AbCellera Biologics Inc. · 2026 Q2 call

The most important data readout this year is the top-line results for ABCL635 in the treatment of moderate to severe hot flashes associated with menopause. […] we completed enrollment and initial dosing of patients in June, well ahead of schedule. Based on this, we expect a top-line data readout very soon. If the data is positive, we believe ABCL635 will be highly de-risked.

Finally, I had previously communicated a goal of moving another program into IND-enabling activities in the first half of this year. […] Although we missed this timeline, we are making good progress, and I'm confident in the productivity and innovation of discovery.

These two deals are adding over $110 million in upfront cash to our balance sheet and have the potential for larger value in downstream payments and tiered royalties on net sales. […] The total potential deal value with all five programs included would be over $4 billion. We believe that this is one of the largest TCE discovery deals reported to date.

The large decrease in SG&A expenses relates to the conclusion of our intellectual property litigation case and to changes in the teams following the focus on our internal pipeline.

Operating activities for the first half of the year used approximately $8 million in cash. Included in the operating cash flow is the receipt of $56 million from the upfront payments under our TCE deal with Jazz.

As a reminder, we have received commitments for funding the advancement of our internal pipeline from the Government of Canada Strategic Innovation Fund and the Government of British Columbia. […] This available capital does not show up on our balance sheet.

With over $565 million in cash and equivalents and the unused portion of our secured government funding, we have over $675 million in available liquidity to execute on our strategy.

With respect to overall company expenditures, our capital needs are very manageable. We continue to believe that we have sufficient liquidity to fund at least the next three years of pipeline investments.

our view is that success is a clean safety profile, which so far everything that we've seen through phase I has been entirely consistent with that, and efficacy that tracks in a way that is comparable to the two small molecules that are approved. On the frequency side, we are obviously looking for a response relative to placebo that's on the order of 20% at least, which is about what you see with the small molecules.

I don't have a hard number, but I'd say that there's significantly more effort on the GPCR and ion channel side. TCE has been one of the strong pillars of the pipeline, and we expect it will stay that way for the coming future.

The trials that have been done have all shown a pronounced placebo response. So, our expectation coming into the study is that we will also have a placebo response and that it will be in the range that's comparable to what has been seen. […] I do think one of the big questions is exactly where that placebo response is going to come out.

the data that we're expecting very soon is going to be data that is four weeks in all patients, and we will not report data on a subset of patients out to 12 weeks. That's the top-line data.

We think at the very base case, there are a large number of women that are contraindicated and that would benefit from a non-hormonal option. As I've said on previous calls, we think that that's roughly or is probably over a million women in the U.S. alone.

That is the key remaining scientific risk in the program. What I will say is that the phase I data that we presented on the last call shows that we can get profound suppression of testosterone and that we can do that in a way that is deeper than what has been seen by the small molecules and that lasts for the entire dosing interval. […] The open question remains as to whether also blocking NK3R in the preoptic nucleus has an effect. We have not done a conclusive experiment pre-clinically to prove that.