AbCellera Biologics Inc. (ABCL): A Bull Case Theory

We came across a bullish thesis on AbCellera Biologics Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on ABCL. AbCellera Biologics Inc.'s share was trading at $5.15 as of July 21^st. ABCL’s trailing P/E was 19.92 according to Yahoo Finance.

Abcellera (ABCL) may be nearing an inflection point as ABCL575 and ABCL635 advance to clinical trials, signaling progress toward its ambition of becoming the “Palantir of biotech.” The company’s long-term value hinges on consistently bringing new molecules to the clinic and unlocking multiple applications per candidate, and these two programs mark a step in that direction. ABCL575 targets the OX-40 pathway, which regulates T-cell responses central to immunity.

Health Canada has approved clinical trials for ABCL575 in atopic dermatitis, a chronic condition often linked to persistent viral and bacterial infections, with additional potential in alopecia and other T-cell–mediated diseases. Success here could position Abcellera to address a broad range of chronic, autoimmune, and even oncological conditions by modulating T-cell activity.

Meanwhile, ABCL635 acts on the NK3R receptor in the brain’s infundibular nucleus, regulating endocrine homeostasis and thermoregulation to eliminate menopausal hot flashes. Given NK3R’s membership in the GPCR family, which underpins hundreds of physiological processes, clinical validation could unlock a wide array of therapeutic applications.

Both molecules stem from Abcellera’s core capability: designing precision-shaped molecules that perform targeted functions in the human proteome, validating its platform approach. Management has emphasized the operating leverage that successful trials could create, with streamlined development pathways enabling faster expansion into additional indications.

Despite its compelling technological foundation, Abcellera remains a highly speculative investment due to weak financials, though its experienced team and growing pipeline warrant close monitoring. Together with data-rich partners like Hims, Abcellera is building the infrastructure for precision, preventative medicine, with enormous, if still uncertain, long-term potential.

Previously, we covered a bullish thesis on AbCellera Biologics Inc. (ABCL) by Jack Prescott in January 2025, which highlighted its differentiated antibody discovery platform, strong financials, and asset-light model with top-tier partnerships. The stock has appreciated by about 75% as clinical progress fueled optimism. The thesis still stands, while Antonio Linares emphasizes an inflection point from ABCL575 and ABCL635, advancing to trials.

AbCellera Biologics Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held ABCL at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the potential of ABCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.