8-K
AbCellera Biologics Inc. (ABCL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________
FORM 8-K
__________________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 12, 2021
__________________________________________________
ABCELLERA BIOLOGICS INC.
(Exact name of registrant as specified in its charter)
__________________________________________________
| British Columbia | 001-39781 | Not Applicable |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
| 2215 Yukon Street<br><br><br>Vancouver, BC | V5Y 0A1 | |
| --- | --- | |
| (Address of registrant’s principal executive office) | (Zip code) |
(604) 559-9005
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
__________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common shares | ABCL | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company X
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On August 12, 2021, AbCellera Biologics Inc., (the “Company”), issued a press release announcing its financial and operational results for the quarter ended June 30, 2021. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure
In connection with its earnings call on August 12, 2021, to discuss its results for the quarter ended June 30, 2021, the Company will utilize a corporate presentation, a copy of which is furnished herewith as Exhibit 99.2.
The information in Items 2.02 and 7.01 of this Form 8-K (including the exhibits attached hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit<br><br>No. | Description |
|---|---|
| 99.1 | Press Release issued by AbCellera Biologics Inc. on August 12, 2021. |
| 99.2 | Corporate presentation. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: August 12, 2021 | ABCELLERA BIOLOGICS INC. | |
|---|---|---|
| By: | /s/ Carl L. G. Hansen | |
| Carl L. G. Hansen, Ph.D. | ||
| Chief Executive Officer and Director<br><br><br>(Principal Executive Officer) |
abcl-ex991_127.htm
Exhibit 99.1
NEWS RELEASE
AbCellera Reports Q2 2021 Business Results
08/12/2021
| ● | Total revenue of $28 million, up from $11 million in Q2 2020 |
|---|---|
| ● | Total programs under contract of 138, up 82% from Q2 2020 |
| --- | --- |
| ● | Net loss of ($0.01) per share (basic and diluted) compared to net earnings of $0.03 per share (basic and diluted) in Q2 2020 |
| --- | --- |
VANCOUVER, British Columbia, August 12, 2021 -- AbCellera (Nasdaq: ABCL), a technology company with a centralized operating system for next-generation antibody discovery, today announced financial results for the second quarter of 2021. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
“This quarter we delivered strong growth across key performance indicators related to our partnership business, including new programs under contract, program starts, and new molecules in the clinic,” said Carl Hansen, Ph.D., CEO of AbCellera. “We continue to drive value in our partnership business by building a diversified portfolio of potential future royalty streams across a broad range of indications and antibody modalities. We are also extending this model to create opportunities to deepen our position with assets that can provide economics similar to an internal pipeline while staying focused on preclinical discovery and development.”
Q2 2021 Business Summary
| ● | Earned $27.6 million in total revenue, including $22.2 million in milestones and royalties. |
|---|---|
| ● | Incurred net loss of $2.3 million, compared to generating net earnings of $6.7 million in Q2 2020. |
| --- | --- |
| ● | Added 19 programs under contract with four new partners, resulting in a cumulative total of 138 programs under contract with 33 different partners. |
| --- | --- |
| ● | Started discovery on six programs, bringing the cumulative number of program starts<br>to 60. |
| --- | --- |
| ● | Confirmed three new molecules advanced into the clinic, bringing the cumulative total<br>to four. |
| --- | --- |
| ● | U.S. shipments of the AbCellera-discovered and Eli Lilly-developed bamlanivimab, administered together with etesevimab for COVID-19, were halted in June 2021 because of the prevalence of resistant variants at the time (Beta and Gamma). Preclinical data demonstrate that bamlanivimab and etesevimab administered together retain neutralization activity against variants currently in circulation in many countries, including the Delta variant which is now the most prevalent variant in the U.S. |
| --- | --- |
| ● | A second AbCellera-discovered therapeutic antibody for COVID-19, bebtelovimab <br>(LY-CoV1404), which has been shown in preclinical studies to be highly potent and effective against variants of concern, including the Delta variant, was advanced into Phase 2 clinical testing by Eli Lilly. |
| --- | --- |
| ● | Expanded leadership team with the appointment of Neil Berkley as Chief Business Officer. |
| --- | --- |
Key Business Metrics
| Metric | June 30, 2020 | June 30, 2021 | Change % | ||||
|---|---|---|---|---|---|---|---|
| Number of discovery partners | 25 | 33 | 32 | % | |||
| Programs under contract, cumulative | 76 | 138 | 82 | % | |||
| Program starts, cumulative | 48 | 60 | 25 | % | |||
| Molecules in the clinic | 1 | 4 | 300 | % |
AbCellera added 19 discovery programs in Q2 to reach a cumulative total of 138 discovery programs as of June 30, 2021 (up 82% from 76 on June 30, 2020), that are either completed, in progress, or under contract with 33 different partners (up from 25 on June 30, 2020). AbCellera started discovery on an additional six programs in Q2 to reach a cumulative total of 60 program starts (up from 48 on June 30, 2020). Our partners advanced three additional molecules into the clinic in Q2 2021, bringing the cumulative total to four.
Discussion of Q2 2021 Financial Results
| Three months ended<br><br><br>June 30, | Change | Six months ended<br><br><br>June 30, | Change | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | Amount | % | 2020 | 2021 | Amount | % | |||||||||||||
| (in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Research fees | $ | 8,228 | $ | 5,215 | $ | (3,013 | ) | -37 | % | $ | 12,885 | $ | 9,201 | $ | (3,684 | ) | -29 | % | ||
| Licensing revenue | - | 263 | 263 | N/A | - | 20,522 | 20,522 | N/A | ||||||||||||
| Milestone payments | 3,000 | 1,000 | (2,000 | ) | -67 | % | 3,000 | 8,000 | 5,000 | 167 | % | |||||||||
| Royalty revenue | - | 21,165 | 21,165 | N/A | - | 192,661 | 192,661 | N/A | ||||||||||||
| Total revenue | $ | 11,228 | $ | 27,643 | $ | 16,415 | 146 | % | $ | 15,885 | $ | 230,384 | $ | 214,499 | 1350 | % | ||||
| ● | Revenue – Total revenue was $27.6 million, up from $11.2 million in Q2 2020. Sales of bamlanivimab generated earned royalties of $21.2 million. Milestone payments totalled $1.0 million and licensing revenue contributed $0.3 million. The partnership business produced research fees of $5.2 million, compared to $8.2 million in Q2 2020, which is attributable to the reduction in work associated with COVID-19 antibody discovery. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| ● | Royalty Fees – Royalty fees payable to the National Institutes of Health on bamlanivimab were $3.6 million. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| ● | Research & Development (R&D) Expenses – R&D expenses were $15.0 million, compared to $9.1 million in Q2 2020, reflecting continuing strong investments in the | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| capacity and capabilities of AbCellera’s discovery and development platform. | ||||||||||||||||||||
| --- | ||||||||||||||||||||
| ● | Sales & Marketing (S&M) Expenses – S&M expenses were $1.3 million, compared to $0.5 million in Q2 2020. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| ● | General & Administrative (G&A) Expenses – G&A expenses were $11.2 million, compared to $1.5 million in Q2 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 our intellectual property. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| ● | Net Loss – Net loss was $2.3 million, or ($0.01) per share on both a basic and diluted basis compared to net earnings of $6.7 million, or $0.03 per share on a basic and diluted basis in Q2 2020. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| ● | Liquidity – $792.6 million of cash and cash equivalents and $64.9 million in accounts receivable and accrued accounts receivable. | |||||||||||||||||||
| --- | --- |
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. 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 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.
Going forward, AbCellera intends to report on the molecules in the clinic metric in place of the previously reported programs in the clinic metric. The change is required to reflect two new dynamics which we believe are important to our business:
| ● | One program can yield multiple molecules, e.g. the single COVID-19 antibody discovery program with Eli Lilly has produced both bamlanivimab and bebtelovimab. |
|---|---|
| ● | As part of an acquisition, AbCellera may come to own stakes in molecules for which the company is also entitled to milestone payments and royalties although the discovery was not performed as an AbCellera program, as is the case for several Trianni humanized rodent license agreements. |
| --- | --- |
As part of the change, we have raised the threshold for reaching the clinic from IND application (or equivalent) to IND approval. We believe this more stringent definition better reflects the common understanding for achieving clinical status. The approval date is also more likely to be known than the application date. We believe this change will make our disclosures more consistent between molecules. The change produces no difference to historical business results. Until the second quarter of 2021, the previous metric of programs in the clinic was identical to the new metric of molecules in the clinic, with the COVID-19 antibody program and bamlanivimab having been the first and only program and molecule to have reached the clinic under either definition. AbCellera also intends to disclose additional details about each molecule to the extent made public or permitted by its partners. We believe that the
updated metric together with the additional list of molecules will give investors a better understanding of AbCellera’s downstream portfolio and bring AbCellera’s reporting in line with other public companies with economic stakes in therapeutic molecules.
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.
Inquiries
Media: Jessica Yingling, Ph.D.; [email protected], +1(236) 521-6774
Business Development: Neil Berkley; [email protected], +1(604) 559-9005
Investor Relations: Melanie Solomon; mailto:[email protected], +1(778) 729-9116
AbCellera Biologics Inc.
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
(All figures in U.S. dollars. Amounts are expressed in thousands except share and per share data)
(Unaudited)
| Three months ended June 30, | Six months ended June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2020 | 2021 | |||||||||
| Revenue: | ||||||||||||
| Research fees | $ | 8,228 | $ | 5,215 | $ | 12,885 | $ | 9,201 | ||||
| Licensing revenue | - | 263 | - | 20,522 | ||||||||
| Milestone payments | 3,000 | 1,000 | 3,000 | 8,000 | ||||||||
| Royalty revenue | - | 21,165 | - | 192,661 | ||||||||
| Total revenue | 11,228 | 27,643 | 15,885 | 230,384 | ||||||||
| Operating expenses: | ||||||||||||
| Royalty fees | - | 3,610 | - | 23,622 | ||||||||
| Research and development^(^^1)^ | 9,144 | 15,046 | 13,262 | 27,403 | ||||||||
| Sales and marketing^(^^1)^ | 547 | 1,295 | 984 | 3,869 | ||||||||
| General and administrative^(^^1)^ | 1,498 | 11,203 | 3,148 | 17,688 | ||||||||
| Depreciation and amortization | 893 | 3,522 | 1,467 | 6,827 | ||||||||
| Total operating expenses | 12,082 | 34,676 | 18,861 | 79,409 | ||||||||
| Income (loss) from operations | (854 | ) | (7,033 | ) | (2,976 | ) | 150,975 | |||||
| Other (income) expense | ||||||||||||
| Other (income) expense | 293 | (314 | ) | 1,294 | (645 | ) | ||||||
| Grants and incentives | (7,850 | ) | (4,646 | ) | (8,880 | ) | (7,794 | ) | ||||
| Total other income | (7,557 | ) | (4,960 | ) | (7,586 | ) | (8,439 | ) | ||||
| Net earnings (loss) before income tax | 6,703 | (2,073 | ) | 4,610 | 159,414 | |||||||
| Provision for income tax | - | 250 | - | 44,516 | ||||||||
| Net earnings (loss) | $ | 6,703 | $ | (2,323 | ) | $ | 4,610 | $ | 114,898 | |||
| Foreign currency translation adjustment | - | 2,152 | - | 2,152 | ||||||||
| Comprehensive income (loss) | $ | 6,703 | $ | (171 | ) | $ | 4,610 | $ | 117,050 | |||
| Net earnings (loss) per share attributable to common shareholders | ||||||||||||
| Basic | $ | 0.03 | $ | (0.01 | ) | $ | 0.02 | $ | 0.42 | |||
| Diluted | $ | 0.03 | $ | (0.01 | ) | $ | 0.02 | $ | 0.36 | |||
| Weighted-average common shares outstanding | ||||||||||||
| Basic | 152,326,424 | 272,196,107 | 152,091,589 | 270,953,541 | ||||||||
| Diluted | 260,810,864 | 272,196,107 | 226,039,616 | 321,555,443 | ||||||||
| (1) | Exclusive of depreciation and amortization | |||||||||||
| --- | --- |
AbCellera Biologics Inc.
Condensed Consolidated Balance Sheet
(All figures in U.S. dollars. Amounts are expressed in thousands except share data)
(Unaudited)
| December 31, 2020 | June 30, 2021 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 594,116 | $ | 792,571 |
| Accounts receivable | 903 | 2,799 | ||
| Accrued accounts receivable | 212,336 | 62,085 | ||
| Other current assets | 5,970 | 6,547 | ||
| Total current assets | 813,325 | 864,002 | ||
| Long term assets: | ||||
| Property and equipment, net | 17,923 | 87,479 | ||
| Intangible assets | 115,153 | 110,223 | ||
| Goodwill | 31,500 | 31,500 | ||
| Investments in and loans to equity accounted investees | 19,247 | 42,705 | ||
| Other long-term assets | 8,388 | 15,947 | ||
| Total long-term assets | 192,211 | 287,854 | ||
| Total assets | $ | 1,005,536 | $ | 1,151,856 |
| Liabilities and shareholders' equity | ||||
| Current liabilities: | ||||
| Accounts payable and other liabilities | $ | 20,195 | $ | 18,276 |
| Current portion of contingent consideration payable | 13,411 | 11,572 | ||
| Income taxes payable | 36,152 | 5,822 | ||
| Accrued royalties payable | 27,143 | 23,520 | ||
| Deferred revenue | 6,589 | 10,568 | ||
| Total current liabilities | 103,490 | 69,758 | ||
| Long-term liabilities: | ||||
| Operating lease liability | 3,715 | 31,020 | ||
| Deferred revenue and grant funding | 25,894 | 46,618 | ||
| Contingent consideration payable | 9,148 | 9,614 | ||
| Deferred tax liability | 26,161 | 25,510 | ||
| Other long-term liabilities | 6,620 | 1,657 | ||
| Total long-term liabilities | 71,538 | 114,419 | ||
| Total liabilities | 175,028 | 184,177 | ||
| Commitments and contingencies | ||||
| Shareholders' equity: | ||||
| Common shares: no par value, unlimited authorized shares at December 31, 2020 and June 30, 2021: 269,497,768 and 276,982,678 shares issued and outstanding at December 31, 2020 and June 30, 2021 respectively | 710,387 | 714,758 | ||
| Additional paid-in capital | 5,919 | 21,669 | ||
| Accumulated other comprehensive income | - | 2,152 | ||
| Accumulated earnings | 114,202 | 229,100 | ||
| Total shareholders' equity | 830,508 | 967,679 | ||
| Total liabilities and shareholders' equity | $ | 1,005,536 | $ | 1,151,856 |
AbCellera Biologics Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of U.S. dollars)
(Unaudited)
| Six months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2021 | |||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 4,610 | $ | 114,898 | ||
| Cash flows from operating activities: | ||||||
| Depreciation of property and equipment | 1,467 | 1,897 | ||||
| Amortization of intangible assets | - | 4,930 | ||||
| Amortization of operating lease right-of-use-assets | 259 | 1,354 | ||||
| Stock-based compensation | 1,843 | 13,900 | ||||
| Deferred tax expense | - | 756 | ||||
| Other | (245 | ) | (419 | ) | ||
| Changes in operating assets and liabilities: | ||||||
| Accounts and accrued research fees receivable | (9,220 | ) | (28,339 | ) | ||
| Accrued royalties receivable | - | 172,768 | ||||
| Income taxes payable | - | (30,330 | ) | |||
| Accounts payable and accrued liabilities | 1,510 | (3,640 | ) | |||
| Deferred revenue | 24,435 | 4,848 | ||||
| Accrued royalties payable | - | (3,623 | ) | |||
| Operating lease liabilities | 372 | (364 | ) | |||
| Deferred grant income | 2,044 | 22,349 | ||||
| Other assets | (1,862 | ) | (3,757 | ) | ||
| Net cash provided by operating activities | 25,213 | 267,228 | ||||
| Cash flows from investing activities: | ||||||
| Purchases of property and equipment | (4,286 | ) | (40,448 | ) | ||
| Purchase of intangible assets | (5,000 | ) | - | |||
| Repayment of loan to related parties | 1,573 | - | ||||
| Receipt of grant funding | - | 4,520 | ||||
| Long-term investments | - | (5,034 | ) | |||
| Investment in and loans to equity accounted investees | - | (20,510 | ) | |||
| Net cash used in investing activities | (7,713 | ) | (61,472 | ) | ||
| Cash flows from financing activities: | ||||||
| Repayment of long-term debt | (1,971 | ) | (1,823 | ) | ||
| Payment of contingent consideration | - | (2,550 | ) | |||
| Proceeds from long-term debt | 15,509 | 872 | ||||
| Payment of liability for in-licensing agreement | - | (5,000 | ) | |||
| Short-term borrowings | (387 | ) | - | |||
| Issuance of common shares pursuant to exercise of stock options | 251 | 1,883 | ||||
| Proceeds from issuance of preferred shares - series A2 financing | 74,682 | - | ||||
| Net cash provided by (used in) financing activities | 88,084 | (6,618 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | - | (683 | ) | |||
| Increase in cash and cash equivalents | 105,584 | 198,455 | ||||
| Cash and cash equivalents, beginning of period | 7,553 | 594,116 | ||||
| Cash and cash equivalents, end of period | $ | 113,137 | $ | 792,571 |
8
Q2 2021 Business Update AUG 12, 2021
DISCLAIMER 2 This presentation 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 presentation 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 presentation 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. Q2 2021 BUSINESS UPDATE
138 6 Q2 2021. BUSINESS UPDATE SUMMARY. STRONG GROWTH OF CORE BUSINESS $792.6M 19 3 $65M NEW programs under contract NEW programs started MOLECULES entered clinical testing cumulative programs under contract in accounts receivable (AR) + accrued AR in cash & cash equivalents
2 antibodies for Covid-19 US shipments of bamlanivimab together with etesevimab halted in June because of the prevalence of resistant variants at the time (Gamma and Beta). Effective against Delta variant* bebtelovimab Effective against variants of concern, including the Delta variant* Currently in Phase 2 clinical trials alone and in combination with bamlanivimab and etesevimab. * Shown to be effective against the Delta variant in preclinical studies There is an increase in the number of COVID-19 cases globally, with over 100,000 daily cases reported in the US alone. Q2 2021 BUSINESS UPDATE 4 bamlanivimab + etesevimab
DIVERSE PORTFOLIO THAT ALREADY COVERS most therapeutic areas 138 PROGRAMS UNDER CONTRACT Q2 2021 BUSINESS UPDATE 5 therapeutic area KNOWN therapeutic area TBD
Q2 2021 BUSINESS UPDATE 6 UNLOCK NEW TARGETS 72% 28% Our partners look to us to unlock new targets across a range of target types. For targets that have been selected by our partners, a third include challenging, high-value targets: STANDARD targets DIFFICULT targets multi-pass transmembrane targets high homology targets peptide-MHC targets
Empower NEW modalities for next-gen therapies 7 Our platform is an operating system designed to support many next-gen modalities, including: Q2 2021 BUSINESS UPDATE
115 PUCs with downstream participation Our Programs Under Contract with downstream participation span the entire spectrum of drug development firms: Q2 2021 BUSINESS UPDATE 8 40 PROGRAMS 24 PROGRAMS 5 PROGRAMS private & small cap biotech 46 PROGRAMS mid & large cap biotech global pharma other industries
FORWARD INTEGRATION TO ACCELERATE DRUG DEVELOPMENT 9 TECH STACK PARTNER DEVELOPMENT Preclinical Phase 1 Antibody Discovery Phase 2 Phase 3 & Approval Expansion into GMP / CMC manufacturing: Q2 2021 BUSINESS UPDATE ABCELLERA DEVELOPMENT COMMERCIAL SALE
Create & capture value with deeper positions Diverse deal structures provide the opportunity to deepen our position in successful molecules: 10 Q2 2021 BUSINESS UPDATE Royalties & Milestones Option to Invest Equity / Equity-like
11 Centralize innovation to make drug discovery faster, more efficient & more cost effective. Q2 2021 BUSINESS UPDATE
Q2 2021 Financials update
Partnership business growth shows great strength in 1H 2021. 13 Q2 2021 BUSINESS UPDATE FINANCIALS Note: Showing year-end figures except for most recent quarter. Historical results are not necessarily indicative of future results. Discovery Partners Programs Under Contract Program Starts # of Cumulative # of Cumulative # of
Four molecules in the clinic, over a dozen in preclinical development. 14 Q2 2021 BUSINESS UPDATE FINANCIALS
$27.6M revenue driven by COVID-19 program. 15 Q2 2021 BUSINESS UPDATE FINANCIALS Revenue USD $5.2M $3.0M $27.6M $1.0M $8.2M $21.2M $0.3M $11.2M Q2 2020 Q2 2021 +2.5X Note associated $3.6M royalty fee COVID-19 discovery program strong in Q2 2020
Operating expenses reflect continued strengthening of the platform. 16 Q2 2021 BUSINESS UPDATE FINANCIALS Q2 2021 $11.2M $1.5M Q2 2020 RESEARCH & DEVELOPMENT SALES & MARKETING GENERAL & ADMIN $15.0M $9.1M $1.3M $0.5M Operating Expenses USD Q2 2021 Q2 2020 Q2 2021 Q2 2020
NET EARNINGS (LOSS) 17 Q2 2021 BUSINESS UPDATE FINANCIALS Net loss of $2.3M: Equivalent to ($0.01) per share (basic & diluted). EARNINGS (LOSS) PER SHARE: BASIC & DILUTED $6.7M ($2.3M) Q2 2021 Q2 2020 Q2 2020 Q2 2021 Earnings / Loss USD $0.03 ($0.01)
Operations results financed investments in H1 and further strengthened liquidity. 18 Q2 2021 BUSINESS UPDATE FINANCIALS Cash Flows USD $594.1M $267.2M $792.6M ($0.7M) ($6.6M) Additionally, $65M AR + accrued AR balance at quarter end $20.5M ($61.5M) $33.0M
19 Thank You Q2 2021 BUSINESS UPDATE