most capabilities efforts competitive believe challenging core result, We type and and development is business. clinical our and underway. we of all our is a for effort also data of These establishing to that with As capabilities. and coordination Equally that technologies. includes are workflows well building This software integration processes and systems, this a it fully unique perhaps

development allow to precision antibody do speed, at previously will possible. and discovery and is integration been scale us that than has It greater

this We through improvement that will achieve concept clinic. come from testing can to only the multiple advancing the through and continuous programs

announcement made with governments we to a and quarter objective. This Canada of significant this the British Columbia advance

an of million part we Columbia. and eight-year worth financing $XXX Canada non-dilutive $XXX in As project from governments British million of the secured

pre-partnered the our supports trials. supporting clinic; Phase to build the through main on up and to directly take and axes; and our programs to project XX This X of up fully of integrated the completing validating plan development establishing facilities; clinical from concept strategic three capabilities programs to

wholly-owned impact a that strategy stronger partners the to multiple new that allows of aggressively highly us our portfolio will advancement a liquidity to capabilities The to of allow and business strengthened a on programs our initiation non-dilutive offer of efficiency on capital through clinical this way all stronger to select level differentiated the from high execute with pre-partnered end-to-end funding trials. X engine includes Phase us a position

areas; In development particular channels from us allow GPCRs. our ion this programs those two new government in pre-partnered funding technology more and engagers strategic and T-cell including to efforts will arising advance

drive value We these in multiple the programs in will believe dimensions business. of success

of improvement development function for capabilities. a platform establishment they provide forcing the including and manufacturing integrated First,

share high out allow and Second, cash downstream greater bring value licensing flow us opportunities bringing forward capture that programs value. to will point a a to create of value inflection

And will of widely value and succeed third, intractable demonstration to our partner-initiated higher are targets problems additional viewed on ability that and as attract programs.

recently affairs science said we share build head as regulatory through and clinical BioMarin translational at leading capabilities in our will this Nichol, be programs. As am most pleased this of to Geoff pre-partnered will work earlier development. I I effort that

teams team. brought working him new to Geoff with like approval. warmly I through excited deep AbCellera to would have on medicines brings Geoff board and in am and to expertise building welcome be to to and the and multiple him has leading

And to hand Andrew to our over discuss financials. Andrew? with I'll that

Andrew Booth

Thanks Carl.

me made XXXX. in metrics our let business highlight second First, of progress in quarter the key

total started a discovery XXX on new partnered quarter us program programs, five work to taking This we starts. cumulative of

any will As irregular. quarter given starts number be a the reminder, in of

trailing the contract XXXX with have XX with partners. quarter under on signed partner-initiated Over programs We in under started contract XX XX months, second no new XXX programs unique the of ended and the we work programs. quarter

work quality of the stated we past to have the number. we emphasize value on continue we programs more more add per and that in and do the work As focus their on We absolute than program. rather

from As innovative we the include developers our key differentiation mentioned development it attracts the engine partnerships and on efforts. technology from when creates it in in most of drug the the internal business included our do industry. the numbers our We the value evidence metrics programs see pre-partnered of and best-established last not call

molecules list reach molecules programs revenue XXXX, our And value continue in Additional and the in midterm we evidence clinical report examples to downstream and royalty long-term when near of the we're that from payments. trials specific creating through view we milestone nine potential and this as of growing our QX clinic is fees clinic. in patients

QX response. is the discovery from research on to of decrease revenue upfront revenue, as in partner-initiated work The primarily pandemic to to entirely quarter such approximately $XX approximately DARPA fees away million programs contract higher free XXXX. in our relating was Turning to shift almost on by million, a with $XX due driven compares programs. work on This

approximately XX the On increase year-over-year XX% quarter in portfolio. from worked the programs had of approximately underlying broader the portfolio actively of work and programs, an we this on in revenue

there some licensing This related to the small milestone in and also new were quarter's fees payments revenues amounts quarter. included no

Turning to operating expenses.

roughly increase in This over the second and continued a period development reflects for execution platform quarter and program previous million, $XX research the the million expenses growth the $XX increase development. were Our representing same approximately year. of

approximately expenses and $X our in reflects XXXX. QX continued expenses, approximately million of expense support quarter compared for and general the of $XX continue the modest million in which make And we This to compared This $X increase the sales finally, to overall in investments, our XXXX. QX increase In some had of in to in $XX reflects growing leverage business million operating see development were that activities. we investments to we G&A business. marketing, administration approximately million

$X net of XXXX. Looking are of The loss of present reporting a of roughly our at royalty business QX net compares in absence and reflects $XX were that loss loss the in XXXX. investments in QX increased earnings, million we This continued revenues to approximately the a million.

earnings share, of of a and basic terms on work out the share basis. $X.XX a diluted per per to quarter's to loss results In

absence at irregular continue the and to Looking to royalty flows. often the invest operating quarterly the cash roughly used flow six be revenues, cash our first activities of million. regular in In we expect company. capabilities and of the we as XXXX would $XX Operating for negative months of growth

$XXX over securities. invested have As we in short-term million marketable our a part of treasury strategy,

Our investment strategy. months activities in of part for cash $XXX our the as a include the net of approximately year holdings six million management increase first these overall

approximately property, All million, other million $XX $XX equipment and investment investments. plant and in including invested activities long-term in $XX to million amounted

and and GMP property ongoing over are, large of equipment part marketable by manufacturing in million quarter finished capabilities. course, work CMC equivalents Investments securities. $XXX the driven with our establish and cash, we of to cash in Altogether,

And We capital. Carl over million been governments of of commitment from have historically announced $XXX an we this British successful and funding sources Canada Columbia. mentioned, quarter, non-dilutive the at raising as

for non-dilutive GMP government not taken Strategic overall And This by As co-funded the account position. show Fund. evaluating build-out facility separately up liquidity a our does balance our our also should Innovation continuing this be reminder, when into on funding capital Canada's sheet. government our available reason, of is

reported funding, of With the funding than well sheet government to over This have of in available $X we $XXX in balance the added cash announced recently position equivalents, plus QX over far from when year total XXXX ago we more million million on secured financials. $XXX the liquidity. our is X liquidity previously billion and our

and our With expenditures, position our with are fully strong visibility very manageable, our a execute capital remain operating respect that runway. excellent to strategy and liquidity on in allows we needs to us

years sufficient of well believe We three and to the growth. fund that we investment to beyond have continue liquidity next

happy to questions. be we'll that, take with And your

Operator

Andrea Sachs. Goldman with [Operator first from is Instructions] Tan question Our

Your line is now open.

Andrea Tan

for Thanks you. for everyone. Hi, our questions. Carl taking one maybe

of from to specifically this love disrupt to where leveraged discovery particularly and process. business. perspectives area First for technology antibody it can the to been a the on -- wanted and the discovery lot thoughts here? in how focus platform today here and your drug the thanks you're on here ask Would you has goes development much. how from obviously excitement hear though so in on, you're on how it differentiated if your Thanks stands around, thoughts using be on I where there your it AI, others in

Carl Hansen

we the the out understand investors appreciate question. real there, lot what space Andrea. are buzz and have AI who lot a not. is is of what Thanks, of to and with a there's conversations Certainly, trying I in

perspective one happened AI in is everyone First, breakthroughs big obviously that understand, technologies has is there recently that some GPT. can see that what and associated been have most with Chat

that think racing problem. solve where to biggest any I reached is other AI naive people has it difference the antibody then assumption can discovery. are in is tipping make find AI going to the point And sectors, including where a

I've The had your short means antibody is people answer Chat come ask GPT discovery. me to for business? does and for So what actually it nothing mean

ability if to order that refine is in data have conclusion -- models. and you sets huge quickly the have The you

Chat big space, doing In couple can fold and the that think lot a AI of been more carefully. of surprising there's people some GPT generative dimensions have a and that AI. And about lift power now We about should in in some this of talk think antibody examples there's create alpha prediction. I

very in I'm going a that design structure. is So you algorithm I've is antibody the the use try first a set and the specific got often, set target, part to as to up a machine the problem problem. an of on binds up And how order to learning

And on you're first you that So not an a if to get it you making that set is true. a thing that target good where is way, drug. you're generally, you up want the to that bind know assumption doing

So best biggest need target is drug which is you part one the in of with discovery of things learn antibody. the engage the to to

huge that could start So better of if a eliminated to spot, you by you solutions a therapeutic. picking get number the you've

on have recognize able that an The very is being generate our antibody already But have that. part built right you've second and you've de doing of that from target. novo the development interfaces. have you solved today, far would location properties many, or of an typically, that's many then examples start are already antibody of that some been actually part binds is And case, that actually the before examples the for the begun. we you away view antigen where that if they you've model There to where antibody have a that could problem

real a problem thing So moves forward. it's not that

across machine intelligence powerful two flip and really Now, That extract can side, our discovery. on data In some the there the analyze models to information. drug very are space one machine learning. sets applications and in complex fall of particular applied be and artificial using first actionable artificial learning intelligence they quickly into categories. And is

initial increase this and accelerate use the to to data of to variety scale a of precision in we efficiency acquisition us So allows steps and to in increase experimental steps. that

I've we anything which many we antibody see with and I bigger piece discovery you different next and that and else universe and process you machine to to artificial use can antibody more we that's progress refine accelerate that's discovery. in very learning That's variants quickly generate way work methods intelligence is in exciting believe we fact an The that that and if is antibodies that opportunity is design allow than start space in and solutions better antibodies. seen opportunity can of this think where a in have the the huge improve optimize a exciting to you

is final a long Now is road. I'll the that thing say this

you huge So capabilities to we is order think opportunity. we've data. this got generate in to the win a In need experimental what

and the the software hard to work to relationships different You the organize create data the have systems between done on sets. need

finally you to models and you the can quickly and need do experiments the those. the build ability so iterate refine And then

but also So really it's deliver underway expectation and effort intelligence. is applications got -- are than future, more some a think that probably we an that's that's we there's big ready we're cautious least in at currently to artificial science the

Andrea Tan

All much. so right. Thanks

Operator

next Our Bloom Burton. with from question Antonia Borovina is

open. now is line Your

Antonia Borovina

question. my thanks and for afternoon Good taking

first of is my your partners. co-development of So EQRx, is the one acquisition which one regarding

programs programs the co-developing in path is programs those included And just started any that for co-development a So six the wondering with to-date? of you EQRx there are you forward that them? were

Carl Hansen

question. one. take here. Great I'll Carl that

started three developed EQRx. the be that programs deal will XX% or our co-development we programs they Those by AbCellera way structured in XX% these. of So that with option not ownership Those programs programs Either each us. our programs revolution, are our about or but an control full programs have of is has those exciting maintain to understanding is to a out have a be ownership that talking be EQRx fate of percent we're spun have would those those would moving we to returned be they'll the into forward. or or either way and different currently will a option company we that ownership they'll what are

forward. likely way that the a I development path so don't think I to And that's there's down transaction the that expect either is And happening of those. slow

new course those. best talking see this of EQRx All is are very and what to to the to team is path the we of

Antonia Borovina

Okay. it's one regarding Great. have panel. your I question And just additional and CDX

So data sign wondering partnership? nonhuman including just you a when believe data to And could provide but additional necessary you've these also studies time rough blue-chip compelling generated frame are primates. could a do we in you pretty models, in see mouse some if for

Carl Hansen

one. happy to I'm take that Okay.

work foundation to is in that the generate programs to with So very respect the as able you laid, TCEs. a terrific next-generation the and on platform I for we've science think, focused TCE said, have done being impressive

quickly to best quality the view, functional panel to tumor-associated believe, antibodies to as now, combine platform anti-CDX highest with is includes the them those our together characterized that make and antigen as bring and therapeutics. of assays So binders OrthoMab well the largest we the what and, in

a I a different as the been initiated work. high say tumor-associated players. companies work, probably announced the if first majority of those variety would that on are At space of portion that the engaging feedback were The a certainly previously been same with of PSMA actively the interest. have that we time, and antigens. of variety has was interested in TCE space. not work remains five mentioned of very before, basis presented. the That Two a large blue-chip the this programs MAGE-AX and have On we the

and So caliber platform world-class. the the very been that signal positive of the that's is science that has a developed and

where it couple in best industry. I've conversations been had at the as least a was characterized it the seen of has

generating that bring that the In be those So more work to well. that value this order conversations in deal generate of improving is expect to is think being to can work of and don't I think that -- we a the get that back but profile CDX superior quality going I primate assets intend using to technologies. the what are will on used other platform, would require data, be it probably of at diversity are to rather and end science developed and to that have the the appears the to be the

underway. that the in major associated or that TCE That's scientific with are And few conferences to programs. more is next our So year. intending we present one at hopefully, work this months,

Antonia Borovina

Okay. Thanks lot. a

Operator

with question next Our Mah from is Cowen. Steven

now Your is open. line

Steven Mah

milestone how back Aclara you're this the that program. of in taking at year. sense being us I because asking either XXXX think expectations a a in PEMCO with being not indicated you and giving of ton that for one pushed Can Thanks you the should seeing of color we guys about partner appreciate appreciate don't give are milestones were questions. of terms your back. guidance milestones for what quarter. milestones, have pushed peers their your X you're I'm But I and

Andrew Booth

Yes. Steve, it's Andrew here.

the short-term business, Yes, guidance the don't provide on thanks in know, asking we you milestones. question. So including as on the the for

submission that of think and of as lot to alluded we have start visibility, that a I difficult past kind warning. where notified very IND, upon consistent of of advanced usually us a well for we predict, as of you in an been Phase the achievement without the to. the are just I And it's or don't has

the a of on but past we have any -- have trajectory frequency in would the we've be believe don't the kind seen to than why different same we we So with past said reason in

Steven Mah

That's Okay. helpful color.

the established that you slowing question. expected? can these my new then provide the Next If partners are also regards I'm you or starts new starts, starts pharma us math to new to board? starts? us color any type you some adds And what seeing With partner across color? all of behind of reprogram in program biotechs or they program biotechs Are right, new you five second the quarter. had doing as you there? Can any what those give Is emerging and

Andrew Booth

Yes.

-- in about is we XX five probably reported XX. that previously. And as the we run months rate over So, we've have saw the year. you It's five a previous had roughly mentioned last

we So it's with and line roughly in expect. that would what

who of those we've In terms their normally program of behind a we actually time with the start. makeup some takes partners of calling register mix before signed it's them, partners are it deals programs the as multi-target then a and

so then and more more this recently the signed and last we've signed contracts was maybe AbbVie in then the past in with two course recent of latter of And with earlier of deals half one year year. the Bio deals RQ we've recent more that

don't particular between similar shift has one types. different past. a way roughly mix any been think I it in the noticed customer it's the we've other So, as or

Steven Mah

one patents. put if denied USPTO real in I to could sneak still on quick. mean, the can rehearing appeal? one it's bed, Berkeley Does litigation, Berkeley know Lights that And Lights, I your they or then, last request

Carl Hansen

This here. Carl, is

this an have I at has been we patents. So successfully there the defended point, believe appeal. But

the So and validation are a and that to place move in are valid litigation. we patents with have looking forward the we

our Tryn to off legal would on Beyond that, I counsel. pass it

Steven Mah

you. Thank

Operator

Stephen with Stifel. Our with is next question Willey

now is line open Your

Stephen Willey

the afternoon. you just the prioritized And for last questions guys of on that the maybe kind know question. I have taking I Good programs. Thanks guess some follow-up Yes. a wholly-owned more of pre-partnered

more You're doing work.

was so contract couple months then programs at before, there's three and quarters. the starts incremental five to value I when I program. six each more the partner said or partnered I as of one program just discovery under adding last look over incremental last But incremental You're think guess,

terms So extrapolating about base I out six that we should of look the months, the programs the Thanks. in next partner to how guess, last six when think over about business we or the XX? think how

Carl Hansen

Steve. Sure, here. Carl, Sure, Carl, Steve here.

great question. So,

it's ago all, signaling I been some of it been or for is on of time really XX have emphasizing and perceived first think was we over we become value and quality that in more our course drugs. business, that ago So the consistently programs where and months that, are signaled deals. that of The gauntlet quantity actually reason through business working the is in it make partnership

And we many matters programs on work many time. winners not so of on how it how total over we for the work us

other build companies opportunities can to the is the and looking where with thing that work. move relationships development, our technology needle business The have we can find and really do in been where more we

that work which turning with both time of programs. and been where investment opportunities that who time building we fronts, compared capital technology of capital, warranted on about very don't have have on or is advancing think we the platform, as advancing to other allocations those and been of selective away we pre-partnered be the would we So or

So been the we're running way has that the business.

than about also good but really ever I've takes that can quality feel forward It where had moving we the we always said, to seen. that a quantity I and close of we of are deals recent just the not that the better say Now are. these is time review good as even if pipeline.

to a is I and The asked I've in happening that is a other starting play think thing macroeconomic been factor here. this I see that we're feel like and before there is trend

being there that and already that's that trying have. resources on limited of they are are we prioritize started. past have. to we're moving that sure think the seeing companies I starting programs in worked partners the that they're fewer the seeing all are have with so part through that And We're they cycle make are that focusing programs their And to people what the that

programs looking work best to we're getting Now for us with funded. and the quality They're the within portfolio. We're very to work companies. their priority highest on looking

also or themselves. capital some as that so shape having or is companies opposed even in bigger to large business great to build think the And efficient I our companies R&D the way in there. allows to we're execute platforms more smaller very on And upfront a fees of

we even more And offering so I perspective is from been. it attractive ever has that think than our are

from then may don't the And better. of as deals again. value I we feel with. turn creation we've more work that So to I We're more there that's we to like happening. thing doing there's think going and a shift when are ever does and a long-term think is But to up perception be engage been business our will this applying we where it And running that. find terms going we it macro and downs. resources to we things want our to see sum of in We're ups

Stephen Willey

Okay. Great. helpful very Thanks. That’s color.

Operator

Malcolm question Our with next Hoffman BMO. from is

now is open. line Your

Malcolm Hoffman

for Seigerman. Malcolm Hey, guys. on Evan

potential move to Are out having interactions you're forward significantly curious you So focusing the reaching to I rather than of you partners or you there can ultimately wanted to number. don't partnership? quantify ask number likely to with, said to agree partners agree interactions on potential I of just pursue. more you that I partners are the don't maybe know proceed are quality if with the see most to was you a that

Carl Hansen

there's we Yeah. be at think a filter and that opportunities very far in numbers engage stringent the we able funnel. I out is provide beginning. of I'd terms filter don't the more that But reality the quite seriously in to

the to had partnerships and As from run further that where example numerous way the we our to in to multiple away today. we to a that business. the up reflects believe can opportunities long-term cases decision TCE That's concrete panel commitment CDX numbers before and things we to we're to create do doing related walked to around the a platform And platform the that And not because by in deals access than are just value it more taking quarter. generate the those, we're put question have on from we've drive we sure make the and to that's going trying that biospecifics. value

Malcolm Hoffman

Appreciate it. Thanks guys.

Operator

Our Puneet SVB. next question Souda is from with

now is line Your open.

Unidentified Analyst

Hi.

but was Thanks particularly any you Michael provide you curious, China. sentiment headwind. have sure not I'm have thoughts my any color there? much, interactions can I if on in question. a for have if bit on You you interested wondering macro about if taking the for Puneet. more the in there, you could detail give We're I'm

Carl Hansen

in any at Yeah. Hey China. are partnerships moment that the thanks. have No. We don't

And answers so know sufficiently we your that don't from that. don't see any question. negative if I headwind

Unidentified Analyst

Phase to something out I'm gave Yeah. -- I makes you'll with the the for curious quick partnered to mentioned if of facility building that exposure. that's co-development part sense, going to some if new regarding be all out doing you so the you extended that's No. programs pre-partners or like development that you're Canadian government, purely X, taking if Phase build some then, to as that's way a clinical out pre-partnered No just your taking that question And out to be going be program. or

Andrew Booth

Yeah. Great question.

be to or partnerships for for programs cases also may manufacturing to programs this the funding and expect even facility taking we it to those prepared and remarks, It GMP available including involves number a just in X. Carl pre-partnered used our project have certain the partnership would of So the going straight with his co-development overall had not that be all Phase partner-initiated target that deals. way from through we exclusively used mentioned is But a for some and clinic in programs. be

Unidentified Analyst

it. very you Got Thank much.

Operator

question from next with Our Berenberg. Gaurav Goparaju is

is now line open. Your

Gaurav Goparaju

in program should to for pre-partnered current or addition guys. facility discovery to think it me. how starts in prior your questions Hi going? starts program How's bandwidth Just about partnered the for expansion? two speaking, we capacity Broadly

Carl Hansen

Hello, Gaurav. Carl here.

quite sure, not rephrase? the I'm you Could understood I Sorry, question. maybe

Gaurav Goparaju

you basically say constraints. let's active about into ultimately new to something So now? just strategically capacity thinking XX you you as -- I just to think program starts -- Just right start? have a example, do bandwidth program if Is actually you're that considering physical the trying when for getting have

Carl Hansen

Sure. Yeah.

stages. various XX So have given active any first we dozen flight programs in like at from at a time to anywhere may

have able place. entered a where were fact, or a where And certainly limited closed a capacity partnership execute partner and a deal in been in program capacity call that weren't on have position we've we had we to a we or in So that. never

always make is that levers So available sure to scale up. We to able be pull execute. we capacity to

any on some at of that overall given platform and And we're lot size, a sure there development. over the work that we've is built years, bear and valuable capacity allocated. capabilities is efficiency of be Now, to there that as ideas the as last a most resources of we're can that couple and lot making out what are well the bringing on doing of

the So throttle and at there's time. pre-partnered an opportunity given to on up and on a partner-initiated see how mix we programs depending down

Andrew Booth

right company. employees, build over grown Yes, XXX our one-third the top see Gaurav, talent the recruiting have drug just and of to continue number -- if the years, our and lab partners out two-third also of complete few of to the over about in the this R&D I be and and still of could that capacity noted plan and R&D all lab we the space. space and years, on scale on mean, to pre-partnered we over GMP expenses work employees I execution that invest can able to in expenditures are about to we've execute as add about and the platform to development the continue program through now our to vertical CMC XXX out to including on product last on you've And integration programs. office produce for out building build from

I we mentioned been significant with we have on liquidity speaks think called the the where the dozens period program a that in our we program not and of And while is of partner Carl that over strong some able really time. different execution. never of ourselves been programs initiate bringing has on to a speed. increasing and executing there And position to pride all us it's available and we that execution investment that So a capital have as have to

Gaurav Goparaju

near a the mentioned or development at ice, updates the you in guys expect there then past? have we any was quick updates program Eli put third-generation it. work on that helpful. in Is being this COVID-XX Lilly from on should future? That follow-up. the Got And regarding Are that antibody

Carl Hansen

Great question.

We haven't for while. talked a that about

an that. that now and right uncertainty if I've is have would We other my are clinical hand be now the that still superior on there's the molecules by believe I actively ones toe-to-toe engaged to solution are space. in path in development. right with least effective Lilly. no understanding at about And in we out not seen big The question

So we're now and on I step the upside if happens, to that's it business. at of partners also our Lilly view we ready as up. true believe it right

Gaurav Goparaju

guys. Thanks Great.

Operator

There Instructions] more questions. are no [Operator

the remarks. So I'll back for call over the to pass team management closing

Carl Hansen

and Thanks future about look remain on with about that's joining everyone to being us you AbCellera's and calls. future for excited the excited we speaking are forward made progress today. We

Operator

for That participation. concludes the your conference Thank call. you

You may now disconnect your lines.

AbCellera Biologics (ABCL) 3 Aug 232023 Q2 Earnings call transcript