AbCellera Reports Full Year 2024 Business Results

Rhea-AI Summary

AbCellera (ABCL) reported its full year 2024 financial results, marking a transition from a platform company to a clinical-stage biotech. The company recorded $28.8 million in total revenue, down from $38.0 million in 2023, and posted a net loss of $162.9 million ($0.55 per share) compared to $146.4 million loss in 2023.

Key operational highlights include reaching 96 partner-initiated programs (up from 87 in 2023) and advancing three additional molecules to the clinic, bringing the total to 16 clinical-stage molecules. The company maintains a strong liquidity position of $840 million, comprising $652.9 million in cash and equivalents plus $186 million in available non-dilutive government funding.

R&D expenses were $167.3 million, while G&A expenses increased to $72.7 million. The company is preparing to initiate Phase 1 trials for two programs, ABCL635 and ABCL575, and plans to start activities in its new clinical manufacturing facility in 2025.

Positive

• Strong liquidity position of $840M to execute strategy
• Advancement of 3 new molecules to clinic (16 total)
• Growth in partner-initiated programs to 96 (up 9 from 2023)
• Reduced R&D expenses by $8.4M year-over-year

Negative

• Revenue declined 24% to $28.8M (from $38.0M in 2023)
• Net loss increased to $162.9M (from $146.4M in 2023)
• G&A expenses increased 19% to $72.7M
• Q4 revenue of only $5.1M (18% of annual revenue)

Insights

Financial Analyst

AbCellera's 2024 results highlight a strategic pivot from a technology platform company to a clinical-stage biotech, though this transition comes with financial challenges. Revenue declined 24% to $28.8 million, while net losses expanded to $162.9 million, representing a burn rate of approximately $40 million per quarter.

Despite widening losses, AbCellera's financial runway remains substantial. With $840 million in available liquidity and a quarterly cash burn of roughly $40 million, the company has approximately 5+ years of operational runway without additional revenue growth - a significant advantage compared to many clinical-stage biotechs that typically maintain 18-24 months of cash.

The company's partnership model continues to show traction with 9 new program starts in 2024, bringing the total to 96. More importantly, the advancement of 3 additional partner molecules to the clinic (16 total) represents potential future milestone and royalty revenue streams. However, the uneven quarterly performance is concerning - Q4 contributed only 18% of annual revenue while accounting for 23% of operating expenses.

AbCellera's planned 2025 initiation of Phase 1 trials for ABCL635 and ABCL575 marks a critical inflection point in its business model evolution. The new clinical manufacturing facility further signals the company's commitment to vertical integration and reduced reliance on external partners for clinical development.

For investors, the key question is whether AbCellera's transition from a services-based revenue model to a clinical-stage biotech with longer-term royalty potential will ultimately deliver greater shareholder value. The substantial cash position provides time for this strategy to unfold, but near-term revenue growth catalysts appear

Biotechnology Expert

AbCellera's 2024 results reveal the complex financial dynamics of its strategic transformation from an antibody discovery platform into a clinical-stage biotechnology company. This transition represents a fundamental business model shift - moving from relatively predictable service revenue to a higher-risk, higher-reward model focused on clinical asset development.

The 24% year-over-year revenue decline to $28.8 million reflects this transition period where partnership fees are no longer the primary focus. Instead, the company is directing resources toward advancing its wholly-owned assets ABCL635 (targeting prostate cancer) and ABCL575 (for autoimmune conditions) into Phase 1 trials in 2025. These programs represent potential step-changes in value creation compared to the partnership model, though with significantly longer timelines to potential commercialization.

The advancement of partner-developed molecules to the clinic (now 16 total) creates a diversified portfolio of potential future revenue streams. Typically, antibody therapeutics require 7-10 years from discovery to market, suggesting AbCellera's earlier partnerships may begin generating meaningful milestone payments in the coming years if clinical progression continues.

AbCellera's investment in vertical integration through its new clinical manufacturing facility is strategically significant. While increasing fixed costs in the near term, this capability addresses a critical bottleneck in antibody development and potentially accelerates timelines while reducing COGS for future products - a competitive advantage few discovery-stage companies possess.

The $167.3 million R&D investment (580% of revenue) reflects the capital-intensive nature of this transition. However, with $840 million in liquidity providing a 5+ year runway at current burn rates, AbCellera has sufficient resources to advance multiple clinical programs through early-stage development without immediate financing pressure.

For the biotech sector, AbCellera represents an interesting hybrid model - combining technology platform economics with wholly-owned clinical assets - though investors will need patience as this strategy requires years to demonstrate clinical and commercial validation.

VANCOUVER, British Columbia--(BUSINESS WIRE)-- AbCellera (Nasdaq: ABCL) today announced financial results for the full year 2024. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“In 2024 we made significant progress in transitioning from a platform company to a clinical-stage biotech, including advancing our internal pipeline and completing significant investments in our capabilities. We also maintained our strong cash position, closing the year with over $800 million in available liquidity to execute on our strategy,” said Carl Hansen, Ph.D., founder and CEO of AbCellera. “As a result, we 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.”

FY 2024 Business Summary

• Earned $28.8 million in total revenue.
• Generated a net loss of $162.9 million, compared to net loss of $146.4 million in 2023.
• Reached a cumulative total of 96 partner-initiated program starts with downstreams.
• Reporting the advancement of three additional molecules in the clinic, bringing the cumulative total to 16 molecules to have reached the clinic.

Key Business Metrics

Cumulative Metrics	December 31, 2023	December 31, 2024	Change %
Partner-initiated program starts with downstreams	87	96	10	%
Molecules in the clinic	13	16	23	%

AbCellera started discovery on an additional nine partner-initiated programs with downstreams to reach a cumulative total of 96 partner-initiated program starts with downstreams in 2024 (up from 87 on December 31, 2023). AbCellera’s partners have advanced a cumulative total of 16 molecules into the clinic (up from 13 on December 31, 2023).

Discussion of FY 2024 Financial Results

• Revenue – Total revenue was $28.8 million, compared to $38.0 million in 2023. In both periods, the majority of revenues were research fees generated by our partnerships.
• Research & Development (R&D) Expenses – R&D expenses were $167.3 million, compared to $175.7 million in 2023, reflecting underlying continued growth in program execution, platform development, and investments in internal programs.
• Sales & Marketing (S&M) Expenses – S&M expenses were $12.8 million, compared to $14.2 million in 2023.
• General & Administrative (G&A) Expenses – G&A expenses were $72.7 million, compared to $61.0 million in 2023.
• Net Loss – Net loss of $162.9 million, or $(0.55) per share on a basic and diluted basis, compared to net loss of $146.4 million, or $(0.51) per share on a basic and diluted basis, in 2023.
• Liquidity – $652.9 million of total cash, cash equivalents, and marketable securities and approximately $186 million in available non-dilutive government funding, bringing total available liquidity to approximately $840 million to execute on AbCellera's strategy.

Q4 Highlights and Financial Results

• Abdera advanced ABD-147 into a Phase 1 clinical trial. AbCellera is a founding partner in Abdera, has a low-single-digit royalty stake in Abdera’s programs, and has a mid-single-digit equity ownership position.
• Reporting the advancement of two Trianni-license molecules into the clinic.
• Started one partner-initiated program with downstreams.
• Revenue for the fourth quarter of 2024 was $5.1 million, the majority of which was research fees generated by our partnerships, representing 18% of total revenue for 2024.
• Operating expenses totaled $77.8 million in the fourth quarter, or 23% of the total for 2024, and included investments made in co-development and internal programs.
• The net loss for the fourth quarter was $34.2 million, or $(0.12) per share, on a basic and diluted basis.

Conference Call and Webcast

AbCellera will host a conference call and live webcast to discuss these results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern 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 (Nasdaq: ABCL) discovers and develops antibody medicines for indications across therapeutic areas including cancer, metabolic and endocrine conditions, and autoimmune disorders. AbCellera 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.

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.

Partner-initiated program starts with downstreams represent the number of unique partner-initiated programs where we stand to participate financially in downstream success 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 the selection and initiation of projects by our partners and the resulting potential for near-term payments. Cumulatively, partner-initiated program starts with downstream participation indicate our total opportunities to earn downstream revenue from milestone fees and royalties (or royalty equivalents) 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 reached "open" status or has otherwise 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.

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.

AbCellera Biologics Inc. 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.)
	Year ended December 31,
		2022			2023			2024
Revenue:
Research fees	$	40,802		$	35,556		$	26,284
Licensing revenue		696			969			1,049
Milestone payments		900			1,500			1,500
Royalty revenue		443,026			—			—
Total revenue		485,424			38,025			28,833
Operating expenses:
Royalty fees		66,436			—			—
Research and development(1)		107,879			175,658			167,259
Sales and marketing(1)		11,270			14,180			12,779
General and administrative(1)		55,485			60,999			72,711
Depreciation, amortization, and impairment		27,843			24,395			90,850
Total operating expenses		268,913			275,232			343,599
Income (loss) from operations		216,511			(237,207	)		(314,766	)
Other (income) expense
Interest income		(16,079	)		(42,247	)		(38,473	)
Grants and incentives		(10,554	)		(14,155	)		(13,620	)
Other		4,045			(6,776	)		(62,278	)
Total other income		(22,588	)		(63,178	)		(114,371	)
Net earnings (loss) before income tax		239,099			(174,029	)		(200,395	)
Income tax (recovery) expense		80,580			(27,631	)		(37,538	)
Net earnings (loss)	$	158,519		$	(146,398	)	$	(162,857	)
Foreign currency translation adjustment		(1,671	)		(329	)		(2,658	)
Comprehensive income (loss)	$	156,848		$	(146,727	)	$	(165,515	)
Net earnings (loss) per share
Basic	$	0.56		$	(0.51	)	$	(0.55	)
Diluted	$	0.50		$	(0.51	)	$	(0.55	)
Weighted-average common shares outstanding
Basic		285,056,606			289,166,486			294,327,532
Diluted		314,827,255			289,166,486			294,327,532
(1) Exclusive of depreciation, amortization, and impairment

AbCellera Biologics Inc. Consolidated Balance Sheets (All figures in U.S. dollars. Amounts are expressed in thousands except share data.)
	December 31, 2023			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	133,320		$	156,325
Marketable securities		627,265			469,289
Total cash, cash equivalents, and marketable securities		760,585			625,614
Accounts and accrued receivable		30,590			33,616
Restricted cash		25,000			25,000
Other current assets		55,810			67,140
Total current assets		871,985			751,370
Long-term assets:
Property and equipment, net		287,696			340,429
Intangible assets, net		120,425			42,113
Goodwill		47,806			47,806
Investments in equity accounted investees		65,938			82,297
Other long-term assets		94,244			96,538
Total long-term assets		616,109			609,183
Total assets	$	1,488,094		$	1,360,553
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and other current liabilities	$	49,580		$	55,004
Contingent consideration payable		50,475			8,087
Deferred revenue		18,958			13,521
Total current liabilities		119,013			76,612
Long-term liabilities:
Operating lease liability		71,222			60,743
Deferred revenue		8,195			5,700
Deferred government contributions		95,915			149,893
Contingent consideration payable		4,913			—
Deferred tax liability		30,612			10,052
Other long-term liabilities		5,906			1,469
Total long-term liabilities		216,763			227,857
Total liabilities		335,776			304,469
Commitments and contingencies
Shareholders' equity:
Common shares: no par value, unlimited authorized shares at December 31, 2023 and December 31, 2024: 290,824,970 and 295,757,002 shares issued and outstanding at December 31, 2023 and December 31, 2024, respectively		753,199			777,171
Additional paid-in capital		121,052			166,361
Accumulated other comprehensive loss		(1,720	)		(4,378	)
Accumulated earnings		279,787			116,930
Total shareholders' equity		1,152,318			1,056,084
Total liabilities and shareholders' equity	$	1,488,094		$	1,360,553

AbCellera Biologics Inc. Consolidated Statement of Cash Flows (Expressed in thousands of U.S. dollars.)
	December 31, 2022				December 31, 2023				December 31, 2024
Cash flows from operating activities:
Net earnings (loss)	$	158,519			$	(146,398	)		$	(162,857	)
Cash flows from operating activities:
Depreciation of property and equipment		8,953				12,758				12,537
Amortization and impairment of intangible assets		18,890				11,637				78,312
Amortization of operating lease right-of-use assets		5,259				6,499				6,149
Stock-based compensation		49,481				64,183				67,581
Fair value (gain) loss on contingent consideration and investments		3,091				(8,018	)			(64,727	)
Other		3,342				2,237				(19,708	)
Changes in operating assets and liabilities:
Research fee and grant receivable		(22,715	)			(45,933	)			(75,119	)
Accrued royalties receivable		129,171				9,273				—
Income taxes (payable) receivable		(88,609	)			30,464				6,651
Accounts payable and accrued liabilities		(2,094	)			(15,104	)			10,635
Deferred revenue		6,183				(13,976	)			(7,931	)
Deferred grant income		9,264				39,521				33,967
Other assets		(1,375	)			8,980				5,954
Net cash provided by (used in) operating activities		277,360				(43,877	)			(108,556	)
Cash flows from investing activities:
Purchases of property and equipment		(70,660	)			(76,947	)			(78,396	)
Purchase of intangible assets		(2,000	)			(560	)			—
Purchase of marketable securities		(763,982	)			(1,021,510	)			(765,086	)
Proceeds from marketable securities		510,631				910,937				937,882
Receipt of grant funding		16,434				25,311				35,708
Investment in and loans to equity accounted investees		(25,679	)			(13,690	)			(19,626	)
Long-term investments and other assets		(17,369	)			(44,649	)			10,927
Net cash provided by (used in) investing activities		(352,625	)			(221,108	)			121,409
Cash flows from financing activities:
Payment of liability for in-licensing agreement and other		(4,383	)			(1,234	)			(729	)
Proceeds from long-term liabilities and exercise of stock options		2,755				11,590				13,498
Net cash provided by (used in) financing activities		(1,628	)			10,356				12,769
Effect of exchange rate changes on cash and cash equivalents		(9,599	)			589				(2,617	)
Increase (decrease) in cash and cash equivalents		(86,492	)			(254,040	)			23,005
Cash and cash equivalents and restricted cash, beginning of period		501,142				414,650				160,610
Cash and cash equivalents and restricted cash, end of period	$	414,650			$	160,610			$	183,615
Restricted cash included in other assets		3,115				2,290				2,290
Total cash, cash equivalents, and restricted cash shown on the balance sheet	$	411,535			$	158,320			$	181,325
Supplemental disclosure of non-cash investing and financing activities
Property and equipment in accounts payable		5,868				13,625				12,767
Right-of-use assets obtained in exchange for operating lease obligation		50,694				1,199				1,898

 

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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 were AbCellera's (ABCL) key financial results for full year 2024?

ABCL reported $28.8M in revenue (down from $38.0M in 2023) and a net loss of $162.9M ($0.55 per share), with $840M in total available liquidity.

How many partner-initiated programs did ABCL achieve in 2024?

ABCL reached 96 cumulative partner-initiated programs with downstreams in 2024, adding 9 new programs from the previous year's 87.

What is the status of ABCL's clinical pipeline development in 2024?

ABCL advanced 3 additional molecules to the clinic, bringing the total to 16 clinical-stage molecules, and is preparing to initiate Phase 1 trials for ABCL635 and ABCL575.

How much did ABCL spend on R&D and G&A in 2024?

R&D expenses were $167.3M (down from $175.7M in 2023), while G&A expenses increased to $72.7M from $61.0M in 2023.