Full Press Release Details
AbCellera Reports Full Year 2020 Business Results
VANCOUVER, British Columbia - March 29, 2021 - AbCellera (NASDAQ: ABCL), a technology company with a centralized operating system for next-generation antibody discovery, today announced financial results for the full year 2020 with the following highlights.
"AbCellera had a breakthrough year, demonstrating strong growth across every area of the business and the effectiveness of our technology and business model through our discovery of the first monoclonal antibody therapy for COVID-19," said Carl Hansen, Ph.D., President and CEO of AbCellera. "Each program improves our platform, and we continue to invest in new technologies that enhance and expand our capabilities to discover high-quality, potent antibodies for our partners. With our strong cash position, profitability, and cash generation, we are aggressively executing on building our centralized operating system to help bring new antibody therapies to patients faster and more efficiently."
2020 Business Highlights
Key Business Metrics2
As of December 31, 2020, AbCellera had 103 discovery programs (up 72% from 60 in 2019) that are either completed, in progress or under contract with 27 partners (up from 22 in 2019). AbCellera has started discovery on a cumulative total of 52 of these programs (up from 43 in 2019).
Bamlanivimab, being developed by partner Eli Lilly and Company (Lilly), is the first antibody discovered by AbCellera to have reached the clinic and commercial markets. Bamlanivimab is the first monoclonal antibody therapy for COVID-19 in the world to reach human testing and to be authorized for emergency use.
| Year Ended December 31, | Change | |||||||||||
| Metric | 2019 | 2020 | % | |||||||||
| Number of discovery partners | 22 | 27 | 23 | % | ||||||||
| Programs under contract, cumulative | 60 | 103 | 72 | % | ||||||||
| Program starts, cumulative | 43 | 52 | 21 | % | ||||||||
| Programs in the clinic | - | 1 | N/M |
Discussion of 2020 Financial Results
| Year Ended December 31, | Change | |||||||||||||||
| 2019 | 2020 | Amount | % | |||||||||||||
| (in thousands, except percentages) | ||||||||||||||||
| Revenue | ||||||||||||||||
| Research fees | $ | 11,612 | $ | 19,848 | $ | 8,236 | 71 | % | ||||||||
| Milestone payments | - | 15,000 | 15,000 | N/A | ||||||||||||
| Royalty revenue | - | 198,307 | 198,307 | N/A | ||||||||||||
| Total revenue | $ | 11,612 | $ | 233,155 | $ | 221,543 | 1908 | % |
Conference Call and Webcast
AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Daylight Time (5:00 p.m. Eastern Daylight Time).
The live webcast of the earnings conference call can be accessed on the Events and Presentations section of AbCellera's Investor Relations website at https://investors.abcellera.com. A replay of the webcast will be available through the same link following the conference call.
About AbCellera Biologics Inc.
AbCellera is a technology company that searches, decodes, and analyzes natural immune systems to find antibodies that its partners can develop into drugs to prevent and treat disease. AbCellera partners with drug developers of all sizes, from large pharmaceutical to small biotechnology companies, empowering them to move quickly, reduce costs, and tackle the toughest problems in drug development. To learn more, please visit us at www.abcellera.com.
Definition of Key Business Metrics
We regularly review the following key business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make
strategic decisions. We believe that the following metrics are important to understand our current business. These metrics may change or may be substituted for additional or different metrics as our business develops. For example, as our business matures and to the extent programs are discontinued, we anticipate updating these metrics to reflect such changes.
Number of discovery partners represents the unique number of partners with whom we have executed partnership contracts. We view this metric as an indication of the competitiveness of our technology stack and our current level of market penetration. The metric also relates to our opportunities to secure programs under contract.
Programs under contract represent the number of antibody development programs that are under contract for delivery of discovery research activities. A program under contract is counted when a contract is executed with a partner under which we commit to discover antibodies against one selected target. A target is any relevant antigen for which a partner seeks our support in developing binding antibodies. We view this metric as an indication of commercial success and technological competitiveness. It further relates to revenue from technology access fees. The cumulative number of programs under contract with downstream participation is related to our ability to generate future revenue from milestone payments and royalties.
Program starts represent the number of unique programs under contract for which we have commenced the discovery effort. The discovery effort commences on the later of (i) the day on which we receive sufficient reagents to start discovery of antibodies against a target and (ii) the day on which the kick-off meeting for the program is held. We view this metric as an indication of our operational capacity to execute on programs under contract. It is also an indication of the selection and initiation of discovery projects by our partners and the resulting near-term potential to earn research fees. Cumulatively, program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties in the mid- to long-term.
Programs in the clinic represent the count of unique programs for which an Investigational New Drug, or IND, New Animal Drug or Pre-Market Approval, or PMA, application, or equivalents under other regulatory regimes, has been filed based on an antibody that was discovered by us. Where the date of such application is not known to us, the date of the first public announcement of clinical trials will be used instead for the purpose of this metric. We view this metric as an indication of our near- and mid-term potential revenue from milestone fees and potential royalty payments in the long term.
AbCellera Forward-looking Statements
This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts, and other matters regarding our
business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
Source: AbCellera Biologics Inc.
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1(236)521-6774
Business Development: Kevin Heyries, Ph.D.; bd@abcellera.com, +1(604)559-9005
Investor Relations: Melanie Solomon; ir@abcellera.com, +1(778)729-9116
AbCellera Biologics Inc.
Condensed Consolidated Statement of Operations
(Expressed in thousands of U.S. dollars except share and per share data)
| 2019 | 2020 | ||||||||
| Revenue | |||||||||
| Research fees | $ | 11,612 | $ | 19,848 | |||||
| Milestone payments | - | 15,000 | |||||||
| Royalty revenue | - | 198,307 | |||||||
| Total revenue | 11,612 | 233,155 | |||||||
| Operating expenses | |||||||||
| Royalty fees | - | 27,143 | |||||||
| Research and development 3 | 10,113 | 29,393 | |||||||
| Sales and marketing 3 | 1,263 | 3,842 | |||||||
| General and administrative 3 | 2,749 | 11,910 | |||||||
| Depreciation and amortization | 1,604 | 4,836 | |||||||
| Total operating expenses | 15,729 | 77,124 | |||||||
| Income (loss) from operations | (4,117 | ) | 156,031 | ||||||
| Other (income) expense | |||||||||
| Interest income | (155 | ) | (293 | ) | |||||
| Interest and other expense | 209 | 6,511 | |||||||
| Foreign exchange (gain) loss | (186 | ) | 300 | ||||||
| Grants and incentives | (1,774 | ) | (8,320 | ) | |||||
| Total other (income) expense | (1,906 | ) | (1,802 | ) | |||||
| Net earnings (loss) before income tax | (2,211 | ) | 157,833 | ||||||
| Provision for income tax | - | 38,915 | |||||||
| Net earnings (loss) and comprehensive income (loss) for the period | $ | (2,211 | ) | $ | 118,918 | ||||
| Net earnings (loss) per share to common shareholders | |||||||||
| Basic | $ | (0.01 | ) | $ | 0.53 | ||||
| Diluted | $ | (0.01 | ) | $ | 0.45 | ||||
| Weighted-average common shares outstanding | |||||||||
| Basic | 151,327,560 | 159,195,023 | |||||||
| Diluted | 151,327,560 | 263,129,765 |
AbCellera Biologics Inc.
Condensed Consolidated Balance Sheet
(Expressed in thousands of U.S. dollars except share data)
| December 31, 2019 | December 31, 2020 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,553 | $ | 594,116 | ||||
| Accounts receivable | 2,124 | 903 | ||||||
| Accrued accounts receivable | 1,152 | 212,336 | ||||||
| Other current assets | 1,811 | 5,970 | ||||||
| Total current assets | 12,640 | 813,325 | ||||||
| Long term assets | ||||||||
| Property and equipment, net | 8,480 | 17,923 | ||||||
| Intangible assets | - | 115,153 | ||||||
| Goodwill | - | 31,500 | ||||||
| Equity investee | - | 19,247 | ||||||
| Other long-term assets | 585 | 8,388 | ||||||
| Loans to related parties | 1,783 | - | ||||||
| Total long-term assets | 10,848 | 192,211 | ||||||
| Total assets | $ | 23,488 | $ | 1,005,536 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 2,579 | $ | 20,005 | ||||
| Current portion of contingent consideration payable | - | 13,411 | ||||||
| Income taxes payable | - | 36,152 | ||||||
| Accrued royalties payable | - | 27,143 | ||||||
| Deferred revenue | 3,236 | 6,589 | ||||||
| Current portion of long-term debt | 2,080 | 190 | ||||||
| Total current liabilities | 7,895 | 103,490 | ||||||
| Long-term liabilities | ||||||||
| Operating lease liability | 2,642 | 3,715 | ||||||
| Long-term debt | 1,363 | 2,198 | ||||||
| Deferred revenue and grant funding | 1,336 | 25,894 | ||||||
| Contingent consideration payable | - | 9,148 | ||||||
| Deferred tax liability | - | 26,161 | ||||||
| Other long-term liabilities | - | 4,422 | ||||||
| Total long-term liabilities | 5,341 | 71,538 | ||||||
| Total liabilities | $ | 13,236 | $ | 175,028 | ||||
| Shareholders' equity | ||||||||
| Common shares: no par value, unlimited authorized shares at December 31, 2019 and 2020: 151,681,382 and 269,497,768 shares issued and outstanding at December 31, 2019 and 2020 respectively | 5,122 | 710,387 | ||||||
| Convertible preferred shares unlimited authorized shares at December 31, 2019 and 2020: 2,105,264 and nil issued and outstanding at December 31, 2019 and 2020 respectively | 7,546 | - | ||||||
| Additional paid-in capital | 2,300 | 5,919 | ||||||
| Accumulated earnings (deficit) | (4,716 | ) | 114,202 | |||||
| Total shareholders' equity | 10,252 | 830,508 | ||||||
| Total liabilities and shareholders' equity | $ | 23,488 | $ | 1,005,536 |
AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars)
| 2019 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (2,211 | ) | $ | 118,918 | |||
| Cash flows from operating activities | ||||||||
| Depreciation of property and equipment | 1,604 | 2,317 | ||||||
| Amortization of intangible assets | - | 2,519 | ||||||
| Amortization of operating lease right-of-use-assets | 243 | 435 | ||||||
| Stock-based compensation | 890 | 8,397 | ||||||
| Extinguishment of long-term debt | - | 3,700 | ||||||
| Accretion and other | 194 | 830 | ||||||
| Deferred tax expense | - | 2,098 | ||||||
| Unrealized foreign exchange gains and losses | - | 177 | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts and accrued research fees receivable | (1,803 | ) | (5,467 | ) | ||||
| Accrued royalties receivable | - | (197,553 | ) | |||||
| Investment tax credit receivable | 1,593 | - | ||||||
| Income taxes payable | - | 36,412 | ||||||
| Accounts payable and accrued liabilities | 150 | 6,601 | ||||||
| Operating lease liabilities | 2,784 | (350 | ) | |||||
| Deferred revenue | (6 | ) | 21,810 | |||||
| Accrued royalties payable | - | 27,143 | ||||||
| Other operating assets and liabilities | (744 | ) | (5,297 | ) | ||||
| Net cash provided by operating activities | 2,694 | 22,690 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (3,997 | ) | (9,673 | ) | ||||
| Purchase of intangible assets | - | (5,000 | ) | |||||
| Repayment (issuance) of related party loans | (1,783 | ) | 1,783 | |||||
| Acquisition of Trianni | - | (87,643 | ) | |||||
| Investment in equity investees | - | (19,247 | ) | |||||
| Net cash used in investing activities | (5,780 | ) | (119,780 | ) | ||||
| Cash flows from financing activities | ||||||||
| Repayment of long-term debt | (399 | ) | (19,942 | ) | ||||
| Proceeds from long-term debt | 193 | 15,490 | ||||||
| Proceeds from convertible debentures | - | 89,990 | ||||||
| Short-term borrowings | 387 | (387 | ) | |||||
| Issuance of common shares pursuant to exercise of stock options | 25 | 1,000 | ||||||
| Net proceeds from issuance of common shares | - | 522,840 | ||||||
| Proceeds from issuance of preferred shares - series A1 financing | (11 | ) | - | |||||
| Proceeds from issuance of preferred shares - series A2 financing | - | 74,662 | ||||||
| Net cash provided by financing activities | $ | 195 | $ | 683,653 | ||||
| Increase (decrease) in cash and cash equivalents | (2,891 | ) | 586,563 | |||||
| Cash and cash equivalents, beginning of year | 10,444 | 7,553 | ||||||
| Cash and cash equivalents, end of year | $ | 7,553 | $ | 594,116 |