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]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $700,000, reflecting ongoing progress in partner programs [25] - Research and development expenses increased to $18.4 million from $12.3 million in the prior year, driven by advancements in internal programs [25] - Selling, general and administrative expenses decreased to $8.8 million from $9.3 million in the prior year [25] - Cash, cash equivalents, and short-term investments at year-end were $112.4 million, down from $127.1 million as of September 30, 2024 [26] Business Line Data and Key Metrics Changes - The company added four new partners in 2024, including collaborations with Alcon and INVIDX [19][20] - ABS-201, targeting androgenic alopecia, is positioned as a potential flagship asset with a significant market opportunity [14][15] - ABS-101 showed promising preclinical data, indicating lower ADA development risk compared to competitors [17] Market Data and Key Metrics Changes - The market for androgenic alopecia is substantial, with approximately 80 million people affected in the U.S. alone [14] - The company is focusing on developing therapeutics for unmet needs in various indications, including immuno-oncology and inflammation [20] Company Strategy and Development Direction - The company aims to develop ABS-201 internally through later-stage clinical development to retain maximum value [15] - A strategic collaboration with AMD was announced, involving a $20 million investment to enhance computational capabilities for drug design [11][26] - The business model has evolved to focus on high-quality, high-value therapeutic programs rather than merely the number of partnerships [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute across the portfolio of programs and highlighted the potential of ABS-201 and ABS-101 [29] - The company anticipates becoming a clinical-stage biotech with ABS-101 entering the clinic in 2025 and ABS-201 expected to follow in early 2026 [24][29] - Management emphasized the importance of partnerships that can provide significant upfront payments and extend cash runway non-dilutively [39] Other Important Information - The company is leveraging its AI models to create novel therapeutic candidates and improve the accuracy of drug design [85][86] - The partnership with Caltech and the Gates Foundation focuses on developing a universal neutralizing HIV antibody [71] Q&A Session Summary Question: Plans for additional preclinical studies for ABS-101 and ABS-201 - Management confirmed that additional preclinical data for ABS-101 will be disclosed at a scientific conference, and ABS-201 is in the IND enabling phase with data to be shared as well [33][34] Question: Updates on partnership programs and guidance - Management indicated a focus on securing a large pharma partnership and emphasized the importance of transactions that provide significant upfront payments [39][40] Question: Design and endpoints for the planned Phase 1 study of ABS-201 - The Phase 1 study will start with a SAD study followed by a MAD study, focusing on well-accepted endpoints for measuring hair density [43][44] Question: Competitive positioning of anti-TL1A assay - Management acknowledged impressive data from competitors but highlighted potential advantages in dosing and efficacy for their anti-TL1A program [78] Question: Progress on the HIV program and partnership structure - The HIV program is funded by the Gates Foundation, and updates will be provided as preclinical data becomes available [71]