On March 14, 2024 IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the "Company" or "IPA") (NASDAQ: IPA), an artificial intelligence-driven biotherapeutic research and technology company, reported financial results for its third quarter of the 2024 fiscal year ("FY24"), which ended January 31, 2024 (Press release, ImmunoPrecise Antibodies, MAR 14, 2024, View Source [SID1234641164]).
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"ImmunoPrecise Antibodies proudly reports a fourth consecutive quarter of record revenue, demonstrating our capability to fulfill the rising needs of both new and existing clients through our comprehensive antibody discovery and development services. These services are designed to effectively reduce the risk, cost, and time associated with advancing safe and effective therapies to clinical trials. Key contributors to this revenue growth include our B Cell Select platforms and the enhanced capacity of our manufacturing facility, with additional support from our VHH antibody discovery technologies," stated Dr. Jennifer Bath, CEO of IPA.
She added "Up to this point in the fiscal year 2024, our cash burn has markedly reduced. At the end of the third quarter of fiscal year 2023, it stood at $19.4 million. Now, for the same period in fiscal year 2024, it’s down to $3.1 million. This figure does not include the funds received from our equity offering in December 2023. This reduction in cash burn is a result of both our increased revenue and strategic cost management efforts, even as we continue to invest in AI technologies to better serve our clients.
BioStrand, one of our subsidiaries, has started generating revenue from projects powered by its LENSai technology, and is making progress towards the further development and launch of its LENSai portal and SaaS platforms. Meanwhile, Talem Therapeutics is focused on leveraging its strategic partnerships to drive revenue through out-licensing opportunities, which also enhances contract research revenue and is creating new opportunities for BioStrand.
Overall, our strategy’s successful implementation has led to consistent revenue growth, lower operational costs, and strategic progress. This underscores our commitment to operational excellence and dedication to client support."
Business Highlights and Corporate Update
The strategy of IPA to provide a comprehensive range of services for antibody discovery and development is consistently yielding tangible outcomes. In the recent quarter, the Company recorded record revenues of $6.2 million and $18.1 million for the three- and nine-months ending January 31, 2024, respectively. These figures mark increases of 20.3% and 20.0% compared to the $5.2 million and $15.0 million revenues during the same periods in fiscal 2023. This is the third consecutive quarter in which we have experienced a year-over-year increase in revenue of approximately $1 million. Specifically, year-to-date IPA Canada’s laboratory revenue rose by 27%, while our Utrecht, Netherlands manufacturing facility experienced 32% growth in revenue, reinforcing our expansion strategy to meet customer needs.
BioStrand is generating fee-for-service revenue through its LENSai platform and is progressing in the development of commercial products to meet the needs of IPA’s client base of over 600 companies. During FY24 Q3, BioStrand introduced a new in silico service called epitope binning, which can be accessed by existing clients, as well as for standalone programs. This advancement is a significant step towards the upcoming rollout of the LENSai portal to all IPA clients, followed by the public launch of BioStrand’s comprehensive SaaS platform.
The Company’s decrease in R&D spending reflects the previous investments to develop the internal therapeutic Talem assets, which are now in the next phase of revenue generation, and now primarily represent BioStrand R&D. Efforts are underway to pursue out-licensing opportunities for those internally developed Talem assets. Simultaneously, the Company’s marketing partnerships are enhancing revenue in contract research and creating new opportunities in BioStrand.
The Company recently entered into a Sales Agreement for an "at the market" offering program with Clear Street, as sales agent, for the Company to offer and sell from time-to-time common shares.
Third Quarter FY24 Financial Results
Revenue: Total revenue was $6.2 million, compared to revenue of $5.2 million in fiscal year 2023 ("FY23") Q2. Project revenue generated $5.8 million, including $0.2 million of work completed by BioStrand, and compared to $4.8 million in FY23 Q3. Product sales and cryostorage revenue were $0.4 million, compared to $0.4 million in FY23 Q3.
Research & Development (R&D) Expenses: R&D expenses were $1 million, compared to $1.6 million in FY23 Q3, with the decrease reflecting reduced expenditures related to the build of the Company’s internal therapeutic Talem assets.
Sales & Marketing (S&M) Expenses: S&M expenses were $0.6 million, compared to $0.8 million in FY23 Q3.
General & Administrative (G&A) Expenses: G&A expenses were $4.2 million, compared to $4.1 million in FY23 Q3.
Net Loss: Net loss of $2.9 million, or $(0.11) per share on a basic and diluted basis, compared to a net loss of $4.7 million or $(0.19) on a basic and diluted basis in FY23 Q3.
Liquidity: Unrestricted cash totaled $6.2 million as of January 31, 2024, compared to $6 million as of October 31, 2023.
*Expressed in Canadian dollars, unless otherwise indicated.
Conference Call and Webcast Details
The Company will host a live conference call and webcast to discuss these results and provide a corporate update on Thursday, March 14, 2024, at 10:30AM ET.
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