Q3 2023 AbCellera Biologics Inc Earnings Call
Good afternoon, and welcome to seller as third quarter 2023 business update conference call. My name is Kate and I wont facilitate the audio portion of today's interactive broadcast if at any time during the call you need access to an operator, please dial star zero on your phone at this time I would like to turn up.
All over to trend Stein Mart, upsell or as chief legal and compliance Officer you May proceed.
Okay.
Thank you good afternoon, and welcome to accelerate its third quarter 2023 business update.
We are pleased to having with US today as we discuss the results announced in our press release issued after the market closed today, which you can find on our Investor Relations website.
With me on the call today are Dr. Carl Hansen, <unk>, Chief Executive Officer, and President and Andrew Boots accelerate as Chief Financial Officer.
Webcast portion of this call contains a slide presentation that we will refer to during the call. If you are following along on the phone and wish to access the slide portion of this presentation. You may do so on the Investor Relations section of our website for.
For those of you who have accessed the streaming portion of the webcast. Please be aware that there may be a delay and that you will not be able to post questions via the web.
This presentation may contain forward looking statements pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1095 any forward looking statements are based on management's current expectations and are subject to certain risks and uncertainties.
Please review, our SEC filings for risk factors that could impact our future performance our presentation and SEC filings are available on our Investor Relations website.
Note that all dollar has referred to during our call today are U S. Dollars now I am pleased to turn the call over to Dr. Carl Hansen.
Thanks, Brian.
The highlight this quarter is that we are advancing assets from two at Sabra led programs into IND, enabling studies.
The first asset ABC L 575 targets Ox 40 ligand and is being developed as a potential best in class therapy for the treatment of atopic dermatitis and other indications in autoimmunity and inflammation.
We discovered <unk> 575 during our collaboration with <unk> as part of a co development program that was initiated in 2021.
We took ownership of this program in September after <unk> was acquired by Revolution medicines.
ABC all 575 has been designed with potency PK and develop the ability to enable less frequent dosing, which provides a potential for differentiation.
At present, we believe ABC all 575 has the potential to be one of the first asset to follow and with telematics, which is being developed by Sanofi and which recently had a positive phase III readout, providing evidence for the potential of this new class.
Our second asset a bcl 635 is against an undisclosed target with an indication in metabolic and endocrine conditions.
It has the potential to be a first in class therapy therapy in a market segment estimated at more than $2 billion in annual sales.
For strategic reasons.
We will disclose more details of this program an indication only once it reaches the clinic.
<unk> 65 is the first <unk> lead asset derived from our <unk> and ion channel platform and is aligned with our strategy of leveraging our expertise and technology advantage to create an internal pipeline of first in class assets.
We anticipate additional development candidates in the next 12 to 18 months from this platform and we will announce them only when we have committed to move them forward into IND, enabling studies.
We would caution that studies, leading to an IND carry significant risk.
That said if things progress as expected, we would anticipate IND submissions for both ABC L 575, and <unk> 35 in 2025.
For both programs, we see the potential to get early efficacy.
For both programs, we see the potential to get early efficacy data from clinical trials.
We believe that these two assets and future programs will provide growing evidence that we can repeatedly generate potential first in class and best in class therapies.
Given the breadth of our discovery activities, we anticipate generating more assets and we will have the bandwidth or capital to advance ourselves.
We will be selective in the ones, who bring forward into the clinic and expect partnering and out licensing to remain an important part of our strategy.
Turning to partnering in September we announced a new partnership with insight working in the area of oncology.
We also expanded our existing collaboration with Regeneron.
Under the original agreement Regeneron has exercised its rights to advanced antibody candidates from two completed programs, including one against the GPC our target other programs are still active.
In addition to the two partnerships completed in the quarter yesterday, we also announced a collaboration with prelude therapeutics.
To co develop novel precision antibody drug conjugates or adcs in oncology.
We're excited to be working with the prelude team on the development of a new class of therapeutics with the first program focused on antibodies armed with small molecule protein integrators.
In summary, I would like to highlight that developments over this quarter are aligned with key business objectives that we laid out last year.
First we said we would elect to at least one candidate from our <unk> and ion channel platform and at least one candidate from our co development platform for IND, enabling studies in 2023.
With the commitment to advance <unk> 575, and <unk> 35, we have achieved that milestone.
Second we said, we would focus on high value strategic partnerships or deals with groups like Regeneron prelude and insight are aligned with this strategy.
We also said we would advance our T cell engagement platform and expect it to enter into a significant transaction in 2023.
The science and the development of this platform continued to progress as expected and tomorrow, our team will be presenting new data at <unk> in San Diego.
While we Havent completed the transaction yet we have increasing conviction in our TCE platform, both in its potential to generate internal assets and as a basis for strategic partnerships.
And with that I'll hand, it over to Andrew to discuss our financials Andrew.
Thanks Carl.
First let me highlight progress made on our key business metrics during the third quarter of 2023. This quarter. We worked on for new discovery programs, taking us to accumulative total of 110 partnered program starts and as a reminder, the number of starts in any given quarter will be irregular over the trailing 12 months. We have started work on 18 partner initiated programs.
We agreed to five new programs under contract in the quarter and ended the third quarter of 2023 with 182 programs under contract with 42 unique partners as we've stated in the past we continue to focus on strategic partnerships.
Partnerships rather than on deal volume.
Our key business metrics do not include programs that are initiated by <unk> internally.
In Q3 of 2023, we saw no Barack advanced an additional molecule into the clinic for a cumulative total of 10 molecules in the clinic, we view our 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.
Turning to revenue revenue in the quarter was approximately $7 million almost entirely driven by research fees relating on work on partnership initiated discovery programs. This compares to research fee revenue of approximately $8 million in Q3 of 2022. This.
This reduction of research fee revenue is consistent with our increasing focus on more strategic partnerships, where a seller has a larger participation in the long term value of the program.
This quarter's revenue also includes some small amounts related to licensing fees and unlike a year ago, there were no royalties or and no milestone payments earned in the quarter.
Turning to operating expenses, our research and development expenses for the third quarter were approximately $38 million, representing a roughly $11 million increase over the same period of the previous year.
This increase reflects the growth of program execution, continuing platform development and our investment in internal programs.
In sales and marketing expenses for the quarter were $3 5 million compared to just over $3 million in Q3 of 2022 and in General and administration expenses were just over $14 million compared to just under $14 million in Q3 of the previous year, reflecting good operating leverage.
Okay.
Looking at earnings we are reporting a net loss of roughly $29 million. This compares to earnings of approximately $27 million in Q3 of 2022. The loss reflects our continued investments in the business and the absence of the royalty revenues that were present in Q3 of the previous year.
In terms of earnings per share. This quarter's results workout to a loss of <unk> 10 per share on a basic and diluted basis.
Looking at cash flows operating activities for the first nine months of 2023 used roughly $24 million in the absence of regular royalty revenues, we would expect our quarterly operating cash flow to be irregular and often negative as we continue to invest in the growth and capabilities of the company.
Of note from operations and investment activities in the third quarter, we used approximately $10 million of cash.
As a part of our Treasury strategy, we have over $600 million invested in short term marketable securities our investment activities for the first nine months of the year include approximately $113 million net increase in these holdings.
All other investment activities amounted to approximately $95 million, including.
Including approximately 62 million invested in property plant and equipment and approximately 37 and other long term investments invest.
Investments in property plant and equipment are of course, driven in large part by our ongoing work to establish CMC and GMP manufacturing capabilities.
Altogether, we finished the quarter with over $813 million of total cash cash equivalents and marketable securities.
We have historically been successful at raising non dilutive sources of capital and as a reminder, our continuing GMP facility build out is separately co funded by the government of Canada Strategic Innovation Fund. This available capital does not show up on our balance sheet with over $800 billion on the balance sheet and the unused portion of our previously secured governor.
Funding, we continue to have over a $1 billion in total available liquidity.
This is more than our liquidity position from one year ago, when we reported our Q3 of 2022 financials.
With respect to our operating expenditures our capital needs are very manageable and we will remain in a strong liquidity position that allows us to execute on our strategy, which includes advancing <unk> led programs towards and into the clinic with excellent visibility and runway. We continue to believe that we have sufficient liquidity to fund well beyond the next three years.
Our platform and pipeline investments and overall growth.
And with that we'll be happy to take your questions operator.
Thank you we will now begin the question and answer session if you'd like to ask a question. Please press star followed by a one.
If for any reason you would like to remove your question. Please press star followed by a tail as a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking your question again to ask a question. It is star followed by a one.
The first question will be from the line of Allison <unk> with Piper Sandler Your line is now open.
Hi, Good afternoon. Thank you for taking my question and thanks for the update.
I guess could you maybe just speak more on what we can expect to see for the T cell engaging platform tomorrow clusters at CE and and really just help frame. What's the bar you think potential partners are really looking for.
In order to tap confidence that your TCE platform really is best in class and pulled the trigger on a partnership.
Your latest thoughts on the set up there would be very helpful. Thanks.
Sure. Thanks, Alison Carl here happy to take that.
So we have.
Continue to make great progress here the city presentations really focus on.
Two developments on the R&D platform.
One of them is the advancement of the platform towards being able to generate antibodies against MHC peptide targets.
We see that as highly differentiated and a capability that opens up.
Broad array of targets that are express inside the cell, but that get presented to the surface of the cell.
And our highly specific to tumors, so being able to do that solves one of the key problems in Tcs, which is.
Being able to find targets that are specific and reduce the on target off tumor toxicity.
The other big highlight is.
Evidence that shows that combining a broad diversity of CD three binders with ortho map platform.
And being able to change both the affinity of binders and the Epitope importantly allows you to obtain profiles in the mixture of cytokine release, and killing that you cannot obtain using just affinity alone or many of the existing antibodies.
That was the original thesis and we have continued to push that forward and see it as very compelling in cases in particular, where dose limited toxicity has been a problem.
What's not being shown at city, but something we're also excited about is more recent data that very very clearly shows that you can decouple cell, killing from cytokine release, that's something that has been pursued for some time and in our hands. We think we have.
By far the clearest demonstration of that as compared to benchmarks that we've tested our antibodies against <unk>.
So all of that is going very well.
The timing of a transaction I think it's always difficult to predict.
But we are engaged with the top groups and have built relationships over the last year and on all fronts I think it is going the right direction.
Thank you.
The next question will be from David line of Robyn Curnow Skiff with Travis Your line is now open.
Hi, guys. Thanks for my question.
One that may not be able to answer, but maybe you could address it more broadly as you are.
Capabilities. So regeneron. This morning mentioned that Theyre ox 40 on their call.
May not be optimal.
Targeted it may not be safe versus Pecos Hikmet how.
Can you design things differently with this molecule to improve its specificity or make it a safe therapeutic index achievable.
And maybe a less potent healer cable linker, but I think our if you want to address that.
Molecule specifically for competitive reasons, maybe just address flicker capabilities more broadly because I think a lot of companies are facing these challenges where they have a suboptimal drug that could be better and how are you thinking about that thanks.
Sure Robin.
Happy to take that.
Yes.
So I think your question was related to <unk> 575, which is our antibody that we're bringing forward against ox 40 ligand.
Maybe maybe a few things to say about that we're excited about that one for a few reasons one is.
We see this as a very compelling class not just for atopic dermatitis before a wide array of different conditions and inflammation.
It is.
It is a pathway for which there is a robust scientific literature that suggests that it is able to affect multiple pathways in the inflammation cascade.
And that it can do it in a way that not only suppresses the activation and proliferation of T effector cells and memory cells that are associated with disease, but also that can interact with T regulatory cells helped to reset.
Homeostasis in the immune system.
That that that body of evidence makes it a compelling pathway. The recent readout from Sanofi that we mentioned.
It looks completely in line with that so it looks to be safe it looks to be effective and what was interesting in that study is that the effects seem to get better over time, which is what you would expect if you were able to reset the immune system. So for all those reasons. We think the pathway is very exciting and has broad potential in a growing space in atopic dermatitis and also in other conditions.
<unk> 75, as I said, we believe is one of the first behind it now you don't know what people have inside their pipelines that they havent disclosed but based on disclosures. We think this one has the potential to be one of the first to come behind it and we have engineered in a way.
We think provides the combination of potency and develop ability in formulation and half life.
Given an advantage in dosing. So that's why we're excited with that particular one.
As it compares I think you mentioned regenerative depicts depicts into obviously an amazing drug.
Our view is that in inflammation.
Not every patient responds to the therapies that are available and there is a lot of interest in finding alternatives and perhaps even combining therapies in the future. So.
We don't see that as.
A negative at all but rather as an example of the huge opportunity that exists in this space.
And just as a follow up do you think you can improve upon I mean their view is that it.
At current ones. They have are just not going to our current ones that are on the market are too.
Dirty I would use that word like there are two broad like what that sell our technology can you use to understand can make a better ox 40, because that is a hot target right now so maybe.
So <unk> as well and then well.
Back in the queue Great day.
Thanks, Robyn <unk>.
To be clear. So we have an antibody that is going to get ox 40 ligand not ox 40.
There is of course an.
Ox 40 antibody that is being developed by Amgen.
That antibody is a depleting antibody. So it's an antibody that binds to <unk> 40, which is presented on T cells and that causes the ablation of those T cells.
There is some evidence that that may cause problems I mean, I don't want speculate too much.
Antibody that we have engaged as an ox 40 ligand, which is not presented on T cells, but rather on antigen presenting cells and our antibody has been engineered to be non of bleeding. So it has FC function that does not result in the killing of the antigen presenting cells.
Very similar to <unk>, which I mentioned, which is being developed by Sanofi. So we don't we don't see a problem with it being dirty we don't see.
Our big problem with toxicity and of course, we're getting that information from the disclosure that Sanofi has made and they've got the most advanced molecule so to our knowledge.
This looks like.
Quite clean profile and one that is effective and one that has a lot of potential in inflammation and other conditions.
Great. Thank you.
Thank you.
The next question will be from the line of Andrea Pan with Goldman Sachs. Your line is now open.
Good afternoon. Thanks for taking my question Karl maybe one more question for you on on 575 here strategically can you speak to the decision to pursue atopic derm as the initial indication just curious given how crowded that landscape is if there are other indications where mechanistically it might make sense to also bring this asset forward, but one where you could.
An advantage of being first in class. Thanks, so much.
Thanks, Andrew.
That's a great question I mean.
Atopic dermatitis is the most obvious place because there is the data out already showing efficacy.
It's also in Germany is one of the easier places to get early clinical data that shows efficacy, let's say in a phase one or two a trial. So that's probably the main reason.
We.
We feel based on the pathway and what we've seen in the clinic from other molecules that this has a very high likelihood of working not just in atopic dermatitis, but in other conditions, that's our sense right now.
But this is a competitive space as you mentioned so right now what's most important is that we not delay in getting this molecule through to the start of clinical development and through the early trials.
Sure.
There's going to be a lot of consideration in thinking between here and there and so we may we may change tack, but it's also perhaps we're saying that.
At some point I think it would be advantageous to find a large and highly enabled partner to accelerate clinical development. Because this is a molecule that would have potential in a variety of different classes and something that probably has done.
And by Big companies, so that that would be our current feeling right now in terms of subsequent steps, but as I said the priority right now is to get us through to clinical development to get that early proof of concept.
Perfect and maybe a follow up there can you just remind us of your willingness to advance. These programs on your own I guess, maybe the extent to which you would you would bring them through clinical development.
Sure.
Happy to address that.
This is a question that.
I get a lot and it's often framed as what is your strategy for internal programs.
My response to this is normally that.
It's wrong to think of a single strategy for internal programs every program needs to be considered on its own merits every program will have different timelines different cost different operational challenges in clinical development and of course as things progress there'll be different priorities in the company and capital allocation and different strategic opportunities.
The way, we think about it is that right now we are committed to bring <unk> 635, and $5 75 through to the end of phase one.
It's possible that could get intercepted with the right.
Business opportunity.
But we are full steam ahead to do that.
After we get to that point.
We'll evaluate the risk reward and do what's best for the business and where we think we're going to get the best return on investment.
I would not take it off the table that we would advance one into further trials.
If we thought that that was the best path.
And just Andrew if I can add there as well.
This is Andrew speaking.
<unk>.
The announcement, we had earlier in the year about receiving some government funding allow us to move molecules that included funding of molecules that we would events into phase one and received some significant amount of government funding that make it quite capital efficient for us to do that so this is this is completely consistent with that announcement in that strategy.
Great. Thanks, so much guys.
Thank you.
Next question will be from the line of Stephen Willey with Stifel. Your line is now open.
Yes, good afternoon, thanks for taking the questions.
Congrats on procuring.
The ox 40 ligand antibody I think it's interesting that.
Use of both.
And burst.
Antibody platform discovery companies.
I guess with respect to the pre lease deal.
Can you just talk a little bit about.
What you think makes a good antibody for the purposes.
Delivering the greater.
I guess do you.
Do you want to have the same level of internalization that you sometimes see.
On some more kind of chemo conventional adcs.
Or is or is there a different kind of chemical angle that you want to take here and just given that I think the greater that there.
Hoping to administer here this market too.
As I think relevant and smarter for deficient tumors.
Probably relevant across a variety of different tumor types, requiring a variety of different target antigens does this collaboration contemplate the notion that you could develop multiple antibody scaffolds that are targeted towards a specific tumor type.
And then they can just kind of con piece their version of this market to the greater on top of that thanks.
Thanks, Steve Great questions.
Let me start by saying that.
We're excited about the collaboration we have emphasized our focus on strategic partnerships.
This one is certainly a five star strategic partnership in that we have two teams that are very experienced and have deep expertise on two sides of the molecule that you need the small molecule development and the antibody development.
Coming together to enable what we think will be an exciting new class of antibody conjugates.
The first program as you rightly pointed out is an antibody conjugate four into greater it will be related to <unk> I think that may have even been.
Mentioned in the press release.
Hi.
The question about what exactly do you want an antibody to do to be effective I think is is the thing that we're going to be working together to figure out.
We've got some some hypothesis about what might be needed.
But.
The proof is ultimately in the assays that you do pre clinically to show that you can get a good therapeutic index and deliver enough integrator.
Fact that you wanted the tumors.
So this is the first of the programs. There is certainly is the potential for that particular small molecule to greater to go into different cancers and that would require a different antibody. So thats on the table.
The collaboration has the potential also to go into other antibody drug conjugates.
The concept is to use small molecules not just as sort of a blunt instrument poison like many cytotoxic, but to be much more targeted at precision pathways.
And that could be integrators that could also be other molecular entities.
The team at prelude is able to bring forward.
So we're at the very beginning of this one of the big values for both teams as we get into a new space and we will be learning and working together.
And we're excited about the chance to do something that makes a difference for patients.
And hopefully and I've got confidence that there'll be a successful one and we'll be able to update you as it progresses.
Very good thanks for taking the questions.
Thank you.
Next question will be from the line of Tunisia, Sudan with Leerink partners. Your line is now open.
Yeah, Hey, Andrew.
Andrew Thanks for taking the questions couple of questions here, just maybe first a simple one for 575 six.
<unk> hundred 75.
When do we.
See the early data here for <unk>.
Both of them, maybe just let's start there.
Yes, so for $5 75.
That we will.
Provide some data.
Preclinical data ahead of IND filing.
I'm not sure exactly on the timeline right now, but we will update you with that as it comes along for 635 as mentioned for strategic reasons, we do not think it would be wiser in the interest of the business to disclose the target where even the indication and so that one we're going to keep close to our chest.
Until it gets to R&D.
And we need to.
Yes. Please.
Sorry, Carl mentioned in his prepared remarks.
<unk> would be in 2025.
Yeah.
Yes, yes.
I was kind of related to my sort of second question is.
Andrew can you just remind us what the level of investment or Capex that you have towards the GMP facility.
Sort of the outlay that you have for 2024 here.
Before the opening of that facility and obviously if you.
Drug.
We're going to be filed until <unk>.
Indeed this is there is a lot of.
Early stage work that needs to be done so.
Can you maybe talk about sort of how are we going to set the priority for or who is going to set the priority for what is going to be manufactured under GMP facility and then maybe just.
You look at the overall capacity in the <unk> landscape today.
As a bit of an overcapacity situation.
Does that impact you.
Are you at all.
Think about it.
Phil.
<unk> into 'twenty.
Hey, Puneet Carl.
Carl here, maybe I'll start and Andrew can fill in if I, if I Miss something.
So first of all for the first two programs <unk>, 575% to 635.
We will be having these manufactured by a third party since our manufacturing facility is not up and running and for both programs. We believe it's imperative. These move forward as quickly as possible.
The manufacturing capability should come online in 2025.
That's the same year that the <unk>, we expect to be filed for $65 575. The first programs to the through the GMP facility are very likely to be accelerate internal programs.
We also expect that we'll be doing programs that come from strategic partnerships, obviously with firms.
That do not have large manufacturing capabilities internally.
The last part of your question was does it affect you.
Ah.
Slowdown, let's say in a lot of the CMO market that I think is broadly tracking the macro environment today.
Hi.
Perhaps perhaps there is there is some some effect of that but we are expecting to use our facility not as a CMO. So we're not going to be taking inbound on molecules that we have not developed ourselves.
So the pipeline that we expect to put into the manufacturing facility is molecules that have been done either internally or at a seller or that have been done at a seller in collaboration with partners.
So based on that I think we've got a good line of sight as to what will be used in the facility.
Got it and then.
Maybe this is.
So Ken initial question.
The Beacon platform.
The body discovery changed hands and now acquired by broker.
Could you maybe update us on if that changes your thinking a bit on the sort of the competitive landscape there and I just wanted to make sure.
Whats left on the litigation front there.
You could just clarify thank you.
Yes, sure let me take that one so as you know the litigation with Berkeley lights at the time and now broker started a couple of years ago I went to.
The response was an attempt to invalidate the patents, which then stood up.
At the the.
The IPR stood up in our favor and our patents are have been declared.
Legitimate and in full force that litigation was stayed during that process and has now been unstate in.
The litigation is now underway, we intend to continue to pursue that through the courts now in the hands of broker and we will wait to see what the outcome of that proceeding is but we would expect that to continue over the course of 2024 and maybe even into 2025.
Okay perfect Okay.
Okay. Thanks, guys.
Okay.
Thank you.
The next question will be from the line of Steven Mah with Cowen. Your line is now open.
Oh, great. Thanks for taking the questions.
On the new partner ads can you give us some color on what youre seeing given the macro environment.
Can you give us some color on the level of your inbound discussion.
Central partners and if these inbounds and discussions are weighted more to one type of player larger or smaller I ask that given that.
Prelude was a little bit on the smaller side.
Yes, Karl here happy to take that.
First on the macro I think you don't have to be.
Our biotech analysts to see that this is this is a bear market for biotech and has been for some time. So what that means is that there is absolutely a slowdown in the formation of new companies and financing new companies.
The companies that are out are preserving capital.
They are prioritizing programs and all of that results in a smaller ocean of opportunities.
For partnering.
So that that said we have for the last two years Ben <unk>.
Consistently communicating that our focus is not on deal volume are focuses on finding strategic partnerships, where strategic means one of two things that either means that we found a company that is bringing a unique technology such as prelude Ora.
We're a company that is bringing unique target insight in biology, and that together with them we have a.
Great opportunity to make a therapeutic that we have conviction in and that we're able to get a significant stake in that therapeutic so thats the first category of strategic.
The second category is relationship building and setting up deeper engagements with some of the very large and well enabled companies companies like regeneron companies like insight. So examples from this quarter to that lineup with that.
That means that we are looking at lower volume. It also means that we're primarily looking at the bigger firms the bigger firms.
Are quite robust in this market, they're continuing to invest in R&D and so I don't think that we're going to see a lot of impact on that and we're just going to continue with our strategy.
Okay, great. Thanks for the color.
Just have one more.
There have been any changes to the timing of the GMP biologics manufacturing facility and then also.
As you start building out that downstream capability is that is that impacting your partnership discussions and again I ask because.
Wanted to just curious to know maybe the prelude collaboration was helped by the GMP biologics manufacturing capabilities that you're building in.
Yes, I'll take the first part of that question, Steve It's Andrew here.
So we continue to invest in both the CMC and GMP manufacturing I think our plan is to have the first set of pilot batches and engineering batches to for CMC development happening in 2024, so that will be in next year and the first.
Engineering batches qualification batches of the production facility would be in 2025 and those that is also when the first batches from the facility that would ultimately go to support a phase one that does mean that the discovery on the programs that we're starting today could be advanced through our own CMC cell line development and GMP.
Factoring capabilities and I think that is of interest to partners, but I'll, maybe let Karl comment a little bit more on that yes.
Not too much to add except that we have.
A variety of discussions, particularly in the space of new venture creation early companies, obviously that or not.
Equipped with manufacturing capabilities internally, where the integration of the front end discovery lead optimization translational science CMC GMP altogether is a very attractive part of working with <unk>.
It provides a way to substantially shrink the time.
And going from an idea through to the start of clinical development and.
And frankly, it relieves a huge amount of hassle that exists, particularly for smaller firms. When they are having to set up CDMA networks and relationships and manage that and jockey with the bigger firms to make sure that their programs are coming in.
In the right slots and with some flexibility so.
We see it as a.
Very important strategic advantage, that's why we're investing in it it's a heavy lift to put it together, but we're.
We're crossing that right now and are confident that we will have that in place in 2025 as Andrew said.
Okay, great. Thank you.
Thank you.
The next question will be from deadline of Malcolm Hoffman with BMO. Your line is now open.
Hi, guys knock them on for Kevin I wanted to first ask about Agcl's Hudson side. It was noted that the molecule has been designed with greater potency and PK to enable less frequent dosing than benchmark molecules are you able to provide more color on what those benchmark molecules or are they already approved asset.
Our other in development molecules from <unk>.
Sure so.
To be clear what I said is that it's been.
Engineered and selected.
Do you have a combination of potency PK and develop ability, particularly meaning high concentration formulations that we believe would allow it to be dosed less frequently.
Then existing benchmark molecules.
We are of course testing the ones that are disclosed out there amongst them are the clinical assets, including the one I mentioned earlier.
Great. Thank you.
Thank you.
At this time there are no additional questions registered in the queue. So I will turn the call back over to Carl for final remarks.
Thank you everyone for joining the call today.
This remains an exciting time for <unk> with two big milestones in advancing our development candidates forward. We look forward to keeping you updated on future calls and wish you well.
That concludes today's conference call. Thank you all for your participation and you may now disconnect your lines.