AbCellera Biologics Inc. (ABCL): A Bull Case Theory

We came across a bullish thesis on AbCellera Biologics Inc. on topsecretstocks’s Substack. In this article, we will summarize the bulls’ thesis on ABCL. AbCellera Biologics Inc.’s share was trading at $3.6200 as of January 21st. ABCL’s trailing P/E was 19.92 according to Yahoo Finance.

AbCellera Biologics Inc. engages in discovering and developing antibody-based medicines for indications with unmet medical need in the United States. ABCL is transitioning into a critical maturity phase as it evolves from a service-oriented antibody discovery platform into a clinical-stage biotech with proprietary drug candidates. Historically known for its AI-powered discovery engine and its rapid COVID-19 antibody work with Eli Lilly, AbCellera spent 2024 and 2025 deliberately pivoting toward internal and co-developed programs that can generate outsized long-term value.

While the stock has collapsed more than 90% from its post-IPO highs and now trades near $4.50, this prolonged bottoming phase reflects skepticism about whether the platform can consistently translate discovery into drugs rather than a deterioration of the underlying assets. The company enters this phase with a strong balance sheet, holding roughly $520 million in cash and approximately $680 million in total liquidity, providing ample runway to execute its strategy without near-term financing risk.

The bullish investment case rests on two reinforcing pillars. First is AbCellera’s internal pipeline, led by ABCL635 and ABCL575, both Phase 1 assets targeting large, multi-billion-dollar markets with differentiated dosing profiles and first- or best-in-class potential. Initial clinical readouts expected in 2026 represent meaningful inflection points that could validate the company’s AI-driven approach and materially rerate the stock.

Second is a diversified royalty portfolio spanning more than 100 partnered programs, 18 of which are already in the clinic, providing embedded optionality and long-duration upside with limited incremental capital. Additional non-drug royalties, such as the Bruker Beacon settlement, further stabilize cash flows.

Despite valuation challenges typical of early clinical-stage biotech, AbCellera’s combination of deep liquidity, validated technology, expanding internal pipeline, and multiple upcoming catalysts creates a compelling asymmetric opportunity, where clinical success could drive substantial upside from depressed levels.

Previously, we covered a bullish thesis on AbCellera Biologics Inc. (ABCL) by Jack Prescott in January 2025, which highlighted the company’s AI-powered antibody discovery platform, strategic partnerships, and strong cash position of over $700 million. ABCL’s stock price has appreciated by approximately 23.12% since our coverage due to confidence in its platform and financial strength. topsecretstocks shares a similar perspective but emphasizes AbCellera’s shift to proprietary drug development and upcoming Phase 1 readouts as key growth catalysts.

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Disclosure: None.