Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AbCellera Biologics Inc (ABCL, Financial) is on track to file CTA for its first two internal pipeline programs, ABCL635 and ABCL575, by Q2 next year.
- The company has successfully completed the move to its new headquarters in Vancouver and is making steady progress on its GMP manufacturing facility, expected to be operational in 2025.
- AbCellera Biologics Inc (ABCL) has a strong liquidity position with approximately $670 million in cash and equivalents and $210 million in available government funding.
- The company expanded its partnership with Eli Lilly, focusing on co-development collaborations with co-ownership of resulting assets.
- AbCellera Biologics Inc (ABCL) is well-prepared for its first two clinical trials starting next year, with a built translational and development team.
Negative Points
- AbCellera Biologics Inc (ABCL) reported a net loss of approximately $51 million for the quarter, compared to a loss of nearly $29 million in the same quarter last year.
- Revenue for the quarter was almost $7 million, consistent with the previous year, but the company expects research fee revenue to trend lower as it focuses more on internal and co-development programs.
- R&D expenses increased to approximately $41 million, driven by ongoing program execution and platform development.
- General and administration expenses rose to approximately $19 million, primarily due to expenses related to the defense of intellectual property.
- The company incurred a non-cash impairment charge for in-process R&D of approximately $32 million, resulting from the decision to discontinue the development of next-generation transgenic mice.
Q & A Highlights
Q: Can you update us on the competitive landscape for OX40 ligand targeted therapy, particularly in light of recent data from rocatinlimab?
A: Carl Hansen, CEO, explained that rocatinlimab's recent data highlights the differences between OX40 and OX40 ligand therapies. Rocatinlimab is a depleting antibody, whereas AbCellera's 575 is non-depleting. The recent data suggests that non-depleting OX40 ligand antibodies, like 575, may have an advantage. AbCellera remains optimistic about the potential of 575 in atopic dermatitis and other indications.
Q: What extent of data can we expect at SITC for the T-cell engagers?
A: Carl Hansen, CEO, stated that they will present updated data from the T-cell engager platform, highlighting programs demonstrating desired profiles in killing and cytokine response. They will also present work on trispecific TCEs designed for better sustained T-cell killing.
Q: How many TCE programs do you think you could push forward independently without a broader partnership?
A: Carl Hansen, CEO, mentioned that AbCellera has built core capabilities to develop antibody therapies and has nearly $900 million in liquidity. They anticipate advancing two to three new development candidates per year starting next year, with sufficient funding for over three years of pipeline investments.
Q: Is there a requisite amount of clinical development work that needs to occur through Canadian trial sites due to government funding?
A: Andrew Booth, CFO, confirmed that Phase 1 trials for molecules funded by the Canadian government will be conducted in Canada. They do not anticipate issues with this requirement for current trials and can expand to other countries if necessary.
Q: Can you provide more details about ABCL635, its target market, and competitiveness?
A: Carl Hansen, CEO, stated that ABCL635 is a first-in-class antibody for endocrine or metabolic disorders targeting a multipass transmembrane protein. The addressable market is estimated to exceed $2 billion, but further details will be disclosed upon CTA approval.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
