MindWalk Holdings - Earnings Call - Q3 2025

Transcript

Operator (participant)

Good morning, ladies and gentlemen, and thank you for joining us today for ImmunoPrecise Antibodies Q3, FY2025 earnings call. We appreciate your time and interest in IPA. Today's call will be led by our CEO, Dr. Jennifer Bath, and interim CFO, Joe Scheffler. They will provide a review of our financial performance, strategic initiatives, and key operational highlights for the quarter. Please note that a copy of today's presentation, along with our financial statements, will be available on our company's website for your reference. We encourage you to review these materials to gain a deeper understanding of our performance and strategic direction. Once again, thank you for joining us today. Before we proceed, I would like to remind everyone that today's discussion will contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties.

Actual results could differ materially from those anticipated due to various factors, including but not limited to global political and economic factors, changes in market conditions, and other unforeseen business risks. Please note that these forward-looking statements are made as of today, and we undertake no obligation to update them as a result of new information or future events unless required by law. We strongly advise all participants to refer to our filings with the Securities and Exchange Commission, including our most recent Form 20F and other periodic reports. For a more detailed discussion of these risks and uncertainties, and for a more complete understanding of the risks inherent in our business operations and the potential impact on future performance, we appreciate your continued interest in ImmunoPrecise Antibodies. I will now turn the call over to IPA's President and CEO, Dr. Jennifer Bath.

Jennifer Lynne Bath (President and CEO)

Thank you, Eric, and good morning, everyone. Thank you for joining us today to discuss IPA's Q3 results for our fiscal year 2025. This quarter has been marked by significant positive momentum for ImmunoPrecise Antibodies. We've secured a strategic partnership valued at $8 million-$10 million with a leading biotech company, leveraging our proprietary B-cell Select technology and AI-driven capabilities to enhance development and optimization processes. Our collaborations with key technology partners like Vultr, AMD, and other leading providers of advanced GPU technologies are enhancing our lab and elite drug discovery capabilities, driving cost-effectiveness and competitiveness. We've officially relocated our corporate headquarters to Austin, Texas, expanding our U.S. footprint in a thriving AI and biotech ecosystem. Additionally, we've entered a strategic partnership with RiboPro to integrate messenger RNA and LNP technologies and pioneered AI-designed GLP-1 therapeutics for diabetes.

Our pipeline strategy has been realigned with a new therapeutic development pipeline, and we've revealed multiple ADC lead candidates with tumor-killing capabilities. Furthermore, we've strengthened our financial position with an $8.8 million equity raise and the full conversion of the Yorkville debenture. Notably, we've made significant progress on the potential divestiture of our EU lab, which will enhance our operational efficiency and focus. The demand for our therapeutic applications is rapidly growing, with the percentage of antibody discovery projects aimed at therapeutic ends increasing from 19% to 48% year-over-year at our main wet lab discovery site in Canada. This shift underscores the high revenue potential of our services. Furthermore, BioStrand has achieved a remarkable 131.8% year-over-year revenue increase, with an average gross profit margin of 97% year-to-date. This extraordinary combination of rapid growth and exceptionally high profitability is fundamentally reshaping our financial trajectory.

As our AI-driven platforms continue to scale, we anticipate a dramatic enhancement in our path to profitability, positioning us for sustainable long-term growth and significantly increased shareholder value. The implications are significant. Our AI segment is emerging as a powerful engine, driving our transition to a more scalable and lucrative business model, bolstering our competitive edge and underscoring the immense potential for accelerated financial performance in the rapidly evolving AI healthcare landscape. Moving into the more detailed analysis of this quarter's activities, I want to start by first addressing our recent capital raise and financial strategy. This quarter, we successfully raised $7 million through our at-the-market facility, completing a consolidated $8.8 million equity raise. This capital was secured at an extremely low cost, and the execution has been met with positive feedback from the financial community.

Investors and analysts have recognized that the way we managed this raise was not only efficient but highly strategic. In total, we closed the quarter with approximately CAD 12.9 million, extending our runway significantly and offsetting short-term financial risk. To give some operational context, the use of our ATM is first discussed and approved at the board level. Once a decision is made, our entire executive team works closely with our bank, Clear Street, to ensure a smooth and effective execution within very specific market parameters. This ensures an orderly execution while reducing market disruption at a very minimum. Simultaneously with our capital raise, Yorkville elected to convert the remaining balance of their debenture, importantly at a significant premium to our share price.

This conversion marks a meaningful milestone for IPA, as we are now fully debt-free with no overhanging convertible obligations, while strengthening our capital structure, enhancing investor clarity, and positioning us to scale growth initiatives from a clean financial foundation. The biotech industry has faced significant capital constraints for the past few years. In 2023 alone, 41 biotech companies filed for bankruptcy, more than double the number for 2022. This trend has continued in 2024. Even larger organizations, such as Charles River Laboratories, have recently reported declining revenues due to reduced demand from pharma clients, and companies like GSK have faced skepticism about pipeline execution. We have deliberately positioned IPA to avoid the financial pitfalls that have been fatal for many of our companies in our sector. We have maintained a contingency funding model for years, making difficult but necessary decisions, such as reducing management and staff.

This proactive strategy has allowed us to maintain stability during a challenging market environment, and it's also provided us with the necessary resources today to realign the company with greater precision, streamlining our structure, introducing new leadership, and preparing to roll out a series of strategic initiatives in Q1 that sharpen our commercial focus and accelerate our growth trajectory. We are pleased to announce key leadership updates that strengthen our strategic direction and operational capabilities. We're very happy to welcome Dr. Kamil Isaev to the board of directors. With over 30 years of experience in AI, semiconductor technologies, and global R&D operations, Dr. Asayev brings invaluable expertise to our team. His impressive career includes leadership roles at Intel, Dell EMC, Align Technology, and ABRT VC, where he has driven AI-driven innovation and commercialization across multiple industries.

Currently, he leads the ABRT AI Lab and Venture Capital Score project, focusing on bringing cutting-edge AI research and commercialization strategies. His deep understanding of AI and strategic innovation will be instrumental in advancing our AI-driven biologics platform, particularly in enhancing our LENSai strategy. Dr. Asayev's proven track record in developing go-to-market strategies and his experience in bringing emerging technologies to commercial success aligns perfectly with our mission to accelerate innovation in AI-driven biologics. Joseph Scheffler joins IPA as Interim Chief Financial Officer, bringing a wealth of financial leadership experience in both publicly traded and multinational companies. His extensive background in financial reporting, forecasting, and business strategy will be invaluable in guiding IPA's next phase of growth. Most recently, as Interim Corporate Controller at Nidec Kinetek, Scheffler managed consolidated financial reporting for a $400 million global manufacturing firm with 40 subsidiaries worldwide.

His expertise in corporate strategy development will enhance IPA's financial operations and strategic decision-making. With an MBA in finance and a bachelor's degree in accounting from Loyola University, Chicago, Scheffler combines analytical expertise with strong stakeholder engagement, making him well-equipped to strengthen IPA's financial strategy and support the company's continued growth. We are also very excited to announce the addition of Dr. Hui Li as Senior Director, Client Relations, to our Boston team. Lee brings over 15 years of experience in antibody development, including driving discovery services at Abclonal and BioCitogen. Her extensive scientific knowledge and business development experience add new dimensions to our sales team, enhancing sales outreach strategies and bridging with our marketing team.

With a strong focus on understanding client needs and delivering state-of-the-art solutions, including BioStrand's LENSai capabilities, Lee has already made a significant impact by improving sales outreach effectiveness, collaborating on scientific content creation, and strengthening BioStrand's brand awareness. Her contributions have shortened sales cycle times and increased our capacity to handle inbound requests, amplifying our operational efficiency. We are pleased to report a major commercial milestone this quarter: a strategic partnership with a global multi-billion dollar bioscience company to advance the discovery and development of next-generation cancer therapeutics. The agreement, valued between $8 million and $10 million USD, represents a transformational validation of IPA's business model and the commercial readiness of our integrated AI and wet lab platform. What sets this deal apart is its structure. This is not a milestone-based or royalty-driven agreement.

While certain details cannot be disclosed publicly, for instance, the name of our corporate partner at their request, what we can say is this is an all-cash contract with an initial $8 million purchase order already issued in February, and the program has launched. To put this into perspective, the initial purchase order alone equates to approximately half of our annual revenue. A second purchase order may follow to expand the program, underscoring the depth of our partner's commitment to IPA. This partnership combines IPA's proprietary LENSai platform and our advanced B-cell discovery capabilities with the partner's cutting-edge antibody drug conjugate technology. The program targets highly selective, precision-engineered cancer therapies and is structured to advance efficiently from discovery through preclinical candidate selection over the next 18 months.

This deal is a strong market signal, highlighting the growing demand for AI-powered drug discovery and demonstrating IPA's ability to convert platform innovation into significant recurring commercial revenue. In parallel, we've made notable progress on our AI-designed GLP-1 program. Following the successful in silico design of optimized therapeutic candidates using our LENSai platform, the program has now entered parallel tracks with partners for manufacturing, in vitro testing, preclinical design, and formulation planning. These activities mark a significant milestone in the advancement of our internal pipeline as we work to translate next-generation AI designs into tangible therapeutic assets. We have added de novo antibody design to our portfolio of offerings, a transformative application of AI that enables antibodies to be designed from scratch. This capability represents a major step forward in precision biologics, particularly in targeting specific epitopes that are difficult to access through traditional methods.

Notably, it was only in March of 2024 that the first and last public report on AI-driven de novo antibody design was released in a pre-print publication led by Nobel Laureate David Baker, a pioneer in the field. Since then, a returning large pharma approached us to initiate a de novo program using this precise targeting method, highlighting both the relevance and the immediate demand for this innovation, which is not currently publicly available. To support the growing complexity of our AI-driven initiative, particularly the recently commissioned de novo antibody design program from a top 20 pharmaceutical company, we are actively expanding our scalable cloud infrastructure in collaboration with Vultr, a premier provider of high-performance GPU clusters. This strategic partnership is crucial for enhancing our computational capabilities and ensuring seamless execution of sophisticated AI tasks.

As of this morning, a detailed case study highlighting the benefits and technical aspects of this collaboration is available on the presentation section of our investor relations website, providing insights into how our infrastructure advancements are empowering cutting-edge projects like de novo antibody discovery and design. This infrastructure enables us to execute compute-intensive processes like structure prediction, generative design, affinity maturation, and large language model-based sequence modeling with greater speed and efficiency. These capabilities directly power initiatives like our GLP-1 program and de novo antibody discovery workflows, where rapid iteration and model refinement are essential. By leveraging Vultr's flexible deployment of NVIDIA H100 and AMD MI300X GPUs, we've achieved up to a 66% cost saving over traditional cloud providers, all while maintaining the compliance, scalability, and security required for modern drug development.

These savings may not only increase our already very high profit margin, they can also be passed along to the client, further increasing the competitiveness of our program. Innovation remains a cornerstone of our growth strategy. I want to provide an update on the AWS Marketplace integration, a major step in expanding our access to solutions. In December 2024, we completed the submission of our technical review to the AWS partners. By early February 2025, we received positive feedback on the DevOps segment, with only minor recommendations that we were already addressing. Next, we await the remaining review results and will finalize our invoicing strategy to ensure seamless transactions upon launch. This integration will greatly expand our market reach, making our AI-powered solutions available to a broader customer base. We are pleased to provide an update on our ongoing EU potential divestiture initiative.

The process has progressed significantly and according to our projected timeline, with a structured outreach strategy that has generated interest from potential buyers. A total of 77 strategic and financial partners have been engaged, ensuring broad market exposure and fostering meaningful discussions. As a part of this process, we conducted due diligence calls with multiple interested parties and distributed confidential information packages to 30 qualified parties. The response has been highly encouraging, with close to a dozen formal bids received, with a focus on our integrated service offerings and diversified customer base. After significant due diligence evaluations and presentations, we hosted the highest potential buyers on site for private tours and in-depth discussions. We still aim to have a definitive conclusion by the end of this fiscal year, while, of course, providing any material updates as they emerge.

Our rebrand signals a meaningful evolution in IPA's journey, one that unifies our identity and better reflects our integrated capabilities across AI and biologics. By bringing all IPA entities under a single brand, we are streamlining collaboration, enhancing global visibility, and creating a stronger platform for commercial growth. At the center of this transformation is our HYFT technology, the foundation of our LENSai platform, a native AI built specifically for biology. HIP's ability to map and decode complex biological patterns across more than 25 billion biologic relationships unlocks new dimensions of insights in therapeutic discovery. With only a small fraction of druggable proteins currently addressed by existing therapies, the opportunity ahead is vast. Our unified brand embodies this vision, where AI meets biologic intelligence to uncover novel targets, accelerate timelines, and power the next wave of innovation in medicine. This is more than a visual refresh.

It's a strategic alignment that reflects who we are and where we're headed. We look forward to sharing more as we prepare for a public rollout in the coming months. I'll now turn things over to Joe Scheffler for our financial updates for the quarter.

Joseph Scheffler (CFO)

Thank you, Jennifer. I'll now provide a summary of our financial results for the third quarter of our fiscal year 2025, ending January 31, 2025. As a reminder, all the numbers referenced are in CAD, unless otherwise noted. For the third quarter, IPA generated CAD 6.2 million in revenue, compared to CAD 6.2 million in the same quarter last year, a consistent quarter-over-quarter strength across our wet lab operations.

On the AI side, BioStrand generated CAD 0.6 million in third quarter revenue, bringing us to a year-to-date revenue in excess of CAD 1 million and a year-to-date gross profit margin of 97%, demonstrating the financial leverage potential of this business segment as we scale. Operating expenses for the third quarter totaled CAD 27.8 million, driven largely by a non-cash impairment charge of CAD 21.2 million related to the impairment of BioStrand's intangible assets as part of our internal strategic review and repositioning. Excluding impairment, operating expenses were CAD 6.6 million, compared to CAD 6.5 million in Q3 of the prior year. Further breaking this down, R&D expenses remained constant at CAD 1.1 million, compared to CAD 1 million in Q3 last year. Sales and marketing expenses increased to CAD 1.3 million, compared to CAD 0.6 million in Q3 last year.

G&A expenses decreased to $3.6 million as compared to $4.2 million reported in Q3 of the prior year. We continue to tightly manage costs while spending with our highest growth strategic priorities, particularly LENSai and platform expansion. The net loss for the third quarter was $21.5 million or $0.66 per share. However, the net loss pre-impairment net of tax was $2.9 million or $0.09 per share, compared to a net loss of $2.6 million or $0.10 per share in Q3 of last year. As of January 31, 2025, we held $12.9 million in cash, compared to $3.5 million at the fiscal year end 2024. This increase was driven by the successful execution of our ATM program, through which we raised $12.2 million, as well as the full conversion of the Yorkville debenture, which is now retired and no longer a source of dilution risk.

We are evaluating additional non-dilutive funding mechanisms and strategic asset realignment, including a potential divestiture of select European operations, to further streamline costs and focus our capital on technology-led growth initiatives. With a leaner structure, validated AI economics, and strong partner momentum, we believe we're entering the next quarter in a more focused and financially disciplined position. Thank you. Now we'll turn it back to the operator for the Q&A portion of the call.

Operator (participant)

Thank you, Joseph. Before Dr. Bath provides concluding remarks, we would like to open the lines to questions from investors and analysts. Your first question comes from the line of Swayampakula Ramakanth with HC Wainwright. Please go ahead.

Swayampakula Ramakanth (Managing Director and Senior Healthcare Analyst)

This is RK from HC Wainwright. Good morning, Jennifer and Frédéric. Hello. A few questions from me. The first one is on the deal that you recently announced, the $8 million-$10 million deal.

As you said, your initial purchase order was in the order of $8 million. You were also saying that we could expect a second PO. Two questions there. Should we expect something of that nature in this year? The other piece is, since the deal was structured as 8-10, does that mean the second PO is going to be less than $2 million, or it could be of the similar nature as the first one?

Jennifer Lynne Bath (President and CEO)

Yeah. The first purchase order was at that initial $8 million. The purpose for potentially expanding that to $10 million is leaving additional room for $2 million for the projects that are going on successfully that might need some additional engineering and optimization prior to preclinical studies.

With regard to the initial part of the question, over the period of time that we expect this to be spent, I think the 18 months is the timeline that's been put forward when we look at the statement of work. That is what we issue, what we are going to do, and when those deliverables can be expected. That is the anticipated period of time for the $8 million. The purchase order itself was received in February with an initial $500,000 already dedicated to launching the program. The way that works over time in terms of how that capital is allocated and the timing of the revenue is that we draw down weekly. As we conduct the work, at the end of the week, we draw down what work we have done based on a % of completion.

That determines how much revenue is drawn off of that purchase order each week. It definitely will be hitting this quarter for fourth quarter, which is great because it's already happening at a site in Canada where we not only see this increase in therapeutic, but even year to date, we're already 25% higher in revenue at that location. This drawdown will happen very consistently at that Canadian site on a regular basis. We expect that to conclude that first $8 million tranche in an 18-month period.

Swayampakula Ramakanth (Managing Director and Senior Healthcare Analyst)

Okay. Thanks for the details on that one. Based on this particular deal, should we expect additional such partnerships or collaborations?

Is this the sort of structure that you anticipate to have going forward in terms of how you draw down revenue based on the work you do rather than a milestone payment?

Jennifer Lynne Bath (President and CEO)

Yeah. I really like this question for a couple of reasons. One of the things that's occurring in our laboratories within this quarter that we're in right now is the integration of AI into the wet lab capabilities in Canada. For those therapeutic programs where I mentioned that the number of them are very rapidly increasing, which is good because they are higher revenue programs for us, the AI portion of that now actually becomes mandatory.

It really is changing not only what we offer in terms of the services and also, obviously, the price tag and the profit margin on that, but it genuinely turns over a much more sophisticated product that has an advanced thought of potential failures downstream. The reason why I mentioned that is it really is a realignment of how we look at our offerings and how we look at the people, the partners we're working with. We still offer very customized programs, but not the ability for people to kind of pick and choose what they want to do. Along the lines of that, when we get these multi-site, multi-target programs, this one that we've just closed is for up to 12 different oncology programs. Those are the programs that are now absolutely being targeted for partnership.

We have actually incentivized our team out of Boston specifically to be focused on those partnerships. There are a number of reasons for that. Not only is it a large amount of capital upfront, but we also have a lot more flexibility and control over those programs and how they're allocated, which is better for the program and better for us. One of the things that internally we made sure that we did was we created a template that we could actively use to structure additional collaborations. With this type of deal architecture, where it's cash-based, it's execution-focused, it's very innovation-driven, it really does bring us a repeatable model that enables us to scale commercial efforts as we really do take a shift in how we're displaying these offerings to the market.

We're very proud of that because we're one of the few companies in the industry that has clearly demonstrated we can land that type of partnership without having to offer our capabilities for free or at cost upfront. People are willing to pay for it because we produce good results.

Swayampakula Ramakanth (Managing Director and Senior Healthcare Analyst)

Thank you for that. This is a question coming from a non-technical person, and I don't understand this too good. In terms of your collaboration with Vultr, and you were saying that it does help on your margins, can you help me understand how the collaboration with Vultr is going to work if I want to segment it by project by project? Does it improve margins across the board, or only in certain projects would it help the margins?

What I'm trying to ask is, is this going to be a company-wide margin improvement, or is this going to be dependent on what sort of projects are being worked on?

Jennifer Lynne Bath (President and CEO)

Yeah. No, that's a great question. With regard to the projects that are impacted, it is specifically for the moment programs being run through BioStrand, AI programs that require a significant amount of GPU usage. I would encourage people to download the case study that we uploaded this morning. I think it is pretty—I think it will be very digestible for people to take a look at. There are a few things about this that I think are important. One is the fact that it also enables us to do our work much faster. The importance with that, of course, is that it increases our bandwidth, and it enables us to cycle programs through more rapidly.

Then the cost efficiencies too. Vultr has been a great partner for us so far. They've enabled us to do some of this work and some of these programs with free access to GPUs to be able to demonstrate that they can take on the type of very, very significantly heavy loads for GPU for things like de novo antibody design. Again, to really do this much faster and much cheaper than the standard cloud usage. That brings a whole host of, I think, very tangible benefits, primarily for the AI work, but that AI work is very rapidly increasing and expanding and pushing into our wet lab work. We will see it affect also wet lab work for that reason.

Another thing we did not really touch on, but I think is really interesting about these partnerships—and I will speak primarily about Vultr here—but as we mentioned, we also have been collaborating with AMD as well, and then some other prominent GPU providers, is that we are also co-marketing with these groups. We see a lot of synergies in leveraging the capabilities from each group. For us, of course, faster compute time, faster or less expensive compute time, higher profit margins, benefits for our clients, but for them, also access to pharmaceutical partners where we have already been through the onboarding process and they become an accepted vendor, which is not an easy process, and it is quite time-consuming.

We also have been leveraging not only through the marketing materials like you'll see in the download on our IR site this morning, but also through conferences, as people will have noticed at NVIDIA last week. The intent is to move forward with these companies in that same manner where we co-share marketing events, we co-share booths and marketing events, we promote each other's companies. That not only expands our reach into different industries and different clients and different conferences specifically, but it also does not increase our cost per se because we're sharing the burden of that. That is another aspect of those collaborations we're quite excited about.

Swayampakula Ramakanth (Managing Director and Senior Healthcare Analyst)

Thank you for that.

The last question from me is, how should we think about ImmunoPrecise post-European divestiture in the sense it's going to be just Vancouver facility and the Austin facility, and then when Boston comes on board in full stream, would the cost kind of end up being the same place where they were when you had the EU, or would it be comparatively less?

Jennifer Lynne Bath (President and CEO)

That's a great question. The cost of the company will be significantly lower. The European operations are more expensive than our North American operations, in part due to the necessary expansions. One of them was in a building that was set for demolish, and so they had a required move. The other one was no longer considered a startup for the community in which the accelerator building they were in was emphasizing, and so also had a move.

They do have extended expenses. In addition to that, I think we've mentioned previously that that site in Oss also has become quite repetitive for us and no longer a primary focus then for our business. A lot of that work is work that can be done with our digital applications using LENSai. To really keep two sites operating and offering the majority of the similar services when our identity and our focus is really on the software obviously does not make good strategic sense for us. More specifically, yes, our overall operating costs will go down. The cost of the offerings and capabilities that we are preparing in the Cambridge and Boston area are significantly lower, and that has been a very concerted effort, and I think we've done that in very creative ways.

In particular, the operating costs and costs associated with those are significantly lower. We will fill any gaps in that full end-to-end capability service that we might have that has obviously served us so well. Our hope is that any hit to revenue is temporary, that we are able to restore those relatively quickly, but also have a nice cash influx, which we think at this point in time is quite strategic. I do not think anyone is entirely certain about when the biotech market will improve and it enables us to really put our focus on our core identity, which is ensuring that we can continue this level of growth that we are seeing in our BioStrand unit.

Swayampakula Ramakanth (Managing Director and Senior Healthcare Analyst)

Thank you. Thank you, Jennifer, for taking all my questions.

Jennifer Lynne Bath (President and CEO)

Of course. Yes, thank you, Rk.

Your next question comes from the line of Daby Carreras with Spartan Capital Securities. Please go ahead.

Daby Carreras (Analyst)

How are you, team? How are you, Jennifer? Hello, Joe. Hello, Ark. Good to hear from you. Really great update in Puerto Rico. It's very rare that I get so excited for an amazing company doing tremendous guidance after the stock price lower than the earnings loss of burn. Great recovery from BioStrand. I love hearing about this guidance. I mean, already seeing 50% guidance already there, so I know it's going to get stronger. I just want to hear a little bit more about the rest of the GLP from AI because you're really becoming a really strong story for AI. Anything more towards that would be really helpful.

Jennifer Lynne Bath (President and CEO)

Yes. Just to reiterate, the question is around the GLP from AI?

Daby Carreras (Analyst)

Correct. GLP from AI. You could talk about ADC, but really GLP AI.

Jennifer Lynne Bath (President and CEO)

Yeah, absolutely. Yeah.

The way that we looked at the GLP product from the AI is, first of all, we wanted to demonstrate to people some of those capabilities within LENSai, in particular the ability to see insights that might not otherwise be uncovered. We are working on a white paper that demonstrates some of those insights that we saw with regard to the evolution and selective pressures on that molecule, the way it's related to things outside of just what we understand its role to be in diabetes and weight loss. Those insights have also helped us to pinpoint why some adverse events happen, but also why the molecules evolve the way they did.

We feel that some of the benefits to that program that were offered by LENSai were our ability to really look at what the challenges are currently in the healthcare space, what are the resistance to use from the patient community, and what are some of those adverse events. Some of the things that we tackled using LENSai were the stability of the molecule itself, just at the sequence level. We looked at also, because of that stability, increasing the longevity at which this is then also produced. We looked at differentiating it from other molecules to keep it free and clear from the patent space as well.

Other things that we did was we looked at how can we align this with a formulation manner that overcomes some of the obstacles in the space, such as the need to inject oneself every day or once a week if you're lucky enough to be on such a prescribed timeline. The formulation and also the route of administration play a very big role in that. We have partnered with a number of companies. We really haven't named most of those companies, but we will as we are able, as more formal portions of the partnerships are signed. Those involve not only the manufacturing for the preclinical trials, but also partnership for the preclinical work itself with a group that's very experienced in the diabetes and metabolic disease space.

Also partnering with a group that has a delivery method where we believe that our drug product is specifically well aligned to. Our drug product is not like the same type of drug product in terms of its construction or its formulation that we see out there on the market for any other GLP product. It is extremely small in size. It is a unique way to deliver, and it does have the potential to be delivered transdermally.

One of the partners we're working with has a very unique, already clinically proven transdermal application that enables not only the passage of the material through the skin by the wearing of a patch, but also to more depth levels for more broad distribution of the drug product into the bloodstream, as well as slow release of that drug product, which again means that the person can be dosed on a less frequent basis. That aligns really well with the way we have produced the drug product or the way the drug product is currently being produced because it already is being manufactured in a construct that is made for long-term sustainability with inside the cell. Those are a few of the things that we've been working on here lately.

I think one of the most significant things is we've brought partners in, and we've also been working with groups who want to partner to cover the cost of that program. We aren't looking at sinking a lot of money in. We're really looking at, hey, how can we just collectively bring a better product forward? For us, our main goal is demonstrating what LENSai is capable of, but without the risk of carrying the cost of the program.

Daby Carreras (Analyst)

Really, really excellent. I mean, I'm having a lot of things to walk away with: AI, the GLP-1 patch, the 50% guidance move-up, and also the non-dilutive nature. It's really awesome. Thank you so much, Jen. Thank you, Frédéric. Joe, welcome aboard.

Thank you.

Operator (participant)

Thank you for your insightful questions. I'll now hand the call to Dr. Jennifer Bath, our CEO, to conclude the call.

Jennifer Lynne Bath (President and CEO)

All right.

Thank you very much, Eric. All right. As we conclude this quarter, ImmunoPrecise Antibodies has achieved significant milestones. Notably, as we've discussed, we've secured a strategic partnership at the $8 million-$10 million range, leveraging our B-cell Select technology and our AI-driven capabilities. Our collaborations with leading partners like Vultr and AMD are enhancing our drug discovery capabilities, driving cost effectiveness and competitiveness. We've strengthened our financial position with an $8.8 million equity raise and relocated our headquarters to Austin, Texas, expanding our US footprint. The demand for therapeutic applications is growing rapidly, with a notable increase in projects aimed at therapeutic ends. BioStrand has achieved a remarkable 131.8% year-over-year revenue increase just year to date, with a 97% gross profit margin year to date, positioning us for sustainable long-term growth and increased shareholder value.

As our AI-driven platforms continue to scale, we anticipate enhanced profitability and competitive edge in the evolving AI healthcare landscape. Thank you for your attention, and we look forward to sharing further updates on our progress.

Operator (participant)

Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.