We came across a bullish thesis on AbCellera Biologics Inc. (ABCL) on Investment Ides by Antonio’s Substack. In this article, we will summarize the bulls’ thesis on ABCL. AbCellera Biologics Inc. (ABCL)’s share was trading at $2.14 as of 2nd June. ABCL’s trailing P/E was 19.92 according to Yahoo Finance.
A biopharmaceutical facility with technicians working on a manufacturing line of treatments and preventions.
Abcellera is approaching a potential inflection point as it advances two new molecules—ABCL575 and ABCL635—into clinical trials, signaling its progress from a platform with promise to one capable of solving real-world medical problems. ABCL575 targets the OX-40 pathway, a critical immune regulator, and is being trialed for atopic dermatitis, with broader implications for treating alopecia and other chronic conditions that often stem from underlying viral or bacterial infections.
CEO Carl Hansen noted that the same mechanism might have therapeutic value across autoimmune disorders, cancers, and infectious diseases, making OX-40 a cornerstone of Abcellera’s ambitions. Meanwhile, ABCL635 targets the NK3R receptor in the brain’s infundibular nucleus, effectively regulating endocrine balance and alleviating menopausal hot flashes. Since NK3R is part of the expansive GPCR receptor family, success here could validate Abcellera’s ability to target a vast range of physiological functions, from hormone control to mood and sensory regulation. Both candidates exemplify the same core strength of Abcellera’s platform: designing molecules with highly specific shapes to achieve precise biological effects. This shape-function relationship underpins the company’s long-term vision of building a foundational biotech platform capable of producing tailored therapeutics.
Although Abcellera’s current financials remain weak, reflecting high risk, clinical success would dramatically increase its operating leverage and establish its relevance across a wide therapeutic spectrum. The platform’s success could mirror and complement businesses like Hims, where data on bodily processes meets Abcellera’s molecular solutions. While early in its journey, Abcellera’s emerging capabilities suggest transformative potential if early trials succeed.
Previously, we have covered ABCL in January 2025 wherein we summarized a bullish thesis by Jack Prescott on Twitter. The author highlighted the company’s differentiated antibody discovery platform, which used microfluidics and AI to support an asset-light, partnership-driven model with firms like Eli Lilly and Moderna. Despite setbacks post-COVID, AbCellera maintained strong financials with $700M in cash, minimal debt, and over 200 pipeline programs, while its new GMP facility and government support positioned it for future clinical and commercial growth. Unfortunately, his thesis did not play out and the stock is down 26% since our coverage. However, due to the company’s recent advances in the clinical trial process of two new molecules, we are optimistic about Antonio’s thesis.
Story Continues
