ABCL - Earnings call transcript Q3 2024 | AbCellera Biologics Inc.

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Operator

Good afternoon, and welcome to AbCellera's Q3 2024 Business Update Conference Call. My name is [ Tamia ], and I will facilitate the audio portion of today's interactive broadcast. [Operator Instructions] At this time, I would now like to turn the call over to Tryn Stimart, AbCellera's 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 third earnings quarter I'm Legal Chief Tryn Officer. Stimart, and Compliance AbCellera's

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

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

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

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

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

to Now call the over Hansen. I'll turn Carl

Carl L. Hansen

joining us Tryn, and thank you, everyone, Thanks, today. for

year transitioning disclosures pipeline clinical a that that update internal to a platform use give progress. we biotech. Given on our an this a committed a building and AbCellera's few are ago there today's company a was stage new It brief I'll to quarter, prepared remarks from position to and

of programs and investments, our our and build our internal on we've focusing advancing reorganized months, XX the our platform capabilities. past teams the Over completing reallocated

targets This them, cell and ABCLXXX smaller year. novel wholly conjugates. in track programs owned against T programs XX-XX on in CTA number transmembrane are stage portfolio a multipass on engagers programs our The broad Behind prosecuting and QX programs. for targets, of discovery are of co-development of first protein ABCLXXX includes degrader filings pipeline, antibody and next we X a

are final that with the and the headquarters to assets. At pipeline our breadth finalizing that are this confident XXXX. will stages quality are it into time, clinical Vancouver, we pleased a of facilities. a and we we same differentiated move-in We new mature the portfolio, and began our completed quarter, of the in the in back now project capabilities Notably, building in this of

also continue remains facility, GMP on our online steady and come make on will progress which We to track in XXXX. manufacturing

built further next Additionally, our first prepared over are our to investments have anticipate well to the our past teams advance this year. year, for We team, in starting grow. and development trials clinical we and continues as and translational X pipeline

build partnering, where to the this to as co-development mentioned is our Lilly. partnering quarter, partnership with priority our of our assets. we we moving with call, forward focus last co-ownership have on Turning Eli development, pipeline on expanded collaborations, resulting Consistent on

thanking In look and and full later our addition, challenge. platform. our we for SITC. I'd work in leadership of we new to their successfully like will this, presenting on to engage with by existing this and And what TCE in year will at our continue has to to on data change week been platform be end relation a updated TCE navigating partners teams

company. our on clinical We are clearly to transition track a in stage

over maximum with our Andrew? discuss hand years, execution, will coming that, and value it I confident to the will that to path shareholders. And am deliver to Over Andrew with this focus patients and I to financials.

Andrew Booth

our execute we plans equivalents million quarter million and and of available be to continues on liquidity roughly programs partner-initiated AbCellera In Carl. government cash to funding approximately CMC with our in $XXX third complete our both and internal with to to continue and and strategy. to execute in GMP investments. Thanks, position a XXXX, strong in on advance $XXX the

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

received announced orphan from quarter, that FDA. the Abdera the drug During designation ABD-XXX

clinic, As examples specific payments our fees stated progressing we potential of from the and near in have previously, midterm milestone revenue we term. the molecules growing downstream list our as and view of royalty longer in

to Turning the $X and by also year. programs. quarter expenses, to on fees mostly research was million, This approximately revenue relating of almost revenue last QX in million in $X driven partnered work to of compares revenue

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

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

a programs non-cash a $XX discontinue same the at next-generation from of and last earnings, to for of transgenic reporting This the loss prioritization resulted charge year. of in-process nearly our includes This of impairment approximately for quarter development quarter loss are decision million. Looking R&D of we impairment compared mice. internal million to the loss $XX million $XX of roughly a net in the

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

the for the our approximately CMC manufacturing and first X cash capabilities. Operating used equivalents. XXXX used investments operations, in activities first of cash all months In have flows. million. build at Looking This $XXX roughly completing headquarters well GMP XXXX, infrastructure our funding of X months includes we and $XXX of million the as as

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

manufacturing and the the offset in and Invetx included investment million, contributions quarter. government these stake from Our establish plant ongoing proceeds of were in our a other amounted property, equipment, our cash million work capabilities. The $XXX GMP approximately All by an $XX partially invested investment in activities in including months to net net million for sale driven X CMC holdings. this by the activities decrease $XX and PP&E in to investments approximately

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

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

next believe have back pipeline that, beyond fund I'll to take turn your years happy the X that we platform We liquidity and to investments. And the with operator. it questions. well sufficient to continue of we'll be to

Operator

Instructions] from Bratzel first comes The question Sandler. [Operator Allison with Piper

Allison Bratzel

me? hear had sorry you question okay, -- great. a Can I that. Hey, about

the me on a Maybe competitive there. landscape and for question just OXXX Sorry.

curious, updates think could kind on an competitive recent Does I OXXX like just underwhelmed which targeted rocatinlimab, I'm advantages thinking investors. of such some your or indications? from the as ligand of your landscape? share versus therapies overall you considering update us XXX? it view to curious just inflam space of in your view just change data XXX. on that, relates your atopic derm other And of as be to thoughts I'd the that get Just

Carl L. Hansen

Sure, Allison. Carl here.

gotten put that did update address rocatinlimab. OXXX. ligand does we some additional lot think a difference And I and on yes, that the first, the we've table between to question about the see data on So OXXX this

I an than with XXX. different what emphasize [ we have of action that mechanism Before ] going though is -- there, also a would antibody roc in

is cells what it or roc which be null antigen-presenting depleting a we have So target of cells effector which antibody, an whereas means antibody to the that that is non-depleting the express engineered typically. are kills is ablates cells, that OXXX,

has lot. cells B the block this that OXXX pathway T to of cells had that I've for and some get to survival both if or My question OXXXL. scientific be time and able should effect you response this and expansion the is been you critical So either a

has have to what to What prior was did definitive the would see unclear with as Amgen it's with that seen data, advantage compared other. we data a the I efficacy, over one So was that or significantly said amlitelimab. response less

And perspective, one as that's reinforces best-in-class is are So we potential. to course, be on from antibodies if potency look and a best-in-class. more believe OXXX the before, not our the than the bullish is early I've this that half-life amlitelimab first of race. like. will engineered the that there. XXX, in and make namely comparable to we its ligand It will that best-in-class, and view it, non-depleting profile, the assets pathway to out that horse have seen lead what developability remains said ever And are currently very

obviously, one the which have has it many stated first in dermatitis the a that are one So that dozen significant. and different to atopic beyond we big that, is into. we're indications, indications potential develop But going of probably of

update on so, plan preclinical and on bullish to CTA year, next to -- And data a filing we're present XXX. we -- we at close expect sometime remain conference the that to we program,

Operator

The Tan Sachs. with next Goldman comes Andrea from question

Andrea Tan

SITC can extent you more a at about could just the speak for T Carl, we little engagers? the bit of cell data expect

Carl L. Hansen

that to important, we're cell SITC, presenting done going the in are in that's TCEs work some provide technology, that is to updated but our the that we that will better co-activation including an have progress, that few use TAA certainly be antibodies that data cancers can to some area we sets [ at to get trispecifics platform CDX and sustained presenting panel co-stimulation demonstrated programs, Andrea, be ]. that Yes. we've or still highlighting and developing of we work where think so we of T from a going be that the to binders are is designed unique desired get up killing include combination

Operator

from comes next Stifel. The with Stephen Willey question

Stephen Willey

respect independently kind various you engaged owned the partners an absence I many curious, on you in of to you've want forward support as is TCE about I But pipeline, you of you you've of guess, that and necessary to your could the investment on just look the how to platform-based platform, the about longer-term a about expanding own think you do partnership? know pipeline as think what like push just these programs think broader how with front. wholly been this talked with

Carl L. Hansen

Thanks, one. Steve. Carl here. take I'll that

back, So best-in-class therapies. over the and antibody years, have capabilities to pulling first-in-class first, the build been to core we working heavily XX develop past new

very we in the close prepared investment. to mentioned that remarks, As are of my getting end

to liquidity able for that fund the in we assets just development. in to develop be to pipeline the be clinical we what $XXX being in foundation have lead and is And a what also populate so, assets of available exciting of under to use we will And platform million intend place. hope

We on have for been programs. working preclinical some already, time,

We have really to the lean and to just a portfolio about the we excited which pipeline. a broad of process portfolio going doing clinical what's programs review We're that on to are prioritize in populate in there. are

I think development back lot X we those to and candidates with many potential as next there liquidity have the year now, new winner to to and ones. Right have there's past mentioned. year, big or that forward X starting Andrew as be have X pace of years, other need move it an a perhaps anticipated up we per we as that

of positive get late-stage the the raise chance down need, medical we data a that's asset, business. will the take asset clinic we those we But road programs bit, this would a a to equity there, have fund of next expect a financing if that we going hit get order need molecule large better-than-average as out-license compelling a to once or unmet in forward so into much first to X shows possibilities that moving another trials, opens that. address the if we only are that can still So year. that on that we lot for data And a clinical

Stephen Willey

the for completion And this portfolio is review? there of frame time any

Carl L. Hansen

wrapped that is the December near have the date. official end We'll year. up the of

Stephen Willey

I? funding Okay. number of And there's not of amount But in that on to is need the you needs next development to development to if requisite Phase at so, impacts, minimal there then sites, move because occur just if Canadian through to funding, CTA year. the of place filings how think another trial whether Canadian you from that curious have that do a that place And used? all, as government. that I clinical some just going that your work or be taking question to are through sites ability if be know

Andrew Booth

funding here. molecules Phase do towards is I. done or But Yes, Columbia the with The to question. of you government from that XX effectively. this very And Andrew Canada. note, those oriented the good up close taking as funding and XX Canada of in British we both it's to Phase Steve, into have being Is government to cost

with funding, be any those Phase a to in the that those the the States, an looking future issue for issue, and in those But turns that to certainly in order or out Phase that having XXX, I also conducted that Is Phase would far necessary trial requirement anticipate molecules around world. by trials, sites qualify headwind or into at, say, to we Canada. is need it be expand and Is can completing let's don't in for So we're If we intent to running or United any if Canada, do our in Canada. XXX

Operator

question The Truist. comes with next Devarakonda from Srikripa

Srikripa Devarakonda

have about I question a ABCLXXX.

field. past, that for sort you and You space this and that. about think in has pretty ] is? serves endocrine more developed confirm also, well being think conditions the any billion it [ the challenging said competitive provide Can been also you've to how color mentioned metabolic experience the What I $X which you or channel, this it's of ion just market if And GPCR wanted targets? in target? but target

Carl L. Hansen

a for that a market is in is disclosed Kripa, believe protein there or $X first-in-class the endocrine this do multipass of yes, of of it is have that which been target billion disorders. one an against transmembrane excess target areas emphasis. of metabolic we think antibody quite And target, in has most a ]. We [ I so key conservatively, addressable that you've condition against a a is previously, it, covered

the that We indication. Beyond will for chest the then, disclose when we're expect not until But cards then do CTA that, target we're reasons. about details close disclosing that our the both strategic is we program. that any approved our keeping and to

Operator

next The with Evan question BMO. comes from Seigerman

Conor MacKay

is This how new the entering programs remind recent maybe term, you the about internal on assets shift? few allocation clinic spend the of thinking Evan. for With and just year of near you're can Conor us given in programs ramping resources a for sort partnered into versus

Andrew Booth

here. Yes. Conor, Andrew

that and manageable. too trials for new we're be certainly the significant and XXX, even Phase an into are think I The the I into year, maybe XXXX increase clinical for XXX expecting costs not to XXXX. very still

be I expense, the it into XXXX as very QX, to is be R&D quarter think will to this we similar. expect similar pretty our in which in run rate and

-- is maintained projected off from part PP&E, may flat difference QX XXXX, CapEx beginning our the but to we've be expenses been will expect we XXXX, last drop at expenses, You through of significant quite to that expenses But XXXX that. The been to overall expect of we've and be year, so build, completing terms been the very significantly. we into first similar in or much had XXXX. big as be the completing these as XXXX. relatively different it operating has I remember the still actually, going facilities our would year, in have to XXXX, to They be of big of facility

Operator

Martin David from comes following Bloom with Burton. The

David Martin

evidence OXXX and what you ligands. first Would vis-a-vis there might for to IL-X receptor you you ligand or positioned And second other IL that respond them about they patients receptor the antibodies? line line? it anti-OXXX I'm Back antibodies? relative the that with for OXXXs XXX, failed compete to to wondering if is expect

Carl L. Hansen

question. Great

is indication. to working There's are dermatitis, of antibodies, X And OXXX/OXXX is up. lot ligand really, mind, one. say that the that of now a IL-XX important driving to I the I'll mechanisms the in first, Dupixent my So big specify think there's interest JAKs. and it's atopic then coming Obviously, the which

and not for working Our Dupixent discontinue. that is are it or there's is that fraction view non-responders substantial great drug, of a patients everyone, but is that a

and that's it medical for and penetration not I a to biologics have dermatitis. for everyone, atopic think doesn't a unmet need I'd that. XX%. roughly But obviously, there's yet large check work in huge

we that, second an over enter think -- it would the line, the would on think mechanism line real time, have particularly take durability. the based we that people probably first OXXX in that behind Dupixent. as So ligand potential And OXXX/OXXX could start recognize to to advantage,

X we a Dupixent would have a testing molecule month months, X Sanofi and and months, being both perhaps now even So X-week more. that administration at believe get least X we and right

in respond that could question pretty versus response similar have dupi. therapy rates a product that, catch -- it think and in was that on for that's shown anecdotally would competitive really your lend ligand. would biology, proposition credence to an patients this clinic. that in or think the orthogonal remains would was, other a roc you But that to OXXX/OXXX that of has be we ] that do to So that [ clinic. think part patients is we idea but that post on that IL-XX been Dupixent, the on don't that really the the some Based space. And so I is be yet tested I fail the good differently bet, think patients heard

Operator

[Operator following Brendan Instructions] from The Smith comes TD with Securities.

Brendan Smith

example. autoimmunity CBD, understand oncology a T cell more partnership but just I Maybe the little with a space me, can bit broadly excuse more mean, at there what platform actually -- would has like? and maybe the looking us, I one the just kind remind T timing zooming ideal you All right. how little Great. cell bit. look just still I evolved and is on mean, TCE out just an of

direction maybe for concretely year understand bit that your based how to more or the the data you're next seeing and what vertical how evolve about that trying on kind of a in you're could over Just thinking so?

Carl L. Hansen

That's interesting Sure. question. an

sort and it's TCEs. that in rise certainly their sort say modalities see right and of I'd excitement of that fall attention now a First, of about and that groundswell there's wane enthusiasm. and typical ebb We

in that seeing conversations. You're

You're that of seeing deals that clinical some recently. the some and the announced data have been of also in

work the have put with these view we're the are commitment out really by experience place patients. if do that do in lot and make in to some now that for going make still that tools the part that get to and drugs that start interest create we needed some have TCEs. What be to think but out figure best to what doing in need they testing to address we how we right played companies have. the that's or through effective our I to are safe collaborations that to of, believe not So That's put to science internally, is is these those of clinical the also to going together be potential to people of and really therapies space have and therapies a believe

partnership, validation get and to we're an some upfront, use are year. a we're make terms in in understand we'd that internally story some drugs story out part several what's the for that that to going it quarter is is in of shows seeing course, perspective that But to going of think or cancer are to about with work honestly, play actually enthusiastic, cash participate a new help to in first to this play This we tools going patients. And of something both these to the working is that teams well science a important with and how and not brings to the most us that So we what from best love my to positioned deal. thing out cancer a over is for But and years. excited therapy. be important is work believe over externally deep I

Operator

The next with Souda Partners. question Leerink comes from Puneet

Puneet Souda

an -- and wondering into question to wanted update And first today then on just GMP the So pipeline facility? maybe as stacks a I capacity if a provide that? you on us if that's on see follow-up. one any and the how BIOSECURE. And can people broader first looking the have I seeing question a whatnot. result you're U.S. Curious are inbounds, of I'm BIOSECURE. for and just Maybe

Andrew Booth

first the take Carl. and I'll it that of part off Puneet, to hand then

first started you'll with in bring XXXX. facility the late molecules about So like we XXXX, that and early X through -- plan years in on project, remember ago, this to our

are has we XXXX the in the to last well. big years to now late extremely through. I'd our team believing be facility. -- been So be bringing it's get number that the doing molecules A of a over and build big first it's project going been we'll the lift say

bringing As not then And runs that we XXXX. And you'll remember, bit that from hand we're it's not molecules far that. next and off Carl a maybe in in headquarters. XXX excited to to greenfield talk be our facility. XXX more about here, manufactured engineering be site our little pretty and would a And first through used the there to molecules, I'll just

Carl L. Hansen

Sure.

forward. as that several So those a prepared are I or we number close a There's development candidate. preclinical in we broad to getting are that now moving of those have, pretty mentioned of my remarks, substantial pipeline

co-development science months programs have on programs are the done. and to And where internal valuable how problem through we'll so, the wholly clarity work things likely first portfolio course, in next of owned be or months, through risk first year. few is expect of couple the either the go are through based don't be ones or to and any molecules, We those the advancing, which over there's always having until the on on a facility. And AbCellera is from there'll of to

what exactly, working capabilities particularly capability, geopolitically be the to like this I Act. of given it is sure looking control going first headwinds to making with expect we've about The demonstrating we're got well BIOSECURE is positioned year that currently be that, as to should. After facility going the everything and that

speed will clinic. reduce from through manufacturing molecules believe time, that and we your the cost So builds, over in honestly, major also moving that as be time, concept advantage own provide over a will this controlling capability

Puneet Souda

activity within My it. and on the is levels levels question sort priority second AbCellera. of Got

You have number a internal of programs.

manufacturing about as the sort efforts sites. you the programs, the more of go TCE You ongoing XXXX? you on talked moving program, term, XXX, priorities forward, the and for us near-term facility maybe you can XXX, XXX -- Carl, into are pipeline of what Can sort you have prioritize medium

Carl L. Hansen

Sure.

as mentioned I fully we unique next question, have Steve's generate to quite response our a in few a to in assets. can at for antibody we is turn So situation the we're into have, platform And that going a the company pipeline. that years built high-quality a way a stage, the capital clinical that over

a So company back It's first we simple. our the that we priorities that up that the priority so in allocation capital we're -- making in really the then a that to find big are portfolio, is sure with make second sure in make decisions And third winner. And good differentiated control that continue our we and to that so of we position. stay Andrew is make liquidity priority, portfolio that operations future. keep to assets. And of on focused work the exciting have as we sure terrific efficiency our on mentioned,

make lots that the have we to and of sure intend takes stays We do it what case. to runway,

Operator

this remarks. no will Hansen turn it showing Carl for I'm over I you. Thank questions further at to back now closing time.

Carl L. Hansen

evening, future. we for in joining today. the everyone, providing we'll your the talk forward and soon. and We look you, updates Thank Enjoy your to time, appreciate more call

Operator

This today's for you conference your participation. Thank concludes call.

You lines. may now disconnect your

AbCellera Biologics (ABCL) 4 Nov 242024 Q3 Earnings call transcript