Absci Corporation (Nasdaq: ABSI), a data-first generative AI drug
creation company, today reported financial and operating results
for the fourth quarter and year ended December 31, 2023.
"In 2023, Absci further solidified its
leadership in AI-driven biologic drug discovery," said Sean
McClain, Founder and CEO. "Our breakthroughs in generative AI drug
creation have rapidly translated into a differentiated internal
portfolio of potential best-in-class and first-in-class programs.
With validating strategic industry partnerships and our recent
underwritten public offering, we're poised to further advance our
pipeline, enhance our AI capabilities, and expand our partnerships.
These efforts reflect our commitment to innovation, promising
better biologics for patients, faster."
Recent Highlights
- In January, Absci presented
positive preclinical data for ABS-101, a potential best-in-class
anti-TL1A antibody, which exhibited properties consistent with a
potentially superior product profile. Based on further confirmatory
studies, Absci selected a development candidate and initiated
IND-enabling studies for ABS-101 in February 2024.
- Completed an underwritten public
offering of common stock raising gross proceeds of approximately
$86.4 million. Based on the company's current plans, Absci believes
its existing cash and cash equivalents and short-term investments,
including the net proceeds from the recent underwritten offering of
common stock, will be sufficient to fund its operations into the
first half of 2027.
- Entered into a collaboration with
AstraZeneca to deliver an AI-designed antibody against an oncology
target. Under the terms of the collaboration agreement, Absci is
entitled to receive an upfront commitment, research and development
funding, and milestone payments, collectively totaling up to $247
million, in addition to royalties on product sales.
- Entered into a partnership with
PrecisionLife, a leading computational biology company driving
precision medicine in complex chronic diseases, to develop a joint
portfolio of potential therapeutics addressing unmet medical
needs.
- Appointed Professor Sir Menelas
“Mene” Pangalos to Absci's Board of Directors and as co-chair of
Absci’s Scientific Advisory Board. Sir Mene, who has over 25 years
of experience in drug discovery and development, is retiring from
his position as the Executive Vice President of BioPharmaceuticals
R&D at AstraZeneca, and joins Absci as the company scales its
AI-enabled portfolio of partnered and wholly-owned asset
programs.
Internal Pipeline Updates, Anticipated
Progress, and 2024 Outlook
- ABS-101 (potential
best-in-class anti-TL1A antibody): Absci presented early
preclinical data on ABS-101 in January, with three advanced leads
showing properties consistent with a potentially superior product
profile, including demonstrated high affinity, high potency,
favorable developability, and extended half-life. Absci used its de
novo AI model to design ABS-101 toward a specific epitope with the
objective for superior potency and lower immunogenicity. This
target product profile, combined with anticipated high
bioavailability, could ultimately improve patient experience with
easier, less frequent dosing. Following further confirmatory PK
studies in February, Absci selected a development candidate to
advance into IND-enabling studies. Absci expects to submit an IND
for ABS-101 in the first quarter of 2025. Subject to clearance of
the IND, Absci expects to initiate Phase 1 studies for this program
shortly thereafter, with an interim Phase 1 data readout expected
in the second half of 2025.
- ABS-201 (potential
best-in-class antibody for undisclosed dermatology
target): ABS-201 is designed for an undisclosed
dermatological indication with significant unmet need, where the
efficacy of the pharmacological standard of care is not
satisfactory. Absci anticipates selecting a development candidate
for this program in the second half of 2024.
- ABS-301 (potential
first-in-class antibody for undisclosed immuno-oncology
target): ABS-301 is a fully human antibody designed to
bind to a novel target discovered through Absci's Reverse
Immunology platform. This antibody inhibits an immunosuppressive
cytokine and is believed to stimulate innate immune response.
ABS-301 is being evaluated for a broad applicability to a variety
of oncology indications, and comprehensive profiling of this
program is in progress. Absci anticipates completion of
mode-of-action validation studies for this program in the second
half of 2024.
- Additional Internal
Pipeline Programs: In addition to further development of
ABS-101, ABS-201, and ABS-301, Absci expects to advance at least
one additional internal asset program to a lead stage in 2024.
- Drug Creation
Partnerships: Absci anticipates signing
additional drug creation partnerships with at least four Partners
in 2024, including one or more multi-program partnerships.
Absci expects a gross use of cash, cash
equivalents, and short-term investments of approximately $80
million for the fiscal year ending December 31, 2024. This amount
includes the expected costs associated with completing the
IND-enabling studies for ABS-101 with a third-party CRO.
Absci continues to focus its investments and
operations on advancing its internal pipeline of programs,
alongside current and future partnered programs, while achieving
ongoing platform improvements and operational efficiencies. Based
on the company's current plans, Absci believes its existing cash
and cash equivalents and short-term investments, including the net
proceeds from the recent underwritten offering of common stock,
will be sufficient to fund its operations into the first half of
2027.
Fourth Quarter 2023 Financial
Results
Revenue was $0.3 million for the three months
ended December 31, 2023 compared to $1.6 million for the three
months ended December 31, 2022. This decrease was driven by
mix of partnered and internal programs, and related progress.
Research and development expenses were $12.3
million for the three months ended December 31, 2023 compared
to $11.3 million for the three months ended December 31, 2022.
This increase was primarily driven by lower laboratory operational
costs from continued efficiencies, offset by an increase in stock
compensation expense.
Selling, general, and administrative expenses
were $9.3 million for the three months ended December 31, 2023
compared to $7.7 million for the three months ended
December 31, 2022. This increase was due to an increase in
stock compensation expense, offset by continued reductions in
administrative costs.
Net loss was $23.5 million for the three months
ended December 31, 2023, as compared to $19.5 million for the
three months ended December 31, 2022.
Full Year 2023 Financial
Results
Revenue was $5.7 million for the twelve
months ended December 31, 2023 compared to $5.7 million
for the twelve months ended December 31, 2022.
Research and development expenses were
$48.1 million for the twelve months ended December 31,
2023 compared to $58.9 million for the twelve months ended
December 31, 2022. This decrease was primarily driven by lower
laboratory operational costs, increased efficiencies, and reduced
personnel costs.
Selling, general, and administrative expenses
were $37.8 million for the twelve months ended
December 31, 2023 compared to $40.6 million for the
twelve months ended December 31, 2022. This decrease was
primarily due to reductions in stock compensation expense and
insurance costs.
Net loss was $110.6 million for the twelve
months ended December 31, 2023, as compared to $104.9 million
for the twelve months ended December 31, 2022.
Cash, cash equivalents, and short-term
investments as of December 31, 2023 were $97.7 million,
compared to $113.5 million as of September 30, 2023. During
the twelve months ending December 31, 2023, Absci's gross use of
cash, cash equivalents, and short-term investments, exclusive of
partnered program and equipment financing receipts, was
approximately $75 million, below the company's outlook of
approximately $80 million. On March 1, 2024, Absci closed an
underwritten public offering of common stock, raising gross
proceeds of approximately $86.4 million, before deducting
underwriting discounts and commissions and offering expenses.
About Absci
Absci is a data-first generative AI drug
creation company that combines AI with scalable wet lab
technologies to create better biologics for patients, faster. Our
Integrated Drug Creation™ platform unlocks the potential to
accelerate time to clinic and increase the probability of success
by simultaneously optimizing multiple drug characteristics
important to both development and therapeutic benefit. With the
data to learn, the AI to create, and the wet lab to validate, we
can screen billions of cells per week, allowing us to go from
AI-designed antibodies to wet lab-validated candidates in as little
as six weeks. Absci’s headquarters is in Vancouver, WA, with our AI
Research Lab in New York City and an Innovation Center in Zug,
Switzerland. Visit www.absci.com and follow us on LinkedIn
(@absci), X (Twitter) (@Abscibio), and YouTube.
Availability of Other Information About
Absci
Investors and others should note that we
routinely communicate with investors and the public using our
website (www.absci.com) and our investor relations website
(investors.absci.com), including without limitation, through the
posting of investor presentations, SEC filings, press releases,
public conference calls and webcasts on these websites, as well as
on X (Twitter), LinkedIn and YouTube. The information that we post
on these websites and social media outlets could be deemed to be
material information. As a result, investors, the media, and others
interested in Absci are encouraged to review this information on a
regular basis. The contents of our website and social media
postings, or any other website that may be accessed from our
website or social media postings, shall not be deemed incorporated
by reference in any filing under the Securities Act of 1933, as
amended.
Forward-Looking Statements
Certain statements in this press release that
are not historical facts are considered forward-looking within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements containing the words “will,” “pursues,”
“anticipates,” “plans,” “believes,” “forecast,” “potential,”
“estimates,” “extends,” “expects,” and “intends,” or similar
expressions. We intend these forward-looking statements, including
statements regarding our expectations regarding business
operations, financial performance, and results of operations,
including our expectations and guidance regarding the success of
our partnerships and the total dollar value of, and milestone and
royalty payments due under, our partnership agreements, the gross
use of cash, cash equivalents, and short-term investments, our
projected cash usage, needs, and runway, our expectations regarding
the number of partners and number of programs included in such
partnerships, our technology development efforts and the
application of those efforts, including accelerating drug
development timelines, increasing probability of successful drug
development and developing better product candidates, our drug
discovery and development activities related to drug creation
partnerships and our internal therapeutic asset programs, the
progress, milestones and success of our internal asset programs,
including the timing for various stages of candidate selection, IND
submission, initiating clinical trials, the generation and
disclosure of data related to these programs, the translation of
preclinical results and data into product candidates, and the
significance of preclinical results for our internal asset
programs, including in comparison to competitor molecules, to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act, and we make this
statement for purposes of complying with those safe harbor
provisions. These forward-looking statements reflect our current
views about our plans, intentions, expectations, strategies, and
prospects, which are based on the information currently available
to us and on assumptions we have made. We can give no assurance
that the plans, intentions, expectations, or strategies will be
attained or achieved, and, furthermore, actual results may differ
materially from those described in the forward-looking statements
and will be affected by a variety of risks and factors that are
beyond our control, including, without limitation, risks and
uncertainties relating to obtaining and maintaining necessary
approvals from the FDA and other regulatory authorities,
replicating in clinical trials positive results found in
preclinical studies, our dependence on third parties to support our
internal development programs, including for the manufacture and
supply of preclinical and clinical supplies of our product
candidates or components thereof, our ability to effectively
collaborate on research, drug discovery and development activities
with our partners or potential partners, our existing and potential
partners’ ability and willingness to pursue the development and
commercialization of programs or product candidates under the terms
of our partnership agreements, and overall market conditions and
regulatory developments that may affect our and our partners’
activities under these agreements, along with those risks set forth
in our most recent periodic report filed with the U.S. Securities
and Exchange Commission, as well as discussions of potential risks,
uncertainties, and other important factors in our subsequent
filings with the U.S. Securities and Exchange Commission. Except as
required by law, we assume no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Investor Contact:Alex KhanVP,
Finance & Investor Relationsinvestors@absci.com
Media Contact:press@absci.com
absci@methodcommunications.com
Absci CorporationCondensed Consolidated
Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
For the Three Months Ended December 31, |
|
For the Years Ended December 31, |
(In thousands, except for share and per share
data) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
|
Technology development revenue |
|
$ |
338 |
|
|
$ |
1,435 |
|
|
$ |
5,718 |
|
|
$ |
4,529 |
|
Collaboration revenue |
|
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
1,218 |
|
Total revenues |
|
|
338 |
|
|
|
1,557 |
|
|
|
5,718 |
|
|
|
5,747 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
12,269 |
|
|
|
11,315 |
|
|
|
48,067 |
|
|
|
58,908 |
|
Selling, general and administrative |
|
|
9,324 |
|
|
|
7,749 |
|
|
|
37,832 |
|
|
|
40,552 |
|
Depreciation and amortization |
|
|
3,484 |
|
|
|
3,586 |
|
|
|
13,999 |
|
|
|
13,037 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
21,335 |
|
|
|
— |
|
Total operating expenses |
|
|
25,077 |
|
|
|
22,650 |
|
|
|
121,233 |
|
|
|
112,497 |
|
Operating loss |
|
|
(24,739 |
) |
|
|
(21,093 |
) |
|
|
(115,515 |
) |
|
|
(106,750 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(204 |
) |
|
|
(287 |
) |
|
|
(1,010 |
) |
|
|
(972 |
) |
Other income, net |
|
|
1,446 |
|
|
|
1,409 |
|
|
|
6,059 |
|
|
|
2,357 |
|
Total other income, net |
|
|
1,242 |
|
|
|
1,122 |
|
|
|
5,049 |
|
|
|
1,385 |
|
Loss before income taxes |
|
|
(23,497 |
) |
|
|
(19,971 |
) |
|
|
(110,466 |
) |
|
|
(105,365 |
) |
Income tax (expense)
benefit |
|
|
(48 |
) |
|
|
500 |
|
|
|
(100 |
) |
|
|
461 |
|
Net loss |
|
$ |
(23,545 |
) |
|
$ |
(19,471 |
) |
|
$ |
(110,566 |
) |
|
$ |
(104,904 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share:Basic and
diluted |
|
$ |
(0.25 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.20 |
) |
|
$ |
(1.15 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:Basic and diluted |
|
|
92,573,406 |
|
|
|
91,321,166 |
|
|
|
92,028,016 |
|
|
|
90,845,629 |
|
|
|
|
|
|
|
|
|
|
Absci CorporationCondensed Consolidated
Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
(In thousands, except for share and per share
data) |
|
|
2023 |
|
|
2022 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
72,362 |
|
|
$ |
59,955 |
|
Restricted cash |
|
|
16,193 |
|
|
|
15,023 |
|
Short-term investments |
|
|
25,297 |
|
|
|
104,476 |
|
Receivables under development arrangements, net |
|
|
2,189 |
|
|
|
1,550 |
|
Prepaid expenses and other current assets |
|
|
4,537 |
|
|
|
5,859 |
|
Total current assets |
|
|
120,578 |
|
|
|
186,863 |
|
Operating lease right-of-use
assets |
|
|
4,490 |
|
|
|
5,319 |
|
Property and equipment,
net |
|
|
41,328 |
|
|
|
52,723 |
|
Intangibles, net |
|
|
48,253 |
|
|
|
51,622 |
|
Goodwill |
|
|
— |
|
|
|
21,335 |
|
Restricted cash,
long-term |
|
|
1,112 |
|
|
|
1,864 |
|
Other long-term assets |
|
|
1,537 |
|
|
|
1,282 |
|
TOTAL ASSETS |
|
$ |
217,298 |
|
|
$ |
321,008 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,503 |
|
|
$ |
2,412 |
|
Accrued expenses |
|
|
19,303 |
|
|
|
20,481 |
|
Long-term debt |
|
|
3,258 |
|
|
|
2,946 |
|
Operating lease obligations |
|
|
1,679 |
|
|
|
1,690 |
|
Financing lease obligations |
|
|
641 |
|
|
|
2,296 |
|
Deferred revenue |
|
|
3,174 |
|
|
|
445 |
|
Total current liabilities |
|
|
29,558 |
|
|
|
30,270 |
|
Long-term debt, net of current
portion |
|
|
4,660 |
|
|
|
7,984 |
|
Operating lease obligations,
net of current portion |
|
|
5,643 |
|
|
|
7,317 |
|
Finance lease obligations, net
of current portion |
|
|
76 |
|
|
|
750 |
|
Deferred tax liability,
net |
|
|
186 |
|
|
|
238 |
|
Deferred revenue,
long-term |
|
|
966 |
|
|
|
— |
|
Other long-term
liabilities |
|
|
33 |
|
|
|
35 |
|
TOTAL LIABILITIES |
|
|
41,122 |
|
|
|
46,594 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
Preferred stock, $0.0001 par
value |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par
value |
|
|
9 |
|
|
|
9 |
|
Additional paid-in
capital |
|
|
582,699 |
|
|
|
570,454 |
|
Accumulated deficit |
|
|
(406,495 |
) |
|
|
(295,929 |
) |
Accumulated other
comprehensive loss |
|
|
(37 |
) |
|
|
(120 |
) |
TOTAL STOCKHOLDERS'
EQUITY |
|
|
176,176 |
|
|
|
274,414 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
217,298 |
|
|
$ |
321,008 |
|
|
|
|
|
|
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