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AbCellera Biologics Inc. (ABCL)·Q4 2024 Earnings Summary

Executive Summary

  • AbCellera delivered a small Q4 revenue quarter ($5.1M) with a narrower loss vs Q3 as spending moderated; FY24 revenue was $28.8M and net loss was $162.9M as the company transitioned toward internal clinical programs .
  • Liquidity remains a key strength: ~$653M in cash, cash equivalents, and marketable securities plus ~$186–$190M in committed non‑dilutive government funding, or ~$840M total available liquidity to fund pipeline and manufacturing scale‑up .
  • Two lead programs (ABCL635 in metabolic/endocrine; ABCL575, an OX40L antagonist) remain on track for CTA submissions in Q2 2025 with initial Phase 1 readouts anticipated in 2026; manufacturing facility expected online by end of 2025 .
  • Estimate comparisons: S&P Global quarterly consensus (revenue/EPS) could not be retrieved due to a request limit; as a result, beat/miss analysis vs consensus is unavailable this quarter (see Estimates Context).

What Went Well and What Went Wrong

  • What Went Well

    • Maintained strong balance sheet: ~$653M cash/securities at YE plus $186–$190M in committed government funding ($840M total liquidity) to fund clinical transition and CMC/GMP build‑out .
    • Clear clinical path and timelines: CTAs for ABCL635 and ABCL575 in Q2 2025; first safety/PK and early efficacy readouts in 2026; manufacturing capability targeted to come online by end of 2025 .
    • Management conviction in pipeline positioning: “We closed the year with over $800 million in available liquidity… enter 2025 on track to initiate Phase 1 clinical trials for our first two programs” (Carl Hansen, CEO) . On ABCL575: differentiation thesis includes potency, high-concentration formulation, and YTE half‑life extension enabling less frequent dosing .

  • What Went Wrong

    • Top‑line softness persisted: FY24 revenue fell to $28.8M (from $38.0M in 2023) as discovery partnerships were deemphasized; Q4 revenue was $5.1M (vs $9.2M in Q4’23) .
    • Losses remain meaningful during transition: FY24 net loss of $162.9M (vs $146.4M in 2023); Q4 net loss of $34.2M (vs $47.2M in Q4’23) despite ongoing platform and IP defense spending .
    • Competitive considerations for OX40L: management acknowledges a “competitive space” with late‑stage peers (amlitelimab, rocatilimab), and ABCL575 differentiation characterized as “modest” pending broader class data .

Financial Results

  • Quarterly P&L and liquidity vs prior periods and YoY
MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($M)$9.2 $7.3 $6.5 $5.1
Net Loss ($M)$(47.2) $(36.9) $(51.1) $(34.2)
EPS (Basic & Diluted)$(0.16) $(0.13) $(0.17) $(0.12)
Operating Expenses ($M)$75.2 n/an/a$77.8
Cash, Cash Equivalents & Marketable Securities ($M, end of period)$787.9 incl. restricted cash $697.6 $670.4 $652.9
  • Margins (computed from reported revenue and net income)
MetricQ4 2023Q2 2024Q3 2024Q4 2024
Net Income Margin %(−512.9)% (calc from )(−503.9)% (calc from )(−786.2)% (calc from )(−670.6)% (calc from )
  • FY context (from press release and 8‑K financials)
MetricFY 2023FY 2024
Total Revenue ($M)$38.0 $28.8
Net Income (Loss) ($M)$(146.4) $(162.9)
EPS (Basic/Diluted)$(0.51) $(0.55)
R&D Expense ($M)$175.7 $167.3
G&A Expense ($M)$61.0 $72.7
S&M Expense ($M)$14.2 $12.8
Cash, Cash Equivalents & Marketable Securities (YE, $M)$760.6 $625.6 (balance sheet subtotal)
  • KPIs
KPI (Cumulative)Q4 2023Q2 2024Q3 2024Q4 2024
Partner‑initiated program starts with downstreams87 93 95 96
Molecules in the clinic13 14 14 16
  • Segment breakdown: Not applicable; AbCellera does not report operating segments in these releases .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
CTA submissions (ABCL635, ABCL575)2025CTAs targeted for Q2 2025 (Q2/Q3’24 commentary) CTAs anticipated in Q2 2025; Phase 1 starts to follow Maintained
First clinical readouts (safety/PK; ABCL635, ABCL575)2026Not previously specifiedFirst 2 clinical data readouts in 2026 New/Initiated
Manufacturing facility online2025Facility scheduled to come online end of 2025 (prior framing) Manufacturing capabilities targeted to come online in 2025; end‑2025 reiterated Maintained
Operating cash usage2025Not specifiedOperating cash usage expected similar to 2024 New
PP&E (Capex)2025Ongoing CMC/GMP investments (no target) PP&E investments ~50% of 2024, weighted to 1H25 Lower
Liquidity runwayMulti‑year~>$800M available liquidity (prior) ~$840M available liquidity to fund >3 years of pipeline ramp Maintained/Updated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Internal pipeline transitionQ2: CTAs targeted Q2’25 for ABCL635/575 ; Q3: continued build toward 2025 clinical activities CTAs in Q2’25; readouts in 2026; portfolio prioritization framework detailed Steady execution; increased clarity on timelines
T‑cell engager (TCE) platformQ2: disclosed TCE programs (PSMA, B7‑H4, CD19) ; Q3: expanded Lilly collab First significant TCE partnership with AbbVie; positive sector momentum and solid tumor traction Positive; BD validation and technical data shared
Liquidity and fundingQ2/Q3: $698M/$670M cash & securities; >$875–$900M total liquidity with government funding ~$653M cash/securities + $186–$190M government funds ($840M total) Strong, modestly lower cash as investments continue
R&D spend and opex mixQ2/Q3: R&D up vs prior year; G&A elevated FY24 R&D $167.3M (down vs 2023), G&A $72.7M (up due to IP defense) R&D tapering; G&A elevated
Tariffs/macroNo prior discussion notedCanadian retaliatory tariffs expected to be exempt for biomanufacturing inputs; no material impact expected Neutral
IP/legalNot highlightedG&A increase “largely driven by expenses related to the defense of our intellectual property” Pressure on G&A from IP defense

Management Commentary

  • Strategy and capital: “We closed the year with over $800 million in available liquidity to execute on our strategy… enter 2025 on track to initiate Phase 1 clinical trials for our first two programs, ABCL635 and ABCL575, and to start activities in our new clinical manufacturing facility.” — Carl Hansen, CEO .
  • ABCL635 thesis: “Target… validated… with small molecules… potential to be a first‑in‑class antibody therapy… once‑monthly subcutaneous injection will be preferred by patients… total addressable market of at least $2 billion.” — Carl Hansen .
  • ABCL575 and class dynamics: “Following amlitelimab… Phase II… demonstrated efficacy comparable to Dupixent… with a clean safety profile and longer duration… ABCL575 designed with high potency, high‑concentration formulation, and YTE half‑life… differentiation… modest… in a competitive space.” — Carl Hansen .
  • 2025 priorities: “Initiate Phase I for ABCL635/575; nominate additional development candidates; complete platform investments by end of Q2; start activities in new clinical manufacturing facility.” — Carl Hansen .

Q&A Highlights

  • Building clinical capabilities across indications: Management is hiring “heavy on the back end… development and clinical development,” scaling expertise aligned to program needs .
  • TCE partnering and competition: AbbVie collaboration covers a “small number of targets” with “promising scientific directions”; company views its toolkit as among the best; Chinese competitive dynamics monitored but ABCL’s focus on highly differentiated first‑in‑class assets seen as robust to generic competition .
  • Tariff exposure: Canadian retaliatory tariff exemptions for biomanufacturing inputs mean no material operational or financial impact expected .
  • Portfolio monetization: Will flex between partnering early vs advancing internally based on ROI and competitive context; ABCL575 could be partnered to maximize multi‑indication development .

Estimates Context

  • S&P Global (Capital IQ) consensus for Q4 2024 revenue and EPS could not be retrieved due to a request‑limit error during this session. As a result, beat/miss vs consensus is unavailable this quarter. Please note that when citing estimates, we default to S&P Global data.

Key Takeaways for Investors

  • Transition to clinical stage is on schedule: dual CTAs in Q2’25 and manufacturing online by end‑2025 anchor near‑term catalysts; first readouts in 2026 .
  • Liquidity de‑risks execution: ~$840M total available liquidity provides multi‑year runway to fund clinical starts and CMC/GMP completion .
  • Commercial framing improving: ABCL635 targets a ≥$2B market with potential safety/convenience differentiation; ABCL575 operates in a large and growing AD market but faces a competitive class landscape .
  • TCE platform external validation: AbbVie collaboration and new data (SITC) support optionality for future BD and internal asset creation .
  • Top‑line near‑term remains muted by design: pivot away from discovery fees suppresses revenue while operating losses persist through the build‑out period .
  • Watch 2025 cash cadence: management expects similar operating cash usage to 2024 and ~50% lower PP&E vs 2024, weighted to 1H25 as capex winds down .
  • Potential stock catalysts: CTA filings (Q2’25), manufacturing milestones (2H’25), BD updates (TCE), and initial Phase 1 readouts in 2026.

Notes:

  • All financial figures are as reported by the company in its 8‑K/press releases and call transcript .
  • Margins shown are calculated from company‑reported revenue and net income/loss (citations provided in the table).