Absci Corp is an artificial intelligence-powered synthetic biology company unlocking the potential of proteins as the next generation of therapeutics. It enables the creation of novel biologics by unifying biologic drug discovery and cell line development into one simultaneous process.
Performance and Challenges
Absci Corp (ABSI, Financial) reported revenue of $1.3 million for the quarter ended June 30, 2024, falling short of the analyst estimate of $1.91 million. This represents a significant decline from the $3.4 million reported in the same period last year. The decrease was attributed to a mix of partnered and internal programs and their related progress.
Research and development expenses rose to $15.3 million from $12.1 million in the previous year, driven by increased lab operations and costs associated with IND-enabling studies for ABS-101. Selling, general, and administrative expenses slightly decreased to $9.3 million from $9.4 million, primarily due to lower personnel costs and administrative cost reductions, offset by an increase in stock compensation expense.
Financial Achievements
Despite the revenue shortfall, Absci Corp (ABSI, Financial) managed to narrow its net loss to $24.8 million, compared to $41.7 million in the same quarter last year. This improvement was largely due to the absence of a non-cash goodwill impairment charge of $21.3 million recorded in the second quarter of 2023.
Our recent achievements demonstrate solid execution across all aspects of our business, as we continue to progress internal and partnered programs according to plan," said Sean McClain, Founder and CEO.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $1.3 million | $3.4 million |
| Net Loss | $24.8 million | $41.7 million |
| R&D Expenses | $15.3 million | $12.1 million |
| SG&A Expenses | $9.3 million | $9.4 million |
Analysis and Outlook
Absci Corp (ABSI, Financial) continues to advance its internal pipeline, with notable progress in its ABS-101 program, which demonstrated a 2-3x extended half-life in non-human primate studies compared to antibodies in clinical development. The company also entered into a collaboration with Memorial Sloan Kettering Cancer Center to co-develop up to six novel oncology therapeutics.
Looking ahead, Absci Corp (ABSI, Financial) expects to initiate Phase 1 clinical studies for ABS-101 in early 2025, with an interim data readout expected in the second half of 2025. The company also anticipates selecting a development candidate for its ABS-201 program in the second half of 2024 and completing mode-of-action validation studies for its ABS-301 program in the same period.
Absci Corp (ABSI, Financial) projects a gross use of cash, cash equivalents, and short-term investments of approximately $80 million for the fiscal year ending December 31, 2024. Based on current plans, the company believes its existing cash, cash equivalents, and short-term investments will be sufficient to fund operations into the first half of 2027.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Absci Corp for further details.
