Absci Corporation (Nasdaq: ABSI), the drug and target discovery
company harnessing deep learning AI and synthetic biology to expand
the therapeutic potential of proteins, today reported financial and
operating results for the quarter ended June 30, 2022.
"As we pass the halfway point of 2022, our team
continues to make excellent progress toward our stated objectives,"
said Sean McClain, founder and CEO. "Since becoming a public
company one year ago, we have signed 13 discovery programs and
continue to see momentum with adoption of our technology, reflected
in the discovery deals we've signed each of the last three
quarters. With ten new Active Programs for drug discovery
activities signed year-to-date, we have already exceeded our
guidance for the year. Furthermore, in light of current market
conditions, we've recently undertaken a diligent strategic review
of our operations to refine our focus on drug discovery value
creation. This has led to some difficult staffing decisions as
we've prioritized activities, but it has afforded us an extended
cash runway and positioned us optimally to achieve our vision of
fully in silico protein-based drug discovery."
Recent Highlights
- Exceeded
annual guidance of at least eight new Active Programs for 2022 with
ten Active Programs for drug discovery activities signed
year-to-date, bringing the total current number of Active Programs
to 19.
- Entered
into a multi-program collaboration agreement with an undisclosed
biotech partner operating in stealth-mode. The partner is focused
on discovery and development of antibody-drug-conjugates initially
for oncology indications and has developed novel, proprietary
warhead linker chemistries that it will target to specified sites
on subject antibodies by exploiting Absci’s Bionic™ protein
non-standard amino acid incorporation technology.
-
Presented results of development of AI models for antibody
optimization in an oral talk at the PEGS conference in May; the
research was additionally selected for presentation at the 2022
International Conference on Machine Learning Workshop on
Computational Biology in July. This research, along with our plan
for continued manuscripts, further demonstrates our progress and
leading role in the field of AI/ML drug discovery.
- Strengthened
executive leadership team, adding Denise Dettore as Chief People
Officer and Jack Gold as Chief Marketing Officer.
Strategic Reorganization
Absci recently undertook a strategic review of
operations to refine our focus on drug discovery value creation,
yielding a comprehensive corporate reorganization. Absci is
focusing on initiatives that reinforce progress toward our business
inflection points, extending cash and cash equivalents sufficient
to fund our operations into late 2025.
Internal R&D efforts will prioritize
continued development of our AI-powered drug discovery platform and
enhancement of our Bionic™ protein non-standard amino acid
incorporation technology. As a result of this reorganization, Absci
has undertaken actions to streamline its workforce, resulting in a
reduction of headcount, in addition to the elimination of certain
planned hires and capital expenditures.
Second Quarter 2022 Financial
Results
Cash and cash equivalents as of June 30,
2022 was $206.0 million, as compared to $252.6 million as of
December 31, 2021.
Research and development expenses were $16.2
million for the second quarter of 2022, as compared to $11.0
million for the second quarter of 2021. This increase was primarily
driven by growth in our team and related personnel costs, increased
lab operation costs, and additional investments in platform
expansion, including data initiatives and AI capabilities.
Selling, general, and administrative expenses
were $10.5 million for the second quarter of 2022, as compared to
$5.2 million for the second quarter of 2021. This increase was
primarily due to personnel-related costs and other expenses related
to operating as a publicly traded company.
Net loss was $28.7 million for the second
quarter of 2022, as compared to $41.2 million for the second
quarter of 2021.
2022 Outlook
Absci now expects a net decrease in cash, cash
equivalents, and restricted cash of approximately $110 million for
2022. This includes one-time, time-based disbursements totaling
$10.5 million from restricted cash associated with the Denovium and
Totient acquisitions.
About Absci
Absci is the drug and target discovery company
harnessing deep learning AI and synthetic biology to expand the
therapeutic potential of proteins. We built our Integrated Drug
Creation™ Platform to identify novel drug targets, discover optimal
biotherapeutic candidates, and generate the cell lines to
manufacture them in a single efficient process. Biotech and pharma
innovators partner with us to create the next generation of
protein-based drugs, including those that may be impossible to make
with other technologies. Our goal is to enable the development of
better medicines by Translating Ideas into Drugs™. For more
information visit www.absci.com and follow us on social media:
Twitter: @Abscibio, LinkedIn: @absci, and subscribe to our Absci
YouTube channel.
Availability of Other Information About
Absci
Investors and others should note that we
routinely communicate with investors and the public using our
website (www.absci.com) and our investor relations website
(investors.absci.com), including without limitation, through the
posting of investor presentations, SEC filings, press releases,
public conference calls and webcasts on these websites. The
information that we post on these websites could be deemed to be
material information. As a result, investors, the media, and others
interested in Absci are encouraged to review this information on a
regular basis. The contents of our website, or any other website
that may be accessed from our website, shall not be deemed
incorporated by reference in any filing under the Securities Act of
1933, as amended.
Forward-Looking Statements
Certain statements in this press release that
are not historical facts are considered forward-looking within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements containing the words “will,” “pursues,”
“anticipates,” “plans,” “believes,” “forecast,” “estimates,”
“extends,” “expects,” and “intends,” or similar expressions. We
intend these forward-looking statements, including statements
regarding our expectations regarding business operations, financial
performance and results of operations, including our expectations
and guidance regarding cash, cash equivalents and restricted cash,
our projected cash usage, needs and runway, plans for hiring, our
expectations for the count of new Active Programs, technology
development efforts and the application of those efforts,
advancements toward in silico drug design, drug discovery and
development activities, internal research and publication efforts,
and research and technology development collaboration efforts, to
be covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act, and we make this
statement for purposes of complying with those safe harbor
provisions. These forward-looking statements reflect our current
views about our plans, intentions, expectations, strategies, and
prospects, which are based on the information currently available
to us and on assumptions we have made. We can give no assurance
that the plans, intentions, expectations, or strategies will be
attained or achieved, and, furthermore, actual results may differ
materially from those described in the forward-looking statements
and will be affected by a variety of risks and factors that are
beyond our control, including, without limitation, risks and
uncertainties relating to our ability to effectively collaborate on
research, drug discovery and development activities with our
partners or potential partners; along with those risks set forth in
our most recent periodic report filed with the U.S. Securities and
Exchange Commission, as well as discussions of potential risks,
uncertainties, and other important factors in our subsequent
filings with the U.S. Securities and Exchange Commission. Except as
required by law, we assume no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Investor Contact:
investors@absci.com
Media Contact:
press@absci.com
Absci Corporation
Condensed Consolidated Statements of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(In thousands, except for share and per share
data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
|
Technology development revenue |
|
$ |
636 |
|
|
$ |
592 |
|
|
$ |
1,090 |
|
|
$ |
1,532 |
|
Collaboration revenue |
|
|
366 |
|
|
|
136 |
|
|
|
731 |
|
|
|
259 |
|
Total revenues |
|
|
1,002 |
|
|
|
728 |
|
|
|
1,821 |
|
|
|
1,791 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
16,241 |
|
|
|
11,040 |
|
|
|
32,068 |
|
|
|
18,090 |
|
Selling, general and administrative |
|
|
10,507 |
|
|
|
5,179 |
|
|
|
21,396 |
|
|
|
9,864 |
|
Depreciation and amortization |
|
|
3,141 |
|
|
|
1,201 |
|
|
|
6,047 |
|
|
|
1,677 |
|
Total operating expenses |
|
|
29,889 |
|
|
|
17,420 |
|
|
|
59,511 |
|
|
|
29,631 |
|
Operating loss |
|
|
(28,887 |
) |
|
|
(16,692 |
) |
|
|
(57,690 |
) |
|
|
(27,840 |
) |
Other expense |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(211 |
) |
|
|
(2,009 |
) |
|
|
(406 |
) |
|
|
(2,464 |
) |
Other income (expense), net |
|
|
148 |
|
|
|
(28,114 |
) |
|
|
273 |
|
|
|
(27,950 |
) |
Total other expense, net |
|
|
(63 |
) |
|
|
(30,123 |
) |
|
|
(133 |
) |
|
|
(30,414 |
) |
Loss before income taxes |
|
|
(28,950 |
) |
|
|
(46,815 |
) |
|
|
(57,823 |
) |
|
|
(58,254 |
) |
Income tax (expense)
benefit |
|
|
270 |
|
|
|
5,617 |
|
|
|
(351 |
) |
|
|
6,094 |
|
Net loss |
|
|
(28,680 |
) |
|
|
(41,198 |
) |
|
|
(58,174 |
) |
|
|
(52,160 |
) |
Cumulative undeclared
preferred stock dividends |
|
|
— |
|
|
|
(1,047 |
) |
|
|
— |
|
|
|
(2,042 |
) |
Net loss applicable to common
stockholders |
|
$ |
(28,680 |
) |
|
$ |
(42,245 |
) |
|
$ |
(58,174 |
) |
|
$ |
(54,202 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:Basic and diluted |
|
$ |
(0.32 |
) |
|
$ |
(2.39 |
) |
|
$ |
(0.64 |
) |
|
$ |
(3.13 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:Basic and diluted |
|
|
90,669,499 |
|
|
|
17,641,147 |
|
|
|
90,471,950 |
|
|
|
17,312,437 |
|
|
|
|
|
|
|
|
|
|
Absci
CorporationCondensed Consolidated Balance Sheets
(unaudited)
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
(In
thousands, except for share and per share data) |
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
206,021 |
|
|
$ |
252,569 |
|
Restricted cash |
|
|
15,017 |
|
|
|
10,513 |
|
Receivables under development arrangements |
|
|
310 |
|
|
|
1,425 |
|
Prepaid expenses and other current assets |
|
|
6,540 |
|
|
|
8,572 |
|
Total current assets |
|
|
227,888 |
|
|
|
273,079 |
|
Operating
lease right-of-use assets |
|
|
5,708 |
|
|
|
6,538 |
|
Property and
equipment, net |
|
|
54,890 |
|
|
|
52,114 |
|
Intangibles,
net |
|
|
53,308 |
|
|
|
54,992 |
|
Goodwill |
|
|
21,335 |
|
|
|
21,335 |
|
Restricted
cash, long-term |
|
|
1,845 |
|
|
|
16,844 |
|
Other
long-term assets |
|
|
1,341 |
|
|
|
1,293 |
|
TOTAL
ASSETS |
|
$ |
366,315 |
|
|
$ |
426,195 |
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
5,470 |
|
|
$ |
8,385 |
|
Accrued expenses |
|
|
17,054 |
|
|
|
17,434 |
|
Long-term debt, current |
|
|
2,135 |
|
|
|
2,400 |
|
Operating lease obligations |
|
|
1,584 |
|
|
|
1,502 |
|
Financing lease obligations |
|
|
2,651 |
|
|
|
2,785 |
|
Deferred revenue |
|
|
2,798 |
|
|
|
1,353 |
|
Total current liabilities |
|
|
31,692 |
|
|
|
33,859 |
|
Long-term
debt - net of current portion |
|
|
7,125 |
|
|
|
1,124 |
|
Operating
lease obligations - net of current portion |
|
|
8,175 |
|
|
|
8,969 |
|
Finance lease
obligations - net of current portion |
|
|
1,818 |
|
|
|
3,231 |
|
Deferred tax,
net |
|
|
1,085 |
|
|
|
743 |
|
Other
long-term liabilities |
|
|
227 |
|
|
|
12,162 |
|
TOTAL
LIABILITIES |
|
|
50,122 |
|
|
|
60,088 |
|
Commitments
(See Note 8) |
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
Preferred
stock, $0.0001 par value |
|
|
— |
|
|
|
— |
|
Common stock,
$0.0001 par value |
|
|
9 |
|
|
|
9 |
|
Additional
paid-in capital |
|
|
565,444 |
|
|
|
557,136 |
|
Accumulated
deficit |
|
|
(249,199 |
) |
|
|
(191,025 |
) |
Accumulated
other comprehensive loss |
|
|
(61 |
) |
|
|
(13 |
) |
TOTAL
STOCKHOLDERS' EQUITY |
|
|
316,193 |
|
|
|
366,107 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
366,315 |
|
|
$ |
426,195 |
|
|
|
|
|
|
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