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AbSci (ABSI)
NASDAQ:ABSI
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AbSci (ABSI) AI Stock Analysis

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ABSI

AbSci

(NASDAQ:ABSI)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$2.50
▼(-33.16% Downside)
The overall stock score is primarily impacted by financial performance challenges, including negative profitability and cash flow issues. While the earnings call provided some positive developments in clinical trials and partnerships, these are offset by increased R&D expenses and low revenue. Technical analysis suggests a bearish trend, and valuation metrics are unattractive due to ongoing losses.
Positive Factors
Strategic Partnerships
The expansion of the Almirall partnership, with potential milestone payments of $650 million, enhances AbSci's revenue potential and validates its platform.
Financial Position
Raising $64 million extends AbSci's cash runway into 2028, providing financial stability and supporting ongoing R&D and operational activities.
Technological Advancement
AMD's $20 million investment in AbSci's AI-driven platform underscores confidence in its technology, potentially accelerating drug discovery and development.
Negative Factors
Profitability Challenges
Persistent negative margins and cash flow issues highlight operational inefficiencies, posing risks to long-term profitability and financial health.
R&D Expense Increase
Rising R&D costs, while necessary for growth, strain financial resources and require successful outcomes to justify the investment.
Revenue Stagnation
Low revenue indicates challenges in monetizing partnerships and achieving sustainable growth, impacting the company's financial trajectory.

AbSci (ABSI) vs. SPDR S&P 500 ETF (SPY)

AbSci Business Overview & Revenue Model

Company DescriptionAbsci Corporation, a drug and target discovery company, provides biologic drug candidates and production cell lines using integrated drug creation platform for partners in the United States. Its integrated drug creation platform enables the creation of biologics by unifying the drug discovery and cell line development processes into one process. Absci Corporation was founded in 2011 and is headquartered in Vancouver, Washington.
How the Company Makes MoneyAbSci generates revenue primarily through collaborations and partnerships with pharmaceutical and biotechnology companies. These partnerships typically involve research and development agreements where AbSci provides its expertise and technology to help partners discover, design, and optimize protein-based drugs. The company earns money through upfront payments, milestone payments, and royalties based on the success and commercialization of the therapeutics developed using its platform. Additionally, AbSci may offer contract services for specific research and development projects, contributing further to its revenue streams.

AbSci Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials and strategic partnerships, strengthening Absci's financial position and enhancing its drug development capabilities. However, the increase in R&D expenses and low revenue figures present challenges that need to be addressed.
Q2-2025 Updates
Positive Updates
Initiation of Phase I Clinical Trials for ABS-101
Absci began Phase I clinical trials for ABS-101, a potential best-in-class anti-TL1A antibody, with plans to report interim results later in the year.
Progress on ABS-201 Program
ABS-201, an innovative antip-prolactin receptor antibody for androgenetic alopecia, is advancing rapidly towards clinical trials, offering potential breakthrough in hair regrowth therapy.
Strategic Investment by AMD
AMD made a $20 million strategic investment in Absci, supporting the development of Absci's AI-driven drug creation platform.
Successful Capital Raise
Absci raised approximately $64 million in gross proceeds to strengthen the balance sheet, extending cash runway into the first half of 2028.
Expansion with Almirall Partnership
Almirall collaboration advanced to include a second program with potential milestone payments totaling approximately $650 million.
Negative Updates
Increased R&D Expenses
Research and development expenses increased to $20.5 million from $15.3 million in the prior year, driven by program advancements and personnel costs.
Decreased Cash and Investments
Cash, cash equivalents, and short-term investments decreased from $134 million to $117.5 million as of June 30, 2025.
Low Quarterly Revenue
Revenue for the second quarter was only $600,000, indicating slow progress in monetizing partnered programs.
Company Guidance
During Absci's Second Quarter 2025 Business Update Call, the company provided significant guidance on its financial and operational progress. The call highlighted multiple key metrics, including the initiation of Phase I clinical trials for ABS-101, with interim results anticipated later this year, and plans for ABS-201 to enter Phase I/IIa trials in early 2026. The company reported second-quarter revenue of $600,000, with research and development expenses increasing to $20.5 million from $15.3 million year-over-year, while selling, general, and administrative expenses decreased to $8.5 million. Absci strengthened its financial position by raising approximately $64 million, bringing its cash, cash equivalents, and short-term investments to $117.5 million as of June 30, 2025, ensuring operations are funded into the first half of 2028. Management reiterated the strategic focus on out-licensing and partnering programs, with an anticipated drug creation partnership with a large pharma company expected this year. The company is also advancing its AI-driven drug creation platform, supported by a $20 million strategic investment from AMD.

AbSci Financial Statement Overview

Summary
AbSci is struggling with profitability and cash flow generation, as evidenced by negative margins and cash flow metrics. The balance sheet remains relatively stable, with a solid equity base and low leverage, but operational inefficiencies and growth challenges present substantial risks that need to be addressed to improve financial health.
Income Statement
35
Negative
The income statement reveals persistent revenue stagnation and consistent net losses. The Gross Profit Margin and Net Profit Margin are negative, highlighting ongoing operational challenges. Revenue growth remains unstable with a decline in recent periods, while negative EBIT and EBITDA margins indicate significant operational inefficiencies.
Balance Sheet
45
Neutral
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial leverage is not a major concern. However, the continued net losses impede returns, as evidenced by the negative ROE. The equity ratio is relatively stable but has been decreasing, reflecting potential asset allocation challenges.
Cash Flow
40
Negative
Operating Cash Flow remains negative, reflecting ongoing cash burn, while Free Cash Flow also faces significant challenges. The company’s cash flow from operations compared to net income shows issues in converting income into cash, despite positive financing activities in recent periods providing liquidity support.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.14M4.53M5.72M5.75M4.78M4.78M
Gross Profit-3.04M-8.86M-41.85M-7.29M-1.87M-6.67M
EBITDA-100.08M-89.08M-95.46M-91.36M-99.77M-12.59M
Net Income-113.30M-103.11M-110.57M-104.90M-100.96M-14.35M
Balance Sheet
Total Assets209.89M213.61M217.30M321.01M426.19M88.57M
Cash, Cash Equivalents and Short-Term Investments117.46M112.42M97.66M164.43M252.57M69.87M
Total Debt7.25M10.11M15.96M22.98M20.01M14.50M
Total Liabilities36.52M34.48M41.12M46.59M60.09M178.00M
Stockholders Equity173.37M179.13M176.18M274.41M366.11M67.00M
Cash Flow
Free Cash Flow-76.73M-72.81M-65.50M-97.51M-98.64M-13.15M
Operating Cash Flow-76.41M-72.40M-64.64M-81.34M-60.60M-10.97M
Investing Cash Flow27.84M-41.58M81.94M-126.98M-67.38M-2.17M
Financing Cash Flow43.27M82.53M-4.48M5.24M336.19M70.97M

AbSci Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.74
Price Trends
50DMA
2.78
Positive
100DMA
2.81
Positive
200DMA
3.08
Positive
Market Momentum
MACD
0.25
Negative
RSI
71.62
Negative
STOCH
83.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABSI, the sentiment is Positive. The current price of 3.74 is above the 20-day moving average (MA) of 2.88, above the 50-day MA of 2.78, and above the 200-day MA of 3.08, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 71.62 is Negative, neither overbought nor oversold. The STOCH value of 83.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABSI.

AbSci Risk Analysis

AbSci disclosed 83 risk factors in its most recent earnings report. AbSci reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

AbSci Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$498.37M123.38%15.73%38.73%
52
Neutral
$392.30M-38.87%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
47
Neutral
$361.62M-26.77%-24.60%
45
Neutral
$562.21M-57.39%27.32%-1.34%
41
Neutral
$415.18M-52.18%187.52%26.32%
39
Underperform
$493.98M-77.83%43.16%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ABSI
AbSci
3.74
-0.07
-1.84%
AUTL
Autolus Therapeutics
1.49
-2.49
-62.56%
RAPT
RAPT Therapeutics
29.02
14.06
93.98%
ADCT
ADC Therapeutics
4.31
1.44
50.17%
FDMT
4D Molecular Therapeutics
8.32
-0.68
-7.56%
DSGN
Design Therapeutics
6.49
1.81
38.68%

AbSci Corporate Events

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Absci Reports Strong Q2 2025 Financial Results
Positive
Aug 12, 2025

On August 12, 2025, Absci Corporation announced its second quarter financial results and business updates, highlighting a strengthened balance sheet with $64 million raised in July 2025, sufficient to fund operations into 2028. The company expanded its collaboration with Almirall, focusing on dermatological indications, and reported progress in its internal pipeline, including clinical trials for ABS-101 and ABS-201. Despite a net loss of $30.6 million for the quarter, Absci continues to advance its AI Drug Creation platform and anticipates further partnerships in 2025.

The most recent analyst rating on (ABSI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on AbSci stock, see the ABSI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 27, 2025