• Revenue: $1.7 million for Q3 2024.
• Research and Development Expenses: $18 million for Q3 2024, up from $11 million in the prior year period.
• Selling, General, and Administrative Expenses: $9.3 million for Q3 2024, down from $9.5 million in the prior year period.
• Cash, Cash Equivalents, and Short-term Investments: $127.1 million as of September 30, 2024, compared to $145.2 million as of June 30, 2024.
• Expected Gross Use of Cash for 2024: Approximately $75 million, revised down from $80 million.

• Warning! GuruFocus has detected 3 Warning Signs with ABSI.

Release Date: November 12, 2024

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

Positive Points

• Absci Corp (NASDAQ:ABSI) achieved a significant milestone in its collaboration with AstraZeneca by delivering AI-designed antibody sequences within six months.
• The company announced a new partnership with Twist Bioscience to design a novel antibody using generative AI, expanding its collaborative network.
• Absci Corp (NASDAQ:ABSI) plans to initiate Phase 1 clinical studies of its ABS-101 program in the first half of 2025, with an interim data readout expected in the second half of 2025.
• The company has a robust pipeline of proprietary programs, including ABS-101, ABS-201, and ABS-301, all generated using its integrated drug creation platform.
• Absci Corp (NASDAQ:ABSI) ended the quarter with $127.1 million in cash, cash equivalents, and short-term investments, providing a strong financial position to fund operations into the first half of 2027.

Negative Points

• Revenue for the third quarter of 2024 was only $1.7 million, indicating limited income from partner programs.
• Research and development expenses increased significantly to $18 million, up from $11 million in the prior year period, driven by increased lab operations and stock compensation expenses.
• There was a slight delay in the ABS-301 program due to issues at the contract research organization (CRO), affecting the timeline for data readouts.
• The company experienced a decrease in cash, cash equivalents, and short-term investments from $145.2 million as of June 30, 2024, to $127.1 million by the end of the quarter.
• Absci Corp (NASDAQ:ABSI) continues to rely heavily on partnerships for revenue, which may pose a risk if new partnerships are not secured as anticipated.

Q & A Highlights

Q: Can you remind us of the economics of the AstraZeneca partnership and when we can expect further updates? Does this validate Absci's platform potential? A: Sean McClain, CEO: The partnership is a great validation of our platform, delivering a binder in six months. Zach Jonasson, CFO: The deal is valued at $247 million, including upfront fees, milestones, and undisclosed royalties. It's a traditional drug creation partnership structure.

Q: What can we expect data-wise from your R&D day and updates in the first half of 2025? A: Sean McClain, CEO: At R&D day, we'll present a robust pre-clinical data package for ABS-201, similar to ABS-101. In the first half of 2025, we plan to present efficacy data on ABS-301.

Q: Are you using the same manufacturers for ABS-201 as for ABS-101, and should we expect similar R&D expenses? A: Sean McClain, CEO: Yes, we're using the same manufacturer, WuXi, for ABS-201, and expenses should be similar to those for ABS-101.

Q: Can you provide more details about the upcoming partnerships expected this year? A: Zach Jonasson, CFO: We are advancing discussions with a mix of companies of different sizes, but that's all we can disclose at this point.

Q: What are your expectations for the healthy volunteer study for ABS-101 next year in terms of antibody half-life? A: Christian Stegmann, SVP of Drug Creation: We aim to measure pharmacokinetics and expect a half-life profile similar to half-life engineered antibodies, allowing for once-monthly or potentially once-quarterly dosing.

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