AB Science’s 2024 Financial Report: A Turning Point for a Biotech on the Brink

As AB Science prepares to release its 2024 annual financial report on May 9, 2025, investors are bracing for a verdict on whether this small-cap biotech can finally turn the corner. With a pipeline anchored by its experimental drug masitinib—a therapy with potential in multiple high-stakes diseases—and a financial foundation that’s been both precarious and improving, the report could be a make-or-break moment. Let’s dive into the data, the risks, and what this means for shareholders.

The Financial Tightrope: Progress or Peril?

AB Science’s first half of 2024 showed a glimmer of hope. The operating deficit shrank by nearly 60% to €3.6 million, while net losses dropped by 57% to €4.47 million. Revenue inched up to €560,000, driven by the return of sales for Masivet (the veterinary version of masitinib), which overcame supply chain hurdles. Crucially, the company secured a €5 million capital raise in September 2024, boosting its cash reserves to €9.1 million as of June 30, 2024—though that figure may have shifted by year-end.

But the challenges remain stark. AB Science’s trailing twelve-month (TTM) revenue is still a meager €1.08 million, and its net loss for the same period was €6.04 million. With shareholders’ equity in negative territory, the company is reliant on partnerships and financing to stay afloat.

The Masitinib Gamble: Regulatory Crossroads

The star of AB Science’s pipeline, masitinib, is a dual tyrosine kinase inhibitor targeting diseases like amyotrophic lateral sclerosis (ALS), multiple sclerosis (MS), and cancer. However, its regulatory path has been bumpy.

• ALS: The European Medicines Agency (EMA) issued a negative opinion on conditional approval, citing concerns about trial data inconsistencies. AB Science is fighting back, arguing the EMA acknowledged the drug’s safety and is addressing protocol objections. In Canada, a regulatory setback was followed by a reconsideration request.
• MS: Here’s the silver lining. Phase 2B data showed masitinib reduced disability progression by 32–37%, a result that could position it as a breakthrough therapy. Preclinical data also suggests it protects neurons, a critical advantage over rivals like tolebrutinib.
• Cancer and Beyond: New patents extend protection until 2040 for uses in sickle cell disease and mastocytosis. Meanwhile, its experimental drug AB8939 (a microtubule inhibitor) showed a 50% response rate in a rare form of acute myeloid leukemia (AML), hinting at untapped potential.

The Bottom Line: Buy the Dip or Bail?

The May 9 report will likely answer critical questions: - Did the company secure enough cash to fund operations beyond 2025? - Are R&D costs continuing to decline, or will regulatory battles force a cash drain? - Is there any meaningful revenue growth beyond Masivet sales?

The positives are undeniable. Masitinib’s MS data could lead to partnerships or accelerated approvals, while AB8939’s AML results open new avenues. The EMA’s re-examination and Canadian regulatory reconsideration also add upside catalysts.

But the risks are existential. A failure to secure ALS approval could sink investor confidence, and the company’s tiny revenue stream leaves little room for error. Even a “strong buy” rating from analysts like In Extenso Finance hinges on execution.

Conclusion: A High-Reward, High-Risk Roll of the Dice

AB Science is a classic speculative play—a company with a potentially transformative drug portfolio but a fragile financial base. If the 2024 report shows sustained cost discipline, sufficient liquidity, and progress toward regulatory wins in MS or AML, shares could surge. But a stumble on any front could trigger a collapse.

Investors should ask: Is the potential upside worth the risk? For masitinib’s MS data alone—targeting a $20 billion market with no disease-modifying treatments—the answer might be yes. Pair that with a $50 million market cap and a pipeline extending to 2042, and AB Science is a high-risk, high-reward bet for those willing to stomach volatility.

The May 9 report is the moment of truth. If AB Science can prove it’s moving from “almost there” to “there,” it could be a steal at current prices. But if the data falters, this biotech might remain stuck in the lab—without the cash to finish the experiment.