AbCellera Biologics Inc. (ABCL) saw its stock plummet by 13.49% in pre-market trading on November 5, 2024, following the company's third-quarter financial results. The significant decline came after AbCellera reported a net loss of approximately $51 million for Q3 2024, a substantial increase from the $29 million loss in the same quarter last year.
The wider net loss was partly attributed to a non-cash impairment charge of around $32 million related to the discontinuation of the development of next-generation transgenic mice. Additionally, while revenue remained consistent at approximately $7 million, the company expects research fee revenue to trend lower as it shifts its focus toward internal and co-development programs.
AbCellera's operating expenses also increased compared to the prior year. Research and development (R&D) expenses rose by $3 million to $41 million, driven by ongoing program execution and platform development. General and administrative (G&A) expenses also climbed to approximately $19 million, primarily due to expenses related to the defense of intellectual property.
Despite the disappointing financial results, AbCellera highlighted progress with its internal pipeline programs. The company is on track to file CTA for its first two internal pipeline programs, ABCL635 and ABCL575, by Q2 of next year. Additionally, AbCellera successfully completed the move to its new headquarters in Vancouver and is making steady progress on its GMP manufacturing facility, expected to be operational in 2025.
Commenting on the results, AbCellera's CEO, Carl Hansen, stated, "We are clearly on track in our transition to a clinical-stage company. Over the coming years, with focus and execution, I am confident that this path will deliver maximum value to patients and shareholders."
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