LLY - AbCellera Biologics: I Was Wrong

• AbCellera reported Q2 results on 08/12/21 which were well received by the market, sending shares up 15%. A remark by the CEO in the conference call, however, has me quite concerned.
• The company since IPO has indicated that royalties negotiated are between single digits and low double digits, allowing the impression to set that the average is somewhere in the 8-12% range.
• The CEO sandwiched a line into the call stating that the true royalty numbers negotiated likely average only in the 3-6% range, making this a rather ordinary company.
• Thanks to the steep sell-off in shares over the past months, the company may still turn out to be a decent investment at this price, but they are certainly nothing special and have nowhere near the prospects I originally estimated.
• With this information, I will be selling half of my position at a substantial loss and with quite a bitter taste in my mouth regarding management credibility.

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