Absci Corp (ABSI)·Q1 2025 Earnings Summary

Executive Summary

• Absci became a clinical-stage biotech with first healthy volunteers dosed in the Phase 1 study of ABS-101 (anti‑TL1A); interim data expected 2H25, a key stock catalyst alongside potential new pharma partnerships in 2025 .
• Q1 2025 revenue was $1.2M vs $0.9M a year ago; net loss was $26.3M and EPS was $(0.21). Cash, cash equivalents and short-term investments rose to $134.0M, extending runway into 1H 2027 .
• Versus S&P Global consensus, EPS modestly beat while revenue modestly missed; EBITDA loss was slightly larger than expected (see Estimates Context) (*S&P Global).
• ABS-201 (anti‑PRLR for androgenetic alopecia) delivered supportive NHP PK/PD with >90% SC bioavailability and expected Q8–12W human dosing; Phase 1 initiation targeted for early 2026, with interim efficacy readout in 2H26 .
• Management reiterated a robust business development funnel and expects to sign one or more drug-creation partnerships in 2025; ABS-101 partnering discussions are active, while ABS‑201 is likely to be retained longer to maximize value .

What Went Well and What Went Wrong

What Went Well

• Transition to clinical stage: “We have initiated our first‑in‑human clinical trial for ABS‑101, officially making Absci a clinical stage biotech company.” — CEO Sean McClain .
• Strengthened cash position and runway: Cash, cash equivalents and short-term investments increased to $134.0M, with runway into 1H27, enabling continued internal pipeline investment .
• ABS-201 momentum and differentiated profile: NHP data show extended half-life and >90% SC bioavailability with anticipated Q8–12W dosing; Phase 1 planned for early 2026 with interim efficacy in 2H26 .

What Went Wrong

• Scale still early vs cost base: Revenue of $1.2M remains small relative to OpEx ($28.9M) and net loss ($26.3M), highlighting ongoing burn as programs advance .
• Expense growth year over year: R&D ($16.4M) and SG&A ($9.5M) rose vs prior year due to program advancement and higher stock comp .
• Limited near-term quantitative guidance: No revenue/OpEx guidance; key value inflections are clinical and BD milestones. Phase 1b/2a design for ABS‑101 and ABS‑201 dosing specifics will be disclosed later, leaving some uncertainty for near-term modeling .

Financial Results

Overall results and trajectory:

KPIs and expense mix:

Context:

• Year-over-year (vs Q1 2024): revenue grew to $1.2M from $0.9M; R&D rose to $16.4M from $12.2M; SG&A rose to $9.5M from $8.7M; net loss increased to $26.3M from $22.0M .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We have initiated our first‑in‑human clinical trial for ABS‑101, officially making Absci a clinical stage biotech company.” — CEO Sean McClain .
• “We continue to anticipate signing one or more drug creation partnerships, including with a large pharma company this year.” — CFO/CBO Zach Jonasson .
• “We plan to develop ABS‑201 internally through later‑stage clinical development and proof of concept to retain maximum value.” — CEO Sean McClain .
• “Based on our current plan, we believe our existing cash, cash equivalents and short‑term investments will be sufficient to fund our operations into the first half of 2027.” — CFO/CBO Zach Jonasson .
• ABS‑201 profile highlighted: extended half‑life and >90% SC bioavailability in NHPs, supporting Q8–12W human dosing .

Q&A Highlights

• ABS‑101 Phase 1 readout priorities: validate safety, low immunogenicity, extended half‑life, and sustained target engagement (elevation of total soluble TL1A) in humans .
• ABS‑201 dosing and administration: modeling supports Q8–12W dosing; initial administration via providers with potential for self‑administration longer term .
• Market segmentation for ABS‑201: mechanism could be efficacious across broad AGA segments (men and women); trial design details to follow .
• TL1A combination/bispecific strategy: in‑house bispecific with a novel pro‑inflammatory target; partners show interest in combo approaches (e.g., industry focus on combos) .
• Partnerships and economics: expect improved deal terms as platform and clinical validation build; cost structure remains flexible with efficiency gains from AI .

Estimates Context

Q1 2025 actuals vs S&P Global consensus:

Values with asterisks (*) were retrieved from S&P Global.

Implications: modest top‑line shortfall likely immaterial given services revenue volatility; EPS beat driven by lower per‑share loss; EBITDA loss slightly wider than expected, consistent with ongoing pipeline investment (*S&P Global) .

Key Takeaways for Investors

• Clinical inflection now in sight: ABS‑101 interim Ph1 data in 2H25 is the next key catalyst; success could improve partnering terms and derisk the AI platform .
• ABS‑201 is a potentially category‑defining aesthetic/dermatology asset; favorable NHP PK/PD and anticipated Q8–12W dosing support patient‑friendly positioning with Phase 1 start targeted early 2026 .
• Balance sheet supports execution through 1H27; management points to potential nondilutive BD cash inflows as upside to runway .
• 2025 partnership optionality: management expects one or more drug creation partnerships (incl. Large Pharma), plus active ABS‑101 asset transaction discussions, providing multiple shots on goal .
• Expense discipline vs progress: OpEx remains elevated to fund internal assets; Q1 showed slight sequential improvement in operating loss while investing for clinical milestones .
• Trading setup: near‑term stock drivers are (1) ABS‑101 Ph1 interim readout; (2) new pharma partnerships; (3) additional ABS‑201 disclosures; any positive clinical/biz-dev update could re-rate platform/value .
• Risk watch: continued cash burn until partnering/clinical milestones; execution risk on clinical timelines and competitive TL1A/AGA landscapes .