AbCellera Biologics Inc. (NASDAQ:ABCL) rallied for a third consecutive day on Monday to hit a new three-year high, after its drug candidate for hot flashes in menopausal women achieved strong clinical trial results, sparking long-term rosy growth prospects.
In intra-day trading, the stock surged to a record high of $10.01 before trimming gains to end the session just up by 34.78 percent at $9.34 apiece.
For illustration purposes only. Photo by MA Arkhipov on Shutterstock
83% Reduction in Hot Flashes
AbCellera Biologics Inc. (NASDAQ:ABCL) said that its treatment candidate, ABCL635, successfully reduced by 83 percent the hot flash episodes in 92 enrolled postmenopausal participants, having 8.8 fewer hot flashes per day, and significantly outperforming the 33 percent or 3.5 fewer daily hot flashes in the placebo group.
The therapy was also able to cut the severity of the episodes by 58 percent, versus 12 percent with the placebo.
Patients reported better sleep with ABCL635 and an overall feeling that their conditions improved.
ABCL635 currently holds a generally positive safety profile with the only adverse effects reported being headaches, fatigue, and reaction where the injection was given.
“These positive results represent a significant milestone for women’s health and for AbCellera,” AbCellera Biologics Inc. (NASDAQ:ABCL) Chief Medical Officer Sarah Noonberg said. “These data indicate that ABCL635 could offer menopausal women a well-tolerated, long-acting treatment that has the potential to markedly improve their quality of life.”
12M Potential Market
Known as Vasomotor Symptoms or VMS, hot flashes are characterized by intense feelings of heat that lead to sweating, chills, and interrupted sleep. It is the most common menopausal symptom impacting up to 80 percent of women, and is among the most common ones for which women seek treatment.
AbCellera Biologics Inc. (NASDAQ:ABCL) noted that approximately 12 million women in the US alone experience moderate to severe VMS, of which more than six million seek treatment, signaling a huge addressable market potential for the company.
Analysts Bullish
Prior to the announcement, AbCellera Biologics Inc. (NASDAQ:ABCL) earned optimistic coverage from three investment firms.
Last week, Cantor Fitzgerald raised its price target for the company to $12 from $11 previously, while Stifel lifted its price target to $9 from $8.
Piper Sandler, for its part, issued a buy recommendation for its stock.
Hedge Fund Sentiment
Existing institutional investors appeared to be more bullish about the stock, as evidenced by the increase in their positions despite the drop in the number of hedge funds.
Data from Insider Monkey showed that in the first quarter of the year, 20 hedge funds held positions in the company, down from 22 in the fourth quarter of 2025.
However, their combined holdings increased by 29 percent to $206.8 million from $160 million quarter-on-quarter, signaling that existing investors are betting more funds into its long-term growth prospects.
As the said data were released prior to strong clinical trial results, investors will likely be watching hedge fund sentiment in the second quarter to determine whether the positive developments have prompted more institutional buying.
A rise in both the number of funds holding the stock and their aggregate holdings could further strengthen the bullish case.
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