AbCellera Biologics Inc.

What they do

AbCellera operates a vertically integrated antibody drug platform that discovers and develops first-in-class antibody medicines, targeting challenging proteins such as GPCRs and ion channels. It historically generated revenue by discovering antibodies for partners, but has shifted to building an internal pipeline of owned drug candidates. The company also continues to sign collaborations with pharmaceutical partners, leveraging its T-cell engager platform and other capabilities for upfront fees, milestones, and royalties.

Revenue drivers

• Partner collaborations — Revenue from upfront payments and milestones from partnerships, such as the Jazz Pharmaceuticals deal ($84M total upfront) and Vertex collaboration ($28M upfront).
• Milestone and royalty payments — Potential future payments tied to the clinical and commercial success of partnered programs. AbCellera holds downstream stakes in 12 clinic-stage molecules, though these are not yet contributing materially.
• Discovery and development services — Legacy revenue stream for antibody discovery and preclinical development under partner contracts, which has declined as focus shifted to internal programs. Quarterly revenue was $4.1M in Q2 2026.

Recent performance

For Q2 2026, AbCellera reported revenue of $4.1M, down from $17.1M in Q2 2025. Net loss widened to $55.4M ($(0.18) per share) from a loss of $34.7M ($(0.12) per share) in the prior-year quarter. R&D expenses increased to $46.0M from $39.2M, while SG&A decreased to $13.9M from $22.0M. For the full year 2025, revenue was $75.1M with a net loss of $146.4M. The company ended Q2 2026 with over $565M in total cash and marketable securities.

Strategy

AbCellera's stated strategy is to leverage its antibody platform to build an internal pipeline of high-value drug candidates across endocrinology, women's health, immunology, and oncology. The company is investing in clinical development, including planned Phase 1/2 trials for ABCL688 and ABCL386 in 2027, and has opened a clinical manufacturing facility to support its integrated model. Management also continues to pursue partner collaborations, such as the Jazz and Vertex deals, to generate upfront cash and long-term royalties while advancing internal programs.

Risks

• Clinical development risk — ABCL635 and ABCL575 are early-stage (Phase 1/2 and Phase 1) and could fail or face delays, with no marketed drugs yet.
• Revenue volatility — Revenue fluctuates significantly due to timing of partner milestones and upfront payments, making quarterly results unpredictable and not indicative of future performance.
• Cash burn and capital needs — The company expects continued losses and negative operating cash flow; operating cash flow was -$131.3M in 2025, and funding may be needed to support the pipeline.
• Partner dependence — Partners have discretion over program advancement and announcements; reduced partner-led programs (from 44 to 35 in H1 2026) could affect future milestones and royalties.

Outlook

Management expects to announce top-line data from the ABCL635 Phase 2 trial in August 2026, and for the ABCL575 Phase 1 trial in Q4 2026. They anticipate IND/CTA submissions for ABCL688 and ABCL386 in 2027, with Phase 1/2 trials to follow. With over $675M in total liquidity, including $110M in non-dilutive government funding, the company believes it can fund operations beyond the next three years. Near-term losses are expected as internal pipeline costs grow, with profitability dependent on future out-licensing, milestones, and royalties.