Core Insights - Absci Corporation, a data-first generative AI drug creation company, will participate in the TD Cowen 45th Annual Health Care Conference in Boston, MA [1] - The management of Absci is scheduled for a fireside chat on March 3 at 3:10 p.m. Eastern Time, with a live and archived webcast available [2] - Absci's Integrated Drug Creation™ platform combines AI with scalable wet lab technologies to accelerate drug development and increase success rates [3] Company Overview - Absci specializes in generative AI for drug creation, aiming to produce better biologics more quickly for patients [3] - The company can screen billions of cells weekly, transitioning from AI-designed candidates to wet lab-validated candidates in as little as six weeks [3] - Absci operates from Vancouver, WA, with an AI Research Lab in New York City and an Innovation Center in Zug, Switzerland [3]

Core Insights - Absci Corporation is a data-first generative AI drug creation company that will participate in the Guggenheim Securities SMID Cap Biotech Conference in New York on February 5, 2025 [1][2]. Company Overview - Absci combines AI with scalable wet lab technologies to enhance the development of biologics, aiming to accelerate the time to clinic and improve the probability of success by optimizing multiple drug characteristics simultaneously [3]. - The company's Integrated Drug Creation™ platform allows for the screening of billions of cells weekly, enabling a transition from AI-designed candidates to wet lab-validated candidates in as little as six weeks [3]. - Absci's headquarters is located in Vancouver, WA, with additional facilities including an AI Research Lab in New York City and an Innovation Center in Zug, Switzerland [3].

Core Insights - Absci Corporation (NASDAQ: ABSI) is positioned as a promising biotech company at the intersection of AI and Synthetic Biology, which could accelerate drug discovery processes [1] Company Overview - Absci utilizes AI technology to generate antibodies, leveraging its extensive capabilities in synthetic biology [1]

Partnership Overview - Absci Corporation and Owkin announced a strategic partnership to combine their AI platforms for the discovery and design of novel therapeutics [1] - The collaboration aims to accelerate the development of first-in-class therapeutics by leveraging Absci's AI de novo design models and Owkin's predictive AI target discovery technology [1][2] - The partnership will focus on co-developing therapeutic candidates in immuno-oncology, immunology, and inflammation [2] Technology and Capabilities - Owkin's predictive AI models will optimize target selection and validate therapeutic hypotheses using extensive biomedical datasets and patient-derived organoids [2] - Absci's generative AI Drug Creation platform, including its de novo antibody design models, will rapidly design therapeutic candidates against novel targets [2] - The combined technologies aim to streamline and accelerate the path from research to clinical development [2] Strategic Impact - The partnership builds on Absci's growing portfolio of collaborations with industry leaders such as AstraZeneca and Merck [3] - Absci has added four new drug creation partnerships in 2024, achieving its outlook for the year [3] - Owkin has established itself as a pioneer in predictive AI, working with top-tier pharmaceutical companies like Sanofi and BMS [3] Company Background - Absci is a data-first generative AI drug creation company that combines AI with scalable wet lab technologies to accelerate the development of biologics [4] - The company's Integrated Drug Creation™ platform can screen billions of cells per week, enabling the transition from AI-designed antibodies to wet lab-validated candidates in as little as six weeks [4] - Owkin is an end-to-end AI biotech company focused on understanding complex biology and developing precision therapeutics, diagnostics, and de-risking clinical trials [5] - Owkin has raised over $300 million from leading biopharma companies and venture funds [5] Future Directions - The collaboration aims to bring transformative therapies to patients by combining Owkin's AI agents for target identification and validation with Absci's capabilities in developing biologic drug candidates [3] - The partnership represents a significant step forward in leveraging AI to accelerate the delivery of next-generation treatments [3]

Core Insights - Absci Corporation has announced a strategic collaboration with AMD, which includes a $20 million equity investment to enhance AI drug discovery capabilities [1][2][3] - The partnership aims to optimize AI solutions for complex biological modeling, improving performance, reducing costs, and accelerating innovation cycles in drug development [2][3] Company Overview - Absci is a data-first generative AI drug creation company that integrates AI with scalable wet lab technologies to expedite the development of biologics [4] - The company’s Integrated Drug Creation platform allows for rapid screening of billions of cells weekly, enabling a transition from AI-designed candidates to wet lab-validated candidates in as little as six weeks [4] AMD's Role - AMD will provide its Instinct accelerators and ROCm software to support Absci's AI drug discovery workloads, particularly in advanced antibody design [1][2] - AMD's high-performance computing solutions are tailored for demanding AI workloads, making them a suitable partner for Absci's innovative drug discovery efforts [3][5] Strategic Importance - The collaboration is positioned to enhance Absci's ability to develop next-generation antibody therapeutics and transform the biologic drug development process [3][5] - Absci's CEO highlighted the partnership as a unique advantage in pushing the boundaries of drug discovery through efficient and innovative AI solutions [3]

Core Insights - Absci Corporation and Invetx have formed a strategic partnership to develop a novel Half-Life Extension (HLE) platform for animal health applications using Absci's generative AI drug creation models [1][2][3] Company Overview - Absci is a generative AI drug creation company that integrates AI with scalable wet lab technologies to enhance the development of biologics, aiming to accelerate time to clinic and improve success rates [4] - Invetx specializes in protein-based therapeutics for animal health, focusing on the discovery, development, and manufacturing of veterinary monoclonal antibodies [5] Partnership Details - The collaboration will leverage Absci's expertise in designing Half-Life Extension technologies for human antibodies to address the unmet needs in the animal health market, particularly for companion animals [2][3] - Under the agreement, Absci will create novel modular antibody sequences for specific animal species, while Invetx will have rights to utilize the HLE platform across multiple products [2] - The partnership includes R&D funding, milestone payments, election fees, and royalties on a per-product basis, indicating a structured financial arrangement to support the collaboration [2]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $1.7 million, reflecting progress in partnered programs [20] - Research and development expenses increased to $18 million from $11 million in the prior year, driven by higher lab operations and costs associated with IND enabling studies for ABS-101 [20] - Selling, general and administrative expenses decreased slightly to $9.3 million from $9.5 million, attributed to lower personnel and administrative costs [20] - Cash, cash equivalents, and short-term investments at the end of the quarter were $127.1 million, down from $145.2 million as of June 30, 2024 [21] - The company expects gross cash usage for 2024 to be approximately $75 million, revised down from $80 million [22] Business Line Data and Key Metrics Changes - ABS-101, a potential best-in-class TL1A antibody, demonstrated 2x to 3x extended half-life compared to first-generation antibodies in nonhuman primate studies [10] - ABS-201, targeting an undisclosed dermatological indication, is anticipated to select a development candidate this year [12] - ABS-301, an immune-oncology program, is expected to complete mode-of-action validation in the first half of 2025 [13] Market Data and Key Metrics Changes - The collaboration with AstraZeneca aims to accelerate the discovery of a new cancer treatment candidate, marking a significant partnership in oncology [7] - A new partnership with Twist Bioscience focuses on designing a novel antibody using Generative AI, expanding the company's collaborative efforts [8][15] Company Strategy and Development Direction - The company is focused on high-value proprietary internal programs while seeking co-development partnerships with industry leaders [21] - The business model emphasizes out-licensing or selling internal programs following value inflection points, from preclinical to Phase 2 clinical proof of concept [19] - The upcoming 2024 R&D Day will unveil new asset programs and provide updates on existing internal programs [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on internal and partnered programs, with several potential catalysts expected in the next 6 to 12 months [24] - The company remains focused on innovation and execution across its platform and portfolio, aiming to create better biologics for patients faster [14] Other Important Information - The company plans to host its 2024 R&D Day on December 12, 2024, to share updates on internal asset programs and unveil a new asset [9] - The partnership with AstraZeneca is valued at $247 million, including upfronts, research fees, and milestones [28][33] Q&A Session Summary Question: About the AstraZeneca milestone and its validation potential - Management confirmed the milestone as a validation of the platform, with a $247 million deal structure including various financial components [26][28] Question: Expectations for R&D Day and data updates - Management indicated that ABS-201 will present a robust preclinical data package similar to ABS-101, with efficacy data for ABS-301 expected in the first half of 2025 [30] Question: Partnerships expected this year - Management noted ongoing discussions with various prospective partners, indicating a mix of company sizes [34] Question: Delay in ABS-301 insights - Management acknowledged a slight delay in ABS-301 studies, clarifying it does not affect the efficacy of the study [36] Question: Planned healthy volunteer study for ABS-101 - Management expects to achieve a half-life profile similar to engineered antibodies, allowing for potentially monthly to quarterly dosing [39]

Core Viewpoint - Absci Corporation reported a quarterly loss of $0.24 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, marking an earnings surprise of -26.32% [1][2] Financial Performance - The company posted revenues of $1.7 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 4.01%, compared to revenues of $0.74 million a year ago [2] - Absci Corporation has not surpassed consensus EPS estimates over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $2.33 million, and for the current fiscal year, it is -$0.80 on revenues of $6.47 million [7] Stock Performance - Absci Corporation shares have increased by approximately 1.9% since the beginning of the year, while the S&P 500 has gained 25.8% [3] - The stock currently holds a Zacks Rank 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 in the top 29% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Revenue and Financial Performance - Technology development revenue for Q3 2024 was $1.701 million, up from $744 thousand in Q3 2023, representing a 128.5% increase[11] - Total revenues for the nine months ended September 30, 2024, were $3.869 million, compared to $5.380 million for the same period in 2023, a decrease of 28.0%[11] - The net loss for Q3 2024 was $27.398 million, compared to a net loss of $21.994 million in Q3 2023, reflecting a 24.0% increase in losses[11] - The company reported a comprehensive loss of $27.033 million for Q3 2024, compared to a comprehensive loss of $21.907 million in Q3 2023[11] - The net loss for the nine months ended September 30, 2024, was $74,123,000, compared to a net loss of $87,021,000 for the same period in 2023, representing a 14.5% improvement[18] - The net loss for the three months ended September 30, 2024, was $27.4 million, compared to a net loss of $22.0 million for the same period in 2023[54] - The net loss for the nine months ended September 30, 2024, was $74.1 million, compared to a net loss of $87.0 million for the same period in 2023[54] Expenses and Liabilities - Research and development expenses for Q3 2024 were $17.985 million, an increase of 63.5% from $11.029 million in Q3 2023[11] - Cash used in operating activities for the nine months ended September 30, 2024, was $55,438,000, compared to $49,714,000 for the same period in 2023, indicating an increase of 11.5%[18] - The company reported a principal payment of $2,489,000 on long-term debt during the nine months ended September 30, 2024[18] - The contingent consideration liability related to the acquisition of Totient, Inc. is $15.0 million, contingent upon achieving specific milestones[52] Shareholder Information - The weighted-average common shares outstanding for Q3 2024 were 113,613,488, up from 92,217,234 in Q3 2023, indicating a 23.2% increase[11] - The weighted-average common shares outstanding for the nine months ended September 30, 2024, was 108,665,095, an increase from 91,844,221 for the same period in 2023[54] - The total potentially dilutive securities not included in the diluted net loss per share calculation amounted to 24,567,869 for the three months ended September 30, 2024, compared to 18,348,459 for the same period in 2023[55] Assets and Investments - Unrealized gains on investments as of September 30, 2024, amounted to $134,000, while unrealized losses were $1,000, resulting in a fair market value of $88,928,000 for total investments[28] - The total assets measured at fair value as of September 30, 2024, amounted to $88.928 million, with $81.973 million classified under Level 2[49] - The company had total liabilities measured at fair value of $12.750 million as of September 30, 2024, all classified under Level 3[49] Stock Options and Compensation - The total stock-based compensation expense for the three months ended September 30, 2024, was $5.508 million, compared to $2.553 million for the same period in 2023, representing a 116% increase[35] - The number of outstanding stock options increased to 19,565,154 as of September 30, 2024, from 17,104,505 at the end of 2023, with a weighted average exercise price of $3.39[38] - The aggregate intrinsic value of outstanding stock options as of September 30, 2024, was $21.553 million, based on a closing stock price of $3.82 per share[38] - The company granted 2,538,737 restricted stock units during the nine months ended September 30, 2024, with a weighted average grant date fair value of $3.95 per share[44] - As of September 30, 2024, there was $7.7 million of unrecognized compensation expense related to outstanding restricted stock units expected to be recognized over a remaining weighted-average period of 1.6 years[44] Strategic Focus and Market Outlook - The company expects to leverage its Integrated Drug Creation platform to shorten preclinical development timelines for biologics[4] - The company anticipates growth in the biologics market, which will support its service and technology offerings[4] - The company plans to expand its relationships with existing partners and introduce its platform to new partners for drug candidate development[4] - The company is focused on advancing internally developed programs through preclinical studies and clinical trials[4] Other Financial Metrics - The company recognized $3,000,000 in revenue from deferred revenue during the nine months ended September 30, 2024, compared to $400,000 in the same period of 2023, showing significant growth[23] - As of September 30, 2024, contract liabilities were $1,800,000, down from $4,100,000 as of December 31, 2023, reflecting a decrease of 56.1%[23] - Proceeds from maturities of available-for-sale securities for the nine months ended September 30, 2024, were $132,100,000, compared to $189,900,000 for the same period in 2023, reflecting a decrease of 30.3%[28] - As of September 30, 2024, the net property and equipment decreased to $32.374 million from $41.328 million as of December 31, 2023, reflecting a depreciation expense of $2.5 million for the quarter[32] - The company recognized a write-down of $1.1 million for laboratory equipment classified as held-for-sale during the third quarter of 2024[33] Market Risks - There have been no material changes in reported market risks or risk management policies since the last annual report[129]

Financial Performance - Revenue for Q3 2024 was $1.7 million, up from $0.7 million in Q3 2023, representing a 142.9% increase driven by partnered programs[11] - Net loss for Q3 2024 was $27.4 million, compared to a net loss of $22.0 million in Q3 2023, reflecting a 24.5% increase in losses[13] - Absci's operating loss for Q3 2024 was $28.9 million, compared to an operating loss of $23.3 million in Q3 2023, indicating a 24.0% increase in operating losses[13] Expenses and Cash Flow - Research and development expenses increased to $18.0 million in Q3 2024 from $11.0 million in Q3 2023, a rise of 63.6% primarily due to increased lab operations and IND-enabling studies for ABS-101[12] - The company expects a gross use of cash for the fiscal year 2024 to be approximately $75 million, revised down from $80 million[9] - Cash, cash equivalents, and short-term investments as of September 30, 2024, were $127.1 million, down from $145.2 million as of June 30, 2024[14] Assets and Liabilities - Total assets increased to $235,231 thousand as of September 30, 2024, up from $217,298 thousand at December 31, 2023, representing a growth of approximately 8.9%[20] - Current assets rose to $150,144 thousand, compared to $120,578 thousand at the end of 2023, marking an increase of about 24.5%[20] - Total liabilities decreased to $33,896 thousand from $41,122 thousand, reflecting a reduction of about 17.5%[20] - Long-term debt, net of current portion, decreased to $2,155 thousand from $4,660 thousand, a reduction of approximately 53.8%[20] - Operating lease obligations, net of current portion, decreased to $4,847 thousand from $5,643 thousand, reflecting a decline of about 14.1%[20] Stockholders' Equity - Stockholders' equity increased to $201,335 thousand, up from $176,176 thousand, indicating a growth of approximately 14.3%[20] - Additional paid-in capital rose significantly to $681,691 thousand from $582,699 thousand, an increase of about 16.9%[20] - The accumulated deficit widened to $(480,618) thousand from $(406,495) thousand, representing an increase of approximately 18.2%[20] - Deferred revenue decreased to $1,781 thousand from $3,174 thousand, a decline of about 44%[20] Future Plans and Developments - Absci plans to initiate Phase 1 clinical studies for ABS-101 in the first half of 2025, with an interim data readout expected in the second half of 2025[5] - The company anticipates selecting a development candidate for ABS-201 in the second half of 2024, targeting an undisclosed dermatological indication[6] - Absci expects to advance at least one additional internal asset program to a lead stage in 2024[8] - The company aims to sign drug creation partnerships with at least four partners in 2024, including potential multi-program partnerships[8]