Core Insights - Absci is a generative design company utilizing AI to address challenging problems in drug discovery, particularly targeting "undruggable" diseases that traditional methods have struggled to treat [1][2] - The company plans to showcase the clinical translation of its AI drug discovery efforts with two Phase II readouts for its assets ABS-201 in AGA and endometriosis within the next 24 months [2] - Absci's team comprises not only AI scientists but also experts in disease biology and drug discovery, working collaboratively to leverage technology for difficult diseases [2] Company Overview - Absci operates a 77,000 square foot automated wet lab, which supports a data flywheel that enables continuous learning and model training [2] - The company emphasizes the importance of translating AI advancements into clinical results, highlighting the need for practical applications of their technology in drug development [1][2]

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Summary of Absci Corporation Conference Call Company Overview - **Company**: Absci Corporation - **Industry**: Healthcare, specifically focused on AI-driven drug discovery Key Points and Arguments 1. **Generative Design Focus**: Absci utilizes AI to address challenging problems in drug discovery, particularly targeting "undruggable" diseases. The company aims to demonstrate clinical translation of its technology with upcoming phase two readouts for ABS-201 in androgenic alopecia (AGA) and endometriosis within the next 24 months [2][4][17] 2. **Team Composition**: The team consists of AI scientists, disease biologists, and drug hunters, working collaboratively to leverage technology for drug development. The company operates a 77,000 sq ft automated wet lab to support data generation and model training [3][6] 3. **Partnerships**: Absci has established partnerships with major pharmaceutical companies like AstraZeneca and Merck, as well as tech companies like NVIDIA and AMD, which is also a significant shareholder [7] 4. **Financial Position**: As of Q3, Absci reported $150 million in cash, providing a runway into early 2028 [7] 5. **ABS-201 Overview**: ABS-201 is an anti-prolactin receptor antibody targeting AGA and endometriosis. The company anticipates significant advancements in these areas, with a large patient population and poor existing treatment options [8][9][18] 6. **Market Opportunity in AGA**: Approximately 80 million Americans suffer from AGA, with current treatments like minoxidil showing limited efficacy. ABS-201 is expected to provide durable hair regrowth, addressing a significant unmet need [9][10] 7. **Mechanism of Action**: ABS-201 works by blocking the prolactin receptor, which is believed to reactivate hair follicles and promote hair growth. Preclinical studies have shown promising results in both hair regrowth and safety [11][12][15] 8. **Endometriosis Treatment Potential**: Endometriosis affects 1 in 10 women, with current treatments being inadequate. ABS-201 aims to not only alleviate pain but also modify the disease by blocking the prolactin receptor, potentially leading to significant market opportunities [18][21] 9. **Projected Sales**: The potential peak sales for ABS-201 in treating endometriosis could exceed $5 billion due to the large unmet medical need and poor standard of care [21] Additional Important Content 1. **Clinical Trials**: The company plans to initiate a phase one two-way study for ABS-201 in December, with interim efficacy readouts expected in the second half of the following year [17] 2. **Safety Data**: Human genetic studies indicate that individuals with prolactin receptor mutations are healthy, suggesting a favorable safety profile for ABS-201 [15][16] 3. **Comparative Advantage**: Absci believes that ABS-201 has superior efficacy and safety compared to existing treatments, such as HMI-115, which has shown poor formulation and dosing issues [24][25] This summary encapsulates the critical insights from the conference call, highlighting Absci Corporation's strategic focus, market opportunities, and upcoming catalysts in drug development.

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Core Insights - Absci Corporation (ABSI) reported a quarterly loss of $0.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, representing an earnings surprise of -5.26% [1] - The company's revenues for the quarter ended September 2025 were $0.38 million, missing the Zacks Consensus Estimate by 79.59%, and down from $1.7 million a year ago [2] - Over the last four quarters, the company has only surpassed consensus EPS estimates once and has consistently missed revenue estimates [2] Financial Performance - The company has shown a loss of $0.24 per share in the previous quarter, indicating a surprise of -26.32% compared to the expected loss of $0.19 [1] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $3.4 million, and for the current fiscal year, it is -$0.81 on revenues of $6.66 million [7] Stock Performance - Absci Corporation's shares have increased by approximately 31.7% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Absci Corporation belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Absci Corporation's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $400,000, reflecting ongoing progress in partnered programs [23] - Research and development expenses increased to $19.2 million from $18 million in the prior year, driven by external program advancements [24] - Selling, general, and administrative expenses decreased to $8.4 million from $9.3 million in the prior year, primarily due to reduced personnel-related expenses [24] - Cash, cash equivalents, and marketable securities rose to $152.5 million as of September 30, 2025, compared to $117.5 million as of June 30, 2025, indicating a strong financial position [24] Business Line Data and Key Metrics Changes - The company is prioritizing the development of ABS-201 for both androgenetic alopecia (AGA) and endometriosis, reallocating resources from ABS-101 [6][15] - ABS-201's development for AGA is on track, with a phase one/two A trial expected to initiate in December 2025 [5][9] - The company plans to initiate a phase two proof of concept clinical trial for ABS-201 in endometriosis in Q4 2026, highlighting the dual development strategy [5][22] Market Data and Key Metrics Changes - The market opportunity for ABS-201 in both AGA and endometriosis is characterized by significant unmet medical needs and poor standard of care, with both indications representing multi-billion dollar markets [8][18] - The company aims to leverage shared phase I development for ABS-201 to enhance clinical trial efficiency and speed [8] Company Strategy and Development Direction - The strategic decision to focus on ABS-201 reflects a disciplined approach to capital allocation, aiming to maximize value creation for shareholders [6][15] - The company is expanding its AI platform capabilities to enhance preclinical R&D and generate partnership interest [14] - Plans to sign one or more drug creation partnerships with large pharmaceutical companies by year-end are in place [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of ABS-201, emphasizing its best-in-class profile and the significant market opportunities in AGA and endometriosis [8][26] - The company is excited about the upcoming KOL seminar on December 11, where further details on ABS-201 will be shared [12][27] Other Important Information - The interim results from the ABS-101 phase I trial showed a favorable safety profile with no serious adverse events reported [4] - The company is also progressing additional programs, including ABS-301 and ABS-501, which are intended for partnership prior to clinical development [13][23] Q&A Session Summary Question: Details on TL1A program and endometriosis - Management confirmed that while the half-life of ABS-101 was extended compared to first-generation competitors, it fell short of second-generation programs, leading to a strategic shift towards ABS-201 for endometriosis [29][30] Question: Competitive landscape for endometriosis trial design - Management noted that the endometriosis indication is less competitive than IBD, and they are focused on a well-structured trial design to ensure robust data [31] Question: Partnering status for ABS-101 - The company plans to share recent data with potential partners in the coming weeks and is exploring first-in-class indications for ABS-101 [32][33] Question: Recruitment for AGA trial - Management expressed confidence in recruiting for the AGA trial, with multiple sites engaged and a KOL event planned to support recruitment efforts [41] Question: Efficacy timeline for AGA trial - An interim readout for the AGA trial is expected in the second half of next year, focusing on safety and tolerability [41] Question: Insights from competitor HMI-115 trial - Management highlighted the encouraging proof of concept from the HMI-115 trial, which supports the mechanism of action for ABS-201 in endometriosis [47][48] Question: Potential for ABS-201 in additional indications - While the focus remains on AGA and endometriosis, management acknowledged the potential for ABS-201 to be expanded to additional indications in the future [50]

Revenue and Loss - Partner program revenue for Q3 2025 was $378,000, a decrease of 77.8% compared to $1.7 million in Q3 2024[19] - Net loss for Q3 2025 was $28.7 million, compared to a net loss of $27.4 million in Q3 2024, indicating a 4.8% increase in losses[19] - The company reported a comprehensive loss of $28.5 million for Q3 2025, compared to a comprehensive loss of $27.0 million in Q3 2024[19] - The net loss for the nine months ended September 30, 2025, was $85,621,000, compared to a net loss of $74,123,000 for the same period in 2024, indicating an increase in losses of about 15.5%[24] Operating Expenses - Total operating expenses for Q3 2025 were $30.5 million, slightly down from $30.6 million in Q3 2024[19] - Total operating expenses for Q3 2025 were $30.532 million, compared to $30.596 million in Q3 2024[57] - The Company reported a significant increase in expenses for drug creation programs, totaling $5.669 million in Q3 2025, up from $4.144 million in Q3 2024[57] Cash and Assets - Cash and cash equivalents rose to $41.2 million as of September 30, 2025, compared to $9.5 million at the end of 2024[18] - Total assets increased to $245.0 million as of September 30, 2025, up from $213.6 million at the end of 2024[18] - The company reported a cash balance of $26,871,000 at the end of the period, down from $55,149,000 at the same time last year, marking a decrease of approximately 51%[24] Stockholders' Equity and Deficit - As of September 30, 2025, total stockholders' equity increased to $210,340,000 from $179,133,000 on December 31, 2024, reflecting a growth of approximately 17.4%[21] - The accumulated deficit as of September 30, 2025, was $509.6 million, an improvement from $595.2 million at the end of 2024[18] - The total accumulated deficit increased to $595,222,000 as of September 30, 2025, from $509,601,000 on December 31, 2024, reflecting a rise of about 16.8%[21] Share Issuance and Stock Options - The company issued 21,778,560 common shares in 2025, raising $60,649,000 net of issuance costs, compared to 19,205,000 shares issued in 2024 for $80,827,000[21] - The company issued 16,670,000 shares and received $46.7 million in net proceeds from a shelf registration statement in July 2025[43] - As of September 30, 2025, there were 21,905,416 stock options outstanding, with a weighted average exercise price of $3.29 per share[50] Stock-Based Compensation - Stock-based compensation expenses for the nine months ended September 30, 2025, totaled $14,064,000, slightly down from $14,384,000 in 2024[24] - Total stock-based compensation expense for Q3 2025 was $4.396 million, a decrease of 20.2% from $5.508 million in Q3 2024[49] - For the nine months ended September 30, 2025, total stock-based compensation expense was $14.093 million, slightly down from $14.401 million in the same period of 2024[49] Future Projections and Risks - The company anticipates potential delays in commercialization and increased expenses if projected development goals are not met[10] Other Financial Metrics - Cash used in operating activities for the nine months ended September 30, 2025, was $63,743,000, up from $55,438,000 in 2024, representing an increase of approximately 15%[24] - The company experienced a net cash decrease of $31,343,000 in the nine months ended September 30, 2025, compared to a decrease of $34,518,000 in the same period of 2024[24] - The intrinsic value of outstanding stock options as of September 30, 2025, was $9.804 million[50] - Unrecognized stock-based compensation related to stock options was $22.0 million, expected to be recognized over a remaining weighted average period of 2.1 years[50] - The number of unvested restricted stock units as of September 30, 2025, was 4,420,360, with an unrecognized compensation expense of $5.9 million[52] Partner Program and Collaborations - Two partners represented approximately 93% of total partner program revenue for the three months ended September 30, 2025[31] - The company received $0.8 million in cost-sharing payments related to collaborative arrangements during the three months ended September 30, 2025, with no such payments in the same period of 2024[32] - During the three months ended September 30, 2025, the company recognized $0.2 million in revenue from deferred revenue, compared to $0.8 million during the same period in 2024[30] Securities and Investments - Proceeds from maturities of available-for-sale securities were $39.0 million for the three months ended September 30, 2025, compared to $43.0 million for the same period in 2024[35] - The company held $32.6 million of marketable securities with a remaining maturity of greater than one year as of September 30, 2025[35] - The contingent consideration liability related to the acquisition of Totient, Inc. was valued at $12.75 million as of September 30, 2025[39] - In October 2025, the Company agreed to settle a contingent consideration liability for approximately $7.6 million related to the acquisition of Totient[59]

Financial Performance - Revenue for Q3 2025 was $0.4 million, a decrease of 76% compared to $1.7 million in Q3 2024[8] - Net loss for Q3 2025 was $28.7 million, compared to a net loss of $27.4 million in Q3 2024, reflecting a 4.8% increase in losses year-over-year[10] Expenses - Research and development expenses increased to $19.2 million in Q3 2025 from $18.0 million in Q3 2024, driven by advancements in internal programs[9] - Selling, general, and administrative expenses decreased to $8.4 million in Q3 2025 from $9.3 million in Q3 2024, primarily due to reduced personnel-related expenses[10] Cash and Assets - Cash, cash equivalents, and marketable securities as of September 30, 2025, were $152.5 million, up from $117.5 million as of June 30, 2025[11] - Total assets increased to $244,992,000 as of September 30, 2025, up from $213,608,000 on December 31, 2024, representing a growth of 14.6%[21] - Current assets rose to $174,994,000, compared to $133,831,000 in the previous period, marking a 30.8% increase[21] - Cash and cash equivalents decreased to $9,476,000 from $41,213,000, a decline of 77%[21] - Stockholders' equity increased to $210,340,000 from $179,133,000, reflecting a growth of 17.4%[21] - Marketable securities significantly increased to $142,999,000 from $71,212,000, a rise of 100.1%[21] Liabilities - Total liabilities remained relatively stable at $34,652,000, slightly up from $34,475,000[21] - Accounts payable rose to $4,586,000 from $3,529,000, an increase of 29.9%[21] - Long-term debt decreased to $1,306,000 from $2,733,000, a reduction of 52.2%[21] Strategic Initiatives - The company is on track to initiate a Phase 1/2a trial for ABS-201 (anti-PRLR for androgenetic alopecia) in December 2025, with an interim efficacy readout expected in the second half of 2026[3] - Absci plans to expand the ABS-201 strategy to include endometriosis, anticipating a Phase 2 clinical trial initiation in Q4 2026[4] - The potential patient population for ABS-201 in androgenetic alopecia is approximately 80 million individuals in the U.S.[5] - The company has made a strategic decision to focus resources on ABS-201, foregoing additional later-stage development trials for ABS-101 at this time[5] - Absci expects to sign one or more drug creation partnerships, including with a large pharmaceutical company, in 2025[12] Capital Changes - Additional paid-in capital increased to $805,047,000 from $688,726,000, a growth of 16.9%[21] - The accumulated deficit widened to $(595,222,000) from $(509,601,000), indicating a decrease in retained earnings[21]

Core Insights - Absci Corporation is focusing on advancing its ABS-201 program for androgenetic alopecia and endometriosis, which are high-value indications with significant unmet medical needs [2][5][6] - The company reported interim results for its ABS-101 Phase 1 trial, showing an extended half-life compared to competitors and no serious adverse events [5][6] - Absci's financial position is strong, with sufficient cash and marketable securities to fund operations into the first half of 2028 [7][11] Pipeline Updates - The Phase 1/2a trial for ABS-201 (anti-PRLR for androgenetic alopecia) is set to begin in December 2025, with an interim efficacy readout expected in the second half of 2026 [5][6] - The company plans to initiate a Phase 2 clinical trial for ABS-201 targeting endometriosis in Q4 2026, with a potential proof-of-concept readout in the second half of 2027 [6][7] - Absci is reallocating resources from ABS-101 to accelerate the development of ABS-201, reflecting a strategic shift towards indications with higher market potential [2][5] Financial Performance - For Q3 2025, Absci reported revenue of $0.4 million, a decrease from $1.7 million in Q3 2024 [8] - Research and development expenses increased to $19.2 million in Q3 2025 from $18.0 million in Q3 2024, driven by advancements in internal programs [9] - The net loss for Q3 2025 was $28.7 million, compared to a net loss of $27.4 million in Q3 2024 [10]

Summary of Absci's Healthcare Innovation Conference Call Company Overview - **Company**: Absci - **Industry**: Biopharmaceuticals, specifically focusing on generative AI drug creation and antibody development - **Key Personnel**: Sean McClain (CEO), Zach Johansson (CFO and CBO) [1][2] Core Technology and Strategy - Absci originally focused on protein-protein interactions and has evolved to utilize generative AI for drug creation, particularly antibodies [3][4] - The company aims to target hard-to-drug biological targets, such as GPCRs and ion channels, leveraging their technology to create first-in-class and best-in-class assets [5] Lead Programs ABS-201 - **Target**: Prolactin receptor - **Indications**: - Androgenic alopecia (common baldness affecting 80 million Americans) - Endometriosis (to be discussed in future updates) [6][7] - **Mechanism**: Blocking the prolactin receptor can transition hair follicles from a catagen state (apoptosis) to an active growth state, showing superior efficacy compared to minoxidil in preclinical studies [6][10] - **Clinical Timeline**: - First participant dosing expected in December 2023 - Proof of concept readout anticipated in the second half of 2024 [6][13] Market Opportunity - The hair regrowth market is seen as a significant opportunity, with patients willing to pay out of pocket for effective treatments [7][10] - Current treatments like minoxidil and finasteride have limitations, including side effects and lack of condition modification [10][11] - The proposed treatment could provide long-lasting results with just two to three injections, potentially offering benefits for up to three years [11][17] Competitive Landscape - The hair regrowth market has seen little innovation, primarily dominated by finasteride and minoxidil [10] - Absci's approach is condition-modifying, which could differentiate it from existing treatments [11] - The company plans to engage both physicians and direct-to-consumer strategies for commercialization [17][18] Financial Position - As of Q2, Absci had approximately $117.5 million in cash and equivalents, with an additional $64 million raised in July 2023 [42][43] - The current financial runway extends into the first half of 2028, allowing for the advancement of multiple programs [42] Upcoming Catalysts - Key upcoming events include: - Large pharma partnership announcement in the near term - Entry into the clinic with ABS-201 in December 2023 - Interim readout on the alopecia trial in the second half of 2024 [44] Additional Insights - The company is exploring other indications and potential partnerships, particularly in inflammatory bowel disease (IBD) [31][32] - There is a focus on safety and efficacy, with ongoing discussions about the mechanism of action and potential side effects of blocking the prolactin receptor [23][24] Conclusion Absci is positioned to make significant advancements in the biopharmaceutical industry with its innovative approach to drug development, particularly in the hair regrowth market. The upcoming clinical trials and potential partnerships could enhance its market presence and financial stability.