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.

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.