AbCellera Biologics (ABCL) 6 Aug 24 2024 Q2 Earnings call transcript

In AbCellera's Q2 2024 earnings call, management highlighted their strategic focus on internal pipeline development, platform investments, and select strategic partnerships. The call was led by Tryn Stimart, Chief Legal and Compliance Officer, with Dr. Carl Hansen, CEO, and Andrew Booth, CFO, providing updates on the company's financial performance and pipeline progress.

Key Themes and Trends:

1. Internal Pipeline Progress: AbCellera's internal pipeline is progressing well, with both ABCL635 and ABCL575 moving towards Clinical Trial Applications. The company's T-cell engager (TCE) platform is showing promising results, with a focus on PSMA and B7-H4 targets in oncology and a CD19 program for autoimmune conditions. These programs hold potential for achieving better safety and efficacy due to their lower cytokine release compared to relevant clinical benchmarks. 2. Strategic Partnerships: AbCellera's partnership strategy is focused on co-development and select strategic collaborations, with recent notable achievements including IND clearance and FDA Fast Track designation for Abdera's ABD-147 and the expansion of partnerships with Eli Lilly, Regeneron, and Gilead. These collaborations demonstrate the company's ability to generate value through strategic alliances. 3. Financial Performance: The company's financial performance was highlighted, with a strong liquidity position, approximately $700 million in cash and equivalents, and $220 million in available government funding. AbCellera is investing in CMC and GMP capabilities, aiming for substantially complete facilities in early 2025.

Key Investor Questions:

1. Allison Bratzel, Piper Sandler, asked about the strategic interest and internal interest in advancing the TCE platform in oncology indications versus autoimmune indications like the CD19 program. Dr. Carl Hansen explained that the focus is on demonstrating the data's translational potential in vivo and evaluating cytokine release alongside tumor killing for a differentiated product. 2. Stephen Willey, Stifel, asked about the lower rate of CRS with TCEs in autoimmune diseases and the importance of product profile, including sub-cutaneous administration and dosing intervals. Dr. Carl Hansen emphasized the potential for TCEs to dominate over CAR T in terms of convenience and safety. 3. Andrea Tan, Goldman Sachs, asked about OX40 versus OX40 ligand approaches in atopic dermatitis and the potential for preclinical data ahead of the IND filing next year. Dr. Carl Hansen highlighted the class potential across many different autoimmune conditions and the focus on a best-in-class profile with potency, developability, and a high-titer cell line. 4. Evan Seigerman, BMO, asked about the potential for reducing CRS and AEs in the clinics and the decline in research fees. Dr. Carl Hansen discussed the potential for lower cytokine release with TCEs, which could lead to less toxicity and comparable tumor cell killing.

Conclusion:

AbCellera's Q2 2024 earnings call highlighted the company's strategic focus on internal pipeline development, platform investments, and select strategic partnerships. The progress of the internal pipeline, particularly in the TCE platform, and the successful collaborations with key partners demonstrate AbCellera's ability to generate value through innovation and strategic alliances. The company's focus on safety, efficacy, and convenience positions it well for future success in both oncology and autoimmune conditions.