Investing in basically robust shares which are flying underneath the radar ought to allow you to generate market-beating returns over time. Among the best Canadian shares that you could be not have heard of is AbCellera Biologics (NASDAQ:ABCL), which trades on a U.S. trade.

Valued at a market cap of US$1.17 billion, ABCL inventory went public in late 2020 and presently trades virtually 94% from all-time highs. AbCellera Biologics discovers and develops antibody-based medicines for unmet medical wants utilizing its proprietary antibody discovery platform.

The Vancouver-based firm’s pipeline consists of ABCL635 for metabolic and endocrine circumstances, in addition to ABCL575 for autoimmune problems resembling atopic dermatitis.

AbCellera maintains strategic analysis collaborations and licensing partnerships with main pharmaceutical firms, together with Eli Lilly, Biogen, and Viking International Buyers.

Is that this Canadian inventory a superb purchase proper now?

AbCellera Biologics reported third-quarter outcomes, which highlighted the completion of its transformation from a platform firm to a clinical-stage biotechnology agency. Notably, phase-one trials for lead candidates ABCL635 and ABCL575 are on schedule with readouts anticipated subsequent 12 months.

The Vancouver-based antibody discovery firm posted quarterly income of US$9 million, predominantly from analysis charges on partnered packages, in contrast with US$7 million within the prior-year interval.

Its web loss widened to US$57 million, or US$0.19 per share, from US$51 million within the third quarter of 2024, as analysis and growth bills elevated by US$14 million 12 months over 12 months to US$55 million, pushed by inside pipeline investments.

AbCellera ended the third quarter (Q3) with US$680 million in complete liquidity, comprising US$520 million in money and US$160 million in unused dedicated authorities funding from Canada’s Strategic Innovation Fund and the Province of British Columbia.

Over the past three quarters, it has spent US$97 million to assist its operations and allotted US$49 million in the direction of investments in establishing medical manufacturing capabilities, which are actually considerably full. AbCellera holds a further US$413 million in short-term marketable securities as a part of its treasury administration technique.

The corporate appointed Dr. Sarah Noonberg as its chief medical officer. Noonberg brings over 20 years of expertise in medical drug growth throughout a number of therapeutic modalities and indications, with a monitor document of main packages from discovery by means of regulatory approval.

AbCellera additionally initiated work on one further associate program through the quarter, bringing the cumulative complete to 103 packages with downstream participation whereas sustaining 18 molecules which have reached medical growth, together with each inside and partner-led candidates.

CEO Carl Hansen outlined the corporate’s differentiation technique for lead packages.

• ABCL635 targets vasomotor signs in menopausal ladies by means of NK3 receptor antagonism, positioning towards lately permitted small molecules from Astellas and Bayer with potential benefits in dosing frequency, security, and efficacy.
• The proof-of-concept trial is designed to exhibit aggressive efficiency, with a readout anticipated round mid-2026.
• ABCL575 represents a totally human, half-life prolonged monoclonal antibody for T-cell-mediated autoimmune circumstances, resembling atopic dermatitis, with potential for six-month dosing intervals in comparison with one-month and three-month schedules, as demonstrated by competitor amlitelimab.

Administration reaffirmed confidence in reaching all company priorities for the 12 months, together with advancing at the very least one further growth candidate into IND-enabling research earlier than year-end, which might signify the fourth molecule within the inside pipeline.

AbCellera expects analysis charge income to proceed trending downward as the main target shifts towards proprietary packages, whereas sustaining enough capital to fund investments past three years of accelerating pipeline growth.

Is the Canadian inventory undervalued proper now?

Analysts monitoring AbCellera forecast income to extend from US$28.8 million in 2024 to US$201.44 million in 2029. In comparison with 2025, adjusted earnings are forecasted at US$0.35 per share in 2029, representing a big enchancment from a loss per share of US$0.66 in that 12 months.

If the Canadian inventory is priced at 20 occasions ahead earnings, which is affordable, it ought to commerce round US$7 in early 2029, indicating an upside potential of 80% from present ranges. Wall Avenue is much more bullish on the small-cap biotech inventory and expects it to greater than triple, given consensus value targets.