On November 14, 2023, Absci Corp (ABSI, Financial) released its 8-K filing, detailing its financial and operating results for the third quarter ended September 30, 2023. The company, which specializes in generative AI drug creation, reported a decrease in revenue but also a reduction in net loss compared to the same quarter of the previous year.
Financial Performance Overview
For the third quarter of 2023, Absci Corp (ABSI, Financial) reported a revenue of $0.7 million, a significant decrease from $2.4 million in the third quarter of 2022. This decline was attributed to the mix and timing of partnered program progress. Despite the drop in revenue, the company managed to reduce its net loss to $22.0 million, down from $27.3 million in the prior year's quarter.
Research and development expenses saw a reduction to $11.0 million from $15.5 million, driven by lower laboratory operational costs and increased efficiencies. Selling, general, and administrative expenses also decreased to $9.5 million from $11.4 million, primarily due to reductions in personnel and insurance costs.
Operational Highlights and Future Outlook
Absci Corp (ABSI, Financial) highlighted its recent partnership with Almirall, focusing on the development and commercialization of AI-designed therapeutics for dermatological diseases. The deal could potentially bring Absci up to $664 million in upfront fees, R&D, and post-approval milestone payments, plus royalties, if all milestones are achieved.
The company also unveiled a pipeline of four wholly-owned asset programs, with a focus on cytokine biology. These programs are expected to reach the investigational new drug (IND) filing stage in 2025, with the first anticipated in early 2025. Data on ABS-101, a potential best-in-class TL1A antagonist, is expected to be disclosed in early 2024.
Looking ahead, Absci Corp (ABSI, Financial) anticipates at least ten new Active Programs in 2023 and expects to generate more cash from execution on partnered programs. The company has realigned its organizational structure to reduce cash use to approximately $80 million for the fiscal year ending December 31, 2023, which is below the prior year's use of $105 million. This realignment is part of Absci's strategic focus on initiatives that are expected to provide sufficient cash into late 2025.
Balance Sheet and Cash Flow
As of September 30, 2023, Absci Corp (ABSI, Financial) reported cash, cash equivalents, and short-term investments totaling $113.5 million, a decrease from $124.6 million as of June 30, 2023. The company's balance sheet reflects a focus on maintaining liquidity and managing expenses strategically.
In summary, while Absci Corp (ABSI, Financial) faced a decrease in revenue for the third quarter, the company has taken steps to reduce its net loss and operational expenses. The partnership with Almirall and the unveiling of its AI drug creation pipeline are significant milestones that may contribute to future growth. Absci Corp (ABSI) remains focused on its strategic initiatives and maintaining financial stability into the near future.
Explore the complete 8-K earnings release (here) from Absci Corp for further details.
