Q: Hello,
What do you think about Abcellera Biologics ? Is it a risky investment ? Is there any good chance to recover ?
Thanks
What do you think about Abcellera Biologics ? Is it a risky investment ? Is there any good chance to recover ?
Thanks
5i Research Answer:
First, we would absolutely call it risky. It is relatively small ($1.5B) and shares have lost 57% in the past year. It has $700M cash, but cash flow is now negative (-$120M in the past year). Sales have collapsed (~$500M to $62M expected next year) and it is losing money. Insiders own 21%. In the 2Q it missed revenue expectations, and there is limited visibility in the pipeline. Please see this link for comments on the quarter. While any beaten up stock can bounce, for now we would have no interest here.