On this page of StockholderLetter.com we present the latest annual shareholder letter from AbCellera Biologics Inc. — ticker symbol ABCL. Reading current and past ABCL letters to shareholders can bring important insights into the investment thesis.

Dear Fellow Shareholders, In recent years I have opted to keep this letter to a brief review of the past year and current corporate priorities. I may well return to this in the future. However, with the successful completion of our strategic shift from a partnership business to internal drug development, AbCellera s profile and prospects have changed markedly over the past year. At this moment it feels appropriate to step back and share my perspective on our current situation and our future direction. AbCellera s vision is to build a global biotech company that can repeatedly discover, develop, and commercialize breakthrough medicines for patients worldwide. Inventing a breakthrough medicine is arguably the hardest product development cycle in any industry. Perhaps the only thing more difficult is building a company that can do this repeatedly over decades. There are very few examples in our industry, and for every great success story, for every Regeneron or Alnylam or Vertex, there are hundreds, perhaps even thousands, that have tried and failed. Peter Thiel, who served as a director during our first years as a public company, famously said each great company is unique; to attempt to copy is to misunderstand the example. Perhaps this is doubly true in biotech. While specifics of success are idiosyncratic, there are common themes to the examples above: strategy built on rigorous science; durable competitive advantage in a platform technology; and a leadership team with the endurance and resourcefulness to sustain the effort over two decades or more. Obviously, AbCellera is a very long way from the companies mentioned above; they are named as aspirational examples, not to invite comparison. If AbCellera is to get there, we will need to find our own way. At AbCellera we run our business with an emphasis on disciplined capital allocation and longterm thinking, and with a foundation of scientific and technological excellence. If we stay this course, I believe AbCellera can one day join the ranks of the iconic companies that are admired by their peers and that have delivered enormous value to patients, to society, and to their shareholders. That is the future we are after. From lofty visions to gritty reality. As I write this, AbCellera s shares are trading at roughly $4. That s up more than 60% in the past year, but 80% below our IPO pricing in 2020. In 5 years of leading a public company I have learned a lot. With the benefit of hindsight, I can see that I ve made my share of mistakes and there are certainly things I would do differently. However, I doubt these changes would have done much to avoid the decline in share price. We went public during the COVID-19 pandemic, at the all-time high of biotech sentiment. Like many small biotechs, we have since faced a steep and prolonged downdraft in the market. At the same time, royalty revenues from our two COVID-19 antibodies abruptly ended in 2023. While we expected this and characterized these revenues as temporary non-dilutive funding, the market rightly doesn t forgive a 90+% decline in revenue and profitability. Finally, as generalist investors exited biotech, our focus on platform development and discovery partnerships fell quickly out of favor. Shareholders that have been with us through this entire journey will have felt the pain. As the largest shareholder, I have the majority of my personal wealth in AbCellera and have travelled this path with you all.
In contrast to our stock's performance, I believe shareholders should feel buoyant about AbCellera s progress, and perhaps even better about our potential for value generation over the next few years. Since 2020 AbCellera has brought in approximately $1.4B in non-dilutive funding to build the business. This includes roughly $1B in royalties from our COVID-19 products, and nearly $400M in funding agreements with the Governments of Canada and British Columbia. This capital has been put to work in significant long term investments to build our company and business in building facilities, in developing technologies, in expanding our teams, and, more recently, in advancing our proprietary therapeutic programs. Over this period of intense investment, AbCellera has not needed to raise equity financing, and we still remain in a strong liquidity position today. As of the end of 2025, we have approximately $700M in available liquidity, including ~$550M in cash and equivalents and ~$150M in unused commitments from the governments of Canada and British Columbia. With a projected operating cash usage of ~$120M / year, we have more than three years of runway. Over the last five years, we have been steadily investing in the foundations of our business. We grew our team from ~150 to ~550 employees, with the center of mass at our headquarters in Vancouver, complemented by a high-performance R&D group in Sydney, Australia and a growing clinical operations team in Montreal. From late 2023 onward, following a period of rapid growth, our team building has prioritized leadership development and high performance standards, both at the individual and team level. Last year we recruited Sarah Noonberg as our Chief Medical Officer. After a year of working closely with Sarah, I am confident we have found a first-rate executive with precisely the experience and leadership needed to successfully execute on our strategy. At the end of 2025, we hit a major milestone in completing our clinical manufacturing facility, on time and on budget. This massive greenfield project, the first of its kind in Canada, began in 2021 with support from the Canadian government. Along with our lab office facility, completed in 2025, we have successfully executed two large infrastructure projects, totaling more than 300,000 square feet. We now own and control these facilities, which will be critical for supporting our operations over many years. With internal clinical manufacturing now online, we have fully integrated capabilities for developing antibody therapeutics. This is the final piece that completes a platform build-out that has taken over a decade. Our antibody platform integrates powerful, proprietary technology and know-how developed over years of partnerships that have pushed us to solve some of the most important and challenging problems in the industry. Through the partnership business, we have worked on more than 100 therapeutic discovery programs, and we have accumulated a large portfolio of passive royalty positions in the resulting programs. We get little value for this in the market today, but I believe this is a significant financial asset that will mature and be recognized over time. In hindsight, I feel the most valuable outcome of the partnership business was that it forced us to build a formidable competitive advantage in specific high-value areas of antibody therapeutics
specifically in areas of GPCRs, ion channels, ADCs, and multispecifics. Taken together, our proprietary technologies, research facilities, manufacturing capabilities, and R&D teams constitute a powerful platform that I believe is unprecedented in the industry for a company at our stage. In late 2023, we turned away from the high-volume partnership business and decided to focus on the use of our platform for the development of our own proprietary pipeline. Since then, we have continued to work on existing commitments to multi-year discovery partnerships. This work is largely complete. As of today, we have effectively exited this business, and we will not actively pursue new discovery deals of this type. We may enter more substantial partnerships or codevelopment deals, as is typical for biotech companies of our size. As an example, last year we signed a collaboration with AbbVie related to our TCE platform, and this is an area where future partnerships are possible. In 2023, I had several conversations with investors who expressed skepticism about our ability to transition to internal drug development. This is understandable, as many companies have tried and failed. The challenge is to effect big changes in company structure, mindset, and systems, and to redefine a company s identity, both with employees and investors, all while preserving corporate culture and engagement. Our transition included profound changes within the company that are unlikely apparent from the outside. While keeping total company headcount essentially flat, we have grown by nearly 170 people in development, building up new capabilities in translational science, manufacturing, and clinical development. We have created a streamlined early discovery team and built up our biology and protein science groups. At the same time, we have significantly reduced our SG&A teams to reflect the needs of a company focused on proprietary therapeutic development programs. The result is a team that is confident, strong, and focused. Today the AbCellera team has been reshaped for the mission of developing our own drugs. I want to acknowledge our leadership team for so deftly navigating this challenging period. With AbCellera s transition complete, the important strategic questions are almost entirely about portfolio management. Which opportunities should we pursue? How do we balance investments in our clinical programs against preclinical R&D needed to set up future opportunities? When do we double down? When do we fold? These are questions of capital allocation that need to be answered in the face of the constant scientific, commercial, and competitive risks that define drug development. On past earnings calls I have described our framework for answering these questions. We assess each opportunity for i) high scientific conviction, ii) a clear thesis for differentiation, iii) a clear unmet medical need resulting in a large potential market opportunity, and iv) the potential to quickly and efficiently build conviction in clinical development. In addition - and in recognition of the increasingly competitive nature of drug development - we will avoid pursuing opportunities that are too obvious and that have low technical barriers to entry. We are instead searching for opportunities where our advantages in discovery will create white space with low direct competition. To support this strategy, we maintain an unusually large preclinical portfolio
 • shareholder letter icon 4/29/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 ABCL Stockholder Letter
 • stockholder letter icon 4/29/2024 ABCL Stockholder Letter
 • stockholder letter icon 4/29/2025 ABCL Stockholder Letter
 • stockholder letter icon More "Biotechnology" Category Stockholder Letters
 • Benford's Law Stocks icon ABCL Benford's Law Stock Score = 96


ABCL Shareholder/Stockholder Letter Transcript:



Dear Fellow Shareholders,
In recent years I have opted to keep this letter to a brief review of the past year and current
corporate priorities. I may well return to this in the future. However, with the successful
completion of our strategic shift from a partnership business to internal drug development,
AbCellera   s profile and prospects have changed markedly over the past year. At this moment it
feels appropriate to step back and share my perspective on our current situation and our future
direction.
AbCellera   s vision is to build a global biotech company that can repeatedly discover, develop,
and commercialize breakthrough medicines for patients worldwide. Inventing a breakthrough
medicine is arguably the hardest product development cycle in any industry. Perhaps the only
thing more difficult is building a company that can do this repeatedly over decades. There are
very few examples in our industry, and for every great success story, for every Regeneron or
Alnylam or Vertex, there are hundreds, perhaps even thousands, that have tried and failed.
Peter Thiel, who served as a director during our first years as a public company, famously said
each great company is unique; to attempt to copy is to misunderstand the example. Perhaps this
is doubly true in biotech. While specifics of success are idiosyncratic, there are common themes
to the examples above: strategy built on rigorous science; durable competitive advantage in a
platform technology; and a leadership team with the endurance and resourcefulness to sustain the
effort over two decades or more. Obviously, AbCellera is a very long way from the companies
mentioned above; they are named as aspirational examples, not to invite comparison. If
AbCellera is to get there, we will need to find our own way.
At AbCellera we run our business with an emphasis on disciplined capital allocation and longterm thinking, and with a foundation of scientific and technological excellence. If we stay this
course, I believe AbCellera can one day join the ranks of the iconic companies that are admired
by their peers and that have delivered enormous value to patients, to society, and to their
shareholders. That is the future we are after.
From lofty visions to gritty reality. As I write this, AbCellera   s shares are trading at roughly $4.
That   s up more than 60% in the past year, but 80% below our IPO pricing in 2020. In 5    years
of leading a public company I have learned a lot. With the benefit of hindsight, I can see that I   ve
made my share of mistakes and there are certainly things I would do differently. However, I
doubt these changes would have done much to avoid the decline in share price.
We went public during the COVID-19 pandemic, at the all-time high of biotech sentiment. Like
many small biotechs, we have since faced a steep and prolonged downdraft in the market. At the
same time, royalty revenues from our two COVID-19 antibodies abruptly ended in 2023. While
we expected this and characterized these revenues as temporary    non-dilutive funding,    the
market rightly doesn   t forgive a 90+% decline in revenue and profitability. Finally, as generalist
investors exited biotech, our focus on platform development and discovery partnerships fell
quickly out of favor. Shareholders that have been with us through this entire journey will have
felt the pain. As the largest shareholder, I have the majority of my personal wealth in AbCellera
and have travelled this path with you all.

In contrast to our stock's performance, I believe shareholders should feel buoyant about
AbCellera   s progress, and perhaps even better about our potential for value generation over the
next few years.
Since 2020 AbCellera has brought in approximately $1.4B in non-dilutive funding to build the
business. This includes roughly $1B in royalties from our COVID-19 products, and nearly
$400M in funding agreements with the Governments of Canada and British Columbia. This
capital has been put to work in significant long term investments to build our company and
business   in building facilities, in developing technologies, in expanding our teams, and, more
recently, in advancing our proprietary therapeutic programs. Over this period of intense
investment, AbCellera has not needed to raise equity financing, and we still remain in a strong
liquidity position today. As of the end of 2025, we have approximately $700M in available
liquidity, including ~$550M in cash and equivalents and ~$150M in unused commitments from
the governments of Canada and British Columbia. With a projected operating cash usage of
~$120M / year, we have more than three years of runway.
Over the last five years, we have been steadily investing in the foundations of our business. We
grew our team from ~150 to ~550 employees, with the center of mass at our headquarters in
Vancouver, complemented by a high-performance R&D group in Sydney, Australia and a
growing clinical operations team in Montreal. From late 2023 onward, following a period of
rapid growth, our team building has prioritized leadership development and high performance
standards, both at the individual and team level. Last year we recruited Sarah Noonberg as our
Chief Medical Officer. After a year of working closely with Sarah, I am confident we have found
a first-rate executive with precisely the experience and leadership needed to successfully execute
on our strategy.
At the end of 2025, we hit a major milestone in completing our clinical manufacturing facility,
on time and on budget. This massive greenfield project, the first of its kind in Canada, began in
2021 with support from the Canadian government. Along with our lab office facility, completed
in 2025, we have successfully executed two large infrastructure projects, totaling more than
300,000 square feet. We now own and control these facilities, which will be critical for
supporting our operations over many years.
With internal clinical manufacturing now online, we have fully integrated capabilities for
developing antibody therapeutics. This is the final piece that completes a platform build-out that
has taken over a decade. Our antibody platform integrates powerful, proprietary technology and
know-how developed over years of partnerships that have pushed us to solve some of the most
important and challenging problems in the industry.
Through the partnership business, we have worked on more than 100 therapeutic discovery
programs, and we have accumulated a large portfolio of passive royalty positions in the resulting
programs. We get little value for this in the market today, but I believe this is a significant
financial asset that will mature and be recognized over time.
In hindsight, I feel the most valuable outcome of the partnership business was that it forced us to
build a formidable competitive advantage in specific high-value areas of antibody therapeutics   

specifically in areas of GPCRs, ion channels, ADCs, and multispecifics. Taken together, our
proprietary technologies, research facilities, manufacturing capabilities, and R&D teams
constitute a powerful platform that I believe is unprecedented in the industry for a company at
our stage.
In late 2023, we turned away from the high-volume partnership business and decided to focus on
the use of our platform for the development of our own proprietary pipeline. Since then, we have
continued to work on existing commitments to multi-year discovery partnerships. This work is
largely complete. As of today, we have effectively exited this business, and we will not actively
pursue new discovery deals of this type. We may enter more substantial partnerships or codevelopment deals, as is typical for biotech companies of our size. As an example, last year we
signed a collaboration with AbbVie related to our TCE platform, and this is an area where future
partnerships are possible.
In 2023, I had several conversations with investors who expressed skepticism about our ability to
transition to internal drug development. This is understandable, as many companies have tried
and failed. The challenge is to effect big changes in company structure, mindset, and systems,
and to redefine a company   s identity, both with employees and investors, all while preserving
corporate culture and engagement. Our transition included profound changes within the company
that are unlikely apparent from the outside. While keeping total company headcount essentially
flat, we have grown by nearly 170 people in development, building up new capabilities in
translational science, manufacturing, and clinical development. We have created a streamlined
early discovery team and built up our biology and protein science groups. At the same time, we
have significantly reduced our SG&A teams to reflect the needs of a company focused on
proprietary therapeutic development programs. The result is a team that is confident, strong, and
focused. Today the AbCellera team has been reshaped for the mission of developing our own
drugs. I want to acknowledge our leadership team for so deftly navigating this challenging
period.
With AbCellera   s transition complete, the important strategic questions are almost entirely about
portfolio management. Which opportunities should we pursue? How do we balance investments
in our clinical programs against preclinical R&D needed to set up future opportunities? When do
we double down? When do we fold? These are questions of capital allocation that need to be
answered in the face of the constant scientific, commercial, and competitive risks that define
drug development.
On past earnings calls I have described our framework for answering these questions. We assess
each opportunity for i) high scientific conviction, ii) a clear thesis for differentiation, iii) a clear
unmet medical need resulting in a large potential market opportunity, and iv) the potential to
quickly and efficiently build conviction in clinical development. In addition - and in recognition
of the increasingly competitive nature of drug development - we will avoid pursuing
opportunities that are too obvious and that have low technical barriers to entry. We are instead
searching for opportunities where our advantages in discovery will create white space with low
direct competition. To support this strategy, we maintain an unusually large preclinical portfolio


shareholder letter icon 4/29/2026 Letter Continued (Full PDF)
 

ABCL Stockholder/Shareholder Letter (AbCellera Biologics Inc.) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.