Absci (ABSI) FY Conference June 09, 2025 08:40 AM ET Speaker0 Good morning. I'm Sean McLean, the founder and CEO of Abzai. We're a generative AI drug creation company looking to use generative design, solve some of the toughest problems in biology that still exist, to ultimately get differentiated assets to patients faster. We've always been a data first company. Our original technology was scaling protein protein interactions, going from screening thousands of antibodies to millions. And we've leveraged th ...

Absci (ABSI) 2025 Conference June 05, 2025 02:00 PM ET Speaker0 Good afternoon, everyone. Welcome to the Jefferies Global Healthcare Conference. My name is Tim Mototola, member of the Jefferies Healthcare Investment Banking team. It is my great pleasure today to introduce Sean McLean, CEO of AbSci. Thank you. Speaker1 Great. Thank you. Yeah. I'm Sean McLean, founder and CEO of AbSci. We are a generative AI drug creation company. What we're ultimately looking to you to do is use generative design to ultimate ...

Absci (ABSI) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Company Participants Alexander Khan - VP of Finance & Head of Investor RelationsSean McClain - Founder, CEO & DirectorZach Jonasson - Chief Financial Officer & Chief Business OfficerArseniy Shabashvili - Vice PresidentChristian Stegmann - Senior Vice President of Drug CreationMorgan Gryga - Biotech Equity Research AssociateGeorge Farmer - Managing DirectorDebanjana Chatterjee - DirectorLi Chen - Equity Research Associate Conference Call Participant ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.2 million, reflecting ongoing progress in partner programs [19] - Research and development expenses increased to $16.4 million from $12.2 million in the prior year, driven by advancements in internal programs [19] - Selling, general and administrative expenses rose to $9.5 million from $8.7 million, primarily due to increased stock compensation [20] - Cash, cash equivalents, and short-term investments at the end of the quarter totaled $134 million, up from $112.4 million as of December 31, 2024 [20] Business Line Data and Key Metrics Changes - The company initiated its first in-human clinical trial for ABS 101, marking its transition to a clinical-stage biotech [6] - ABS 201, targeting androgenetic alopecia, is progressing towards a first-in-human trial expected in early 2026 [13] - The company is advancing multiple programs, including ABS 301 and ABS 501, with ongoing preclinical studies [14][42] Market Data and Key Metrics Changes - ABS 201 targets a market of approximately 80 million adults in the U.S. affected by androgenetic alopecia, with potential for significant therapeutic innovation [11] - The company is exploring additional indications for ABS 201, including endometriosis, indicating a broader market strategy [34] Company Strategy and Development Direction - The company aims to leverage its AI platform to design novel therapeutics addressing unmet medical needs, focusing on high-value proprietary internal programs [17] - Plans to retain and develop ABS 201 through later stages of clinical development to maximize value [19] - The company is engaged in discussions with potential partners for drug creation partnerships, anticipating signing agreements with large pharma [16][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute across its portfolio, with a strong balance sheet supporting ongoing investments [21] - The FDA's proposal to reduce animal testing aligns with the company's AI-driven approach to drug development, presenting a favorable regulatory environment [15][67] - Management expects to see enhanced deal terms for future partnerships due to recent clinical successes [61] Other Important Information - The company is committed to leading biotech innovation through AI, aiming to deliver life-changing treatments [16] - Interim results from the ABS 101 trial are expected later in 2025, with a focus on safety and tolerability [8][24] Q&A Session Summary Question: What are the expectations for ABS 101's phase one top line results? - Management is looking for a favorable safety profile, low immunogenicity, and target engagement similar to previous data presented [26][27] Question: Can ABS 201 potentially be self-administered in the future? - Management believes it could be self-administered but will initially work with dermatologists for effective administration [28] Question: How is market segmentation being approached for ABS 201? - The company sees potential efficacy across various segments of the androgenetic alopecia population and will evaluate this in clinical trials [31][33] Question: What is the expected timeline for ABS 301's development candidate? - The company is progressing towards a drug candidate nomination but has not disclosed a specific timeline [42] Question: How does the company view its cost structure in the current market? - The company is focused on leveraging efficiencies from its AI platform to potentially reduce costs and reallocate resources [62]

Financial Performance - Partner program revenue increased to $1,179,000 for the three months ended March 31, 2025, compared to $898,000 in the same period of 2024, representing a growth of approximately 31.2%[21] - The net loss for the three months ended March 31, 2025, was $26,346,000, compared to a net loss of $21,975,000 for the same period in 2024, indicating a year-over-year increase in losses of approximately 19.5%[21] - For the three months ended March 31, 2025, the net loss was $26.346 million, compared to a net loss of $21.975 million for the same period in 2024, representing an increase of approximately 19% in net loss year-over-year[25] - The company reported an operating loss of $27,729,000 for Q1 2025, compared to an operating loss of $23,498,000 in Q1 2024, reflecting a deterioration of about 17.5%[21] - Total operating expenses rose to $28,908,000 in Q1 2025, up from $24,396,000 in Q1 2024, reflecting an increase of about 18.5%[21] - Total stock-based compensation expense for the three months ended March 31, 2025, was $4.943 million, compared to $3.597 million for the same period in 2024, reflecting a 37.5% increase[48] Cash and Assets - Cash and cash equivalents increased to $46,995,000 as of March 31, 2025, from $41,213,000 as of December 31, 2024, showing a growth of about 14.0%[20] - Total assets grew to $232,447,000 as of March 31, 2025, compared to $213,608,000 as of December 31, 2024, marking an increase of approximately 8.8%[20] - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash totaling $64.125 million, down from $76.307 million at the end of the first quarter of 2024, a decrease of about 16%[25] - The company’s investments in short-term investments as of March 31, 2025, were valued at $86.988 million, compared to $71.212 million as of December 31, 2024, representing an increase of approximately 22%[35] - The total stockholders' equity as of March 31, 2025, was $198.796 million, up from $179.133 million as of December 31, 2024, reflecting an increase of approximately 11%[23] Expenses and Liabilities - Research and development expenses for Q1 2025 were $16,364,000, up from $12,236,000 in Q1 2024, indicating a rise of about 33.5%[21] - The company’s accumulated deficit increased to $535,947,000 as of March 31, 2025, compared to $509,601,000 as of December 31, 2024, reflecting a growth in the deficit of approximately 5.2%[20] - The contingent consideration liability related to the acquisition of Totient, Inc. was $12.750 million as of March 31, 2025, unchanged from December 31, 2024[41] - The company has financial commitments of $2.0 million, $4.6 million, $8.3 million, and $2.3 million for the years 2025 through 2028 under its agreement with Oracle Cloud Infrastructure[43] Shareholder Activity - The weighted-average common shares outstanding increased to 124,461,439 in Q1 2025 from 99,393,333 in Q1 2024, representing an increase of approximately 25.3%[21] - The company issued common shares, net of issuance costs, totaling $41.689 million during the three months ended March 31, 2025, compared to $80.827 million for the same period in 2024, indicating a decrease of approximately 48%[25] - The company issued 5,269,192 shares during the three months ended March 31, 2025, generating net proceeds of $21.7 million from its at-the-market offering program[45] - A strategic collaboration with AMD resulted in the sale of 5,714,285 shares for net proceeds of $20.0 million, aimed at optimizing AI drug creation technologies[46] Strategic Focus - The company continues to rely on its Integrated Drug Creation platform for future growth and partnerships, emphasizing the importance of regulatory approvals and market acceptance for its product candidates[11] - The company’s approach to drug creation leverages generative AI and synthetic biology, aiming to enhance the design of antibody therapeutics[27] - The company has collaborative arrangements with several partners, including PrecisionLife and Memorial Sloan Kettering Cancer Center, which involve joint research and development activities[33] Stock Options - As of March 31, 2025, total unrecognized stock-based compensation related to stock options was $28.0 million, expected to be recognized over a remaining weighted average period of 2.3 years[49] - The estimated grant-date fair value of stock options for the three months ended March 31, 2025, was based on a volatility of 90%-92% and a risk-free interest rate of 4.0%-4.4%[50] - The company had 21,758,054 stock options outstanding as of March 31, 2025, with an average exercise price of $3.39 per share[49]

Financial Performance - Revenue for Q1 2025 was $1.2 million, up from $0.9 million in Q1 2024, representing a 33.3% increase[7] - Net loss for Q1 2025 was $26.3 million, compared to a net loss of $22.0 million in Q1 2024, reflecting a 19.1% increase in losses[9] Expenses - Research and development expenses increased to $16.4 million in Q1 2025 from $12.2 million in Q1 2024, a rise of 34.4%[8] - Selling, general, and administrative expenses rose to $9.5 million in Q1 2025 compared to $8.7 million in Q1 2024, an increase of 9.2%[9] Cash and Investments - Cash, cash equivalents, and short-term investments as of March 31, 2025, were $134.0 million, up from $112.4 million as of December 31, 2024[10] - Cash and cash equivalents increased to $46,995,000 in March 2025, compared to $41,213,000 in December 2024, marking a rise of 14.0%[20] Assets and Liabilities - Total assets increased to $232,447,000 in March 2025 from $213,608,000 in December 2024, representing an increase of 8.6%[20] - Current assets rose to $155,978,000 in March 2025, up from $133,831,000 in December 2024, reflecting a growth of 16.5%[20] - Total liabilities decreased slightly to $33,651,000 in March 2025 from $34,475,000 in December 2024, a reduction of 2.4%[20] - Total current liabilities decreased to $27,281,000 in March 2025 from $28,656,000 in December 2024, a decrease of 4.8%[20] Stockholders' Equity - Stockholders' equity increased to $198,796,000 in March 2025, up from $179,133,000 in December 2024, indicating a growth of 11.0%[20] - Additional paid-in capital rose to $734,711,000 in March 2025, up from $688,726,000 in December 2024, an increase of 6.7%[20] Debt - Long-term debt decreased to $2,544,000 in March 2025 from $2,733,000 in December 2024, a decline of 6.9%[20] Clinical Trials and Partnerships - Initiated dosing of participants in the first-in-human study of ABS-101, with interim data expected in the second half of 2025[1] - ABS-201 demonstrated high subcutaneous bioavailability of over 90% in non-human primates, with potential for Q8W-Q12W dosing intervals in humans[3] - Anticipation of Phase 1 clinical trial initiation for ABS-201 in early 2026, with potential interim efficacy readout in the second half of 2026[4] - The company expects to sign one or more drug creation partnerships, including with a large pharmaceutical company, in 2025[12] Study Details - The primary endpoint of the ABS-101 study is safety and tolerability, with approximately 40 healthy adult participants expected to enroll[4] Accumulated Deficit - The accumulated deficit increased to $(535,947,000) in March 2025 from $(509,601,000) in December 2024, reflecting a worsening of 5.2%[20] Accounts Payable - Accounts payable rose to $4,947,000 in March 2025, compared to $3,529,000 in December 2024, an increase of 40.2%[20]

Core Insights - Absci Corporation has initiated dosing of participants in the first-in-human study of ABS-101, an anti-TL1A antibody, with interim data expected in the second half of 2025 [1][5] - The company has released non-human primate data for ABS-201, an anti-PRLR antibody, showing extended half-life and high subcutaneous bioavailability, with Phase 1 initiation anticipated in early 2026 [1][5] - Absci's cash, cash equivalents, and short-term investments are sufficient to fund operations into the first half of 2027 [1][6] Internal Pipeline Updates - The first-in-human study of ABS-101 is a randomized, double-blind, placebo-controlled trial evaluating safety, tolerability, pharmacokinetics, and pharmacodynamics in approximately 40 healthy adult participants [5] - ABS-201 is being developed for androgenetic alopecia, targeting a significant unmet clinical need with a potential patient population of around 80 million in the U.S. [5] - The NHP study for ABS-201 demonstrated a high subcutaneous bioavailability of over 90% and the potential for Q8W-Q12W dosing intervals in humans [5] Financial Results - For Q1 2025, Absci reported revenue of $1.2 million, an increase from $0.9 million in Q1 2024 [7] - Research and development expenses rose to $16.4 million in Q1 2025 from $12.2 million in Q1 2024, driven by advancements in internal programs [8] - The net loss for Q1 2025 was $26.3 million, compared to $22.0 million in Q1 2024 [9] Cash Position - As of March 31, 2025, Absci had cash, cash equivalents, and short-term investments totaling $134.0 million, up from $112.4 million at the end of 2024 [10]

Core Insights - Absci Corporation has transitioned to a clinical-stage biopharmaceutical company with the initiation of Phase 1 trials for ABS-101, the first AI-designed biologic targeting inflammatory bowel disease (IBD) [1][2][3] Group 1: ABS-101 Development - ABS-101 is an investigational anti-TL1A antibody engineered using Absci's generative AI platform, demonstrating high potency and reduced immunogenicity risk, allowing for quarterly subcutaneous dosing [2][4] - The Phase 1 study is randomized, double-blind, and placebo-controlled, enrolling approximately 40 healthy adult participants to evaluate safety, tolerability, pharmacokinetics (PK), and pharmacodynamics (PD) [2][3] - Interim safety, PK/PD, and immunogenicity data for ABS-101 are expected in the second half of 2025 [2][4] Group 2: Pipeline and Future Prospects - In addition to ABS-101, Absci is advancing ABS-201, an anti-prolactin receptor antibody for androgenetic alopecia, with Phase 1 trials anticipated to begin in early 2026 [3][6] - The company emphasizes the potential of its generative AI platform to accelerate the development of innovative therapeutics, aiming to bring better biologics to patients more quickly [3][5] Group 3: Company Overview - Absci utilizes an Integrated Drug Creation™ platform that combines AI models with synthetic biology to design therapeutics targeting challenging medical conditions [5][6] - The company is headquartered in Vancouver, WA, with additional facilities in New York City and Switzerland, and collaborates with various pharmaceutical and biotech partners to enhance its therapeutic pipeline [6]

Company Overview - Absci Corporation is a data-first generative AI drug creation company focused on advancing drug discovery through generative design to create better biologics for patients more quickly [3] - The company utilizes its Integrated Drug Creation™ platform, which combines advanced AI models with a synthetic biology data engine, to rapidly design innovative therapeutics targeting challenging therapeutic areas [3] Upcoming Financial Reporting - Absci will report its business updates and financial results for the first quarter of 2025 after market close on May 13, 2025 [1] - A conference call will be held at 4:30 p.m. Eastern Time to discuss the business developments and financial results, with a live audio webcast available on the company's investor relations website [2] Product Pipeline - Absci is advancing its pipeline of AI-designed therapeutics, including ABS-101, aimed at treating inflammatory bowel disease (IBD), and ABS-201, which targets hair regrowth for androgenetic alopecia [3]

Core Viewpoint - Absci Corporation (NASDAQ: ABSI) has experienced a significant decline in investor confidence, with shares dropping to just above $2, nearing its 52-week low since February 2025 [1] Company Summary - Absci Corporation's stock has seen a notable decrease in value, reflecting a loss of confidence among investors [1]