ABCL - Earnings call transcript Q2 2024 | AbCellera Biologics Inc.

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Operator

Good afternoon, and welcome to AbCellera's Q2 2024 Business Update Conference Call. My name is Tamia, and I will facilitate the audio portion of today's interactive broadcast. [Operator Instructions], I would like to turn the call over to Tryn Stimart AbCellera Chief Legal and Compliance Officer.

You may proceed.

Tryn Stimart

Thank you. and to afternoon the listening good world. morning, good everyone evening around Good joining XXXX for Call. you us Thank for AbCellera's Second Earnings Quarter I'm Legal Chief Tryn Officer. Stimart, and Compliance AbCellera's

CEO; call Officer. Carl Joining Chief are on Booth AbCellera's today's Hanson; me and and Andrew Financial Dr.

we the projections and call, Reform of Private our Securities based forward-looking safe the making pursuant XXXX. and Litigation expectations to anticipate harbor this statements on During current provisions of Act

latest as otherwise. results XX-K could due set forward-looking AbCellera Commission. differ Forms any forth any and and Form a factors or to whether information, undertake obligation XX-Q the our actual subsequent result Our Securities with to in does materially filed of as not statements, update several new Exchange events X-K and future

press The intended is information the provide is including earlier are benefit investment presentation issued of filings SEC pipeline and promotional. our today we website. on not our Our our Relations the to for available be earnings release about our Investor and today, community

As dollars. all during in and lines dollars questions are please the remarks, call we referred U.S. note that for prepared to our will open to prepared answers. we the transition After remarks, our

call turn over I'll Carl. the Now to

Carl L. Hansen

QX pipeline. with equivalent progressing internal Canadian clinical Starting joining and us investments in IND applications, well, we submitting our Tryn, and thank partnerships. on anticipate internal second, completing Through Both first, XXX an our pipeline; you, everyone, to building third, we trial the and of platforms XXXX. executing second priorities: Thanks, facilities; quarter, focus select X on XXX in today. and our ABCL for ABCL are continue strategic our allocation capital and advancing and of the

leads TCE the is select that our from We platform moving programs that and last to development call we preclinical into models. on are efforts. efficacy Turning essentially complete our noted

cancer, to compared this to studies, shown vitro we our much the dosing potent achieve an the we comparable or potential PSMA breast, into X more pipeline have in benchmarks these relevant to the as of data also efficacy. lower to BX-HX unmet Of BX-HX strength related clinical profile TCE safety, may in the of leads oncology, high toxicity. XXXX. our low PSMA high a evaluated, are target including target. is being studies, cytokine release in and killing the X solid killing killing need. On our with has a tumor programs toxicity tumor high better BX-HX and enabling release PSMA better leads target have prostate date, in believe these TCE is of killing TCEs tumor well-validated We release. clinical that or in have Similar lower elect undisclosed In our To having higher and while programs an expressed tumors, targeting with various cytokine PSMA either to including benchmark. shown program, obtained ovarian cell cells tumor most currently clinical area cell comparable bring on one our PSMA, cytokine lignant medical show only in and lung. low to

our PSMA with to As efficacy. and has the this improve both believe potential safety program, we profile

approved as currently target, as engager are both well For T there for BX-HX third and our PSMA no therapies. undisclosed cell

are where cells. of the cells and B autoimmune in highly target being on expressed treatment B B for broadly The is of other effective developed ablation with Our CDXX-directed has broad CAR-T been and shown targeting specifically autoimmunity. implicated. is recognized and a to lupus have fourth is in CDXX is to potential program CDXX recently cells TCE disorders be a

CAR-T clear convenience. have As commercial modality, advantages cost, and TCEs namely over a accessibility

CDXX originally Because with are autoimmune designed of commercial in TCs repurposed convenience. and studies that were Most cost, accessibility clear small conditions. modality, CDXX and for advantages CAR-T treatment now evaluated the have has B-cell in sclerosis. The a oncology CAR notably, comparable is of number to of namely a BLINCYTO our systemic patients, achieve best-in-class along over is being shown TCEs Ts, and As of early signs this, what program ablation, convenient rheumatoid arthritis or efficacy approaching both deep delivery a achieved of safety goal profile. in with with and

become X programs updates provide will We on available. these as they

partnerships. view to a continue we TCE potential basis to In for of being as our internal programs, strategic addition a platform source

small Speaking Track with Abdera for of clearance receiving IND treatment for partnerships, lung of for to ABD the designation and FDA a cancer. antibody conjugate congratulate we'd Fast cell XXX, patients like radioisotope

million in antibody is in Abdera a with AbCellera royalty the X a which Abdera's is Invetx equity partner have in royalty Invetx's AbCellera single-digit equity health reached company. reminder, is partner the programs low to well mid-single-digit in XXX company ABD a XXXX. has total which launched worked a has a a of from field in partner, up $XXX was a also derived. animal our multiple mid-single-digit position on Invetx, AbCellera founding on companion consideration. clinical programs, Abdera, founding We AbCellera as their position ownership that well programs low in Through as Like in like in as would company. as a single-digit partnership, studies. the for As which has and Dechra acquisition to the discovered by ownership congratulate AbCellera upcoming

started announced builds programs well X as discovery recently of XXXX expansion This a included therapeutics COVID-XX of that collaboration we and our on our partnership pandemic efforts. with as antibody an in Lilly. successful March response Finally, Eli

expansions that Gilead. Lilly. I'll hand including with Regeneron that, excited discuss our And and financials. are note this productive Andrew it partners, to over to collaboration We Andrew? And to continue top-tier with follows with other our we

Andrew Booth

our a on available program. cash government initiated second complete to liquidity in of to and strong quarter with and on our continue an XXXX, approximately be in to to continues both internal GMP the CMP approximately in to million strategy. investments AbCellera equivalents $XXX and partner $XXX In advance execute our execute funding plans we million position and

at total with programs our partner-initiated second key to downstream metrics. In business participation. which the started XX programs, a us work of quarter, take on we Looking X cumulative

Abdera in QX mentioned, to XX. into to total clinic As of bringing XXXX, advanced Carl the the cumulative have ABD the reached molecules XXX clinic

The advance is We AB-XXXX revenue downstream our growing our in of of payments molecules of Arsenal the of our change midterm clinic progressing fees royalty I/II and term. milestone clinic and the other in view quarter. the a the potential in from Bio's in second portfolio specific Phase into as near molecules examples trial the list in longer

programs $X.X payments. million work in million, of of $XX This approximately to $X the research Turning in well was to fee driven fees million on by as compares Revenue as milestone XXXX. partner-initiated and mostly research quarter revenue QX relating expenses. revenue in to

continue to as internal co-development lower focus We program. to expect trend and we research on fee increasingly revenue

to in by increase more Our $X intellectual were property. $X This compared over is a year. driven research QX $XX expenses driven the expenses our were reduction administration related XXXX. continuing last and And and expense This program were sales our $XX program expenses and million, pipeline. development in platform for is for roughly and about marketing In small million million the in million QX expenses internal relative to last than general million, by just of investment defense our to development $XX year. execution, quarter roughly ongoing approximately increasing

of loss compared reporting Looking roughly $XX at same are a a the to the nearly in last $XX loss million net earnings, quarter for year. quarter of of we million

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

Looking at activities the Operating of $XX cash million. half first used flows. roughly for XXXX

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

establish Our to holdings. approximately $XX other approximately million net million capabilities. $XX investment activities in plant CMC and manufacturing our work GMP amounted ongoing equipment, X included months activities $XXX driven million, for including the in investment invested property, decrease these by and All an approximately to

these continue total investments and substantially approximately $XXX of cash at the this quarter to rate and complete expect with XXXX. we million be securities. cash, through early marketable XXXX finished Altogether, in equivalents We

government to our execute liquidity advancement nearly cash government available and GMP does unused of show secured strategy. for the with this pipeline available to portion our our equivalents capital of continue Strategic balance British facility we reminder, manageable. and have and total This respect $XXX for funding, the up of and Government we As commitments capital sheet, the have operating million Canada's a on are not to Fund Innovation internal in expenditures, very our in received million on the overall With $XXX our Columbia. over our needs of funding from

and take we'll we fund of liquidity sufficient continue be Operator? have investments. years next believe We to the platform well X beyond to questions. pipeline with that, And that happy to

Operator

from is begin now The [Operator Piper question-and-answer Allison with session. call the Sandler. will Bratzel first Instructions] We

Allison Bratzel

those you And understand program preclinical that us preclinical in on strategic view kind this just understand you that of terms X frame indications TCE in Maybe products. your that? platform. Just CDXX updates advancing Could you how could me expect TCE interest you're just us also can now us models, what and molecules internal could own moving efficacy for differentiation program? into one of like the for indications do interest the the help in we with autoimmune help your versus of oncology

Carl L. Hansen

Thanks, Happy that. Allison. here. to take Carl

remains same. previous calls, quickly question respect the just with on strategic I've to first, interest. So had answer that the largely

significantly program over has advanced potential for of last have quality -- do in We the me, the the and and X.X space. been in what remain we with very the years. think TCEs. it the can reviewed, in some key science platform the players And I conversations active the widely appreciated The pardon of

models in into Our that clinic. will is that then -- data in had vitro, in the ultimately pardon in showing focus vivo now me, right the vivo translate we've towards and

based respect vivo what as at whether what be tumor in studies the shake alongside a to that regression one confirm and that that the for programs to seen confirm bar. in next with yet as the our think thus we've that, simultaneously far. are far year. good ability differentiated get with are not we've will of portfolio release probability to respect we're case We how criteria to well know least against as thus and into them models evaluate seen cytokine into that to deciding the But with come the we'll we obviously And a the data in mentioned, or keeping advancing there's we benchmarks I bring of as testing studies. to we on are clinic we to X in with using are xenograft up TCE, that. high out, oncology So Those molecules molecules able don't

becomes like that conferences and when we SITC at ASCO So share data will it available.

year, this of As don't expect do on be in we I we'd the year. data, that position candidate basis to mentioned, next could elect so development but a I a strong

On believe autoimmune side, a the think think applicable also and that CAR-T seen could have we thus conditions. We BLINCYTO autoimmune been this is product to to that that suggests small that strong approach B-cell CDXX, the in with be a that's studies the a needs depletion. opportunity. tremendous We great an that's widely far data

As CAR in convenient I in seen And commercially comparable, terms as particularly also, drug. therapies convenience mentioned, not BINCYTO if that cost be and not is accessibility. should our goal and good challenges also to is and T get safe real And something obviously, that is T. and convenient. CAR And itself is both of as have what

of X continuous the So infusion done were that days twice. studies required done

to is And more to that a developable package. have low built killing a our in standard goal cytokine our looks for with So has drug. strong been allow platform release something like much

doing that that, least got let we're at data confident shot you that and we've progresses. of a very so know And we'll how good

Operator

Stephen next Willey comes The from with Stifel.

Stephen Willey

burden. out I about relative oncology, platform guess, know in I'm due to rates CRS disease, described I we've in setting lower seen release at previously that benchmarks least of there. that's with what the to the cytokine Carl, of talked was you've lower TCEs, of autoimmune and improved the both presuming TCE CAR-T much some and antigen But So profile and

about like rate [indiscernible] how move CDXX to of curious with you a with the respect things respect a about as How crowded importance think interval, product just dosing to the And then of choose perspective competitive space. fairly convenience. CRS into what's you lower administration talked So from important that. profile you becoming to TCE is another

Carl L. Hansen

questions, Those are Steve. great

thus exists burden. think CDXX-directed first, compared is Presumably, accurate is I So far that less oncology, has as less methods that cytokine and to that's release shown data less B-cell using in toxicity. because the ablation there that

because you It's of being tumor many also have You treated on don't have several potentially of they've that for in lines immunosuppression. burden liquid big therapy after tumors. these the patients are been

is serious That multiple lupus, hospitalization been accurate. said, something that's people or that's to like and refractory for conditions, delivering in instance, terms has In So effect. autoimmune days -- therapies, very the have it Certainly, higher think to where probably some convenience patients good in that other be existing certainly of a over is product. bar the conditions, of okay. we going the

this autoimmune to you you be strategy conditions, will CAR-T. And be don't more for that imagine general want treating so using if certainly a a

a So we CAR-T of will same close CAR-Ts believe that if someone has We dominate actually a up in competitor. over consider even TCE don't to be with to the direct efficacy, that the comes use. it terms

are that a of being things actually and you TCs attractive. using if repurposed. And right that think so think class for about mentioned, with mean strategy. huge, the I one we on that's up are some that There there as the are, out are that they I come to makes molecules us be few. the the are a our oncology focused now, platform were best-in-class that's We profile. can surprisingly developed And

bar optimistic the and that's that get that there. we're we'll hopeful So we're and holding,

Stephen Willey

novel with yet not the of just lead respect third oncology this is that the to function that just TCE a for be you taking candidate that Or bit target. that's is are has which disclosed, target with perhaps candidate that risk little then as And a the development yet? insinuating of a fact biological of to

Carl L. Hansen

thus solid some very in that exceptions, from far, notable with biological associated apart any tumor. risk been say TCE there's I'd

that is that's built as to that behind matures, a space. But at program not So right. comes that data probably you're course, And step ASCO, expect kind depending the the of SITC data due share reason and do yet is make have known that others. the that we into decided we'll in. The one disclose or when in target I

Operator

Andrea from comes question next Goldman The Sachs. Tan with

Andrea Tan

in for here versus that's increasing one OXXX the regarding you, derm. debate atopic maybe approaches right ligand around Carl, now occurring OXXX

potentially year. just see if Just and of as the ligand puts to versus you takes see a IND then, remind us data differentiation if there the possibility follow-up where a filing we through, best-in-class XXX preclinical is wondering could again, that for receptor ahead asset? the you then walk as and could targeting any us that And next

Carl L. Hansen

heard Amgen's say, be to it, pathway, generally, is respect with first, So I've is has What is noting our a Is and good is which asset program, evidence on amlitelimab, pretty made between as versus depleting behind both lead, a worth OXXX preclinically would to chance which sides. a ligand blocking that Amgen is I the antibody. OXXX-Ligand there's OXXX, arguments that that efficacious. that do falling rock. that however best-in-class in different good you obviously,

there in And -- the been with or have And effects so that why. express reason it's molecule has it's OXXX, that ablate the cells an OXXX. been the antibody engineered side but that's presumably, associated Fc and that that binds to some

we of are before, program, about class. mentioned as terms In I excited, our the

about really, I'd proven to think have dermatitis, be very targets X you If efficacious. atopic say, there's that

of the LiGen should One the the obviously, is -- pathway, them, pathway. other one the IL-XX say, other IL-XX OXXO or I is OXXX and and

it one And class really across We potential be what less also a and lends is to frequent a distinguishing long-lasting different many which a is autoimmune think to of is this has that that things conditions. dosing. itself very that large effect, program appears the about

be potency following programs superior that against got And a package a CMC I've into and needs this maybe forward. are in a I are that good is in a that knowing cell it course, comparable of year. of high-dose And has that that. this on and other to molecule half-life, high-tighter taken be time sure great molecule to for Thus have for We're moving successful, it off. come a line. on at meaning going can amlitelimab, good a QX best-in-class stack than we've some we developability, to to time track have is least We a profile. pay more all far, up a of program extra to little is the making others submission means we track And that to that CTA going a get What formulation. that next think then,

Andrea Tan

And commenting then maybe potential you if mind don't interest to ahead some on submission? CTA or even share your data that of preclinical

Carl L. Hansen

Another good question.

well we that may I think do that.

yet. in definitive most would do PK made to interesting early data Probably plan it be the studies of a some HP. haven't the We

well clear that. have a for may you show yet. answer So I don't We

people necessarily the data Of course, will what be from data PK predictable studies study. not in are I important those the probably Phase most early happen will and the

Operator

from Seigerman comes with following Evan BMO. The

Evan Seigerman

[indiscernible] research saw few A XX. help research meaningful One, expand to reflective what [indiscernible] to expect that, comped CRS this for fees you be going you But maybe drove in whether Also, fees some by reduce the of rate for and this the I forward? what CDXX kind quarter. might on clinic. about talk your looking quarter, we know your run PSMA of me. at lower any the of Amgen it of of pretty and Maybe sort think kind me you

Carl L. Hansen

Yes.

piece. maybe I'll with PSMA the So Carl for to start then hand Andrew question the here, off research

assays cancer similar That internal we vitro level potencies actually we have Amgen been dramatically in That's release. the quite is with at What to striking. same is ability see less but the data cytokine cells on kill and bench. to on so cells benchmarking tumor we So studies, In have one of cell-killing used the against XXX. in done our molecules studies. that meaning the

that the of rather, that well as most as you So the TNF it's what something qualitatively of cytokines different. inflammatory like like it quantitatively difference alpha some you see small is is not looks get in release a

about that it's We now if excited in we're to compared highly is that anything that So animal And bench. open the seen we've or be tested anything that. question differentiated think reproduced will the on studies. we've profile

So been it's believe has as killing data TCEs optimistic tumor of you of a that, that type TCEs. to toxicity there's of that space seen the the to on no will And because crowded that get If are based cell we is mentioned, that less But be work. able space, out should means there. it PSMA some guarantee these there have be what mechanism, we same it while I will then happen. that, believe we good that in have the and been also a against does,

piece you about something you the happened clinic. for straight There can great forward. move get But TCE, of downstream. getting what So has a the the really in you and us a prove to platform efficacy know research evidence on that's good data. now, pass the a bit for to we're with vivo and that's is maybe focused question. in one that to I'll place Andrew, Right course,

Andrew Booth

I quarters. the fees as Carl. on remarks, trend, reduced Thanks, that internal of prepared indicated think Yes. co-development. research the Thanks, as more has rate had would focus the we this coming programs research And be in Evan. Yes, the our because downwards been I fees that as the was in well the previous the and highlighted that trending that expectation in quarters above

and co-development is the partners should able majority expect of a partnership that which less on be focus the of programs, business, the So just internal I what's spent R&D you is, to dollars where mentioned strategic the and are before, that. emphasis as those activities. And some -- you few with should on driving

Operator

with comes Leerink question Puneet Partners. next Souda The from

Michael Almisry

Michael on for today. Puneet

bit a I the wanted talk large to guess I So little collaboration. about

a program collaborations expansion. these you iteration. have a the talk about economics So I their couple wondering if bit how you've was of since evolved first noted could

Carl L. Hansen

pleased reinforce QX, So in Carl Lilly the was recently. this are but here. very Yes, it Actually, we announced collaboration with quarter. to happened that

to good to has And the is with course, So be very we been believe companies AbCellera where we has for space, going come. the important scientists. one engagement Lilly the of premier is brought and it been of That there's up that that relationship on call. productive, collaboration years really in the in a

to -- of in that I think the financial but at disclose financial I'm moved components it's right deal, not liberty the the direction.

thing renewal that the is people problems have difficult of the in collaboration in do work Regeneron. the and able and on great And has that's strong a as heap. produced that at other alongside noted, really better expansion job of view the very the say building ones Gilead of that the able that that right I top I that other at or their and the being own in we to done I that, a would platform most platform indication including think do that we've therapies. a that track endorsement a they're being tackle The of is some antibody capabilities the to by the space of we're valued terms creating very

is the message I hood, a pretty under as community something investor to strong So there the that it's signal. a think

Michael Almisry

And also the wondering what clarify you could quarter. impairment if I assessed drove was this you

Andrew Booth

Yes. very much. Thanks

contingent the were -- as in-process some offsetting. that an R&D both of as well impairment a had So impairment mostly we consideration

there you'll that programs were to are consideration some in continued we a though is other on that we from some It and other. and of of in-process acquisitions. advance and some continued the forward IP associated be acquisition to as the an R&D those So see consideration was took part consideration as depreciation, amortization going looks NRD contingent reduced the where will an made that due. had the previously not And income impairment that and relating that impact one

noncash were and roughly offsetting. the impairments So is it

Operator

Instructions] [Operator Securities. with comes next Stephen TD question Mill The from

Unknown Analyst

curious and I'm green development biotech into see a there. to going out the see we on about more few start Lilly business couple as see companies, partner talk you Congratulations can we a more engagement little a front. new that's on shoots to bit how expansion. Just the levels. But funding

Carl L. Hansen

priority, more funding communicating as partnerships. Regardless for time, take have, that signs. to to select happy the I'm we're in been of top one. that than that, That's some here, as hear. we optimistic you're focusing the finding some advancing companies Carl Glad as internal Yes. great that pipeline our well building to and seeing biotech hear strategic

call that announced So think a we Biogen. it was engagement new I with last

we've that companies fees. quarter, can may new in that assets lower first or XXXX, looking a to where is of as is compared That, for. That's We deal of find with research And owned either What means That's there say, is of to, pace XXXX, you're see that co-owned renewal biology the going Andrew to a Lilly. volume. also synergy we think partnerships contribute mentioned. building a an what This technology course, internally. we be got announcements exciting less or type reflected when that the in we're there's interesting in pipeline brisk of public going let's became company. to fully

Unknown Analyst

Viking to And ArrowMark over collaboration. maybe pivoting then your

of well. with those Viking Invetx, Given see the launch collaboration? collaboration success companies And worked that How is start going? ArrowMark out to and expect out should Abdera have to to we the when start

Carl L. Hansen

are in would say development intend we collaboration. love I start, once with we still companies and a off We early are to it's create innings, to on candidates. program ideas them working So the that great but we have right?

and something the terrific can example out. know when you created make And some from we to working do. something that's Abdera the with the interesting to report. hope agree we to Truist. with a by finding good And repeat to certainly putting is platform. do Jahangir Bill that, that But play sure to going hard final that we be So have that will skills and built let The ideas value together question example on we're that time comes and complementary of take we executives that's I

Unknown Analyst

questions couple for here. a on We had [indiscernible] is This [indiscernible]. of

programs had we've will differentiated you're that how you the targets. like a and to know on that made increasingly how pig note, used they peptide never I to front, you offer And into there. have. it I on Regeneron believe TCE that internal that clinic partnerships? Now already what prioritizing noticed that your also capabilities you your company note, on you And wanted have MHC do prioritize programs, Regeneron don't

Carl L. Hansen

Carl here.

one So and would at you breaking maybe question the time. taking mind up just a

Unknown Analyst

you Yes. like enter MAC mice target, and companies in guess that peptide have for It's to it's that. previous I space. you from immunize have tried differentiate -- how target, a the stuff complex to do that

other not and gone the -- have into companies So clinic.

I them. know from you are how So just guys pushing forward to want and differentiating

Carl L. Hansen

are that is Well, previously of not in The has in mentioned become Yes. do of although program the the program talked a because TCE we peptide an that that believe therapy recently target cell space. had about some we readouts that programs MAC forward. that's bringing was group interesting X, we

we'll That's against So MAGE-AX. was again, one at, target that maybe that look reevaluate.

our In considerable a TCR at least given terms of we're average, that speed and that quality of. most, peptides, that aware that terms with on antibodies it, It doesn't provides our do can a of generating given mean other approaches in people do other space advantage mimetic in MAC cannot we that target. than but believe we platform we over believe greater very

of would found you that MAC-peptide into good our unmet not provided there's, medical generate the thought can antibody view, why the So no path. high area and you need clinic, an target a you about development in if reason you bring that that

one So we companies first TCE. a more that that for And peptide. be the think course, have not future. that's against lot that are, in of developed space. an there's MAC There programs prioritized we It's just of we've going exciting in programs think to the

Operator

remarks. management questions will the closing team you. to are no it Thank There for currently I pass back time. this at other

Carl L. Hansen

internally, We're you joining about look for excited keeping forward to progress we the Thank updated the you, everyone, call. calls. and on future

Operator

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

lines. now disconnect may your You

AbCellera Biologics (ABCL) 6 Aug 242024 Q2 Earnings call transcript