• Company Timeline: AbCellera has demonstrated consistent growth and has generated positive operating cash flow cumulatively since its inception in 2012.AbCellera has filed its preliminary prospectus for its IPO; shares have yet to be priced but the company is looking to raise a proposed ~$200mn
  • AbCellera is a Vancouver-based AI-powered drug discovery platform with backing from Peter Thiel, known for its leading platform and COVID-19 treatment in partnership with Eli Lilly
  • Its most successful antibody (LY-Cov555)/bamlanivimab has recently been granted emergency approval by Health Canada and the FDA - expected to receive >$100mn in royalties
  • Its unique, proprietary business model and experienced management & board positions AbCellera for long-term success
  • We see AbCellera as a play on LY-Cov555 success and the near-term delivery of other antibody candidates, with the downside of potential headline risk

The Vancouver-based AI drug discovery platform that has caught the eye of investors including Peter Thiel for its leading platform and the development of its COVID-19 treatment with Eli Lilly (NYSE: LLY), AbCellera Biologics Inc. (the “Company” or “AbCellera”) is set to IPO (NASDAQ: ABCL) with Credit Suisse as lead left underwriter (prospectus filed November 20, 2020).


Here’s all you need to know about AbCellera and its proposed IPO.

As part of our multi-part series detailing all you need to know about AbCellera and its IPO, part I of our analysis will focus on providing an overview of AbCellera's business model, competitive landscape, key financial metrics, IPO details, and our investment thesis. These are summarized in the outline below. Part II will dive deeper into the valuation, existing contracts, pro-forma financials, capital structure, and go-forward expectations for the business.


Outline

Business Model
Recent Developments / Company Timeline
Management Team & Board Overview
Financial Analysis
Competitive Landscape
IPO Details

The Bottom Line


AbCellera Business Model

AbCellera provides drug developers with a platform to find antibody candidates for drug research. Its AI-powered full-stack platform searches and analyzes real-world immune system databases to find leads that are subsequently used for clinical R&D. Unlike its competitors, AbCellera operates along the entire value chain from sourcing to the delivery of antibody candidates; this solves the existing problem of either inadequate/outdated discovery approaches or using multiple fragmented solutions (costly and inefficient).
It is important to note what AbCellera is not - a drug developer. Instead, Abcellera lends their technology to pharmaceutical companies, both large and small, in…

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