AbCellera (ABCL, Financial) has secured a significant legal win as the United States Court of Appeals for the Federal Circuit upheld the validity of its U.S. Patent No. 10,087,408 through a Rule 36 Order. This patent pertains to microfluidic devices that facilitate cell culture and recovery. The challenge originated from Bruker Cellular Analysis, formerly known as Berkeley Lights and a part of Bruker Corporation, which argued that the patent was invalid due to anticipation and obviousness based on prior art. However, these arguments were dismissed by the U.S. Patent Trial and Appeal Board and now confirmed by the Federal Circuit.
This patent is a crucial element in ongoing multi-patent infringement litigation between AbCellera and Bruker, which is being heard in the U.S. District Court for the Northern District of California. AbCellera remains committed to protecting its intellectual property as it prepares to address the infringement claims in the district court proceedings.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for AbCellera Biologics Inc (ABCL, Financial) is $11.71 with a high estimate of $28.00 and a low estimate of $5.00. The average target implies an upside of 467.28% from the current price of $2.07. More detailed estimate data can be found on the AbCellera Biologics Inc (ABCL) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, AbCellera Biologics Inc's (ABCL, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AbCellera Biologics Inc (ABCL, Financial) in one year is $1.12, suggesting a downside of 45.76% from the current price of $2.065. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AbCellera Biologics Inc (ABCL) Summary page.
ABCL Key Business Developments
Release Date: May 08, 2025
- Revenue: $4 million for the quarter, down from $10 million in the same quarter of 2024.
- Net Loss: Approximately $46 million for the quarter, compared to a loss of around $41 million in the same quarter last year.
- Earnings Per Share: Loss of $0.15 per share on a basic and diluted basis.
- Research and Development Expenses: Approximately $43 million, $3 million more than last year.
- Sales and Marketing Expenses: About $3 million, a modest reduction relative to the same quarter last year.
- General and Administrative Expenses: Approximately $16 million, compared to roughly $17 million in Q1 of 2024.
- Cash and Equivalents: Over $630 million at the end of the quarter.
- Total Available Liquidity: Approximately $810 million, including unused government funding.
- Cash Used in Operating Activities: Approximately $12 million for Q1 of 2025.
- Investment Activities: Net $17 million, mostly in property, plant, and equipment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AbCellera Biologics Inc (ABCL, Financial) is advancing its first-in-class therapeutic antibody, ABCL635, for non-hormonal treatment of vasomotor symptoms associated with menopause, targeting a significant unmet medical need.
- The company has a strong liquidity position with approximately $630 million in cash and equivalents, and $180 million in available committed government funding.
- ABCL635 has the potential to be a first-in-class antibody therapy in the NK3R class, with a market opportunity estimated to reach over $2 billion in annual sales.
- The company is transitioning from a platform company to a clinical-stage biotech, with two programs, ABCL635 and ABCL575, nearing clinical trials.
- AbCellera Biologics Inc (ABCL) is making significant investments in building clinical manufacturing capabilities, expected to be operational later this year.
Negative Points
- Revenue for the quarter was about $4 million, a significant decrease from $10 million in the same quarter of 2024, primarily due to a focus on internal and co-development programs.
- The company reported a net loss of approximately $46 million for the quarter, compared to a loss of around $41 million in the same quarter last year.
- There were no new molecules advancing into the clinic in the quarter, maintaining a cumulative total of 16 molecules to have reached the clinic.
- The development of four Trianni licensed molecules by Novarock has been paused, potentially impacting future revenue from downstream milestone fees and royalty payments.
- Research and development expenses increased to approximately $43 million, driven by investments in internal and co-development programs, contributing to the overall net loss.
