Absci (ABSI) Q2 Earnings call transcript Aug 14, 2024

Absci's second quarter 2024 business update call provided valuable insights into the company's ongoing efforts to advance its internal and partnered programs, as well as its financial position and strategic collaborations. Below are the key takeaways from the call.

Strategic Partnerships and Program Progress

Absci's strategic partnership with Memorial Sloan Kettering Cancer Center (MSK) was highlighted as a significant milestone, with the potential to unlock critical advances towards treating devastating diseases. The collaboration aims to co-develop up to six therapeutic programs, leveraging MSK's research expertise and Absci's generative AI drug creation platform. Absci's platform's unique capabilities in creating differentiated antibody candidates have attracted multiple strategic partnerships, including with AstraZeneca, Merck, Almirall, and NVIDIA.

Clinical and Preclinical Progress

Absci showcased promising progress in its internal pipeline, with ABS-101, ABS-201, and ABS-301 demonstrating significant advancements. ABS-101, an anti-TL1A antibody, displayed 2x to 3x extended half-life compared to antibodies in clinical development, demonstrating its potential for best-in-class status. ABS-201, a potential best-in-class dermatology program, is designed for an undisclosed dermatological indication with significant unmet need. ABS-301, a first-in-class immuno-oncology program, is designed to bind to a novel target discovered through Absci's reverse immunology platform.

Financial Highlights

Absci's financials for the second quarter of 2024 revealed a revenue of $1.3 million, driven by progress on partnered internal programs. Research and development expenses increased to $15.3 million due to increased lab operations and direct costs associated with IND-enabling studies for ABS-101. Selling, general and administrative expenses decreased due to lower personnel costs and continued reductions in administrative costs. The company ended the quarter with $145.2 million in cash, cash equivalents, and short-term investments.

Future Outlook

Looking ahead, Absci remains focused on continued innovation and execution on its internal and partner programs, aiming to create better biologics for patients faster. The company anticipates signing partnerships with at least three more partners in addition to its collaboration with MSK, bringing the total to at least four new partnerships in 2024. Absci continues to advance its internal programs, with plans to advance at least one additional internal therapeutic program to the lead stage later this year.

Epilogue

Absci's second quarter 2024 business update call underscores the company's strategic partnerships, clinical and preclinical progress, and financial position, positioning it well for future success in the biologics market. The company's focus on innovation, collaboration, and advancing its pipeline is a testament to its commitment to creating differentiated and potentially first-in-class or best-in-class assets for various indications, including immunology and oncology. Absci's strategic partnerships, such as with MSK, demonstrate its ability to leverage its AI drug creation platform and expertise to drive advancements in drug development and treatment of various diseases.