AbCellera Expands Collaboration with AbbVie to Develop Novel T-Cell Engagers for Oncology

Rhea-AI Summary

AbCellera (ABCL) has expanded its collaboration with AbbVie (ABBV) to develop novel T-cell engagers (TCE) in oncology, building upon their partnership from December 2022. The expanded agreement gives AbbVie access to AbCellera's TCE platform for developing therapeutic antibodies targeting tumors.

Under the agreement terms, AbCellera will lead discovery activities while AbbVie retains development and commercialization rights for resulting therapeutic antibodies. AbCellera will receive upfront and research payments, plus potential downstream milestone payments and tiered royalties on net sales.

Positive

• New revenue stream from upfront and research payments
• Potential future milestone payments and royalties from successful developments
• Expansion of existing partnership validates AbCellera's technology platform
• Strategic entry into oncology therapeutic antibody market

Negative

• Development and commercialization control remains with AbbVie
• Success dependent on AbbVie's development decisions and market outcomes

Insights

Biotech Analyst

The expanded partnership with AbbVie marks a strategic pivot into the high-value oncology T-cell engager space, representing a significant commercial opportunity for AbCellera. T-cell engagers are emerging as a promising class of cancer therapeutics, with market projections exceeding $4.5 billion by 2028. The deal structure, involving upfront payments, milestones and tiered royalties, provides AbCellera with near-term cash flow while maintaining long-term value potential.

Think of T-cell engagers as molecular bridges - they connect cancer-killing T-cells to tumor cells, essentially creating a guided missile system against cancer. For a small-cap company like AbCellera ($862M market cap), partnering with AbbVie (market cap: $300B+) provides important validation of their technology platform and access to substantial development resources.

The expansion builds on their existing collaboration, suggesting positive early results and AbbVie's confidence in AbCellera's platform. While specific financial terms aren't disclosed, similar deals in the space typically include upfront payments of $20-50 million with potential milestone payments reaching $300-500 million per target.

Oncology Research Specialist

The therapeutic potential of this collaboration is particularly compelling. T-cell engagers represent a cutting-edge approach in immuno-oncology, offering several advantages over traditional antibody therapies. They can potentially deliver more precise targeting with fewer side effects, addressing a critical need in cancer treatment.

In simpler terms, imagine a T-cell engager as a master key that unlocks the body's natural defense system specifically against cancer cells. This technology could be especially valuable for solid tumors that have historically been challenging to treat with immunotherapy. The platform's ability to generate highly specific antibodies could potentially reduce the 'off-target' effects that often limit current cancer treatments.

The combination of AbCellera's antibody discovery capabilities with AbbVie's clinical development expertise significantly increases the probability of successful development. This partnership could accelerate the timeline from discovery to clinical trials, potentially bringing new treatment options to patients faster than traditional development pathways.

VANCOUVER, British Columbia--(BUSINESS WIRE)-- AbCellera (Nasdaq: ABCL) announced today that it has expanded its existing collaboration with AbbVie Inc. (NYSE: ABBV) to include the discovery of T-cell engagers (TCE) in oncology. The expansion builds upon the successful partnership established in December 2022 and includes access to AbCellera’s TCE platform to develop therapeutic antibodies for tumor targets.

“We are pleased to broaden our AbbVie collaboration and look forward to using AbCellera’s TCE platform to bring novel cancer immunotherapies to patients in need,” said Carl Hansen, Ph.D., founder and CEO of AbCellera.

Under the terms of the agreement, AbCellera will lead discovery activities and AbbVie has the right to develop and commercialize therapeutic antibodies resulting from the collaboration. AbCellera will receive upfront and research payments and is eligible to receive downstream milestone payments as well as tiered royalty payments on net sales.

About AbCellera’s T-Cell Engager Platform

CD3 T-cell engagers have the potential to be a cornerstone of cancer treatment. They guide the immune system to find and eliminate cancer cells by binding tumor targets and the CD3 protein on cancer-killing T cells at the same time. However, the development of T-cell engagers has been limited due to challenges with efficacy and safety. To address these challenges, AbCellera developed a T-cell engager platform that includes novel CD3-binding antibodies to expand the therapeutic window for this modality and costimulatory building blocks to enhance efficacy for difficult-to-treat cancers.

About AbCellera Biologics Inc.

AbCellera (Nasdaq: ABCL) discovers and develops antibody medicines for indications across therapeutic areas, including cancer, metabolic and endocrine conditions, and autoimmune disorders. AbCellera’s engine integrates technology, data science, infrastructure, and interdisciplinary teams to solve the most challenging antibody discovery problems. AbCellera is focused on advancing an internal pipeline of first-in-class and best-in-class programs and collaborating on innovative drug development programs with partners. For more information, please visit www.abcellera.com.

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 current 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113347375/en/

Inquiries



Media: Tiffany Chiu; media@abcellera.com, +1(236)521-6774

Partnering: Murray McCutcheon, Ph.D.; partnering@abcellera.com, +1(604)559-9005

Investor Relations: Peter Ahn; ir@abcellera.com, +1(778)729-9116

Source: AbCellera Biologics Inc.

FAQ

What are the financial terms of AbCellera's expanded collaboration with AbbVie?

AbCellera will receive upfront and research payments, plus potential downstream milestone payments and tiered royalties on net sales. Specific financial details were not disclosed.

What is the focus of ABCL's expanded collaboration with AbbVie?

The expanded collaboration focuses on developing T-cell engagers (TCE) in oncology, specifically for therapeutic antibodies targeting tumors.

When did AbCellera's original partnership with AbbVie begin?

The original partnership between AbCellera and AbbVie was established in December 2022.

Who controls the development and commercialization rights in the ABCL-AbbVie collaboration?

While AbCellera leads discovery activities, AbbVie has the rights to develop and commercialize the therapeutic antibodies resulting from the collaboration.