Recursion Stock: Do We Still Like What’s on Offer?

Academics will spend the next decade or two unpacking the Rona years, trying to understand the complex socio-eco-cultural ramifications of the pandemic. Or something like that. For retail investors, the lessons are much simpler: zeroes became heroes overnight. In other words, relatively obscure companies suddenly gained billions in market cap as they filled a newly created niche, like video conferencing or covid vaccines. However, we’ve always viewed stocks like Zoom (ZM) and Moderna (MRNA) as pandemic one-hit wonders like In-A-Gadda-Da-Vida. Go ahead; try to name another Iron Butterfly song.

AbCellera (ABCL), an AI drug discovery company out of Vancouver, BC, joined the biotech big leagues in 2020 when it developed an antibody treatment for covid in collaboration with Eli Lilly and Company. The little-known Canadian firm topped $485 million in revenue last year, with more than 90% of that from royalties associated with its covid drugs. The Rona gravy train has run out of track, as we noted in our recent video on Abcellera stock in which we tried to figure out where the company is headed next. Theoretically, if its AI-powered platform for discovering antibody therapies is the real deal, then more success should be coming its way.