AbCellera Biologics (NASDAQ:ABCL) has seen its stock price jump by 64 percent week-on-week, making it the top-performing mid-cap stock in the US market last week, thanks to strong clinical trial results from its drug candidate for hot flashes in menopausal women.
On Friday alone, the stock climbed to its highest price in three years of $11.50 before trimming gains to end the session just up by 3.74 percent at $11.38 apiece.
The overall rally can be primarily attributed to its treatment candidate, ABCL635, which successfully reduced hot flash episodes by 83 percent in 92 enrolled postmenopausal women during a phase 2 trial.
Photo by Tima Miroshnichenko on Pexels
ABCL635 was said to have cut the daily hot flash episodes by 8.8 times, significantly outperforming the 33 percent reduction or 3.5 fewer daily hot flashes in participants in the placebo group.
The therapy was able to cut the severity of the episodes by 58 percent, versus 12 percent with the placebo.
More importantly, 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.
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) said that approximately 12 million women in the US alone experience moderate to severe VMS, of which more than six million seek treatment, signaling the huge addressable market potential for ABCL635 if and when it passes all regulatory approvals for commercialization.
Analysts Bullish
Several analysts have already posted a bullish stance on shares of AbCellera Biologics Inc. (NASDAQ:ABCL) stock before and after the results were announced.
Following the results, Truist Securities raised its price target for the company to $30 from $12 previously, while reiterating a buy recommendation, after the four-week data exceeded expectations.
Truist now estimates peak risk-adjusted sales to $1.1 billion from $641 million prior.
Meanwhile, Cantor Fitzgerald also 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.
Strong Hedge Fund Conviction
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 on its long-term growth prospects.
Among its largest hedge fund investors, Baker Bros. Advisors is the largest by far, holding $259 million in shares. Driehaus Capital followed with $22 million in holdings, while Tudor Investment Corp. came third with $16.2 million.
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