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$ABCL Had a great time discussing AbCellera with @em013L today - Almost 3 hours long. We discuss a lot of things including my take on the thesis, liquidity, cash flow exercise, risk/reward, and more. Hope you enjoy!

AbCellera CEO, Carl Hansen on their history with DARPA, the P3 program, how it helped solidify the future for AbCellera, and more: “If you’re not laughed out of the room, typically they don’t think you should be in it (working with DARPA)” “(Referring to receiving the grant from DARPA) This was the most impossible Super Bowl of grant writing that you could ever see” “We had the first patient that was dosed with that drug (Bamlanivimab) and that is I think by far the world record in speed of drug development (and will remain so) unless we have another pandemic” “Our stock went from about $70 to as low as $2.50… in my mind, through that entire period the company was getting stronger and the company was doing good science, we were executing exactly what we need to do” “What other people are telling you is valuable is not what you should pay attention to” “At some point someone's going to tell you what an efficient market hypothesis is and maybe that works and I think there are some people that believe it, but it depends on a few assumptions and one assumption is that all information is available, that people are rational and numerate actors, and in biotech both those things are not true…. the lesson that I think we learned through that is you really need to look inward and ask yourself what are the real examples, the pieces of data, the things that I can see and touch and feel, that tell me that I'm on the right right track so that I have feedback. Because if you listen to others, not just on public markets but in your life, if you listen to others you will be blown off course” “I believe we now have the world's most enabled technology for creating antibody drugs” “That recipe that I talked about, find a winner, back it up, and have the ability to follow it up over time, is what we're after, and the thing that's missing right now is to find the winner and that's where our focus is” A little history on AbCellera and DARPA: - AbCellera Completes Collaboration for Discovery of Fully Human Antibodies Against E. Coli & Ebola JANUARY 20, 2016 - AbCellera & MassBiologics Partner to Discover Human Antibodies Against Drug Resistant Bacteria JULY 20, 2016 - AbCellera Awarded Multi-Year Contract to Lead the Development of a Rapid Response Platform Against Pandemic Viral Threats MARCH 13, 2018 While the E. Coli/Ebola, and Drug Resistant Bacteria projects did not result in therapeutic products being delivered, they did successfully discover hundreds of leads and demonstrate capabilities, which led to the successful P3 program that ended up delivering Bamlanivimab and Bebtelovimab in 2020-2022. This speech is full of gold… always enjoyable to go back and re-watch. Carl has the Thiel contrarian mindset written all over him. The stock is down 90%+ from IPO. But I look at the things I can see with the company.. at least what I can as an outside investor, and I continue to believe there is something very special here. That conviction has only gotten stronger over the years as I’ve dug deeper. Time will tell. Patience is key. Long and strong. $ABCL

$ABCL AbCellera’s quarterly call is one week away. Here’s what I’m looking for: First and foremost: Cash position and expectations on future cash used in operations as phase 1 clinical trials start. As of last quarter, the company reported ~$810M in total available liquidity and roughly $11.5M net cash used in operations. With phase 1 clinical trials starting on their two wholly-owned molecules in Q3, cash used in ops will increase next earnings report. I would love to hear from Andrew Booth on expectations for that. Booth noted in 2024 how the company is in a position where they might not have to raise capital again. Although their liquidity position is strong, I believe up-front payments from partners will be needed along the way to help, as research/liscensing fees have been very small thus far (~$4M last Q). They have time on their side right now though given the liquidity position. - Updates on other molecules currently in the clinic, such as ABD-147 (Abdera partner molecule in phase 1).. would like to hear a reaffirmation/discussion of plans to advance 1-3 molecules to the clinic/year from 2026 and forward. - The validity of the ‘408 patent family (critical to the thesis) was affirmed in May by the U.S. Court of Appeals for the Federal Circuit and the company made a press release. Curious if they’ll highlight the significance of this on the call. - Any updates on the AbbVie TCE partnership - Any updates on the Eli Lilly partnership expansion from last year - Any updates on their plans to partner in phase 2 for ABCL575. Other than that, I look forward to hearing from management and expect them to reaffirm conviction on the two new molecules entering the clinic, as they have in the past. Really, it’s just the cash position/cash used that I’m mainly focused on for now. No price prediction. Looking forward to 2026 The company has only gotten stronger over the years. We’re early in the story.

With $ABCL earnings coming up and the recent buzz on X, I felt this would be helpful to share. AbCellera is not the only small cap biotech on a run since the beginning of May. Here’s 4 others. While ABCL has popped the most, it’s clear they have all been following the same tend. There’s likely many more following this tend. I’ll be the first one to say AbCellera has the potential to be very special (and I believe they already are). But I also know there’s been a ton of interest lately from new investors who likely haven’t spent all that much time researching the company itself. What I don’t want to happen is people to all of a sudden gain conviction only because the stock is moving up and not based on strong belief in the company itself. Not all small cap biotechs are popping like this, but the overall stock market is very hot right now and perhaps it’s the market making bets all of a sudden on the companies it thinks have potential. We’ve seen the same thing happen with quantum computing (which I think is junk) But it doesn’t matter.. the point is that it’s moving on sentiment. Perhaps anticipated rate cuts also have something to do with it.. I don’t know. Sentiment can change quickly. Maybe we’ll keep this run going, or maybe not. If you’re long on this company and truly believe in its long term potential over the course of years, then a pullback would excite you. I’m not sharing this to crush people’s excitement, say the stock will crash from here, or act like I know better than anyone… I did not expect the price to tank so hard over the years and did not expect this run as of late. I’m doing so to remind people to know what they hold and be prepared for anything to happen. Stock performance should not dictate conviction here. The last thing I would want to see is people pile on based on hope, only to be sick to their stomachs if a sharp pullback happens and sell their shares at a loss. I would love to see this thing keep running as it would be great for my portfolio… apparently the TA looks good.. but I’m mentally prepared for anything and keep my focus on the long term. That’s what helps me sleep at night. That doesn’t mean folks can’t celebrate short-term movement.. I know I do. I have enough shares to make a ton of money over the long run if this plays out that way I believe it will, but if it doesn’t, it won’t ruin me. Since this run, ABCL makes up 13% of my portfolio. My goal is not to predict short-term movement, but rather help others learn about the companies I believe in, “the why”, and stay focused on the big picture (While having fun along the way of course) For earnings, I’m not expecting anything specific. If the company gets a large up-front payment, discusses their patent validity being affirmed, or announces a new molecule, and the stock runs even harder, I will be thrilled… it is possible. But if not, that’s fine with me. I won’t speculate on the short term for such things. The AbbVie up front payment will come eventually, but nobody knows when or how big it will be. I’m not betting on this quarter.. I’m betting on the company’s platform getting drugs to the market over the course of years. If this quarter turns out to be a nothingburger like the last however many, it won’t hurt my conviction. I do believe the company is still dirt cheap here relative to its long term potential, and perhaps we’re in the cycle of the market where it will be re-priced for its potential without needing profits. That would be awesome. But again, I’m not betting on sentiment and already have my core position secured for the long term. After earnings, if we pop to $6 (random number), I still think it’s a great buy given one understands the thesis and is positioned accordingly to their risk-tolerance. If we fall, it’s an even better opportunity. I have no clue what will happen in the short term, but I do believe this company holds the potential to be massive one day if they execute. Continued ⬇️