This week, life science supplier Abcam Plc has seen a hit of around 15 per cent to its share price following the announcement of its five year plan.
However, our data here at CiteAb suggests that this initial reaction should be temporary and that based on citations for the use of its products the company is actually seeing upward market trends that suggest it has a long-term approach that is working well.
Abcam announced this week that the company would be producing a five year plan in September which will aim to further grow the organisation organically. The market expressed concern that the investment required to do this could hit the company’s earnings.
In addition, it was announced that the company’s finance director is going to be leaving (for personal reasons), causing some investors to lose confidence.
Dr Andrew Chalmers, founder of CiteAb, said: “Having seen Abcam’s share price take a hit this week we felt it would be a good time to revisit our data on the company to see whether sale trajectories for its products might give investors increased confidence in the company’s long-term strategy.
“We last looked at our data for Abcam in August 2018, when our analysis helped put the company back on Berenburg’s buy list.
“Today’s analysis allows us to go into further depth as over the last year we’ve compiled data for ELISA kits and biochemicals in addition to research antibodies, allowing us to take a wider look at Abcam’s business and the company’s sales trajectories.”
CiteAb’s data for Abcam’s product citations suggest that the company is:
- Continuing to grow its share in citations for research antibodies, including in key growth markets such as China, and within growth product areas including rabbit monoclonals.
- Making modest share gains in the competitive biochemicals market
- Making significant progress in the ELISA market
Dr Chalmers said: “Abcam appear to be performing well across the board, however its gains in the ELISA market are particularly exciting. This is a high-value market, and antibodies are a key component of ELISA kits. Abcam is harnessing its success in the antibody market and has made an impressive rise from holding almost no share of this market ten years ago to over ten per cent of it today.”
CiteAb’s data suggests that Abcam’s long-term approach is working, with the company successfully growing share in the key antibody market, but also in markets for other reagents.
Dr Chalmers adds: “The use of a product in a publication is a key driver of future sales, so it will be interesting to see how Abcam’s increasing share of citations is reflected in future sales and share price. Will the current market concern be proven wrong?”