- Total revenue of $375 million, up from $233 million in 2020,
and liquidity of over $720 million
- Total cumulative program starts of 78, with 26 new starts in
the year
- EPS of $0.56 (basic) and $0.48 (diluted) compared to $0.53
(basic) and $0.45 (diluted) per share in 2020
AbCellera (Nasdaq: ABCL), a technology company with a
centralized operating system for next-generation antibody
discovery, today announced financial results for full year 2021.
All financial information in this press release is reported in U.S.
dollars.
“In 2021 we made significant advancements in executing our
long-term strategy by growing our portfolio, deepening our platform
to unlock new modalities, and expanding our deal structures to add
new ways to capture value,” said Carl Hansen, Ph.D., CEO and
President of AbCellera. “We move into 2022 with momentum and a
strong cash position to continue to grow our business and to make
investments that will increase the speed, efficiency, and
scalability of our platform.”
2021 Business Highlights
- Earned $375 million in total revenue, including $335 million in
milestones and royalties, of which $138 million is in accounts
receivable.
- Ended the year with over $720 million in cash, equivalents, and
marketable securities.
- Generated $153 million in net earnings, up from $119 million in
2020.
- Started discovery on 26 programs, bringing the cumulative
number of program starts to 78.
- Achieved a cumulative total of 156 programs under contract with
36 partners.
- Reached a cumulative total of five molecules in the clinic
across oncology, infectious disease, animal health, and immunology,
dermatology and gastrointestinal disease.
- Acquired TetraGenetics to expand capabilities for high-value
transmembrane protein targets.
- Expanded the leadership team with the appointment of Neil
Berkley as Chief Business Officer, Neil Aubuchon as Chief
Commercial Officer, and appointed Andrew Lo, Ph.D., to the Board of
Directors.
Key Business Metrics
Year Ended December
31,
Change
Cumulative Metrics
2020
2021
%
Number of discovery partners
27
36
33
%
Programs under contract
103
156
51
%
Program starts
52
78
50
%
Programs in the clinic
1
5
400
%
AbCellera added 53 discovery programs in 2021 to reach a
cumulative total of 156 discovery programs as of December 31, 2021
(up 51% from 103 on December 31, 2020), that are either completed,
in progress, or under contract with 36 different partners (up from
27 on December 31, 2020). AbCellera started discovery on 26
programs in 2021 to reach a cumulative total of 78 program starts
(up from 52 on December 31, 2020). AbCellera’s partners advanced
four additional molecules into the clinic in 2021, bringing the
cumulative total to five.
Discussion of 2021 Financial Results
Year Ended December
31,
Change
2020
2021
Amount
%
(in thousands, except
percentages)
Revenue
Research fees
$
19,848
$
19,076
$
(772
)
(4
)%
Licensing revenue
-
20,778
20,778
N/A
Milestone payments
15,000
8,000
(7,000
)
(47
)%
Royalty revenue
198,307
327,349
129,042
65
%
Total revenue
$
233,155
$
375,203
$
142,048
61
%
- Revenue – Total revenue was $375.2 million, compared to
$233.2 million in 2020, of which $327.3 million is attributable to
royalties. The partnership business generated research fees of
$19.1 million, compared to $19.8 million in 2020. Licensing revenue
was $20.8 million.
- Research & Development (R&D) Expenses – R&D
expenses were $62.1 million, compared to $29.4 million in 2020,
reflecting continuing investments in the capacity and capabilities
of AbCellera’s discovery and development platform.
- Sales & Marketing (S&M) Expenses – S&M
expenses were $6.9 million, compared to $3.8 million in 2020.
- General & Administrative (G&A) Expenses –
G&A expenses were $41.8 million, compared to $11.9 million in
2020, with the increase driven primarily by investments to support
the growth of the company, non-cash stock-based compensation in
line with publicly listed companies, and protecting intellectual
property.
- Net Earnings – Net earnings were $153.5 million, or
$0.56 per share on a basic and $0.48 per share on a diluted basis,
compared to net earnings of $118.9 million, or $0.53 per share on a
basic and $0.45 per share on a diluted basis in 2020.
- Liquidity – $723.0 million of cash, cash equivalents,
and marketable securities.
Q4 Highlights and Financial Results
- Started nine programs.
- U.S. shipments of bamlanivimab resumed.
- Added one program under contract with a new, undisclosed
partner.
Revenue for the fourth quarter of 2021 was $139.3 million,
representing 37% of the total for 2021. $134.5 million was
generated in the quarter from royalties on net sales of
bamlanivimab and $4.7 million from research fees, representing 41%
and 25% of the respective totals for 2021.
Operating expenses totaled $57.8 million in the fourth quarter
or 34% of the total for 2021 and include $21.9 million in royalty
fees (48% of the total for the year).
Net earnings for the fourth quarter were $59.9 million, 39% of
the total for 2021, or $0.21 per share on a basic and $0.19 per
share on a diluted basis.
Conference Call and Webcast
AbCellera will host a conference call and live webcast to
discuss these results today at 2:00 p.m. Pacific Standard Time
(5:00 p.m. Eastern Standard 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.
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. For more information, please visit
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.
Molecules in the clinic represent the count of unique
molecules for which an Investigational New Drug, or IND, New Animal
Drug, or equivalent under other regulatory regimes, application has
been approved based on an antibody that was discovered either by us
or by a partner using licensed AbCellera technology. Where the date
of such application approval is not known to us, the date of the
first public announcement of a clinical trial will be used 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.
AbCellera Biologics Inc.
Condensed Consolidated Statement of
Operations
(Expressed in thousands of U.S. dollars
except share and per share data)
(Unaudited)
Year Ended December
31,
2019
2020
2021
Revenue:
Research fees
$
11,612
$
19,848
$
19,076
Licensing revenue
-
-
20,778
Milestone payments
-
15,000
8,000
Royalty revenue
-
198,307
327,349
Total revenue
11,612
233,155
375,203
Operating expenses:
Royalty fees
-
27,143
45,516
Research and development (1)
10,113
29,393
62,062
Sales and marketing(1)
1,263
3,842
6,913
General and administrative(1)
2,749
11,910
41,848
Depreciation and amortization
1,604
4,836
14,451
Total operating expenses
15,729
77,124
170,790
Income (loss) from operations
(4,117
)
156,031
204,413
Other (income) expense
Interest income
(155
)
(293
)
(3,330
)
Interest and other expense
209
6,511
5,225
Foreign exchange (gain) loss
(186
)
300
855
Grants and incentives
(1,774
)
(8,320
)
(17,486
)
Total other income
(1,906
)
(1,802
)
(14,736
)
Net earnings (loss) before income tax
(2,211
)
157,833
219,149
Income tax expense
-
38,915
65,685
Net earnings (loss)
$
(2,211
)
$
118,918
$
153,464
Foreign currency translation
adjustment
-
-
280
Comprehensive income (loss)
$
(2,211
)
$
118,918
$
153,744
Net earnings (loss) per share attributable
to common shareholders
Basic
$
(0.01
)
$
0.53
$
0.56
Diluted
$
(0.01
)
$
0.45
$
0.48
Weighted-average common shares
outstanding
Basic
151,327,560
159,195,023
275,763,745
Diluted
151,327,560
263,129,765
318,294,236
1 Exclusive of depreciation and amortization
AbCellera Biologics Inc.
Condensed Consolidated Balance Sheet
(Expressed in thousands of U.S. dollars
except share data)
(Unaudited)
December 31, 2020
December 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
594,116
$
476,142
Marketable securities
-
246,835
Total cash, cash equivalents, and
marketable securities
594,116
722,977
Accounts and accrued receivable
213,239
160,576
Restricted cash
-
25,000
Other current assets
5,970
21,247
Total current assets
813,325
929,800
Long-term assets:
Property and equipment, net
17,923
111,616
Intangible assets, net
115,153
148,392
Goodwill
31,500
47,806
Investments in and loans to equity
accounted investees
19,247
50,313
Other long-term assets
8,388
30,642
Total long-term assets
192,211
388,769
Total assets
$
1,005,536
$
1,318,569
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and other liabilities
$
20,195
$
32,017
Current portion of contingent
consideration payable
13,411
22,934
Income taxes payable
36,152
35,683
Accrued royalties payable
27,143
22,506
Deferred revenue
6,589
7,536
Total current liabilities
103,490
120,676
Long-term liabilities:
Operating lease liability
3,715
36,413
Deferred revenue and grant funding
25,894
60,758
Contingent consideration payable
9,148
35,886
Deferred tax liability
26,161
37,370
Other long-term liabilities
6,620
1,733
Total long-term liabilities
71,538
172,160
Total liabilities
175,028
292,836
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited
authorized shares at December 31, 2020 and 2021: 269,497,768 and
283,257,104 shares issued and outstanding at December 31, 2020 and
2021 respectively
710,387
722,430
Additional paid-in capital
5,919
35,357
Accumulated other comprehensive income
-
280
Accumulated earnings
114,202
267,666
Total shareholders' equity
830,508
1,025,733
Total liabilities and shareholders'
equity
$
1,005,536
$
1,318,569
AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash
Flows
(Expressed in thousands of U.S.
dollars)
(Unaudited)
December 31, 2019
December 31, 2020
December 31, 2021
Cash flows from operating
activities:
Net earnings (loss)
$
(2,211
)
$
118,918
$
153,464
Cash flows from operating activities:
Depreciation of property and equipment
1,604
2,317
4,403
Amortization of intangible assets
-
2,519
10,062
Amortization of operating lease
right-of-use assets
243
435
2,785
Stock-based compensation
890
8,397
30,646
Deferred tax expense
-
2,098
(2,018
)
Other
194
4,707
3,570
Changes in operating assets and
liabilities:
Accounts and accrued research fees
receivable
(1,803
)
(5,467
)
(37,386
)
Accrued royalties receivable
-
(197,553
)
59,864
Income taxes payable
-
36,412
(13,530
)
Accounts payable and accrued
liabilities
150
6,601
1,400
Operating lease liabilities
2,784
(350
)
(778
)
Deferred revenue
(6
)
21,810
8,624
Accrued royalties payable
-
27,143
(4,637
)
Deferred grant revenue
-
(6,763
)
30,718
Other operating assets and liabilities
849
1,466
(2,603
)
Net cash provided by operating
activities
2,694
22,690
244,584
Cash flows from investing
activities:
Purchases of property and equipment
(3,997
)
(9,673
)
(58,452
)
Purchase of intangible assets
-
(5,000
)
-
Repayment (issuance) of related party
loans
(1,783
)
1,783
-
Purchase of marketable securities
-
-
(274,710
)
Proceeds from marketable securities
-
-
27,608
Receipt of grant funding
-
-
32,621
Acquisitions, net of cash acquired
-
(87,643
)
(11,457
)
Long-term investments and other assets
-
-
(17,534
)
Investment in and loans to equity
accounted investees
-
(19,247
)
(30,323
)
Net cash used in investing activities
(5,780
)
(119,780
)
(332,247
)
Cash flows from financing
activities:
Repayment of long-term debt
(399
)
(19,942
)
(1,823
)
Proceeds from long-term debt
193
15,490
872
Proceeds from convertible debentures
-
89,990
-
Payment of contingent consideration
-
-
(2,550
)
Payment of liability for in-licensing
agreement
-
-
(5,000
)
Short-term borrowings
387
(387
)
-
Issuance of common shares pursuant to
exercise of stock options and other
25
1,000
4,615
Net proceeds from issuance of common
shares
-
522,840
-
Proceeds from issuance of preferred shares
- series A1 and A2 financing
(11
)
74,662
-
Net cash provided by (used in) financing
activities
195
683,653
(3,886
)
Effect of exchange rate changes on cash
and cash equivalents
-
-
(1,425
)
Increase (decrease) in cash and cash
equivalents
(2,891
)
586,563
(92,974
)
Cash and cash equivalents and restricted
cash, beginning of year
10,444
7,553
594,116
Cash and cash equivalents and restricted
cash, end of year
$
7,553
$
594,116
$
501,142
Supplemental disclosure of non-cash
investing and financing activities:
Property and equipment purchases in
accounts payable
35
656
5,397
Right-of-use assets obtained in exchange
for operating lease obligation
2,830
1,679
36,638
Purchase of intangible assets in exchange
for in-licensing agreement payable
-
9,060
-
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220223006447/en/
Media: Jessica Yingling, Ph.D.; media@abcellera.com, +1(236)
521-6774 Business Development: Neil Berkley; bd@abcellera.com,
+1(604) 559-9005 Investor Relations: Melanie Solomon;
ir@abcellera.com, +1(778) 729-9116
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