On March 16, 2023 IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the "Company" or "IPA") (NASDAQ: IPA), an AI-driven biotherapeutic research and technology company, reported financial results for third quarter fiscal year 2023, which ended January 31, 2023 (Press release, ImmunoPrecise Antibodies, MAR 16, 2023, View Source [SID1234628969]).
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"We are thrilled to announce that this quarter has been a foundational one for our company. Our project revenue has experienced a significant increase, thanks to our recognized best-in-class platform of function-first B cell. In addition, our clients have shown a noticeable trend of moving away from transgenic animals, which may limit genetic diversity of outputs, and towards animals with diverse B cell repertoires and rapid, cost-effective next-generation humanization technologies – capabilities that IPA is again unique positioned to provide," stated Dr. Jennifer Bath, CEO of IPA.
She added, "In addition to our established success, we have ventured into the promising field of modern artificial intelligence, expanding our revenue streams, and providing the first revenue for our subsidiary, BioStrand. Our newest, unique AI-powered research collaboration may also allow us to tackle previously undruggable targets within the cellular context, and we are excited about the unparalleled value proposition that this could offer our investors.
We are equally excited about our ongoing efforts to finalize another AI-driven research collaboration for a complex oncology program with a leading global oncology therapeutics company. These strategic initiatives have been critical in driving growth, innovation, and shareholder value, and we remain confident in our ability to continue to deliver exceptional results. As a company, we are proud of our achievements, and we look forward to the continued success that these initiatives will bring."
Third Quarter Fiscal Year 2023 Financial Summary*
(All comparisons are to the period ended January 31, 2022)
IPA achieved revenue of $5.2 million during the three months ended January 31, 2023, an increase of 7.4% compared to the three months ended January 31, 2022. Project revenue increased 16.7% compared to the prior year. For the nine months ended January 31, 2023, total revenue growth of 10.9% when adjusting for the effect of currency translations.
Gross profit increased 14.6% to $3.0 million for the three months ended January 31, 2023 as compared to the same period last year.
IPA held cash of $11.4 million as of January 31, 2023.
*Expressed in Canadian dollars, unless otherwise indicated.
Financial Results
Revenue & Gross Profit
IPA achieved revenue of $5.2 million during the three months ended January 31, 2023, a 7.4% increase from the three months ended January 31, 2022. Project revenue increased 16.7% compared to the prior year, driven by growth in the Company’s B cell Select platform and protein manufacturing services. Gross profit increased 14.6% to $3.0 million from the same period last year.
Liquidity and Capital Resources
As of January 31, 2023, IPA held $11.4 million of cash, as compared to $30.0 million as of April 30, 2022, and had working capital of $12.2 million. IPA does not hold cash at Silicon Valley Bank and has not seen any impact on our business from the collapse and subsequent take-over of the bank.
PolyTope TAXT-03 antibody combination therapy
Talem, IPA’s subsidiary, has experienced unanticipated delays in the production of its anti-COVID therapeutic drug product, PolyTope, and has adjusted its milestones accordingly, having yet to receive the drug product from its CDMO partner, ChemPartner.
Talem is working closely with ChemPartner to negotiate a mutually beneficial outcome.
Due to these circumstances, the decision has been made to significantly reduce further investment in Talem’s COVID program, while still recognizing the ongoing significance of COVID-19 globally.
IPA will continue to provide updates on Talem’s progress with ChemPartner and appreciates the support and patience of its investors during these discussions.
Conference Call:
Date: Thursday, March 16, 2023
Time: 10:30 am Eastern time
Participant Info:
Conference ID: 9236374
Participant Toll-Free Dial-In Number: 1 (888) 550-5658
Participant Toll Dial-In Number: 1 (646) 960-0289
Attendee URL: View Source
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