On March 17, 2021 IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (NASDAQ: IPA) (TSX VENTURE: IPA) a leader in full-service, therapeutic antibody discovery and development, reported financial results for the third quarter of its 2021 fiscal year ended January 31, 2020 (Press release, ImmunoPrecise Antibodies, MAR 17, 2021, View Source [SID1234576808]).

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!

Q3 Fiscal 2021 Financial Highlights:

• Increased revenue for the nine months ended January 31st, 2021 by 32% to $13,035,522.
• Record adjusted EBITDA for the nine months ended January 31st, 2021 of $2,564,257, a significant increase from the $18,356 for the nine months ended January 31, 2020.
• Closed USD$21.7 million bought deal offering of common shares.
• Closed over-allotment option associated with the previously completed bought deal of USD$3.3 Million.

Dr. Jennifer Bath, CEO of ImmunoPrecise, stated, "We are pleased to enter into a new period of the Company’s corporate development lifecycle. Following our successful uplisting to the Nasdaq stock exchange, we continue to be well capitalized to meet our goals to extend our position as a single source partner of choice, antibody discovery engine to our partners. The recent partnerships that we have established with Genmab and Litevax highlight ImmunoPrecise’s technology stack as a biologics discovery platform. Additionally, through our Talem Therapeutics platform, we are creating deep opportunities to meet our goal to deliver shareholder value by monetizing our platform technology’s discovery engine."

Financial Results

Revenue: The Company continued to emphasize the value of technologically advanced discovery programs utilizing diverse animal repertoires and multiple technologies with unique advantages, while continuing to take on a larger volume of contracts in general. As a result, revenues of $4,516,000 were achieved for the three months ended January 31, 2021 compared to revenues of $4,034,440 in 2020, a 12% increase, and revenues of $13,035,522 were achieved during the nine months ended January 31, 2021 compared to revenues of $9,912,904 in 2020, a 32% increase in revenue for the period. During the three months ended January 31, 2021 the Company sold an internally developed therapeutic antibody asset for $1,188,762.

Gross Profit: The Company’s gross profit for the three months ended January 31, 2021 was $3,562,153 (79% gross profit margin) compared to gross profit of $2,223,669 (55% gross profit margin) in 2020. For the nine months ended January 31, 2021 gross profit was $8,761,148 (67% gross profit margin) compared to gross profit of $6,090,090 (61% gross profit margin) in 2020. The increase in gross profit was, in part, a result of the sale of an internally developed therapeutic antibody asset that was expensed as research and development in prior periods, and the elimination of intercompany cost of sales from the first six months of fiscal 2021. Excluding those one-time transactions, gross profit margins would have been 68% and 55% for the three-month periods ended January 31st, 2021 and 2020. For the nine-month periods, gross profit margins would have been 64% and 61% excluding the one-time transactions, which is in line with management expectations.

Research and Development: The Company has been expanding its commitment to research and development initiatives aimed at introducing new technological capabilities through both internal development as well as through partnerships. The Company has also undertaken research and development projects related to COVID-19 and has been awarded government grants and subsidies to support those efforts. During the nine months ended January 31, 2021, the Company invested $1,358,529 in research and development. The Company recorded $2,276,239 in grant income and subsidies through January 31, 2021.

Non-IFRS Measures. *Adjusted EBITDA for the three months ended January 31, 2021 was $836,382, compared to $717,716 for the three months ended January 31, 2020. This increase is related to the increased gross profit offset by the costs associated with the Company’s uplist to Nasdaq. Adjusted EBITDA for the nine months ending January 31, 2021 was $2,564,257, a significant increase from the $18,356 for the nine months ending January 31, 2020. This improvement is the result of the increase in revenue, higher gross profit and grant and subsidy income compared to the prior period offset by Nasdaq costs.

Cash Position. As of January 31, 2021, the Company had cash on hand of $15,720,057 compared to $2,605,706 as of April 30, 2020, a result of exercised warrants and exercised stock options. The Company’s forecast indicates the cash on hand will sustain its existing operations, support its Nasdaq uplist costs and satisfy its obligations through at least 2022.

About IPA’s PolyTope Platform.
IPA’s SARS-CoV-2 PolyTope monoclonal therapies currently in preclinical development are designed to protect against mutagenic escape with an emphasis on efficacy for every patient, variant, and strain of SARS-CoV-2. They are created with the goal of sustainable efficacy in the face of an evolving virus, combining extensively characterized, potently neutralizing, synergistic antibodies exhibiting richly diverse epitope coverage.