8 Penny Stocks with Biggest Upside Potential According to Analysts

2. AbCellera Biologics Inc. (NASDAQ:ABCL)

Share Price: $2.53

Upside Potential: 383.87%

Number of Hedge Fund Holders: 16

AbCellera Biologics (NASDAQ:ABCL) solves antibody discovery problems by integrating data science, technology, infrastructure, and interdisciplinary teams. It develops and discovers antibody medicines for indications across therapeutic areas, including metabolic and endocrine conditions, cancer, and autoimmune disorders. It boasts technology platforms that unlock drug classes, modalities, and targets, including T-cell engagers, peptide-MHCs, and transmembrane proteins.

The company is focusing attention on advancing its internal program pipeline and collaborating with partners on drug development programs. Programs ABCL635 and ABCL575 are the first two preclinical programs in its internal pipeline. ABCL635, an antibody-drug candidate, is used against an undisclosed target with an indication in endocrine and metabolic conditions. ABCL575 is being developed as a therapy to treat atopic dermatitis and other indications of inflammation and autoimmunity. It targets the OX40 ligand. Since both ABCL575 and ABCL635 are progressing well, the company expects to submit Clinical Trial Applications in Q2 of 2025.

AbCellera Biologics (NASDAQ:ABCL) continued to focus its capital allocation in Q2 2024, primarily in three domains. These include building and advancing its internal pipeline, executing specific strategic partnerships, and completing investments in its facilities and platforms.

The company is in a strong liquidity position. It has around $220 million in available government funding and $700 million in cash to continue executing its strategy. It continued to implement its plans to complete its GMP and CMC investments in Q2 2024. It also started to work on three partner-initiated programs in its key business metrics. This initiative takes its programs to a cumulative total of 93 programs with downstream participation.

AbCellera Biologics (NASDAQ:ABCL) has received commitments for funding the advancement of its internal pipeline and improving its GMP facility from the Government of British Columbia and the Strategic Innovation Fund from the Government of Canada. This capital does not show up on the company’s balance sheet. With nearly $700 million in cash and the unused portion of this secured government funding, the company has more than $900 million in total available liquidity to execute its strategies. Its capital needs are thus very manageable with respect to its overall operating expenditure, with sufficient liquidity to fund more than the next three years of its pipeline and platform investment.