Absci outlines cash runway into 2028 and anticipates ABS-201 interim data in 2026 as clinical pipeline advances

Earnings Call Insights: Absci Corporation (ABSI) Q2 2025

MANAGEMENT VIEW

* Sean McClain, CEO, announced the initiation of Phase I clinical trials for ABS-101, describing it as "a potential best-in-class anti-TL1A antibody." He stated, "We continue to see tremendous value in the potentially differentiated profile of this molecule and expect to report interim results later this year from this ongoing study in Australia." McClain emphasized robust progress across the pipeline, highlighting ABS-201 as "our innovative anti-prolactin receptor antibody for androgenetic alopecia" and noted plans to initiate a Phase I/IIa trial in early 2026. He underscored that Absci "plans to develop ABS-201 internally through later-stage clinical development and proof of concept to realize maximum value given its potentially promising profile, defined development path and large market."
* McClain provided updates on additional programs, including ABS-301, targeting an undisclosed immuno-oncology target, and ABS-501, a potential anti-HER2 antibody, stating, "Early data indicate potential broad applicability to squamous cell carcinoma and other indications."
* A strategic $20 million investment from AMD was highlighted, with McClain noting, "Our collaboration continues to advance and AMD compute solutions supporting key workloads across our antibody design platform."
* McClain also announced, "last month, we took action to further strengthen our balance sheet. In July, we raised approximately $64 million in gross proceeds through a $50 million underwritten public offering and $14 million from premier investment firm utilizing our at-the-market facility."
* Zachariah Jonasson, CFO and Chief Business Officer, stated, "Revenue in the second quarter was $600,000 as we continue to progress our partnered programs." He added, "Research and development expenses were $20.5 million for the 3 months ended June 30, 2025, as compared to $15.3 million for the prior year period."
* Jonasson detailed that after the quarter's end, "we raised an additional approximately $64 million in gross proceeds, $50 million of which was raised through an underwritten public offering and $14 million of which was raised through our ATM facility." He explained, "With this additional capital, we believe our existing cash, cash equivalents and short-term investments will now be sufficient to fund our operations into the first half of 2028."

OUTLOOK

* Management anticipates "initiation of a Phase I/IIa trial [for ABS-201] in early '26 with potential interim efficacy and proof-of-concept data anticipated later that year."
* Jonasson expects to "sign one or more drug creation partnerships, including with a large pharma company" within the year and to provide material updates as programs advance.
* The company reiterated plans to develop ABS-201 through later-stage clinical development and proof of concept, while seeking partners for ABS-301 and ABS-501 at earlier stages.
* McClain stated, "We anticipate interim Phase I readout for ABS-101 later this year. We expect to close at least one new large pharma deal this year, and our ABS-201 program for androgenetic alopecia is on track to potentially see an interim efficacy readout next year."

FINANCIAL RESULTS

* Jonasson reported, "Revenue in the second quarter was $600,000 as we continue to progress our partnered programs. Research and development expenses were $20.5 million... Selling, general and administrative expenses were $8.5 million... Cash, cash equivalents and short-term investments as of June 30, 2025, were $117.5 million as compared to $134 million as of March 31, 2025."
* The company raised about $64 million in additional proceeds after the quarter ended. Jonasson said, "Our decision to execute these capital raises was strategic, targeted and size to proactively improve our balance sheet, supporting the achievement of key clinical readouts and other potential catalysts."
* He concluded, "With this strengthened balance sheet, we believe we are well positioned to advance our internal programs, including accelerating the development of ABS-201 toward a potential proof-of-concept readout in the second half of next year and to advance ongoing and new partnership discussions."

Q&A

* Brendan Mychal Smith, TD Cowen: Asked what kind of data and patient number to expect from the ABS-101 TL1A readout. Christian Stegmann answered, "We have planned to dose approximately 40 healthy volunteers for the ABS-101 Phase I study, and we expect to see pharmacokinetic and pharmacokinetic data at the interim readout, plus we expect to have a first read on immunogenic study."
* Smith: Asked about ABS-201 formulation and dosing plan. Stegmann stated, "We absolutely intend to deliver a subcutaneous formulation for this product as well. We expect to see a 6-month treatment cycle... 2 or 3 doses over a period of 6 months delivered subcutaneously."
* Alexander Xenakis, Truist: Asked about Absci's competitive AI advantage. McClain responded, "We really see [de novo AI for hard-to-drug targets] being a fundamental value prop for us, both for our partner programs, but also for our own internal development."
* Morgan K. Gryga, Morgan Stanley: Asked about quarterly dosing potential for ABS-101. Stegmann replied, "The data readout will be able to confirm the half-life, which we are anticipating to be once quarterly."
* Arseniy Shabashvili, Guggenheim: Asked about ABS-301/501 milestones and partnering. Jonasson stated, "The major thrust... is doing additional in vivo work... we would look to partner those programs early."
* Debanjana Chatterjee, Jones: Asked about benchmarks for ABS-201 efficacy. Stegmann said, "the target area headcount is obviously the #1 efficacy endpoint to look for in an androgenic alopecia trial... we'll share more details... at R&D Day later this year."
* Steven Craig Dechert, KeyBanc: Asked about capacity for new partnerships. Jonasson stated, "We look at our capacity on a quarterly basis. I think we're in good shape for what we want to accomplish with existing partners as well as what we're projecting for a new large pharma partnership later this year."

SENTIMENT ANALYSIS

* Analysts focused on clinical timelines, competitive positioning, and partnership strategy, with a neutral to slightly positive tone as they congratulated management and sought clarity regarding upcoming data and strategic milestones.
* Management's prepared remarks were confident, with phrases such as "we are excited to execute on the next phases of our strategy" and "we believe we are well positioned to advance our internal programs." During Q&A, management maintained composure, providing detailed and direct responses, occasionally deferring specifics for future updates.
* Compared to the previous quarter, the tone remains confident and optimistic, with an increased emphasis on financial strength and near-term clinical milestones.

QUARTER-OVER-QUARTER COMPARISON

* Guidance now extends cash runway into the first half of 2028 versus the previous projection into 2027, following a $64 million capital raise.
* Strategic focus shifted further to internal development of ABS-201, while ABS-101, ABS-301, and ABS-501 are positioned for potential partnerships or out-licensing.
* There is increased specificity around expected clinical milestones for ABS-101 and ABS-201, with interim data timelines provided, and a clear statement on the intent to sign at least one large pharma partnership this year.
* Management’s confidence has strengthened with the transition from preclinical to clinical-stage for ABS-101 and a more robust balance sheet post capital raise.
* Analysts continued to focus on clinical readouts, differentiation, and partnership opportunities, mirroring prior quarters but with greater attention to proof-of-concept timelines and financial runway.

RISKS AND CONCERNS

* Management cited "lumpy" revenue recognition tied to milestone-based partnership agreements and noted ongoing operational efficiencies to offset elevated R&D spending.
* The company acknowledged reliance on strategic partnerships and asset transactions for potential nondilutive cash inflows.
* Analysts questioned benchmarks for efficacy, dosing strategies, and capacity for additional programs, reflecting a continued focus on clinical and commercial execution risks.

FINAL TAKEAWAY

Management highlighted a strengthened financial position with a cash runway into 2028, advancing clinical programs, and anticipated key data readouts for ABS-101 and ABS-201 within the next year. The company remains focused on leveraging its AI-driven platform for both internal development and new partnerships, aiming to drive near-term value through clinical milestones and strategic transactions.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/absi/earnings/transcripts]

MORE ON ABSCI

* Absci Corporation (ABSI) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4812923-absci-corporation-absi-q2-2025-earnings-call-transcript]
* Absci stock dips after pricing $50M offering [https://seekingalpha.com/news/4472001-absci-stock-dips-after-pricing-50m-offering]
* Absci announces proposed public offering of common stock [https://seekingalpha.com/news/4471898-absci-announces-proposed-public-offering-of-common-stock]
* Seeking Alpha’s Quant Rating on Absci [https://seekingalpha.com/symbol/ABSI/ratings/quant-ratings]
* Historical earnings data for Absci [https://seekingalpha.com/symbol/ABSI/earnings]