On May 4, 2023 AbCellera (Nasdaq: ABCL) reported financial results for the first quarter of 2023 (Press release, AbCellera, MAY 5, 2023, View Source [SID1234631073]). All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
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"In the first quarter we have continued to execute on our strategy of building the industry’s preferred engine for the discovery and development of antibody therapeutics. Notably, new data on our T-cell engager platform demonstrates that we can generate TCEs with superior properties on a highly accelerated timeline, and against challenging tumor targets," said Carl Hansen, Ph.D., founder and CEO of AbCellera. "As we progress further into 2023, we remain steadfast in our strategy of building best-in-world capabilities for the discovery and development of antibody therapeutics."
Q1 2023 Business Summary
Earned $12.2 million in total revenue.
Generated a net loss of $40.1 million, compared to net earnings of $168.6 million in Q1 2022.
Reached a cumulative total of 177 programs under contract with 41 different partners.
Maintained a cumulative total of 101 partnered program starts.
Reporting the advancement of one additional molecule into the clinic, bringing the cumulative total to nine molecules in the clinic.
Key Business Metrics
Cumulative Metrics
March 31, 2022
March 31, 2023
Change %
Number of discovery partners
36
41
14
%
Programs under contract
158
177
12
%
Partnered program starts
84
101
20
%
Molecules in the clinic
6
9
50
%
AbCellera added three partnered programs in Q1 2023 to reach a cumulative total of 177 programs under contract (up from 158 on March 31, 2022) that are either completed, in progress, or under contract with 41 different partners as of March 31, 2023 (up from 36 on March 31, 2022). AbCellera maintained a cumulative total of 101 partnered program starts in Q1 2023 (up from 84 on March 31, 2022). AbCellera’s partners advanced an additional molecule into the clinic in Q1 2023, bringing the cumulative total of molecules in the clinic to nine (up from six on March 31, 2022).
Discussion of Q1 2023 Financial Results
Revenue – Total revenue was $12.2 million, compared to $316.6 million in Q1 2022. The partnership business generated research fees of $10.6 million, compared to $9.3 million in Q1 2022. Milestone payments were $1.3 million and licensing revenue was $0.4 million.
Research & Development (R&D) Expenses – R&D expenses were $52.6 million, compared to $26.4 million in Q1 2022, reflecting continuing investments in the capacity and capabilities of AbCellera’s engine for antibody discovery and development, and in co-development programs.
Sales & Marketing (S&M) Expenses – S&M expenses were $3.8 million, compared to $2.4 million in Q1 2022. The increase reflects continued investments in business development.
General & Administrative (G&A) Expenses – G&A expenses were $15.1 million, compared to $14.3 million in Q1 2022, with the increase driven by investments to support the growth of the company.
Net Loss – Net loss of $40.1 million, or $(0.14) per share on a basic and diluted basis, compared to net earnings of $168.6 million, or $0.59 per share on a basic and $0.54 on a diluted basis in Q1 2022.
Liquidity – $821.5 million of total cash, cash equivalents, and marketable securities.
Conference Call and Webcast
AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
The live webcast of the earnings conference call can be accessed on the Events and Presentations section of AbCellera’s Investor Relations website. A replay of the webcast will be available through the same link following the conference call.