Q1 2022 Abcellera Biologics Inc Earnings Call
Tryn Stimart: I am pleased to turn the call over to Carl Hansen. Thanks, Tryn, and thanks, everyone, for joining us today.
Thanks, Trent and thanks, everyone for joining us today.
Carl Hansen: It's my pleasure to provide an update on our business for the first quarter of 2022. Given the current market environment, more than ever, a strong balance sheet is critical. We ended the quarter with over $780 million in cash, cash equivalents, and marketable securities.
My pleasure to provide an update on our business for the first quarter of 2022.
Given the current market environment more than ever our strong balance sheet is critical.
We ended the quarter with over $780 million in cash cash equivalents and marketable securities as a result, we are.
Carl Hansen: As a result, we are ideally positioned to continue executing on our long-term strategy. Our strategy is to invest aggressively in our technologies, workforce, and infrastructure to establish a dominant competitive advantage in the invention and creation of therapeutic antibodies, and then to use this capability to build a large and diversified portfolio that is going long in the next generation of antibody drugs. Our investments are focused on three priorities. First, building technology and infrastructure to create a centralized engine for the discovery and development of antibody therapeutics at scale.
Ideally positioned to continue executing on our long term strategy.
Our strategy is to invest aggressively in our technologies workforce and infrastructure to establish a dominant competitive advantage in the invention accretion of therapeutic antibodies.
And then to use this capability to build a large and diversified portfolio that is going along in the next generation of antibody drugs.
Our investments are focused on three priorities first building technology and infrastructure to create a centralized engine for the discovery and development of antibody therapeutics at scale.
Carl Hansen: Second, executing on partner programs to build a diversified portfolio of stakes in next-generation therapeutic antibodies. And third, technology development to unlock new target classes and enable new modalities. For the past 10 years, Abcellera has been laser focused on this one thing.
Executing on our partnered programs to build a diversified portfolio of steaks and next generation therapeutic antibodies and third technology development to unlock new targeted classes and to enable new modality.
For the past 10 years have solar has been laser focused on this one thing.
Carl Hansen: Reinventing and Rebuilding a New Front End for the Therapeutic Antibody Industry. Starting from a clean slate, we've replaced legacy platforms with new workloads that take full advantage of modern technologies from biology, engineering, and computation. Our vision is to establish a centralized discovery engine that integrates all steps from a drug target to IND at greater speed, higher quality, and at much greater scale than has ever been achieved before. This strategy will only work if it is done at scale.
Reinventing and rebuilding a new front end for the therapeutic antibody industry.
Starting from a clean slate, we've replaced legacy platforms with new workload to take full advantage of modern technologies from biology engineering and complications.
Our vision is to establish a centralized discovery engine that integrates all steps from a drug target to IMD.
At greater speed, the highest quality and at much greater scale than it's ever been achieved before.
This strategy will only work if it is done at scale.
After a decade of work we believe it is now inevitable that we will achieve our vision and we also believe that there is no other company that we'll be able to catch up.
Carl Hansen: After a decade of work, we believe it is now inevitable that we will achieve our vision, and we also believe that there is no other company that will be able to catch up. We estimate that by the end of 2022, we will have invested more than half a billion dollars in building our capabilities, and we expect to have more than doubled this by the end of 2025. These investments, which are being made in our technology, our workforce, and our infrastructure, have given us a definitive technological advantage, and we've established a new technology curve that we believe is now accelerating.
We estimate that by the end of 2022, we will have invested more than half a billion dollars and building our capabilities and we expect to have more than doubled this before the end of 2025.
These investments, which are being made in our technology, our workforce and our infrastructure have given us a definitive technology advantage and we've established a new technology curve that we believe is now accelerating.
We expect our technology advantage will continue to grow as we forward integrate our capabilities.
Carl Hansen: We expect our technology advantage will continue to grow as we forward integrate our capabilities. This quarter, our teams achieved major milestones in the development and integration of high-throughput workflows for mid- to late-stage preclinical lead assessment and development.
This quarter.
Our teams achieved major milestones in the development and integration of high throughput workflows for mid to late stage preclinical lead assessment and development.
Carl Hansen: These capabilities are now being deployed to accelerate lead optimization and IND-enabling studies with our partners. We are also investing in our infrastructure to scale our business and our R&D efforts. This past quarter, we brought online three new facilities with lab and office space, including facilities in Sydney, Australia, the UK, and Vancouver, Canada. With future expansion and our GMP facilities, we expect to have more than 650,000 square feet of state-of-the-art facilities in place by the end of 2025. In the business of innovation, the most important factor for success is a high-performance workforce.
These capabilities are now being deployed to accelerate to meet optimization and IND, enabling studies with our partners.
We are also investing in our infrastructure to scale, our business and our R&D efforts.
This past quarter, we brought online three new facilities with lab and office space, including facilities in Sydney, Australia, The UK and Vancouver, Canada.
With future expansion and our GMP facility, we expect to have more than 650000 square feet of state of the art facilities in place by the end of 2025.
In the business of innovation the most important factor for success is a high performance workforce.
Carl Hansen: We continue to invest in building and training our team, which has roughly doubled since this time last year. Importantly, over two-thirds of our R&D team is building, integrating, and scaling our technologies to extend our competitive advantage, with the other third focused on partner programs. Unlike conventional biotech companies, we have made software development a pillar of our technology strategy. As of now, we have over 25% of our R&D team dedicated to software development, data science, and machine learning.
We continue to invest in building and training our team, which has roughly doubled since this time last year.
Importantly over two thirds of our R&D team is building integrating and scaling our technologies to extend our competitive advantage with the other third focused on partner programs.
Unlike conventional biotech companies, we have made software development, a pillar of our technology strategy.
As of now we have over 25% of our R&D team dedicated to software development data science and machine learning.
Carl Hansen: We believe the seamless integration of experimental capabilities with software development and data science is essential to achieving scale and to mastering the complexity of antibody discovery. Our second area of focus is building our portfolio. Today, we have 158 programs under contract, with 133 that have downstream participation.
We believe the seamless integration of experimental capabilities with software development and data science is essential to achieving scale and to mastering the complexity of antibody discovery.
Our second area of focus is building our portfolio today.
To date, we have 158 programs under contract with 133 that have downstream participation.
Carl Hansen: These programs address indications that span a broad range of therapeutic areas, including oncology, neurology, and immunology. As noted on our last earnings call, our success in business development last year has entered 2022 with a strong book of work. Accordingly, this year, we anticipate fewer multi-year, multi-target agreements, and we are prioritizing deals with greater downstream participation or that we view as having greater strategic value.
These programs address indications that span a broad range of therapeutic areas, including oncology neurology and immunology.
As noted in our last earnings call our success in business development last year entering 2022, and a strong book of work.
Accordingly, this year, we anticipate fewer multi year multi target agreements and we are prioritizing deals with greater downstream participation or that we view as having greater strategic value.
Carl Hansen: In line with this, we recently announced the expansion of our existing partnership with Empirico, a company that is using computation and human genetics data to identify and validate new drug targets. In addition to increasing the number of targets from 5 to 7, this new agreement provides Abcellera with the option, on a program-by-program basis, to co-invest in preclinical and clinical development in exchange for a greater ownership stake in each program. These new terms will apply to a first program that was started under the original agreement. This program, which is against an undisclosed GPCR target, has produced several potent functional antibodies and is now advanced for in vivo study.
In line with this we recently announced the expansion of our existing partnership with <unk> a company that is using complication in human genetics data to identify and validate new drug targets.
In addition to increasing the number of targets from five to seven this new agreement provides us with the option on a program by program basis to co invest in preclinical and clinical development in exchange for a greater ownership stake in each program.
These new terms will apply to our first program that was started under the original agreement. This program, which is against an undisclosed GPC. Our target has produced several potent functional antibodies and have now advanced in vivo studies.
Carl Hansen: Going from start to in-depot studies in under 12 months on a difficult target at the speed of our technology. It also shows how partnering with Abcellera can level the playing field for smaller companies. Similar to our previous announcement with EQRx, this deal structure has the potential to create a series of programs in which we have a greater ownership position, which could be up to 50%. These types of deals are aligned with our long-term strategy to build a portfolio that is diversified across indications, partner type, modality, and deal structure. We believe that diversification can be effectively used to achieve strong economic returns while at the same time avoiding the binary risk that is typically associated with biodiversity.
Going from start to Indigo studies in under 12 months on a difficult task.
But the speed of our technology.
It also shows how partnering with that seller can level, the playing field for smaller companies.
Similar to our previous announcements with <unk>. This deal structure has the potential to create a series of programs in which we have a greater ownership position, which could be up to 50%.
These types of deals are aligned with our long term strategy to build a portfolio that is diversified across indications partner type modality and deal structure we.
We believe that diversification can be effectively used to achieve strong economic returns while at the same time, avoiding the binary risk that is typically associated with biotech.
Carl Hansen: Moving on, I would now like to highlight the swift progress that we've made in applying our technology to unlock next-generation modalities. Specifically, I'm excited to update you on our progress in building a panel of CD3 binding antibodies for next-generation T-cell engagers. We first announced this effort in November of last year. For those unfamiliar with the modality, T cell engagers are a class of new cancer treatments designed to help the immune system recognize and kill cancer. They can be used alone or in combination with other cancer treatments such as checkpoint inhibitors. T cell engagers are bispecific antibodies that simultaneously bind to CD3, a receptor on T cells, and a specific tumor antigen.
Moving on I would now like to highlight Swift progress that we've made in applying our technology to unlock next generation modalities.
Specifically I am excited to update you on our progress in building a panel of CD three binding antibodies for next generation T cell engagements. We first announced this effort in November of last year.
For those unfamiliar with the modality T cell engages our class of new cancer treatments designed to help the immune system recognize and kill cancer.
It can be used alone or in combination with other cancer treatments such as checkpoint inhibitors.
T cell engages our bi specific antibodies that simultaneously binding CD three a receptor on T cells and a specific tumor antigen.
Carl Hansen: The success of these therapies is critically dependent on finding the right CD3 antibody. However, because CD3 is a notoriously difficult target, there have been very few antibodies available, forcing drug developers to reuse the same suboptimal CD3 antibodies. This challenge is compounded by the fact that technology for manufacturing bi-specifics is also not widely available, forcing drug developers to further compromise on the design of their therapies. To solve these problems, we applied our technology to build what we believe is now the largest panel of diverse, high-quality, fully human CD3 antibodies available.
The success of these therapies is critically dependent on finding the right <unk> III antibody.
However, because <unk> is in a touristy difficult target there've been very few antibodies available 14 drug developers to reuse the same sub optimal CD three antibodies.
This challenge is compounded by the fact that technology for manufacturing by specifics is also not widely available foreseen drug developers to further compromise on the design of their therapies.
To solve these problems we applied our technology to build what we believe is now the largest panel of diverse high quality fully human CD III antibodies available.
Carl Hansen: We recently presented this work at the annual meeting of the American Association for Cancer Research. Since this panel includes hundreds of unique antibodies, has a broad range of functional activities, and covers a large diversity of target sites, we believe it opens the door to fine-tuning T cell activation in a way that is specific to each tumor antigen.
We recently presented this work at the annual meeting of the American Association for cancer Research.
This panel includes hundreds of unique antibody has a broad range of functional activity and covers a large diversity of binding sites.
We believe it opens the door to fine tuning T cell activation in a way that is specific to each tumor antigen.
Carl Hansen: This should enable the design of therapies that achieve the correct therapeutic window and has the potential to extend the use of T-cell engagers to a broader range of cancers, including solid tumors. We are now actively working to demonstrate this application with a number of different tumor antigens. Following the AACR meeting, we have seen strong interest from partners, and we are exploring opportunities to bring these forward with our programs.
This should enable the design of therapies that achieved the correct therapeutic window and has the potential to extend the use of T cell engagement to a broader range of cancers, including solid tumors.
We are now actively working to demonstrate this application.
With a number of different tumor antigens.
Following the ACR meeting, we have seen strong interest from partners and we are exploring opportunities to bring these forward with our programs.
Andrew Booth: And are exploring opportunities to bring these forward into their programs. And with that, I'll hand off to Andrew Booth, our CFO, to provide an overview of our first quarter 2022 financial results. Thanks, Carl.
Pardon me and are exploring opportunities to bring these forward into their programs.
And with that I'll hand off to Andrew Booth, our CFO to provide an overview of our first quarter 2022 financials.
Thanks Carl.
Andrew Booth: I'm pleased to highlight the progress we've made on our key business metrics, beginning with our program start rate. We started 16 programs in the first quarter of 2022, taking us to a cumulative number of 84 program starts. And while the rate of starts will continue to be somewhat irregular, we expect a generally increasing trend year over year, as we have seen in the recent past. This is particularly true for the last year.
I'm pleased to highlight the progress we've made on our key business metrics beginning with our program starts.
We started 16 programs in the first quarter of 2022, taking us to accumulative number of 84 program starts and while the rate of starts will continue to be somewhat irregular we expected generally increasing trend year over year as we have seen in the recent past this.
This is particularly true for the last year. We've started 30 programs in the trailing 12 months ended March 31 two.
Andrew Booth: We started 30 programs in the trailing 12 months and on March 31st, 2022, compared to seven programs in the trailing 12 months and on March 31st, 2021. We ended the quarter with two new programs under contract with 36 unique partners. That is a 33% increase in programs under contract as compared to the end of Q1 in 2021. As we noted on a previous earnings call, with our total of 158 programs under contract, we have a strong book of work.
<unk> 2022 compared to seven programs in the trailing 12 months ended March 31 2021.
We ended the quarter with two new programs under contract with 36 unique partners that is a 33% increase in programs under contract as compared to the end of Q1 in 2021.
As we noted on our previous earnings call with our total of 158 programs under contract we have a strong book of work.
Andrew Booth: Our business development focus is on high-quality programs that are a complement to our existing partnerships and where we have a strong economic position for Abcellera. As we have indicated previously, total programs under contract is a leading indicator of the longer-term trajectory expected for program start.
Our business development focus is on the high quality programs that are a complement to our existing partnerships and where we have a strong economic position for <unk>.
As we have indicated previously total programs under contract is a leading indicator of the longer term trajectory expected for program starts.
Andrew Booth: Also in Q1 2022, our partners advanced one more molecule into the clinic, bringing our total molecules in the clinic to six at the end of the first quarter. We view this growing list of molecules in the clinic as specific examples of our near and mid-term potential revenue from downstream milestone fees and royalty payments in the longer term. The Emergency Use Authorization of Beth Levemad and the Concurrent U.S. Government Purchase Order in the first quarter contributed meaningfully to our Q1 results.
Also in Q1 2022, our partner's advanced one more molecules into the clinic, bringing our total molecules in the clinic to six at the end of the first quarter.
We view this growing list of molecules in the clinic as specific examples of our near and midterm potential revenue from downstream milestone fees and royalty payments in the longer term.
The emergency use authorization of the <unk> and the concurrent use government purchase order in the first quarter contributed meaningfully to our 2002, our Q1 results.
Andrew Booth: As mentioned on the prior slide, in the first... In the first quarter, we also had another molecule receive IND approval from the FDA. This molecule is from our Triani licensing activity, and at the request of our partner, more details about this molecule are not available at this time.
As mentioned on the prior slide in the first.
This quarter. We also had another molecule received IND approval from the FDA. This molecule is from our <unk> licensing activity and at the request of our partner more details about this molecule are not available at this time.
Andrew Booth: However, we would expect to be able to provide additional details on a future call as the molecule advances into clinical trials. We expect to see continued strong growth in these key driving million dollars of royalties we earned from shipments of Bamlanivimab and Bethalovimab during the first three months of the year. Research fees connected to our work on many programs with a wide range of partners in Q1 2022 were $9 million, a meaningful increase from the same quarter last year. This quarter, licensing fees were minimal, and we earned no new milestone payments.
Oliver we would expect to be able to provide additional details on our future call as the molecule that is into clinical trials.
We expect to see continued strong growth in these key drive $1 million of royalties, we earn from shipments of <unk> and that the loved them out during the first three months of the year.
Research fees connected to our work on mini programs. So the wide range of partners in Q1 2022 were $9 million.
Meaningfully increase from the same quarter last year.
This quarter licensing fees were minimal and we are no new milestone payments.
Andrew Booth: Looking ahead, we expect the majority of total 2022 revenue to be derived from royalties on COVID antibodies. Lilly sold and shipped 600,000 doses of betfalovimab to the U.S. government in the first quarter. The U.S. government retained an option to purchase a further 500,000 doses, which, if the option were exercised, would be shipped by July 31. Lilly has stated that the exercise of this option by the U.S. government and any other future sales of Beppalovumab are uncertain, and they are currently guiding to no or only limited further COVID antibody revenue.
Looking ahead, we expect the majority of total 2022 revenue to be derived from royalties on Covid antibodies.
We sold and shipped 600000 doses of <unk> to the U S government in the first quarter the.
The U S for government retained an option to purchase a further 500000 doses, which if the options were exercised would be shipped by July 31.
Lilly has stated that the exercise of this option by the U S government and any other future sales of <unk> are uncertain and they are currently guiding to no or only limited further COVID-19 antibody revenue.
Andrew Booth: As a reminder, under our agreement with Lilly for any COVID-19 products developed, we are eligible to receive royalties in the low to mid-teens for aggregate sales below $125 million and in the mid-teens to mid-20s for aggregate sales above $125 million. In the first quarter, Willey's sales of Bepthalovimab far exceeded $125 million, so any future sales of the product are eligible for the same higher royalty rate that we had been earning on Bablonivimab.
As a reminder, under our agreement with Lilly for any COVID-19 products developed we are eligible to receive royalties in the low to mid teens for aggregate sales below $125 million and mid teens to mid twenties on aggregate sales above $125 billion.
In the first quarter and early sales of depth of love them at far exceeded $125 million. So that any future sales of the product are eligible for the same higher royalty rate that we had been earning on that limit met.
Andrew Booth: We continue to view COVID royalties as a non-diluted source of funding to support our investments in capacity and platform capabilities, including investments in forward integration. Turning to operating expenses, our research and development expenses for the quarter were approximately $26 million, a $14 million increase over the previous year.
We continue to view Colin royalties as a known non diluted sources of funding to support our investments in capacity and platform capabilities, including investments into forward integration.
Turning to operating expenses, our research and development expenses for the quarter were approximately $26 million a $14 million increase over the previous year.
Andrew Booth: The overall increase reflects our ongoing investments in R&D, which will continue to grow as we expand our R&D team's capabilities and capacity. This allows us to deliver our partner programs as well as to enhance our technology stack organically. In sales and marketing, expenses for the quarter were approximately $2 million.
Overall increase reflects our ongoing investments into R&D, which will.
We will continue to grow as we expand our R&D team's capabilities and capacity. This allows us to deliver our partnered programs as well as to enhance our technology stack organically.
Sales and marketing expenses for the quarter were approximately $2 million.
Andrew Booth: In the same quarter of 2021, we had a non-recurring expense of nearly $1 million. This masks the ongoing growth of our business development team, capabilities, and reach and explains the small reduction compared to Q1. General and administration expenses for the quarter were approximately $14 million, compared to approximately $7 million in Q1. About $4 million of this increase were related to higher non-cash stock-based compensation expenses.
In the same quarter in 2021, we had a nonrecurring expense of nearly $1 million. This masks the ongoing growth of our business development team capabilities and reach and explains the small reduction compared to Q1 in 2021.
General and administration expenses for the quarter were approximately $14 million.
Compared to approximately $7 million in Q1, 2021 about $4 million of this increase were related to higher noncash noncash stock based compensation expenses the increases otherwise driven by the need to support the growth of the business.
Andrew Booth: The increase is otherwise driven by the need to support the growth of the business. We are reporting earnings of over $168 million for Q1 2022 compared to approximately $117 million for Q1 2021. In terms of earnings per share, this works out to earnings of $0.59 per share on a basic and $0.54 on a diluted basis for the quarter.
Yeah.
We are reporting earnings of over $168 million for Q1, 2022 compared to approximately $117 million in Q1 of 2021 in terms of earnings per share. This works out to an earnings of <unk> 59 per share on a basic and <unk> 64 on a diluted basis for the quarter.
Andrew Booth: This result reflects the recognition of royalties on Vanlinivumab and Bethalovumab and our ongoing investments to expand and enhance our discovery platform and to grow our diversified portfolio of long-term stakes in the next generation of antibody drugs while running discovery efforts for our partners. Looking at cash flows, operating cash flows, operating activities for the quarter contributed to $100 million in cash flow, which included the collection of the accrued accounts receivable balance from December 2021.
This result reflects the recognition of royalties on <unk> and that's the lovely map and our ongoing investments to expand and enhance our discovery platform and to grow our diversified portfolio of long term steaks in the next generation of antibody drugs, while running discovery efforts for our partners.
Looking at cash flows operating cash flows operating activities for the quarter contributed $100 million to cash flow, which includes the collection of the accrued accounts receivable balance from December 2021 that included royalties earned from damron diplomat in the last quarter of 2021.
Andrew Booth: That included royalties earned from Bambler and Intermad in the last quarter of 2021. The royalties from Q1 sales of Van Linnivumab and Bethgalovumab are reflected in our accrued receivables balance of $326 million as of March 31st, on the investing activity side. The quarter shows total investments of $26 million, largely related to investments in property, plant, and equipment. As a part of our treasury strategy, we continue to keep about $240 million invested in short-term marketable securities. As a result, we finished the quarter with over $780 million of unrestricted cash, cash equivalents, and marketable securities.
The royalties from Q1 sales have been Lenovo Mab and best Global map are reflected in our Q accrued receivables balance of $326 million as of March 31.
On the investing activity side.
The quarter shows shows total investments of $26 million.
Largely related to investments in property plant and equipment.
As a part of our Treasury strategy, we continued to keep about $240 million invested in short term marketable securities.
As a result, we finished the quarter with over $780 million of unrestricted cash cash equivalents and marketable securities.
Andrew Booth: In summary, we remain in an increasingly strong liquidity position that allows us to execute on our strategy, continue to build capacity, and to expand the platform. We believe that we have sufficient liquidity for well beyond the next three years. And with that, we'll be happy to take any questions. Operator.
In summary, we remain in an increasingly strong liquidity position that allows us to execute on our strategy continue to build capacity and to expand the platform. We believe that we have sufficient liquidity for well beyond the next three years and with that we'll be happy to take any questions.
Operator.
Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If, for any reason, you would like to remove that question, please press star followed by two.
Thank you.
Thank you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove that question. Please press star followed by Kim again to ask a question Thats Star one.
Operator: Again, to ask a question, that's star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. Our first question comes from... Tiago Foss with Credit Suisse. Tiago, your line is now open.
A reminder, if you are using a speaker phone. Please remember to pick up your handset before asking your question, we will pause here briefly ask questions registered.
Tiago Foss: Great, thanks for the good discussion. I'm going to have some of the progress. Perhaps just using it as a comparison model.
Our first question comes from.
Thiago Fox.
Credit Suisse.
Your line is now open.
Great. Thanks for taking the question and congrats on the progress.
So perhaps just using the physical experience is.
Tiago Foss: So you actually have the option to co-develop some of these drugs. I'm assuming that's mostly going to be on the financial side to keep your ownership, and not necessarily. Potential pivot to developing internal growth, but I guess the broader question is that that seemed like a pretty unique structure and a pretty unique deal. Is that something that you see, as you alluded to potentially becoming a little bit more? Collective and higher probability or higher quality partners or targets to the extent that that is possible, is that a trend that you see for the near future?
As a comparison models so you actually have.
Have the option to co develop some of these drugs I'm, assuming that's mostly going to be under financial privacy quicker ownership or not necessarily.
Potential periods of developing internal growth, but I guess the broader question is that seemed like a pretty unique structure in a pretty unique deal.
Is that something that you see as you alluded to potentially becoming a little bit more selective and higher probability of higher quality park target to the extent that it's possible.
Is that a trend you see for for the near future and how do you balance that out relatively to getting a larger book of business and a more diversified book of business.
Tiago Foss: And how do you balance that out relatively to getting a larger book of business, a more diversified book of business? Is that an actual tradeoff, or how do you see the universe of potential opportunities there in terms of quality, volume, and capital allocation in your account and even co-investment with your partners? I know that's a pretty broad question, but that'll be helpful.
A natural trade off or how do you see the universe of potential opportunities there in terms of quality volume and capital allocation and you attack and we've been co investment with their partner.
It's a pretty broad question, but that that would be helpful.
Yes.
Carl Hansen: Great. I will address that, Tiago. Thanks for joining the call today, Carl-Anthony. First, just to be clear, we would not characterize this as co-development. What we have is an option to co-fund on a program-by-program basis and on a staged basis various programs. So that allows us to put capital to work for programs that have come through. And, of course, we have done the work of discovering those who are well-positioned to make that assessment.
Great I will.
I'll address that Thiago thanks for joining the call today Karli engineer.
So first.
Just to be clear, we would not characterize this as co development. What we have is an option to co fund on a program by program basis and on a staged basis.
Various programs.
So that allows us to put capital to work for programs that have come through and of course, we have done the work and discovering those are well positioned to make that assessment.
Carl Hansen: That option we see as another way to add value in deals. It is not the only way that we'll do business. Our main strategy is to be the company that makes long-term investments that allow for rapid discovery at high quality and to do that at scale. And we are not dogmatic about the way that we will do deals to capture value from that.
That option, we see as another way to add value in deals.
It is not.
The only way that we'll do business really are.
Our main strategy is to be the company that makes long term investments that allow for rapid discovery at high quality and to do that at scale and we're not dogmatic about the way that we will do deals to capture value on that one.
Carl Hansen: The one consistent theme is that we're looking not to take one or two big bets on single assets but to diversify across a large number of assets, which, of course, we have done. And the shift this quarter is that, given that we have a strong book of work for 2021 that we're still working on, we are now looking for opportunities that we believe could meaningfully move the business, but we're not looking for those at the exclusion of our base business of doing discovery deals, which is still something that we're working on and we're excited about. All right, I understand. Thank you. Thank you. Thiago.
The one consistent theme is that were looking not to take one or two big bets on single assets, but to diversify across a large number of assets, which of course, we have done and the shift this quarter is too.
Given that we have a strong book of work from from 2021 that we're still working on.
Now looking for opportunities that we believe could meaningfully move the business, but we're not looking for those at the exclusion of our base business and doing discovery deals.
Which is still something that we're working on it we're excited about.
Okay.
Alright understood. Thank you.
Thank you Keith.
Thiago.
Puneet Souda: Our next question comes from... Puneet Souda with SVB Securities. Puneet, your line is now open. Yeah, hi Carl.
Our next question comes from Puneet.
<unk> with us.
<unk> Securities. Your line is now open.
Yes, Hi, Karl.
Okay.
Puneet Souda: Andrew, thanks for taking the question. So just following up on that, I mean, at a high level, has there been any shift towards exploring the optionality to invest in your own development separately, or otherwise, despite the, you know, obviously the focus on helping your partners grow and scaling up the business? Hi Puneet, Carl here, so I'm happy to take that one as well.
Andrew Thanks for taking the question. So just following up on that I mean.
At a high level has there been any shift towards.
Exploring optionality to invest into your own development separately or otherwise.
Despite the obviously the focus on helping our partners grow and scaling up the business.
Carl Hansen: Again, you know, our strategy is to build a competitive advantage on all the steps that sit between target identification and go all the way through to, but not including, clinical development. That's where we believe technology can make a difference to increase speed, quality, and open up new target opportunities. So it is not our intention to pivot and to work on internal programs, but we do have long-range R&D efforts underway at Abcellera, of which the CD3 work is a prime example, where we have seen a need and we have taken initiatives to solve that need, and in the process of proving that out, we will need to validate that across a variety of different, you know, target antigens and tumor antigens.
Hi opinion, Karl here, so I'm happy to take that one as well.
Again, our strategy is to build a competitive advantage on all of the steps that sit between target identification and go all the way through to but not including clinical development, that's where we believe technology can make a difference.
To increase speed quality and to open up new target opportunities.
So it is not our intention to pivot and to work on internal programs, but we do have long range R&D efforts underway to a seller of which the CD. Three work is a Prime example, where we have seen a need and we have taken initiatives to solve that need and in the process of proving that out.
We will meet the validate that across a variety of different target antigens in tumor antigens.
Carl Hansen: When we do that, you know, our plans for that are absolutely to partner those as soon as possible, and that scenario of doing R&D that leads to assets that could be partnered is not at all different from what we've done in the past. In fact, that's exactly what we did with COVID-19.
We do that our plans for that are absolutely.
The partner those as soon as possible.
And that scenario.
Doing R&D that leads to assets that could be partnered is not at all different from what we have done in the past in fact, that's exactly what we did with COVID-19.
So it is it is the nature of this R&D that you need to work on real things and when you work on real things.
Andrew Booth: So it is the nature of this R&D that you need to work on real things, and when you work on real things, you have the possibility to anticipate needs from partners to the benefit of both sides. Got it. Thanks for clarifying. When the new program starts, maybe this is for Andrew.
You have the possibility to anticipate needs from partners.
The benefit of both sides.
Got it thanks for clarifying.
On the New program starts maybe this is for Andrew I appreciate that your focus on new program starts versus contract adds.
Puneet Souda: I appreciate that you're focused on new program starts versus contract ads. But as I look at it, you know, in the last two quarters, you had nine program starts, and then only six this quarter. Maybe just help us understand, is this, you know, capacity? Or is it just a first quarter seasonality or any other reason why we're seeing fewer program starts despite your focus on new program starts largely? And is there capacity or any other thing that's getting the expansion in the numbers here?
But as I look at it last two quarters you had nine program starts and then only fix this quarter, maybe just help us understand is this.
Our capacity.
Or is it just the first quarter.
Now or any other reason why we're seeing fewer program starts despite your focus on.
The new program starts largely and is there capacity or any other thing thats getting the expansion in the numbers here.
Andrew Booth: Great question, Puneet. You know, as we've already said, the start of the program on a quarter-to-quarter basis will be slightly irregular, and the real metric to watch is kind of the longer-term trend that this program starts, and that's why in the prepared remarks I commented on the trailing 12-month growth over the previous period. It will be irregular, and you have to also remember that in each of these programs, we are doing more and more work on each of the programs that we start, which is actually an increase in the capacity that we have within the organization and our capabilities.
Great question Puneet.
We've already said the program starts on a quarter to quarter basis will be slightly irregular and the real.
Trick to watch is kind of the longer term trend that these programs starts and thats why in the prepared remarks I commented on.
The trailing 12 months growth over the previous period, it will be irregular and you have to also remember that in each of these programs. We are doing more and more work on each of the programs that we start which is actually an increase in the capacity that we have within the organization and the capabilities. So we will continue to see this irregularity.
Andrew Booth: So we will continue to see this irregularity going forward, and that should be expected. I think what really is to be watched is that longer-term trend as well as the sense of how much more we're doing on a per-program basis. Okay, got it. And then this last one, Carl, this is for you. Yeah, sorry, go ahead.
And going forward and that should be expected I think what really has to be watched is that longer term trend as well as the sense of how much more we're doing on a per program basis.
Okay got it and then just last one Carlos.
Yes, sorry go ahead.
Carl Hansen: I was just going to add on top of that that if you look out over the next two, three years, as I mentioned, we are making heavy investments in forward integration. So work on translational science, CMC, and GMP manufacturing. We are starting to take programs forward on the front end of that right now. And so you can expect that in terms of capacity building, that dimension of doing more per program is, I suspect, at least as big as the volume metric that is reflected in program starts. So that's important to keep in mind. Okay, that's super helpful.
I was just going to layer on top of that if you look out over the next two to three years as I mentioned, we are making heavy investments in forward integration. So work on translational science CMC GMP manufacturing.
We are starting to take programs forward on the front end of that right now and so you can expect that in terms of capacity building.
That dimension of doing more for our program.
This effect is at least as big as as the volume metric that is reflected in program starts. So that's important to keep in mind.
Puneet Souda: And then, Carl, you know, given the current cash position and the cash generation that's ongoing with the telemimab and the COVID antibodies, I appreciate that that can be unpredictable, and that can completely change. But when you look at the overall market today, multiples have continued to contract in both the therapeutics and broadly across healthcare. Has that, you know, changed your view or the length or how you're looking at the opportunities at this point in time? Thanks, Puneet.
Okay.
Book.
And then Carl.
Given the current cash position and the cash generation that ongoing with the told him a mab.
And the Covid antibodies appreciate that can that is unpredictable and that can completely change but.
When you look at the overall market today multiples have continued to contract in both therapeutics and broadly across health care has that changed your view or the length or how youre looking at the opportunities at this point in time.
Okay.
Carl Hansen: I'll interpret that question as being one about inorganic additions to the technology platform. We have a history of that, and we always survey the landscape to look for technologies that either would expand or improve our existing platform. That said, at this point, we believe we have assembled the best front end in the industry, and the path now to complete this right up to IND is going to be primarily focused on organic growth in translational science, CNC, and GMP.
Thanks Puneet.
<unk>.
Ill interpret that question as being one about inorganic additions in the technology path yes.
We have a history of that and we always survey.
The landscape to look for technologies that either would expand or improve our existing platform.
That said.
At this point, we believe we have assembled the best front end in the industry and the path now to complete this right up to <unk>.
He is going to be primarily focused on organic growth in translational science CMC and GMP. So we are certainly open to opportunities.
Carl Hansen: So we are, you know, certainly open to opportunities, but at this point, it's very much an internal effort to complete this project that we started a decade ago. And given the capital and given that this is mostly about execution and team building, we believe completing that now is inevitable.
But at this point, it's very much.
On internal facing effort to complete this project that we started a decade ago and given the capital and given that this is mostly about execution and team building.
We believe completing that now is inevitable.
Okay got it thanks guys.
Puneet Souda: Thanks, guys. Thank you, Puneet. Our next question comes from... Stephen Wiley with Stiefel. Can you just remind us? What are the inflection points that allow you to do that?
Thank you puneet.
Our next question comes from.
Stephen Wiley with.
Stifel can you just remind us.
What are the inflection points that allow you to make these investment decisions I know youre, saying that its.
Stephen Willey: I know you're saying that, Stege. It is kind of curious if you could maybe speak to some of the triggers which allow you to then make these decisions. Sure, Steve, I can, and Bill, it's going to go to trigger an option on our part to The first of those would be in funding an IND filing, and then at various breakpoints in clinical development, which would line up with, you know, phase 1, 2, 3 type activities.
It's staged.
But just kind of curious if you could maybe speak to some of the <unk>.
Triggers.
Which allow you to then make these decisions.
Sure Steve.
And bill is going to go to.
Trigger an option on our part.
Continuing to fund the work the first of those would be in funding to <unk> filing and then.
And there will be stages at various breakpoints in clinical development, which would line up with.
Phase 123 type activities.
Stephen Willey: Okay, so the tape with you and then perhaps across the board, We have seven potential targets that are covered under the deal that you may have. I guess a different ownership position in each of these assets depending upon your view of the opportunity. That's exactly right. Yeah, we would, we would look at the great Andrew.
Okay. So is it safe to assume then perhaps across the.
Seven potential targets that are covered under the deal that you may have.
I guess a different a different ownership position in each of these assets depending upon your view of the opportunity.
That's exactly right.
We would.
We would look at go ahead Andrew.
Andrew Booth: Yeah. Yeah, I was gonna say that's exactly the right way to think about it, Stephen. So, and this is very similar to other deals, similar deals we've done, where, as you would imagine, the more you invest, the longer the greater ownership position that you take, if it's a partner, it chooses to advance the molecule where we have not invested, then, you know, a position that we would have depending on how long we have funded it for.
Yes, I was going to say that's exactly the right way to think about it Steven.
And this is very similar to other deals of similar deals we've done where as you would imagine the more the more.
First along the greater ownership position that you take and it's a partner chooses to advance the molecule where we have not invested then.
We should position that we would have depending on how long we have targeted for.
Andrew Booth: Okay, that's helpful. And, and, and I guess maybe just given some of the attrition that we've seen in the therapeutic space, specifically, specifically against, are amongst those kind of smaller cap development stage biotechs. Just wondering if you've seen any kind of impact on the business development front and, you know, I guess whether or not you think that the model that you guys provide to a potential company is more attractive in a liquidity-constrained environment than perhaps it is when things are better.
Okay. That's helpful and then.
And I guess, maybe just given.
Given some of the attrition that we've seen.
Therapeutic space specifically.
Pacifically against.
We're amongst those kind of smaller cap development stage biotechs just.
Wondering if you've seen any kind of impact.
On the business development front.
I guess, whether or not you think that the model that you guys provide to two potential company is more attractive.
Liquidity constrained environment.
Rhapsody is when things.
Things are better.
Andrew Booth: Thanks to Carl here, yeah, obviously, it's been trying times in the market, as mentioned in the comments, our business in activity in business. I believe that we have a couple of questions from the audience.
Thanks, Steve.
Yes, so obviously, it's been trying times in the market.
As mentioned on the comments our business in activity in business.
Predominant discussions I believe it.
Carl Hansen: A good part of that is a response to the data that was presented at ACR on the CD3 work. It's probably too early to know exactly how market conditions are going to impact all partners, but I would agree with you that our model provides a way for companies to continue advancing programs, to do that more quickly and more capital efficiently while preserving their resources. So we typically structure our deals with value sharing based on success in clinical development and ultimately in the approval of therapies.
The good part of that is a response to the data that was presented at ACR on CD three work.
Sure.
It's probably too early to know exactly how market conditions are going to impact them all.
Partners, but I would agree with you that our model provides a way for companies to continue advancing programs to do that more quickly and more capital efficient.
Gently while preserving their resources, so we typically structure our deals.
With value sharing based on success in clinical development and ultimately in the approval of therapies and that lines up well with companies that are.
Carl Hansen: And that lines up well with companies that are cautious about building internal capabilities and taking on the complexity and cost of distributed outsourcing. So we think that could well be a tailwind, but I think it's still a bit early to tell.
Not.
That are cautious about building internal capabilities and taking on the complexity and cost of distributed outsourcing. So we think that could well be a tailwind, but I think it's still a bit early to tell.
Alright thats helpful. Thanks for taking the questions.
Yes.
Thank you Steven.
Stephen Willey: Alright, that's helpful. Thanks for taking the question. Thank you, Stephen. Our next question comes from... Gaurav Guptura with Buran Capital Markets. We're off. Your line is now... So when looking at new park opportunities, are you only entertaining deals?
Our next question comes from.
Gaurav <unk> Serra with.
Lauren GAAP capital markets.
Ross Your line is now so when looking at new park opportunities.
These are you only entertaining deals.
Gaurav Guptura: of that, you know, entitled Abcellera at a downstream participation, or are you still open to... Andrew here? We really only look exclusively at business development opportunities that have downstream participation. So that has been the case for some time.
That title accelerated downstream participation or are you still open to.
Okay, Andrew here I know when we.
We really only look exclusively at business smaller opportunities that have downstream participation. So that has been the case for some time I guess there are some with the gates Foundation of Delta where we.
Andrew Booth: I guess there are some with the Gates Foundation or DARPA where we have managed to make really investments in the platform and capabilities. And sometimes those deals we would do on a case by case basis, there's a very different dynamic in that grant funding environment than it is when you're doing discovery on actually a commercial, potentially commercial molecule. And all of those deals have downstream participation. And then, you know, if you're looking more long-term... At what level are you looking to continue diversifying and protecting a broader focus on, and they will continue to explore new modalities as they see fit? Carl here; I can take that one.
<unk> managed to.
So really investments in the platform and capabilities and sometimes those deals we would do on a case by case basis, that's a very different dynamic in that credit environment.
It is when Youre doing discovery on actually a commercial potentially commercial molecule and all of those deals have downstream participation.
And then if youre looking more long term.
What level are you looking to continue diversifying and attract a broader focus on.
Among client devices continue to dominate the pipe the pipeline, including from new products as well you eventually envision.
Pipeline as you know it seems like you guys are.
Continuing to explore new modality.
Carl here I can take that one so we are squarely focused on therapeutic antibodies defined question around it. So that would include monoclonal five specifics other modality that includes antibodies as part of the competition amount.
Carl Hansen: So we are squarely focused on therapeutic antibodies defined quite broadly. So that would include, you know, monoclonal, bispecifics, and other modalities.
Carl Hansen: Thank you. Thank you. We expect that, you know, the main drivers of this sector are going to be discoveries in biology that are amenable to antibody therapies in a variety of different ways. It's also going to be new modalities that allow you to use antibodies to target novel mechanisms. Andrea Tan, Srikripa Devarakonda, Poon Mah, Puneet Souda, Andrew Booth, Malcolm Hoffman, at large numbers of well-validated opportunities, but where the industry has struggled mightily over the past couple of decades to, I have a long-term research effort on that front, looking particularly at GPCRs and Ion Channels.
Sure.
We expect that main drivers.
Of this sector are going to be discoveries in biology.
That are amenable to antibody therapies in a variety of different ways.
Also going to be new modalities that allow you to use antibodies to get novel.
And in terms of action within that class, we are very bullish on big investments on that capability.
And third it's going to be about being able to unlock.
Yeah.
Large numbers of well validated.
The giant market opportunity, but where the industry has struggled mightily over the past couple of decades.
I have a long term research efforts.
On that front looking particularly.
Gaurav Guptura: Those are tough problems, but we're making good progress, and we aim to be a major enabler for that part of the sector. Got it. Makes sense. That's it for me.
<unk> nine channels those are tough problems, but we're making good progress risks and we.
We aim to be a major.
Enabler for that part of the sector.
Okay.
Got it makes sense that's it for me curious guys.
Thanks, Michael.
Gary Notchman: Cheers, guys. Thank you. Gary Notchman with.
Gary Nelson with <unk>.
Gary Notchman: CMO Capital Markets. Barry, your line is now open. Great. Hi, guys. Good afternoon. So for the six molecules in the clinic, what's the earliest that we might hear about some clinical data from the non-Lily BMAP molecules? You added one in the first quarter through Triani.
BMO capital markets.
Yes.
Gary Your line is now open.
Hi, guys. Good afternoon, so for the six molecules in the clinic whats the earliest that we might hear about some clinical data from the non Lilly <unk> molecules you added one in the first quarter through <unk> could you be on pace to put a few molecules in the clinic every year.
From your different partnerships and when could those other four generate good revenue for you whether it's in terms of hitting certain milestones or ultimately.
Getting to market, but the best pilots Delaware.
Gary Notchman: Could you be on pace to put a few molecules in the clinic every year from your different partnerships? And when could those other four generate good revenue for you, whether it's in terms of hitting certain milestones or ultimately getting to market, but that's probably still a ways away? Yeah, hey, Gary, good to hear from you. Yeah, exactly right.
Yeah, Hey, Gary good to hear from you, yes exactly right. This is why we focus on the portfolio of course, we have a large portfolio.
Andrew Booth: This is why we focus on the portfolio. Of course, we have a large portfolio. That is, we would expect that molecules from that portfolio would start to hit the clinic consistently. Of course, we also expect some attrition in that portfolio; that's just the nature of drug development. With regard to those molecules that are the six that we show, of course, two of them are COVID-related molecules, so we've seen the progress of those. And we don't have a lot of visibility into individual programs, and actually, we've designed the portfolio strategy to move away from looking at programs, like things on a program by program basis.
That is we would expect.
Consistently molecules from that portfolio would start to hit the clinic of course, we also expect some attrition in that portfolio. That's just the nature of drug development with regards to those molecules that are the six that we show of course two of them are the COVID-19 related molecules. So we've seen the progress of those and we don't have a lot of <unk>.
Ability on an individual programs and actually we have designed the portfolio strategy to move away from looking at.
Right.
Like things on a program by program basis. So I think we would hope to get more molecules would enter the clinic.
Andrew Booth: So I think we would hope that more molecules would enter the clinic in the coming year. And, of course, in years to come, we will start to see that that is a more steady stream. And then we will be watching, you know, the progress of those molecules as they advance through the clinic. There'll certainly be some milestone revenue, and I would think that there will be some material milestone revenue in the coming years.
In the coming year, and then of course in the years to come and we will start to see that.
That is a more steady stream.
And then we will be watching.
Progressive those molecules that <unk> through the clinic.
Certainly be.
Some milestone revenue and I would think that there'll be some material milestone revenue in the next in the coming in the coming years.
Andrew Booth: But remember, these molecules right now, aside from the COVID molecules, are in phase one. So they're still very early in clinical development, and they'll mature over the coming three to five years.
Remember these molecules right now aside from the Covid molecules are in phase one. So there is still very early in the clinical development.
And they will mature over the coming like three to five years and as they progress through we've got millions and millions of dollars milestone, which every time a molecule would advance through clinical development and we would expect to see that and recognize it as it happens.
Andrew Booth: And as they progress through, we've got, you know, millions of dollar milestones, which every time a molecule would advance through clinical development, and we would expect to see that and recognize it as that happens. Okay, that's helpful. And then Carl, regarding the panel of CD3 antibodies, can you have multiple partnerships for different types of cancers? How soon can you potentially partner those? Are there any real gating factors?
Okay. That's helpful.
And then Carl regarding the panel of CD three antibodies.
Can you have multiple partnerships for different types of cancers.
How soon can you potentially partner those are there any real gating factors and then would you potentially keep some of these for yourself I.
I mean, it sounds like from what you said earlier that you're probably going to partner out all of these.
These antibodies, but I'm just curious if there is even a possibility that you might keep some of these.
Your own development.
Gary Notchman: And then would you potentially keep some of these for yourself? I mean, it sounds like from what you said earlier that you're probably going to partner out all of these antibodies. So I'm just curious if there's even a possibility that you might keep some of these in your own development. Thanks, Kerry. You know, so first, you know, we do not have plans to, in the foreseeable future, move into clinical development with these.
Thanks, Gary.
So first we do not have plans to.
In the foreseeable future move into clinical development with these.
Carl Hansen: So, it is really about building technologies that enable this class of therapeutics. The underlying hypothesis here is that it is not true that a single or a small number of CD3 antibodies are optimal for any given tumor antigen or class. To me, that is, on its face, very likely to be true. It hasn't yet been proven, largely because people have been restricted in the diversity that they have.
So it is really about building technologies that enable this class of therapeutics. The underlying hypothesis here is that it is not true that a single or a small number of <unk> three antibodies are optimal for any given tumor antigen or class.
To me that is on its face very likely to be true. It hasnt yet been proven largely because people have been restricted in the diversity of that they have so we have taken the initiative to build.
Carl Hansen: We have taken the initiative to build, in a very short time, what I believe is the biggest panel in the industry. We are now going to do work internally, combining these with a variety of different tumor antigens to prove that the potency and T cell activation are dependent upon the appropriate combination of CD3 and the tumor binder, and it is not something that you can solve with just one arm. That work, I feel we need to do to validate and get people to understand that paradigm of thinking about this class.
In a very short time, what I believe is the biggest panel in the industry and we now are going to be working internally combining those with a variety of different tumor antigens.
To prove that the potency and T cell activation is dependent upon the appropriate combination of <unk> and the tumor binder and is not something that you can solve with just one arm so that work.
I feel we need to do to validate and get get people to understand.
That paradigm of thinking about this class.
Carl Hansen: In terms of partnership, we are already getting a ton of interest. We have had, I would say, almost twice the business development activity in the last month than is typical, and most of that has been driven by companies that are in the oncology space that haven't been able to secure technologies to get a good position in what looks to be one of the most exciting classes of therapeutics, and they see this as an opportunity to get ahead, and we exist as an organization to help people more quickly and effectively develop better drugs. That's what we're focused on right now. Okay, that's great. That's it for me.
In terms of partnering we're already getting a ton of interest we've had I'd say almost twice the business development activity in the last month.
Then as typical and most of that has been driven by companies that are in the oncology space.
Haven't been able to secure technologies to get a good position in what looks to be one of the most exciting classes of therapeutics.
And they see this as an opportunity to get ahead, and we exist as an organization to help people more quickly and effectively develop better drugs. So that's what we're focused on right now.
Okay. That's great that's it for me thanks.
Gary Notchman: Thanks. Thank you, Gary. Our next question comes from Doe Kim with Piper Sandler. Doe, your line is now open.
Thank you Gary.
Our next question comes from.
Joe Kim with Piper Sandler.
Doe Kim: Great. Good afternoon, everyone. Thanks for taking my question. I just have one.
Your line is now open.
Doe Kim: I know you can't say much about the Empirico collaboration program, the first one that you completed, Discovery, but I was hoping that you could talk about maybe how challenging it would be to get antibodies to this first GPCR target using conventional means and how you were able to get your process through. Thanks, Joe. Yeah, we're very excited about that program. You know, so it's difficult to say for any given target how difficult it would be with one technology or another.
Great. Good afternoon, everyone. Thanks for taking my question I just have one.
I know you can't say much about the <unk>.
<unk> collaboration program. The first one that you completed discovery, but I was hoping that you could talk about may.
Maybe how challenging it would be to get antibodies to this first GPC our target using conventional means and how you were able to get you a process through.
Thanks, Joe Yeah, we're very excited about that program.
So it's difficult to say for any given target how difficult it would be with.
With one technology or another what I can say is that in this case, it's the GPC our target which is widely viewed as one of the most difficult classes, probably next time channels.
Carl Hansen: What I can say is that, in this case, you know, it's a GPCR target, which is widely viewed as one of the most difficult classes, probably next to Ion Channels. What is, you know, particularly impressive about this one is that we went from initiation of this to generation of a very large panel of antibodies and many highly potent functional antibodies that have moved into in vivo testing at a speed that I believe is unprecedented for this class.
What is.
Particularly impressive about this one is that we went from initiation of this two generation of a very large panel of antibodies and many highly potent functional antibodies that have moved into.
In vivo testing.
Speed that I believe is unprecedented for this class so we.
Carl Hansen: So we are, you know, very excited about the quality and diversity of this program, the molecules that have been developed in this program, but also about the speed. And I see this as a proof point, yet another proof point, for our main thesis that if you spend the time to really build the engine, if you work on the technology to increase performance and generate speed, you can turn ideas into therapeutic candidates much faster than has been conventionally done in the industry. That's something that we showed before on Vamonimumab. We showed a best in class molecule with Bepzalovimab.
We are very excited with the quality and diversity of this program.
Molecules that have been development program, but also on the speed and I see this as a.
Proof point, yet another proof point for our main thesis that if you spend the time to really build the engine. If you work on the technology to increase performance and generate speed you can turn ideas into therapeutic candidates much faster than has convention had been done in the industry. That's something that we showed before.
Carl Hansen: We have generated what I think is the largest panel of CD3s in the space of 6 months, and the 1st program with Empirico shows us also succeeding on GPCR targets. Our goal is to keep performing and layering on that evidence, demonstrating that we've got a technology that is really moving the needle on therapeutic antibodies. Thanks, Carl. Congratulations on the progress. Thank you, Joe. Our next question comes from Antonia Borovina. Your line is now open. Great, thanks for taking my question. Most of them have already been answered, so just a couple.
Founded in the map, we showed a best in class molecule with Pepsi logo map, we have generated what I think is the largest panelists CD three in the state for six months and the first program with empirical shows US also succeeding on GPC our targets our goal is to keep.
To keep performing and layering on that evidence.
Demonstrating that we've got a technology that is really moving the needle therapeutic antibodies.
Thanks, Carl Congrats on the progress.
Thank you Jill.
Antonia Borovina: So I know that you're very limited with what you can discuss regarding the TRIANI partner program advancing into the clinic, but I was wondering if you could remind us of the typical deal structure for the TRIANI partnerships and how they compare to the rest of your pipeline. And then if you could just give us an update on what you're forecasting for your cash runway. Thanks. Yeah, thanks, Antonio. Good to hear from you.
Our next question comes from.
And Tony Blair your.
Your line is now open.
Great. Thanks for taking my question most of them have been answered so just a.
Paul.
So I know that Youre very limited with what you can discuss regarding the triage any partner program advancing into the clinic, but just wondering if you can remind us.
The typical deal structure or the <unk> partnership and how they compare to the rest of your pipeline.
And then if you could just give us an update on what youre forecasting for your cash runway.
Antonia Borovina: On the Triani licenses, you know, these molecules are, or these agreements were things that were negotiated by Triani when it was under different ownership. We are typically seeing low single-digit royalty amounts on these and milestones that are typical of our own programs. But the royalty rates are significantly lower, I would say, than the typical program.
Yes, Thanks, Tony and good to hear from you.
On the <unk> licenses.
These molecules are these agreements for things that we negotiated by treat any when it was under if those partnerships. We are typically seeing low single digit royalty amounts on these.
Milestones that are typical of our own programs, but the royalty rates are significantly lower I would say than the typical program and as we as we outlined in the 10-K on our full year results for 2021, we showed what those average royalty rates are for our internal programs and the programs that we have under contract.
Andrew Booth: As we outlined in the 10k on our full year results for 2021, we showed what those average royalty rates are for our internal programs and the programs that we have under contract. For the cash runway, as we noticed here, we have a very healthy cash balance, and we indicated in the remarks that even with the big investment that we're making in facilities and the team and expanding the team, and all this work that we're doing advancing the platform and technology, we have a sufficient runway for at least the next three years, even given that very large investment that we're planning to make in the platform.
Andrew Booth: Okay. Thank you, Antonia. That concludes today's question and answer session. I will now pass the conference back over to Carl Hansen for any closing remarks. Thank you everyone for joining us today. This is an exciting time for Abcellera. Thank you for attending, and we look forward to keeping you updated on our progress on future calls. That concludes today's Abcellera Biologics Inc. Quarter 1 2022 Earnings Results and Business Call. Thank you for your participation. You may now disconnect your line. Thank you.
For the cash runway as we as we noticed here, we have a very healthy cash healthy cash balance and we indicated in the remarks that even with the big investments that we're making in facilities and team and expanding the team and all of this work that we're doing at batching the platform technology.
We have sufficient runway for at least the next three years, even given that very large but large investment that we're planning to make in the platform.
Okay. Thank you.
Yeah.
Thank you Antonio.
That concludes today's question and answer session.
I'll now pass the conference back over to Carl Hansen for any closing remarks.
Thank you everyone for joining us today.
This is an exciting time for accelerator. Thank you for attending and we look forward to keeping you updated on our progress on future calls.
That concludes today's upsell or biodiesel.
<unk> incorporated quarter, one 2022 earnings results and business call. Thank you for your participation you may now disconnect your line.
[music].
Okay.
Okay.
Thanks.
Yes.
Yeah.