Greetings. Thank you for standing by. Welcome to the ImmunoPrecise First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. Please note this conference is being recorded. I will now turn the conference over to your host, John Mullaly. Thank you. You may begin.

Thank you and welcome. Dr. Jennifer Bath, President and Chief Executive Officer of ImmunoPrecise Antibodies and Ms. Lisa Helbling, Chief Financial Officer will be the speakers on today’s call. A Q&A period answering pre-submitted questions will follow their summary of the quarter followed by closing remarks. Before Dr. Bath begins, I have been asked by ImmunoPrecise Antibodies to read the following Safe Harbor regarding forward-looking statements. I would like to remind everyone that ImmunoPrecise remarks today contain forward-looking statements about its current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or other future events or developments. In preparing these forward-looking statements, several assumptions were made by ImmunoPrecise and there are risks that results actually obtained by the company may differ materially from those statements. As a consequence, the company cannot guarantee that any forward-looking statement will materialize and you are cautioned not to place undue reliance on them. ImmunoPrecise refers current and potential investors to the forward-looking information section of its management discussion and analysis issued today at www.sedar.com and on EDGAR at www.sec.gov. Forward-looking statements represent ImmunoPrecise’s expectations as of September 9, 2021. Except as maybe required by securities laws, ImmunoPrecise does not undertake any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. I would now like to turn the conference over to Dr. Bath.

Thank you, John and good afternoon everyone. We are happy to see such a strong turnout today for our second webcasted earnings call. As you can start to convene from our recent flurry of press releases, this quarter marks an exciting leap toward earning our position on the market as progressive thinkers, formidable competitors and emerging leaders in our space. Our investments in major strategic initiatives support our bold vision and reinforce our infrastructure to enable us to unite in our mission and continue our fast growth trajectory on a global scale. We have embarked on significant investments that will enable us to achieve great new potential in our contract research, our internally owned therapeutic assets and new research and manufacturing services. In the previous quarters, our operational site focused on the development of complimentary revenue generating service offerings, services which are now resulting in new revenue streams. Under the guidance of our recently appointed CSO, Ilse Roodink, this quarter also saw unprecedented investment, striving later stage preclinical asset development toward clinical manufacturing and lead candidate functional validation, which we will provide some insight for you here today. We progress these assets with a real sense of excitement and great anticipation while remaining diligent in our dedication to contract research. I look forward to sharing more details today about several strategic growth events, including exciting progress in our commercial partnerships with Eurofins Discovery and our recently approved French R&D credit – tax credit. We have a lot to look forward to this fiscal year and we are grateful for the ongoing support of our investors, which enabled these tremendous strides forward. This quarter demonstrates the continued successful execution for our strategic development plan. As part of that foundation we have actively expanded IPA’s human capital by investing in key strategic…

Thank you, Jennifer and good afternoon everyone. I am Lisa Helbling. IPA’s CFO. Unless otherwise noted, all numbers referred to are in Canadian dollars. For those of you with visuals, this first chart shows our revenue and gross profit trend. The company achieved revenues of $4.6 million during the 3 months ended July 31, 2021 compared to $3.8 million in 2020 and $823,000 or 22% increase in its core CRO business. The company’s strong organic revenue growth of its core CRO business continues as a result of increases in both the volume and financial values of client contracts and continued focus on the development and expansion of revenue generating services. The company’s gross profit was $2.5 million with a 55% gross profit margin compared to $2.4 million and a 64% gross profit margin in 2020, a $96,000 gross profit increase. I mentioned at year end, the company has been implementing a new ERP system. Beginning May 1 of 2021, the method of allocating overhead cost from operating expense to cost of sales is now being done consistently across the company, which caused the decline in the gross profit margin as more overhead costs were allocated to cost of sales. The company’s operating expenses for the first quarter were $6 million compared to $3.4 million in 2020, an increase of $2.6 million. There are four main expenses that primarily make up the increase. I will discuss in order at the largest expense. The company invested $1.1 million in research compared to $309,000 in 2020 for COVID-19 and other research projects, an $810,000 increase. Share-based payments expense increased was $1.1 million compared to $97,000 in 2020, an increase of $1 million. Stock options are awarded to employees and certain advisors to align their interests with the goals of the company and our…

Thank you, Lisa. Before Jennifer has any closing remarks, I would like to spend a little time asking some questions that we received from analysts and investors. And I would like to say, thank you for submitting your thoughtful and concise questions today. The first question reads as follows. Can you give an update on the TATX-03 PolyTope program. And then there is two parts of this question. When will the final preclinical results be announced? And then when will clinical trials begin?

Sure. Thanks. Thanks, John, and thanks to all of you investors for submitting questions. So first, when will the final preclinical results be announced. So, first, we have selected Eurofins, as I have mentioned, as our partner for performing the PK and tox studies for IPA’s SARS-CoV-2 program. And together the two companies have scheduled these programs for Q4 of this calendar year. And we are aiming to finalize that corresponding data package for the IND filing in Q1, which is also calendar year Q1 2022. When will clinical trials begin, that’s a common question we get. So, first I do want to say we are excited about our commitment to and working relationship we have with Chem Partners for clinical manufacturing. One thing that many people may not be aware of is that we have actually been working with this group substantially for the past six months to eight months. We have developed a really good relationship with them. And we are wholly confident in their ability to not only produce these products in a quality manner, but also in a very timely manner. And as mentioned previously, I think another important aspect here is the CDMO is one of the few CMOS with unusual capabilities and capacity to produce all five components of our PolyTope cocktail in parallel. So, the first batches of those clinical products for the clinical studies are also expected to be ready in calendar year Q1 of 2022. So, as you can see, we are really actively running all of these aspects of the IND filing the PK tox studies and the clinical manufacturing preparations all in parallel and hopefully emerging at – about the same time in Q1 calendar year 2022. So, I think one aspect too, I just want to leave here as a thought with regard to when clinical trials begin, it’s important to note that when we are giving you these timelines, we are also not assuming any acceleration in the speed based on emergency use authorization.

I will read the next question. So, can you give us an update on the rest of the Talem pipeline? Are you in talks with pharma companies or other potential partners to bring any of those programs into preclinical trials? If so, for how many programs?

Yes, sure. So, we are in active communication with many different companies, quite a few are Talem’s pipeline assets. So as you know, we have about five or six later stage candidates, which are moving into preclinical analysis and functional studies. And we do allow pre-IND enabling discussions with various companies. And we do accept input from those groups, especially if they have particular platforms of interest. So, one example I mentioned previously, was the antibody drug conjugate format. Sometimes we also get requests from groups that want to use things in what’s called a CAR T format, or as a buy specific. And so oftentimes their input on those IND enabling studies can help us to ensure that we are getting the type of output that they are looking for when they are serious potential partner. So, we do solicit that information. We do accept meetings with those groups and have conversations with them. There are numerous partners in discussion, right, each of those later stage candidates. And I think probably another important thing to point out is that we also do routinely solicit input on the earlier stage assets, and work alongside interested parties of those programs. So right now, we have a number of them that are actually progressing in terms of initial lead characterization. And so again, when we have serious interest, we think it’s really important to take that communication into consideration as we are moving them forward.

Next question reads as follows. How will the collaboration with Eurofins impact the CRO business? When do you expect this collaboration to start beginning or bringing in revenue for IPA?

Yes, okay. Great question. So, as I mentioned previously, the collaboration with Eurofins it will allow IPA to reach more clients and in a broader geographic area. So, we have done – it couples really well with our initiatives in marketing and with our new sales team. Our VP of Marketing, Carla Dahl, has actually been working very actively in developing market strategy right alongside Eurofins marketing team. So, that’s been really exciting for us to watch that unfold. And they have been really – Carla has really headed up accelerating and intensifying that relationship between IPA and Eurofins, and being really purposeful about how we are addressing this. So this does, as I mentioned, it includes co-branded brochures across marketing efforts. We will be attending live conferences, as well as virtual conferences with their team and then also providing co-marketing details on the company’s website. So, more of your question around kind of how this impacts us directly and the timing, so we will be gaining access, obviously to a broader spectrum of services for our clients. And we expect to generate more business opportunities starting likely around late Q3 this year and then likely permanently thereafter with regard to these efforts. It’s about the time that we expect the joint marketing efforts will bear their first fruit.

Great, thank you. This question reads as follows. How should investors think about the growth of base customers in the CRO business in terms of adding new clients, or is it more growth within existing clients?

Okay, so yes, it’s both, really and then a couple of other areas. So, we do continuously add new clients. We do also maintain really good business relationships with our existing customers. One of the things we have definitely become known for is really trusting the quality of our services. And in our word, when we talk about our scientific rigor and the quality of the products that we are returning, we are engaged with most of the top 20 pharmas as most of you know. And our average contract size during Q1, it was around $120,000 per program. We do still keep a very solid and diversified client portfolio. We don’t have any clients that are in concentration higher than 10% of the revenue at any particular site.

Great, thank you. That concludes the Q&A portion of our program. We hope that your questions were answered either in our script or the Q&A or in the MD&A. And I will turn the call back to Dr. Bath for closing remarks.

Sure. Thanks, John. Alright, so once again, I would really like to thank our employees, our clients, our partners and our shareholders for your unending support and your belief in our corporate mission to become a global leader in the antibody market. And as the go to CRO in partner of choice, we are confident in the foundation we have built on which we aggressively seek to solidify our mission with a focus on meaningful expansions, M&A activities and multifaceted revenue opportunities, with the ultimate goal of becoming the global leader in all aspects of quality antibody discovery and the global recognition for our scientific rigor. We are full steam ahead right now on strategic growth from the building of human capital to physical global footprint, to engaging partners in even more meaningful ways with our rapidly advancing high value assets addressing many disease indications. We truly believe this fiscal year will be the most exciting yet. We sincerely look forward to sharing our successes with you every step of the way. Thank you.

This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation and have a great day.