Absci Corporation (Nasdaq: ABSI), a generative AI drug creation
company, today reported financial and operating results for the
quarter ended September 30, 2022.
"Absci delivered a strong quarter of successful
execution in partnered programs, technical breakthroughs, and
continued strengthening of our organization," said Sean McClain,
Founder and CEO. "During this past quarter, we demonstrated the
powerful capabilities of our Integrated Drug Creation™ platform by
leveraging generative AI for innovative antibody optimization as
provided in detail in our preprint manuscript recently released on
bioRxiv, further solidifying Absci's leadership position in AI drug
creation. The preprint manuscript detailing these findings
generated high academic engagement and significant industry
interest. Further, we welcomed Dr. Andreas Busch to Absci as Chief
Innovation Officer, bringing world-class R&D expertise to our
executive leadership team, and continuing our momentum toward
Absci's next phase of growth."
Recent Highlights
-
Milestone achievement and continued progress in previously
announced collaboration with Merck involving Absci's non-standard
amino acid (nsAA) technology.
- Preprint
manuscript released on bioRxiv demonstrating the capability of
Absci's Integrated Drug Creation™ platform to rapidly
simultaneously optimize multiple parameters important to drug
development (i.e., affinity and "naturalness") of antibodies in
silico using generative AI. Successfully applied, Absci's
Integrated Drug Creation™ platform will accelerate drug development
timelines and decrease attrition in early R&D.
-
Continued to strengthen executive leadership team, appointing
veteran pharma executive Andreas Busch, PhD as Chief Innovation
Officer. Over his career, including tenures leading R&D at
Bayer and Shire, he successfully led 10 commercial drugs from bench
to FDA approval, with more in current late-stage clinical
development.
-
Appointed Dan Rabinovitsj, a senior executive at Meta, the parent
company of Facebook, to Absci's Board of Directors. With the
continued convergence of technology and biotech, he brings valuable
expertise in scaling innovative technology companies.
- Absci
exceeded annual guidance of at least eight new Active Programs for
2022 with ten Active Programs for drug discovery activities signed
year-to-date, bringing the total current number of Active Programs
to 17.
Third Quarter 2022 Financial
Results
Cash, cash equivalents, and short-term
investments as of September 30, 2022 was $181.3 million,
compared to $206.0 million as of June 30, 2022. We used $19.0
million of cash for operating activities in the third quarter of
2022.
Total Revenue was $2.4 million for the third
quarter of 2022, as compared to $1.5 million for the third quarter
of 2021. This increase was primarily driven by the progress and
milestone achievement associated with our Merck collaboration
utilizing our nsAA technology.
Research and development expenses were $15.5
million for the third quarter of 2022, as compared to $10.7 million
for the third quarter of 2021. This increase was primarily driven
by growth in our team and related personnel costs, increased lab
operation costs, and additional investments in platform expansion,
including data initiatives and AI capabilities.
Selling, general, and administrative expenses
were $11.4 million for the third quarter of 2022, as compared to
$9.7 million for the third quarter of 2021. This increase was
primarily due to increased personnel and other administrative
costs.
Total operating expenses in the third quarter of
2022 also included $2.7 million of non-recurring severance-related
charges.
2022 Outlook
With the company's continued strategic
prioritization and focus on cost-saving opportunities, Absci
expects a net decrease in cash and cash equivalents, short-term
investments and restricted cash of approximately $105 million for
2022, compared to our prior expectation of $110 million. This
includes one-time, time-based disbursements totaling $10.5 million
from restricted cash associated with the Denovium and Totient
acquisitions that were paid in the first half of 2022.
Absci continues to focus its investments and
operations on strategic initiatives and near-term inflection
points, providing cash and cash equivalents and short-term
investments into late 2025, consistent with previous
disclosures.
About Absci
Absci is the drug and target discovery company
harnessing deep learning AI and synthetic biology to expand the
therapeutic potential of proteins. We built our Integrated Drug
Creation™ platform to identify novel drug targets, discover optimal
biotherapeutic candidates, and generate the cell lines to
manufacture them in a single efficient process. Biotech and pharma
innovators partner with us to create the next generation of
protein-based drugs, including those that may be impossible to make
with other technologies. Our goal is to enable the development of
better medicines by Translating Ideas into Drugs™. For more
information visit www.absci.com and follow us on social media:
Twitter: @Abscibio, LinkedIn: @absci, and subscribe to our Absci
YouTube channel.
Availability of Other Information About
Absci
Investors and others should note that we
routinely communicate with investors and the public using our
website (www.absci.com) and our investor relations website
(investors.absci.com), including without limitation, through the
posting of investor presentations, SEC filings, press releases,
public conference calls and webcasts on these websites, as well as
on Twitter, LinkedIn and YouTube. The information that we post on
these websites and social media outlets could be deemed to be
material information. As a result, investors, the media, and others
interested in Absci are encouraged to review this information on a
regular basis. The contents of our website and social media
postings, or any other website that may be accessed from our
website or social media postings, shall not be deemed incorporated
by reference in any filing under the Securities Act of 1933, as
amended.
Forward-Looking Statements
Certain statements in this press release that
are not historical facts are considered forward-looking within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements containing the words “will,” “pursues,”
“anticipates,” “plans,” “believes,” “forecast,” “estimates,”
“extends,” “expects,” and “intends,” or similar expressions. We
intend these forward-looking statements, including statements
regarding our expectations regarding business operations, financial
performance and results of operations, including our expectations
and guidance regarding cash and cash equivalents, short-term
investments and restricted cash, our projected cash usage, needs
and runway, our expectations for the count of new Active Programs,
technology development efforts and the application of those
efforts, including acceleration of drug development timelines,
advancements toward in silico drug design, drug discovery and
development activities, internal research and publication efforts,
and research and technology development collaboration efforts, to
be covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act, and we make this
statement for purposes of complying with those safe harbor
provisions. These forward-looking statements reflect our current
views about our plans, intentions, expectations, strategies, and
prospects, which are based on the information currently available
to us and on assumptions we have made. We can give no assurance
that the plans, intentions, expectations, or strategies will be
attained or achieved, and, furthermore, actual results may differ
materially from those described in the forward-looking statements
and will be affected by a variety of risks and factors that are
beyond our control, including, without limitation, risks and
uncertainties relating to our ability to effectively collaborate on
research, drug discovery and development activities with our
partners or potential partners; along with those risks set forth in
our most recent periodic report filed with the U.S. Securities and
Exchange Commission, as well as discussions of potential risks,
uncertainties, and other important factors in our subsequent
filings with the U.S. Securities and Exchange Commission. Except as
required by law, we assume no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Investor Contact:
investors@absci.com
Media Contact:
press@absci.com
absci@methodcommunications.com
Absci Corporation
Condensed Consolidated Statements of
Operations (unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
(In thousands, except
for share and per share data) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
|
Technology development revenue |
|
$ |
2,004 |
|
|
$ |
1,390 |
|
|
$ |
3,094 |
|
|
$ |
2,922 |
|
Collaboration revenue |
|
|
365 |
|
|
|
149 |
|
|
|
1,096 |
|
|
|
408 |
|
Total revenues |
|
|
2,369 |
|
|
|
1,539 |
|
|
|
4,190 |
|
|
|
3,330 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
15,525 |
|
|
|
10,730 |
|
|
|
47,593 |
|
|
|
28,820 |
|
Selling, general and administrative |
|
|
11,407 |
|
|
|
9,733 |
|
|
|
32,803 |
|
|
|
19,597 |
|
Depreciation and amortization |
|
|
3,404 |
|
|
|
2,218 |
|
|
|
9,451 |
|
|
|
3,895 |
|
Total operating expenses |
|
|
30,336 |
|
|
|
22,681 |
|
|
|
89,847 |
|
|
|
52,312 |
|
Operating loss |
|
|
(27,967 |
) |
|
|
(21,142 |
) |
|
|
(85,657 |
) |
|
|
(48,982 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(279 |
) |
|
|
(768 |
) |
|
|
(685 |
) |
|
|
(3,232 |
) |
Other income (expense), net |
|
|
675 |
|
|
|
(3,427 |
) |
|
|
948 |
|
|
|
(31,377 |
) |
Total other income (expense),
net |
|
|
396 |
|
|
|
(4,195 |
) |
|
|
263 |
|
|
|
(34,609 |
) |
Loss before income taxes |
|
|
(27,571 |
) |
|
|
(25,337 |
) |
|
|
(85,394 |
) |
|
|
(83,591 |
) |
Income tax (expense)
benefit |
|
|
312 |
|
|
|
1,703 |
|
|
|
(39 |
) |
|
|
7,797 |
|
Net loss |
|
|
(27,259 |
) |
|
|
(23,634 |
) |
|
|
(85,433 |
) |
|
|
(75,794 |
) |
Cumulative undeclared
preferred stock dividends |
|
|
— |
|
|
|
(242 |
) |
|
|
— |
|
|
|
(2,284 |
) |
Net loss applicable to common
stockholders |
|
$ |
(27,259 |
) |
|
$ |
(23,876 |
) |
|
$ |
(85,433 |
) |
|
$ |
(78,078 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:Basic and diluted |
|
$ |
(0.30 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.94 |
) |
|
$ |
(2.16 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:Basic and diluted |
|
|
91,105,265 |
|
|
|
73,291,288 |
|
|
|
90,686,517 |
|
|
|
36,177,105 |
|
|
|
|
|
|
|
|
|
|
Absci
CorporationCondensed Consolidated Balance Sheets
(unaudited)
|
|
September 30, |
|
|
December 31, |
|
(In thousands, except
for share and per share data) |
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
107,324 |
|
|
$ |
252,569 |
|
Restricted cash |
|
|
15,020 |
|
|
|
10,513 |
|
Short-term investments |
|
|
73,988 |
|
|
|
— |
|
Receivables under development arrangements, net |
|
|
210 |
|
|
|
1,425 |
|
Prepaid expenses and other current assets |
|
|
4,839 |
|
|
|
8,572 |
|
Total current assets |
|
|
201,381 |
|
|
|
273,079 |
|
Operating lease right-of-use
assets |
|
|
5,597 |
|
|
|
6,538 |
|
Property and equipment,
net |
|
|
55,466 |
|
|
|
52,114 |
|
Intangibles, net |
|
|
52,465 |
|
|
|
54,992 |
|
Goodwill |
|
|
21,335 |
|
|
|
21,335 |
|
Restricted cash,
long-term |
|
|
1,852 |
|
|
|
16,844 |
|
Other long-term assets |
|
|
1,291 |
|
|
|
1,293 |
|
TOTAL ASSETS |
|
$ |
339,387 |
|
|
$ |
426,195 |
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,858 |
|
|
$ |
8,385 |
|
Accrued expenses |
|
|
20,981 |
|
|
|
17,434 |
|
Long-term debt, current |
|
|
2,354 |
|
|
|
2,400 |
|
Operating lease obligations |
|
|
1,643 |
|
|
|
1,502 |
|
Financing lease obligations |
|
|
2,513 |
|
|
|
2,785 |
|
Deferred revenue |
|
|
679 |
|
|
|
1,353 |
|
Total current liabilities |
|
|
30,028 |
|
|
|
33,859 |
|
Long-term debt - net of
current portion |
|
|
6,517 |
|
|
|
1,124 |
|
Operating lease obligations -
net of current portion |
|
|
7,848 |
|
|
|
8,969 |
|
Finance lease obligations -
net of current portion |
|
|
1,263 |
|
|
|
3,231 |
|
Deferred tax, net |
|
|
756 |
|
|
|
743 |
|
Other long-term
liabilities |
|
|
33 |
|
|
|
12,162 |
|
TOTAL LIABILITIES |
|
|
46,445 |
|
|
|
60,088 |
|
Commitments (See Note 8) |
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
Preferred stock, $0.0001 par
value |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par
value |
|
|
9 |
|
|
|
9 |
|
Additional paid-in
capital |
|
|
569,365 |
|
|
|
557,136 |
|
Accumulated deficit |
|
|
(276,458 |
) |
|
|
(191,025 |
) |
Accumulated other
comprehensive income (loss) |
|
|
26 |
|
|
|
(13 |
) |
TOTAL STOCKHOLDERS'
EQUITY |
|
|
292,942 |
|
|
|
366,107 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
339,387 |
|
|
$ |
426,195 |
|
|
|
|
|
|
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