Peter Thiel’s New IPO & Its Not Palantir

As of September 30, 2020, AbCellera had 94 discovery programs either completed, in-progress, or under contract, with a few public key partnerships, including Kodiak Sciences [$KOD], Eli Lily [$LLY], Invetx [private], and IGM Biosciences [$IGMS]

AbCellera Biologics is the latest IPO backed by Silicon Valley VC Peter Thiel, co-founder of PayPal [$PYPL] and Palantir Technologies [$PLTR]; his big-data analytics company went public in September via direct listing. Today, shares of Palantir have nearly tripled from their $10 IPO price and are trading at $26.95 after touching an all time high of $33.5 on November 27.

Make no mistake, AbCellera Biologics isn’t a biotech. Instead, the company provides an AI-powered R&D platform that helps expedites drug discovery. In March, AbCellera and Eli Lilly [$LLY] agreed to co-develop antibody products to treat and prevent the virus. [Palantir: Peter Thiel’s Next Home Run]

AbCellera’s management team is highly experienced with significant experience in related industries. AbCellera has also continued to bolster its board of directors with high-profile names including Peter Thiel (Palantir, Paypal, Facebook) and John Montalbano (CPPIB) ahead of its IPO.

In August, Lilly began testing LY-CoV555, the lead antibody from its collaboration with AbCellera, in U.S. nursing homes. Three months later in November, the FDA approved an emergency-use agreement for the drug to treat certain patients with ‘rona. In December, the U.S. government agreed to buy 650,000 doses of LY-CoV555 for $812.5 million. [Hey Pfizer, Moderna said “Hold My Beer”]

The Vancouver, British Columbia–based company reported income of $1.9 million for the nine months ending on September 30, compared with $570,000 in losses for the same period in 2019. Revenue tripled to $25.2 million for the nine months ended September 30 from $8.4 million in 2019.

Company Timeline: AbCellera has demonstrated consistent growth and has generated positive operating cash flow cumulatively since its inception in 2012.

AbCellera is expected to price its IPO on Thursday, December 10, and trade the following day. The company is offering 23 million shares at $14 to $17 each and could raise $391 million at the top of its expected range. It’s set to trade on the Nasdaq under the ticker $ABCL. Lead underwriters include Credit Suisse, Stifel, Berenberg, SVB Leerink, and BMO Capital Markets. AbCellera founder and CEO Carl Hansen, a former professor in the Department of Physics and Astronomy at the University of British Columbia, is holding presentations about the IPO to technology and biotech investors.

The IPO market is set to close up shop after next week, after two companies, Upstart and Wish, are scheduled to go public on Wednesday, December 16. Roblox, a gaming platform, filed in November for an IPO but has yet to set terms. [Roblox Files for $1B IPO]

AbCellera headquarters in Cambie, Vancouver. The company was founded at the University of British Columbia in 2012.

3 thoughts on “Peter Thiel’s New IPO & Its Not Palantir

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s