tiprankstipranks
Trending News
More News >
AbSci (ABSI)
NASDAQ:ABSI
US Market

AbSci (ABSI) AI Stock Analysis

Compare
868 Followers

Top Page

AB

AbSci

(NASDAQ:ABSI)

Rating:51Neutral
Price Target:
$3.00
▲(1.01%Upside)
AbSci's overall stock score reflects significant financial challenges and speculative valuation, tempered by promising strategic developments and a solid cash position. Initiatives in AI-driven drug discovery and potential partnerships provide a positive outlook despite ongoing operational inefficiencies.
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)

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: 0.34%|
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 challenged by negative margins and cash flow issues. Despite a strong equity position and low leverage, profitability and cash flow generation are major concerns, evidenced by negative EBIT, EBITDA, and operating cash flow.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.82M4.53M5.72M5.75M4.78M4.78M
Gross Profit
-5.16M-8.86M-41.85M-7.29M-1.87M-6.67M
EBIT
-113.12M-108.89M-115.52M-106.75M-75.24M-13.30M
EBITDA
-93.91M-89.08M-95.46M-91.36M-99.77M-12.59M
Net Income Common Stockholders
-107.48M-103.11M-110.57M-104.90M-100.96M-14.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
133.98M112.42M97.66M164.43M252.57M69.87M
Total Assets
232.45M213.61M217.30M321.01M426.19M88.57M
Total Debt
8.23M10.11M15.96M22.98M20.01M14.50M
Net Debt
-38.76M-31.11M-56.41M-36.97M-232.56M-55.37M
Total Liabilities
33.65M34.48M41.12M46.59M60.09M178.00M
Stockholders Equity
198.80M179.13M176.18M274.41M366.11M-89.43M
Cash FlowFree Cash Flow
-76.81M-72.81M-65.50M-97.51M-98.64M-13.15M
Operating Cash Flow
-76.38M-72.40M-64.64M-81.34M-60.60M-10.97M
Investing Cash Flow
20.06M-41.58M81.94M-126.98M-67.38M-2.17M
Financing Cash Flow
44.14M82.53M-4.48M5.24M336.19M70.97M

AbSci Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.97
Price Trends
50DMA
2.82
Positive
100DMA
3.32
Negative
200DMA
3.47
Negative
Market Momentum
MACD
0.01
Negative
RSI
59.17
Neutral
STOCH
76.65
Neutral
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 2.97 is above the 20-day moving average (MA) of 2.82, above the 50-day MA of 2.82, and below the 200-day MA of 3.47, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.65 is Neutral, 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$608.21M14.1520.50%2333.50%
UPUPB
64
Neutral
$623.47M
54
Neutral
$506.33M-204.78%44.92%-40.06%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
51
Neutral
$386.50M-48.98%-9.95%20.78%
40
Underperform
$220.89M87.26%-43.76%
33
Underperform
$640.58M-71.44%19.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ABSI
AbSci
3.03
-1.48
-32.82%
OMER
Omeros
3.88
0.07
1.84%
ZVRA
Zevra Therapeutics
9.28
4.44
91.74%
STOK
Stoke Therapeutics
11.36
-4.48
-28.28%
SANA
Sana Biotechnology
2.91
-3.98
-57.76%
UPB
Upstream Bio, Inc.
11.59
-11.79
-50.43%

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
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.