AbCellera Biologics Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue and an increase in operating losses compared to the same periods in 2023. For the third quarter of 2024, total revenue was $6.5 million, a decrease of 1% from $6.6 million in Q3 2023. For the nine months ended September 30, 2024, revenue fell 18% to $23.8 million from $28.8 million in the prior year. The company attributed this decline to reduced research fees, although licensing revenue increased by 17% to $218,000 in Q3 2024.
Operating expenses surged significantly, with total expenses for Q3 2024 reaching $100.2 million, up from $61.5 million in Q3 2023. This increase was driven by a substantial rise in general and administrative costs, which rose 33% due to higher compensation and legal expenses, as well as a 544% increase in depreciation, amortization, and impairment expenses, primarily due to a $32 million impairment charge related to in-process research and development (IPR&D) from the acquisition of Trianni.
The net loss for Q3 2024 was $51.1 million, compared to a net loss of $28.6 million in Q3 2023. For the nine-month period, the net loss increased to $128.6 million from $99.2 million in the previous year. The net loss per share also widened, from $(0.10) to $(0.17) for Q3 and from $(0.34) to $(0.44) for the nine months.
As of September 30, 2024, AbCellera's total assets were $1.39 billion, down from $1.49 billion at the end of 2023. Cash, cash equivalents, and marketable securities decreased to $643.1 million from $760.6 million at the end of 2023, reflecting cash flow used in operations and investments in R&D and facility construction.
Strategically, the company underwent a restructuring in November 2023, reducing its workforce by approximately 10% to focus on clinical development. AbCellera has also secured significant government contributions, including up to CAD $225 million from the Government of Canada and CAD $75 million from the Government of British Columbia, aimed at developing antibody medicines.
The company continues to face challenges, including reliance on partnerships for revenue, with no marketed proprietary products and no significant recurring revenue expected until additional programs are secured. AbCellera's future performance will depend on the success of its partners in developing and commercializing antibody therapies.
About AbCellera Biologics Inc.
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