AbCellera Biologics (NASDAQ:ABCL) is seeking to reintroduce itself to investors as it shifts from a discovery partnership model toward developing its own clinical-stage antibody drugs, Carl Hansen of AbCellera said at Bank of America’s annual healthcare conference in Las Vegas.
In a discussion with Bank of America analyst Geoff Meacham, Hansen said AbCellera spent its first decade building a technology platform for antibody discovery and working as a partner to pharmaceutical companies on difficult discovery problems. That model included research fees and downstream stakes in programs.
“In 2023, we made the decision that we now had the capital, we had the differentiated capabilities, we saw some very compelling opportunities, and it was time to take that capability and turn it inward,” Hansen said, describing the company’s transition into “a classic drug development company.”
AbCellera Highlights Antibody Discovery Focus
Hansen said AbCellera’s technology platform has been built around difficult areas of antibody discovery, including GPCRs and ion channels, multispecific antibodies and, more recently, antibody-drug conjugates. He said the company is now focused on demonstrating the platform’s value through its own assets rather than discussing the platform in isolation.
The first example is ABCL635, and Hansen said AbCellera expects two additional programs, ABCL688 and ABCL386, to come forward next year. He said the company expects to be judged on the differentiation of those assets and on whether it is directing its capital and capabilities toward opportunities with high potential returns.
ABCL635 Phase 2 Readout Expected in Third Quarter
Much of the discussion centered on ABCL635, AbCellera’s antibody targeting NK3R for hot flashes. Hansen said the target has been clinically validated by two small-molecule drugs, and that AbCellera’s key question has been whether an antibody can engage and block NK3R in the brain region associated with hot flashes.
Hansen said the company has used testosterone reduction as a biomarker for target engagement. He said interim Phase 1 data released recently showed “a very clean safety profile” so far, with no liver enzyme signal through 12 weeks at all doses monitored. He also said the company observed testosterone suppression that was deeper and sustained through the monthlong dosing period, compared with what he described as transient suppression from small molecules.
Hansen said AbCellera’s differentiation thesis for ABCL635 is comparable or better efficacy, once-monthly subcutaneous dosing and a safety profile without the liver-related concerns seen with small molecules. He noted that both approved small-molecule products require liver monitoring, and that VEOZAH received a black box warning for liver injury after launch.
For the upcoming Phase 2 readout, Hansen said success would mean efficacy comparable to small molecules, which he characterized as roughly a 22% reduction relative to placebo on the frequency measure. “With that, we think we have something that could easily be a blockbuster product,” he said. He added that stronger efficacy would represent upside.
Company Sees Potential Convenience Advantage
Hansen said AbCellera conducted third-party market research comparing a once-daily oral treatment with a once-monthly injectable, assuming equal efficacy and safety. He said about 55% of women in the research preferred the once-monthly injectable, while acknowledging that some patients strongly prefer injections and others strongly prefer oral medicines.
He also said physicians and patients may value avoiding liver monitoring, particularly in the case of products where monitoring can be frequent early in treatment.
ABCL575 Strategy More Cautious
Hansen also discussed ABCL575, an OX40 ligand antibody obtained through a prior partnership with EQRx. He said the original thesis was that the OX40 ligand class could become large and that a potent antibody suitable for less frequent dosing could be attractive as competing programs advanced.
However, Hansen said readouts in atopic dermatitis and the occurrence of Kaposi sarcoma have “taken the shine off of the class” in that indication. AbCellera expects to read out ABCL575 at the end of the year, and Hansen said he believes it may look like a strong molecule suitable for dosing every six months. Still, he said partnering prospects in atopic dermatitis are diminished, and AbCellera does not plan to invest further if it does not find a good opportunity.
Hansen said ABCL575 is “somewhat off-brand” for AbCellera and does not offer as much read-through to the company’s broader platform as programs such as ABCL635, ABCL688 and ABCL386.
Limited Detail on New Pipeline Programs
Hansen provided only limited information on ABCL688 and ABCL386. He said ABCL688 comes from the company’s GPCR and ion channel platform and is in autoimmunity, while ABCL386 is in oncology.
He said AbCellera is withholding additional details because of the competitive environment and because the company believes it is in shareholders’ best interest to keep programs confidential for as long as possible. Hansen said AbCellera’s control of manufacturing allows it to delay patent filings until closer to the clinic.
Looking ahead, Hansen said that by the end of 2027, depending on data, AbCellera could have ABCL635 in late-stage studies, with ABCL688 and ABCL386 disclosed and moving into patient populations, and potentially another program behind them.
About AbCellera Biologics (NASDAQ:ABCL)
AbCellera Biologics Inc (NASDAQ: ABCL) is a biotechnology company specializing in the discovery and development of therapeutic antibodies. The company’s technology platform integrates single-cell screening, microfluidics, high-throughput sequencing and artificial intelligence to rapidly identify and optimize antibody candidates against a wide range of disease targets. By combining experimental data with machine learning, AbCellera accelerates early-stage drug discovery and improves the efficiency of lead candidate selection.
AbCellera primarily operates through partnerships with pharmaceutical and biotechnology firms, offering its antibody discovery services on a fee-for-service and milestone-driven basis.
