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AbCellera Biologics (ABCL)
NASDAQ:ABCL
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AbCellera Biologics
(NASDAQ:ABCL)
44Neutral
Positive Factors
Internal R&D programs
AbCellera is focusing on its two leading internal R&D programs, ABCL635 in the metabolic and endocrinology medical area and ABCL575, targeting immunology and inflammation.
Pipeline development
The stock continues to trade near its total liquidity, implying upside from ABCL's royalty portfolio and internal pipeline.
Strategic partnerships
AbCellera succeeded in signing two new partnerships in 2024, with Biogen and venture firms Viking and ArrowMark, and expanding two legacy programs.
Negative Factors
Financial results
AbCellera Biologics reported financial results for their 4Q24, including revenues of $5.1 million and a net loss of ($0.12) per share, as compared to revenues of $9.2 million and a net loss of ($0.16) per share in the prior year period.
Research fees
Partner research fees drove Q4 topline revenues lower, though management expects research fees will continue to trend lower over time.
Revenue performance
Revenues came in below estimates.
AbCellera Biologics (ABCL) vs. S&P 500 (SPY)
Market Cap
$753.91M
Dividend YieldN/A
Average Volume (3M)4.35M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-24.17%
EPS Growth-9.24%
CountryUS
Employees596
SectorHealthcare
Sector Strength66
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.55
Shares Outstanding297,987,670
10 Day Avg. Volume3,738,335
30 Day Avg. Volume4,350,816
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)21.75
Price to Cash Flow (P/CF)-6.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.60Price Target Upside358.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
AbCellera Biologics Business Overview & Revenue Model
Company DescriptionAbCellera Biologics (ABCL) is a biotechnology company based in Vancouver, Canada, specializing in the discovery of therapeutic antibodies through its proprietary technology platform. The company operates in the biopharmaceutical sector, focusing on harnessing the power of machine learning and high-throughput screening to identify and develop promising antibody candidates. AbCellera collaborates with pharmaceutical and biotechnology companies to accelerate the development of novel treatments for a variety of diseases.
How the Company Makes MoneyAbCellera Biologics generates revenue through collaborations and partnerships with pharmaceutical and biotechnology companies. Its revenue model primarily involves upfront payments, milestone payments, and royalties. The company leverages its technology platform to provide discovery services, identifying potential therapeutic antibodies that partners can then further develop and commercialize. AbCellera enters into agreements where it receives payments upon achieving certain development and regulatory milestones, as well as a percentage of sales (royalties) from any successfully commercialized products. Significant partnerships with major industry players, such as Eli Lilly, contribute to its earnings by providing a steady flow of collaboration opportunities and financial commitments.
AbCellera Biologics Financial Statement Overview
Summary
AbCellera Biologics faces notable financial challenges, with declining revenues and profitability affecting its income statement. While the balance sheet remains relatively stable, increased debt levels and weakened cash flow metrics pose potential risks. Strategic adjustments may be required to improve financial health and operational efficiency.Income Statement
AbCellera Biologics has experienced a significant decrease in revenue from 2022 to 2024, which has adversely affected its gross profit margin. The net profit margin has turned negative due to substantial losses in 2023 and 2024, indicating operational challenges. Additionally, EBIT and EBITDA margins have deteriorated, reflecting negative operating efficiency.35
Negative
Balance Sheet
The company maintains a strong equity base, with a favorable equity ratio. However, the debt-to-equity ratio has increased, suggesting a rising reliance on debt financing, though it remains at manageable levels. The declining return on equity indicates reduced profitability on shareholders' investments.55
Neutral
Cash Flow
Free cash flow has turned negative, and operating cash flow is not sufficient to cover net income, indicating cash management issues. The significant decline in free cash flow growth rate from 2022 to 2024 further pressures financial stability.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 28.83M | 38.02M | 485.42M | 375.20M | 233.16M | Gross Profit |
| 28.83M | 38.02M | 418.99M | 329.69M | 206.01M | EBIT |
| -314.77M | -237.21M | 216.51M | 204.41M | 156.03M | EBITDA |
| -204.15M | -192.16M | 272.20M | 241.62M | 169.62M | Net Income Common Stockholders |
| -162.86M | -146.40M | 158.52M | 153.46M | 118.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 625.61M | 760.59M | 886.49M | 722.98M | 594.12M | Total Assets |
| 1.36B | 1.49B | 1.54B | 1.32B | 1.01B | Total Debt |
| 60.74M | 77.38M | 82.26M | 36.41M | 6.10M | Net Debt |
| -95.58M | -55.94M | -304.28M | -439.73M | -588.01M | Total Liabilities |
| 304.47M | 335.78M | 307.63M | 292.84M | 175.03M | Stockholders Equity |
| 1.06B | 1.15B | 1.23B | 1.03B | 830.51M |
| Cash Flow | Free Cash Flow | |||
| -186.95M | -121.38M | 204.70M | 186.13M | 8.02M | Operating Cash Flow |
| -108.56M | -43.88M | 277.36M | 244.58M | 22.69M | Investing Cash Flow |
| 121.41M | -221.11M | -352.63M | -332.25M | -119.78M | Financing Cash Flow |
| 12.77M | 10.36M | -1.63M | -3.89M | 683.65M |
AbCellera Biologics Technical Analysis
Negative
2.53
Price Trends
2.87
Negative
2.88
Negative
2.84
Negative
Market Momentum
-0.11
Negative
43.03
Neutral
69.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABCL, the sentiment is Negative. The current price of 2.53 is above the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.87, and below the 200-day MA of 2.84, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $69.98B | 16.54 | 15.95% | 0.14% | 8.27% | 10.35% | |
75 Outperform | $134.36B | 282.07 | 2.28% | 2.85% | 6.16% | -91.54% | |
75 Outperform | $164.85B | 41.58 | 67.55% | 2.98% | 18.64% | -39.39% | |
67 Neutral | $20.37B | 12.74 | 10.36% | ― | -1.60% | 39.71% | |
64 Neutral | $128.47B | ― | -3.15% | ― | 11.64% | -114.72% | |
49 Neutral | $6.88B | 0.82 | -52.97% | 2.48% | 20.92% | 1.17% | |
44 Neutral | $753.91M | ― | -14.75% | ― | -24.17% | -9.24% |
* Healthcare Sector Average
Performance Comparison
ABCL
AbCellera Biologics
2.42
-2.11
-46.58%
AMGN
Amgen
305.71
29.80
10.80%
BIIB
Biogen
142.43
-73.20
-33.95%
GILD
Gilead Sciences
109.27
38.67
54.77%
REGN
Regeneron
640.14
-321.11
-33.41%
VRTX
Vertex Pharmaceuticals
500.28
82.27
19.68%
AbCellera Biologics Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -13.36% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlights AbCellera's successful transition to a clinical stage biotech with strong liquidity and strategic advancements in key programs and partnerships. However, the company faced challenges with declining revenue and a significant net loss, driven by high R&D expenses and reduced partnership activities.Highlights
Strong Liquidity Position
AbCellera closed the year with over $800 million in available liquidity, including approximately $650 million in cash and equivalents and roughly $190 million in available committed government funding.
Advancement of Key Programs
The company advanced two programs, ABCL635 and ABCL575, which are positioned for CTA filings in Q2 2025, signaling a successful transition to a clinical stage biotech.
New Headquarters and Manufacturing Facility
Completion of the move into new headquarters and progress towards bringing the clinical manufacturing facility online in 2025.
Strategic Partnership with AbbVie
Entered into a significant partnership with AbbVie based on the TCE platform, highlighting a meaningful collaboration in the TCE space.
Lowlights
Decline in Revenue
Revenue for 2024 was $29 million, a decrease from approximately $38 million in 2023, driven by a reduction in new partnership activities.
Net Loss for the Year
Reported a net loss of approximately $163 million for the year, compared to a loss of about $146 million the previous year.
High R&D Expenses
Research and development expenses remained high at approximately $167 million, reflecting ongoing program execution and platform development.
Company Guidance
During the call, AbCellera provided guidance with several key metrics for 2024 and beyond. The company achieved significant milestones, including advancing two programs, ABCL635 and ABCL575, positioned for CTA filings in Q2 2025. They reduced new discovery partnership activities, engaging in two new partnerships and expanding one collaboration, concluding the year with over $800 million in available liquidity. Their transition to a clinical stage biotech is underscored by plans to initiate Phase 1 clinical trials for ABCL635 and ABCL575, nominate additional development candidates, and complete platform investments by mid-2025. Financially, they reported approximately $29 million in revenue, a net loss of $163 million, and ended the year with over $650 million in cash and equivalents. Moving forward, AbCellera is focused on entering the clinic, with priorities including advancing their two lead programs and leveraging their TCE platform for future partnerships.AbCellera Biologics Corporate Events
Business Operations and StrategyFinancial Disclosures
AbCellera Biologics Reports 2024 Financial Results and Growth
Neutral
Feb 27, 2025
AbCellera Biologics reported its financial results for the year 2024, highlighting significant progress in transitioning to a clinical-stage biotech company. The company maintained a strong cash position with over $800 million in liquidity and is set to initiate Phase 1 clinical trials for its first two programs in 2025. Despite a net loss of $162.9 million, AbCellera advanced three additional molecules into the clinic, bringing the total to 16, and started nine new partner-initiated programs, reflecting its continued growth and strategic investments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.