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AbSci (ABSI)
NASDAQ:ABSI
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AbSci
(NASDAQ:ABSI)
Rating:40Underperform
Price Target:
$2.50
▼(-12.28%Downside)
Positive Factors
Clinical Progress
Absci has dosed the first participant in ABS-101's Ph1 trial, marking its transition into a clinical stage biotech.
Competitive Advantage
Absci's AI-driven platform can design antibodies to precisely target an epitope with optimized interface contacts to ensure high potency and affinity, setting itself apart from competitors.
Partnership Potential
Management cited strong potential partnership interest for ABS-101, allowing for a collaboration independent of the TL1A bispecific that Absci is progressing through its early pipeline.
Negative Factors
Financial Performance
Absci reported 1Q25 revenues of $1.2M, which fell short of the consensus estimate of $2.6M.
Partnership Risks
Risks to the Buy rating include potential issues with partnerships, technology, clinical and regulatory challenges, and competition.
Revenue Shortfall
Absci's cash & equivalents balance as of the end of 1Q25 was ~$135M, which management estimates provides a runway into 1H27.
AbSci (ABSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$354.61M
Dividend YieldN/A
Average Volume (3M)2.51M
Price to Earnings (P/E)―
Beta (1Y)2.64
Revenue Growth-9.95%
EPS Growth20.78%
CountryUS
Employees156
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.21
Shares Outstanding127,559,350
10 Day Avg. Volume1,925,095
30 Day Avg. Volume2,506,095
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.73
Price to Sales (P/S)0.00
P/FCF Ratio-4.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.14Price Target Upside220.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
AbSci Business Overview & Revenue Model
Company DescriptionAbSci Corporation (ABSI) operates in the biotechnology sector, focusing on transforming the process of drug discovery and development. The company utilizes its proprietary synthetic biology platform to enable the creation and production of complex biological molecules, including antibodies and other therapeutic proteins. AbSci's platform aims to accelerate the development of new drugs and optimize protein production processes for biopharmaceutical companies.
How the Company Makes MoneyAbSci makes money primarily through partnerships and collaborations with pharmaceutical and biotechnology companies. The company's revenue model includes upfront payments, milestone payments, and royalties based on the commercialization of products developed using its technology. AbSci's platform provides its partners with the capability to efficiently produce complex proteins, which are critical in developing new therapeutics. Additionally, the company may earn revenue by offering its services as a contract development and manufacturing organization (CDMO), providing end-to-end solutions for protein production. Significant partnerships with major biopharmaceutical companies contribute to its earnings by leveraging its technology to enhance drug discovery and development processes.
AbSci Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -3.72%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant milestones, including the initiation of clinical trials and a robust financial position. Despite increased expenses and modest revenue, the company's strategic focus on AI-driven drug discovery and potential partnerships indicates a positive outlook.Q1-2025 Updates
Positive Updates
Initiation of First-in-Human Clinical Trial
Absci initiated its first-in-human clinical trial for ABS-101, marking its transition to a clinical-stage biotech company. The trial focuses on safety and tolerability, with interim results expected later this year.
Strong Financial Position
Absci ended the quarter with $134 million in cash, cash equivalents, and short-term investments, up from $112.4 million at the end of 2024. The company expects these funds to support operations into the first half of 2027.
AI-Driven Drug Discovery Advancements
Absci's generative AI platform continues to accelerate the development of therapeutics, with promising progress in AI-designed antibodies for unmet medical needs.
Partnership and Collaboration Prospects
Absci anticipates signing one or more drug creation partnerships this year, including with a large pharma company, leveraging its AI platform.
Negative Updates
Increased Expenses
Research and development expenses increased to $16.4 million from $12.2 million in the prior year period, driven by internal program advancements and increased personnel and stock compensation expenses.
Modest Revenue
Revenue for the first quarter was $1.2 million, reflecting the early-stage nature of Absci's programs and the focus on progressing partner programs.
Company Guidance
In the recent call, Absci provided detailed guidance on their progress and future plans. The company announced the initiation of their first-in-human clinical trial for ABS-101, which is now in a Phase I study involving approximately 40 healthy adult volunteers. The trial aims to evaluate safety, tolerability, pharmacokinetics (PK), and pharmacodynamics (PD), with interim results expected later this year. Additionally, Absci is advancing ABS-201, an anti-prolactin receptor antibody, with a Phase I trial slated for early 2026 and interim efficacy data by the end of that year. The company reported Q1 2025 revenue of $1.2 million, with R&D expenses at $16.4 million, up from $12.2 million the previous year, and SG&A expenses at $9.5 million. Absci ended the quarter with $134 million in cash and short-term investments, projecting sufficient funding into the first half of 2027. The company also expressed optimism about potential partnerships, including with large pharmaceutical companies, and emphasized their commitment to leveraging AI for drug discovery.AbSci Financial Statement Overview
Summary
AbSci's financial performance is weak, highlighted by significant profitability challenges with negative gross and net profit margins, declining revenue, and cash flow difficulties. The balance sheet is strong with low leverage, but overall performance is hindered by persistent losses and cash flow issues.Income Statement
AbSci's income statement reflects significant challenges in achieving profitability, with persistent negative gross and net profit margins. The TTM figures show a gross profit margin of -144.49% and net profit margin of -232.14%, indicating ongoing operational inefficiencies. Revenue growth is negative, falling from $5.72 million in 2023 to $4.21 million in TTM 2024, a decline of 26.44%. These figures highlight difficulties in scaling revenue and controlling costs.30
Negative
Balance Sheet
The balance sheet reveals a relatively stable financial position with a high equity ratio of 85.58% in TTM 2024, which suggests low leverage and reliance on debt. However, the ongoing losses have led to a negative return on equity of -48.50%, reflecting challenges in generating returns for shareholders. The debt-to-equity ratio of 0.06 indicates minimal leverage but underscores the need for improved profitability.45
Neutral
Cash Flow
AbSci's cash flow statement shows a negative free cash flow growth, with TTM free cash flow decreasing by 8.04% from 2023. The operating cash flow to net income ratio is 0.72, indicating cash flow challenges relative to net income. Despite positive financing activities, the company struggles with cash generation from operations, posing a risk to sustainability without additional funding.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.21M | 5.72M | 5.75M | 4.78M | 4.78M | 2.06M | Gross Profit |
| -6.08M | -41.85M | -7.29M | -1.87M | -6.67M | -2.25M | EBIT |
| -103.35M | -115.52M | -106.75M | -75.24M | -13.30M | -6.26M | EBITDA |
| -83.27M | -95.46M | -91.36M | -99.77M | -12.59M | -5.83M | Net Income Common Stockholders |
| -97.67M | -110.57M | -104.90M | -100.96M | -14.57M | -6.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.09M | 97.66M | 164.43M | 252.57M | 69.87M | 13.09M | Total Assets |
| 0.00 | 217.30M | 321.01M | 426.19M | 88.57M | 19.47M | Total Debt |
| 0.00 | 15.96M | 22.98M | 20.01M | 14.50M | 6.02M | Net Debt |
| 13.09M | -56.41M | -36.97M | -232.56M | -55.37M | -7.07M | Total Liabilities |
| 0.00 | 41.12M | 46.59M | 60.09M | 178.00M | 60.63M | Stockholders Equity |
| 11.60M | 176.18M | 274.41M | 366.11M | -89.43M | -41.16M |
| Cash Flow | Free Cash Flow | ||||
| -70.76M | -65.50M | -97.51M | -98.64M | -13.15M | -7.13M | Operating Cash Flow |
| -70.36M | -64.64M | -81.34M | -60.60M | -10.97M | -6.03M | Investing Cash Flow |
| -41.66M | 81.94M | -126.98M | -67.38M | -2.17M | -1.09M | Financing Cash Flow |
| 80.31M | -4.48M | 5.24M | 336.19M | 70.97M | 12.71M |
AbSci Technical Analysis
Neutral
2.85
Price Trends
2.81
Positive
3.31
Negative
3.49
Negative
Market Momentum
-0.04
Negative
51.20
Neutral
74.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABSI, the sentiment is Neutral. The current price of 2.85 is above the 20-day moving average (MA) of 2.79, above the 50-day MA of 2.81, and below the 200-day MA of 3.49, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 74.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $597.29M | 13.83 | 20.50% | ― | 2333.50% | ― | |
64 Neutral | $583.12M | ― | ― | ― | ― | ||
54 Neutral | $489.38M | ― | -204.78% | ― | 44.92% | -40.06% | |
54 Neutral | $5.28B | 3.29 | -45.38% | 2.80% | 16.77% | -0.08% | |
40 Underperform | $354.61M | ― | -48.98% | ― | -9.95% | 20.78% | |
40 Underperform | $195.70M | ― | 87.26% | ― | ― | -43.76% | |
33 Underperform | $523.29M | ― | -71.44% | ― | ― | 19.94% |
* Healthcare Sector Average
Performance Comparison
ABSI
AbSci
2.84
-1.53
-35.01%
OMER
Omeros
3.30
-0.61
-15.60%
ZVRA
Zevra Therapeutics
8.83
4.11
87.08%
STOK
Stoke Therapeutics
10.88
-4.33
-28.47%
SANA
Sana Biotechnology
2.55
-4.81
-65.35%
UPB
Upstream Bio, Inc.
10.83
-12.55
-53.68%
AbSci Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Absci Initiates First Human Study for ABS-101
Neutral
May 13, 2025
On May 13, 2025, Absci Corporation announced the initiation of its first-in-human study for ABS-101, marking its transition to a clinical-stage biotech company. The company also shared promising preclinical data for ABS-201, indicating potential for a more effective treatment for androgenetic alopecia. Financially, Absci reported a net loss of $26.3 million for Q1 2025, with cash reserves expected to fund operations into the first half of 2027. The company’s strategic focus remains on advancing its internal pipeline and expanding partnerships, with anticipated new collaborations 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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.