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AbCellera Biologics (ABCL)
NASDAQ:ABCL
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AbCellera Biologics (ABCL) AI Stock Analysis

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ABCL

AbCellera Biologics

(NASDAQ:ABCL)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$4.00
▼(-15.61% Downside)
AbCellera Biologics' overall score is driven by strong clinical progress and liquidity, but is weighed down by negative profitability, cash flow challenges, and a bearish technical outlook. The strategic shift towards clinical trials offers long-term potential, but near-term financial pressures remain a concern.
Positive Factors
Clinical Trials Progress
The initiation of clinical trials marks a significant milestone, transitioning AbCellera into a clinical-stage company, which can enhance its market position and long-term growth potential in the biotechnology sector.
Strong Liquidity Position
A strong liquidity position provides AbCellera with the financial flexibility to invest in R&D and clinical trials, supporting sustainable growth and resilience against market fluctuations.
Pipeline Expansion
Expanding the pipeline with new candidates like ABCL688 demonstrates AbCellera's commitment to innovation and strengthens its competitive edge in antibody discovery.
Negative Factors
Negative Profitability
Ongoing net losses indicate challenges in achieving profitability, which could hinder long-term financial health and investor confidence if not addressed.
Cash Flow Challenges
Negative cash flows highlight the need for improved cash management strategies to ensure long-term sustainability and operational efficiency.
Decreased R&D Expenses
Reduced R&D spending may impact future innovation and product development, potentially affecting AbCellera's competitive position in the biotech industry.

AbCellera Biologics (ABCL) vs. SPDR S&P 500 ETF (SPY)

AbCellera Biologics Business Overview & Revenue Model

Company DescriptionAbCellera Biologics Inc. develops antibody discovery platform. Its full-stack, artificial intelligence-powered antibody discovery platform searches and analyzes the database of natural immune systems to find antibodies that could be developed as drugs. As of December 31, 2021, the company had 156 discovery programs that are either completed, in progress, or under contract with 36 partners. AbCellera Biologics Inc. has a research collaboration and license agreement with Eli Lilly and Company. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyAbCellera generates revenue primarily through its partnerships and collaborations with pharmaceutical companies, where it provides its antibody discovery services. The company typically enters into agreements that include upfront payments, research funding, and milestone payments based on the progress of drug development. Additionally, AbCellera may receive royalties on sales of products that result from these collaborations. The company's revenue model is heavily reliant on the successful advancement of its partners' therapeutic candidates, along with ongoing research contracts and collaborations that can provide continuous income streams.

AbCellera Biologics Key Performance Indicators (KPIs)

Any
Any
Number of Discovery Partners
Number of Discovery Partners
Indicates the breadth of AbCellera's collaborative network, highlighting potential for diverse innovation and revenue streams through partnerships.
Chart InsightsAbCellera's number of discovery partners has grown steadily, reaching 46 by the end of 2023. However, the latest earnings call reveals a strategic shift with reduced new partnership activities, focusing instead on advancing clinical programs like ABCL635 and ABCL575. This pivot to a clinical stage biotech, despite declining revenue and increased R&D expenses, suggests a long-term strategy prioritizing high-value partnerships and clinical advancements over sheer volume of discovery collaborations.
Data provided by:Main Street Data

AbCellera Biologics Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in clinical trials and a strong financial position, with increased revenue and continued pipeline expansion. However, the company also reported a net loss, though slightly improved from the previous year, and a decrease in R&D expenses.
Q2-2025 Updates
Positive Updates
Health Canada Authorization and Clinical Trials Initiation
AbCellera received Health Canada authorization to initiate their first two clinical trials for ABCL635 and ABCL575. Dosing has begun for ABCL635's Phase I trial evaluating its efficacy for vasomotor symptoms.
Strong Financial Position
AbCellera ended the quarter with approximately $750 million in available liquidity, including $580 million in cash and equivalents, and $170 million in committed government funding.
Pipeline Expansion
AbCellera advanced a third program, ABCL688, into IND-enabling studies and plans to advance at least one more development candidate by the end of 2025.
Revenue Growth
The company reported revenue of approximately $17 million for the quarter, up from $7 million in the same quarter of 2024.
Negative Updates
Net Loss for the Quarter
AbCellera reported a net loss of approximately $35 million for the quarter, compared to a loss of $37 million in the same quarter last year.
Decreased Research and Development Expenses
R&D expenses for the quarter were approximately $39 million, $2 million less than last year, reflecting the timing of larger program-specific expenses.
Company Guidance
During AbCellera's Second Quarter 2025 Business Update Conference Call, the company provided comprehensive guidance on its clinical and financial progress. Key highlights included the initiation of Phase I clinical trials for two lead antibody candidates, ABCL635 and ABCL575, with Health Canada authorization. ABCL635 targets moderate to severe vasomotor symptoms, with a primary endpoint of safety and a secondary endpoint of pharmacokinetics, while ABCL575 focuses on atopic dermatitis with potential in broader autoimmune indications. The company reported approximately $750 million in available liquidity, including $580 million in cash and equivalents. Revenue for the quarter was approximately $17 million, a significant increase from $7 million in the same quarter of 2024, largely due to a one-off $10 million licensing fee. AbCellera anticipates initial safety and efficacy data for ABCL635 by mid-2026 and aims to advance additional candidates into IND-enabling studies, with ongoing investments in clinical manufacturing capabilities set to come online by the end of 2025.

AbCellera Biologics Financial Statement Overview

Summary
AbCellera Biologics shows strong revenue growth but faces challenges with negative profitability and cash flow issues. The company's low leverage provides financial flexibility, but persistent losses and negative cash flows highlight the need for strategic improvements.
Income Statement
35
Negative
AbCellera Biologics has experienced significant volatility in its revenue and profitability. The company showed strong revenue growth in the TTM period with a 42.23% increase, but this was accompanied by negative gross and net profit margins, indicating challenges in cost management and profitability. Historical data shows a declining trend in revenue and profit margins, which raises concerns about the company's ability to sustain growth and profitability.
Balance Sheet
50
Neutral
The balance sheet of AbCellera Biologics shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has been negative in recent periods, reflecting ongoing losses. The equity ratio remains stable, suggesting a solid capital structure, but the negative ROE highlights the need for improved operational performance to enhance shareholder value.
Cash Flow
40
Negative
AbCellera Biologics faces challenges in cash flow management, with negative operating and free cash flows in recent periods. The free cash flow to net income ratio is positive, indicating some efficiency in converting earnings to cash, but the overall cash flow position is weak. The company needs to address its cash burn to ensure long-term sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.88M28.83M38.02M485.42M375.20M233.16M
Gross Profit-61.82M-68.17M7.13M418.99M329.69M206.01M
EBITDA-164.04M-204.15M-192.16M272.20M241.62M169.62M
Net Income-165.66M-162.86M-146.40M158.52M153.46M118.92M
Balance Sheet
Total Assets1.40B1.36B1.49B1.54B1.32B1.01B
Cash, Cash Equivalents and Short-Term Investments553.08M625.61M760.59M886.49M722.98M594.12M
Total Debt142.08M65.36M77.38M82.26M40.06M6.78M
Total Liabilities394.99M304.47M335.78M307.63M292.84M175.03M
Stockholders Equity1.01B1.06B1.15B1.23B1.03B830.51M
Cash Flow
Free Cash Flow-138.99M-186.95M-121.38M204.70M186.13M8.02M
Operating Cash Flow-80.84M-108.56M-43.88M277.36M244.58M22.69M
Investing Cash Flow15.53M121.41M-221.11M-352.63M-332.25M-119.78M
Financing Cash Flow9.88M12.77M10.36M-1.63M-3.89M683.65M

AbCellera Biologics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.74
Price Trends
50DMA
4.49
Positive
100DMA
3.70
Positive
200DMA
3.22
Positive
Market Momentum
MACD
0.12
Negative
RSI
55.89
Neutral
STOCH
50.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABCL, the sentiment is Positive. The current price of 4.74 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.49, and above the 200-day MA of 3.22, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABCL.

AbCellera Biologics Risk Analysis

AbCellera Biologics disclosed 102 risk factors in its most recent earnings report. AbCellera Biologics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

AbCellera Biologics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$1.37B-4.05-58.35%6.07%-2.28%
48
Neutral
$1.35B-4.022133.71%-15.38%
48
Neutral
$1.46B-11.28-37.86%17.87%41.27%
46
Neutral
$1.42B-15.64%-0.54%-6.28%
40
Underperform
$1.69B-10.32-1.46%
31
Underperform
$1.44B-8.00-39.64%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ABCL
AbCellera Biologics
4.74
2.14
82.31%
SNDX
Syndax Pharmaceuticals
15.68
-3.57
-18.55%
RCUS
Arcus Biosciences
12.84
-2.45
-16.02%
DNTH
Dianthus Therapeutics
36.71
9.33
34.08%
EWTX
Edgewise Therapeutics
16.05
-10.64
-39.87%
GPCR
Structure Therapeutics, Inc. Sponsored ADR
25.00
-18.89
-43.04%

AbCellera Biologics Corporate Events

Business Operations and StrategyFinancial Disclosures
AbCellera Biologics Reports Q2 2025 Financial Results
Neutral
Aug 7, 2025

AbCellera Biologics reported its financial results for Q2 2025, highlighting a net loss of $34.7 million, which is an improvement from the previous year’s loss. The company also initiated dosing in a Phase 1 clinical trial for ABCL635, a potential treatment for vasomotor symptoms associated with menopause, marking its transition to a clinical-stage company. Additionally, AbCellera received authorization to begin Phase 1 trials for ABCL575 and advanced ABCL688 into IND-enabling studies, demonstrating significant progress in its pipeline. With over $750 million in available liquidity, AbCellera is well-positioned to continue executing its strategic initiatives.

Executive/Board ChangesShareholder Meetings
AbCellera Biologics Holds Annual Shareholder Meeting
Neutral
Jun 13, 2025

On June 12, 2025, AbCellera Biologics Inc. held its Annual Meeting of Shareholders, where key decisions were made regarding the election of directors, appointment of an accounting firm, and executive compensation. Shareholders approved the election of Carl L. G. Hansen and Michael Hayden as Class II directors, ratified KPMG LLP as the independent accounting firm, and endorsed executive compensation, reflecting continued support for the company’s strategic direction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025