AbCellera’s Financial Results and Business Update
AbCellera Biologics Inc. (ticker: ABCL) recently discussed their Q2 2024 financial results and provided a business update, focusing on the advancement of their internal pipeline and strategic partnerships. The company plans to submit Clinical Trial Applications (CTAs) for two of their programs, ABCL635 and ABCL575, in Q2 2025.
T-Cell Engager (TCE) Platform
AbCellera highlighted the potential of their T-cell engager (TCE) platform, especially in the fields of oncology and autoimmune diseases. They noted the commercial advantages of their TCEs over CAR T therapies, which are a type of treatment where a patient's T cells are changed in the laboratory so they will attack cancer cells.
Strategic Partnerships and Collaborations
The company also mentioned their strong liquidity position, with approximately $700 million in cash and equivalents, and their collaborative efforts with industry leaders such as Abdera, Invetx, and Eli Lilly.
Key Takeaways
- AbCellera is advancing their internal pipeline with plans to submit CTAs for ABCL635 and ABCL575 in Q2 2025.
- The company's TCE platform is targeting PSMA, B7-H4, an undisclosed target, and CD19 for autoimmune conditions.
- AbCellera is comparing their molecules against benchmarks, including Amgen 160, to ensure differentiation and plans to share data at upcoming conferences.
- The company is focusing on reducing cytokine release and toxicity in their PSMA TCE program while maintaining efficacy. Cytokine release syndrome is a condition that can occur after certain types of immunotherapy and can cause fever, nausea, and other symptoms.
- Strategic partnerships and collaborations are emphasized, with Lilly, Gilead, and Regeneron among the partners.
- AbCellera has a strong liquidity position with around $700 million in cash and equivalents.
Company Outlook
- AbCellera aims to develop a best-in-class asset for atopic dermatitis targeting the OX40 ligand. Atopic dermatitis is a condition that makes your skin red and itchy.
- The company is prioritizing internal programs and strategic partnerships to build their pipeline.
- They intend to create companies with partners once development candidates are identified.
Bearish Highlights
- There has been a reduction in research fees due to a focus on internal programs and co-development.
- An impairment assessment was attributed to contingent consideration and in-process R&D.
Bullish Highlights
- The company's TCE efforts are showing promise, with potential commercial advantages over existing CAR T therapies.
- AbCellera's molecules have demonstrated the ability to kill cancer cells with less cytokine release, which is expected to be replicated in animal studies.
- The company's platform offers an advantage in generating TCR memetic antibodies and targeting MHC peptide targets.
Misses
- Specific financial details regarding the collaboration with Lilly were not disclosed.
Q&A Highlights
- Management discussed the value of finding good ideas and complementary skills to create successful platforms.
- AbCellera believes they have an advantage over competitors like Regeneron in generating TCR memetic antibodies. These are antibodies engineered to recognize and bind to specific T-cell receptors.
- The focus for the first programs will not be on developing antibody MHC peptide targets, despite acknowledging the potential in this space.
AbCellera's recent earnings call underscored their commitment to advancing their internal pipeline and leveraging strategic partnerships. The company's efforts in developing their TCE platform, particularly for oncology and autoimmune diseases, demonstrate their focus on creating differentiated and effective therapies. With a robust financial position and collaboration with industry leaders, AbCellera is poised to make significant strides in the biotechnology sector. Management's excitement about their internal progress and future updates promises continued attention from investors and industry observers alike.
