AbCellera: The Bubble Proxy

With a Real Catalyst Inside

This will be a "best ideas only" bio substack providing actionable, highly digestible and high conviction value to investors focused on quality not quantity. Disclaimer: Nothing in this article (or substack) is considered investment advice and is solely the opinion of the author.

This is Part 1 of an ongoing series on biotech bubble proxies — names with the platform architecture, peak valuation history, and clinical de-risking profile to become generational multi-baggers when the next biotech cycle arrives.

I‘m going to keep this one short, because the thesis is relatively simple and the key data isn’t here yet. I will be adding this one to the watchlist (which is a list that continues to grow — yes, QURE, TWST, CLPT, CMPS, GHRS etc are keeping me busy these days) and I plan to update the list monthly. However, think of this as a name to have on the radar that works on its own merits, but works considerably better as the XBI gets bubbly again. If you’re looking for a clean proxy for the next biotech cycle with a real catalyst embedded inside it, AbCellera (NASDAQ: ABCL) belongs on your list.

There’s a version of this trade that works without a biotech bubble and there’s a better version that works with one. AbCellera is currently mispriced against both scenarios and the calendar is about to start clarifying which world we’re living in.