Leerink Partners assumes coverage on AbCellera stock with Outperform rating

Investing.com - Leerink Partners has assumed coverage on AbCellera Biologics (NASDAQ:ABCL) with an Outperform rating and a $5.00 price target, according to a research note released Monday. The stock has shown strong momentum recently, gaining nearly 11% in the past week and trading close to its 52-week high of $4.08. According to InvestingPro data, the company maintains robust liquidity with a current ratio exceeding 10x.

The firm’s positive outlook stems from AbCellera’s strategic pivot from being primarily an antibody discovery platform company to developing its own internal pipeline of therapeutic candidates.

Leerink specifically highlighted two upcoming programs: ABCL575, an OX40L antagonist targeting atopic dermatitis, and ABCL635, an NK3R antagonist for vasomotor symptoms. Both candidates are scheduled to enter Phase 1 clinical trials in the third quarter of 2025, with data expected in 2026.

The research firm noted that ABCL575’s extended half-life positions it favorably compared to competing OX40L monoclonal antibodies, while ABCL635 targets the vasomotor symptoms market, which Leerink believes is currently underappreciated by investors.

Leerink also pointed to AbCellera’s existing antibody discovery collaborations as potential drivers of longer-term value through milestone payments and royalties as the company leverages its antibody capabilities toward a wholly-owned pipeline focused on validated targets.

In other recent news, AbCellera Biologics Inc. has announced several key developments. The company reported that its shareholders approved the election of two directors and the appointment of KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025. Additionally, AbCellera received authorization from Health Canada to commence a Phase 1 clinical trial for ABCL575, an investigational antibody for treating atopic dermatitis. This trial is set to begin in the third quarter of 2025 and will evaluate the drug’s safety and pharmacokinetics.

Moreover, AbCellera plans to start a Phase 1 trial for ABCL635, a treatment for menopause-related vasomotor symptoms, following Health Canada’s approval. Truist Securities recently adjusted its price target for AbCellera shares to $10.00, maintaining a Buy rating, reflecting optimism about the company’s clinical-stage developments. In legal matters, AbCellera secured a favorable ruling from the United States Court of Appeals for the Federal Circuit, which upheld the validity of its patent on microfluidic devices.

These recent developments highlight AbCellera’s continued progress in advancing its pipeline and protecting its intellectual property. The company’s strategic focus on clinical trials and innovation remains a central theme as it moves forward.

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