Absci (ABSI) Q3 2024 earnings summary

Executive summary

• Achieved first milestone in AstraZeneca collaboration by delivering AI-designed antibody sequences within six months, validating the drug creation platform's capabilities.

• Announced new partnership with Twist Bioscience to design a novel antibody using generative AI, expanding the collaborator network.

• Advanced internal pipeline programs (ABS-101, ABS-201, ABS-301) through preclinical studies, with plans to unveil new data and introduce a new asset at the 2024 R&D Day.

• Absci leverages a proprietary generative AI platform to accelerate and optimize antibody-based therapeutics development.

• As of September 30, 2024, cash, cash equivalents, and short-term investments totaled $127.1 million, with an accumulated deficit of $480.6 million.

Financial highlights

• Q3 2024 revenue was $1.7 million, up 129% year-over-year, but nine-month revenue declined 28% to $3.9 million due to milestone timing and program mix.

• Net loss for Q3 2024 was $27.4 million, and $74.1 million for the nine months, reflecting increased R&D investment and ongoing platform development.

• Research and development expenses rose to $18 million, up from $11 million year-over-year, mainly due to increased lab operations, IND-enabling studies, and stock compensation.

• Selling, general, and administrative expenses were $9.3 million, slightly down from $9.5 million year-over-year due to lower personnel and administrative costs.

• Cash, cash equivalents, and short-term investments totaled $127.1 million as of September 30, 2024, down from $145.2 million at the end of Q2 2024.

Outlook and guidance

• Existing cash and investments expected to fund operations into the first half of 2027.

• 2024 gross cash use now expected to be $75 million, $5 million below previous guidance.

• Plans to sign at least four new drug creation partnerships in 2024, including multi-program deals.

• R&D Day on December 12, 2024, will feature new data on ABS-201 and a new asset program.

• Phase I clinical studies for ABS-101 planned for the first half of 2025, with interim data in the second half.