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The call conveyed a generally positive clinical and financial picture: compelling interim Phase I data for ABCL635 (favorable tolerability, strong PK/PD and sustained target engagement) with a clear near-term Phase II catalyst (Q3 2026), expanding pipeline progress, and a robust liquidity position (~$655M available including government funding). Headwinds include continued quarterly losses (~$43M), modest current revenue (~$8M) with expected declines in partner-derived research fees, a small potential tolerability signal at the highest dose (900 mg), blinded MAD data limiting full visibility, and remaining scientific/efficacy risk until Phase II readout. Overall, positives (clinical momentum, liquidity, and pipeline cadence) outweigh the negatives, but the company remains dependent on upcoming Phase II and other near-term milestones.
AbCellera's guidance focused on near‑term clinical and financial milestones: a topline Phase II readout for ABCL635 is expected in Q3 2026 and a topline Phase I readout for ABCL575 in Q4 2026, with plans to add at least one new development candidate and select a fifth candidate in H1 2026 and to have up to three additional clinical‑stage programs (including ABCL688 and ABCL386) by end of 2027; commercially, the company said it will prioritize internal programs (research fee revenue expected to trend lower) while remaining well‑funded with approximately $531 million in cash, cash equivalents and marketable securities (including ~$428 million in short‑term securities), roughly $125 million of committed government funding (bringing total available liquidity to about $655 million), Q1 revenue of ~$8 million (vs ~$4M a year earlier), R&D spend of ~ $47 million, SG&A of ~ $12 million (down >35% from ~$19M), an operating cash use of ~$34 million (or ~$3M excluding investments), a net loss of ~ $43 million (loss per share ~$0.14), and the assertion that this runway and secured funding should support at least the next three years of pipeline investment.
Unblinded single-ascending-dose data show ABCL635 was generally well tolerated with no serious adverse events, no severe adverse events, no discontinuations and no liver toxicity; overall incidence of any adverse event was 50% in both treatment and pooled placebo groups with the vast majority grade 1.
ABCL635 exhibited linear, approximately dose-proportional PK with low variability and an estimated half-life of ~24 days supporting monthly subcutaneous dosing; dose-dependent testosterone suppression in men was sustained (≈50% to >75% reductions for several weeks at 300, 600 and 900 mg), plus dose-dependent suppression of LH and FSH, demonstrating robust target engagement.
ABCL635 was advanced to Phase II in January; randomized double-blind placebo-controlled study (~80 patients, 1:1, single 600 mg SC dose) is enrolling well with a topline efficacy and safety readout expected in Q3 2026 (primary endpoint at 4 weeks).
Second clinical program ABCL575 top-line Phase I readout expected in Q4 2026; ABCL688 and ABCL386 are in IND-enabling activities aiming for clinical starts in 2027; company targets adding at least one new development candidate in H1 2026 and up to three additional clinical-stage programs by end of 2027.
Approximately $531M in cash, cash equivalents and marketable securities and roughly $125M of available committed government funding (total available liquidity ≈ $655M including unused secured government funds); $428M is invested in short-term marketable securities.
Revenue for Q1 2026 was ~$8M versus ~$4M in Q1 2025 (≈100% increase, both periods mostly research fees); R&D spend was ~$47M (≈$4M increase year-over-year, ≈9%); SG&A decreased to ~$12M from ~$19M (greater than 35% reduction), driven by conclusion of IP litigation and organizational changes.
Operating cash used ~$34M in Q1 2026 but excluding marketable securities and other investments operating cash use was only ~$3M; management expects sufficient liquidity to fund at least the next three years of pipeline investments.
Good afternoon, and welcome to AbCellera's Q1 2026 Business Update Conference Call. My name is Ben, and I will facilitate the audio portion of today's interactive broadcast. [Operator Instructions] At this time, I would like to turn the call over to Tryn Stimart, AbCellera's Chief Legal and Compliance Officer. You may proceed.
Thank you. Hello, everyone. Thank you for joining us for AbCellera's First Quarter 2026 Earnings Call. I'm Tryn Stimart, AbCellera's Chief Legal and Compliance Officer. Dr. Carl Hansen, AbCellera's President and CEO; Dr. Sarah Noonberg, AbCellera's Chief Medical Officer; and Andrew Booth, AbCellera's Chief Financial Officer, are speaking on today's call. During this call, we may make statements about our strategic priorities and financial outlook based on our current expectations and in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Our statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those described. Please review the Risk Factors section of our most recent Form 10-K and subsequent 10-Q filings with the SEC for a more detailed discussion of these risks. AbCellera assumes no obligation to update any forward-looking statements to reflect events or circumstances after today's date. Our presentation today, our earnings press release and our SEC filings are available on our Investor Relations website. The information we provide about our pipeline is intended for the investment community and is not promotional. As we tr...