VANCOUVER - AbCellera (NASDAQ:ABCL) has expanded its partnership with pharmaceutical giant Eli Lilly and Company (NYSE:LLY), focusing on the discovery of therapeutic antibodies for various diseases, the companies announced today. This collaboration extension follows the original alliance formed in March 2020, which has already yielded eight de novo programs and an exclusive license for AbCellera's COVID-19 antibody initiative.
The original agreement has been fruitful, with all eight programs advancing under its terms, leading to the U.S. Food and Drug Administration granting emergency use authorization for two COVID-19 antibody treatments developed jointly by the firms.
Carl Hansen, Ph.D., founder and CEO of AbCellera, expressed enthusiasm about the expanded collaboration, which now aims to make strides in immunology, cardiovascular disease, and neuroscience. "Lilly has been a terrific partner and is one of the most admired and innovative pharmaceutical companies in the world," said Hansen.
Under the terms of the expanded agreement, Lilly will retain the rights to develop and commercialize any therapeutic antibodies that result from the collaboration. In return, AbCellera has received an upfront payment, and it stands to gain from research payments, potential milestone payments, and royalties on net product sales.
AbCellera, a biotechnology company based in Vancouver, is known for its antibody discovery and development for a range of therapeutic areas, including cancer, metabolic, endocrine, and autoimmune disorders.
AbCellera Biologics reported a net loss of $41 million in Q1 2024 while maintaining a strong financial position with $725 million in cash and equivalents. The company is actively seeking strategic partnerships, particularly for access to its T-Cell Engagers platform, and is progressing with its internal molecule, ABCL635.
KeyBanc Capital Markets has maintained an Overweight rating on AbCellera, despite lowering the price target to $7 from the previous $8. The firm's analyst cited a positive outlook on the company's future, emphasizing AbCellera's transition to a crucial stage in its growth.
AbCellera is reportedly enhancing its manufacturing capabilities and is expected to start process development activities and pilot runs, with a Good Manufacturing Practice facility projected to be operational towards the end of 2025. The company is also actively working on its internal pipeline, reallocating resources to advance its two programs, ABCL635 and ABCL575, both of which are slated to enter clinical trials in 2025.
InvestingPro Insights
As AbCellera (NASDAQ:ABCL) strengthens its alliance with Eli Lilly, investors are closely monitoring the biotech company's financial health and market performance. According to recent data from InvestingPro, AbCellera holds a market capitalization of approximately $948.33 million, reflecting investor sentiment and the company's perceived value in the market. Despite the promising collaboration with Eli Lilly, AbCellera's revenue has seen a significant decrease, with the last twelve months as of Q1 2024 showing a sharp decline of -80.23%. This is a critical metric, as it indicates the company's sales performance over a considerable period.
Moreover, the company's gross profit margin stands at an alarming -353.51% for the same period, highlighting challenges in maintaining profitability on its products and services. An InvestingPro Tip reveals that analysts do not expect AbCellera to be profitable this year, which aligns with the company's current gross profit margin struggles.
On a more positive note, another InvestingPro Tip indicates that AbCellera maintains a stronger liquidity position, with cash reserves exceeding its debt load. This could provide the company with a buffer to navigate through its current financial challenges and invest in strategic initiatives such as the extended collaboration with Eli Lilly.
For investors seeking a deeper analysis of AbCellera's financials and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/ABCL. These tips provide valuable insights that could help in making informed investment decisions. Interested readers can benefit from a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, there are six more InvestingPro Tips listed that could further inform stakeholders about AbCellera's market position and potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.