Discover how AbCellera used IRAP funding and government support to build an AI-powered antibody discovery platform, leading to record-breaking COVID-19 treatments and Canada's largest biotech IPO at $6 billion.
In March 2020, as COVID-19 spread rapidly across the globe, a relatively unknown Vancouver biotech company called AbCellera Biologics accomplished something extraordinary. In just 90 days, they identified an antibody that would become bamlanivimab—one of the world's first COVID-19 treatments. This breakthrough, which typically takes years to achieve, saved countless lives and demonstrated Canada's capacity for world-changing biomedical innovation.
But AbCellera's pandemic heroics didn't emerge from nowhere. The company's ability to respond so quickly was built on nearly a decade of patient development, supported at crucial moments by Canadian government funding programs. The story of how strategic public investment helped transform a university research project into a $6 billion biotech leader offers powerful lessons about the role of government funding in building pandemic preparedness and fostering innovation that matters when humanity needs it most.
In 2012, Dr. Carl Hansen, a bioengineering professor at the University of British Columbia, saw a fundamental problem in drug discovery. Finding therapeutic antibodies—Y-shaped proteins that can neutralize viruses, kill cancer cells, or modulate immune responses—was painfully slow and expensive. The traditional process took years and cost millions, with no guarantee of success.
Hansen's vision was radical for its time: combine microfluidics (controlling tiny amounts of fluids), single-cell analysis, and artificial intelligence to search through millions of immune cells at unprecedented speed. Instead of the traditional approach of immunizing lab animals and hoping for the right antibody, Hansen wanted to directly analyze immune responses from recovered patients or immunized subjects, finding the exact cells producing the most effective antibodies.
The challenge? This approach required integrating multiple cutting-edge technologies that barely existed. It needed sophisticated hardware for handling individual cells, advanced genomics for reading antibody sequences, and machine learning systems for identifying the best candidates among millions of possibilities. No private investor was willing to fund such an ambitious, unproven platform.
AbCellera's journey began with foundational government support through multiple channels:
NSERC Grants (2008-2012): Before AbCellera existed, Hansen's research at UBC was supported by Natural Sciences and Engineering Research Council grants totaling over $500,000. This funding allowed him to develop the core microfluidic technologies and prove basic concepts.
NRC-IRAP Advisory and Funding (2013-2015): When AbCellera incorporated in 2012, the company had brilliant technology but no clear business model. IRAP advisors helped the founders understand that partnering with pharmaceutical companies—rather than developing drugs themselves—could create a sustainable business. IRAP provided:
Western Economic Diversification Canada (2014): A crucial $2 million grant helped AbCellera hire its first team of scientists and build out laboratory infrastructure. This funding came at a critical moment when the company had promising technology but no revenue.
The nature of AbCellera's innovation made government support particularly crucial:
Technology Risk Tolerance: AbCellera was attempting to integrate multiple unproven technologies. Private investors typically avoid such "platform risk," preferring companies developing single drugs with clear regulatory pathways. Government innovation programs, designed to support breakthrough technologies, could accept this higher risk.
Long Development Timeline: Building and validating AbCellera's platform would take years before generating significant revenue. Government funding provided patient capital that didn't demand quick returns.
Maintaining Canadian Innovation: U.S. venture capital would likely have required AbCellera to relocate to Boston or San Francisco. Canadian government support allowed the company to remain in Vancouver, building local expertise and infrastructure.
Public Health Alignment: Government funders understood that antibody discovery capabilities had strategic national importance for pandemic preparedness—a value proposition that might not interest purely profit-driven investors.
By 2015, AbCellera had developed a functioning prototype of its antibody discovery platform. The system could:
But the company faced a classic biotech challenge: they had revolutionary technology but no products to sell. Pharmaceutical companies were interested but skeptical. Would this new approach really work better than traditional methods?
In 2018, AbCellera received unexpected validation from an unlikely source: the U.S. Defense Advanced Research Projects Agency (DARPA). Concerned about pandemic preparedness, DARPA awarded AbCellera $30.6 million USD as part of its Pandemic Prevention Platform program.
This U.S. military funding might seem like a departure from the Canadian government support story, but it actually validates it. DARPA chose AbCellera precisely because years of Canadian government investment had created unique capabilities. The company was one of only a few worldwide that could credibly promise to find therapeutic antibodies within 60 days of receiving a sample.
Crucially, Canadian government programs had built the foundation that attracted this international investment:
When SARS-CoV-2 emerged in early 2020, AbCellera was uniquely prepared. The company had:
On March 6, 2020, AbCellera received a blood sample from one of the first recovered COVID-19 patients in North America. What happened next demonstrated the power of years of patient investment:
Day 1-7: Isolated immune cells from the patient sample Day 8-14: Screened 5 million immune cells, identifying 500+ that produced antibodies against SARS-CoV-2 Day 15-30: Sequenced antibody genes and used AI to predict most promising candidates Day 31-60: Produced and tested leading antibodies Day 90: Transferred lead antibody (bamlanivimab) to Eli Lilly for clinical development
By November 2020, bamlanivimab received emergency use authorization from the FDA—less than nine months from sample to approved treatment. For context, traditional antibody development typically takes 5-7 years.
The return on Canada's investment in AbCellera has been extraordinary:
Direct Financial Returns:
Employment and Economic Impact:
Strategic Value:
Lives Saved and Healthcare Impact:
AbCellera's success has catalyzed broader developments in Canadian biotechnology:
Talent Magnet: The company's success has attracted world-class scientists to Vancouver. Several have started their own companies, creating a virtuous cycle of innovation.
Infrastructure Development: AbCellera's new 380,000-square-foot facility in Vancouver includes capabilities that other Canadian biotechs can access, reducing barriers for other startups.
Investor Confidence: The successful IPO—the largest for a Canadian biotech—has attracted international venture capital to Canadian life sciences, with Vancouver seeing a 300% increase in biotech investment since 2020.
Academic Partnerships: Relationships with UBC, Simon Fraser University, and other institutions have strengthened, creating pipelines for talent and innovation.
Government Program Validation: AbCellera's success has justified continued and expanded government support for biotechnology, leading to new programs and increased funding.
The AbCellera story offers crucial insights for government funding programs:
Today, AbCellera continues to grow and innovate, with programs targeting cancer, neurological diseases, and future pandemic threats. The company has announced partnerships worth potentially billions of dollars and is building one of the world's most advanced antibody discovery facilities.
CEO Carl Hansen remains committed to Canada, recently stating: "We could have gone anywhere, but we chose to build here because Canada invested in us when we were just an idea. That early government support didn't just fund our technology—it gave us the confidence and credibility to think big."
For policymakers, the AbCellera story demonstrates that strategic government investment in biotechnology is not just about economic returns—it's about national security, pandemic preparedness, and maintaining sovereignty in critical technologies. The COVID-19 pandemic showed that countries with strong domestic biotech capabilities could respond faster and more effectively to health crises.
For entrepreneurs, especially those working on complex platform technologies, AbCellera's journey shows that government funding can provide the patient capital and strategic support needed to tackle ambitious challenges that private markets might ignore.
The roughly $7 million in Canadian government support for AbCellera didn't just create a successful company—it built a capability that saved lives during humanity's greatest health crisis in a century. When the next pandemic emerges, Canada will be ready, in part because government funding programs had the vision to support a UBC professor with an ambitious idea about using AI to discover antibodies.
AbCellera's story—from university lab to pandemic response to public markets—exemplifies the transformative potential of government funding in biotechnology. The company's success demonstrates that public investment in innovation isn't just about financial returns, though those have been exceptional. It's about building capabilities that matter when humanity faces its greatest challenges.
As countries worldwide grapple with how to foster innovation while ensuring pandemic preparedness, the AbCellera model offers a compelling template: strategic government support for platform technologies, patient capital for long-term development, and alignment between public investment and public benefit. The return on Canada's investment in AbCellera can be measured not just in billions of dollars, but in lives saved, ecosystems created, and the knowledge that when the next crisis comes, Canada will have the tools to respond.
