AbCellera: Burning Cash, Searching For 'Blockbusters'

(16min)

Summary

  • AbCellera's revenues plummeted post-COVID antiviral sales, leading to a significant net loss and an 85% drop in share price, now at ~$2.5.
  • The company is pivoting to develop its own drug pipeline, with ABCL635 and ABCL575 in late-preclinical stages, targeting metabolic and inflammatory conditions.
  • Financially, AbCellera has ~$840 million in liquidity, but its market cap is lower than its cash reserves, reflecting skepticism about its assets.
  • The company's future hinges on successfully developing a blockbuster drug, with key catalysts not expected until 2026, making its current valuation a gamble.

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Investment Overview

AbCellera (NASDAQ:ABCL) completed its IPO in December 2020, raising ~$483m, at $20 per share. In its IPO press release, the company called itself "a technology company that searches, decodes, and analyzes natural immune systems to find antibodies that

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

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