IPA reports a fourth consecutive quarter of
increased revenue.
IPA (IMMUNOPRECISE ANTIBODIES LTD.) (the “Company” or “IPA”)
(NASDAQ: IPA), an artificial intelligence-driven biotherapeutic
research and technology company, today reported financial results
for its third quarter of the 2024 fiscal year (“FY24”), which ended
January 31, 2024.
“ImmunoPrecise Antibodies proudly reports a fourth consecutive
quarter of record revenue, demonstrating our capability to fulfill
the rising needs of both new and existing clients through our
comprehensive antibody discovery and development services. These
services are designed to effectively reduce the risk, cost, and
time associated with advancing safe and effective therapies to
clinical trials. Key contributors to this revenue growth include
our B Cell Select® platforms and the enhanced capacity of our
manufacturing facility, with additional support from our VHH
antibody discovery technologies,” stated Dr. Jennifer Bath, CEO of
IPA.
She added “Up to this point in the fiscal year 2024, our cash
burn has markedly reduced. At the end of the third quarter of
fiscal year 2023, it stood at $19.4 million. Now, for the same
period in fiscal year 2024, it's down to $3.1 million. This figure
does not include the funds received from our equity offering in
December 2023. This reduction in cash burn is a result of both our
increased revenue and strategic cost management efforts, even as we
continue to invest in AI technologies to better serve our
clients.
BioStrand, one of our subsidiaries, has started generating
revenue from projects powered by its LENSai™ technology, and is
making progress towards the further development and launch of its
LENSai portal and SaaS platforms. Meanwhile, Talem Therapeutics is
focused on leveraging its strategic partnerships to drive revenue
through out-licensing opportunities, which also enhances contract
research revenue and is creating new opportunities for
BioStrand.
Overall, our strategy's successful implementation has led to
consistent revenue growth, lower operational costs, and strategic
progress. This underscores our commitment to operational excellence
and dedication to client support."
Business Highlights and Corporate Update
The strategy of IPA to provide a comprehensive range of services
for antibody discovery and development is consistently yielding
tangible outcomes. In the recent quarter, the Company recorded
record revenues of $6.2 million and $18.1 million for the three-
and nine-months ending January 31, 2024, respectively. These
figures mark increases of 20.3% and 20.0% compared to the $5.2
million and $15.0 million revenues during the same periods in
fiscal 2023. This is the third consecutive quarter in which we have
experienced a year-over-year increase in revenue of approximately
$1 million. Specifically, year-to-date IPA Canada's laboratory
revenue rose by 27%, while our Utrecht, Netherlands manufacturing
facility experienced 32% growth in revenue, reinforcing our
expansion strategy to meet customer needs.
BioStrand is generating fee-for-service revenue through its
LENSai platform and is progressing in the development of commercial
products to meet the needs of IPA's client base of over 600
companies. During FY24 Q3, BioStrand introduced a new in silico
service called epitope binning, which can be accessed by existing
clients, as well as for standalone programs. This advancement is a
significant step towards the upcoming rollout of the LENSai portal
to all IPA clients, followed by the public launch of BioStrand's
comprehensive SaaS platform.
The Company’s decrease in R&D spending reflects the previous
investments to develop the internal therapeutic Talem assets, which
are now in the next phase of revenue generation, and now primarily
represent BioStrand R&D. Efforts are underway to pursue
out-licensing opportunities for those internally developed Talem
assets. Simultaneously, the Company's marketing partnerships are
enhancing revenue in contract research and creating new
opportunities in BioStrand.
The Company recently entered into a Sales Agreement for an “at
the market” offering program with Clear Street, as sales agent, for
the Company to offer and sell from time-to-time common shares.
Third Quarter FY24 Financial Results
- Revenue: Total revenue was $6.2 million, compared to
revenue of $5.2 million in fiscal year 2023 (“FY23”) Q2. Project
revenue generated $5.8 million, including $0.2 million of work
completed by BioStrand, and compared to $4.8 million in FY23 Q3.
Product sales and cryostorage revenue were $0.4 million, compared
to $0.4 million in FY23 Q3.
- Research & Development (R&D) Expenses: R&D
expenses were $1 million, compared to $1.6 million in FY23 Q3, with
the decrease reflecting reduced expenditures related to the build
of the Company's internal therapeutic Talem assets.
- Sales & Marketing (S&M) Expenses: S&M
expenses were $0.6 million, compared to $0.8 million in FY23
Q3.
- General & Administrative (G&A) Expenses: G&A
expenses were $4.2 million, compared to $4.1 million in FY23
Q3.
- Net Loss: Net loss of $2.9 million, or $(0.11) per share
on a basic and diluted basis, compared to a net loss of $4.7
million or $(0.19) on a basic and diluted basis in FY23 Q3.
- Liquidity: Unrestricted cash totaled $6.2 million as of
January 31, 2024, compared to $6 million as of October 31,
2023.
*Expressed in Canadian dollars, unless otherwise indicated.
Conference Call and Webcast Details
The Company will host a live conference call and webcast to
discuss these results and provide a corporate update on Thursday,
March 14, 2024, at 10:30AM ET.
The conference call will be webcast live and available for
replay via a link provided in the Events section of the Company’s
IR pages at
https://ir.ipatherapeutics.com/events-and-presentations/default.aspx
***Participant Dial-In Details***
Participants call one of the allocated dial-in numbers (below)
and advise the Operator of either the Conference ID 9236374 or
Conference Name.
North America Toll-Free: (888) 550-5658 North America Toll:
(646) 960-0289 International Toll: +1(646) 960-0289
***Webcast Details***
Attendee URL: https://events.q4inc.com/attendee/157226149
About ImmunoPrecise Antibodies Ltd.
ImmunoPrecise Antibodies Ltd. has several subsidiaries in North
America and Europe including entities such as Talem Therapeutics
LLC, BioStrand BV, ImmunoPrecise Antibodies (Canada) Ltd. and
ImmunoPrecise Antibodies (Europe) B.V. (collectively, the “IPA
Family”). The IPA Family is a biotherapeutic research and
technology group that leverages systems biology, multi-omics
modelling and complex artificial intelligence systems to support
its proprietary technologies in bioplatform-based antibody
discovery. Services include highly specialized, full-continuum
therapeutic biologics discovery, development, and out-licensing to
support its business partners in their quest to discover and
develop novel biologics against the most challenging targets. For
further information, visit www.ipatherapeutics.com.
Cautionary Statement Regarding Forward Looking
Information
This news release contains “forward-looking statements” and
“forward-looking information” within the meaning of applicable
United States securities laws and Canadian securities laws
(collectively, “forward-looking statements”). Forward-looking
statements are often identified by the use of words such as
“potential”, “plans”, “expects” or “does not expect”, “is
expected”, “estimates”, “intends”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements contained in this news release include,
but are not limited to, statements regarding our financial
performance, out-licensing and new client opportunities, strategic
partnerships, expansion strategy, the efficacy and integration of
new service and product offerings and our ability to create
long-term value for customers. In respect of the forward-looking
statements contained herein, IPA has provided such statements in
reliance on certain assumptions that management believed to be
reasonable at the time.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements stated herein to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks, including risks discussed in
the Company’s Annual Information Form dated July 10, 2023 (which
may be viewed on the Company’s SEDAR+ profile at www.sedarplus.ca),
and the Company’s Annual Report on Form 40-F, dated July 10, 2023
(which may be viewed on the Company’s EDGAR profile at
www.sec.gov/edgar). Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance, or achievements may vary materially from those
expressed or implied by the forward-looking statements contained in
this news release. Accordingly, readers should not place undue
reliance on forward-looking statements contained in this news
release. The forward-looking statements contained in this news
release are made as of the date of this release and, accordingly,
are subject to change after such date. The Company does not assume
any obligation to update or revise any forward-looking statements,
whether written or oral, that may be made from time to time by us
or on our behalf, except as required by applicable law.
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