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AbSci (ABSI)
NASDAQ:ABSI
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AbSci
(NASDAQ:ABSI)
41Neutral
Positive Factors
Financial Health
Absci had approximately $112M in cash and cash equivalents at the end of 4Q24 and raised approximately $40M in equity funding since then, resulting in a pro forma cash balance of $152M.
Partnerships and Collaborations
Absci has struck multiple pharma deals and achieved key design milestones, validating its technology and likely attracting further partnerships.
Technology and Innovation
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.
Negative Factors
Financial Performance
For 4Q24, the company reported revenues of $0.7M, which was below the consensus estimate of $1.8M, and a net loss of $0.25 per share, compared to the consensus estimated net loss of $0.22 per share.
Revenue Expectations
Q4 revenues of $0.7M brought FY24 total revenues to $4.5M, below expectations.
AbSci (ABSI) vs. S&P 500 (SPY)
Market Cap
$397.34M
Dividend YieldN/A
Average Volume (3M)3.71M
Price to Earnings (P/E)―
Beta (1Y)2.95
Revenue Growth-20.71%
EPS Growth22.25%
CountryUS
Employees156
SectorHealthcare
Sector Strength73
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.93
Shares Outstanding127,353,230
10 Day Avg. Volume3,856,035
30 Day Avg. Volume3,709,605
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)84.53
Price to Cash Flow (P/CF)-5.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside195.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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 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 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
3.05
Price Trends
3.53
Negative
3.38
Negative
3.66
Negative
Market Momentum
-0.11
Negative
53.38
Neutral
88.07
Negative
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 3.05 is above the 20-day moving average (MA) of 2.72, below the 50-day MA of 3.53, and below the 200-day MA of 3.66, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 88.07 is Negative, 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 (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $419.10M | ― | -45.80% | ― | 316.30% | 29.18% | |
50 Neutral | $5.51B | 2.95 | -43.70% | 2.78% | 16.94% | 3.59% | |
48 Neutral | $416.79M | ― | ― | ― | ― | ||
45 Neutral | $376.65M | ― | -207.84% | ― | -14.02% | -72.44% | |
41 Neutral | $397.34M | ― | -58.04% | ― | -20.71% | 22.25% | |
37 Underperform | $382.54M | ― | -99.17% | ― | ― | 19.94% | |
35 Underperform | $398.90M | ― | 87.26% | ― | ― | -43.76% |
* Healthcare Sector Average
Performance Comparison
ABSI
AbSci
3.05
-2.24
-42.34%
OMER
Omeros
6.76
3.42
102.40%
ZVRA
Zevra Therapeutics
7.05
2.41
51.94%
STOK
Stoke Therapeutics
7.56
-4.16
-35.49%
SANA
Sana Biotechnology
1.58
-6.68
-80.87%
UPB
Upstream Bio, Inc.
8.42
-14.96
-63.99%
AbSci Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: -0.97% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Absci's achievements in advancing their AI drug creation platform and securing strategic partnerships, which contribute to their long-term potential. However, increased R&D expenses and decreased quarterly revenue suggest some immediate financial challenges. The sentiment is balanced given the strong future outlook offset by current financial metrics.Highlights
Successful Advancements in AI Drug Creation Platform
Absci demonstrated significant advancements in their AI integrated drug creation platform, including breakthroughs in de novo antibody design, particularly for creating a universal neutralizing HIV antibody, which was a collaboration with Caltech.
Strategic Partnerships and Collaborations
Absci added new partners like Owkin and Invetx, expanding their reach in AI-driven drug creation and animal health applications. Additionally, a strategic partnership with AMD included a $20 million investment to enhance computing capabilities.
Promising Pipeline Developments
Introduction of ABS-201, a potential best-in-class anti-prolactin receptor antibody for androgenic alopecia, and exciting preclinical data for ABS-101 and ABS-501, showcasing potential first-in-class and best-in-class attributes.
Financial Stability and Strategic Funding
Absci ended the year with $112.4 million in cash and investments, and raised an additional $40 million from strategic partnerships and mutual funds, extending their cash runway into the first half of 2027.
Lowlights
Increased R&D Expenses
Research and development expenses rose to $18.4 million for the quarter, up from $12.3 million in the prior year, primarily due to advancement in internal programs and increased stock compensation.
Decreased Revenue
Quarterly revenue was $0.7 million, reflecting slow progress in partner programs, which could indicate challenges in immediate monetization of their platform's capabilities.
Company Guidance
During the call, Absci provided guidance on several key metrics, emphasizing their progress and strategic outlook. They highlighted the addition of four new partners in 2024, achieving their partnership guidance for the year. The company is advancing its proprietary internal programs, including ABS-101 and ABS-201, with clinical trials for ABS-101 expected in the first half of 2025 and ABS-201 in early 2026. Financially, Absci reported a fourth-quarter revenue of $0.7 million, with research and development expenses reaching $18.4 million, primarily due to the advancement of internal programs. They ended the year with $112.4 million in cash and short-term investments, supplemented by a $20 million strategic investment from AMD and an additional $20 million raised from mutual funds. Absci expects their current cash reserves to fund operations into the first half of 2027. The company is also focusing on a potential large pharma partnership and anticipates signing one or more such collaborations in 2025.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.