AbCellera Biologics Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
ABCL$12.50+5.2%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001703057-26-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001703057-26-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 120 current paragraphs.
74 unchanged; 28 reworded; 18 added; 2 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
AbCellera Programs
Current report
ABCL635
Current report
In August 2026, we announced positive top-line results from the Phase 2 portion of our Phase 1/2 clinical trial evaluating ABCL635. The study met the primary efficacy endpoints achieving statistically significant reductions in both frequency and severity of VMSM-S at week 4 compared to placebo after a single dose. ABCL635 was also observed to significantly improve sleep and patient global impression of change (PGI-C).
Current report
The randomized, double-blind, placebo-controlled, multicenter Phase 2 portion of the ABCL635 study enrolled 92 postmenopausal women experiencing a mean of approximately 10 moderate or severe hot flashes per day. The participants were randomized 1:1 to receive either a single subcutaneous 600 mg dose of ABCL635 or placebo. ABCL635 reduced VMSM-S frequency compared to placebo, with an 8.8 mean reduction in the number of moderate and severe events per day from baseline at week 4 (Day 29) compared to 3.5, showing a mean placebo-adjusted treatment difference of 5.3 (p<0.001). The mean percent reduction at week 4 for VMSM-S frequency was 83% for the ABCL635 treatment group versus a 33% reduction for placebo, leading to a mean placebo-adjusted treatment difference of 50%.
Current report
ABCL635 also resulted in improvement in VMSM-S severity compared to placebo, with a mean reduction of 1.4 points at week 4 compared to 0.3, and a mean placebo-adjusted treatment difference of 1.1 (p<0.001). The mean percent reduction in VMSM-S severity from baseline to week 4 was 58% in the ABCL635 group compared to 12% in the placebo group, leading to a mean placebo-adjusted treatment difference of 46%. Meaningful improvements were also observed in patient sleep scores and PGI-C.
Current report
ABCL635 was well-tolerated throughout the four-week treatment period with no serious adverse events, severe adverse events, or adverse events that led to study discontinuation. The most common adverse events in the ABCL635 treatment group and higher than placebo were headache, fatigue, and injection site reaction.
Current report
We expect to initiate late-stage development of ABCL635 for menopausal VMS in 2027. We are also expanding the indications for ABCL635 to include VMS caused by hormone suppression associated with breast and prostate cancer treatment. The initiation of clinical trials in these two populations is expected in 2027.
Current report
ABCL575
Current report
Internal Programs
Current report
Further, we advanced the following programs into IND-enabling activities in the third quarter of 2026:
Current report
•ABCL992: an investigational antibody drug candidate for the treatment of VMS. ABCL992 is a next-generation half-life extended analog of ABCL635;
Current report
•ABCL385: an investigational antibody drug candidate for an undisclosed indication in oncology; and
Current report
•ABCL646: a potential first-in-class investigational antibody drug candidate for an undisclosed ion channel target.
Current report
Recent Developments
Current report
Further details regarding our clinical and operational advancement of our internal pipeline during the quarter are discussed under 'Overview'.
Current report
Interest and Other Income
Current report
Financing
Current report
In August 2026, we completed an oversubscribed underwritten public offering of 17,435,897 common shares at a public offering price of $9.75 per common share and pre-funded warrants to purchase up to 3,076,926 common shares at $9.74999 per pre-funded warrant with an exercise price of $0.00001 per common share. We received gross proceeds of approximately $200.0 million, and net proceeds of $188.8 million, after deducting underwriting discounts, commissions, and offering expenses and intend to use the proceeds we receive from this offering, together with our existing cash, cash equivalents and marketable securities, to fund the continued research, development and clinical advancement of our internal pipeline, including our lead clinical program, ABCL635, as well as for working capital and other general corporate purposes. See the notes to our condensed consolidated financial statements for further information related to the financing.
Removed paragraphs (2)
Previous report
Recent Developments and Clinical Update
Previous report
Interest and Other (Income) Expense
Reworded paragraphs (28)
Previous wording
•our ability to achieve projected discovery, preclinical development, and clinical milestones for our internal programs, including the top-line data from the Phase 2 trial anticipated in August of 2026 for ABCL635, as well as our partners’ ability to achieve projected discovery and development milestones and other anticipated key events, including commercial sales resulting in royalties owed to us, in the expected timelines or at all;
Current wording
•our ability to achieve projected discovery, preclinical development, and clinical milestones for our internal programs, including data from the Phase 2 trial for ABCL635, as well as our partners’ ability to achieve projected discovery and development milestones and other anticipated key events, including commercial sales resulting in royalties owed to us, in the expected timelines or at all;
Previous wording
We focus on the development of antibody drugs and are committed to improving discovery and development. We aim to build a competitive advantage in bringing antibody drugs from target into clinical testing by combining expertise, technologies, and infrastructure to build integrated capabilities for antibody drug discovery and development. We think deeply about capital allocation and strive to maximize long-term value while mitigating the risks that are inherent in drug development. We look for opportunities where we believe low-risk investments in building technology and operational efficiency can create a sustained competitive advantage and drive long-term value by making antibody drug development faster and more efficient.
Current wording
We focus on the development of antibody drugs and are committed to improving discovery and development. We aim to build a competitive advantage in bringing antibody drugs candidates from target into clinical testing by combining expertise, technologies, and infrastructure to build integrated capabilities for antibody drug discovery and development. We think deeply about capital allocation and strive to maximize long-term value while mitigating the risks that are inherent in drug development. We look for opportunities where we believe low-risk investments in building technology and operational efficiency can create a sustained competitive advantage and drive long-term value by making antibody drug development faster and more efficient.
Previous wording
To date, we have financed our operations primarily from revenue from our antibody discovery partnerships in the form of royalty revenue, government funding from grants, and from the issuance and sale of convertible preferred shares and notes, and common shares. Additionally, we have twice secured significant government co-investments in the form of non-dilutive capital to help fund research and development, including internal programs, and facility construction.
Current wording
To date, we have financed our operations primarily from revenue from our antibody discovery partnerships in the form of royalty revenue, government funding from grants, and from the issuance and sale of convertible preferred shares and notes, common shares, and pre-funded warrants. Additionally, we have twice secured significant government co-investments in the form of non-dilutive capital to help fund research and development, including internal programs, and facility construction. In August 2026, we completed an underwritten public offering issuing common shares and pre-funded warrants. We received gross proceeds of approximately $200.0 million, and net proceeds of $188.8 million, after deducting underwriting discounts, commissions, and offering expenses.
Previous wording
We previously achieved critical regulatory and clinical trial milestones for ABCL635 and ABCL575, and initiated dosing participants in clinical trials for both programs in Canada during the second half of 2025.
Current wording
We previously achieved critical regulatory and clinical trial milestones for ABCL635 and ABCL575, and initiated dosing of participants in clinical trials for both programs in Canada during the second half of 2025.
Previous wording
For ABCL635, the Phase 1/2 clinical trial is a randomized, placebo-controlled, double-blind study in healthy men and postmenopausal women with or without vasomotor symptoms (VMS). Its purpose is to evaluate safety, pharmacokinetics, pharmacodynamics, as well as frequency and severity of VMS with subcutaneous doses of ABCL635. In January 2026, following an interim assessment of the safety, tolerability, and pharmacodynamic data collected from healthy volunteers in the Phase 1 portion of the study, we announced the dosing of first patients in the Phase 2 portion of the ongoing Phase 1/2 clinical trial.
Current wording
ABCL635 is an investigational neurokinin 3 receptor (NK3R) antagonist antibody drug candidate that is being developed as a non-hormonal, long-acting, subcutaneous treatment for moderate and severe vasomotor symptoms (VMSM-S) commonly known as hot flashes, due to menopause. The Phase 1/2 clinical trial is a randomized, placebo-controlled, double-blind study in healthy men and postmenopausal women with or without vasomotor symptoms. Its purpose is to evaluate safety, pharmacokinetics, pharmacodynamics, as well as frequency and severity of VMS with subcutaneous doses of ABCL635.
Previous wording
In January 2026, following an interim review of safety, tolerability, and pharmacodynamic data from healthy volunteers in the Phase 1 portion of the ABCL635 Phase 1/2 clinical trial, we announced the dosing of first patients in the Phase 2 portion of the study.
Current wording
In January 2026, following an interim assessment of the safety, tolerability, and pharmacodynamic data collected from healthy volunteers in the Phase 1 portion of the study, we announced the dosing of first patients in the Phase 2 portion of the ongoing Phase 1/2 clinical trial.
Previous wording
In May 2026, we announced positive interim Phase 1 data for ABCL635. Treatment with ABCL635 achieved potent and sustained reduction in biomarkers of target engagement, demonstrated a favorable tolerability profile with no observed liver toxicity or serious adverse events reported to date, and pharmacokinetic data supports monthly dosing. Enrollment of the Phase 2 study has been completed and the top-line data readout is expected in August.
Current wording
In May 2026, we announced positive interim Phase 1 data for ABCL635. Treatment with ABCL635 achieved potent and sustained reduction in biomarkers of target engagement, demonstrated a favorable tolerability profile with no observed liver toxicity or serious adverse events reported, and pharmacokinetic data supports monthly dosing.
Previous wording
For ABCL575, the Phase 1 clinical trial is a randomized, placebo-controlled, double-blind study to assess safety and tolerability in healthy participants following subcutaneous doses of ABCL575. Dosing for the Phase 1 study has been completed with the top-line data readout expected in Q4 2026. At present, we have no plans to pursue development past Phase 1.
Current wording
ABCL575 is an investigational antibody drug candidate targeting OX40 ligand for the treatment of atopic dermatitis and other autoimmune conditions. The Phase 1 clinical trial is a randomized, placebo-controlled, double-blind study to assess safety and tolerability in healthy participants following subcutaneous doses of ABCL575. In November 2026, we announced top-line data for the Phase 1 clinical trial of ABCL575. The Phase 1 study met all endpoints, demonstrating a favorable tolerability and pharmacokinetic profile that supports an extended dosing interval. At present, we do not intend to pursue development past Phase 1.
Previous wording
In 2025, we advanced ABCL688 and ABCL386 into IND/CTA-enabling studies. ABCL688 is an antibody drug candidate for an undisclosed indication in autoimmunity and is the second program from our G protein-coupled receptor (GPCR) and ion channel platform to advance into IND/CTA-enabling studies. We anticipate submission of an IND/CTA for ABCL688 in 2027. ABCL386 is an antibody drug candidate against an undisclosed target in oncology. ABCL386 is in IND/CTA-enabling activities, and we anticipate initiating Phase 1/2 clinical trials in patients in 2027. Both programs align with the Company's strategy of building value, through partnerships, and through internal discovery and development of potential first-in-class antibody drugs.
Current wording
In 2025, we advanced ABCL688 and ABCL386 into IND/CTA-enabling activities. ABCL688 is an investigational antibody drug candidate for an undisclosed indication in autoimmunity and is the second program from our G protein-coupled receptor (GPCR) and ion channel platform to advance into IND/CTA-enabling activities. ABCL386 is an investigational antibody drug candidate for an undisclosed target in oncology.
Previous wording
The following table summarizes our key operating results for the three and six months ended June 30, 2025 and June 30, 2026. 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, 2025 and September 30, 2026. All figures are in U.S. dollars and amounts are expressed in thousands, except loss per share data:
Previous wording
In June 2026, we entered into a preclinical research collaboration, option, and license agreement with Jazz Pharmaceuticals PLC (Jazz) to discover and develop next-generation T-cell engaging (TCE) multispecific antibodies. Under the agreement, we received a $56.0 million non-refundable upfront payment in the quarter to perform discovery and early-stage research activities for two initial programs, with an additional $28.0 million due upon the initiation of a third program within 12 months. Jazz holds exclusive options to develop and commercialize each program. If Jazz exercises these options, we are eligible to receive up to $792.0 million per program in option fees and milestone payments, as well as tiered royalties on net sales ranging from mid-single digits to low double-digits. The agreement also provides a mechanism to mutually initiate up to two additional programs, and for us to conduct certain investigational new drug (IND)-enabling studies and manufacture clinical supply for any program under the collaboration.
Current wording
In June 2026, we entered into a preclinical research collaboration, option, and license agreement with Jazz Pharmaceuticals PLC (Jazz) to discover and develop next-generation T-cell engaging (TCE) multispecific antibodies. Under the agreement, we received a $56.0 million non-refundable upfront payment in the second quarter of 2026 to perform discovery and early-stage research activities for two initial programs, with an additional $28.0 million due upon the initiation of a third program within 12 months. Jazz holds exclusive options to develop and commercialize each program. If Jazz exercises these options, we are eligible to receive up to $792.0 million per program in option fees and milestone payments, as well as tiered royalties on net sales ranging from mid-single digits to low double-digits. The agreement also provides a mechanism to mutually initiate up to two additional programs, and for us to conduct certain IND-enabling studies and manufacture clinical supply for any program under the collaboration.
Previous wording
We regularly review the following business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. We believe that the following metrics are important to understand our current business. These metrics may change or may be substituted for additional or different metrics as our business develops as further described below with respect to changes in this and upcoming reports.
Current wording
We regularly review the following business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. We believe that the following metrics are important to understand our current business. These metrics may change or may be substituted for additional or different metrics as our business develops.
Previous wording
Comparison of the three and six months ended June 30, 2025 and June 30, 2026:
Current wording
Comparison of the three and nine months ended September 30, 2025 and September 30, 2026:
Previous wording
Revenue decreased by $13.0 million from the three months ended June 30, 2025 compared to the three months ended June 30, 2026 and decreased $9.0 million from the six months ended June 30, 2025 compared to the six months ended June 30, 2026. The decrease is attributable to licensing revenue recognized in the second quarter of 2025 and the timing and progress of our research and development efforts. We expect research fee revenues in future periods to be positively impacted as we perform our research obligations and recognize revenue from the upfront payments received under our recent collaborations with Jazz and Vertex, as further detailed in "Recent Developments".
Current wording
Revenue increased by $1.7 million from the three months ended September 30, 2025 compared to the three months ended September 30, 2026 and decreased $7.3 million from the nine months ended September 30, 2025 compared to the nine months ended September 30, 2026. The decrease is attributable to licensing revenue recognized in the second quarter of 2025 and the timing and progress of our research and development efforts. We expect research fee revenues in future periods to be positively impacted as we perform our research obligations and recognize revenue from the upfront payments received under our recent collaborations with Jazz and Vertex, as further detailed in "Recent Developments".
Previous wording
Total research and development expenses increased by $10.9 million, or 13%, from the six months ended June 30, 2025, compared to the six months ended June 30, 2026. Of the total increase, external clinical program costs were $9.0 million for the six months ended June 30, 2026 compared to $0.7 million for the six months ended June 30, 2025, as ABCL575 and ABCL635 entered the clinic in the end of the second quarter of 2025. Preclinical and discovery costs decreased by $2.2 million period-over-period to $15.0 million, primarily driven by prior-period preclinical spend from ABCL635 and ABCL575 IND/CTA-enabling activities. Total compensation expense, including stock-based compensation, was $45.7 million for the six months ended June 30, 2026 and remained substantially unchanged compared to the prior period. Unallocated internal costs of $23.0 million for the six months ended June 30, 2026 increased by $3.6 million compared to the six months ended June 30, 2025 due to clinical manufacturing activities and the use of materials and supplies.
Current wording
Total research and development expenses decreased by $11.5 million, or (21)%, from the three months ended September 30, 2025, compared to the three months ended September 30, 2026. External clinical program costs were $4.1 million for the three months ended September 30, 2026 compared to $3.2 million for the three months ended September 30, 2025, reflecting the clinical costs for ABCL575 and ABCL635 in each period. Preclinical and discovery costs were $7.2 million for the three months ended September 30, 2026 compared to $3.1 million for the three months ended September 30, 2025 reflecting the progress of our internal programs, and the Company also made specific investments in two internal programs totalling $15.0 million in the three months ended September 30, 2025. Total compensation expense, including stock-based compensation, was $21.8 million for the three months ended September 30, 2026 and remained substantially unchanged compared to the prior period. Similarly, unallocated internal costs of $10.4 million for the three months ended September 30, 2026 were consistent period over period.
Previous wording
Total research and development expenses increased by $6.8 million, or 17%, from the three months ended June 30, 2025, compared to the three months ended June 30, 2026. Of the total increase, external clinical program costs were $5.1 million for the three months ended June 30, 2026 compared to $0.8 million for the three months ended June 30, 2025, as ABCL575 and ABCL635 entered the clinic towards the end of the second quarter of 2025. Preclinical and discovery costs were $6.9 million and remained consistent period over period. Total compensation expense, including stock-based compensation, was $22.2 million for the three months ended June 30, 2026 and remained substantially unchanged compared to the prior period. Similarly, unallocated internal costs of $11.7 million for the three months ended June 30, 2026 were consistent period over period.
Current wording
Total research and development expenses decreased by $0.6 million from the nine months ended September 30, 2025, compared to the nine months ended September 30, 2026. External clinical program costs were $13.0 million for the nine months ended September 30, 2026 compared to $4.0 million for the nine months ended September 30, 2025, as ABCL575 and ABCL635 entered the clinic in the end of the second quarter of 2025. Preclinical and discovery costs were $22.2 million for the nine months ended September 30, 2026 compared to $20.1 million for the nine months ended September 30, 2025, and the Company also made specific investments in two internal programs totalling $15.0 million in the third quarter of 2025. Total compensation expense, including stock-based compensation, was $67.6 million for the nine months ended September 30, 2026 and remained substantially unchanged compared to the prior period. Unallocated internal costs of $33.3 million for the nine months ended September 30, 2026 were consistent period over period.
Previous wording
Sales, general, and administrative expenses decreased by $8.1 million, or (37)%, from thethree months ended June 30, 2025 compared to the three months ended June 30, 2026 anddecreased by $14.9 million, or(36)%, from the six months ended June 30, 2025 compared to thesix months ended June 30, 2026. Total compensation expense, inclusive of stock-based compensation, was $11.3 million for the three months ended June 30, 2025, compared to $8.8 million for thethree months ended June 30, 2026 and $22.3 million for thesix months ended June 30, 2025, compared to$17.9 million for the six months ended June 30, 2026. The decrease in compensation expense is a result of our continued optimization of headcount in light of our internal pipeline focus. Legal, software, and other general administrative costs were $10.7 million for the three months ended June 30, 2025, compared to $5.0 million for thethree months ended June 30, 2026 and$18.8 million for thesix months ended June 30, 2025 compared to$8.3 million for the six months ended June 30, 2026. The decrease was primarily due to a legal settlement in December 2025 and a resulting reduction in legal fees incurred in 2026.
Current wording
Sales, general, and administrative expenses decreased by $11.3 million, or (45)%, from thethree months ended September 30, 2025 compared to the three months ended September 30, 2026 anddecreased by $26.2 million, or(40)%, from the nine months ended September 30, 2025 compared to thenine months ended September 30, 2026. Total compensation expense, inclusive of stock-based compensation, was $11.0 million for the three months ended September 30, 2025, compared to $8.2 million for thethree months ended September 30, 2026 and $33.3 million for thenine months ended September 30, 2025, compared to$26.1 million for the nine months ended September 30, 2026. The decrease in compensation expense is a result of our continued optimization of headcount in light of our internal pipeline focus. Legal, software, and other general administrative costs were $13.9 million for the three months ended September 30, 2025, compared to $5.4 million for thethree months ended September 30, 2026 and$32.7 million for thenine months ended September 30, 2025 compared to$13.7 million for the nine months ended September 30, 2026. The decrease was primarily due to a legal settlement in December 2025 and a resulting reduction in legal fees incurred in 2026.
Previous wording
Depreciation and amortization expense increased by$1.5 million, or 28%, from the three months ended June 30, 2025 compared to the three months ended June 30, 2026 and increased by$3.0 million, or 28%, from thesix months ended June 30, 2025 compared to the six months ended June 30, 2026. The increase was primarily due to the commencement of depreciation of our clinical manufacturing facility that was put in service in December 2025.
Current wording
Depreciation and amortization expense increased by$1.6 million, or 30%, from the three months ended September 30, 2025 compared to the three months ended September 30, 2026 and increased by$4.6 million, or 29%, from thenine months ended September 30, 2025 compared to the nine months ended September 30, 2026. The increase was primarily due to the commencement of depreciation of our clinical manufacturing facility that was put in service in December 2025.
Previous wording
Interest and other income decreased by$9.6 million, or(100)%, from the three months ended June 30, 2025 compared to the three months ended June 30, 2026 and decreased by$11.5 million, or (76)%, from thesix months ended June 30, 2025 compared to the six months ended June 30, 2026. The decrease was primarily driven by foreign exchange in the period due to fluctuations in the Canadian and U.S. dollar exchange rate, interest income driven by our cash, cash equivalents, and marketable securities balances and interest rate yields in the period, and other fair value adjustments.
Current wording
Interest and other income increased by$2.1 million, or 44%, from the three months ended September 30, 2025 compared to the three months ended September 30, 2026 and decreased by$9.4 million, or (47)%, from thenine months ended September 30, 2025 compared to the nine months ended September 30, 2026. The change was primarily driven by foreign exchange in the period due to fluctuations in the Canadian and U.S. dollar exchange rate, interest income driven by our cash, cash equivalents, and marketable securities balances and interest rate yields in the period, and other fair value adjustments.
Previous wording
Grants and incentives increased by$0.2 million, or 4%, from the three months ended June 30, 2025 compared to the three months ended June 30, 2026 and increased by$0.3 million, or 4%, from thesix months ended June 30, 2025 compared to the six months ended June 30, 2026. The change 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 increased by$0.9 million, or 33%, from the three months ended September 30, 2025 compared to the three months ended September 30, 2026 and increased by$1.3 million, or 12%, from thenine months ended September 30, 2025 compared to the nine months ended September 30, 2026. 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
Income tax recovery increased by$1.9 million from the three months ended June 30, 2025 compared to the three months ended June 30, 2026 and increased by$0.9 million from thesix months ended June 30, 2025 compared to the six months ended June 30, 2026. The increase was primarily driven by the availability of carry-back of losses to recover previously paid taxes.
Current wording
Income tax recovery decreased by$9.6 million, or(82)%, from the three months ended September 30, 2025 compared to the three months ended September 30, 2026 and decreased by$8.7 million, or(42)%, from thenine months ended September 30, 2025 compared to the nine months ended September 30, 2026. The decrease was primarily driven by the availability of carry-back of losses to recover previously paid taxes.
Previous wording
As of June 30, 2026, we had $540.1 million of cash, cash equivalents and marketable securities, comprising $120.1 million in cash and cash equivalents and $420.0 million in marketable securities. The increase of $6.3 million since December 31, 2025, was primarily driven by the full receipt of a $36.0 million litigation settlement, of which was receivable at December 31, 2025, and a $56.0 million upfront paymentto discover and develop next-generation T-cell engaging (TCE) multispecific antibodies. This was partially offset by cash flow used in operations due to our continued research and development activity for internal programs in discovery, preclinical, and clinical development as well as for partnered programs.
Current wording
As of September 30, 2026, we had $764.4 million of cash, cash equivalents and marketable securities, comprising $163.8 million in cash and cash equivalents and $600.6 million in marketable securities. The increase of $230.6 million since December 31, 2025, was primarily driven by our financing in August where we raised net proceeds of $188.8 million, the full receipt of a $36.0 million litigation settlement, of which was receivable at December 31, 2025, and $84.0 million in upfront payments receivedto discover and develop next-generation T-cell engaging (TCE) multispecific antibodies. This was partially offset by cash flow used in operations due to our continued research and development activity for internal programs in discovery, preclinical, and clinical development as well as for partnered programs.
Previous wording
We intend to continue to invest in research and development efforts towards expanding our capabilities and expertise, grow and advance our internal pipeline. Simultaneously, we intend to optimize our long-term office-lease arrangements and intend to assign or fully sublease the office and laboratory space constructed through the Beedie JV.
Current wording
We intend to continue to invest in research and development efforts towards expanding our capabilities and expertise, grow and advance our internal pipeline. Simultaneously, we intend to optimize our long-term office-lease arrangements. We are currently evaluating alternatives for certain of our office and laboratory facilities to ensure our physical infrastructure best supports our core business objectives.
Previous wording
We substantially completed our final large platform investments in our clinical manufacturing facility and our corporate headquarters in 2025. With the completion of these large platform investments, we expect a reduction in investing cash outflows, shifting our capital allocation from building capabilities to using them as we execute our strategy of building on our internal pipeline. Based on our current business plan, we believe that our available liquidity from existing total cash balances (cash, cash equivalents, and restricted cash), marketable securities, and government contributions, will be sufficient to meet our working capital and capital expenditures over at least the next 36 months following the date of this report.
Current wording
We substantially completed our final large platform investments in our clinical manufacturing facility and corporate offices in 2025. With the completion of these large platform investments, we expect a reduction in investing cash outflows, shifting our capital allocation from building capabilities to using them as we execute our strategy of building on our internal pipeline. Based on our current business plan, we believe that our available liquidity from existing total cash balances (cash, cash equivalents, and restricted cash), marketable securities, and government contributions, will be sufficient to meet our working capital and capital expenditures over at least the next 36 months following the date of this report.
Previous wording
($75.0 million CAD) was committed by the Government of Canada and the Government of British Columbia, respectively, to build new capabilities in Canada to develop, manufacture, and deliver antibody medicines to patients through Phase 1 clinical trials and build expertise in translational science, technical operations, and clinical operations and research. At June 30, 2026, our government contribution agreements provided an estimated CAD$156.1 million ($110.0 million) in total available funding eligible for future claims. See the notes to our condensed consolidated financial statements for further information related to the government contributions.
Current wording
In May of 2023, we entered into multi-year contribution agreements with the Government of Canada and the Government of British Columbia. Under the agreements, up to $166.7 million ($225.0 million CAD) and $55.6 million ($75.0 million CAD) was committed by the Government of Canada and the Government of British Columbia, respectively, to build new capabilities in Canada to develop, manufacture, and deliver antibody medicines to patients through Phase 1 clinical trials and build expertise in translational science, technical operations, and clinical operations and research. At September 30, 2026, our government contribution agreements provided an estimated CAD$146.8 million ($103.2 million) in total available funding eligible for future claims. See the notes to our condensed consolidated financial statements for further information related to the government contributions.
Previous wording
Net cash used in operating activities decreased from $44.0 million in thesix months ended June 30, 2025 to $7.6 million in thesix months ended June 30, 2026. The decrease in cash flows used in operations was primarily attributable toa $56.0 million upfront payment receivedto discover and develop next-generation TCE multispecific antibodies, the full receipt of a $36.0 million litigation settlement that was receivable at December 31, 2025, and working capital movements, partially offset by upfront payments received in Q1 2025 that did not recur in the current period.
Current wording
Cash flows from operating activities changed from $96.6 million used in thenine months ended September 30, 2025 to $19.3 million provided by operating activities in thenine months ended September 30, 2026. The change to net cash provided by operating activities was primarily attributable toa $84.0 million in upfront payments received for two separate TCE dealsto discover and develop next-generation TCE multispecific antibodies with Jazz Pharmaceuticals and Vertex Pharmaceuticals, the full receipt of a $36.0 million litigation settlement that was receivable at December 31, 2025, receipt of taxes receivable, and working capital movements, partially offset by upfront payments received in 2025 that did not recur in the current period.
Previous wording
Net cash used by investing activities decreased from $23.9 million in thesix months ended June 30, 2025 to$13.7 million in thesix months ended June 30, 2026. The decrease in cashflows used by investing activities was primarily attributable to a $36.2 million reductionin purchases of property and equipment and other long-term assets, partially offset by a$26.5 million reductionin net proceeds from marketable securities as cash was used to purchase additional marketable securities in the current period.
Current wording
Cash flows from investing activities changed from $12.6 million net cash provided by investing activities in thenine months ended September 30, 2025 to$197.2 million cash used by investing activities in thenine months ended September 30, 2026. The increase in cashflows used by investing activities is primarily due to the net purchase of $195.7 million of marketable securities in the nine months ended September 30, 2026, following the financing in August 2026. The increase in cash used in investing activities was partially offset by a $47.9 million reductionin purchases of property and equipment and other long-term assets.
Previous wording
Net cash provided by financing activities increased from $2.6 million in thesix months ended June 30, 2025 to $13.6 million in the six months ended June 30, 2026. The increase was primarily attributable to proceeds from government contributions and other long-term liabilities.
Current wording
Net cash provided by financing activities increased from $10.0 million in thenine months ended September 30, 2025 to $214.2 million in the nine months ended September 30, 2026. The increase was primarily attributable to the August financing where we raised net proceeds of $188.8 million. The remaining increase in financing activities is due to proceeds from government contributions and employee stock option exercises.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
In May 2026, we announced positive interim Phase 1 data for ABCL635. Treatment with ABCL635 achieved potent and sustained reduction in biomarkers of target engagement, demonstrated a favorable safety profile with all doses well-tolerated and no observed liver toxicity or serious adverse events, and pharmacokinetic data supported monthly dosing. Enrollment of the Phase 2 study has been completed and the top-line data readout is expected in August of 2026.
Previous report — wording carried elsewhere
In May of 2023, we entered into multi-year contribution agreements with the Government of Canada and the Government of British Columbia. Under the agreements, up to $166.7 million ($225.0 million CAD) and $55.6 million