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Item 1. Business

2025-02-27 compared with 2024-02-20 · 317 added, 331 removed, 553 unchanged (54% of the section changed)

We are a team of scientists, engineers, creatives, and business professionals addressing the barriers of conventional antibody drug development.

Motivated by our mission to bring better antibody drugs to patients faster, we focus on solving general problems to catalyze a transformation in how antibody drugs are discovered and developed.

To maximize the value and impact of our work, we are advancing a pipeline of programs and strategically partnering with groups that have novel science, innovative technology, or a strong track record of bringing programs through clinical development.

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.

Our first two internal programs, ABCL635 and ABCL575, are currently in late-preclinical studies.

ABCL635 is a potential first-in-class antibody drug candidate for metabolic and endocrine conditions, and ABCL575 is a potential best-in-class antibody drug candidate with broad potential in inflammatory conditions and autoimmune diseases and an initial indication in atopic dermatitis.

We intend to submit Clinical Trial Applications (CTAs), the Canadian equivalent to an Investigational New Drug (IND) submission, for both programs in Q2 2025.

In addition to ABCL635 and ABCL575, we are advancing a pipeline of more than 20 internal discovery programs across multiple modalities and indications.

Our strategy is to build a competitive advantage in the creation of antibody medicines and use that advantage to bring innovative and impactful medicines to patients.

We have several core beliefs that impact how we think about our business:

Investments in technology will improve the quality, speed, and success of drug development.

Investments in technology will improve the quality, speed, and success of antibody drug development.

Long-term value-creation begins with building a company that can create multiple products repeatedly and successfully.

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We define our strategy and allocate resources to optimize long-term value.

After over a decade of building our Company and working on over 100 drug discovery programs, we have grown from six entrepreneurial founders in a laboratory, to a high-performing team of approximately 600 people spread across three countries and two continents.

We continue to invest in improving the efficiency of our business to increase the precision and speed by which we can bring new therapies to the clinic.

We aspire to be recognized as the biotechnology industry’s most powerful engine for antibody discovery and development, spanning the path from target to clinical testing.

Drug development timelines are long

We understand that the challenges and opportunities in biotechnology are different from those of other sectors.

The process of developing drugs is complex and highly regulated, and as a result product development timelines are long.

Historically, it has taken more than ten years for the average biologic drug to go from early discovery to reach the market, at a cost of well over $1 billion.

Because of the inherently complex regulatory regime governing the testing, approval, and marketing of a drug candidate, drug developers may commit large amounts of time and resources toward the development of a particular drug.

For this reason, we believe that drug developers need to ensure they have optimal drug candidates from the beginning.

Our strategy is based on two basic elements

We focus on the development of antibody-based drugs and are committed to improving the way these drugs are discovered and developed.

As business operators, we think deeply about capital allocation and strive to maximize long-term value while mitigating the risks that are inherent in drug development and in scaling a company.

This balance is reflected in our business model and investments.

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.

Our strategy is straightforward and has remained unchanged since the founding of our Company:

• First, we seek to build a competitive advantage in bringing antibody therapeutics from target into clinical testing by combining expertise, technologies, and infrastructure to build an integrated engine for antibody drug discovery and development.

• Second, we use our engine to work with strategic partners to build a large and diversified portfolio of royalty (and equivalent) stakes in future antibody drugs.

As our capabilities have grown, we are also strategically leveraging our engine to develop internal programs to address areas of high unmet medical need and to build and advance our pipeline of first-in-class and best-in-class medicines.

Our business model is capital-efficient

We build and apply our engine to solve long-standing problems in drug discovery and development.

After more than a decade of building our Company and working on over 100 drug discovery programs, we have grown from six entrepreneurial founders in a laboratory, to a high-performing team of approximately 600 people.

We are focused on the development of antibody-based drugs and are committed to improving the way these drugs are discovered, developed, and brought to patients.

As business operators, we think deeply about capital allocation and strive to maximize long-term value by advancing a portfolio of antibody therapeutics both in our internal pipeline and with our strategic partners.

Our strategy is to:

• Build integrated and differentiated antibody discovery and development capabilities that bring next generation antibody therapeutics to the clinic;

• Use those capabilities to bring a portfolio of potential first-in-class and best-in-class programs in areas of high unmet medical need to the clinic for ourselves and for our partners;

• Capture value through our ownership of a portfolio of programs, varying from royalty positions to outright ownership of potential future antibody therapeutics.

Our Business Model

We build and apply our capabilities to solve long-standing problems in drug discovery and development.

As we do, we convert investments in talent and technology into intellectual capital:

intellectual property, know-how, optimized workflows, expertise, and data.

We believe this continued accumulation of intellectual capital makes our engine increasingly effective at discovering and developing future antibody drugs.

intellectual property, know-how, optimized workflows, expertise, data, and ultimately drugs.

We believe this continued accumulation of intellectual capital makes our internal capabilities increasingly effective at discovering and developing future antibody drugs.

Our teams and technology get stronger as we solve each new problem.

Improved capabilities enable and attract new program opportunities.

A significant part of our business is based on partnering.

Our integrated capabilities were built through over 10 years of drug discovery partnerships with some of the industry’s most innovative groups.

Historically, a significant part of our business has been based on partnering.

Partners seeking a competitive advantage approach us with ideas for new antibody drugs and specific problems that need to be solved.

We deliver optimized antibody drug candidates for further preclinical development.

We structure each partner-initiated program to reflect the needs of the program and the contributions from each partner.

We structure each partner-initiated

program to reflect the needs of the program and the contributions from each partner.

These can take the form of partner-initiated discovery agreements, which include near-term payments, clinical and commercial milestones, and royalties on net sales.

Increasingly, we are entering into co-development agreements where both partners contribute to and co-lead drug discovery and development.

The majority of the value of each deal is associated with downstream stakes that accrue in our portfolio, and initial costs are either covered by fees or shared between partners.

All together, we believe that these dynamics allow us to deploy capital efficiently on partner-initiated programs.

As of December 31, 2023, we had 203 programs under contract with 46 unique partners, 87 of which include downstream participation in the form of milestones and royalty (and equivalent) stakes.

We have started over 110 of these programs.

At the portfolio level, we reduce risk through diversification across discovery programs, therapeutic areas, and partners, making our portfolio risk significantly lower than the binary risk that is typical of single drug development programs.

In the future we would anticipate some outlicensing activities of our internal portfolio if we believe that a future partner would be a better sponsor of the prospective drug to the benefit of patients.

The majority of the value of every deal is associated with downstream stakes in the success of a program that accrue in our portfolio.

This is complemented by upfront payments, research fees, and milestones that help manage nearer-term cash requirements of AbCellera.

All together, we believe that these dynamics allow us to deploy capital efficiently across our company.

As of December 31, 2024, we have started 96 partner-initiated programs with downstream participation.

At the portfolio level, we reduce risk through diversification across discovery programs, therapeutic areas, and partners, making our portfolio risk significantly lower than the risk that is typical of single drug development programs.

We strategically select partners and programs to include in our portfolio based on our assessment of their unique insights or capabilities and their likelihood of success, thereby creating a slice of the market that we believe is enriched for its best parts.

We also deploy capital to expand and apply the capabilities of our engine in areas of high value.

We have also deployed capital to expand and apply our capabilities in drug development areas of high value.

These self-initiated technology-development efforts seek to overcome technical barriers in industry and are now producing wholly owned assets.

We evaluate each internal program on a program-by-program basis to determine if we will advance resulting molecules into preclinical and clinical development ourselves, co-develop them with partners, or out-license them to maximize their clinical and commercial opportunities.

We have developed specific technologies to generate potential first-in-class and best-in-class antibody medicines for well-validated targets in the areas of G-protein-coupled receptors (GPCRs) and ion channels, T-cell engagers (TCEs), and infectious disease.

These capabilities allow us to increasingly initiate drug discovery and development efforts ourselves, giving rise to our internal program pipeline.

We are well-positioned to execute on our business strategy

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• A growing list of new and expanding partnerships with top-tier drug-developers;

• A growing number of drug candidates discovered on the platform advancing towards and through the clinic.

Since our incorporation in 2012, we have accumulated over 10 years of experience in discovering therapeutic antibody candidates and have built substantial capabilities, scale, and expertise.

We estimate that we have invested over $500 million in our engine and – with over 40 partnerships, and approximately 600 employees – we believe we have earned a significant competitive advantage in the maturity of our technology and the scale of our operations.

• A growing number of drug candidates discovered on the platform advancing towards and through the clinic – in our own hands or those of our partners.

Since our incorporation in 2012, we have accumulated over 10 years of experience discovering therapeutic antibody candidates and have built substantial capabilities, scale, and expertise.

We estimate that we have invested over $600 million in our internal capabilities and – with over 40 partnerships, and approximately 600 employees – we believe we have earned a significant competitive advantage in the maturity of our technology and the scale of our operations.

We have worked on more than 100 different programs and have succeeded in discovering antibodies against recognized difficult targets.

We have also validated our engine both clinically and commercially.

Since 2012, we have generated over $250 million in cumulative earnings and have approximately $1 billion in available liquidity as of December 31, 2023 to continue executing on our strategy.

We expect to generate losses and negative operating cash flow in the near-to-medium term, a period of continued investments in our engine and internal programs, ahead of revenues generated from out licensing- and milestone payments and royalties in the longer term.

OUR COMPANY AND ENGINE

We have also validated our capabilities both clinically and commercially.

Since 2012, we have generated over $100 million in cumulative earnings and have approximately $840 million in available liquidity as of December 31, 2024 to continue executing on our strategy.

We expect to generate losses and negative operating cash flow in the near-to-medium term ahead of revenues generated from outlicensing- and milestone payments and royalties in the longer term.

The development of antibody-based drugs comes with unique challenges

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Similarly, obtaining the right antibody for a particular program requires highly specialized capabilities relating to immunization, screening, high-throughput analytics, functional and biophysical characterization, protein engineering, and optimization.

Efficient development of antibody therapies requires the integration of highly specialized skills, technology, and infrastructure – something that few firms are able to do successfully.

Efficient development of antibody therapies involves the integration of highly

specialized skills, technology, and infrastructure – something that few firms can do successfully.

For this reason, we believe there is a serious structural challenge in the biotechnology industry that makes it difficult to turn biological insights into drugs that are ready for clinical testing.

These problems, which are inherent in developing new drugs, are hard to solve.

As the biotechnology industry matures and becomes increasingly competitive, the problems are getting harder.

These problems, inherent in developing new drugs, are hard to solve.

As the biotechnology industry matures and becomes increasingly competitive, the issues are getting more complex.

Solving these problems will open new areas of drug development and has the potential to unlock additional value.

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Product testing .

Once the drug developer has committed to a therapeutic product, it needs to be thoroughly tested in patients to demonstrate safety and efficacy.

Once the drug developer has committed to a therapeutic product, it must be thoroughly tested in patients to demonstrate safety and efficacy.

This is the step that incurs most of the product development spend.

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We also believe this step represents significant opportunities for learning and the development of capabilities that are transferable between different drug development projects.

Finally, we believe this is the place where investments in technology can most effectively drive value.

Our integrated engine for accelerated drug discovery

Our founders had a vision of building an antibody discovery and development engine based on sound process-engineering and design principles.

Functionally, the goal of this engine is to systematically produce therapeutic antibodies that meet the many requirements for proceeding into clinical testing.

Over the past decade, we have worked to achieve this vision, deliberately building our engine (Figure 1) to break the barriers of conventional antibody discovery and development to advance optimal antibody drug candidates into the clinic.

Our engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies with higher target-binding specificity and developability than those generated by synthetic methods.

Through proprietary immunization strategies and single-cell screening, we maximize the search space to generate a wide range of diverse antibodies.

Using robust characterization and developability assessments, we downselect these antibodies to optimal clinical candidates.

Our integrated engine for drug discovery.

Our engine integrates expert teams, technology, and facilities with data science and automation to support the optimized workflows that are necessary to move therapeutic programs from concept through to the clinic.

Today, our engine allows us to take discovery and development programs through to the delivery of optimal clinical candidates.

To expand our capabilities, we are integrating process development, manufacturing, and regulatory capabilities into our engine.

When complete, our engine will be able to advance programs from targets to delivery of investigational drug products, complete with data and the regulatory documents necessary to start clinical testing.

Our engine brings together data and computational tools

A key pillar of our engine is the integration of modern software and data science infrastructure.

Across many sectors, data science has revolutionized business performance, but many of its most promising applications have yet to be exploited by biotechnology.

The primary motive of our data science efforts is to make our business more efficient and scalable.

We achieve this through deep integration of software and data architectures with our experimental work into a much larger engine.

Our engine integrates the collection, standardization, and storage of data with a suite of computational tools and an interactive interface that allows our scientists to quickly explore and interpret complex antibody data sets.

Finally, we believe this is where technology investments can most effectively drive value.

Our integrated capabilities for accelerated drug discovery

Our founders aspired to create a seamless platform for antibody discovery and development, grounded in sound biology, process engineering, and design principles.

Functionally, the goal of these efforts is to systematically produce therapeutic antibodies that meet the many requirements for proceeding into clinical testing.

Over the past decade, we have worked to achieve this vision to break the barriers of conventional antibody discovery and development to advance optimal antibody drug candidates into the clinic.

We discover antibodies from natural immune responses, which are pre-enriched for antibodies with higher target-binding specificity and developability than those generated by synthetic methods.

We maximize the search space through proprietary immunization strategies and single-cell screening to generate a wide range of diverse antibodies.

We downselect these antibodies to optimal clinical candidates using robust characterization and developability assessments.

AbCellera integrates expert teams, technology, and facilities with data science and automation to support the optimized workflows that are necessary to move therapeutic programs from concept through to the clinic.

Today, our capabilities allow us to take discovery and development programs through to the delivery of optimal clinical candidates.

To vertically expand, we are integrating process development, manufacturing, and regulatory capabilities into our capabilities.

When complete, we will be able to advance programs from targets to delivery of investigational drug products, complete with data and the regulatory documents necessary to start clinical testing.

We expect these multi-year investments to be completed in 2025, with the first run of our clinical manufacturing facility.

AbCellera brings together data and computational tools

A key pillar of AbCellera is integrating modern software and data science infrastructure.

Across many sectors, data science has revolutionized business performance, but biotechnology has yet to exploit many of its most promising applications.

Our data science efforts primarily aim to make our business more efficient and scalable.

We achieve this by integrating software and data architectures with our experimental work into a much larger engine.

AbCellera integrates data collection, standardization, and storage with a suite of computational tools and an interactive interface that allows our scientists to explore and interpret complex antibody data sets quickly.

Data from every experiment is securely stored in a central database designed to maintain the relationships that exist between different measurement types, samples, protocols, metadata, and antibodies.

Because we do not rely on third-party data, we are able to maintain strict data quality assurance and standardization.

We believe this approach provides an advantage that increases the value of the data resulting from discovery programs, as we can extract informative insights by uncovering relationships that are hidden within the data.

We believe this approach provides an advantage that increases the value of the data resulting from discovery programs, as we can extract informative insights by uncovering hidden relationships within the data.

We believe that managing data and leveraging the proprietary datasets in this way allows us to continually refine our approach to antibody drug development and leverage the benefits of artificial intelligence and machine learning methods.

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Artificial intelligence (“AI”) generally refers to advanced computational methods and algorithms that enable the discovery of data features, patterns, or associations within large and complex data sets that can be used to classify data sets, make predictions, and solve problems.

We currently use AI and machine learning methods extensively in our engine, with an emphasis on the automation and scaling of data operations associated with our experimental workflows.

While we believe AI has tremendous potential to

accelerate antibody discovery through the prediction, engineering, and potentially even de novo design of antibodies with improved therapeutic properties, it is our view that many of the claims associated with AI drug discovery are ahead of current capabilities.

We currently use AI and machine learning methods extensively emphasizing the automation and scaling of data operations associated with our experimental workflows.

While we believe AI has tremendous potential to accelerate antibody discovery through the prediction, engineering, and potentially even de novo design of antibodies with improved therapeutic properties, we believe many of the claims associated with AI drug discovery are ahead of current capabilities.

What we believe is missing, in most cases, is the data and the experimental capabilities needed to iterate and learn.

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We also believe the importance and difficulty of developing the necessary robust software and data infrastructure is widely underestimated.

We invest significant resources to build the necessary foundations for using AI and machine learning methods successfully.

We generate large amounts of data throughout each program and can capture these large data sets because we (i) prioritize investing in the experimental capabilities and their necessary integrations with software and data science and (ii) use these capabilities frequently in real drug discovery and development programs.

We believe these features of our business will position us to be a leader in the application of advanced computation to antibody drug development.

We invest significant resources to build the necessary foundations for successfully using AI and machine learning methods.

We generate large amounts of data throughout each program.

We can capture these large data sets because we (i) prioritize investing in the experimental capabilities and their necessary integrations with software and data science and (ii) use these capabilities frequently in real drug discovery and development programs.

We believe these features of our business will position us to be a leader in applying advanced computation to antibody drug development.

We are building a competitive advantage in going from target to clinic

Already, we find that seamless data capture along an integrated end-to-end workflow allows us to improve our efficiency and ability to predict early in the discovery process how antibodies will behave later in development and manufacturing (Figure 1).

Today, we integrate data from the start of a program right through to comprehensive characterization of antibody candidates.

We are also investing in our engine to connect program data from program launch through to manufacturing and clinical testing.

We believe that the additional insights that result from these data may also allow us to select and advance antibody candidates that are more potent or more easily manufactured.

Our integrated engine and capabilities create a virtuous cycle.

We have active construction projects on three buildings that will expand our access to lab, office and manufacturing facilities to support the growth of AbCellera into the foreseeable future.

These facilities will allow us to scale up operations and support cell-line development, process development, and GMP manufacturing of antibody therapeutics.

Today, we integrate data from the start of a program to comprehensive characterization of antibody candidates.

We are also investing to connect program data from program launch to manufacturing and clinical testing.

We believe that the additional insights from these data may also allow us to select and advance antibody candidates that are more potent or more easily manufactured.

Our integrated capabilities create a virtuous cycle.

We are completing construction projects that will expand our access to lab, office and manufacturing facilities to support the operation of AbCellera into the foreseeable future.

These facilities allow us to support cell-line development, process development, and GMP manufacturing of antibody therapeutics all with an integrated team.

In May 2020, in support of this effort, we received a commitment for CAD $175.6 million ($125.6 million) in financing from the Government of Canada.

Upon completion of our facilities, we expect to be able to support drug development programs from initiation to fill-finish.

We believe that the integration of an optimized manufacturing process with our discovery and protein-engineering capabilities will create synergies in speed and efficiency and will allow us to more rapidly test and validate new antibody therapeutic formats, including bispecific antibodies and antibody conjugates.

Upon completion of our facilities, we expect to support drug development programs from initiation to fill-finish.

We believe that integrating an optimized manufacturing process with our discovery and protein-engineering capabilities will create synergies in speed and efficiency and will allow us to more rapidly test and validate new antibody therapeutic formats, including bispecific antibodies and antibody conjugates.

We expect to complete this facility and to have GMP manufacturing capabilities in use in 2025.

Using this approach to workflow optimization – alongside the continuous elimination of inefficiencies across the operations of our engine – we can meaningfully accelerate the speed of antibody drug discovery and development.

To date, we estimate that we have invested over $500 million in building our engine and expanding its capabilities.

We have also successfully used our engine to overcome some of the hardest problems in the biotechnology industry.

As an example, our engine discovered two antibody therapies for patients with COVID-19 (under emergency use authorization in 2020 and 2022), in what we believe was one of the most competitive and time-sensitive drug development efforts in history.

We continue to invest in expanding and improving our engine, with approximately 40% of our total research and development spend applied to platform development.

Using this approach to workflow optimization, we can meaningfully accelerate the speed of antibody drug discovery and development.

To date, we have invested over $600 million in building our infrastructure and expanding our capabilities.

We have also successfully used our capabilities to overcome some of the hardest problems in the biotechnology industry.

As an example, we discovered two antibody therapies for patients with COVID-19 (under emergency use authorization in 2020 and 2022), which we believe was one of the most competitive and time-sensitive drug development efforts in history.

Even as the focus of our company turns to using our capabilities to focus on program development, we continue to invest to refine and enhance our capabilities, with approximately 40% of our total research and development spend in 2024 applied to platform development.

In May 2023 we secured CAD $300 million ($222.3 million) in non-dilutive financing from the Governments of Canada and British Columbia toward an eight-year project 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.

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We have developed specific platform technologies to unlock high-value drug targets, modalities, and classes

As we further build the capabilities of our engine, we pursue technology development projects that we believe will open up new market segments in antibody therapeutics by unlocking new drug targets, modalities, and classes.

To date, we have developed three specific technology platforms that we are leveraging to advance both internal and partner-initiated programs.

As we further build the capabilities, we pursue technology development projects that we believe will open up new market segments in antibody therapeutics by unlocking new drug targets, modalities, and classes.

To date, we have developed two specific technology platforms that we are leveraging to advance both internal and partner-initiated programs.

T-cell engager platform

Our T-cell engager platform leverages hundreds of diverse CD3-binding antibodies to create bispecific antibodies that achieve potent tumor-cell killing with reduced cytokine release, which can help address dose-limiting toxicities.

We are also able to discover antibodies that are highly specific to MHC-peptide complexes, which expands the accessible target space for T-cell engagers in solid tumors.

GPCR and ion channel platform

We are using our platform to develop first-in-class antibody medicines for well-validated complex transmembrane protein targets that have been intractable using traditional approaches.

Pandemic response platform

With funding from DARPA, we developed our pandemic response platform and used it to initiate work to discover and develop two antibodies against SARS-CoV-2.

The assets we generated were partnered to and commercialized by Eli Lilly and Company (“Lilly”).

From 2020 to 2022, we earned over $950 million in combined royalties from commercial sales of bamlanivimab and bebtelovimab.

We are leveraging our engine and technology platforms to develop internal programs and advance a pipeline of AbCellera-led (or co-led) programs with first-in-class and/or best-in-class potential.

We are leveraging our capabilities and technology platforms to develop internal programs and advance a pipeline of AbCellera programs with first-in-class and/or best-in-class potential.

We evaluate these programs individually to determine the advisability of entering into preclinical and clinical development ourselves, entering into collaborations with partners, or out-licensing programs to optimize their development and clinical and commercial potential.

In 2023 we advanced two drug programs, ABCL635 and ABCL575, into IND-enabling studies.

In 2023, we advanced two drug programs, ABCL635 and ABCL575, into IND/CTA-enabling studies and announced in 2024 that we would seek clinical trial authorizations for both programs in 2025.

A potential first-in-class medicine for metabolic and endocrine conditions

ABCL635 is an antibody-drug candidate against an undisclosed target with an indication in metabolic and endocrine conditions.

It has the potential to be a first-in-class therapy in an addressable market estimated at more than $2 billion in annual sales.

It can potentially be a first-in-class therapy in an addressable market estimated at more than $2 billion in annual sales.

ABCL635 is the first AbCellera-led asset derived from our GPCR- and ion-channel platform.

We anticipate submission of an IND for ABCL635 in 2025.

We anticipate submission of a CTA for ABCL635 in Q2 2025.

A potential best-in-class medicine for atopic dermatitis

ABCL575 targets OX40 ligand and is being developed as a potential best-in-class therapy for the treatment of atopic dermatitis and other indications in autoimmunity and inflammation.

ABCL575 is a fully human, half-life extended monoclonal antibody targeting OX40 ligand that is being developed as a potential best-in-class therapy for treating T-cell-mediated autoimmune conditions, such as atopic dermatitis.

Antibody-mediated blockade of OX40L is a clinically validated, non-T cell depleting mechanism to modulate inflammation.

Targeting OX40L has the potential to address a broad range of inflammatory conditions and autoimmune diseases, some of which include colitis/inflammatory bowel disease (IBD), asthma/atopy, and diabetes.

OX40L blocking is currently under investigation for atopic dermatitis, asthma, alopecia areata, hidradenitis suppurativa (HS).

OX40L blocking is under investigation for atopic dermatitis, asthma, alopecia areata, hidradenitis suppurativa (HS).

We discovered ABCL575 during our collaboration with EQRx Inc.

(“EQRx”) as part of a co-development program that began in 2021.

We took control of the program in September 2023 and have advanced ABCL575 into IND-enabling studies.

ABCL575 has been designed with potency, pharmacokinetics, and developability to enable less frequent dosing, which provides a potential for differentiation.

We anticipate submission of an IND for ABCL575 in 2025.

We took control of the program in September 2023 and have advanced ABCL575 into IND/CTA-enabling studies.

ABCL575 has been designed with potency, pharmacokinetics, and developability to support a Q12W or longer dosing schedule, which provides differentiation potential.

We anticipate submission of a CTA for ABCL575 in Q2 2025.

Molecule Status Target Method of Action (MOA) Indication Therapeutic Area

ABCL635 IND-enabling studies (Preclinical) Undisclosed - GPCR or ion channel Antagonist Undisclosed Metabolic endocrine conditions

ABCL575 IND-enabling studies (Preclinical) OX40 ligand (OX40L) Blocking and non-depleting ◦ Atopic dermatitis

ABCL635 IND/CTA-enabling studies (Preclinical) Undisclosed - GPCR or ion channel Antagonist Undisclosed Metabolic endocrine conditions

ABCL575 IND/CTA-enabling studies (Preclinical) OX40 ligand (OX40L) Blocking and non-depleting ◦ Atopic dermatitis

◦ Other indications in autoimmunity and inflammation

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Building a winning culture requires investment and continuous diligent effort.

Our Company and our Talent Development team works to develop and deliver the necessary processes, training programs, and events that we believe are essential for our culture to thrive.

Our Company and our Talent Development team work to develop and deliver the necessary processes, training programs, and events that we believe are essential for our culture to thrive.

These are designed to:

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Our philosophy for hiring and recruitment

Our philosophy for hiring is based on insights gained over more than a decade of building and managing interdisciplinary teams.

Our philosophy for hiring is based on insights gained over a decade of building and managing interdisciplinary teams.

First, we recognize that the success of a large and complex organization depends on the contributions of people with broad and complementary sets of technical expertise and aptitudes.

Second, we prioritize the long-term potential of candidates and invest in our team’s continued development.

We believe this framework has allowed us to build an exceptional team at all levels and to develop strong leaders that drive the continued growth of our business in the long term.

We believe this framework has allowed us to build an exceptional team at all levels and develop strong leaders that drive our business's continued long-term growth.

How we structure our pay and compensation packages

We believe our long-term success depends on our ability to compete for top talent.

To attract and retain top talent, we aim to offer total compensation that is competitive for any given role, as determined by market data on local, regional, or global conditions, as appropriate.

To attract and retain top talent, we aim to offer competitive compensation for any given role, as determined by market data on local, regional, or global conditions, as appropriate.

In addition to competitive salaries, equity awards, and performance bonuses, our compensation includes comprehensive healthcare benefits, fitness and active-lifestyle benefits, and retirement-savings contributions.

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We do this because we believe that shared ownership promotes employee retention, creates alignment, and promotes a sense of shared ownership in the long-term success of our Company.

As discussed above, we also recognize that our ability to compete effectively for talent also depends on us maintaining a strong corporate culture, that our programs for training and development remain strong, and that we can continue to offer attractive working conditions.

As discussed above, we recognize that our ability to compete effectively for talent also depends on us maintaining a strong corporate culture, that our programs for training and development remain strong, and that we can continue to offer attractive working conditions.

We further stress the importance of guidelines and cultural norms that encourage each team-member to find their optimal work-life synergy, aiming for productivity and constant improvement that is sustained over time.

Finally, we believe that our strategy of using technology to positively impact the lives of patients is attractive to top talent who want to spend their days well and who value challenging work with a clear sense of purpose.

Our discovery and development engine requires interdisciplinary talent

Finally, we believe that our strategy of using technology to impact the lives of patients positively is attractive to top talent who want to spend their days well and who value challenging work with a clear sense of purpose.

Our discovery and development capabilities require interdisciplinary talent

Interdisciplinarity is a core feature of our business.

The nature of our work in technology and drug development requires a workforce that is exceptionally interdisciplinary in its scientific, engineering, and professional skills.

After more than a decade of technology development at the nexus of science, engineering, and computation, we believe we are effective at assembling and integrating strong cross-functional teams.

As of December 31, 2023, our team comprised approximately 63% scientists, 25% business professionals, and 12% engineers and data scientists.

The nature of our work in technology and drug development requires an exceptionally interdisciplinary workforce in its scientific, engineering, and professional skills.

After more than a decade of technology development at the nexus of science, engineering, and computation, we believe we effectively assemble and integrate strong cross-functional teams.

As of December 31, 2024, our team comprised approximately 62% scientists, 14% engineers and data scientists, and 24% business professionals.

Over 54% of our team members have either a Master’s degree and/or a Ph.D.

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We believe the combination of (i) these regions providing access to large talent pools and less-developed biotechnology sectors, and (ii) our willingness to hire for potential and invest in employee training and development are key factors contributing to our success in discovering, attracting, and retaining top talent.

Our facilities in Vancouver and Sydney are complemented by smaller specialized teams in Boston, United States and Montreal, Canada.

We foster and enjoy high levels of employee engagement

We see employee engagement and retention as two important measures of the health of a company.

We take regular measurements of our employee engagement and our ability to retain professional talent.

In 2023, we had a voluntary turnover rate of less than 4.5%.

Over the past year, our team has grown by 18%, from 495 to 586 full-time employees.

We measure our employee engagement and ability to retain professional talent regularly.

In 2024, we had a voluntary turnover rate of 4.7%.

As of December 31, 2024, we had 596 full-time employees in Canada, the United States, and Australia, representing over 45 nationalities.

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We believe the biotechnology sector will be one of the most important opportunities for growth and investment over the next 30 years.

The large size and rapid growth of the market for therapeutic antibodies combined with the capabilities of our engine represents a large opportunity for our business to make a difference for patients and partners by catalyzing a change in how antibody drugs are discovered.

The large size and rapid growth of the market for therapeutic antibodies combined with our capabilities represents a large opportunity for our business to make a difference for patients and partners by catalyzing a change in how antibody drugs are discovered and developed.

Therapeutic antibodies are one of the largest and fastest growing classes of drugs

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In 2023, global therapeutic antibody sales approached $300 billion.

This market is expected to grow to over $450 billion by 2028, representing a five-year compound annual growth rate, or CAGR, of over 9%.

This market is expected to grow to well over $450 billion by 2028, representing a five-year compound annual growth rate, or CAGR, of over 10%.

In 2023, around 50 antibody therapeutics achieved blockbuster status, defined as achieving annual sales in excess of $1 billion.

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The mean peak-year sales for currently marketed monoclonal antibody drugs and monoclonal conjugate antibody drugs are estimated at over $3 billion.

In 2023, there were over 150 approved antibody therapeutics, with more than 220 in Phase 3 clinical trials worldwide.

Historically, the time for antibody discovery projects to reach Phase 1 clinical trials from target selection has been approximately 5.5 years.

In 2024, there were approximately 200 approved antibody therapeutics, with more than 170 in Phase 3 clinical trials worldwide.

Historically, the time for antibody discovery projects to reach Phase 1 clinical trials from target selection has been estimated at approximately 5.5 years.

On average, antibody drugs have taken between seven and ten years to reach market-authorization from the start of Phase 1 clinical trials.

Each year, well over 200 antibody therapeutics enter Phase 1 clinical trials.

Between 2018 and 2023, this number grew at a 9% CAGR.

Our approach to expanding markets and creating value

We seek to advance a pipeline of first-in-class and/or best-in-class antibody medicines and strategically partner with companies with novel technology or science to advance programs to clinic.

We believe that our engine creates value in three main ways:

We seek to advance a pipeline of first-in-class and/or best-in-class antibody medicines and strategically partner with companies with novel technology or science to advance programs to the clinic.

We believe that we create differentiated value in three main ways:

• Unlock new markets :

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• Improve discovery speed :

Bringing antibody treatments to market faster than the current industry standard would make a difference for those who need it.

Bringing antibody treatments to market faster than the current industry standard would make a difference for those in need.

We estimate that accelerating the path to market by one year could improve the value of an average approved treatment by more than $100 million in net present value, considering only the impact of bringing cash flows forward.

If our engine can help partners to be the first to bring a new drug to market, the drug may capture greater market share with the potential to generate billions of dollars in additional therapy sales over the patent life of the product.

If we can help a new drug to be first to market, the drug may capture greater market share with the potential to generate billions of dollars in additional therapy sales over the patent life of the product.

• Level the playing field :

With our centralized engine, we can remove the need for a biotechnology company to build its own discovery and development infrastructure.

We believe this lowers the barriers to entry in our industry and can help small companies compete more effectively.

With our centralized integrated capabilities, we have removed the need to build discrete discovery and development infrastructure or piece together CROs and CDMOs.

We believe this lowers the barriers to entry in our industry for ourselves and our partners.

For example, we estimate that our capabilities could save innovative biotechnology companies more than a year and tens of millions of dollars in discovery and development efforts at the earliest stages.

We believe even more impactful is that our business model is designed to allow smaller companies to access specialized expertise and state-of-the-art capabilities for rapidly discovering and developing optimal clinical candidates.

We have extensive experience partnering with emerging biotechnology companies, leading pharmaceutical companies, and non-profit and government organizations.

Our partners are specialist scientific ideators and skilled product testers that are predominantly based in the United States and Europe.

Our partners are specialist scientific ideators and skilled clinical testers that are predominantly based in the United States and Europe.

They seek increased speed and probability of success of their drug development programs.

As of December 31, 2023, we had a total of 46 unique partners for whom we have conducted or are conducting antibody discovery activities.

Our partnership agreements commonly include:

Our partnership agreements to date have commonly included:

(i) near-term payments for access, research, and intellectual property rights;

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Leading biopharmaceutical companies with well-developed internal discovery capabilities partner with us to help solve discovery problems that have proven intractable using their platforms.

The capabilities of our engine have made us a preferred partner in the biotechnology industry

We believe we have become a preferred partner in the biotechnology industry, as our integrated engine aims to improve the speed and probability of success of antibody drug development.

We leverage our partners’ specialist insights into target biology and use our engine to generate what we believe are optimal clinical candidates for downstream development.

Our capabilities have made us a strategic partner in the biotechnology industry

We believe we have become a strategic partner in the biotechnology industry, as our integrated discovery and development technology aims to improve the speed and probability of success of antibody drug development.

We leverage our partners’ specialist insights into target biology and use our technology to generate what we believe are optimal clinical candidates for downstream development.

Our investments in full integration also allow us to take a big-picture perspective on antibody drug discovery, starting with the end in mind and optimizing for the final developability of antibodies from the start.

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We look for partners with innovative and impactful ideas, strong leadership teams, and the continued ability to raise the capital needed to fund the development of a product candidate.

Being a preferred partner in our industry also allows us to work on the programs that mean the most to partners.

Being a strategic partner in our industry also allows us to work on the programs that mean the most to partners.

We also seek to work with companies that have the potential to be optimal partners for the final development and commercialization of our pipeline assets.

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Agreements may include alternative approaches to capture value, including equity in our business partner and various options for deeper investment in moving drug candidates forward.

As of December 31, 2023, we had 203 partnered programs under contract that were either completed, in progress, or pending target nomination by the partner.

Of these, we have started 87 partner-initiated programs have the potential for milestone and royalty payments.

As of December 31, 2024, we have started 96 partner-initiated programs that have the potential for milestone and royalty payments.

Our partnership agreements are typically terminable at will with 90 days’ notice prior to identification of a target, after which point they may only be terminated for cause.

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Partner # of Targets & Duration Therapeutic Indication or Modality Date Announced

Eli Lilly and Company Multi-target, multi-year Immunology, cardiovascular disease, and neuroscience July 31, 2024

Viking Global Investors & ArrowMark Partners Multi-target, multi-year Immunology May 1, 2024

Single target Neuroscience March 11, 2024

Undisclosed Multi-target, multi-year Undisclosed December 28, 2023

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Undisclosed biotechnology company Multi-target, multi-year Undisclosed December 4, 2023 *

Prelude Up to 5 targets, multi-year Oncology November 1, 2023

Prelude Therapeutics Up to 5 targets, multi-year Oncology November 1, 2023

Regeneron Pharmaceuticals, Inc.

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Regeneron Pharmaceuticals, Inc.

Up to 4 targets, multi-year Multiple undisclosed March 16, 2020 *

4 targets, multi-year Multiple undisclosed March 16, 2020 *

Multi-target, multi-year Animal health February 23, 2020

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Most of the programs with our partners will generate milestone payments to us if our partners reach certain preclinical, clinical, regulatory, and commercial milestones.

In addition, programs that generate drug candidates which become commercial products may generate royalty payments to us on the net sales of those products.

In addition, programs that create drug candidates which become commercial products may generate royalty payments to us on the net sales of those products.

We also have other forms of downstream economic participation, including equity and equity-like positions, and options to co-invest.

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Options to co-invest

1 All programs under contract, not probability adjusted

1 All programs with downstream participation not probability adjusted

2 Includes range of royalty (and equivalent) rates of each contract, considering step-downs, if any

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As product creators, we compete with other companies for access to ideas.

The complexity and vastness of disease biology means that there is no universal approach to generating ideas for new drugs.

The complexity and vastness of disease biology means there is no universal approach to generating ideas for new drugs.

Good ideas can come from anywhere.

Academic institutions, venture capital groups, non-government organizations, small biotechnology companies, and large biopharmaceutical companies all have a role to play in driving ideation in our industry.

To us, this dynamic suggests that partnerships are essential for connecting with the decentralized ecosystem of ideators that are the source of the best new ideas for antibody drugs.

The standard model for turning ideas into antibody drugs is inefficient

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Ideation is dominated by innovative biotechnology companies

Industry-wide, ideation is dominated by small biotechnology companies.

Small biotechnology companies dominate industry-wide ideation.

Between 2011 and 2021, over 50% of new-drug approvals in the United States originated with smaller biotechnology companies with annual revenues below $500 million.

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These early-stage companies are often rich in ideas but low on capital and lack the necessary capabilities to efficiently pursue their ideas.

In the absence of a centralized engine that operates at the highest level, these companies are forced to develop and to use suboptimal technology, or to piece together fragmented point solutions and contract services.

Spread across a number of smaller biotechnology companies, we believe that the costs to advance their ideas – both in

capital and in opportunity – can create serious economic barriers and inefficiencies that artificially restrict innovation and damage productivity in our industry.

Our integrated engine levels the playing field and enables new therapies

We believe our engine and business model improves efficiencies in our industry in three main ways:

These companies are forced to develop and to use suboptimal technology, or to piece together fragmented point solutions and contract services.

Spread across a number of smaller biotechnology companies, we believe that the costs to advance their ideas – both in capital and in opportunity – can create serious economic barriers and inefficiencies that artificially restrict innovation and damage productivity in our industry.

Our integrated capabilities level the playing field and enables new therapies

We believe our capabilities and business model improves efficiencies in our industry in three main ways:

We prioritize integration over the accumulation of stand-alone tools

We believe that drug development cannot be broken down into a series of independent steps and see the development of new drugs as a single process with one end goal – the rapid delivery of successful antibody drugs to patients.

We believe that drug development cannot be broken down into a series of independent steps and see the development of new antibody drugs as a single process with one end goal – the rapid delivery of successful medicines to patients.

We prioritize the outcome of an integrated end-to-end workflow over the accumulation of stand-alone tools.

Where other providers in our industry may offer partial solutions or stand-alone instruments, we offer an integrated engine for the creation of new antibody drugs.

Where other providers in our industry may offer partial solutions or stand-alone instruments, our integrated capabilities offer the creation of new antibody drugs.

By delivering complete and optimized solutions to our partners, we think this perspective gives us a competitive advantage relative to providers of modular solutions.

We empower a more diverse set of innovators

As our centralized infrastructure for antibody drug discovery lowers the barriers to entry in our industry, we create the conditions for smaller biotechnology companies to focus on what is unique and valuable in their businesses, and to compete on the merits of their ideas.

and to compete on the merits of their ideas.

We believe this dynamic has the potential to catalyze a structural change in how antibody drugs are developed.

We create opportunities for a more-diverse set of innovators, and believe that our engine has the potential to expand the ecosystem and make our industry more efficient.

We create opportunities for a more-diverse set of innovators and believe that our capabilities have the potential to expand the ecosystem and make our industry more efficient.

We enable new types of antibody therapies

The differentiated capabilities of our engine make more and new kinds of antibody discovery possible.

For instance, we believe our engine gives us a unique advantage in the discovery of antibodies that modulate the function of difficult transmembrane protein targets, such as G-protein-coupled receptors (“GPCRs”) and ion channels.

The differentiated capabilities of our capabilities make more and new kinds of antibody discovery possible.

For instance, we believe our technology gives us a unique advantage in the discovery of antibodies that modulate the function of difficult transmembrane protein targets, such as G-protein-coupled receptors (“GPCRs”) and ion channels.

These are two large and well-validated families of drug targets for which antibody discovery using traditional techniques has been extremely difficult.

By unlocking access to these and other types of targets with antibodies, we believe that our engine has the potential to grow the market for antibody therapies.

By unlocking access to these and other types of targets with antibodies, we believe that our capabilities have the potential to grow the market for antibody therapies.

We believe that our platform investments can unlock the technical challenges that are limiting drug discovery in such areas and provide a strong basis for successful internal program development.

We operate in the global market for solutions that enable the discovery and development of therapeutic antibodies.

The biopharmaceutical industry is characterized by rapidly advancing technologies, intense competition and a strong emphasis on proprietary products.

While we believe we have built a competitive advantage in the discovery of antibody-based therapeutics, we face potential competition from many different sources, including large and specialty pharmaceutical and biotechnology companies, academic research institutions, governmental agencies and public and private research institutions.

There are several companies developing and marketing treatments that may be approved for the same indications and/or diseases as our programs.

For example, with respect to our ABCL575 candidate:

• Atopic Dermatitis :

Treatments currently approved in some geographies for atopic dermatitis from, amongst others, Regeneron Pharmaceuticals/Sanofi, Lilly, AbbVie Inc., and Pfizer Inc..

Additionally, therapeutics for atopic dermatitis currently in clinical testing are being developed by large pharmaceutical and biotechnology companies including Amgen Inc., Apogee Enterprises Inc.

and Bristol Myers Squibb Co..

We do not yet have clinical data for any of our programs and there can be no assurance that our programs will have similar or comparable results.

In addition, we operate in the global market for solutions that enable the discovery and development of therapeutic antibodies.

The solutions and applications offered by companies operating in this market vary in size, breadth, and scope.

These solutions are restricted by significant intellectual property barriers.

Significant intellectual property barriers restrict these solutions.

Given the broad promise of antibody therapeutics, we face competition from a number of sources, including companies that provide antibody discovery services such as contract research organizations (“CROs”) and companies that provide specialized solutions to antibody discovery using proprietary technologies or platforms.

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An example of a company that provides a technological point-solution that is integrated into antibody discovery workflows is Bruker Cellular Analysis ("Bruker") (on October 3, 2023, PhenomeX, the successor to Berkeley Lights was acquired by Bruker).

They and similar tool-providers place instruments with our potential customers and with CROs that compete directly with us for business.

Such point-solution companies commonly earn revenues on the sale of machines and proprietary reagents, and in some cases also perform discovery services with fees and royalties that compete with our business.

They and similar tool-providers place instruments with our potential customers and with CROs that compete directly with our antibody discovery platform.

For example, Twist Bioscience markets and provides antibody discovery services using the Bruker Beacon platform to its customers.

OUR APPROACH TO CAPITAL ALLOCATION

We think like owners when making investments and have historically been profitable

We think like owners when making investments

Our founders, leadership team, and employees own a significant portion of the equity in our Company.

Our teams think like owners when making decisions to allocate time and capital across our business activities.

Our teams think like owners when deciding to allocate time and capital across our business activities.

Cognizant of the specific challenges that characterize biotechnology as a sector, we specialize in addressing hard but tractable engineering problems and avoid staking our fortunes on high-risk science projects.

We believe this is the best way for us to create value, and to do so reliably.

Historically, our business has been both high-growth and capital-efficient.

We have generated positive operating cash flow cumulatively since our inception in 2012 and in every successive year from 2018 to 2022.

However, as we do not expect to receive further royalties from our COVID-19 program, which were the driver of our profitability and positive operating cash flows in recent years, we expect to generate losses and negative operating cash flow in the near-to-medium term, as was the case for 2023.

We are anticipating a period of continued investments in our engine, our platforms, and our pipeline ahead of revenues generated from out-licensing, milestone payments and royalties in the longer term.

We quickly grew our business and completed the build of our infrastructure and capabilities in a capital-efficient way.

We are now anticipating a period of continued investments in our pipeline with corresponding losses and negative operating cash flow in the near-to-medium term, ahead of revenues generated from out-licensing, milestone payments and royalties in the longer term.

We invest with a long-term perspective

We allocate capital with a long-term perspective and our largest investments are in the intellectual capital and infrastructure that comprise our engine.

Using our engine, we make capital-efficient investments in the early development of new antibody drugs, with the largest value tied to their long-term success.

We allocate capital with a long-term perspective and our largest investments have been in the intellectual capital, infrastructure, and capabilities that we have built over the years.

Using these assets, we make capital-efficient investments in the discovery and development of new antibody drugs, with the largest value tied to their long-term success.

In many cases, this results in cash flows that are further in the future.

We do this because we believe that our emphasis on milestone payments and royalty positions will result in stakes that substantially exceed in value the price we could command upfront for access to our engine.

We do this because we believe that the real value from drug development is realized when drugs deliver value to patients.

This drives our emphasis on sharing in the economics of successful drugs, developed both with our partners and internally.

In the long run, we believe this approach has the potential to yield exceptional rates of return.

Consistent with the long timelines for drug product development and testing, we expect the most meaningful additional royalty revenues from our pipeline and portfolio to begin after 2030.

As our royalty positions mature, we believe that the layering of programs in our portfolio will result in a long-lived stream of strong cash flows and a high rate of return on invested capital.

We accept that royalty-driven cash flows will only result when we have created value for patients, i.e.

Consistent with the long timelines for drug product development and testing, we expect the most meaningful additional revenues from our pipeline and portfolio to begin after 2030.

As our economic stakes in drug candidates mature, we believe that the contributions from programs in our portfolio will result in a long-lived stream of strong cash flows and a high rate of return on invested capital.

We accept that cash flows from drug sales will only result when we have created value for patients, i.e.

when the drug candidates that compose our pipeline and portfolio reach the market as successfully commercialized antibody drugs.

This fundamental dynamic applies to our internal, co-development, and partner-led programs.

Our engine helps us build a valuable portfolio with capital efficiency

Our engine is a focal point of our capital-allocation strategy.

We make investments in infrastructure and intellectual capital, improving our discovery and development engine.

This engine in turn generates our growing portfolio of valuable stakes in drug candidates in a capital-efficient manner.

By using our engine and its differentiated capabilities to attract business from strategic partners across the biotechnology industry, we believe that discovery partnerships can be used to grow our portfolio without significant capital outlay apart from the investments we make in expanding the capabilities and capacity of our engine.

Increasingly, we are also leveraging our engine internally to develop a pipeline of assets against well-validated targets, particularly using our T-cell engager- and GPCR- and ion-channel platforms.

We believe that our differentiated capabilities in these areas place us in an advantageous position to generate strong returns on these pipeline investments.

Our capabilities help us build a valuable portfolio with capital efficiency

Building our integrated capabilities and infrastructure has been a focal point of our capital-allocation strategy.

These capabilities now generate our growing pipeline of programs and portfolio of valuable stakes in drug candidates in a capital-efficient manner.

By using our differentiated capabilities to attract business from strategic partners across the biotechnology industry, we believe that discovery partnerships can be used to grow our portfolio without significant capital outlay apart from capability investments.

Increasingly, we are leveraging our capabilities internally to develop a pipeline of assets, at a low marginal cost, against well-validated targets, particularly using our T-cell engager and GPCR & ion-channel platforms.

We believe that our differentiated capabilities in these areas uniquely position us to create first in class assets against these challenging targets.

We select opportunities and partners to maximize the value of our portfolio

As business operators, we understand the value of active portfolio management and how it can be used to enhance value in an industry where not all ideas are equally likely to succeed.

With our dedication to discovery and development, we do not claim any specific expertise in ideation or selecting targets.

Instead, we focus our efforts on connecting with strong partners

whom we believe have compelling ideas for therapeutics and the capabilities to clinically and commercially develop the drug candidates that we discover either in partnership or through our internal programs.

With our dedication to discovery and development, we focus our efforts on developing internal programs where we can leverage our competitive advantage in technology and connecting with strong partners whom we believe have compelling ideas for therapeutics and the capabilities to clinically and commercially develop the drug candidates that we discover either in partnership or through our internal programs.

The largest risk to our portfolio is not wasted effort, but rather the opportunity cost of missing out on potential future blockbuster therapeutics.

To maximize our chances of investing in the most promising opportunities in our industry, we make the required substantial investments in our engine that make us a preferred partner in the biotechnology industry and an attractor of ideas for new antibody drugs.

To maximize our chances of investing in the most promising opportunities in our industry, we have made substantial investments that we believe will enable us to generate potential first-in-class and best-in-class antibody drugs repeatedly.

Thinking like investors, we believe active management is most impactful when used to screen out weak opportunities.

When partnering, we look for companies with what we believe are innovative and impactful ideas, strong leadership teams, and the continued ability to raise the capital needed to support a drug candidate on its way to and through the clinic.

Being a preferred partner in our industry also allows us to collaborate on the programs that mean the most to partners, where product quality and the speed to the clinic really matter.

We think this strategy allows us to enrich our portfolio for programs with above-average potential to deliver commercially successful therapeutics.

We seek to maximize the net present value of our portfolio of stakes

Contractual rights to royalties and commercial milestones are financial stakes in the commercial success of the drug candidates that we help develop.

We negotiate these stakes as part of our agreements with partners.

Being a strategic partner in our industry also allows us to collaborate on the programs that mean the most to partners, where

quality and the speed to the clinic really matter.

We believe this strategy allows us to enrich our portfolio for programs with above-average potential to deliver commercially successful therapeutics.

When launching internal programs, we look for opportunities we believe have the highest potential to generate attractive returns, without adding a constraint of a specific therapeutic area.

In general, we seek to develop medicines that:

• target validated biology;

• pursue a significant commercial opportunity, resulting from addressing an unmet medical need;

• possess potential for differentiation;

• offer a clear development path.

We seek to maximize the net present value of our pipeline and portfolio

Contractual rights to royalties, profit shares, and commercial milestones are financial stakes in the commercial success of the drug candidates that we help develop.

We negotiate these stakes as part of our agreements with partners at the outset for partner-initiated programs and when we outlicense pipeline programs.

We believe the near-term and clinical milestone payments we earn from programs are only a small proportion of the expected total value that we ascribe to an individual program.

Instead, for a given program that undergoes clinical development, obtains marketing approval, and is successfully commercialized, we expect the bulk of the revenues to result to be associated with our downstream royalty rights and commercial milestone payments.

We believe the dominance of royalty revenues as a category as seen, for example, in our COVID-19 program, is broadly characteristic of a typical antibody discovery program that ultimately produces a successfully marketed drug.

We recognize that our COVID-19 program was realized on a very compressed timeline (owing to the dynamics of a global pandemic) which is unlikely to be repeated by other programs.

Our approach is to maximize the expected net present value of our stakes in future antibody drugs.

We believe this approach will maximize free cash flow in the long term and the value of our business overall.

Our portfolio is built using three distinct program types

By partnering, we generate opportunities to leverage our engine’s power to contribute value to drug discovery efforts.

As of December 31, 2023, we have entered contracts for 203 antibody discovery and development programs.

Partnering opens multiple value-creation opportunities

By partnering, we generate opportunities to leverage our differentiated capabilities to contribute value to drug discovery efforts.

The economics we earn on partnered programs scale with the value we bring to each program.

Typically, these economics take the form of near-term payments, clinical and commercial milestone payments, and royalties on the net sales of a resulting therapeutic.

Typically, these economics take the form of near-term payments, clinical and commercial milestone payments, and royalties on or share of the profits from the net sales of a resulting therapeutic.

We increase the value of our portfolio and our business in three ways – by partnering on additional drug development programs;

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These aim to unlock additional partnering opportunities, to allow us to develop and deploy additional value-creating capabilities, and to enhance the potential economics in programs where the value we add is particularly large.

Our programs broadly fall into two categories:

Our programs broadly fall into two initiation categories:

Partner-Initiated Programs

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The volume of programs in this category has been high.

As of December 31, 2023, we started 112 partner-initiated programs.

Of these, 87 programs include downstream milestones, royalty stakes, or co-ownership.

As of December 31, 2024, we started 96 partner-initiated programs that include downstream milestones, royalty stakes, or co-ownership.

Through selectively entering into new and expanded strategic partnerships, we continue to add programs to this portfolio.

We work closely with our partners on these programs, leveraging their insight and expertise into target and disease biology and modality while using the discovery and development capabilities of our engine to create value.

We work closely with our partners on these programs, leveraging their insight and expertise into target and disease biology and modality while using our discovery and development capabilities to create value.

Depending on the terms of the program, we may perform work from target specification as far as the delivery of a final drug candidate.

For some large or well-enabled partners, we will hand our work off at an earlier stage, allowing our partner to work with our panel of characterized antibodies while leveraging their own proprietary data.

Discovery agreements

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Because the research fees we earn on the work under such agreements generally more than cover our marginal costs of running these programs, the potential return on our incremental investment in these programs is high.

In the long term, as our portfolio matures and results in approved therapies, we believe our aggregate economic position from these programs has the potential to produce large revenues at near-100% margin.

In the long term, as our portfolio matures and

results in approved therapies, we believe our aggregate economic position from these programs has the potential to produce large revenues at near-100% margin.

Co-development agreements

Another structure for partner-initiated programs is a co-development agreement.

These represent a further amplification of our business model, as they enhance the potential economics in our portfolio by giving us and our partner the option – but not the obligation – to co-invest in the development of drug candidates.

We each begin discovery with a 50% stake in the program and have the option to invest to retain our ownership position on a stage-by-stage basis.

We each begin discovery with a 50% stake in the program and can invest to retain our ownership position on a stage-by-stage basis.

Some programs in this category also include equity investments in partner companies.

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As a co-owner of these programs, we have complete visibility on data and progress.

We believe this preferential insight into program potential and viability puts us in an attractive position to make the decision on exercising our option to continue to invest.

We believe this preferential insight into program potential and viability puts us in an attractive position to decide on exercising our option to continue to invest.

If we exercise our option to continue co-development in a program, we invest at cost and at what we believe to be at a discount to the intrinsic value of the incremental stake.

In cases where we do not exercise our option to continue to invest, our stake typically converts to a royalty-and-milestones position, with royalty rates reflecting the value of our contributions to that point.

For each staged investment we make in a co-development program, our effective royalty position is increased.

Our effective royalty position is increased for each staged investment we make in a co-development program.

The royalty rates for these programs are generally higher than for our partner-initiated discovery programs.

The potential for us to assume deeper ownership stakes through a co-development agreement allows us to capture more value from programs to which our engine can make an outsized contribution and from programs in which we have a particularly high level of conviction.

The potential for us to assume deeper ownership stakes through a co-development agreement allows us to capture more value from programs to which our capabilities can make an outsized contribution and from programs in which we have a particularly high level of conviction.

One notable effort that started under a partner-initiated co-development agreement is the program to develop antibodies against OX40L.

After our partner EQRx.

was acquired in 2023 by Revolution Medicines, Inc., AbCellera took control of the program and advanced the resulting molecule, ABCL575, into IND-enabling studies.

AbCellera-initiated Programs Associated with Technology Development

Our internal programs have the potential to generate wholly owned assets discovered in connection with long-range technology development projects that seek to unlock new areas in antibody drug development.

was acquired in 2023 by Revolution Medicines, Inc., AbCellera took control of the program and advanced the resulting molecule, ABCL575, into IND/CTA-enabling studies.

AbCellera-initiated Programs

In our technology development work, we prioritize areas where we believe there are multiple high-value therapeutic opportunities to explore.

We believe doing this work on widely recognized real-world problems with large commercial potential is critical both to the development and validation of our engine.

To date, we have undertaken three such technology development efforts that have yielded 19 AbCellera-initiated programs:

This allows us to start internal programs to solve widely recognized real-world problems with large economic potential.

Today, we focus on two such technology development efforts that have yielded over 20 AbCellera-initiated programs:

• T-cell engagers :

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We have started 10 internal programs associated with our platform investments to unlock difficult target classes like GPCRs and ion channels.

• Pandemic response :

We developed our pandemic response platform and used it to initiate work on 1 internal program.

That program led to the discovery and development of two antibodies against SARS-CoV-2, ABCL555 and ABCL1404.

The assets we generated were partnered to and commercialized by Eli Lilly and Company as bamlanivimab and bebtelovimab.

The majority of our AbCellera-initiated programs are still at an early stage.

Some programs leveraging our platforms, including a few initiated by strategic partners, are more advanced.

We anticipate progressing AbCellera-initiated programs into selection of therapeutic antibody candidates for IND-enabling studies within the near-to-medium term.

Assets that potentially result from our technology development-associated internal programs are wholly owned by us, and we intend to license them to partners for final clinical development and commercialization.

Given the high technical barriers these programs need to overcome, and our selection of targets that are widely sought after, we anticipate that any such deals could achieve significant economics in the form of large near-term payments and above-average downstream participation through milestones and royalties.

Precedent suggests that the important assets which we target with our internal programs can be partnered on attractive economic terms.

For example, in 2020, we partnered with Lilly to develop and commercialize COVID-19 antibody assets resulting from internal work using our pandemic-response platform.

From 2020 to 2022, we earned over $950 million in combined royalties from commercial sales of bamlanivimab and bebtelovimab.

Our portfolio is well-diversified

Assets that potentially result from our technology development-associated internal programs are wholly owned by us.

AbCellera may elect to out-license these molecules to partners for final clinical development and commercialization.

Given the high technical barriers these programs need to overcome, we anticipate that any such deals could achieve significant economics in the form of large near-term payments and above-average downstream participation through milestones and royalties.

Precedent suggests that the important assets that we target with our internal programs can be partnered on attractive economic terms.

For example, in 2020, we partnered with Lilly to develop and commercialize COVID-19 antibody assets resulting from our previous internal work on pandemic-response.

From 2020 to 2022, we earned over $950 million in combined royalties from commercial sales of bamlanivimab and bebtelovimab, commercialized by Lilly.

We are leading drug development programs

AbCellera leads the development for all AbCellera-initiated programs that have not been outlicensed and select partner-initiated co-development programs, as in the case of ABCL575 discussed above.

We have invested in the capabilities to successfully conduct late-stage preclinical development of drug candidates as well as the ability to initiate and carry out clinical trials for these internal programs.

While the majority of internal programs are still at an early stage, we anticipate submitting our first two CTAs for ABCL635 and ABCL575 in Q2 2025 and commencing their clinical development thereafter.

We also anticipate progressing additional internal programs into selection of therapeutic antibody candidates for IND/CTA-enabling studies within the near-to-medium term.

As our internal pipeline grows and matures, we expect to direct increasing efforts and resources towards advancing internal programs in clinical development.

The selection, prioritization, and direction of internal programs is supported by an ongoing evaluation of the expected net present value of the program in light of its risks, commercial prospects, development costs, and timelines.

Progress of partner-initiated program starts with downstream participation * .

* Excludes AbCellera-initiated and Trianni-license program.

As of December 31, 2024.

Historical results are not necessarily indicative of future results.

Of the 96 partner-initiated programs with downstream participation that we had started as of December 31, 2024, we were still actively leading or co-leading the work on 14 of these programs.

For 76 programs, we have successfully completed the agreed scope of work and transferred the resulting antibody sequences and data to our partners for evaluation and further development under their leadership.

For a historical total of six programs – less than 10% – we did not succeed in finding antibodies that met the partner’s target specifications.

To the best of our knowledge, our partners are actively progressing 37 of the 76 programs and have decided not to progress the other 39 programs.

Of the 51 programs that are actively progressing, we believe that 42 are in late-stage discovery, five in preclinical development, and four have reached clinical development.

Overall, we view the progress of the molecules we have discovered in our and our partners’ hands positively.

Over half of all programs with downstream participation that we have started are currently still progressing.

Our portfolio and pipeline are well-diversified

We believe an optimal portfolio is diversified, long-term, and robust.

Diversification reduces the binary risk associated with individual drug development programs.

Because the capabilities of our engine are broadly applicable to antibody-based drug development, we can access the full depth and breadth of programs in the biotechnology industry through our partnering approach.

Our resulting portfolio of partner-initiated programs is well-diversified across therapeutic areas (Figure 3), modalities, and partner types.

Diversification reduces the risk associated with individual drug development programs.

Because our capabilities are broadly applicable to antibody-based drug development, we can access the full depth and breadth of programs in the biotechnology industry.

Our resulting portfolio of partner-initiated programs and internal pipeline are well-diversified across therapeutic areas (Figure 3), modalities, and partner types.

We believe the current distribution of programs in our portfolio broadly reflects the overall distribution of programs in our industry.

Our large, diversified portfolio of stakes in next-generation antibody therapies.

* As of December 31, 2024

Drivers of value in our portfolio and pipeline

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Each program that we start has the potential to turn an idea into a new marketed therapy.

The investments we make in our engine and our capabilities and capacity for business development allow us to connect with, and credibly pursue, an increasing number of therapeutic ideas in our industry.

We believe that our ability to connect with and pursue such ideas is reflected in the growth in our cumulative number of partners and our cumulative number of program starts.

The investments we have made in our capabilities and capacity for business development allow us to connect with, and credibly pursue, an increasing number of therapeutic ideas in our industry.

We believe that our ability to connect with and pursue such ideas is reflected in the growth in our cumulative number of program starts.

We believe our ability to accelerate drug development timelines and to unlock new types of targets puts us in a position to continue driving business development growth.

In pursuing the growth of our portfolio, we are mindful of the strong connection between commercial success of our programs and our largest payouts, as well as of opportunity costs.

We do not aim to simply maximize our number of program starts.

Instead, we choose to engage with partners and on programs that we believe have the potential to deliver first-in-class and best-in-class antibody therapeutics with strong commercial prospects.

We do not aim to maximize our number of program starts.

Instead, we choose to engage with partners and on programs that we believe have the potential to deliver first-in-class and best-in-class antibody therapeutics with strong commercial prospects, be they initiated by a partner or by AbCellera.

Probability of success .

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the drug candidate must be optimal-for-purpose ( e.g.

effective, safe, manufacturing);

effective, safe, manufacturable);

the clinical trials must be designed and run appropriately;

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Historically, such failures have resulted in success rates for drug development programs estimated to be in the mid-single-digit percentage range.

Through our investments and engine-based approach, we aim to raise the probability of success of the programs in our portfolio.

The investments we make in our engine are primarily driven by our goal of finding and developing optimal drug candidates and enhancing the likelihood that a program will succeed on this critical factor.

Our investments include the technology development efforts we make to repeatedly deliver successful drug candidates in areas where particularly high technical challenges and high unmet medical needs exist, such as those associated with T-cell engagers, GPCRs, ion channels, and rapid pandemic response.

Through our investments and capabilities, we aim to raise the probability of success of the programs in our portfolio and pipeline.

The investments we have made are primarily driven by our goal of finding and developing optimal drug candidates and enhancing the likelihood that a program will succeed on this critical factor.

Our investments include the technology development efforts we have made to repeatedly deliver successful drug candidates in areas where particularly high technical challenges and high unmet medical needs exist, such as those associated with T-cell engagers, GPCRs, and ion channels.

Information on the other success factors may be uncertain and limited (or unavailable to us) at the time of program inception.

However, our approach to partner selection and program selection includes an evaluation of all available information with the aim of steering our work toward programs that do not raise concerns on these factors.

However, our approach to partner selection and program selection includes evaluating all available information to steer our work toward programs that do not raise concerns on these factors.

As a result, we believe that we are enriching our portfolio for programs with an above-industry-average probability of success.

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Within this overall time frame, drug discovery and preclinical development is estimated to typically take three to five years with the remainder taken up largely by clinical development.

With our ongoing investments in the integrated target-to-clinic capability of our engine we are aiming to substantially reduce the time required for discovery and development, with a stated goal of – in the future – repeatedly moving from target nomination to an IND filing in two years or less.

With our ongoing investments in our integrated target-to-clinic capabilities, we are aiming to substantially reduce the time required for discovery and development, with a stated goal of – in the future – repeatedly moving from target nomination to an IND (or equivalent) filing in two years or less.

Accelerating drug development – beyond the obvious benefit for patients – positively impacts the value of an ultimately successful drug in two ways.

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Second, it brings forward all positive cash flows from a program with a corresponding impact on their net present value.

Notably, some programs in our portfolio may progress faster than average for reasons beyond the speed of our engine.

Notably, some programs in our portfolio may progress faster than average for reasons beyond the speed of our discovery and development capabilities.

This can be the case for therapeutics against rare disease;

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AbCellera has the potential to earn significant upfront payments from out-licensing or partnering pipeline assets from both, internal as well as co-development programs.

Market transactions between other drug developers have been reported with upfront payment amounts for T-cell engager molecules in the double-digit-million dollar range while those for potentially more valuable GPCR-targeting drug candidates have shown triple-digit-million dollar amounts.

Commercial sales.

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The average sales of therapeutics are derived from a long-tailed distribution of peak sales.

This distribution includes some therapeutics with sustained annual sales of tens of billions of dollars and many with annual sales over $1 billion (so-called “blockbusters”), as well as many that have more-limited commercial success.

This distribution

includes some therapeutics with sustained annual sales of tens of billions of dollars and many with annual sales over $1 billion (so-called “blockbusters”), as well as many that have more-limited commercial success.

We aim to position our portfolio with particular exposure to therapeutics with high and very high commercial potential.

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By accelerating antibody discovery and preclinical development to increase chances of the resulting therapeutic being first- or next-to-market, with correspondingly large market share (as discussed above);

By following an approach to partner selection and program selection that avoids programs with apparently low commercial potential.

By following an approach to partner selection and program selection that avoids programs with apparently low commercial potential and clinical development risk.

Royalty rates .

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by providing superior drug candidates.

The investments in the capabilities of our engine – including its forward integration along the value chain – all serve to enhance the opportunity and ability to add more value to programs.

A partner’s recognition of the value we add to their program grows with each successful demonstration of our capabilities, either when we are able to show results from our work, particularly from internal programs, or during the inaugural programs we complete with them.

The investments in our technology and capabilities – including forward integration along the value chain – all enhance the opportunity and ability to add more value to programs.

A partner’s recognition of the value we add to their program grows with each successful demonstration of our capabilities, either when we can show results from our work, particularly from internal programs, or during the inaugural programs we complete with them.

Our investments in programs depend on the program type.

Investments are minimal in the case of partner-initiated discovery programs, where we typically cover the marginal cost of our work with near-term payments.

For internal programs, the investments we make in the form of our initial technology development (and the subsequent advancement of development work for a particular program) are more substantial.

When we enter into a partner-initiated co-development program, the initial investment we make during discovery and development is limited.

However, the option to keep investing at cost in consecutive stages of development provides us with the opportunity to achieve a deeper royalty (or equivalent) position.

All else equal, a greater investment by us generally translates into a higher royalty rate for a program.

For internal programs, our investments in the form of our initial technology development (and the subsequent advancement of development work for a particular program) are more substantial.

When we enter into a partner-initiated co-development program, our initial investment during discovery and development is limited.

However, the option to keep investing at cost in consecutive stages of development allows us to achieve a deeper royalty (or equivalent) position.

All else equal, a greater investment by us generally translates into a higher royalty rate or equivalent for a program.

For commercial reasons, we do not disclose the specific economic terms of each partnership agreement, which are generally bespoke.

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The range and progression of our royalty (and equivalent) positions reflect the value that we create and our ability to capture that value.

As of December 31, 2023, we had started 87 partner-initiated programs with downstream participation and partnered one internal program.

As of December 31, 2024, we started 96 partner-initiated programs with downstream participation.

These 96 programs have a mean royalty rate of 3.2%.

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we note that contracts often include multiple program slots that represent potential future program starts.

Between 2020 and 2023, we negotiated an increased mean royalty rate of 4.3% across the 141 partner-initiated programs with downstream participation signed in the period and our agreement to partner our COVID-19 antibody assets to Lilly.

Between 2020 and 2024, we negotiated an increased mean royalty rate of 4.2% across our programs with downstream participation signed in the period and our agreement to partner our COVID-19 antibody asset to Lilly.

A quarter of these programs signed in the 2020 to 2024 period can achieve royalty rates above 5.0%.

Our position in a partner-initiated co-development program generally reflects our proportionate contribution to the program.

The royalty (or equivalent) rates that apply at each point where we have the option to continue our co-investments depend on our cumulative contribution to the funding of the program.

The royalty (or equivalent) rates that apply at each point where we can continue our co-investments depend on

our cumulative contribution to the program's funding.

Even at an early point, the rates we stand to earn from such a program generally exceed the agreed-to royalty rates of our partner-initiated discovery programs.

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For our portfolio of programs under contract and not adjusted for the probability of success, as of December 31, 2024, the total hypothetical value of our clinical and commercial milestone payments was $8.7 billion.

On a case-by-case basis, we may negotiate additional means of capturing value in addition to a reasonable royalty position, including equity or equity-like positions, options for deeper investment, or larger near-term payments.

On a case-by-case basis, we may negotiate additional means of capturing value in addition to a reasonable royalty or equivalent position, including equity or equity-like positions, options for deeper investment, or larger near-term payments.

OTHER MATTERS

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We strive to protect the proprietary technologies that we believe are important to our business, including seeking and maintaining patent protection intended to cover the compositions of matter of our product candidates, their methods of use, related technology, and other inventions that are important to our business.

Our success depends in part on our ability to obtain and maintain intellectual property protection for the components of our discovery and development engine and products arising from the same;

Our success depends in part on our ability to obtain and maintain intellectual property protection for the components of our discovery and development capabilities and products arising from the same;

to defend and enforce our patents, to preserve the confidentiality of our trade secrets, and to operate without infringing valid and enforceable patents and other proprietary rights of third parties;

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We also utilize other forms of intellectual property protection, including trademark, copyright, internal know-how and trade secrets, when those other forms are better suited to protect a particular aspect of our intellectual property.

Our belief is that our proprietary rights are strengthened by our comprehensive approach to intellectual property protection.

Our belief is that our comprehensive approach to intellectual property protection strengthens our proprietary rights.

It is our policy to require our employees, consultants, outside scientific collaborators, sponsored researchers and other advisors to execute confidentiality and invention assignment agreements upon accepting employment or consulting relationships with us.

These agreements provide that all confidential information concerning our business or financial affairs developed or made known to the individual during the course of the individual’s relationship with us is to be kept confidential and not disclosed to third parties except in specific circumstances.

In the case of employees, the agreements provide that all inventions conceived by the individual, and which are related to our current or planned business or research and development or made during normal working hours, on our premises or using our equipment or proprietary information, are our exclusive property.

These agreements provide that all confidential information concerning our business or financial affairs developed or made known to the individual during the individual’s relationship with us is to be kept confidential and not disclosed to third parties except in specific circumstances.

In the case of employees, the agreements provide that all inventions conceived by the individual, related to our current or planned business or research and development or made during normal working hours, on our premises or using our equipment or proprietary information, are our exclusive property.

We are diligent in taking precautions that our proprietary information is not released to third parties through the use of security measures.

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Our product to partners is data on the composition of matter of antibodies and their properties.

We enter into contracts that allow us rights to use the data that we generate for the purpose of improving our discovery and development engine and fueling machine-learning algorithms.

We enter into contracts that allow us rights to use the data that we generate for the purpose of improving our discovery and development capabilities and fueling machine-learning algorithms.

We maintain strict firewall protocols so target-specific data derived from a partner cannot be used to inform the discovery on another project by a different partner.

Patent Portfolio

We have developed an expansive patent portfolio with claims related to multiple aspects of our discovery and development engine, beginning with our first patent applications exclusively licensed from UBC, in 2013.

We have developed an expansive patent portfolio with claims related to multiple aspects of our discovery and development capabilities, beginning with our first patent applications exclusively licensed from UBC, in 2013.

We continuously assess new ways to improve our technology platform through license or acquisition of third-party patent portfolios, as was the case with our acquisitions of Lineage in 2017 and the OrthoMab platform from Dualogics LLC, or Dualogics, in 2020, our acquisition of Trianni, Inc., or Trianni, in 2020, our acquisition of TetraGenetics, Inc.

in 2021, and our license agreements with Alloy Therapeutics LLC, or Alloy Therapeutics.

Our patent prosecution strategy encompasses the pursuit of protection for our discovery and development engine and tangentially related methods.

Our patent prosecution strategy encompasses the pursuit of protection for our discovery and development capabilities and tangentially related methods.

In December 2013, we executed a license agreement with UBC, or the UBC License, to gain a worldwide, exclusive license to certain patents, or the UBC Patents, patented at UBC by Dr.

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UBC may terminate the license under certain circumstances, including in the case of our insolvency, winding up or liquidation, if a court or similar process is levied on the rights under the agreement or on money due to UBC that is not released, if the subject technology becomes subject to a security interest that is not released, if we or any of our directors or officers have materially breached or failed to comply with securities laws, or in the event of certain breaches of, or failure to perform, our obligations under the license or other agreements between us and UBC.

Either party may terminate the license for any breach which is not remedied within certain specified time periods.

Either party may terminate the license for any breach not remedied within specific time periods.

The UBC Core Patents

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This patent family includes five issued U.S.

patents and one pending U.S.

non-provisional patent application.

Issued patents from this family are expected to expire as early as July 2031, absent any disclaimers or extensions available.

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and Australia and granted in Europe, Japan, and Korea, as well as one pending U.S.

non-provisional patent application and seven pending foreign counterpart patent applications.

non-provisional patent application and four pending foreign counterpart patent applications.

Issued patents from this patent family are expected to expire in March 2034, absent any disclaimers or extensions available.

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patents, two granted patents in Europe, and one granted patent in Canada, as well as one pending U.S.

non-provisional patent application and one pending foreign counterpart patent application.

Issued patents from this patent family are expected to expire in May 2035, absent any disclaimers or extensions available.

The Lineage patent portfolio complements our single-cell microfluidic intellectual property with downstream methods of sequencing reaction preparation, immune RepSeq and analysis.

The immune repertoire patents and applications that we obtained from Lineage form the basis for the sequencing technologies that we currently use in our discovery and development engine.

Stanford License

Through our acquisition of Lineage, we obtained an exclusive license from Stanford University to patents and patent applications directed toward immune RepSeq.

Our Stanford license includes one patent family directed toward methods of characterizing an immune repertoire.

This patent family includes four issued U.S.

patents, one issued in Canada, and one granted patent in Europe, as well as one pending U.S.

non-provisional patent application.

Issued patents from this patent family are expected to expire in May 2035, absent any disclaimers or extensions available.

The Stanford license also includes another patent family directed toward methods of characterizing immune response and vaccine selection.

This patent family includes two issued U.S.

patents and one pending U.S.

non-provisional patent application.

Issued patents from this patent family are expected to expire in February 2034, absent any disclaimers or extensions available.

Under the terms of the Stanford license, we are required to pay Stanford a yearly license maintenance fee, as well as certain milestone payments in an aggregate amount not to exceed $0.1 million.

We are also required to pay Stanford low single-digit royalties on net sales of licensed products as well as a portion of non-royalty sublicensing revenues.

The term of the Stanford license runs until the last licensed patent expires, and our obligation to pay royalties will continue so long as there is a valid claim of a licensed patent.

Stanford may terminate the agreement governing the license if we are in material default in the provision of any report or payment of any amounts due to Stanford under the agreement, we do not use commercially reasonable efforts to develop or commercialize licensed products, we do not achieve certain diligence milestones, we are in material breach of any provision of the agreement, or if we provide any materially false report to Stanford.

We may terminate the agreement at any time upon at least 30 days’ notice to Stanford.

In addition to the Stanford license, the acquisition of Lineage included a patent portfolio comprising four patent families.

The Lineage patent portfolio complements our single-cell microfluidic intellectual property with downstream methods of sequencing reaction preparation, immune RepSeq and analysis.

The immune repertoire patents and applications that we obtained from Lineage form the basis for the sequencing technologies that we currently use in our discovery and development capabilities.

The acquisition of Lineage included a patent portfolio comprising four patent families.

One patent family is directed toward methods of determining the immune repertoire of a subject.

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An additional patent family is directed toward methods for detection of isotype profiles as signatures for disease.

This patent family includes patents issued in Japan and China, as well as a patent granted in Europe and a patent issued in Canada.

This patent family includes one patent issued in each of Japan, China, Europe, and Canada.

This patent family also includes one pending foreign counterpart patent application.

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Another patent family is directed toward IgG bispecific antibodies and processes for preparation.

This patent family includes one issued U.S.

patent, one pending U.S.

non-provisional patent application, and one foreign counterpart patent application.

This patent family includes two issued U.S.

patents and one foreign counterpart patent application.

Any patents that issue from this patent family are expected to expire in January 2036, absent any disclaimers or extensions available.

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This patent family includes one granted U.S.

patent and one pending foreign counterpart patent application.

patent, one pending U.S.

non-provisional patent application, and one pending foreign counterpart patent application.

Any patents that issue from this patent family are expected to expire in December 2037, absent any disclaimers or extensions available.

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In one patent family, the patents are directed to transgenic animals and methods of use.

This patent family includes twelve issued patents including in the U.S., Australia, the Russian Federation, Europe, India, Israel, Canada, China and Japan.

There are three pending applications, two in the U.S.

and one in Japan.

This patent family includes fourteen issued patents including in the U.S., Australia, the Russian Federation, Europe, India, Israel, Canada, China and Japan.

Patents issuing from this family are expected to expire in July 2031, absent any disclaimers or extensions available.

Another patent family is directed to enhanced production of immunoglobulins.

This patent family includes four issued patents including in the U.S., Israel, Australia, and Japan.

There are six pending applications including one in the U.S.

and five in pending foreign counterparts, including Australia, Canada, Europe, Japan, and Korea.

This patent family includes six issued patents including in the U.S., Israel, Australia, Europe, and Japan.

There are four pending applications including one in the U.S.

and three in pending foreign counterparts, including Canada, Europe, and Korea.

Any patents that issue from this family are expected to expire in February 2037, absent any disclaimers or extensions available.

Another patent family is also directed to enhanced production of immunoglobulins.

This patent family includes one issued patent in Australia and five pending applications, including in Canada, Europe, Israel, China, and Korea.

This patent family includes two issued patents in Australia and Israel and four pending applications, including in Canada, Europe, China, and Korea.

Any patents that issue from this family are expected to expire in August 2036, absent any disclaimers or extensions available.

Another patent family is directed to enhanced immunoglobulin diversity.

This patent family includes one issued patent in the U.S.

This patent family includes two issued patents in the U.S.

and two pending applications, including one in the U.S.

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Another patent family is directed to transgenic mammals that express canine-based immunoglobulins.

This patent family contains one issued U.S.

patent and one pending application in the U.S.

This patent family contains two issued U.S.

Issued patents from this family are expected to expire in July 2031, absent any disclaimers or extensions available.

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Another patent family is directed to transgenic mammals that express bovine-based immunoglobulins.

This patent family contains eight pending applications, including in the U.S., Australia, Canada, China, Europe, Israel, Japan, and Korea.

This patent family contains seven pending applications, including in Australia, Canada, China, Europe, Israel, Japan, and Korea.

Issued patents from this family are expected to expire in July 2039, absent any disclaimers or extensions available.

Another patent family is directed to single chain VH and heavy chain antibodies.

This patent family includes five issued patents including in the U.S., Canada, Australia, Europe, and Japan.

There are three pending applications, including in the U.S., China, and Israel.

This patent family includes six issued patents including in the U.S., Canada, Australia, Europe, Israel, and Japan.

There are two pending applications, including in the U.S.

Issued patents from this family are expected to expire in July 2038, absent any disclaimers or extensions available.

Another patent family is directed to long germline DH gene and long HCDR3 antibodies.

This patent family contains one issued patent in Europe and one pending application in the U.S.

This patent family contains two issued patents, one in Europe and the second in the U.S., and one pending application in the U.S.

Issued patents from this family are expected to expire in October 2037, absent any disclaimers or extensions available.

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Another patent family is directed to Adam6 knock-in mice.

This patent family contains one issued patent in Europe and one pending application in the U.S.

Issued patents from this family are expected to expire in August 2039, absent any disclaimers or extensions available.

This patent family contains one issued patent in Europe.

Issued patent is expected to expire in August 2039, absent any disclaimers or extensions available.

Another patent family is directed to heavy chain-only antibodies.

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CD3 T-Cell Engagers

Our discovery and development engine has directly led to our discovery of novel CD3 T-cell engagers.

Our discovery and development capabilities have directly led to our discovery of novel CD3 T-cell engagers.

Our CD3 T-cell engager portfolio consists of a patent family that is directed to novel CD3-binding antibodies (including bispecific antibodies capable of binding both CD3 and a tumor antigen), and methods of using the CD3-binding antibodies in treating hyperproliferative disorders or autoimmune disorders.

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Issued patents from this family are expected to expire in March 2043, absent any disclaimers or extensions available.

Anti-OX40L Antibodies

Our discovery and development capabilities have also directly led to our discovery of novel anti-OX40L antibodies.

Our OX40L portfolio consists of a patent family that is directed to novel anti-OX40L antibodies, and methods of using the anti-OX40L antibodies to treat atopic dermatitis.

This patent family has one pending International (PCT) patent application.

Issued patents from this family are expected to expire in October 2044, absent any disclaimers or extensions available.

Our discovery and development capabilities have also directly led to our discovery of novel antibodies to a still undisclosed target.

This portfolio consists of a patent family that is directed to the novel antibodies, and methods of using the antibodies to treat a still undisclosed indication.

This patent family has one pending International (PCT) patent application.

Issued patents from this family are expected to expire in October 2044, absent any disclaimers or extensions available.

We also aim to continue developing our product portfolio.

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The protection provided by a patent varies from country to country, and is dependent on the type of patent granted, the scope of the patent claims, and the legal remedies available in a given country.

protection obtained is not sufficiently broad, our competitors could develop and commercialize technologies or a platform similar or identical to ours, and our ability to successfully sell our data packages may be impaired.”

For a discussion of the risks we face relating to intellectual property, see “Risk Factors—Risks Related to our Intellectual Property—If we are unable to obtain and maintain sufficient intellectual property protection for our technology, including our platform and Celium, our proprietary antibody visualization software, or if the scope of the intellectual property protection obtained is not sufficiently broad, our competitors could develop and commercialize technologies or a platform similar or identical to ours, and our ability to successfully sell our data packages may be impaired.”

Government Regulation

Our focus is on the discovery of antibodies that our partners use to improve the speed and success of their antibody discovery efforts;

however, we ourselves are not currently involved in antibody discovery, do not manufacture any products and do not conduct any clinical trials.

As such, while we are subject to a number of regulations, such as those governing our laboratory facilities as well as regulations that apply to businesses in the private sector generally, we are not subject to many of the types of regulations that ordinarily apply to companies in the life sciences, biotechnology and pharmaceutical sectors and industries.

However, we believe that the long-term success of our business depends, in part, on our partners’ ability to successfully develop and sell products using the antibodies that we discover.

Our focus is on the discovery and development of antibodies for ourselves and for our partners to improve patients' lives.

We are involved in the discovery, development, manufacturing, and clinical trials activities of these prospective future medicines.

As such, we are subject to many regulations, such as those governing our laboratory facilities, drug manufacturing, clinical trials, as well as regulations that apply to businesses in the private sector generally.

In 2025, we will start our own first clinical trial and will be subject to many of the regulations that ordinarily apply to companies in the life sciences, biotechnology and pharmaceutical sectors and industries.

However, we believe that the long-term success of our business depends, in part, on our and our partners’ ability to successfully develop and sell therapeutic products using the antibodies we discover.

The regulations that govern our pharmaceutical and biotechnology partners are those we therefore believe have the most significant impact on our business.

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The processes for obtaining marketing approvals in the United States and in foreign countries and jurisdictions, along with subsequent compliance with applicable statutes and regulations and other regulatory authorities, require the expenditure of substantial time and financial resources.

Our partners will be subject to a variety of regulations in applicable jurisdictions governing, among other things, clinical studies and any commercial sales and distribution of their products.

We and our partners will be subject to various regulations in applicable jurisdictions governing, among other things, clinical studies and any commercial sales and distribution of their products.

Whether or not our partners obtain approval from the U.S.

Food and Drug Administration, or FDA, or the European Commission for the E.U.

for a product, they must obtain the requisite approvals from regulatory authorities in foreign countries prior to the commencement of clinical studies or marketing of the product in those countries.

for a product, they must obtain the requisite approvals from regulatory authorities in foreign countries before the commencement of clinical studies or marketing of the product in those countries.

The requirements and process governing the conduct of clinical studies, product licensing, coverage, pricing and reimbursement vary from country to country.

One such regulatory authority that is applicable to certain of our partners is the United States Secretary of Health and Human Services’ authority to authorize unapproved medical products to be marketed in the context of an actual or potential emergency that has been designated by government officials.

The COVID-19 pandemic has been designated such an emergency.

After an emergency has been announced, the Secretary of Health and Human Services may authorize the issuance of, and the FDA Commissioner may issue Emergency Use Authorizations, or EUAs, for the use of specific products based on criteria established by statute, including that the product at issue may be effective in diagnosing, treating, or preventing serious or life-threatening diseases when there are no adequate, approved, and available alternatives.

An EUA is subject to additional conditions and restrictions and is product-specific.

An EUA terminates when the emergency determination underlying the EUA terminates.

An EUA is not a long-term alternative to obtaining FDA approval, licensure, or clearance for a product.

The FDA may revoke an EUA where it is determined that the underlying health emergency no longer exists or warrants such authorization, so it is not possible to predict how long an EUA may remain in place.

Similar to the United States, Canada has developed a mechanism to authorize unapproved medical products to be marketed in the context of certain emergencies.

In particular, under the Food and Drugs Act (Canada), the federal Minister of Health may make an Interim Order if the Minister believes that immediate action is required to deal with a significant risk to health, safety or the environment.

The Minister has made various Interim Orders in the context of the COVID- 19 pandemic.

These Interim Orders provide the Minister with the authority to permit the sale of a COVID-19 drug in Canada via multiple new mechanisms, including authorizing a COVID-19 indication for a new drug with a modified set of application requirements with the potential for additional terms and conditions, as well as the possibility of authorizing a drug based on certain elements already being authorized by a foreign regulatory authority.

Each Interim Order is valid for no longer than a one-year term and an authorization for importation and sale issued under an Interim Order is only valid for as long as the Interim Order is in effect.

As is the case with EUAs in the United States, authorizations issued under an Interim Order are not a long-term alternative to obtaining Health Canada licensure for a product.

Health Canada is currently considering various options to minimize disruptions for the ongoing authorization of drugs upon the expiry of an Interim Order with the intent to implement transition as needed.

Additional Regulation

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These and other laws govern our use, handling and disposal of various biological, chemical and radioactive substances used in, and wastes generated by, our operations.

If our operations result in contamination of the environment or expose individuals to hazardous substances, we could be liable for damages and governmental fines.

We believe that we are in material compliance with applicable environmental laws and that continued compliance therewith will not have a material adverse effect on our business.

If our operations contaminate the environment or expose individuals to hazardous substances, we could be liable for damages and governmental fines.

believe that we are in material compliance with applicable environmental laws and that continued compliance therewith will not adversely affect our business.

We cannot predict, however, how changes in these laws may affect our future operations.

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Travel Act, the USA PATRIOT Act, the Canadian Corruption of Foreign Public Officials Act and possibly other state and national anti-bribery and anti-money laundering laws in countries in which we conduct activities, such as the UK Bribery Act 2010 and the UK Proceeds of Crime Act 2002, or collectively, Anti-Corruption Laws.

Among other matters, such Anti-Corruption Laws prohibit corporations and individuals from directly or indirectly paying, offering to pay or authorizing the payment of money or anything of value to any foreign government official, government staff member, political party or political candidate, or certain other persons, in order to obtain, retain or direct business, regulatory approvals or some other advantage in an improper manner.

Among other matters, such Anti-Corruption Laws prohibit corporations and individuals from directly or indirectly paying, offering to pay or authorizing the payment of money or anything of value to any foreign government official, government staff member, political party or political candidate, or certain other persons, to obtain, retain or direct business, regulatory approvals or some other advantage in an improper manner.

We can also be held liable for the acts of our third-party agents under the FCPA, the Canadian Corruption of Foreign Public Officials Act, the UK Bribery Act 2010 and possibly other Anti-Corruption Laws.

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Our website address is www.abcellera.com.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, including exhibits, proxy and information statements and amendments to those reports filed or furnished pursuant to Sections 13(a), 14, and 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are available through the “Investors” portion of our website free of charge as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, including exhibits, proxy and information statements and amendments to those reports filed or furnished according to Sections 13(a), 14, and 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are available through the “Investors” portion of our website free of charge as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

Information on our website is not part of this Annual Report on Form 10-K or any of our other filings with the SEC unless specifically incorporated herein by reference.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business