Why Buy FAB?28 Jul 2025 21:52
The science and the story behind pharmaceutical companies can sometimes be difficult to understand to us average PIs. I will try to summarise why Fusion is a very compelling investment case.
The chart might be primed but so is the story.
Fusion Antibodies PLC is a UK-based contract research organisation (CRO) specialising in antibody discovery and development services. Its core mission is to help biotech and pharmaceutical companies create the best possible therapeutic antibodies.
Core Business Model
Fusion generates revenue primarily by providing antibody development services using its proprietary platforms. These platforms are highly regarded for their performance; Fusion have worked with 8/10 of the world’s biggest pharma companies.
In addition to service fees, Fusion secures royalty and milestone agreements on client projects that reach clinical development. Fusion currently has a portfolio of such royalty-linked projects, which could generate substantial long-term, high-margin income.
Strategic Shift Toward Scalable Licensing
The company has recently been working on the development of a next-generation technology platform (Optimal) aimed at revolutionising antibody optimisation and development. It has been described as a ‘Worlds first’ and ‘Groundbreaking’ by the company recently. This platform is designed for licensing and has been proven to be replicable in any lab. Recent near completion NCI collaboration confirms this.
When successfully commercialised, the licensing model could unlock large, predictable income streams from global partners.
Strong Support and backing Through Grants & Partnerships
Fusion has secured substantial grant funding, enabling the company to innovate without overextending its balance sheet, this has been crucial to their survival and ability to work on their game changing platform. This came from InvestNI and Queens University Belfast (QUB), they are well aware of the hidden potential here. From the recent article GTC posted we can see how QUB has backed many winners. It also worth noting FAB is another QUB spin out from back in 2001, They must still be friends!
Catalysts and Further Outlook
The company is on the cusp of launching its new platform Optimal. This is a pivotal moment that could transform their revenue model and attract major licensing deals. The CEO Adrian did describe the company as being in an ‘enviable position’ at the last investor meet. When your new platform can cut drug-to-market times ‘significantly’ for big pharma, well you really are in an enviable position.
A patent that has been 4 years in the making has been confirmed to be granted on August 5th. A collaboration with the NCI is coming to a close soon also. The lead scientist on the NCI project Dr Ho, has also invited Richard Buick of Fusion to speak at a conference full of potential clients in San Diego in December.
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