Core Insights - Absci collaborates with Oracle Cloud Infrastructure (OCI) and AMD to enhance its generative AI-driven drug discovery platform, aiming to accelerate biologics design cycles and reduce costs [1][2][3] Company Overview - Absci is a clinical-stage biotech company focused on advancing novel therapeutics using generative AI, with a mission to create better biologics for patients more quickly [5] - The company utilizes an Integrated Drug Creation™ platform that combines advanced AI models with a synthetic biology data engine, facilitating rapid design and validation of therapeutics [5] Technology and Infrastructure - Absci has selected OCI as the technical foundation for developing AI models and scaling AI workflows, enabling large-scale molecular-dynamics simulations and end-to-end antibody design [2][3] - The collaboration leverages OCI's bare metal instances powered by 5th Generation AMD EPYC™ processors and ultrafast RDMA networking, providing low-latency networking and high throughput for model training and simulations [3][4] - The integration of AMD's next-generation Instinct™ MI355X GPUs further enhances the performance and scalability of Absci's AI Drug Creation Platform [2][4] Industry Impact - The partnership between Absci, OCI, and AMD exemplifies how AI can transform drug discovery processes, accelerating the development of novel therapeutics [4] - The collaboration aims to push the boundaries of biologics design by combining cutting-edge AI models with high-performance infrastructure [3][4]

Summary of the Conference Call Company Overview - The company discussed is Absci, which focuses on developing novel antibody therapeutics using AI-driven drug creation methods [1][2]. Industry and Market Context - Absci operates in the biotechnology sector, specifically in the development of biologics and antibody therapies, differentiating itself from companies focused on small molecules [2]. Key Points and Arguments Antibody Therapeutics Development - Absci aims to create differentiated antibody therapeutics targeting hard-to-drug biological targets, with its first clinical candidate, ABS101, expected to generate data in the second half of 2025 [1][2]. - The company emphasizes the importance of attributes such as affinity, developability, manufacturability, and immunogenicity in antibody design [2]. AI-Integrated Drug Creation Platform - The platform allows for rapid generation and validation of antibody candidates, enhancing the probability of success (POS) in clinical trials [2][4]. - The ability to target previously intractable biological targets is highlighted as a significant advantage of Absci's technology [3]. Strategic Shift in Business Model - Absci has shifted from a partnership-focused model to developing its internal pipeline, allowing it to reach value inflection points before partnering with larger pharmaceutical companies [10][11]. - The company plans to retain control over its flagship asset, ABS201, for androgenetic alopecia, aiming for commercialization without a partner [11][12]. ABS201 for Androgenetic Alopecia - ABS201 targets the prolactin receptor, which is implicated in hair follicle dormancy. Blocking this receptor may reactivate hair growth [13][14]. - The clinical program is in IND-enabling studies, with plans to enter the clinic in early 2026 [14]. - The U.S. market for androgenetic alopecia includes approximately 80 million individuals, indicating a substantial commercial opportunity [17]. Competitive Landscape - Absci's ABS201 is compared to a competitor's product from Hope Medicine, with Absci claiming superior stability, solubility, and dosing convenience [21][22]. - The company believes its product will require fewer doses, enhancing patient adherence and reducing costs [22]. Commercialization Strategy - The company anticipates a cash pay model for ABS201, as existing treatments have limitations that Absci aims to overcome [24][25]. - Dermatologists report a strong demand for new treatments, positioning Absci's product favorably in the market [24]. ABS101 for Inflammatory Bowel Disease (IBD) - ABS101 is designed to have higher affinity and potency compared to existing monoclonal antibodies for IBD, with a focus on convenient subcutaneous administration [28][29]. - Absci plans to partner for the development of ABS101, with ongoing discussions with multiple parties [31]. Financial Position - As of Q2, Absci reported a cash position of approximately $118 million, with additional gross proceeds of $64 million in July, providing a runway into the first half of 2028 [36]. - This financial stability supports upcoming clinical readouts and potential partnerships [36]. Additional Important Information - The company is planning an R&D day focused on the ABS201 program, indicating ongoing investor interest and potential updates on clinical progress [33]. - Absci expects to secure at least one new partnership with a large pharmaceutical company within the year [34].

Core Insights - The company is focused on generative design leveraging AI to tackle challenging problems in drug discovery, specifically targeting hard-to-drug areas like ion channels and GPCRs [1] - AI is seen as a tool to reduce timelines and costs while also enabling the exploration of novel biological targets that other technologies cannot address [1] Partnerships and Pipeline - The company has established partnerships with major pharmaceutical firms such as Merck, AstraZeneca, and Almirall, indicating strong industry collaboration [2] - The internal pipeline is focused on inflammation and immunology (I&I), with the first asset currently in clinical trials and a Phase Ia readout expected in the coming months [2]

Summary of Absci's Conference Call Company Overview - **Company**: Absci - **Industry**: Biotechnology, specifically focused on AI-driven drug discovery and development Key Points and Arguments 1. **Generative Design and AI Utilization**: Absci leverages AI to tackle challenging drug targets, such as ion channels and GPCRs, aiming to reduce timelines and costs in drug development [4][6][9] 2. **Pipeline Development**: Absci has a portfolio focused on INI, with the first asset in the clinic and a Phase 1A readout expected soon. Another asset targeting androgenetic alopecia (ABS-201) is anticipated to have a Phase 2 readout in the second half of next year [4][5][31] 3. **Competitive Landscape**: The rise of biotech innovation, particularly from China, has influenced Absci's strategy to focus on hard-to-drug targets and maintain differentiation in the market [6][7] 4. **AI's Impact on Drug Discovery**: AI is significantly shortening the drug discovery timeline and reducing costs. For example, the TL1A asset was brought to the clinic in approximately 24 months at a cost of around $15 million, compared to the traditional timeline of 5.5 years and costs of $30 to $100 million [9][10] 5. **Regulatory Environment**: Absci has not been significantly impacted by recent regulatory changes, as it conducts Phase 1 clinical work in Australia, which is more cost-effective [14] 6. **Proprietary AI Platform**: The company's AI platform features a "wet-lab-in-the-loop" approach, allowing for rapid iteration and model improvement, which is crucial for addressing complex drug targets [15][16] 7. **Challenges in Drug Design**: Designing antibodies for difficult targets like ion channels and GPCRs is challenging due to limited surface exposure. Absci's AI models can generate antibodies that effectively target these areas [19][20] 8. **Market Opportunity for ABS-201**: The market for treating androgenetic alopecia is estimated to be around $10 billion, with potential for significant growth if pigmentation restoration is achieved. The product aims to provide a more convenient and effective treatment compared to existing options [36][37] 9. **Partnership Strategy**: Absci is actively engaging with large pharma for partnerships, particularly for the TL1A program, with potential transactions expected after key readouts [25][46] 10. **Long-term Business Model**: Absci plans to validate molecules and potentially out-license them to large pharma, while retaining the ability to take certain programs, like ABS-201, deeper into clinical development [40][41] Additional Important Insights - **Data Sovereignty**: Absci retains ownership of data generated during partnerships, which helps improve their models and supports ongoing innovation [46][48] - **Resource Allocation**: The company is committed to advancing ABS-201 and ABS-101 while also investing in platform capabilities to create new assets [49][51] - **Future Outlook**: Absci has a financial runway into the first half of 2028, allowing it to navigate key clinical milestones and potential partnerships [54]

Core Insights - Absci is advancing ABS-201, an AI-designed therapeutic antibody for treating androgenetic alopecia, with guidance from renowned dermatologists [1][4][5] - Androgenetic alopecia affects approximately 80 million Americans, with current FDA-approved treatments showing limited efficacy [2] - ABS-201 targets prolactin receptors to stimulate hair follicle regeneration, demonstrating superior hair regrowth compared to minoxidil in preclinical studies [3] Company Overview - Absci is a clinical-stage biotech company utilizing generative AI for drug discovery, aiming to create better biologics faster [7][8] - The company’s Integrated Drug Creation™ platform combines AI models with synthetic biology to innovate therapeutics [7] - Absci is headquartered in Vancouver, WA, with additional facilities in New York City and Switzerland [8] Scientific Advisory Board - Dr. Rodney Sinclair and Dr. David Goldberg have joined the ABS-201 Scientific Advisory Board, bringing extensive expertise in dermatology and hair loss [1][4][6] - Dr. Sinclair has over three decades of experience and has authored over 1000 publications in dermatology [4][5] - Dr. Goldberg has nearly four decades of clinical experience and has conducted pivotal research studies in hair loss, including original Minoxidil trials [5][6] Clinical Development - Phase 1/2a clinical trials for ABS-201 are set to begin in early 2026, with initial proof-of-concept data expected in the second half of 2026 [3] - The novel mechanism of action of ABS-201 offers potential for a durable therapy, addressing the limitations of current treatments that require continuous usage [5][6]

Core Viewpoint - Absci Corporation (ABSI) reported a quarterly loss of $0.24 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, indicating a negative earnings surprise of -26.32% [1] Financial Performance - The company posted revenues of $0.59 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 74.44%, compared to revenues of $1.27 million in the same quarter last year [2] - Over the last four quarters, the company has only surpassed consensus EPS estimates once [2] Stock Performance - Absci Corporation shares have increased by approximately 8.8% since the beginning of the year, outperforming the S&P 500's gain of 8.4% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $9.2 million, and for the current fiscal year, it is -$0.68 on revenues of $15.19 million [7] - The estimate revisions trend for Absci Corporation was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Absci Corporation belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8]

Financial Data and Key Metrics Changes - Revenue in the second quarter was $600,000, reflecting ongoing progress in partner programs [19] - Research and development expenses increased to $20.5 million from $15.3 million in the prior year, driven by advancements in internal programs and increased personnel costs [20] - Selling, general and administrative expenses decreased to $8.5 million from $9.3 million in the prior year, primarily due to a reduction in stock compensation expense [20] - Cash, cash equivalents, and short-term investments as of June 30, 2025, were $117.5 million, down from $134 million as of March 31, 2025 [21] - The company raised approximately $64 million in gross proceeds post-quarter, enhancing its balance sheet and funding operations into 2028 [21][22] Business Line Data and Key Metrics Changes - The company initiated phase one clinical trials for AVS-101, a potential best-in-class anti-T1A antibody, with interim results expected later this year [6][7] - ABS-201, an innovative anti-prolactin receptor antibody for androgenetic alopecia, is on track for a phase one 2A trial initiation in early 2026, with interim efficacy data anticipated later that year [9][24] - The company continues to progress on several additional programs, including ABS-301 and AVS-501, targeting difficult-to-drug indications [10] Market Data and Key Metrics Changes - The ABS-201 program targets a market of approximately 80 million adults in the US affected by androgenetic alopecia, with no significant therapeutic innovation in nearly 30 years [8] - The company is engaged with multiple interested parties regarding potential transactions for ABS-101 following positive clinical data readouts [16] Company Strategy and Development Direction - The company aims to out-license or sell internal and co-developed programs following value inflection points, focusing on maximizing shareholder value [15][16] - The strategy includes developing ABS-201 through later stages of clinical development and potentially commercialization, given its straightforward clinical development pathway [18] - The company is also focused on advancing its AI-integrated drug creation platform, which enhances its pipeline and offers a differentiated value proposition for potential partners [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strengthened financial position and the ability to advance internal programs, including ABS-201 [22][23] - The company anticipates multiple major catalysts over the next 18 months, including interim readouts for ABS-101 and ABS-201 [23][24] - Management highlighted the importance of partnerships and ongoing discussions with large pharma companies, expecting to sign at least one partnership this year [66] Other Important Information - AMD made a $20 million strategic investment in the company, reflecting confidence in its AI-driven drug creation platform [12] - The company plans to provide updates on additional early-stage programs at a later date [11] Q&A Session Summary Question: What kind of data can be expected from the first TL1A data readout later this year? - Approximately 40 healthy volunteers will be dosed for the AVS-101 Phase I study, with pharmacokinetic and immunogenicity data expected at the interim readout [26][28] Question: What is the current plan for ABS-201 in terms of formulation and dosing? - The plan includes a subcutaneous formulation with a six-month treatment cycle, potentially involving two or three doses [31][34] Question: What is the long-term vision to remain competitive in AI-based drug discovery? - The focus is on de novo antibody creation targeting difficult-to-drug targets, with successful partnerships indicating strong capabilities [40][42] Question: What are the next preclinical milestones for ABS-301 and ABS-501? - Additional in vivo work is required to complete the drug development package, with plans to partner these programs early [52][55] Question: Will there be revenue recognition from partners? - Yes, revenue will be milestone-oriented and may be lumpy, with expectations of large upfront and milestone payments [60][63] Question: What is the development plan for ABS-201? - After the Phase I, 2A trial, a worldwide Phase II, III trial is planned, with potential approval anticipated around 2030-2031 [78][81]

[Risk Factor Summary](index=3&type=section&id=RISK%20FACTOR%20SUMMARY) This section highlights the **speculative** nature of investing in common stock due to development uncertainties, **limited operating history**, and intense market competition - Investment in common stock is **speculative** due to uncertainties in program development, **limited operating history**, and expected future losses[7](index=7&type=chunk) - The company will need to raise **additional capital** to fund operations and platform improvements, with potential adverse effects if unsuccessful[7](index=7&type=chunk) - Biologic drug development is **inherently uncertain**; product candidates may not achieve regulatory milestones or commercial viability, impacting revenue[7](index=7&type=chunk) - The biopharmaceutical platform technology market is **highly competitive**, posing risks to revenue and profitability if the company cannot compete successfully[7](index=7&type=chunk) [Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary note regarding forward-looking statements, their inherent uncertainties, and potential material differences from actual results - Forward-looking statements relate to plans, objectives, future events, revenue, and performance, often identified by terms like "may," "expects," "plans," "anticipates," "believes," "estimates," and "potential"[9](index=9&type=chunk) - Actual results may differ materially from forward-looking statements due to a competitive and rapidly changing environment, and new, unpredictable risks[12](index=12&type=chunk) - Key forward-looking statements include expectations for internally developed and partnered programs, clinical trials, regulatory approvals, platform adoption, market growth, ability to attract partners, and financial estimates[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [Part I. Financial Information (Unaudited)](index=7&type=section&id=Part%20I%20Financial%20Information%20(Unaudited)) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the interim period [Item 1. Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Absci Corporation's unaudited financial statements, covering balance sheets, operations, equity, and cash flows [Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) This table presents the company's unaudited condensed consolidated balance sheets, detailing assets, liabilities, and equity as of the specified dates | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | **Assets** | | | | | Cash and cash equivalents | $38,024 | $41,213 | $(3,189) | | Restricted cash | $16,209 | $15,947 | $262 | | Short-term investments | $79,434 | $71,212 | $8,222 | | Accounts receivable, net | $700 | $0 | $700 | | Prepaid expenses and other current assets | $3,037 | $5,459 | $(2,422) | | Total current assets | $137,404 | $133,831 | $3,573 | | Operating lease right-of-use assets | $3,457 | $3,968 | $(511) | | Property and equipment, net | $24,063 | $29,167 | $(5,104) | | Intangibles, net | $43,198 | $44,883 | $(1,685) | | Restricted cash, long-term | $1,054 | $1,054 | $0 | | Other long-term assets | $716 | $705 | $11 | | **TOTAL ASSETS** | **$209,892** | **$213,608** | **$(3,716)** | | **Liabilities** | | | | | Accounts payable | $8,206 | $3,529 | $4,677 | | Accrued expenses | $5,715 | $6,842 | $(1,127) | | Contingent consideration | $12,750 | $12,750 | $0 | | Long-term debt (current) | $1,986 | $2,733 | $(747) | | Operating lease obligations (current) | $1,705 | $1,608 | $97 | | Financing lease obligations (current) | $7 | $78 | $(71) | | Deferred revenue | $954 | $1,116 | $(162) | | Total current liabilities | $31,323 | $28,656 | $2,667 | | Long-term debt, net of current portion | $161 | $1,257 | $(1,096) | | Operating lease obligations, net of current portion | $3,553 | $4,429 | $(876) | | Other long-term liabilities | $1,482 | $133 | $1,349 | | **TOTAL LIABILITIES** | **$36,519** | **$34,475** | **$2,044** | | **Stockholders' Equity** | | | | | Common stock | $13 | $12 | $1 | | Additional paid-in capital | $739,565 | $688,726 | $50,839 | | Accumulated deficit | $(566,516) | $(509,601) | $(56,915) | | Accumulated other comprehensive income (loss) | $311 | $(4) | $315 | | **TOTAL STOCKHOLDERS' EQUITY** | **$173,373** | **$179,133** | **$(5,760)** | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$209,892** | **$213,608** | **$(3,716)** | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2025 and 2024](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This table provides the company's unaudited condensed consolidated statements, outlining financial performance and cash flow activities for the specified periods | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Partner program revenue | $593 | $1,270 | $1,772 | $2,168 | | Research and development | $20,458 | $15,261 | $36,822 | $27,497 | | Selling, general and administrative | $8,528 | $9,346 | $18,000 | $18,090 | | Depreciation and amortization | $3,000 | $3,384 | $6,072 | $6,800 | | Total operating expenses | $31,986 | $27,991 | $60,894 | $52,387 | | Operating loss | $(31,393) | $(26,721) | $(59,122) | $(50,219) | | Interest expense | $(56) | $(150) | $(135) | $(326) | | Other income, net | $1,011 | $2,121 | $2,469 | $3,832 | | Total other income, net | $955 | $1,971 | $2,334 | $3,506 | | Loss before income taxes | $(30,438) | $(24,750) | $(56,788) | $(46,713) | | Income tax benefit (expense) | $(131) | $0 | $(127) | $(12) | | Net loss | $(30,569) | $(24,750) | $(56,915) | $(46,725) | | Net loss per share: Basic and diluted | $(0.24) | $(0.22) | $(0.45) | $(0.44) | | Weighted-average common shares outstanding: Basic and diluted | 127,592,948 | 112,934,086 | 126,035,844 | 106,163,709 | | Comprehensive loss | $(30,277) | $(24,732) | $(56,600) | $(46,802) | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This table provides the company's unaudited condensed consolidated statements, outlining financial performance and cash flow activities for the specified periods | Metric | Balances - Dec 31, 2024 | Balances - June 30, 2025 | | :------------------------------------ | :---------------------- | :---------------------- | | Common Stock (Shares) | 115,362,265 | 127,677,180 | | Common Stock (Amount) | $12 | $13 | | Additional Paid-In Capital | $688,726 | $739,565 | | Accumulated Deficit | $(509,601) | $(566,516) | | Accumulated Other Comprehensive Income (Loss) | $(4) | $311 | | **Total Stockholders' Equity** | **$179,133** | **$173,373** | - Issuance of common shares (net of costs) **contributed $39.16 million** to additional paid-in capital for the three months ended March 31, 2025[21](index=21&type=chunk) - Stock-based compensation expense **totaled $4.91 million** for the three months ended March 31, 2025, and **$4.75 million** for the three months ended June 30, 2025[21](index=21&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This table provides the company's unaudited condensed consolidated statements, outlining financial performance and cash flow activities for the specified periods | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(38,712) | $(34,706) | | Net cash used in investing activities | $(6,005) | $(75,426) | | Net cash provided by financing activities | $41,790 | $81,050 | | **Net increase (decrease) in cash, cash equivalents, and restricted cash** | **$(2,927)** | **$(29,082)** | - **Operating cash outflow increased by $4.0 million year-over-year**, primarily due to increased research and development costs[112](index=112&type=chunk) - **Net cash provided by financing activities in 2025 included $41.7 million from common stock issuance (PIPE with AMD and ATM) and $1.9 million from employee equity plans**[115](index=115&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, offering context and additional information on key financial items [1. Organization and nature of operations](index=12&type=section&id=1.%20Organization%20and%20nature%20of%20operations) This section describes the company's core business as a clinical-stage biopharmaceutical company leveraging generative AI for antibody therapeutics - **Absci Corporation is a clinical-stage biopharmaceutical company that uses generative AI to advance breakthrough antibody therapeutics**[26](index=26&type=chunk) - The company's Integrated Drug Creation platform utilizes AI models to design improved antibody therapeutics, including for challenging targets[26](index=26&type=chunk) [2. Revenue recognition](index=12&type=section&id=2.%20Revenue%20recognition) This section details the company's revenue recognition policies and highlights the concentration of partner program revenue - **Contract liabilities (deferred revenue) decreased from $1.1 million at December 31, 2024, to $1.0 million at June 30, 2025**[30](index=30&type=chunk) - For the three and six months ended June 30, 2025, two partners represented **approximately 99%** and three partners represented **100% of total partner program revenue**, respectively, indicating high revenue concentration[31](index=31&type=chunk) [3. Collaborative arrangements](index=12&type=section&id=3.%20Collaborative%20arrangements) This section outlines the company's collaborative arrangements for joint research and development, including cost-sharing mechanisms - Absci has collaborative arrangements with PrecisionLife, Memorial Sloan Kettering Cancer Center, Twist Bioscience, and Owkin for joint research and development[32](index=32&type=chunk) - These arrangements involve co-development of product candidates, sharing potential value and costs, with cost-sharing payments recorded as R&D expense[32](index=32&type=chunk) - No cost-sharing payments related to collaborative arrangements were made during the three or six months ended June 30, 2025, and 2024[32](index=32&type=chunk) [4. Investments](index=12&type=section&id=4.%20Investments) This section details the company's investment portfolio, including money market funds and U.S. treasuries, and their fair value measurements | Asset Type | Amortized Cost (June 30, 2025) | Fair Market Value (June 30, 2025) | Amortized Cost (Dec 31, 2024) | Fair Market Value (Dec 31, 2024) | | :----------------- | :----------------------------- | :------------------------------ | :----------------------------- | :------------------------------ | | Money market funds | $8,404 | $8,404 | $2,134 | $2,134 | | U.S. treasuries | $79,459 | $79,434 | $71,151 | $71,212 | | **Total** | **$87,863** | **$87,838** | **$73,285** | **$73,346** | - Investments held as of June 30, 2025, have a remaining maturity of **less than one year**[34](index=34&type=chunk) - **Proceeds from maturities of available-for-sale securities were $51.0 million for the six months ended June 30, 2025, compared to $89.1 million for the same period in 2024**[34](index=34&type=chunk) [5. Fair value measurements](index=13&type=section&id=5.%20Fair%20value%20measurements) This section describes the fair value measurements of assets and liabilities, particularly contingent consideration, categorized by valuation levels | Category | Level 1 (June 30, 2025) | Level 2 (June 30, 2025) | Level 3 (June 30, 2025) | Total (June 30, 2025) | | :---------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | **Assets:** | | | | | | Money market funds | $8,404 | $0 | $0 | $8,404 | | U.S. treasuries | $5,000 | $74,434 | $0 | $79,434 | | **Total assets** | **$13,404** | **$74,434** | **$0** | **$87,838** | | **Liabilities:** | | | | | | Contingent consideration | $0 | $0 | $12,750 | $12,750 | | **Total liabilities** | **$0** | **$0** | **$12,750** | **$12,750** | - The **contingent consideration liability of $12.75 million**, related to the Totient, Inc. acquisition, is a **Level 3 fair value measurement** based on a probability-weighted approach[40](index=40&type=chunk) - There was **no change to the value of Level 3 liabilities** for the six months ended June 30, 2025[40](index=40&type=chunk) [6. Commitments and contingencies](index=15&type=section&id=6.%20Commitments%20and%20contingencies) This section outlines the company's contractual commitments and potential contingencies, including future payment obligations | Year | Commitment | | :--- | :--------- | | 2025 | $1.4 | | 2026 | $4.6 | | 2027 | $8.3 | | 2028 | $2.3 | [7. Common stock](index=15&type=section&id=7.%20Common%20stock) This section details common stock activities, including shelf registration, at-the-market offerings, and private investment in public equity (PIPE) transactions - The company has a shelf registration statement on Form S-3 for **up to $250.0 million** in securities, effective September 2, 2022[43](index=43&type=chunk) - During the six months ended June 30, 2025, 5,269,192 shares were issued under an "at the market offering" program, **generating $21.7 million in net proceeds**[44](index=44&type=chunk) - In January 2025, **AMD invested $20.0 million** through a PIPE for 5,714,285 shares, including **a $2.5 million premium** recognized as a credit to R&D expense[45](index=45&type=chunk) [8. Stock-based compensation](index=15&type=section&id=8.%20Stock-based%20compensation) This section provides an overview of stock-based compensation expenses and unrecognized compensation for stock options and restricted stock units | Expense Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Research and development | $2,015 | $1,913 | $4,038 | $3,567 | | Selling, general and administrative | $2,737 | $3,383 | $5,659 | $5,326 | | **Total** | **$4,752** | **$5,296** | **$9,697** | **$8,893** | - As of June 30, 2025, **unrecognized stock-based compensation for stock options was $25.2 million**, expected to be recognized **over 2.2 years**[48](index=48&type=chunk) - As of June 30, 2025, **unrecognized compensation expense for restricted stock units was $6.6 million**, expected to be recognized **over 2.0 years**[50](index=50&type=chunk) [9. Net loss per share](index=16&type=section&id=9.%20Net%20loss%20per%20share) This section presents the calculation of net loss per share, including basic and diluted figures and the treatment of potentially dilutive securities | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net loss per share: Basic and diluted | $(0.24) | $(0.22) | $(0.45) | $(0.44) | | Weighted-average common shares outstanding: Basic and diluted | 127,592,948 | 112,934,086 | 126,035,844 | 106,163,709 | - Potentially dilutive securities (stock options, RSUs, ESPP) **totaling 25,915,175 shares** as of June 30, 2025, were excluded from diluted EPS calculations because their effect would be **anti-dilutive**[52](index=52&type=chunk)[53](index=53&type=chunk) [10. Segment reporting](index=18&type=section&id=10.%20Segment%20reporting) This section clarifies that the company operates as a single reportable segment and provides a breakdown of operating expenses by category - **Absci Corporation operates as a single reportable segment**, managed on a consolidated basis by the Chief Executive Officer[56](index=56&type=chunk)[57](index=57&type=chunk) | Expense Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Drug creation programs and platform | $5,290 | $3,862 | $9,295 | $7,491 | | External preclinical and clinical development | $5,370 | $2,299 | $8,054 | $2,326 | | Personnel | $10,283 | $9,398 | $20,148 | $19,324 | | Stock-based compensation | $4,752 | $5,296 | $9,697 | $8,893 | | General & administrative | $3,291 | $3,752 | $7,628 | $7,553 | | Depreciation and amortization | $3,000 | $3,384 | $6,072 | $6,800 | | **Total operating expenses** | **$31,986** | **$27,991** | **$60,894** | **$52,387** | [11. Subsequent events](index=18&type=section&id=11.%20Subsequent%20events) This section discloses significant events occurring after the reporting period, including additional common stock sales and public offerings - **Subsequent to June 30, 2025, the company sold 5,108,560 shares of common stock for $14.0 million net proceeds via an "at the market offering."**[60](index=60&type=chunk) - **On July 28, 2025, the company sold 16,670,000 shares in a public offering at $3.00 per share, with expected net proceeds of approximately $46.7 million**[61](index=61&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, discussing the business overview, key factors influencing performance, detailed analysis of revenue and operating expenses, liquidity and capital resources, critical accounting estimates, and its status as an emerging growth company. It highlights the company's focus on its AI-driven Integrated Drug Creation platform and its evolving business model [Overview](index=19&type=section&id=Overview) This overview describes Absci's AI-driven drug creation platform, its business model, and key financial highlights for the reporting period - **Absci's Integrated Drug Creation platform uses generative AI to design antibody therapeutics, aiming to shorten time to clinic and increase success probability**[62](index=62&type=chunk) - The business model focuses on monetizing the platform through internally developed programs (partnered after value inflection points) and collaborations with third parties for early discovery[63](index=63&type=chunk) - For the six months ended June 30, 2025, **revenue was $1.8 million (down from $2.2 million in 2024), and net loss was $56.9 million (up from $46.7 million in 2024)**[68](index=68&type=chunk) - **Research and development expenses increased by $9.3 million (34%) for the six months ended June 30, 2025, compared to the same period in 2024**[68](index=68&type=chunk) [Key factors affecting our results of operations and future performance](index=20&type=section&id=Key%20factors%20affecting%20our%20results%20of%20operations%20and%20future%20performance) This section identifies critical factors influencing the company's operational results and future prospects, including program development and partnerships - Key factors include developing internally developed programs (ABS-101 for IBD, ABS-201 for AGA), establishing partnerships, successfully completing drug creation and licensing, and continued R&D investment[70](index=70&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - **ABS-101 (IBD) initiated Phase 1 clinical trial in May 2025, with an interim readout anticipated in H2 2025 and Phase 1b/2a by H1 2026**[64](index=64&type=chunk)[76](index=76&type=chunk) - **ABS-201 (androgenetic alopecia) anticipates an IND filing in H1 2026 and an interim Phase 1 readout in H2 2026**[64](index=64&type=chunk)[77](index=77&type=chunk) - **A strategic collaboration with AMD in January 2025 aims to optimize AMD accelerators for Absci's AI drug creation, supported by a $20.0 million PIPE investment**[78](index=78&type=chunk) [Components of Results of Operations](index=22&type=section&id=Components%20of%20Results%20of%20Operations) This section breaks down the key components of the company's results of operations, including revenue, operating expenses, and other income/expense [Revenue](index=22&type=section&id=Revenue) This section explains the sources of revenue, primarily from partner drug creation agreements, and factors influencing its fluctuation - Revenue primarily consists of fees from partner drug creation agreements, paid upfront, upon project-based milestones, and throughout the program[79](index=79&type=chunk) - Revenue is expected to fluctuate due to timing of partnerships and milestones, but is anticipated to increase long-term as licenses are granted and product candidates advance[80](index=80&type=chunk) [Operating Expenses](index=23&type=section&id=Operating%20Expenses) This section details the various categories of operating expenses, including research and development, selling, general, and administrative, and depreciation - Research and development expenses include personnel, contract services, lab supplies, and technology costs, expected to increase with program advancement and technology enhancements[81](index=81&type=chunk)[82](index=82&type=chunk) - Selling, general, and administrative expenses cover executive, business development, legal, finance, HR, IT, professional services, and intellectual property costs[83](index=83&type=chunk)[85](index=85&type=chunk) - Depreciation and amortization expense relates to property, equipment, and intangibles, expected to fluctuate with growth and compute demands[86](index=86&type=chunk) [Other income (expense)](index=23&type=section&id=Other%20income%20(expense)) This section describes the components of other income and expense, primarily interest expense and net interest income - Interest expense primarily relates to term debt and financed laboratory equipment[87](index=87&type=chunk) - Other income, net, mainly comprises interest income from cash, cash equivalents, and short-term investments, and foreign currency transaction gains/losses[88](index=88&type=chunk) [Results of Operations (Comparison of the Three and Six Months Ended June 30, 2025 and 2024)](index=24&type=section&id=Results%20of%20Operations%20(Comparison%20of%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024)) This section provides a comparative analysis of the company's financial performance for the three and six months ended June 30, 2025 and 2024 [Revenue](index=24&type=section&id=Revenue) This section compares revenue performance for the current and prior periods, highlighting changes and underlying drivers | Period | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $593 | $1,270 | $(677) | (53)% | | Six Months Ended June 30, | $1,772 | $2,168 | $(396) | (18)% | - **Revenue decrease was driven by the timing of project-based milestones and the mix of ongoing program activity**[90](index=90&type=chunk) - **Revenue concentration remained high, with two partners representing ~99% of revenue for the three months and three partners representing 100% for the six months ended June 30, 2025**[90](index=90&type=chunk) [Operating expenses](index=25&type=section&id=Operating%20expenses) This section compares operating expenses across periods, detailing changes in research and development, SG&A, and depreciation | Expense Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | $ Change | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Research and development | $20,458 | $15,261 | $5,197 | 34% | | Selling, general and administrative | $8,528 | $9,346 | $(818) | (9)% | | Depreciation and amortization | $3,000 | $3,384 | $(384) | (11)% | | **Total operating expenses** | **$31,986** | **$27,991** | **$3,995** | **14%** | | | | | | | | Expense Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | $ Change | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Research and development | $36,822 | $27,497 | $9,325 | 34% | | Selling, general and administrative | $18,000 | $18,090 | $(90) | —% | | Depreciation and amortization | $6,072 | $6,800 | $(728) | (11)% | | **Total operating expenses** | **$60,894** | **$52,387** | **$8,507** | **16%** | - **R&D expenses increased primarily due to advancement of drug creation programs ($4.6 million for 3 months, $7.7 million for 6 months) and personnel costs**[92](index=92&type=chunk)[93](index=93&type=chunk) - **SG&A expenses decreased for the three months** due to lower stock-based compensation and administrative costs, and **remained relatively flat for the six months**[94](index=94&type=chunk)[95](index=95&type=chunk) - **Depreciation and amortization decreased due to disposals of lab equipment**[96](index=96&type=chunk) [Other income (expense)](index=26&type=section&id=Other%20income%20(expense)) This section compares other income and expense items, including interest and net other income, explaining period-over-period changes | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | $ Change | % Change | | :---------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Interest expense | $(56) | $(150) | $94 | (63)% | | Other income, net | $1,011 | $2,121 | $(1,110) | (52)% | | **Total other income, net** | **$955** | **$1,971** | **$(1,016)** | **(52)%** | | | | | | | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | $ Change | % Change | | :---------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Interest expense | $(135) | $(326) | $191 | (59)% | | Other income, net | $2,469 | $3,832 | $(1,363) | (36)% | | **Total other income, net** | **$2,334** | **$3,506** | **$(1,172)** | **(33)%** | - The **decrease in other income, net, was primarily due to fluctuations in foreign currency transactions**[98](index=98&type=chunk)[99](index=99&type=chunk) - **Interest expense decreased due to reduced finance lease and long-term debt obligations**[97](index=97&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial liquidity, capital resources, and future funding requirements, including cash position and financing activities [Overview](index=26&type=section&id=Overview) This overview summarizes the company's cash position, accumulated deficit, and ongoing need for additional capital to fund operations - As of June 30, 2025, cash, cash equivalents, and short-term investments **totaled $117.5 million**[100](index=100&type=chunk) - **Subsequent to June 30, 2025, the company raised an additional $60.6 million in net proceeds from common stock sales**[100](index=100&type=chunk) - The company has an **accumulated deficit of $566.5 million as of June 30, 2025**, and expects to continue incurring significant expenses[101](index=101&type=chunk) - Future capital requirements depend on internally developed programs, partnerships, and technology advancements, potentially requiring additional equity or debt financing[102](index=102&type=chunk) [Sources of liquidity](index=26&type=section&id=Sources%20of%20liquidity) This section details the primary sources of the company's liquidity, including equity issuances, debt, and revenue from drug creation agreements - Operations are primarily financed by equity issuances, debt, and revenue from drug creation agreements[103](index=103&type=chunk) - As of June 30, 2025, the **outstanding balance on equipment financing agreements was $2.1 million**[104](index=104

Core Insights - Absci Corporation has strengthened its balance sheet by raising approximately $64 million in gross proceeds in July 2025, ensuring sufficient cash, cash equivalents, and short-term investments to fund operations into the first half of 2028 [1][7][11] - The company has expanded its collaboration with Almirall, electing a second target focused on dermatological indications, following the successful delivery of AI-designed functional antibodies [5][2] - The ongoing clinical trials for ABS-101 and ABS-201 are progressing, with key milestones anticipated in the near future [2][5] Financial Performance - For the second quarter of 2025, Absci reported revenue of $0.6 million, a decrease from $1.3 million in the same period of 2024 [8] - Research and development expenses increased to $20.5 million in Q2 2025 from $15.3 million in Q2 2024, driven by advancements in internal programs [9] - Selling, general, and administrative expenses decreased to $8.5 million in Q2 2025 from $9.3 million in Q2 2024, primarily due to a reduction in stock compensation expense [10] - The net loss for Q2 2025 was $30.6 million, compared to a net loss of $24.8 million in Q2 2024 [10] Pipeline and Collaborations - ABS-101 is currently in a Phase 1 clinical trial, with interim data readout expected in the second half of 2025 [5][6] - ABS-201, targeting androgenetic alopecia, is on track to enter clinical trials in early 2026, with an interim efficacy readout anticipated in the second half of 2026 [5][6] - The collaboration with AMD aims to scale Absci's AI Drug Creation platform, supported by a $20 million strategic equity investment from AMD [5] Asset Overview - As of June 30, 2025, Absci's cash, cash equivalents, and short-term investments totaled $117.5 million, down from $134.0 million as of March 31, 2025 [11] - The company has a total asset value of $209.9 million as of June 30, 2025, with total liabilities of $36.5 million [20][21]

Core Insights - Almirall and Absci Corporation are expanding their AI Drug Discovery collaboration to include a second target for dermatological indications, building on the success of their initial collaboration [1][2][4] - The collaboration leverages Absci's Integrated Drug Creation™ platform and Almirall's dermatology expertise to accelerate the development of innovative therapeutics for chronic skin diseases [2][3] - Absci is eligible for up to approximately $650 million in payments across both programs, in addition to royalties on potential product sales [3] Company Overview - Almirall is a global biopharmaceutical company focused on medical dermatology, founded in 1944 and headquartered in Barcelona, with total revenue of €990 million in 2024 and over 2000 employees globally [5][6] - Absci is a clinical-stage biopharmaceutical company that utilizes generative AI for drug discovery, aiming to create better biologics faster [8][9] Collaboration Details - The initial collaboration, announced in November 2023, successfully delivered AI-designed functional antibody leads against a difficult-to-drug target [2][4] - Absci's generative AI platform is combined with wet lab capabilities to design and validate therapeutic candidates, while Almirall leads the preclinical and clinical development [3][4] - The collaboration aims to accelerate innovation in dermatology by utilizing generative AI for new therapeutic approaches [4]