Key Highlights

  • Shares are trading up 8.32% at $12.05 versus a prior close of $11.12.
  • Third-quarter results are due after the close on November 9.
  • Consensus expects a loss of about $0.17 per share on Revenue near $8.4 million.

AbCellera (NASDAQ:ABCL) shares are trading up 8.32% at $12.05 today as investors position ahead of third-quarter Earnings due after the market close on November 9, with a conference call to follow. The stock is recovering from a roughly 7.7% decline in the prior session and sits within a 52-week range of $2.75 to $15.02, near its 50-day average of about $12.28 and well above its 200-day average of about $6.88.

AbCellera is a Vancouver-based clinical-stage biotechnology company founded in 2012 that uses an AI- and microfluidics-driven antibody discovery platform to find and develop antibody-based medicines in endocrinology, women's health, immunology and oncology. It is shifting from partnership-based discovery toward an internal pipeline led by ABCL635, a non-hormonal candidate for menopause-related vasomotor symptoms that has reported positive Phase 2 results.

Consensus Looks for a Smaller Loss and $8.4 Million in Revenue

Analysts expect a loss of about $0.17 per share on revenue of roughly $8.4 million, against a loss of $0.19 per share and $6.51 million of revenue a year ago. The company missed last quarter on revenue of $4.05 million against estimates of $7.85 million.

Investors will likely watch collaboration and milestone revenue, the pace of partnered programs and cash burn. Vertex Pharmaceuticals (NASDAQ:VRTX) reported a $28 million upfront payment to AbCellera under a July collaboration, and investors may look for how it is reflected in the results.

Analyst Coverage and Biotech Strength Add Support

Jefferies initiated coverage on October 30 with a $21 price target, when the stock traded near $12.27, and UBS has an $18 target. The average analyst target stands near $14.60. Biotech strength also helped, with the sector ETF XBI up roughly 2% in a mixed market.

AbCellera's internal pipeline also includes ABCL575, in Phase 1 for T-cell-mediated autoimmune conditions, and the company keeps collaborations with several large drugmakers, including Vertex. It has about 562 employees.

Pipeline Commentary Will Shape the Reaction on November 9

Management commentary on ABCL635, ABCL575 and clinical progress may draw as much focus as the headline numbers. With the shares up sharply and valuation rich after a rally this year, the report will show how much of the internal pipeline story is reflected in the price.