What Management Said

Read the full Q1 2026 transcript ↗

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. We started the year in a strong financial position with our platform and large infrastructure projects substantially complete and with our internal pipeline set up for multiple catalysts over the next 24 months. Our key priorities for the year include delivering top-line data readouts for ABCL635 and ABCL575, advancing ABCL688 and ABCL386 through IND-enabling activities, and adding at least 1 new development candidate to our pipeline.

Injection site-related adverse events were infrequent across both treatment groups, and gastrointestinal symptoms such as diarrhea occurred at low frequencies and showed no clear dose dependency or increase over placebo. Looking at revenue and expenses, revenue for the quarter was around CAD $8 million compared to a total revenue of approximately CAD $4 million in the same quarter of 2025. With respect to research fee revenue, as we have indicated in the past, we expect this to generally trend lower as we focus on our internal pipeline. The greater than 35% decrease in SG&A expenses relates to the conclusion of our intellectual property litigation and to changes in teams following the focus of our internal pipeline.

Looking at earnings, we are reporting a net loss of roughly $43 million for the first quarter of 2026, compared to a loss of about $46 million a year earlier. In terms of earnings per share, this result works out to a loss of $0.14 per share on a basic and diluted basis. As a reminder, we have received commitments for funding for the advancement of our internal pipeline from the Government of Canada Strategic Innovation Fund and the Government of British Columbia. With respect to the overall company expenditures, our capital needs are very manageable.

What went well
  • Presented positive interim Phase 1 data for lead program ABCL635: generally well tolerated with no serious adverse events, no discontinuations, and - importantly - no liver-toxicity signal, a key differentiator versus small-molecule NK3R antagonists.
  • Phase 1 pharmacokinetics were favorable and dose-proportional with an estimated ~24-day half-life supporting monthly subcutaneous dosing, and biomarker data (testosterone, LH, FSH suppression) indicated robust NK3R target engagement, raising the estimated probability of success.
  • Kept the pivotal ABCL635 Phase 2 proof-of-concept readout on track for Q3 2026 and the ABCL575 Phase 1 readout for Q4 2026.
  • SG&A fell more than 35% year over year to ~$12 million following conclusion of the Bruker IP litigation and pipeline-focused team changes.
  • Net loss improved to ~$43 million (from ~$46 million a year earlier), and quarterly operating cash use eased to ~$34 million as large facility and manufacturing investments wound down.
  • Ended the quarter with ~$531 million in cash and marketable securities and ~$655 million of total available liquidity, sized a ~$6 billion+ annual U.S. addressable market for non-hormonal VMS treatment.
What went wrong
  • A self-limiting headache signal clustered in the highest (900 mg) single-ascending-dose cohort, though management attributed it largely to small numbers and Phase 1 setting factors; the multiple-ascending-dose efficacy data remain blinded until the Q3 readout.
  • Revenue was only ~$8 million, and management expects research-fee revenue to keep trending lower as the company focuses on its internal pipeline.
  • The company remained loss-making with a ~$43 million quarterly net loss (-$0.14 per share) and a ~$30 million net decrease in cash for the quarter.
  • The ultimate efficacy of ABCL635 remains unproven - the biomarker data report on target engagement, not efficacy, which only the Phase 2 readout will establish.
  • Management confirmed no plans to develop ABCL575 beyond Phase 1, intending to partner it, so its value now hinges on external partnering interest.

Guidance Changes

MetricPeriodCurrent guidance
ABCL635 Phase 2 (proof-of-concept) top-line readoutQ3 2026On track for Q3 2026 - by far the most important readout of the year
ABCL575 Phase 1 top-line readoutQ4 2026Expected Q4 2026; company plans to complete Phase 1 then partner (no plans to develop past Phase 1)
ABCL688 and ABCL3862027Up to three additional clinical-stage programs by end of 2027; both advancing through IND-enabling activities
Fifth development candidateFirst half of 2026On track to select a fifth development candidate in H1 2026
Liquidity runwayMulti-yearSufficient liquidity to fund at least the next three years of pipeline investment

Performance Breakdown

MetricYoYNote
Total revenue ~$8M (vs ~$4M) Mostly research fees; research-fee revenue expected to trend lower
R&D expense +$4M to ~$47M Continued investment in internal programs
SG&A expense -35%+ to ~$12M (vs ~$19M) Conclusion of Bruker IP litigation and pipeline-focused team changes
Net loss ~$43M (vs ~$46M); EPS -$0.14 Lower SG&A partly offset by higher R&D
Quarter-end liquidity ~$531M cash/securities; ~$655M total ~$30M net cash decrease in the quarter; large capex programs substantially complete

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
ABCL635 de-riskingAdvanced to Phase 2 on early dataInterim Phase 1 shows clean safety (no liver signal), ~24-day half-life and robust target engagement; Phase 2 POC in Q3 2026 will test efficacy—
Target product profile / marketBlockbuster potential thesisEfficacy comparable to small molecules, no liver monitoring, once-monthly SC self-injection; ~$6B+ U.S. non-hormonal VMS market, plus oncology-induced VMS upside—
ABCL575 strategyDevelop or partner decision in 2027Complete Phase 1 then partner; no plans to develop past Phase 1—
Cost disciplineHeavy build-out spendSG&A down 35%+ post-litigation; capex winding down as facilities/manufacturing complete—
Dosing strategyMonthly dosing hypothesis600 mg carried into Phase 2 (approximates 300 mg steady-state Cmax); considering a loading-dose approach for rapid onset—

Q&A Summary

Do the small-molecule NK3R antagonists leave efficacy on the table, and could ABCL635 show better efficacy?
Hansen cautioned the biomarker data report on target engagement, not efficacy directly. The base-case winning profile is efficacy comparable to small molecules with cleaner safety (no liver monitoring) and once-monthly dosing; there is a scientific case for better efficacy from deeper, sustained target engagement, but that must be proven in the Q3 Phase 2 readout.
Is there enough dose-optimization to move directly to Phase 3 in 2027?
Noonberg said the 12-week follow-up will build a robust PK/PD model relating drug concentration to efficacy; with that data and a validated mechanism the company expects a strong position to engage regulators on late-stage development, though regulators might request an additional Phase 3 dose.
Why cap the multiple-ascending-dose cohort at 600 mg, and will MAD data be shown before the Phase 2 readout?
Noonberg said 600 mg already approximates very high exposures beyond what is commercially needed, chosen to provide a safety window (not due to any dose-limiting toxicity), and the still-blinded MAD data will not be unblinded before the Q3 Phase 2 readout.
What is the significance of the headache signal in the 900 mg cohort?
Noonberg said the headaches occurred on days 1-2 (not at peak exposure), were mild, and one placebo patient in the 900 mg cohort also reported headache, suggesting it may reflect small numbers rather than a true dose-related signal; safety at 600 mg was very reassuring.

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Q1 2026 call
Reported 2026-05-11 · figures from the AbCellera Biologics Inc. Q1 2026 earnings call.

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