Achieves Record $24.5 Million Revenue in FY
2024, Showcases Technological Advancements
Expands Laboratory Capabilities and Launches
Advanced AI Models, Aimed at Strengthening Market Position
Launches Commercial LENSai API, Offering
Advanced AI-Powered Solutions Across Multiple Markets and Prepares
for Further Launch with its Newest Partner, AWS
ImmunoPrecise Antibodies Ltd. (“IPA”, “Company”, “we” or “us”)
(NASDAQ: IPA), an artificial intelligence (AI)-driven
biotherapeutic research and technology company, today announced its
financial results for the fiscal year ended April 30, 2024. All
numbers are expressed in Canadian dollars unless otherwise
noted.
“IPA has achieved significant milestones this fiscal year,” said
Dr. Jennifer Bath, CEO and President of IPA. "We are proud to
report our fifth consecutive quarter of record revenues as well as
record annual revenues, which reflect strong demand for our
comprehensive antibody discovery and development services. This
impressive growth is driven by our B Cell Select® platforms and the
enhanced capacity of our manufacturing facilities. We are excited
to share that our strategic investments in AI technologies are
starting to pay off, as demonstrated by the progress of BioStrand
in meeting significant milestones with the rollout of their LENSai
software both internally and to the public. This progress
highlights our commitment to innovation and positions us at well
amongst AI-driven drug discovery and development.”
Business Highlights and Corporate Update
ImmunoPrecise Antibodies Ltd. (IPA) has reported a
record-breaking fiscal year for the Company, achieving revenues of
$24.5 million, a 19% increase from $20.7 million the previous year.
This growth underscores IPA’s capability to meet the rising demand
for its end-to-end antibody services, including comprehensive wet
lab and in silico discovery and development technologies. The
Company's financial prudence and operational efficiency are further
highlighted by a notable reduction in cash burn.
Technological advancements have been pivotal in IPA’s success.
We believe that BioStrand's patented HYFT Technology has
significantly enhanced the Company’s ability to solve complex
biological problems, leading to major advancements in developing
novel potential therapeutics against challenging targets for our
clients and partners. Strategic collaborations, including with
InterSystems and PGxAI, have expanded IPA’s capabilities in
healthcare data processing and pharmacogenomics, respectively. Our
commitment to innovation was recently recognized with the 2024
Impact Award for BioStrand's LENSai technology and the launch of
the LENSai API, offering commercial access across multiple
sectors.
FY24 Enhancements to Functionality of LENSai
- HYFT Technology Advancement: Unveiled a new approach to
biological sequence retrieval, combining Natural Language
Processing (NLP) and database research for improved accuracy and
efficiency.
- Advanced AI Model Introduction: Introduced an advanced
Foundation AI Model in January, combining Large Language Models
(LLMs) with HYFT Technology, advancing AI-driven drug
discovery.
- Healthcare Data Processing Partnership: Partnered with
InterSystems Corporation in February to integrate vector search
with LENSai for AI-driven drug discovery and healthcare
applications, enhancing data processing and expanding market
reach.
- Electronic Health Record (EHR) Data Integration:
Developed an advanced LLM for EHRs in March, improving retrieval
and analysis to optimize collaboration outputs with
InterSystems.
Commercialization of LENSai
- Internal Rollout of LENSai: Successfully rolled out
LENSai internally, including to IPA’s sites in Utrecht and Oss, the
Netherlands, showcasing the platform’s security and utility.
- Commercial Projects: Successfully executed end-to-end
programs entirely in silico using LENSai, solving challenging
therapeutic antibody programs for partners and clients, providing
feedback on LENSai’s performance and resilience in solving complex
biological challenges.
- Public Commercial Launch of LENSai API: BioStrand
announced the commercial launch of its LENSai API software, and is
working to offer the platform, in conjunction its partner, AWS, on
the AWS Marketplace, a sales channel that enables Independent
Software Vendors (ISVs) and consulting partners to sell their
solutions to AWS customers.
- LENSai Rollout Success: BioStrand has initiated the
public rollout of LENSai with selected pharmaceutical partners
ahead of schedule. Based on client positive experience and outcomes
from LENSai applications, one of our large pharmaceutical company
clients has chosen to expand from initial services to a broader
integration with our Software-as-a-Service (SaaS) and API
solutions. This successful pilot demonstrates the platform's
capability to generate significant revenue streams through these
commercially available solutions, which may support recurring
revenue for BioStrand.
- 2024 Impact Award for LENSai Technology: BioStrand was
awarded the prestigious 2024 Impact Award in April for their LENSai
technology, recognizing the potential of our HYFT-powered platform
with EHR analysis capabilities.
- Collaboration with PGxAI: This commercial collaboration
represents a strategic move in the growing trend of AI-to-AI
collaborations, a burgeoning strategy within the industry. By
fostering enhanced interactions between AI systems, this approach
is driving significant advancements, particularly in precision
medicine. Following the launch of the LENSai API, IPA signed a
collaboration with PGxAI to develop an AI model for
pharmacogenomics, further solidifying its position at the forefront
of AI-driven healthcare solutions.
Growth of Discovery and Development Service Offerings
- Expansion of Oss Laboratory Facilities: The Company
expanded its laboratory facilities at its Oss, the Netherlands,
site in February 2024. This increased lab space has enabled
enhanced service offerings and additional equipment, such as the
Carterra LSA®, to support the high throughput needs from the
downstream outputs of LENSai. These new services are already in
high demand.
IPA's ongoing efforts to expand its technological and service
capabilities, including the acquisition of additional laboratory
space and equipment, forecast continued robust growth. The
expansion of its B Cell Select® platforms and advancements in VHH
antibody discovery technologies further bolster its position as a
leader in biotherapeutic research and development. Overall, these
strategic initiatives have improved IPA's financial performance and
technological prowess.
Fourth Quarter 2024 Financial Results
Revenue was $6.5 million for the three months ended April 30,
2024, compared to $5.6 million for the three months ended April 30,
2023.
Research and development (R&D) expenses were $1.3 million
for the three months ended April 30, 2024, compared to $0.9 million
for the three months ended April 30, 2023. This increase was
primarily driven by increased R&D activities at BioStrand.
Selling and marketing expenses were $0.9 million for the three
months ended April 30, 2024, compared to $0.9 million for the three
months ended April 30, 2023.
General and administrative expenses were $4.8 million for the
three months ended April 30, 2024, compared to $5.0 million for the
three months ended April 30, 2023.
Net loss was $18.0 million for the three months ended April 30,
2024, including a $15 million impairment expense related to
BioStrand’s goodwill and intangible assets. This compares to the
net loss of $5.1 million for the three months ended April 30, 2023,
including a $2.5 million impairment expense related to
BioStrand.
Full Year 2024 Financial Results
Revenue was $24.5 million for the fiscal year 2024, marking an
increase from $20.7 million in the previous year fiscal 2023. We
attribute this growth to the successful implementation of our
strategic initiatives, including the expansion of our B Cell
Select® platforms and the ongoing development of our VHH antibody
discovery technologies.
Research and development expenses were $4.0 million, down from
$14.1 million in fiscal 2023, reflecting the transition of Talem
assets from R&D build to the focus of revenue generation.
Sales and marketing expenses were $3.5 million, compared to $3.6
million in fiscal 2023, down slightly year over year as we managed
our expenses, even with achieving record revenue growth.
General and administrative expenses were $15.6 million, compared
to $15.4 million in fiscal 2023, flat year over year as the company
grew.
The Company recorded an impairment charge of $15 million related
to BioStrand’s goodwill and intangible assets. This adjustment
reflects a rise in the discount rate and delays in expected cash
flows. Despite this change in accounting valuation, IPA remains
committed to its strategic investments and long-term growth plans.
The Company recorded an impairment charge of $2.5 million related
to BioStrand in fiscal 2023.
Net loss for the fiscal year was $27.2 million, or $(1.07) per
share on a basic and diluted basis, compared to a net loss of $26.6
million or $(1.06) on a basic and diluted basis in fiscal 2023, for
an increase of $0.6 million. However, the impairment recognized in
fiscal 2024 was $12.5 million higher than fiscal 2023.
Total cash, cash equivalents, and marketable securities,
including restricted cash, were $3.5 million as of April 30, 2024,
reflecting the focus on managing operational costs while investing
in R&D and capital equipment. The Company used cash in
operating activities of $4.2 million in fiscal 2024, compared to
$19.8 million in 2023. Equipment purchases were $1.4 million in
fiscal 2024 and $1.5 million in fiscal 2023. To offset these uses
of cash, net funds of $2.4 million were raised in fiscal 2024
versus $0.7 million in fiscal 2023.
Subsequently, on July 16, 2024, the Company agreed to sell and
issue to A II PN, Ltd., an investment fund managed by Yorkville
Advisors Global, LP (“Yorkville”), U.S.$3.0 million of convertible
debentures in two tranches and at a purchase price of 95% of the
aggregate principal amount.
(in thousands, CAD$)
Q4 FY24
Q4 FY23
FY24
FY23
Revenue
$6,459
$5,620
$24,518
$20,665
Gross Profit
3,108
3,341
12,053
11,563
Research & Development Expense
1,260
912
4,043
14,101
Sales & Marketing Expense
910
933
3,543
3,608
General & Administrative Expense
4,821
4,963
15,592
15,383
Impairment Expense
15,031
2,460
15,031
2,460
Net Loss
(18,045)
(5,129)
(27,177)
(26,560)
Conference Call and Webcast
IPA will host a live conference call and webcast to discuss
these results and provide a corporate update on July 29, 2024, at
10:30 AM 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 IPA Events and Presentations.
Conference Call
Event Title: ImmunoPrecise Reports Financial Results and Recent
Business Highlights for Full Fiscal Year 2024
Event Date: July 29th, 2024
Time: 10:30 AM (GMT-04:00) Eastern Time (US and Canada)
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/388047633
About ImmunoPrecise Antibodies Ltd.
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. 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”). For further
information, visit www.ipatherapeutics.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of applicable United States securities laws and Canadian
securities laws. 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 the efficacy
of our strategic investments and partnerships, our position amongst
AI-driven drug discovery and development, our technological
advancements, our growth. In respect of the forward-looking
statements contained herein, IPA has provided such statements and
information 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, as discussed in the Company’s
Annual Report on Form 20-F for the year ended April 30, 2024 (which
may be viewed on the Company’s SEDAR+ profile at www.sedar.com and
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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version on businesswire.com: https://www.businesswire.com/news/home/20240729947950/en/
Investor Relations Contact Kirsten Beduya Quantum Media
Group, LLC kirsten@quantum-corp.com
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