Absci(ABSI) - 2024 Q3 - Earnings Call Transcript

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]