Absci (ABSI) Q2 2024 earnings summary

Executive summary

• Announced a co-development partnership with Memorial Sloan Kettering Cancer Center to develop up to six oncology programs using generative AI, with 50/50 cost-sharing and joint oversight.

• Continued progress on internal pipeline: ABS-101 (anti-TL1A antibody), ABS-201 (dermatology), and ABS-301 (immuno-oncology), with plans to advance at least one more internal asset to lead stage in 2024.

• ABS-101 demonstrated 2-3x extended half-life and increased biodistribution in non-human primate studies compared to clinical competitors, supporting a best-in-class profile.

• As of June 30, 2024, there were 16 active partnered programs and three wholly-owned internal pipeline programs.

• The business model combines partnered programs with an internal pipeline, targeting diversified risk and return through milestone and royalty agreements.

Financial highlights

• Q2 2024 revenue was $1.3 million, down 62% year-over-year, due to timing of milestones and program mix.

• Research and development expenses rose to $15.3 million (from $12.1 million year-over-year), mainly due to increased lab operations, IND-enabling studies for ABS-101, and stock-based compensation.

• Net loss for Q2 2024 was $24.8 million, compared to $41.7 million in Q2 2023, with prior year including a $21.3 million goodwill impairment.

• Cash, cash equivalents, and short-term investments totaled $145.2 million as of June 30, 2024, down from $161.5 million at March 31, 2024.

• Operating cash outflow was $34.7 million for the first half of 2024.

Outlook and guidance

• Gross use of cash, cash equivalents, and short-term investments for 2024 expected to be approximately $80 million, including costs for ABS-101 IND-enabling studies.

• Current cash position expected to fund operations into the first half of 2027.

• Phase 1 clinical studies for ABS-101 planned for early 2025, with interim data readout in the second half of 2025, pending regulatory clearance.

• ABS-201 development candidate selection and target disclosure anticipated by year-end or early 2025.

• Data from ABS-201 and ABS-301 preclinical studies expected by end of 2024 or early 2025.