LLY - Why AbCellera Biologics Is 10% Lower Today
Shares of contract drug developer AbCellera Biologics (NASDAQ: ABCL) are down 10% as of 12:04 p.m. ET today, according to data from S&P Global Market Intelligence , following Piper Sandler's lowered price target despite a seemingly strong earnings report.
For the three-month stretch ending March 31, biopharma outfit AbCellera Biologics turned $316.6 million worth of revenue into earnings of $0.54 per share. Both numbers are better than the year-ago comparisons of $202.7 million and $0.37, respectively, although perhaps more important, both numbers topped expectations for sales of $219.5 million and a profit of $0.38 per share. COVID-19 treatments bamlanivimab and bebtelovimab -- manufactured for Eli Lilly (NYSE: LLY) -- accounted for $307 million of the company's Q1 top line.
And there's the rub. While AbCellera Biologics' CEO Carl Hansen is unsurprisingly optimistic about the future, that's a future in which the drugs' combined revenue contribution could fade -- significantly. Bamlanivimab was deemed ineffective against the omicron strain of the coronavirus in January, and while bebtelovimab still has its place in the fight against the ongoing pandemic, interest in combating COVID-19 is waning while the virus itself is evolving. The company still has 84 unique drug developments underway. But nothing said during the conference call led investors to think the analyst community's expectations of a 15% decline in sales this full fiscal year and a 74% dip next year were off target.
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Why AbCellera Biologics Is 10% Lower Today