AbCellera Reports 57% Revenue Decline and $45.6 Million Net Loss in Q1 2025

AbCellera Biologics Inc. reported a significant decline in its financial performance for the first quarter of 2025, as detailed in its latest 10-Q filing. The company generated total revenue of $4.2 million, a decrease of 57% from $10.0 million in the same period last year. This decline was primarily attributed to a substantial drop in research fees, which fell by 58% to $4.1 million, reflecting a strategic shift towards prioritizing internal research and development programs over external partnerships. The company also recorded a net loss of $45.6 million for the quarter, compared to a net loss of $40.6 million in the prior year, resulting in a loss per share of $0.15.

In terms of operational metrics, AbCellera's total operating expenses increased slightly to $66.9 million, up from $64.8 million in the previous year. This increase was driven by higher research and development costs, which rose by 8% to $42.5 million, reflecting ongoing investments in internal programs. The company’s cash and cash equivalents, along with marketable securities, totaled $605.3 million as of March 31, 2025, a decrease from $625.6 million at the end of 2024, primarily due to cash used in operations and investments in corporate infrastructure.

Strategically, AbCellera has advanced two of its internal programs into IND-enabling studies, with plans to initiate Phase 1 clinical trials in Canada in the second half of 2025. The company also launched ABCL635, a first-in-class antibody targeting vasomotor symptoms associated with menopause. As of the end of the quarter, AbCellera had initiated a cumulative total of 97 partner-initiated programs, with 16 molecules having advanced into clinical stages.

The company continues to face various risks, including reliance on partnerships for revenue generation and the inherent uncertainties of drug development. AbCellera's management emphasized the importance of maintaining robust discovery and development capabilities to navigate these challenges. Looking ahead, the company expects to continue investing significantly in research and development, with a focus on expanding its internal pipeline and enhancing its operational capabilities. Despite the current financial losses, management believes that the available liquidity will be sufficient to meet operational needs for at least the next 36 months without requiring additional external funding.