AbCellera Biologics Inc.

Previous wording

We are a team of scientists, engineers, and business professionals focused on discovering and developing first-in-class and best-in-class antibody-based medicines for indications with high unmet medical need. To address the barriers of conventional antibody drug development, we have built the capabilities to advance innovative, differentiated antibody drug programs, from target to the clinic. To maximize the value and impact of our work, we are advancing a pipeline of internal programs and strategically partnering with companies that have novel science, innovative technology, or a strong track record of bringing programs through clinical development.

Current wording

We are a team of scientists, engineers, and business professionals focused on discovering and developing first-in-class and best-in-class antibody-based medicines for indications with high unmet medical need. To address the barriers of conventional antibody drug development, we have built the capabilities to discover and develop antibody-based medicines in the areas of endocrinology, women’s health, immunology, and oncology. To maximize the value and impact of our work, we are advancing a pipeline of internal programs and strategically partnering with companies that have novel science, innovative technology, or a strong track record of bringing programs through clinical development.

Previous wording

•pursue internal and co-development programs in preclinical and eventually clinical development;

Current wording

•pursue internal and co-development programs in preclinical and clinical development;

Previous wording

During the second quarter of 2025, we achieved a critical regulatory milestone with the submission of Clinical Trial Applications (CTAs) to Health Canada for two of our therapies: ABCL635 and ABCL575. ABCL635 is being developed as a potential non-hormonal treatment for moderate-to-severe vasomotor symptoms (VMS; hot flashes) associated with menopause, while ABCL575 targets moderate-to-severe atopic dermatitis with potential broader applications in inflammatory and autoimmune conditions. In May 2025, we received No Objection Letters from Health Canada, authorizing both CTAs. We anticipate initiating Phase 1 clinical trials for both programs in Canada during the second half of 2025.

Current wording

During the second quarter of 2025, we achieved a critical regulatory milestone with the submission of Clinical Trial Applications (CTAs) to Health Canada for two of our therapies: ABCL635 and ABCL575. ABCL635 is being developed as a potential non-hormonal treatment for moderate-to-severe vasomotor symptoms (VMS; hot flashes) associated with menopause, while ABCL575 targets moderate-to-severe atopic dermatitis with potential broader applications in inflammatory and autoimmune conditions. In May 2025, we received No Objection Letters from Health Canada, authorizing both CTAs. We have initiated dosing participants in Phase 1 clinical trials for both programs in Canada during the second half of 2025.

Previous wording

We have initiated dosing of participants in a Phase 1 clinical trial of ABCL635. This is a randomized, placebo-controlled, double-blind Phase 1 study in healthy men and postmenopausal women with or without VMS. Its purpose is to evaluate safety, pharmacokinetics, pharmacodynamics, as well as frequency and severity of VMS with subcutaneous doses of ABCL635, and data from this study is expected to be presented in mid 2026. We also initiated a Phase 1 clinical trial of ABCL575. This is a randomized, placebo-controlled, double-blind study to assess safety and tolerability in healthy participants following subcutaneous doses of ABCL575. ABCL575 is an OX40-ligand-targeting antibody engineered to support a dosing interval of once every 6 months.

Current wording

The Phase 1 clinical trial of ABCL635 is a randomized, placebo-controlled, double-blind Phase 1 study in healthy men and postmenopausal women with or without VMS. Its purpose is to evaluate safety, pharmacokinetics, pharmacodynamics, as well as frequency and severity of VMS with subcutaneous doses of ABCL635, and data from this study is expected to be presented in mid 2026. The Phase 1 clinical trial of ABCL575 is a randomized, placebo-controlled, double-blind study to assess safety and tolerability in healthy participants following subcutaneous doses of ABCL575. ABCL575 is an OX40-ligand-targeting antibody engineered to support a dosing interval of once every 6 months.

Previous wording

We have started a cumulative total of 102 partner-initiated programs with downstream participation and have seen a cumulative total 18 molecules advanced into the clinic, as illustrated by the following chart.

Current wording

We have started a cumulative total of 103 partner-initiated programs with downstream participation and have seen a cumulative total 18 molecules advanced into the clinic, as illustrated by the following chart.

Previous wording

The following table summarizes our key operating results for the three and six months ended June 30, 2024 and June 30, 2025. All figures are in U.S. dollars and amounts are expressed in thousands, except loss per share data:

Current wording

The following table summarizes our key operating results for the three and nine months ended September 30, 2024 and September 30, 2025. All figures are in U.S. dollars and amounts are expressed in thousands, except loss per share data:

Previous wording

•Pursuing drug discovery and development opportunities internally. As our discovery and development capabilities have matured, we are increasingly in a position to pursue attractive, well-validated targets ourselves, e.g. in the GPCR, ion channel, and TCE spaces. Such programs have the potential to yield first-in-class drug candidates in indications with substantial unmet medical need which we would wholly own. We plan on investing significant resources in the preclinical and, eventually, clinical development of internal programs which will impact our financial results. The investments in each program are undertaken at risk and may ultimately not yield a return.

Current wording

•Pursuing drug discovery and development opportunities internally. As our discovery and development capabilities have matured, we are increasingly in a position to pursue attractive, well-validated targets ourselves, e.g. in the GPCR, ion channel, and TCE spaces. Such programs have the potential to yield first-in-class drug candidates in indications with substantial unmet medical need which we would wholly own. We plan on investing significant resources in the preclinical and clinical development of internal programs which will impact our financial results. The investments in each program are undertaken at risk and may ultimately not yield a return.

Previous wording

Comparison of the three and six months ended June 30, 2024 and June 30, 2025:

Current wording

Comparison of the three and nine months ended September 30, 2024 and September 30, 2025:

Previous wording

Revenue increased by $9.8 million from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and increased $4.0 million from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. The increase in both periods was primarily attributable to licensing revenue recognized, partially offset by no milestones achieved in 2025 and the timing and increased prioritization of our research and development efforts towards internal programs.

Current wording

Revenue increased by $2.4 million from the three months ended September 30, 2024 compared to the three months ended September 30, 2025 and increased $6.5 million from the nine months ended September 30, 2024 compared to the nine months ended September 30, 2025. The increase in the three months ended September 30, 2025 is attributable to the timing and progress of our research and development efforts. The increase in the nine months ended September 30, 2025 was primarily attributable to licensing revenue recognized, partially offset by no milestones achieved in 2025 and the timing and progress of our research and development efforts.

Previous wording

Research and development expenses decreased by$1.7 million, or(4)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025. Total compensation expense, inclusive of stock-based compensation, was$21.2 million for the three months ended June 30, 2024, compared to$22.0 million for the three months ended June 30, 2025. The increase in compensation expense was consistent with an increase in research and development department headcount as the company continues forward integration and advancing its internal pipeline. Third-party research and development expenses were$7.6 million for the three months ended June 30, 2024, compared to$6.5 million for the three months ended June 30, 2025, and other research and development expenses related to facilities and supplies were$12.1 million for the three months ended June 30, 2024, compared to$10.7 million for the three months ended June 30, 2025. The overall decrease in the quarter was due to the timing of preclinical, discovery, and other research program activities.

Current wording

Research and development expenses increased by$14.1 million, or 34%, from the three months ended September 30, 2024 compared to the three months ended September 30, 2025. Total compensation expense, inclusive of stock-based compensation, was$20.3 million for the three months ended September 30, 2024, compared to$21.2 million for the three months ended September 30, 2025. The increase in compensation expense was consistent with an increase in research and development department headcount as the company continues forward integration and advancing its internal pipeline. Third-party research and development expenses were$8.3 million for the three months ended September 30, 2024, compared to$5.2 million for the three months ended September 30, 2025 driven by the timing of work performed on our two AbCellera-led assets in the clinic. The Company also made specific investments in two internal programs totalling$15.0 millionin the three months ended September 30, 2025. Other research and development expenses related to facilities and supplies were$12.3 million for the three months ended September 30, 2024, compared to$13.6 million for the three months ended September 30, 2025. Changes in the quarter were due to the timing of preclinical, discovery, and other research program activities.

Previous wording

Research and development expenses increased by $1.5 million, or 2%, from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. Total compensation expense, inclusive of stock-based compensation, was $43.2 million for the six months ended June 30, 2024, compared to $45.2 million for the six months ended June 30, 2025. The increase in compensation expense was consistent with an increase in research and development department headcount as the company continues forward integration and advancing its internal pipeline. Third-party research and development expenses were $13.2 million for the six months ended June 30, 2024, compared to $15.2 million for the six months ended June 30, 2025, and other research and development expenses related to facilities and supplies were $23.8 million for the six months ended June 30, 2024, compared to $21.3 million for the six months ended June 30, 2025. The overall increase in 2025 was due to preclinical, discovery, and other research program activities performed to bring two internal programs into the clinic and advance our pipeline.

Current wording

Research and development expenses increased by $15.6 million, or 13%, from the nine months ended September 30, 2024 compared to the nine months ended September 30, 2025. Total compensation expense, inclusive of stock-based compensation, was $63.6 million for the nine months ended September 30, 2024, compared to $66.4 million for the nine months ended September 30, 2025. The increase in compensation expense was consistent with an increase in research and development department headcount as the company continues forward integration and advancing its internal pipeline. Third-party research and development expenses were $21.5 million for the nine months ended September 30, 2024, compared to $20.4 million for the nine months ended September 30, 2025 driven by the timing of work performed on our two AbCellera-led assets in the clinic. The Company also made specific investments in two internal programs totalling$15.0 millionin the nine months ended September 30, 2025. Other research and development expenses related to facilities and supplies were $36.1 million for the nine months ended September 30, 2024, compared to $35.0 million for the nine months ended September 30, 2025. Changes in the period were due to the timing of preclinical, discovery, and other research program activities.

Previous wording

Sales and marketing expenses decreased by $0.1 million, or (4)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025, anddecreased by $0.7 million, or(10)%, from thesix months ended June 30, 2024 compared to thesix months ended June 30, 2025. Thedecrease in both periods was attributable to a reduction in total compensation expense and other expenses related to our business development activity.

Current wording

Sales and marketing expenses decreased by $0.2 million, or (7)%, from the three months ended September 30, 2024 compared to the three months ended September 30, 2025, anddecreased by $0.9 million, or(9)%, from thenine months ended September 30, 2024 compared to thenine months ended September 30, 2025. Thedecrease in both periods was attributable to a reduction in total compensation expense and other expenses related to our business development activity.

Previous wording

General and administrative expenses decreased by $1.2 million, or (6)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025. Total compensation expense, inclusive of stock-based compensation, was $12.1 million for thethree months ended June 30, 2024, compared to $8.6 million for thethree months ended June 30, 2025. The decrease in compensation expense is a result of our continued optimization of headcount and a reduction in the total fair value of equity awards granted in 2025. Legal, software, and other general administrative costs were $8.1 million for thethree months ended June 30, 2024, compared to $10.4 million for thethree months ended June 30, 2025. The increase was primarily due to the defense of our intellectual property, partially offset by a reduction in software expenses.

Current wording

General and administrative expenses increased by $2.9 million, or 15%, from the three months ended September 30, 2024 compared to the three months ended September 30, 2025. Total compensation expense, inclusive of stock-based compensation, was $12.2 million for thethree months ended September 30, 2024, compared to $8.4 million for thethree months ended September 30, 2025. The decrease in compensation expense is a result of our continued optimization of headcount and a reduction in the total fair value of equity awards granted in 2025. Legal, software, and other general administrative costs were $6.9 million for thethree months ended September 30, 2024, compared to $13.6 million for the three months ended September 30, 2025. The increase was primarily due to the defense of our intellectual property, partially offset by a reduction in software expenses.

Previous wording

General and administrative expenses decreased by $2.3 million, or(6)%, from thesix months ended June 30, 2024 compared to thesix months ended June 30, 2025. Total compensation expense, inclusive of stock-based compensation, was $24.1 million for the six months ended June 30, 2024, compared to $17.1 million for the six months ended June 30, 2025. The decrease in compensation expense is a result of our continued optimization of headcount and a reduction in the total fair value of equity awards granted in 2025. Legal, software, and other general administrative costs were $13.4 million for the six months ended June 30, 2024, compared to $18.1 million for the six months ended June 30, 2025. The increase was primarily due to the defense of our intellectual property, partially offset by a reduction in software expenses.

Current wording

General and administrative expenses increased by $0.6 million, or 1%, from thenine months ended September 30, 2024 compared to thenine months ended September 30, 2025. Total compensation expense, inclusive of stock-based compensation, was $36.3 million for the nine months ended September 30, 2024, compared to $25.5 million for the nine months ended September 30, 2025. The decrease in compensation expense is a result of our continued optimization of headcount and a reduction in the total fair value of equity awards granted in 2025. Legal, software, and other general administrative costs were $20.4 million for the nine months ended September 30, 2024, compared to $31.7 million for the nine months ended September 30, 2025. The increase was primarily due to the defense of our intellectual property, partially offset by a reduction in software expenses.

Previous wording

Depreciation, amortization, and impairment expense decreased by$31.1 million, or(85)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased by$30.6 million, or (74)%, from the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease is primarily attributable to a full impairment charge of the carrying value of $32.0 million (or $23.2 million, net of deferred income tax) recognized in 2024 associated with the IPR&D acquired through the 2021 acquisition of TetraGenetics as a result of the Company's ongoing internal program portfolio prioritization.

Current wording

Depreciation, amortization, and impairment expense decreased by$31.7 million, or(86)%, from the three months ended September 30, 2024 compared to the three months ended September 30, 2025 and decreased by$62.2 million, or (80)%, from the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease is primarily attributable to impairment charges recognized in 2024 a result of the Company's ongoing internal program prioritization. In the quarter ended September 30, 2024, the Company recognized a full impairment charge of the carrying value of $32.0 million (or $23.3 million, net of deferred income tax) associated with the IPR&D acquired through the 2020 acquisition of Trianni, due to discontinuing the development of next-generation transgenic mice. In the quarter ended June 30, 2024, the Company also recognized a full impairment charge of the carrying value of $32.0 million (or $23.3 million, net of deferred income tax) associated with the IPR&D acquired through the 2021 acquisition of TetraGenetics.

Previous wording

Interest income decreased by$2.2 million, or(23)%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased$4.6 million, or (23)%, from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. The decrease was primarily driven by our cash, cash equivalents, and marketable securities balances and interest rate yields in the period.

Current wording

Interest income decreased by$2.8 million, or(30)%, from the three months ended September 30, 2024 compared to the three months ended September 30, 2025 and decreased$7.4 million, or (25)%, from the nine months ended September 30, 2024 compared to the nine months ended September 30, 2025. The decrease was primarily driven by our cash, cash equivalents, and marketable securities balances and interest rate yields in the period.

Previous wording

Grants and incentives increased by$0.4 million, or 12%, from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and increased by$1.3 million, or 19%, from the six months ended June 30, 2024 and six months ended June 30, 2025. The increase was primarily driven by activity relating to research and development expenditures that are eligible for reimbursement under government programs for the period.

Current wording

Grants and incentives decreased by$0.8 million, or (22)%, from the three months ended September 30, 2024 compared to the three months ended September 30, 2025 and increased by$0.5 million, or 5%, from the nine months ended September 30, 2024 and nine months ended September 30, 2025. The change was primarily driven by activity relating to research and development expenditures that are eligible for reimbursement under government programs for the period.

Previous wording

Other income decreased by$30.2 million from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased$31.2 million from the six months ended June 30, 2024 compared to the six months ended June 30, 2025. Further to the intangible asset impairment discussion above, at June 30, 2024, the fair value of the contingent consideration was adjusted to reflect the expected value of the Company's ongoing internal program portfolio prioritization, resulting in a $32.4 million non-cash fair value gain primarily attributable for the decrease. The decrease in other income was partially offset due to a foreign exchange gain in the period due to fluctuations in the Canadian and U.S. dollar exchange rate and other fair value adjustments.

Current wording

Other income decreased by$51.1 million from the nine months ended September 30, 2024 compared to the nine months ended September 30, 2025. Further to the intangible asset impairment discussion above, at June 30, 2024, the fair value of the contingent consideration was adjusted to reflect the expected value of the Company's ongoing internal program portfolio prioritization, resulting in a $32.4 million non-cash fair value gain primarily attributable to the decrease. The remaining decrease was primarily attributable to a $16.5 million gain recognized on the disposal of a non-marketable security in 2024, partially offset due to a foreign exchange gain in the period due to fluctuations in the Canadian and U.S. dollar exchange rate and other fair value adjustments.

Previous wording

Income tax recovery decreased by$9.6 million from the three months ended June 30, 2024 compared to the three months ended June 30, 2025 and decreased by$4.4 million or (33)% from the six months ended June 30, 2024 compared to six months ended June 30, 2025. The decrease was primarily driven by the current net loss and a change in effective income tax rates impacted from the availability of carry-back of losses to recover previously paid taxes.

Current wording

Income tax recovery increased by$0.1 million from the three months ended September 30, 2024 compared to the three months ended September 30, 2025 and decreased by$4.3 million or (17)% from the nine months ended September 30, 2024 compared to nine months ended September 30, 2025. The change was primarily driven by the current net loss and a change in effective income tax rates impacted from the availability of carry-back of losses to recover previously paid taxes.

Previous wording

As of June 30, 2025, we had $553.1 million of cash, cash equivalents and marketable securities, comprising $92.4 million in cash and cash equivalents and $460.6 million in marketable securities. The decrease of $72.5 million since December 31, 2024, was primarily from a combination of cash flow used in operations due to our continued research and development activity, execution of internal and partnered programs, building our internal pipeline, and investments in our corporate headquarters andclinical manufacturing facility under construction, partially offset by government contributions received in thesix months ended June 30, 2025.

Current wording

As of September 30, 2025, we had $495.7 million of cash, cash equivalents and marketable securities, comprising $83.2 million in cash and cash equivalents and $412.5 million in marketable securities. The decrease of $129.9 million since December 31, 2024, was primarily from a combination of cash flow used in operations due to our continued research and development activity, execution of internal and partnered programs, building our internal pipeline, and investments in our corporate headquarters andclinical manufacturing facility under construction, partially offset by government contributions received in thenine months ended September 30, 2025.

Previous wording

Net cash used in operating activities decreased from $71.7 million in thesix months ended June 30, 2024 to $44.0 million in thesix months ended June 30, 2025. The decrease in cash flows used in operations was primarily attributable to an increase in deferred revenues and working capital movements including a reduction in accounts and grants receivable in six months ended June 30, 2025.

Current wording

Net cash used in operating activities decreased from $100.6 million in thenine months ended September 30, 2024 to $96.6 million in thenine months ended September 30, 2025. The decrease in cash flows used in operations was primarily attributable to an increase in deferred revenues and working capital movements including a reduction in accounts and grants receivable in nine months ended September 30, 2025.

Previous wording

Net cash associated with investing activities changed from $82.0 million provided by investing activities in thesix months ended June 30, 2024 to $23.9 million used in investing activities in thesix months ended June 30, 2025. The decrease in cash provided by investing activities was primarily attributable to a reduction in grant funding received in the period and proceeds from marketable securities, partially offset by an increase in purchases of other long-term assets in the six months ended June 30, 2025.

Current wording

Net cash provided by investing activities decreased from $85.7 million provided by investing activities in thenine months ended September 30, 2024 to $12.6 million in thenine months ended September 30, 2025. The decrease in cash provided by investing activities was primarily attributable to a reduction in grant funding received in the period and proceeds from marketable securities, partially offset by an increase in purchases of other long-term assets in the nine months ended September 30, 2025.

Previous wording

Net cash provided by financing activities decreased from $5.5 million in thesix months ended June 30, 2024 to $2.6 million in the six months ended June 30, 2025. The decrease was primarily attributable to the contingent consideration paid entirely in the second quarter of 2025, partially offset by proceeds from other long-term liabilities.

Current wording

Net cash provided by financing activities increased from $8.6 million in thenine months ended September 30, 2024 to $10.0 million in the nine months ended September 30, 2025. The increase was primarily attributable to proceeds from other long-term liabilities, partially offset by contingent consideration paid entirely in the second quarter of 2025.

Previous wording

Detailed information about our critical accounting policies and estimates is set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies during thesix months ended June 30, 2025.

Current wording

Detailed information about our critical accounting policies and estimates is set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies during thenine months ended September 30, 2025.