AbCellera closed 2025 having delivered on every one of its stated priorities and exceeding one of them, completing its transformation into a vertically integrated clinical-stage biotech. It put its first two internal molecules into the clinic, finished its platform and 130,000-square-foot Vancouver manufacturing investments, and nominated two new development candidates - ABCL688 (autoimmunity) and ABCL386 (oncology) - rather than one, giving it four pipeline programs plus 20+ in discovery. The lead program, ABCL635 for vasomotor symptoms, advanced into a randomized, double-blind Phase 2 in January 2026 on encouraging biomarker and safety data, and management framed its Q3 2026 proof-of-concept readout as the year's most important, potentially de-risking event with blockbuster implications if the drug matches its target product profile. Full-year revenue climbed to about $75 million (from $29 million) - roughly $47 million from licensing and royalties including a ~$36 million Bruker patent-settlement - while R&D rose about $20 million to $187 million and the net loss improved to about $146 million (-$0.49 per share). The company ended the year with roughly $561 million in cash and marketable securities and about $700 million of total available liquidity, and guided to an ABCL575 Phase 1 readout in Q4 2026, INDs for ABCL688 and ABCL386 in 2027, a fifth development candidate in the first half of 2026, and five clinical-stage programs by mid-2027.
Thank you. Hello, everyone, and thank you for joining us today for AbCellera's Full Year 2025 Earnings Call. I'm Tryn Stimart, AbCellera's Chief Legal and Compliance Officer. Dr. Carl Hansen, AbCellera's President and CEO, and Andrew Booth, AbCellera's Chief Financial Officer, will be speaking on today's call. Also, Sarah Noonberg, our Chief Medical Officer, is on the call with us. During this call, we may make projections and forward-looking statements based on our current expectations and in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Our actual results could differ materially due to factors as outlined in our latest Form 10-K and subsequent Forms 10-Q and 8-K filed with the Securities and Exchange Commission. AbCellera is not obligated to update any forward-looking statements, whether due to new information, future events, or otherwise.
Our presentation today, our earnings press release, and our SEC filings are available on our Investor Relations website. The information we provide about our pipeline is intended for the investment community and is not promotional. As we transition to our prepared remarks, please note that all dollars mentioned during the call are U.S. dollars. After our prepared remarks, we will open the lines for questions and answers. Now, I turn the call over to Carl.
Thanks, Tryn, thank you everyone for joining us today. Today, I'll review the progress AbCellera made in 2025 and share my perspective on the state of our business and the unique setup for strong value creation in 2026 and 2027. A year ago, as we started 2025, I emphasized AbCellera's overarching goal of becoming a vertically integrated clinical-stage biotech, and that to successfully make this transition, we would need to deliver on four priorities. First, initiation of Phase I trials for our first two programs. Second, nomination of at least one new development candidate. Third, completion of our platform investments. Fourth, initiation of activities at our new clinical manufacturing facility. We successfully delivered on all these objectives and exceeded one priority by nominating not one, but two development candidates, and we finished the year with around $700 million in available liquidity.
As we start 2026, we have in place an integrated platform, a competitive advantage in antibody discovery and development, a growing pipeline with multiple first-in-class programs and important near-term clinical readouts, and the capital that is needed to continue executing on our strategy. Our transition to a clinical-stage biotech is complete, and our focus has fully shifted from building our platform to building our pipeline. We achieved a great deal in 2025. At the beginning of the year, our pipeline consisted of two preclinical programs, ABCL635 and ABCL575. Today, both programs are in clinical testing, and in January, we announced that our lead program, ABCL635, had advanced into a randomized, double-blind, phase II study. In 2025, we also added two new programs to our pipeline. ABCL688 is an antibody drug candidate for an undisclosed indication in autoimmunity.
Announced at our Q2 earnings, this is the third program added to our pipeline and the second program that's derived from our GPCR and ion channel platform. A fourth program, ABCL386, was nominated as a development candidate in Q4 and is a potential first-in-class antibody drug candidate in oncology. ABCL688 and ABCL386 are both in IND-enabling activities, and we expect to submit INDs or CTAs for both programs and to phase I/II studies in patients in 2027. Behind these first four programs, we have more than 20 programs in discovery, and we anticipate advancing a fifth program into IND-enabling activities in the first half of 2026. The most important data disclosure in 2026 will be the phase II readout of ABCL635, which is anticipated for Q3.
This readout has potential to be highly de-risking and to tell us whether or not we are likely to have our first winner. In the positive scenario, success will be data that supports our target product profile, which includes efficacy at least comparable to Lynkuet and Veozah, a differentiated safety profile, and an advantage in dosing convenience with once-monthly subcutaneous self-injection. We believe this profile would support a product that has blockbuster potential. Of course, drug development is uncertain, and it is possible that we fail to see efficacy comparable to small molecules. As we started development, we identified a key scientific risk in achieving sufficient target engagement of KNDy neurons in the infundibular nucleus. Based on biomarker data from the phase I portion of our study, we believe that ABCL635 can achieve high target engagement in those neurons. Accordingly, our estimated probability of success has increased.
We believe the largest remaining uncertainty is that our understanding of the biology of hot flashes is incomplete. This question will be answered by the ongoing phase II portion of the study. If we get a positive readout, we intend to move ABCL635 quickly into late-stage development. In the case of a negative readout, our progression to a late-stage clinical company will be delayed. However, in either scenario, we are committed to advancing the other programs in our pipeline with a focus on developing first-in-class opportunities. Looking at the overall pipeline, we anticipate two clinical readouts in 2026 and the potential for multiple catalysts in 2027. By mid-2027, we expect to have five clinical stage programs across a range of compelling indications in large markets.
As mentioned previously, pending positive data from the phase II study of ABCL635, we intend to proceed with late-stage studies for hot flashes associated with menopause, and in addition, we would also look to initiate phase II studies of ABCL635 for hot flashes associated with cancer treatment. These pipeline developments will play out over the next 18 months. Looking at 2026, our key priorities are to deliver top-line readouts for ABCL635 phase II and ABCL575 phase I studies, to advance ABCL688 and ABCL386 through IND-enabling activities, and to add one new development candidate to our pipeline. With approximately $700 million in total liquidity, we believe we have the capital to see these programs through to value inflections and to continue to press our advantage in discovery and to build a pipeline through internal innovation.
With that, I will hand it over to Andrew to discuss our financials. Andrew?
Thanks, Carl. As Carl pointed out, AbCellera continues to be in a strong liquidity position with approximately $560 million in cash and equivalents, and with roughly $140 million in available committed government funding to execute on our strategy. We are continuing to execute on our plans with a focus on internal programs and leveraging our process development and clinical manufacturing investments. Looking at our business metrics, in the fourth quarter, we started work on one additional partner-initiated program, which takes us to a cumulative total of 104 programs with downstream participation. Given our focus on the advancement of our proprietary pipeline, and as noted in our SEC filings, we will stop reporting on our partner-initiated program starts on a quarterly basis in 2026.
Turning to molecules in the clinic, Arsenal Bio received an IND authorization for AB-3028, a molecule discovered using licensed Trianni technology, taking the cumulative total number of molecules to have reached the clinic to 19. As Carl highlighted, ABCL635 advanced into the phase II portion of its clinical trial, and Invetx advanced an undisclosed animal health molecule into pivotal studies. As we have stated previously, we view the overall progress of molecules in the clinic as a potential source of near and midterm revenue from downstream milestone fees and royalty payments in the longer term. As we have been doing annually, we'll take a closer look at the progression of those 104 partner-initiated programs with downstream participation. As of December 31st, we were still actively leading or co-leading the work on 14 of these programs.
For 84 programs, we have successfully completed the agreed scope of work and have transferred the resulting antibody sequences and data to our partners for evaluation and further development under their leadership. To the best of our knowledge, our partners are actively progressing 34 of these 84 programs. Of the 48 programs that are actively progressing, including those still in our hands, we believe that 37 are in discovery, five in preclinical development, and six have reached clinical development. Overall, we view the progress of the molecules that we have discovered in our and our partners' hands positively, and the attrition is consistent with our expectations. Around half of all programs with downstream participation that we have started are currently still progressing.
We look forward to more molecules from our program reaching the clinic over time. We will continue to report on these progressions to the clinic on a quarterly basis. Turning to revenue and expenses, revenue for the year was $75 million, comprising $27 million relating to work on partnered programs and $47 million from licensing and royalty payments. This compares to a total revenue of approximately $29 million in 2024. $36 million of the licensing and royalty stems from settling our patent infringement claims against Bruker. With respect to research fee revenues, as we have mentioned in the past, we expect these to trend lower as we focus on our internal pipeline. Our research and development expenses for the year were $187 million, approximately $20 million more than last year.
This expense reflects the focus on investment in our internal programs. In sales, general, and administration expenses, they were approximately $83 million, compared to roughly $86 million in 2024. Included in these expenses in both years are costs related to the now settled Bruker litigation. Looking at earnings, we are reporting a net loss of roughly $146 million for the year, compared to a loss of about $163 million last year. In terms of earnings per share, this result works out to a loss of $0.49 per share on a basic and diluted basis. Looking at cash flows, operating activities for all of 2025 used approximately $130 million in cash and equivalents. excluding liquidity received from marketable securities and real estate, all other investment activities amounted to $46 million for the year.
We made these investments predominantly in property, plant, and equipment to establish clinical manufacturing capabilities, a project which is now substantially complete as we had expected. These investments in PP&E were partially offset by government contributions. Compared to outsourced manufacturing, our clinical manufacturing facility allows us to control our supply chain, improve flexibility, accelerate timelines, and better protect our intellectual property. Our real estate investments in our headquarter building yielded $63 million in liquidity in the fourth quarter, consisting of a loan repayment from our JV partner and flow through commercial mortgage financing. As a part of our treasury strategy, we have $405 million invested in short-term marketable securities. Our investment activities for the year included a $70 million net divestment of these holdings.
Altogether, we finished the quarter with $561 million of total cash equivalents, and marketable securities. As a reminder, we have received commitment for funding the advancement of our internal pipeline from the Government of Canada Strategic Innovation Fund and the Government of British Columbia. This available capital does not show up on our balance sheet. With over a $560 million in cash and equivalents and the unused portion of our secured government funding, we have approximately $700 million in available liquidity to execute on our strategy. In addition, we have further available liquidity in the ownership of our other Vancouver-based lab and office building, as well as our GMP facility, both of which have been financed off of our balance sheet.
The operating cash usage for 2026 will continue to prioritize the advancement of our lead programs through their clinical studies, completing IND-enabling activities for ABCL688 and ABCL386, and to build a strong preclinical pipeline behind these assets. With respect to our overall company expenditures, our capital needs are very manageable. We continue to believe that we will have sufficient liquidity to fund well beyond the next three years of pipeline investments. With that, we'll be happy to take any questions. Operator?