ABCL - AbCellera: Cash Providing Shelter From Market Weakness

2024-05-15 23:17:57 ET

Summary

• AbCellera Biologics is a drug discovery company focused on developing antibody therapies.
• While the company has developed a technology platform that is open to customers, the current market environment has accelerated its shift towards advancing internal programs.
• This move should allow the company to capture more value in the long run, but it is depressing revenue and increasing cash burn at the moment.
• AbCellera's large cash balance will safely see it through this current period, but financial conditions will likely need to ease for the stock to rebound.

AbCellera Biologics ( ABCL ) is a drug discovery company taking a technological approach to discovering and developing antibody therapies. While the company has enormous long-term potential and appears to be attractively priced, revenue remains depressed, and losses are large due to growing investments in support of internal candidates. Absent a significant loosening of financial conditions, or the receipt of meaningful milestone/royalty payments, it is difficult to see AbCellera's stock moving higher in the near-term....

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