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Absci Corp (ABSI) Q4 2024 Earnings Call Highlights: Strategic Collaborations and Financial ...

In This Article:

  • Revenue: $0.7 million for the fourth quarter.

  • Research and Development Expenses: $18.4 million for the fourth quarter, up from $12.3 million in the prior year period.

  • Selling, General, and Administrative Expenses: $8.8 million for the fourth quarter, down from $9.3 million in the prior year period.

  • Cash, Cash Equivalents, and Short-term Investments: $112.4 million as of December 31, 2024.

  • Full-Year Cash Usage: Approximately $72 million, below the projected $75 million.

  • Additional Funding: $40 million raised through a strategic collaboration with AMD and an at-the-market facility.

  • Financial Outlook: Existing cash expected to fund operations into the first half of 2027.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Absci Corp (NASDAQ:ABSI) successfully executed across all aspects of its business in 2024, including advancing proprietary internal programs and adding four new partners.

  • The company unveiled its potentially category-defining ABS-201 program, targeting the prolactin receptor for androgenic alopecia, with promising pre-clinical data.

  • Absci Corp's collaboration with AMD provides optimized compute solutions, enhancing performance and reducing costs for complex biological modeling.

  • The company demonstrated significant advancements in its AI-integrated drug creation platform, showcasing breakthroughs in de novo antibody design.

  • Absci Corp ended the year with a strong financial position, having raised an additional $40 million, extending its cash runway into the first half of 2027.

Negative Points

  • Revenue for the fourth quarter was only $0.7 million, indicating limited financial growth from partnered programs.

  • Research and development expenses increased significantly to $18.4 million, driven by internal program advancements and stock compensation expenses.

  • The company plans to stop providing exact numbers of expected new partners, which may reduce transparency for investors.

  • Absci Corp's cash, cash equivalents, and short-term investments decreased from $127.1 million to $112.4 million by the end of the year.

  • The company faces competition in the androgenic alopecia market, with no real innovation in nearly 30 years, posing challenges for ABS-201's market entry.

Q & A Highlights

Q: Does Absci plan to conduct additional pre-clinical studies with ABS-101 and ABS-201, and will investors see the results? A: Christian Stegmann, SVP of Drug Creation, stated that for ABS-101, they are wrapping up IND-enabling work and plan to disclose full toxicology data at a scientific conference. For ABS-201, they are in the IND-enabling phase and will disclose data during this process, also preferably at a scientific conference.