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    ABCL
    Earnings call· Jun 2026(Q2 FY26)

    AbCellera Biologics Q2 FY26 earnings call ABCL

    Aug 5, 2026 Source

    Executive summary

    AbCellera Q2 FY26 — Strong Liquidity and Pipeline Progress with Key Collaborations

    AbCellera reported a challenging revenue quarter but highlighted significant progress in its clinical pipeline, particularly with the ABCL635 Phase II study nearing a top-line data readout. The company also strengthened its T cell engager platform through new collaborations with Vertex and Jazz Pharmaceuticals, securing substantial upfront payments and potential downstream value, while maintaining a robust liquidity position to fund future pipeline investments.

    Highlights

    5

    • Completed enrollment and initial dosing for ABCL635 Phase II study ahead of schedule, expecting top-line data soon.

    • Secured two new T cell engager (TCE) collaborations with Vertex and Jazz Pharmaceuticals, adding over $110 million in upfront cash.

    • Maintained a strong liquidity position with over $565 million in cash and equivalents and $110 million in available government funding.

    • Jazz Pharmaceuticals deal has potential for over $2 billion in downstream payments and mid-single-digit to low double-digit tiered royalties.

    • SG&A expenses decreased significantly to $14 million from $22 million last year, primarily due to conclusion of IP litigation.

    Concerns

    5

    • Total revenue for the quarter was $4 million, a significant decrease from $17 million in Q2 2025.

    • Net loss increased to $55 million in Q2 2026 from $35 million in Q2 2025.

    • R&D expenses increased to $46 million, up $7 million from last year, reflecting investment in internal programs.

    • Missed the H1 timeline for moving another program into IND-enabling activities.

    • Operating activities used approximately $8 million in cash for the first half of 2026, despite Jazz upfront payments.

    Guidance & targets

    6
    CategoryTargetConfidence
    ABCL635 Phase II Top-line Data Readout
    Very soon
    high materiality
    High
    ABCL-688 and ABCL386 Clinical Entry
    Enter Phase I/II studies
    medium materiality
    High
    ABCL575 Phase I Data Readout
    On track for readout
    low materiality
    High
    ABCL575 Future Development
    No plans to develop past Phase I
    low materiality
    High
    Jazz Pharmaceuticals Collaboration - Third Program Payment
    Receive $28 million
    medium materiality
    High
    Liquidity Runway
    Sufficient liquidity to fund at least the next 3 years of pipeline investments
    high materiality
    High

    Operational metrics

    15
    Cash and equivalents
    $565 million
    Q2 FY26

    Strong liquidity position.

    Total cash and marketable securities
    $567 million$6 million increase in H1 FY26
    Q2 FY26
    Available committed government funding
    $110 million
    Q2 FY26

    From Government of Canada's Strategic Innovation Fund and Government of British Columbia.

    Total available liquidity
    $675 million
    Q2 FY26

    Includes cash and equivalents and unused government funding.

    Revenue
    $4 millionDown from $17 million in Q2 FY25
    Q2 FY26

    Consisted mostly of research fees.

    Research and development expenses
    $46 millionUp $7 million from Q2 FY25
    Q2 FY26

    Reflects focus on investment in internal programs.

    Sales, general and administration expenses
    $14 millionDown from $22 million in Q2 FY25
    Q2 FY26

    Relates to conclusion of intellectual property litigation case and changes in teams.

    Net loss
    $55 millionUp from $35 million in Q2 FY25
    Q2 FY26
    Loss per share (basic and diluted)
    $0.18
    Q2 FY26
    Cash used in operating activities
    $8 million
    H1 FY26

    Included receipt of $56 million from Jazz upfront payments.

    Upfront payments received from Jazz collaboration
    $56 million
    Q2 FY26

    For the first two programs under the TCE deal.

    Capital expenditures
    $6 million
    YTD

    Part of investment activities.

    Government grants received
    $7 million
    YTD

    Offset capital expenditures.

    Investment in short-term marketable securities
    $15 million
    Q2 FY26

    Part of treasury strategy.

    Total invested in short-term marketable securities
    $420 million
    Q2 FY26

    Deals & partnerships

    3
    AbbVieFirst significant TCE collaboration

    TCE collaboration, mentioned as a reminder of prior work.

    VertexTCE collaboration for autoimmune diseases and other conditions$28 million upfront payments

    Announced last week.

    Jazz PharmaceuticalsTCE collaboration including 3 confirmed discovery programs$84 million in total near-term upfront payments ($56 million received, $28 million expected)

    Announced in June. Considered one of the largest TCE discovery deals reported to date.

    Risks & headwinds

    4
    Significant decline in total revenueQ2 FY26

    $4 million in Q2 FY26 vs. $17 million in Q2 FY25

    Mitigation: Focus on internal programs and leveraging process development and clinical manufacturing investments; new collaborations adding upfront cash.

    Increased net lossQ2 FY26

    $55 million in Q2 FY26 vs. $35 million in Q2 FY25

    Mitigation: Investment in internal programs (R&D increase); strong liquidity position to fund pipeline.

    Missed timeline for moving a program into IND-enabling activitiesH1 FY26

    Missed H1 FY26 goal

    Mitigation: Making good progress, confident in productivity and innovation of discovery.

    Key remaining scientific risk in ABCL635 program regarding the effect of blocking NK3R in the preoptic nucleusNear-term (awaiting Phase II data)

    Discussed as "the key remaining scientific risk"

    Mitigation: Phase II data will provide the answer; strong target engagement in main driver neurons (infundibular nucleus) already demonstrated.

    What to watch in Q3 FY26

    5

    ABCL635 Phase II Data Readout

    Very soon (expected Q3 FY26)
    CurrentEnrollment and initial dosing completed in June, ahead of schedule.
    TargetPositive top-line data, clean safety profile, efficacy comparable to small molecules (20% response rate, >2 hot flashes/day reduction).

    Why it matters

    This is the most important data readout for the year and will highly derisk the program, impacting its future development and commercial potential.

    The most important data readout this year is the top line results for ABCL635 in the treatment of moderate to severe hot flashes associated with menopause... Based on this, we expect a top line data readout very soon.

    Q&A highlights

    6

    What constitutes success for ABCL635's upcoming VMS data, specifically regarding severity and frequency reduction thresholds?

    Carl Hansen stated that success means a clean safety profile and efficacy comparable to approved small molecules (e.g., 20% response rate and reduction of at least 2 hot flashes/day for frequency). Severity is expected to track with frequency and has historically been easier to hit.

    “On the frequency side, we are obviously looking for a response relative to placebo that's on the order of 20% at least, which is about what you see with the small molecules. And there's an additional requirement that you have at least 2 -- a reduction in frequency of at least 2 hot flashes per day, which is something that we expect to meet under the same criteria.”

    asked by Steven Seedhouse · answered by Carl L. Hansen

    2 min read6 chapters

    Detailed Narrative

    01

    ABCL635 Phase II Progress and Expectations

    The Phase II study for ABCL635, targeting moderate to severe hot flashes associated with menopause, completed enrollment and initial dosing in June, ahead of schedule. Top-line data is expected very soon. Management believes positive data would highly derisk the program, with success defined by a clean safety profile and efficacy comparable to approved small molecules, particularly a 20% response rate and reduction of at least two hot flashes per day in frequency. The company also plans to evaluate ABCL635 for VMS associated with cancer treatment.

    02

    T Cell Engager Platform Development and Partnerships

    AbCellera has invested five years in developing its T cell engager (TCE) platform, which now includes diverse CD3 and co-stimulatory antibody panels, scalable engineering workflows, and in vitro assays. This comprehensive toolkit has enabled two new significant collaborations with Vertex and Jazz Pharmaceuticals, adding over $110 million in upfront cash and potential for billions in downstream payments. These partnerships validate the platform's capability for developing multi-specific TCEs across oncology and autoimmunity.

    03

    Jazz Pharmaceuticals Collaboration Details

    The collaboration with Jazz Pharmaceuticals includes three confirmed discovery programs, with $84 million in total near-term upfront payments. AbCellera has already received $56 million for the first two programs and expects another $28 million for the third program within 12 months. The deal has a potential total value of over $2 billion in downstream payments and mid-single-digit to low double-digit tiered royalties, with options for two additional programs, potentially increasing the total deal value to over $4 billion.

    04

    Vertex Collaboration Details

    AbCellera's collaboration with Vertex focuses on TCEs for autoimmune diseases. Under the terms, AbCellera will receive $28 million in upfront payments and is eligible for potential downstream payments and tiered royalties on net sales. The agreement also includes a potential option for AbCellera to conduct process development and clinical manufacturing for Vertex.

    05

    Financial Position and Liquidity

    AbCellera maintains a strong liquidity position, ending the quarter with $567 million in cash and marketable securities, a $6 million increase in the first half of 2026. Including available committed government funding, total available liquidity exceeds $675 million. The company believes this is sufficient to fund at least the next three years of pipeline investments, despite an increase in R&D expenses to $46 million.

    06

    Pipeline Updates (Other Programs)

    ABCL-688 and ABCL386 are progressing through IND-enabling activities and are expected to enter Phase I/II studies in 2027. The Phase I trial for ABCL575 completed dosing and is on track for a Q4 readout, though the company has no plans to develop it past Phase I. An internal program missed its H1 timeline for IND-enabling activities but is making good progress.

    AI-generated summary of the company’s earnings call. Not investment advice.