ImmunoPrecise Antibodies (IPA) Reports Financial Results and Recent Business Highlights for Third Quarter Fiscal Year 2025

Secures $8-$10M Strategic Partnership

Scales AI Infrastructure Collaborations with Vultr and Leading Providers of Advanced GPU technologies to Accelerate de novo Drug Discovery.

Unlocking Margin Expansion Through Scalable AI

IPA Strengthens Board & Management Team

Kamil Isaev, Joseph Scheffler, and Dr. Li Hui join IPA, enhancing leadership in AI, finance, and client relations.

AUSTIN, Texas--(BUSINESS WIRE)--March 28, 2025-- 

IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") $(IPA)$, an AI-driven biotherapeutic research and technology company, today reported financial results for the third quarter ("Q3") of its 2025 fiscal year ("FY25"), which ended January 31, 2025.

"As we continue to revolutionize the AI-enabled drug discovery sector, our recent milestones underscore the growing recognition of our innovative AI and growth potential. Notably, we've secured a strategic partnership valued at $8-10 million USD with a leading biotech company, leveraging our proprietary B-cell Select technology and AI-driven capabilities to enhance our development and optimization processes. These AI-driven development and optimization capabilities are accelerating the advancement of novel therapies, positioning us at the forefront of innovation. Our collaborations with Vultr, AMD and other Leading Providers of Advanced GPU technologies further enhance our lab-in-a-loop drug discovery and development capabilities, not only driving cost-effectiveness for our pharma partners but also increasing our competitiveness in securing future collaborations. This strategic alignment is positively impacting both our top line and gross profit margins in the AI sector, as we continue to drive robust growth and expand our presence in the rapidly evolving AI healthcare landscape. We are excited about the potential of these current partnerships and looks forward to forming new collaborations that will further accelerate our mission to transform the future of healthcare through AI-driven innovation," stated Dr. Jennifer Bath, President and CEO.

"While BioStrand's AI revenue currently represents a modest portion of our total topline, it stands out for its remarkably high gross margins--exceeding 90% in recent quarters, a level of profitability that is truly exceptional in our industry. This positive dynamic reveals one of the most important yet underappreciated financial drivers of our business: as AI revenues scale, so does the path to profitability at an accelerated pace. Unlike traditional project-based services, IPA's AI-driven offerings generate significant leverage and recurring value, creating a robust foundation for sustainable growth. This margin profile--combined with accelerating adoption--positions IPA's AI segment as a powerful engine for long-term shareholder value and a key catalyst for our future success," stated Joseph Scheffler, Interim CFO.

Third Quarter Corporate Update and Recent Business Highlights

   -- Entered into a USD $8M--$10M partnership with a USD $3 billion market cap 
      global biotechnology company to co-develop Antibody-Drug Conjugates 
      (ADCs) and bispecific antibodies, reinforcing demand for IPA's B-Cell and 
      AI-powered platforms. 
 
   -- Expanded AI infrastructure through strategic collaborations with Vultr, 
      AMD and other leading providers of advanced GPU technologies enabling 
      high-performance GPU computing for generative AI. 
 
   -- Corporate headquarters relocated to Austin, Texas: Expanding IPA's U.S. 
      footprint in the heart of a thriving AI, biotech, and semiconductor 
      ecosystem. This strategic move takes advantage of Texas's zero corporate 
      income tax, allowing us to reinvest savings in business expansion and 
      innovation. Additionally, the state's robust economy and skilled 
      workforce will support our growth ambitions, positioning us for increased 
      competitiveness and profitability in the rapidly evolving AI healthcare 
      landscape. 
 
   -- Resilience in Challenging Market Conditions: Our year-to-date revenue 
      stability and high margin profile, including BioStrand's 131.8% 
      year-over-year revenue growth and 97% gross margin, underscore IPA's 
      solid financial position and ability to navigate difficult market 
      conditions effectively. 
 
   -- Announced key leadership changes, including the appointment of Joseph 
      Scheffler as Interim CFO and Kamil Isaev to the Board of Directors, 
      enhancing financial oversight and business strategy. 
 
   -- Completed a USD $8.8 million At-the-Market $(ATM.UK)$ equity raise and 
      announced the full conversion of the Yorkville debenture, strengthening 
      IPA's balance sheet and removing near-term convertible debt. 
 
   -- Pioneered AI-designed GLP-1 therapeutics for diabetes and metabolic 
      disorders, using unique nucleic acid-based delivery technology and the 
      LENSai$(TM)$ platform to enhance efficacy, safety, and patient compliance. 
 
   -- Realigned pipeline strategy, launching a new AI-powered therapeutic 
      development pipeline driven by first principles thinking and proprietary 
      machine learning models. 
 
   -- Revealed multiple ADC lead candidates with demonstrated tumor-killing 
      capabilities, potentially positioning IPA in the high-growth $20B 
      antibody-drug conjugate market. 
 
   -- Insider Confidence Reinforced: Key members of IPA's leadership and 
      BioStrand co-founders acquired 763,120 shares on the open market--an 
      aggregate investment of USD $306,000--demonstrating strong internal 
      conviction in the Company's long-term strategy and AI-driven growth 
      trajectory. 

Third Quarter FY25 Financial Results

   -- Revenue: Total revenue was $6.2 million, compared to revenue of $6.2 
      million in fiscal year 2024 ("FY24") Q3. Project revenue generated $5.6 
      million, including projects using IPA's proprietary B Cell Select$(R)$ 
      platform and IPA's proprietary LENSai platform, compared to $5.8 million 
      in FY24 Q3. Product sales and cryostorage revenue were $0.6 million, 
      compared to $0.4 million in FY24 Q3. 
 
   -- Research & Development (R&D) Expenses: R&D expenses were $1.1 million, 
      compared to $1.0 million in FY24 Q3, reflecting increased salary and 
      benefits related to the build of the Company's LENSai platform. 
 
   -- Sales & Marketing (S&M) Expenses: S&M expenses were $1.3 million, 
      compared to $0.6 million in FY24 Q3 and includes S&M expenses related to 
      social media and digital campaigns. S&M costs related to BioStrand 
      LENSai. 
 
   -- General & Administrative (G&A) Expenses: G&A expenses were $3.6 million, 
      compared to $4.2 million in FY24 Q3. 
 
   -- Impairment: The Company recorded an impairment charge of $21.2 million 
      related to BioStrand's intangible assets. This adjustment reflects a 
      delay in expected cash flows and resulted in full impairment of the 
      remaining intangible assets after the Company recorded an impairment 
      charge of $15.0 million related to BioStrand in fiscal 2024. Despite this 
      change in valuation, IPA remains committed to its strategic investments 
      and long-term growth plans. 
 
   -- Net Loss: Net loss of $21.5 million, or $(0.66) per share on a basic and 
      diluted basis, as compared to a net loss of $2.7 million or $(0.10) on a 
      basic and diluted basis in FY24 Q3. 
 
   -- Liquidity: Cash totaled $12.9 million as of January 31, 2025, compared to 
      $3.5 million as of April 30, 2024. 

*All financial figures are in Canadian Dollars $(CAD.UK)$ unless otherwise stated.

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 Friday, March 28, 2025, 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 3224490 or Conference Name.

USA / International Toll +1 (646) 307-1963

USA - Toll-Free (800) 715-9871

Canada - Toll-Free (800) 715-9871

***Webcast Details***

Attendee URL:

https://events.q4inc.com/attendee/849565157

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization.

Anyone listening to the call is encouraged to read the company's periodic reports available on the company's profile at www.sedarplus.com and www.sec.gov, including the discussion of risk factors and historical results of operations and financial condition in those reports.

About ImmunoPrecise Antibodies Ltd.

ImmunoPrecise Antibodies Ltd. is a techbio company that leverages multi-omics modeling and complex artificial intelligence through a series of proprietary and patented technologies. The Company owns an integrated end-to-end suite of capabilities to support the development of therapeutic antibodies and are known for solving very complex industry challenges. IPA 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 more information, visit www.ipatherapeutics.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable United States and Canadian securities laws. These statements reflect the Company's expectations, plans, projections, and beliefs regarding future events or performance. Words such as "expects," "anticipates," "intends," "believes," "plans," "potential," "will," "may, " "continue," and variations thereof are intended to identify forward-looking statements.

Forward-looking statements in this release include, but are not limited to, statements related to the Company's operational and financial outlook, the potential impact and continuity of strategic partnerships, including the recently announced commercial agreement and collaborations with cloud infrastructure providers, our projected growth in AI-driven revenues and margins, our ability to commercialize new technologies such as de novo antibody design and AI-designed GLP-1 therapeutics, future demand for our platform capabilities, ongoing strategic initiatives including business realignment and divestitures, and our ability to drive sustainable profitability.

These statements are based on management's current expectations and assumptions and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied. These include, but are not limited to: execution risks related to strategic partnerships, delays or failures in technology development or commercialization, market adoption of AI-based drug discovery tools, fluctuations in financial markets, general economic conditions, and risks related to funding requirements and liquidity.

The Company cautions readers not to place undue reliance on these forward-looking statements. All such statements are made as of the date of this release and, unless required by law, the Company assumes no obligation to update or revise them to reflect new events or circumstances.

For a complete discussion of risk factors, investors should refer to IPA's filings with Canadian and U.S. securities regulators, including the most recent Annual Report on Form 20-F available at www.sedarplus.ca and www.sec.gov.

 
                         IMMUNOPRECISE ANTIBODIES LTD. 
        CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 
                  (Unaudited - Expressed in Canadian dollars) 
                                Three months ended         Nine months ended 
                                       January 31,               January 31, 
------------------   ----  -----------------------   ----------------------- 
(in thousands, 
except share                     2025         2024         2025         2024 
data)                Note           $            $            $            $ 
------------------   ----  ----------   ----------   ----------   ---------- 
REVENUE                         6,151        6,221       17,539       18,059 
COST OF SALES                   2,856        3,024        8,451        9,114 
-------------------  ----  ----------   ----------   ----------   ---------- 
GROSS PROFIT                    3,295        3,197        9,088        8,945 
-------------------  ----  ----------   ----------   ----------   ---------- 
EXPENSES 
   Research and 
    development                 1,057        1,001        3,854        2,783 
   Sales and 
    marketing                   1,310          649        3,265        2,633 
   General and 
    administrative              3,594        4,178       11,029       11,473 
   Amortization of 
    intangible 
    assets              6         623          709        1,842        2,267 
   Asset Impairment     6      21,184           --       21,184           -- 
-------------------  ----  ----------   ----------   ----------   ---------- 
                               27,768        6,537       41,174       19,156 
 ------------------  ----  ----------   ----------   ----------   ---------- 
Loss before other 
 income (expenses) 
 and income taxes             (24,473)      (3,340)     (32,086)     (10,211) 
-------------------  ----  ----------   ----------   ----------   ---------- 
OTHER INCOME 
(EXPENSES) 
   Accretion                       (3)          (5)          (8)         (15) 
   Grant income        13          (4)          --          164          300 
   Interest and 
    other income 
    (expense)                    (169)           3         (286)          26 
   Unrealized 
    foreign 
    exchange gain 
    (loss)                        114         (115)        (151)          21 
-------------------  ----  ----------   ----------   ----------   ---------- 
                                  (62)        (117)        (281)         332 
 ------------------  ----  ----------   ----------   ----------   ---------- 
Loss before income 
 taxes                        (24,535)      (3,457)     (32,367)      (9,879) 
Income taxes            2       3,014          778        4,294        1,374 
-------------------  ----  ----------   ----------   ----------   ---------- 
NET LOSS FOR THE 
 PERIOD                       (21,521)      (2,679)     (28,073)      (8,505) 
-------------------  ----  ----------   ----------   ----------   ---------- 
OTHER 
COMPREHENSIVE 
INCOME (LOSS) 
Items that will be reclassified subsequently to 
loss 
   Exchange difference on 
    translating foreign 
    operations                   (142)        (402)         546       (1,110) 
-------------------------  ----------   ----------   ----------   ---------- 
COMPREHENSIVE LOSS 
 FOR THE PERIOD               (21,663)      (3,081)     (27,527)      (9,615) 
-------------------  ----  ----------   ----------   ----------   ---------- 
LOSS PER SHARE -- 
 BASIC AND DILUTED              (0.66)       (0.10)       (0.96)       (0.34) 
-------------------  ----  ----------   ----------   ----------   ---------- 
WEIGHTED AVERAGE NUMBER 
 OF SHARES OUTSTANDING     32,851,233   25,800,919   29,367,687   25,298,660 
-------------------------  ----------   ----------   ----------   ---------- 
 
 
                  IMMUNOPRECISE ANTIBODIES LTD. 
 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
           (Unaudited - Expressed in Canadian dollars) 
                                        January 31,   April 30, 
                                               2025        2024 
(in thousands)                    Note            $           $ 
-------------------------------   ----  -----------   --------- 
ASSETS 
Current assets 
   Cash                                      12,915       3,459 
   Amounts receivable, net                    3,606       3,790 
   Tax receivable                               177         414 
   Inventory                                  1,920       2,139 
   Unbilled revenue                           1,082         277 
   Prepaid expenses                           1,042       1,408 
--------------------------------  ----  -----------   --------- 
                                             20,742      11,487 
Restricted cash                                  90          86 
Deposit on equipment                            488         475 
Property and equipment            5, 8       15,219      16,696 
Intangible assets                    6        1,124      23,557 
Goodwill                                      7,871       7,687 
--------------------------------  ----  -----------   --------- 
Total assets                                 45,534      59,988 
--------------------------------  ----  -----------   --------- 
LIABILITIES 
Current liabilities 
   Accounts payable and accrued 
    liabilities                     11        4,391       4,372 
   Deferred revenue                           2,353       1,353 
   Income taxes payable              2          202         553 
   Leases                            8        1,689       1,563 
   Deferred acquisition payments                298         284 
   Debentures, net                   7           --          -- 
-------------------------------   ----  -----------   --------- 
                                              8,933       8,125 
Leases                               8       11,239      12,118 
Deferred income tax liability                   238       4,067 
--------------------------------  ----  -----------   --------- 
Total liabilities                            20,410      24,310 
--------------------------------  ----  -----------   --------- 
SHAREHOLDERS' EQUITY 
Share capital                        9      136,354     119,773 
Contributed surplus                  9       12,779      12,387 
Accumulated other comprehensive 
 loss                                         2,624       2,078 
Accumulated deficit                        (126,633)    (98,560) 
--------------------------------  ----  -----------   --------- 
                                             25,124      35,678 
 -------------------------------  ----  -----------   --------- 
Total liabilities and 
 shareholders' equity                        45,534      59,988 
--------------------------------  ----  -----------   --------- 
 
 
                  IMMUNOPRECISE ANTIBODIES LTD. 
     CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS 
       For the nine months ended January 31, 2025 and 2024 
           (Unaudited - Expressed in Canadian dollars) 
------------------------------------------------------------------ 
                                                  2025     2024 
(in thousands)                        Note           $        $ 
---------------------------------   ---------  -------   ------ 
Operating activities: 
   Net loss for the period                     (28,073)  (8,505) 
   Items not affecting cash: 
      Amortization and 
       depreciation                  5, 6, 14    4,206    4,156 
      Deferred income taxes                     (3,935)  (1,209) 
      Accretion                                      8       15 
      Foreign exchange                             159      118 
      Gain on investment                            (7)     (21) 

      Share-based expense           9, 10, 11      392    1,298 
      Asset Impairment                          21,184       -- 
---------------------------------   ---------  -------   ------ 
                                                (6,066)  (4,148) 
   Changes in non-cash working 
   capital related to 
   operations: 
      Amounts receivable                           306      439 
      Inventory                                    253     (513) 
      Unbilled revenue                            (759)    (416) 
      Prepaid expenses                             388      184 
      Accounts payable and accrued 
       liabilities                         11      (87)   1,462 
      Sales and income taxes 
       payable and receivable                     (298)     339 
      Deferred revenue                             993    1,050 
----------------------------------  ---------  -------   ------ 
Net cash used in operating 
 activities                                     (5,270)  (1,603) 
----------------------------------  ---------  -------   ------ 
Investing activities: 
   Purchases of property and 
    equipment                               5     (440)    (270) 
   Security deposit on leases                       --     (157) 
   Deferred acquisition payments                    --     (146) 
   Sale of QVQ Holdings BV shares                   --      121 
----------------------------------  ---------  -------   ------ 
Net cash used in investing 
 activities                                       (440)    (452) 
----------------------------------  ---------  -------   ------ 
Financing activities: 
   Proceeds on share issuance, net 
    of transaction costs                    9   12,211      935 
   Repayment of leases                      8   (1,142)  (1,037) 
   Proceeds on debenture issuance, 
    net of transaction costs                7    4,242       -- 
----------------------------------  ---------  -------   ------ 
Net cash provided by (used in) 
 financing activities                           15,311     (102) 
----------------------------------  ---------  -------   ------ 
Increase (decrease) in cash during 
 the period                                      9,601   (2,157) 
Foreign exchange                                  (141)      80 
Cash -- beginning of the period                  3,545    8,366 
----------------------------------  ---------  -------   ------ 
Cash -- end of the period                       13,005    6,289 
----------------------------------  ---------  -------   ------ 
Cash is comprised of: 
   Cash                                         12,915    6,204 
   Restricted cash                                  90       85 
----------------------------------  ---------  -------   ------ 
                                                13,005    6,289 
 ---------------------------------  ---------  -------   ------ 
Cash paid for interest                              --       -- 
Cash paid for income tax                            --       -- 
----------------------------------  ---------  -------   ------ 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250328956825/en/

 
    CONTACT:    Investor Relations Contact 

investors@ipatherapeutics.com

(END) Dow Jones Newswires

March 28, 2025 08:01 ET (12:01 GMT)