Is AbCellera Biologics (ABCL) Halal to invest in?
Table of Contents
How much of AbCellera’s revenue comes from haram?
AbCellera develops antibody discovery platforms. The company uses a full-stack AI-powered drug discovery platform to search, decode, and analyze the database of natural immune systems to find antibodies that can be developed as drugs.
AbCellera earns its revenue primarily from the following revenue sources:
- Research Fees:
Includes revenue generated from providing technology access to partners and discovery research fees earned through the performance of the antibody research.
- Licensing Revenue:
Includes revenue generated primarily from providing licensing to its humanized rodent platform, Trianni™.
- Development Milestone and Royalty Revenue:
Includes revenues generated from clinical approval and commercial milestones and royalties on sales of the molecules that AbCellera discovers.
The contributions from each of AbCellera’s revenue segments in their Q2 2021 report were as follows:
Practical Islamic Finance concludes:
None of AbCellera’s revenue comes from anything inherently haram.
Does AbCellera rely on interest to operate?
| Year-to-Date for period ended 6/30/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | $600 | $293 | $155 |
| Total Revenue | $230,384 | $233,155 | $11,612 |
| Interest Expense | – | $6,511 | $209 |
| Total Expenses | $79,409 | $77,124 | $15,729 |
| Interest Income / Revenue | 0.26% | 0.13% | 1.33% |
| Interest Expense / Total Expense | – | 8.44% | 1.33% |
*Interest income and interest expense are reported under other (income) expense
in income statement
Practical Islamic Finance concludes:
Riba is used but not relied upon in AbCellera’s operation.
What is AbCellera’s Environmental, Social, and Governance (ESG) Impact?
Environment
No notable environmental highlights.
Social
AbCellera has a high Glassdoor rating of 4.9 out of 5 from over 20 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
AbCellera has a net positive ESG impact.
Comfort Rating
From AbCellera’s business, financial, and ESG reviews, Practical Islamic Finance rates AbCellera stock as: