AbCellera Biologics (ABCL) is back in focus after reporting encouraging Phase 2 results for ABCL635, a non hormonal antibody aimed at easing vasomotor symptoms in postmenopausal women.
AbCellera Biologics has been volatile around these clinical updates, with the 1-day share price return down 7.11% and the 7-day share price return down 3.64%. However, the 90-day share price return of 114.12% and year-to-date share price return of 231.49% indicate strong positive momentum.
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AbCellera Biologics has already delivered a very large rebound on the back of ABCL635, yet the shares still trade at a discount to the average analyst target. After a move like this, is the real upside already used up or not?
Most Popular Narrative: 34% Undervalued
AbCellera Biologics closed at $11.37, while the most widely followed narrative anchors fair value at $17.13. This leaves a sizeable valuation gap that depends on how its pipeline and partnerships develop.
The initiation of Phase I clinical trials for ABCL635 and ABCL575, with factors such as a unique dosing regimen and an improved safety profile for ABCL635, is described as positioning the company to address a market opportunity in an underserved area, with the potential to increase future revenue.
AbCellera's transition from a platform company to a clinical-stage biotech, along with the development of internal programs, is presented as a shift towards generating revenue from downstream milestone fees and royalty payments as new molecules reach the clinic.
See why 61 investors see AbCellera Biologics as 34% undervalued.
Result: Fair Value of $17.13 (UNDERVALUED)
Still, the story can change quickly if ABCL635 disappoints in longer term data or if high R&D spending continues to widen AbCellera Biologics' losses.
Find out about the key risks to this AbCellera Biologics narrative.
Next Steps
The tone of this AbCellera Biologics story appears mixed so far. Act while the data is fresh and evaluate the balance between potential upside and downside by checking the 1 key reward and 3 important warning signs.
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