AbCellera launches $200-million equity offering on heels of strong menopause trial results

AbCellera Biologics ABCL-Q launched a US$200-million public offering of common shares and pre-funded warrants Tuesday, a day after the Vancouver company reported strong trial results for its hot flash drug.

Jefferies, J.P. Morgan, Cantor Fitzgerald, UBS Investment Bank and BMO Capital Markets are underwriting the deal.

It’s the first time the antibody developer has sold stock since its initial public offering in December, 2020, the largest ever by a Canadian biotechnology company. AbCellera raised US$555.5-million in a US$20-a share offering in its Nasdaq debut, weeks after a treatment it discovered for hospitalized COVID-19 patients received emergency authorization for sale in the U.S. and Canada from regulators. That drug, marketed by Eli Lilly & Co., netted AbCellera nearly US$1-bilion in royalties.

AbCellera’s stock nearly tripled in its market debut and it was briefly worth more than US$15-billion. But as those COVID-19 drug revenues tailed off, so did its stock price. AbCellera’s focus on churning out antibodies for partners to develop, using its drug discovery platform, didn’t excite investors. So in 2023, it began developing its own drugs, focusing on established areas where it could address unmet need with differentiated treatments, while spending relatively little on research and development. It received US$300-million from the federal and B.C. governments to support its transition.

AbCellera has moved quickly. Its lead drug, ABCL635, a treatment for hot flashes, entered clinical trials in July, 2025, and on Monday the company reported efficacy results from a study of 92 women aged 47 to 71 who experience about 10 moderate to severe hot flashes a day. The company has two more drugs set to enter trials next year.

The results from ABCL635 were better than expected: AbCellera said those who took the drug experienced a mean 83-per-cent reduction of hot flashes over the trial’s four-week span, compared with a 33-per-cent drop for those on the placebo. Thirty-seven per cent of those taking the drug experienced no moderate or severe hot flashes, while 61 per cent experienced a 90-per-cent-plus reduction.

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Those taking the drug experienced a 58-per-cent mean reduction in the severity of hot flashes, compared with 12 per cent in the placebo group. AbCellera plans to publish further data after 12 weeks.

AbCellera management said the results suggested that ABCL635 could become a best-in-class non-hormonal therapy for women in menopause or undergoing hormone-suppressing cancer treatments. The company said it only needs to be administered once per month by self-injection and doesn’t have the same side effects, including potential liver toxicity and gastrointestinal issues, as competing once-daily pills sold by Astellas Pharma Inc. and Bayer AG that recently came to market.

Cantor Fitzgerald analyst Steve Seedhouse on Monday called the results “practically off the chart on everything measured,” predicting AbCellera would dominate an estimated US$6-billion-plus market for the 20 per cent of women who can’t take hormone replacement therapy, the dominant treatment for hot flashes.

AbCellera stock rose 35 per cent Monday, to close at its highest level since February, 2023. It gained a further 4.5 per cent Tuesday, closing at US$9.76. The stock is up 185.4 per cent this year.

It’s common for drug developers to raise equity financing after posting strong trial results, in order the fund the next leg of the multi-year campaign to bring drugs to market. AbCellera must still pass another large, expensive trial before seeking regulatory approval.

AbCellera is one of a slew of promising Canadian life sciences companies that have made significant progress in the past year, with more set to deliver pivotal data readouts this year.