Analysts Cut Absci (ABSI) Target, Spotlight New Alopecia Therapy in Early Trials

Core Viewpoint - Absci Corporation (NASDAQ:ABSI) faces increased risks and limited visibility following a downgrade by Morgan Stanley, which has impacted its price target and strategic direction [1][2]. Group 1: Company Performance and Strategy - Morgan Stanley downgraded Absci Corporation from Overweight to Equalweight and reduced its price target from $5.80 to $4.32 due to higher risk and limited near-term visibility after the third-quarter update [1]. - Interim Phase 1 data for ABS-101 underperformed expectations, particularly regarding half-life performance compared to competitors, leading the company to halt internal advancement of ABS-101 and explore alternative indications and partnerships [1][2]. - The financial model was updated to remove ABS-101 and include ABS-201, which targets androgenetic alopecia, with a 25% probability of success and estimated peak risk-adjusted sales of approximately $400 million [2]. Group 2: Research and Development - Preclinical data for ABS-201 indicated activity in human scalp tissue, suggesting potential benefits for hair growth, with interim data from the Phase 1/2a HEADLINE study expected in the second half of 2026 [3]. - Absci Corporation is a clinical-stage biotech firm utilizing its proprietary AI platform to design and develop innovative protein-based therapeutics [3].