Unlocking AB Science's Potential: Capital Raise Fuels Breakthroughs in Oncology and Neurodegenerative Therapies

The pharmaceutical landscape is rife with challenges, but AB Science (Euronext: ABS) is emerging as a trailblazer with its strategic capital raises and breakthrough drug candidates. Recent moves to secure funding have positioned the company to accelerate clinical trials for masitinib in neurodegenerative diseases and AB8939 in acute myeloid leukemia (AML), unlocking long-term shareholder value. Here’s why investors should pay close attention.

Strategic Capital Allocation: Fueling Breakthroughs

AB Science’s dual capital increases in 2024–2025—raising a total of €5.68 million—are not just stopgaps but strategic bets on high-potential pipelines. The September 2024 private placement, coupled with its PACT™ program in April 2025, ensures funding to advance AB8939’s Phase 1/2 trials and masitinib’s confirmatory Phase 3 study (AB23005). Crucially, this funding avoids dilution while securing €7.9 million in potential warrant exercises, creating a runway for clinical milestones.

Masitinib: A Neurodegenerative Game-Changer

Masitinib’s progress in amyotrophic lateral sclerosis (ALS) is nothing short of transformative. The AB23005 Phase 3 trial, now validated by the FDA and EMA, targets a 408-patient cohort with optimized inclusion criteria, addressing prior recruitment hurdles. Subgroup data from earlier trials show a 42% slowdown in disease progression and a +12-month survival benefit in eligible patients. These results, alongside preclinical evidence of neurofilament light chain (NfL) reduction, validate masitinib’s disease-modifying potential.

Beyond ALS, masitinib’s pipeline is expanding:
- Sickle cell disease (SCD): A Phase 2 trial (SICKMAST) sponsored by AP-HP, leveraging a U.S. patent (expiring 2040), aims to address acute complications.
- Multiple sclerosis (MS): Positive Phase 2B data showed reduced disability progression, positioning masitinib as a potential alternative to BTK inhibitors.

AB8939: A New Hope for AML Patients

AB8939’s Phase 1 trial has already delivered 50% response rates in MECOM-rearranged AML, a high-risk subgroup with poor prognosis. The drug’s dual mechanism—microtubule destabilization and ALDH inhibition—targets both cancer cells and stem cells, overcoming resistance to standard therapies. With EMA and FDA orphan drug designations secured in 2025, AB8939 is on track for accelerated approval via a streamlined Phase 2 trial requiring just 30% response rates at 3 months.

The orphan drug status grants 10 years of market exclusivity, shielding AB Science from competition while addressing a $2.5 billion AML market. Preclinical data further hint at efficacy in myelodysplasia (MDS) and ovarian cancer, expanding its therapeutic potential.

Financial Fortitude and Regulatory Momentum

AB Science’s cash reserves, bolstered by the capital raises, now stand at €8.0 million, with reduced operating losses (€6.1 million in 2024 vs. €13.4 million in 2023). This financial discipline, combined with patents extending to 2044 for AB8939 and 2040 for masitinib in SCD, creates a robust shield against IP challenges.

Regulatory momentum is equally strong:
- Masitinib’s AB23005 trial aims to provide the confirmatory data needed to resubmit for regulatory approval post-EMA rejection.
- AB8939’s Phase 2 trial, set to begin in 2025, could fast-track its entry into the market by 2026–2027.

Why Act Now?

The stakes are high, but the rewards are even greater:
1. Clinical Catalysts: Both programs are nearing pivotal trials with clear endpoints.
2. Orphan Drug Exclusivity: Ensures market dominance in niche, high-value indications.
3. Undervalued Stock: With a market cap of €22 million and a cash position of €8 million, the stock is priced for upside.

Final Analysis

AB Science’s strategic capital allocation and clinical advancements position it as a high-potential investment in oncology and neurodegenerative therapies. With AB8939 targeting a $2.5B AML market and masitinib addressing unmet needs in ALS and SCD, the company is primed to deliver transformative data in the next 12–18 months. For investors seeking exposure to breakthrough therapies with clear regulatory pathways, AB Science offers a compelling risk-reward profile—now is the time to act.

Investors should consider diversification and consult with a financial advisor before making any investment decisions.