On September 14, 2022 IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the "Company" or "IPA") (NASDAQ: IPA) (TSXV: IPA), an advanced biotherapeutic research and technology company, reported financial results for first quarter fiscal year 2023, which ended July 31, 2022 (Press release, ImmunoPrecise Antibodies, SEP 14, 2022, View Source [SID1234619547]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
"Our biggest surprise this quarter was how rapidly our iterative-feedback AI software platform for antibody discovery advanced toward commercialization," stated Dr. Jennifer Bath, IPA’s Chief Executive Officer. "We are clearly excited about the potential of our most recent acquisition, BioStrand, and look forward to working together to leverage their elegant software and iterative AI platform with IPA’s clinically validated wet lab technologies, to realize the full potential of our capabilities to deliver the next generation of cancer and immunology therapies to modernize all aspects of antibody discovery and development," Dr. Bath continued, "We aim to transform how we discover and develop novel therapeutics as we continue to shorten drug discovery timelines and to design safer, more targeted therapies for patients."
First Quarter Fiscal Year 2023 Financial Summary*
The Company’s total revenue of $4.7 million was an increase of $0.1 million or 2.2% as compared to total revenue of $4.6 million from the same period last year.
The Company, primarily through its subsidiary Talem Therapeutics LLC, invested $5.8 million in strategic research and development costs as compared to an investment of $1.1 million in the same period last year.
The Company recorded a net loss of $9.4 million, as compared to net loss of $3.2 million during the same period last year.
As of July 31, 2022, the Company held cash of $19.2 million.
*Expressed in Canadian dollars, unless otherwise indicated.
Financial Results
Revenue
The Company achieved revenue of $4.7 million during the three months ended July 31, 2022, a 2.2% increase from the three months ended July 31, 2021. Growth was primarily driven by increases in protein manufacturing and cryostorage services. Revenue during the three months ended July 31, 2022, was impacted by the weakening of the euro due to the effect of foreign currency translations. On a consolidated basis, total revenue was negatively impacted by $0.3 million as compared to the three months ended July 31, 2021.
Research & Development
R&D increased to $5.8 million from $1.1 million during the three months ended July 31, 2021, primarily due to strategic investment in the Company’s SARS-CoV-2 PolyTope antibody combination therapy. A total of $5.2 million in costs were incurred for GMP manufacturing of the therapy.
Net Loss
The Company recorded a net loss of $9.4 million during the three months ended July 31, 2022, compared to a net loss of $3.2 million for the three months ended July 31, 2021. The increased net loss is primarily due to the Company’s investment in R&D related to the SARS CoV-2 PolyTope cocktail, increased salaries and benefits to support the Company’s strategic plans, increased amortization from intangible assets recorded in connection with the BioStrand acquisition, and increased consulting fees.
Liquidity and Capital Resources
As of July 31, 2022, the Company held cash of $19.2 million as compared to $30.0 million as of April 30, 2022, and had working capital of $21.7 million. The Company’s internal forecast indicates the cash on hand will sustain its existing operations for at least 12 months.
On October 13, 2021, an at-the-market ("ATM") equity offering facility was entered into with H.C. Wainwright & Co., LLC as sole sales agent ("Agent"). The Company will be entitled, at its discretion and from time-to-time during the term of the ATM agreement, to sell through the Agent common shares of the Company having an aggregate gross sales price of up to US $50 million. As of September 14, 2022, US $50 million of the Company’s stock remained available for sale under the ATM facility.
The conference call will be webcast live and available for replay via a link provided in the Events section of the company’s IR pages at View Source
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization.
Anyone listening to the call is encouraged to read the company’s periodic reports on file with the Toronto Stock Exchange and Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.