AbCellera surges 9% on Q4 earnings beat, patent settlement
$44.9M quarter includes Bruker patent settlement, extending biotech's cash runway as two programs advance to clinical trials
AbCellera Biologics shares jumped more than 9% in after-hours trading after the Canadian biotechnology company reported quarterly earnings that handily beat Wall Street expectations, boosted by a patent litigation settlement with Bruker Corporation.
The Vancouver-based company reported a fourth-quarter loss of 3 cents per share, significantly narrower than the 18-cent loss analysts had anticipated, according to Benzinga. The stock surged 9.3% to $3.52 following the announcement, building on a 6.3% gain during regular trading hours.
The outperformance was driven by $44.9 million in quarterly revenue, a dramatic increase from the $6.2 million analysts had forecast. The bulk of that revenue came from patent litigation settlements, with AbCellera having reached a global settlement with Bruker Corporation in December 2025. Under the agreement, Bruker will pay AbCellera an upfront $36 million plus future royalty payments on its Beacon Optofluidic platform products.
For the full year 2025, AbCellera reported $75.1 million in revenue, a 161% increase from $28.8 million in 2024, according to the company's earnings release. The patent settlement accounted for 60% of total annual revenue.
Beyond the one-time financial boost, AbCellera highlighted significant operational progress in 2025. The company transitioned from discovery-stage to clinical-stage biotechnology, advancing two internal programs into human trials. ABCL635 entered Phase 2 of a combined Phase 1/2 trial by year-end, while ABCL575 progressed through Phase 1. Additionally, two development candidates, ABCL688 and ABCL386, advanced into IND/CTA-enabling activities.
The patent settlement provides substantial non-dilutive capital as AbCellera invests in its clinical pipeline. The company ended 2025 with approximately $700 million in liquidity, including $561 million in cash, cash equivalents, and marketable securities, plus about $135 million in available non-dilutive government funding.
"The transformation of our business to a clinical-stage biopharmaceutical company is well underway," the company said in its earnings statement, noting that it completed multi-year platform investments and opened a clinical manufacturing facility during the year.
Despite the after-hours rally, AbCellera remains well below its 52-week high of $6.51, reflecting broader challenges facing early-stage biotechnology companies in the current market environment. The stock has declined roughly 50% over the past year, even as Wednesday's gains brought shares to $3.22.
Analysts remain broadly optimistic about the company's prospects. The stock carries an average target price of $9.83, according to market data, with eight analysts covering the company collectively rating it a buy – six at buy, one at strong buy, and one at hold.
The Bruker settlement resolves a dispute dating back several years. The U.S. Court of Appeals for the Federal Circuit had affirmed the validity of AbCellera's microfluidic cell culture patent in May 2025, rejecting Bruker's challenges and strengthening AbCellera's position in the litigation.
Looking ahead, investors will be focused on clinical data readouts from the two internal programs now in human trials, as well as progress from the company's 19 partner-initiated programs that have reached the clinic. AbCellera reported reaching 104 cumulative partner-initiated program starts by year-end 2025, up from 96 in the prior year.
The substantial cash position should provide ample runway for the company to execute on its clinical development plans without immediate dilutive financing, a factor that likely contributed to Wednesday's positive market reaction.