Will McHale's questions to ImmunoPrecise Antibodies (IPA) leadership • Q2 2025
Question
The analyst inquired about the disconnect between numerous technological advancements and flat revenue, the commercial ramp-up of BioStrand services, plans for the company's capital structure and convertible debt, the status of the Astellas collaboration, the commercial model for semiconductor partnerships, and the strategic and financial impact of divesting the European assets.
Answer
The CEO attributed flat revenue to a lagging recovery in the broader biotech service industry but noted a swift rebound from the prior quarter. BioStrand's revenue is expected to ramp as early-access users convert to paying subscribers. The company plans to use proceeds from the European asset divestiture to pay off the remaining convertible debt, improving the capital structure. The Astellas partnership is under a strict NDA. Semiconductor partnerships are envisioned as co-marketing efforts to bring combined solutions to the drug discovery market. The divestiture will transform the company into a faster-growing, higher-margin entity with a strong balance sheet, focused on the high-potential LENSai platform.