AbCellera Biologics Inc. (ABCL) stock experienced a pre-market plunge of 5.19% on November 5, 2024, following the company's third-quarter 2024 financial results. The significant decline in the stock price can be attributed to a few key factors:
Firstly, 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. This wider net loss was partly due 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 with the previous year at approximately $7 million, the company expects research fee revenue to trend lower as it shifts its focus toward internal and co-development programs. This potential decrease in revenue could be concerning for investors.
Furthermore, AbCellera's operating expenses, including research and development (R&D) and general and administrative (G&A) expenses, increased compared to the prior year. R&D expenses rose by $3 million to $41 million, driven by ongoing program execution and platform development. G&A expenses also increased to approximately $19 million, primarily due to expenses related to the defense of intellectual property.
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