Absci(US:ABSI)2021-11-14 12:32Financial Data and Key Metrics Changes - Revenue for Q3 2021 increased approximately 68% to $1.5 million compared to $900,000 for Q3 2020, slightly below internal forecasts due to timing differences in revenue recognition [38][40] - Research and development expenses rose to $10.7 million from $2.7 million year-over-year, attributed to increased headcount [39] - Selling, general and administrative expenses were $9.7 million for Q3 2021, up from $1.3 million in the prior year, with significant costs related to personnel and public company expenses [40] Business Line Data and Key Metrics Changes - The company had nine active programs with seven partners, indicating a focus on partnerships for drug candidate development [9] - The business model emphasizes partnerships where the company develops drug candidates and cell lines, benefiting from program fees, milestones, and royalties [8] Market Data and Key Metrics Changes - The company is experiencing strong interest from partners in its expanded capabilities, particularly in drug discovery, which is expected to generate greater long-term value [38][60] - The market is excited about the company's discovery platform, with a majority of the current pipeline being discovery-focused [60] Company Strategy and Development Direction - The company aims to revolutionize drug discovery by integrating AI and biology, enhancing its drug creation platform to deliver better drugs to patients faster [8][33] - Recent acquisitions of Denovium and Totient are expected to significantly enhance the company's capabilities in AI-driven drug discovery and antibody development [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the feedback received from the marketplace, highlighting the potential for future revenue generation from ongoing programs [18][38] - The company is focused on building a robust pipeline for 2022, with expectations of closing additional discovery deals [76] Other Important Information - The company successfully raised over $435 million in financing, including a $210 million IPO, providing the capital needed to execute its vision [17][40] - The company moved into a new 80,000 square foot facility, enhancing its operational capabilities [9] Q&A Session Summary Question: Interest in Totient and diagnostic opportunities - Management acknowledged the potential for diagnostics but indicated that it is not a current focus, emphasizing the evaluation of how far to take assets before partnering [44][46] Question: Insights on EQRx partnership - Management confirmed that the EQRx deal is a multi-target, multi-program collaboration but could not disclose specific targets at this time [48][49] Question: Revenue guidance for next year - Management stated it is too early to provide guidance for next year, citing timing differences in revenue recognition due to the shift from cell line development to discovery deals [50][51] Question: Partnerships with Astellas and PhaseBio - Management indicated that the Astellas partnership involves molecule optimization and that they cannot disclose details about the PhaseBio asset at this time [53][54] Question: Hiring focus and SG&A expenses - The majority of new hires are focused on lab and operations, with SG&A expenses impacted by non-stock compensation and recruiting costs [62][63] Question: Future pipeline and program visibility - Management expressed confidence in a strong pipeline for 2022, with ongoing discussions with partners to close additional deals [75][76]