ABSI - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Absci First Quarter 2024 Business Update Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like now to turn the conference over to Alex Khan, Vice President, Finance and Investor Relations. Please go ahead.

Alexander Khan

you. Thank released XXXX. results Absci ended the and XX, March financial today, for operating quarter Earlier

haven't this company's for at you archived for to after send If replay received days e-mail at webcast be would if an call. Investor will this added least like of you on this XX to be investors@absci.com. Absci's investors.absci.com the to distribution call please news list, An release available or website Relations

and Sean Absci's McClain, Q&A Chief Absci's Creation, Joining Zach me CEO Business Stegmann, Jonasson, remarks. Officer and Christian will today SVP Chief and are following prepared for Financial Founder Drug also Officer. join of

of like and reliance this or laws. These the Before I'd to anticipated we and during you statements involve make call material that begin, you that not on results any forward-looking forward-looking management actual should from risks could are cause differ those statements meaning federal will that undue uncertainties events place securities remind the statements. materially to within

This May other and otherwise. the live by law, or of either obligation or intention XX, is forward-looking information new could documents appears Absci or cause projections future and required entitled Absci results factors accurate any XXXX. reports to or press events statements issued to the by time regarding update the Absci contains financial with as because disclaims and call pipeline Exchange or time and Commission. that today Forward-Looking Except revise broadcast, release filed differ the time-sensitive section and only product any information, in uncertainties from to these Securities Additional in Statements conference of the risks, as information

over I'll turn the to Sean. With that, call

Sean McClain

you to lot changed our since joining morning, Good update conference today then. everyone for for A call has Alex. XXXX. since Thanks, and first business us thank

of on a have for this to base change. call, showing share moving Among and you regular research welcome them, for we progress, host we provide expansion and coverage. our quarterly setting which latest few are want are to details are analyst a an update our investor dialogue. venues conferences open interactive other reasons to with forward. our shareholder our There active and the excited in we'll been progress allow at pleased While we to basis We

business our programs, partner. exclusively revolved model our was previously Additionally, influenced almost where our around communication by partner

XXXX making mind, brief that business the whole. a model, and our With hybrid in discussing in before of new our the us pipeline, the provide discuss gives to to Our and Later are more recap internal outlook I'd status each of on a internal progress with made our program. XXXX. in including will exciting for in our progress business begin opportunity more programs we like on achievements call, detail each Zach the we as

data as that AI train platform enables operations. generate generation and our data our asked stops of to designed Any validate, leaders and creation with create operate AI integration improve often what a ability features, discovery and wet for with screen industry. us of drug drug positions the data. differentiating lab these partner on are and to apart result in The amounts platform an our our continuously and a the breakthrough Based scalable of choice We biological pillars across sets and lab capabilities of to to data does. integrated with starts about it to us our of and learn discussion massive as industry what as platform is biologics our

by a to only is of our capital-efficient year. groundwork a to of Looking efforts platform through clear differentiated epitope the laid create the our made manner possible rapidly in back antibody in and accomplishments specificity candidates first our XXXX. team on result ability direct is while team's design The from XXXX, our of dedicated the previous were it due quarter they achieving

the We manuscript AI. first antibodies release foundational started XXXX novo of zero-shot demonstrating and a with with a generative validating and de creating

the harnessing and to lab expanded our models, proprietary scalable model for biological the data technology we validation. wet year, Over training generate

We optimize to organization validating Almirall. our to our partnerships deeply. companies build these a to and like establish of of hybrid create AstraZeneca line and platform integrate and continue all our capabilities have team, aimed talented In model, our with assets pipeline leverage our with business platform

potential programs. last pivotal by antibody inaugural our R&D year, internal reached asset we unveiling at moment best-in-class including Day, In of a first-in-class October and of programs, our pipeline

We manner be advancing detail translation later. it Zach these the we antibody ABS-XXX, positive gratifying into differentiated our best-in-class time is see of a XXXX, to capital-efficient create with with our anti-TLXA an properties But of data back, February, stepping compared by We initiated greater this like generative demonstrated beginning each using to the are differentiated and of to standards. programs industry will end which we program. AI platform's idea our platform excited to IND-enabling to create our candidates studies. very reality. antibody the ability continue discussing At in and antibody for in a unveiled of preclinical program potential And humbling

program highlight efficiency As our I this we implications. vast advance the potential in this program, and platform's to want generating

where could biotech novel approximately complete $XX potential studies is a of similar and power cost we of overall antibody of biotech the other at cost to We future a current months, demonstrate results million. level, platform than allocated selected our platform, example high success. and additional and opportunities early a million. typically enable model. our asset generated see be programs. candidates, of differentiated could we improving paradigm probability capital new At just pipeline This ABS-XXX one a drug unlocks multiple in for powerful spread and at $X IND-enabling a generate of In the candidate through across an XX less candidate our the for business a could our

who look into encouraged our leaders. applying their biotech and discovery to our addition probabilities success forward unlocking In collaborations. and industry biologies including These bring will internal and recent beyond, advance year time talent, we skill companies. partners our unachievable. new to pharma thought to are industry enable reception, partnerships Merck and costs, entering the with with count invaluable companies by platform partnerships to potentially is and pipeline, humbling This improving additional programs to our leverage AstraZeneca drug lowering platform It our by we partnerships to frames, shortening and expertise previously among like

incredibly continuous and internal platform At in see of on every with our day the the for proud team to promise achievements disruptive demonstrating to improvements a economics. Absci these we for come potential I'm innovation to excited further improvement. Absci, biotech of our focused and programs, at work mindset applied

encouraged underwritten We capital existing. common balance driven patients an create stock. continue position to vision. group support biologics through strengthen sheet by pursue months the offering ago, are diverse further We of for A faster. This new will mission of large to both reception and help positive better and we our our public were us few by and decided support investors, a from and to our

business, impossible partnered laser-focused the at do. the we everything excited We rest what the of our on and internal including ahead. about core the we ahead and with aspects As of very programs to look execution year, remain of I'm the innovation all across of lies pursuit

through Zach? to to our the With and update that, financials. on our programs, I'll over turn of Zach call walk give outlook provide an each our

Zachariah Jonasson

Thanks, Sean.

that pipeline million. additional As stock, a gross value points, common II Phase model asset introduced strategy of internal clinical I Sean we example, This through proceeds discussed, before approximately partnering to of closed internal year, out-licensing business raising the this capital public to wherein an our $XX.X we set support or hybrid quarter, potentially ability develop through further programs underwritten we past our This offering reflects trial for selling, last assets. our programs. of certain or advance will inflection intend Phase

A the create strategy manner. overall strategy these candidates a to ability from believe highly to rationale internally in allow generated of platform's for We differentiated programs. us primary and efficient drug capture our value will stands our more of antibody create our

said no strategy As past, every is we assets. one-size-fits-all have there these program the and is unique in for

strategy, right practice time. best we guiding the the look for a partner right will at and As

earlier, ABS-XXX of $X As months just at than a in generated mentioned less cost XX candidate Sean we the million.

X-plus additional By to screening reduce million. time $XX comparison, drug figures to takes reach will pharma a believe at drug to industry we us that our cycles, we it generate years generation a the to continues further such and cost candidate data and at estimates our over we seeing are platform improve via million even in $XX And candidates. time of as

internal Turning program back pipeline. current to our

best-in-class potential anti-TLXA Our lead program, ABS-XXX antibody. is a

demonstrated program. half-life. used this a model presented specific candidate easier, This superior design consistent showed early with combined high potency, experience towards objective potentially high ABS-XXX data preclinical profile, and could a TLXA less superior to developability with In product frequent dosing. We ultimately improve favorable leads drug de the product advanced January, with profile, of creating immunogenicity. This epitope X patient affinity, lower property extended from and anticipated from of leads target including AI high novo is a potency with data bioavailability our with we

in into candidate PK we primary IND-enabling studies advance selected a and Following studies. further February, to development backup confirmatory a

We the could from Phase XXXX, expected interim and few both recently share in studies to nonhuman the expect We plan of primate XXXX. ability demonstrating second which additional data, to data data in also to then I completed efficacy. bind studies potentially initiate with studies to half including We an clinical monomer ABS-XXX clinical next lead months. early readout candidate's in the differentiated TLXA preclinical trimer,

is in efficacy an pharmacological with second Next, significant not the for indication a care ABS-XXX, need, undisclosed undisclosed antibody program the unmet half is potentially of of where satisfactory. best-in-class for We designed selecting anticipate XXXX. the dermatological development for target this an candidate standard dermatology for a

inhibits immuno-oncology and This a to antibody is believed for antibody platform. our bind first-in-class potentially immune reverse is ABS-XXX, an human a to fully a undisclosed target an immunology target, cytokine stimulate response. immunosuppressive to through discovered antibody innate novel designed and Finally,

applicability being broad this of second this studies and anticipate action to a We in the for mode of of validation in half the indications XXXX. progress. for variety is program evaluated completion ABS-XXX of comprehensive profiling program oncology is of

of extraordinary patient our samples tertiary on TLS repertoires from As structures exhibited analysis based an novel a from Within who lymphoid antibody or platform reverse mine derived we from have the targets is discover this response. the samples. the reminder, patients immune platform, to designed antibody TLS immunology

the We look discovered its this to ABS-XXX antibody and year. corresponding details We later platform. forward sharing target using this novel human additional

we we to program to asset ABS-XXX, to internal stage continue close partners one to in We to to the development time expect our addition collaboration teams. and existing progress doing while more XXXX. detail additional programs, pleased on between partnered see to advance with a drug R&D our forward of sharing and make our ABS-XXX model, line lines. and cannot a about about much creation further disclose these the hybrid In Further, our our and am solid own execute partnerships. we ABS-XXX, details later with date. these work partners well to programs we at are our expected look progressing lead business is according least continue in And I at

forward partners, the anticipate in partnerships. these additional have share and one and to XXXX, a year. Additionally, more with updating of robust look course partners diverse partnerships pleased finding to potential we least drug the multi-program also or over we we continue creation you X that on pipeline at I'm to of including

in driven development personnel Turning as the the our partnered with first as quarter decrease to the first of expense. to $XX.X costs, to million compensation an $XX.X quarter expenses year Selling, stock we continue XXXX concurrently. in of prior internal $X.X $XXX,XXX and lower lower was compensation increase This general by to costs, expenses in and as administrative year million offset was This in expense. were were the primarily personnel due decrease Revenue was costs programs Research increase in progress the in period. reduction stock prior in first continued an our offset $X.X now in million administrative period. million and compared financials. a XXXX by quarter to of XXXX by compared

investments We to and of with XX, cash December balance cash, $XX.X short-term our as to quarter Turning compared sheet. equivalents XXXX. the in million million $XXX.X as ended

our and first approximately our short-term we continue we For a of investments made believe current it cash, sufficient of equivalents and studies the equivalents our execute we very investments turn our confident cash operations gross and I'll $XX of third-party completing with With of associated on use in costs progress of course the our by programs for beyond. the existing cash, over expect XXXX, to IND-enabling to and ABS-XXX Altogether, with plans, encouraged fund we CRO. cash half inclusive and will into million, internal Based short-term a our expected Sean. programs partnered on have to the the these back XXXX. to are that, on ability XXXX be

Sean McClain

XXXX was and and we our In differentiated continue for Absci pivotal evolution. further on successful to antibody Zach. XXXX, year execution demonstrate power assets. Thanks, will to the of platform our create a and focus company's

thrilled the of with better goal and look biotech. We way. medicines the the you faster are to each fundamentally creating We to for programs of our economics advance of updating along forward improving patients

I'll turn to that, it begin the With operator Operator? to Q&A. back

Operator

from first with Kripa question Truist Securities. Instructions] The [Operator Thank you. Devarakonda comes

Srikripa Devarakonda

We it? I of ABS-XXX. preclinical if about can we your drug the then of Do this about part have understanding do wondering that confidence recently exciting just the follow-up the you a class. you truly importance the question of have other versus that I drugs And in about targeting the understand have biology I edge was versus from saw is question. differentiated level program. in of data And sort talk a same what an trimer? monomer

Sean McClain

absolutely. Yes, TLXA, that differentiated we the trimer. Kripa. monomer over hand to about Christian I'll the to you, with properties and see the that particular, in versus talk Thank

Christian Stegmann

you, Yes, Sean. thank Absolutely.

importantly, our XD really do also very that half-life of epitope-specific monomer/trimer is topics. extended structures design off, question, important that convenience using we specifically highlight more it's address TLXA. for antibody to And absolutely strategy critical think on the parameter But AI-guided First patient structures. think our on is and an differentiated I will targeting that based XD

we chose no we binding that monomer versus So AI. using selectively designed discrimination epitope for and antibodies an on monomer shows trimer the

also And allowed knowledge, completely TLXA are certain because trials differentially our monomer a and to isoforms. avoid all known have states, epitopes candidate us that addresses, we multiple known subunits. So relevance that produce monomers expressed clinical development populations. it's it that patient both this targets span certain equally may in This to in

Srikripa Devarakonda

I a have question a question. bigger you, picture Sean, for

drug AI was AI I through just about but talking to know the about and models months time development data, you generative efficiency were just I great the and XX drug do You new with reduce using great, models. is that? lines? is think can generative development continue wondering you improve million improved already wondering and already $X

Sean McClain

Yes, absolutely.

drug drug the takes As training and the a cost models associated see candidate. these important these cycle a with on And accurate to times is and a get to we are more time as well decrease lines more candidate as to time cost our overall and see generating over internally, overall the we're metric you to long improve continue over both how it us more costs to going with the the to this for as decrease do decreasing. get us models, and continue and continuing time overall architectures AI we very data these

expect that in the So do future.

Operator

with Next from Farmer George Scotiabank. question comes

George Farmer

could to I later nonhuman on from heads-up was this wondering give if ongoing us what with see expect you ABS-XXX the we primate studies a can year?

Sean McClain

Christian, Absolutely. take do you Yes. that? to want

Christian Stegmann

Yes, absolutely.

humans. So profile derisking of primate to studies we show thus an the demonstrate our indeed antibody, are in nonhuman expected half-life able our pharmacokinetic extended pharmacokinetic to that are

to few months, the that the next to engineering the of in able has So our extend we'll demonstrate antibody worked. approach be antibody half-life

George Farmer

shed differentiation we from for, kind light that Anything of on markers, like competitors? should PD from Okay. can the be looking else those out the anything that, antibody studies of

Christian Stegmann

Yes.

well, the biomarker absolutely pharmacodynamic very obviously efficacy, demonstrating then an derisk And obviously. extended marker you will also on as as exactly, will good We effect mentioned, non-pharmacodynamic point. the measure

George Farmer

then bit maybe Great. on And cash. a

of some Your through guidance bit implies relative the I we think in a think is cash that partnerships about XXXX? how best funding probably kind to usage guess. coming probably from little more you Can on should elaborate

Zachariah Jonasson

we the with million George, for continue costs going cash -- complete and gross a was of associated reiterate to studies obviously guidance that completing IND-enabling for gross XXXX. our That's the usage includes I ABS-XXX. Yes, the say, of to $XX figure,

Our significant forecast assumptions assumptions around include takes it a us that any on cadence, regular a deal. partnership XXXX some doesn't partnering around modest but into include

So that. kind into it's our built rate assumptions run typical of

if look would And well in point our usages, comes growth. then cash typically I that out, you at too, net under

usage million bonuses paid is So look net for you cash of in the March. little that net the cash of for year second roughly example, if higher QX $XX.X at million, roughly of and which HX given $XX usage that this XXXX, was we in year a was for half last total

coming can cash you usage. is see our gross So usage the under net cash well

Operator

comes The TD question Cowen. from Jacqueline Kisa next with

Jacqueline Kisa

Kisa can CRO on you're CRO? Jacqueline or using discussions bipartisan ongoing for you the your biosecurity, IND Steven it give on for studies? Biologics is This color regarding With Is China-based any third-party us Ma. WuXi a

Sean McClain

a Yes, that's question. great

with strategies We And engaging come with that that are legislation that, using not the do and are been WuXi to any given mitigate do have occur will at tailwinds the the program, current risk with we out. we recent discussions CROs other relationship at have with WuXi ongoing new other that us may put may the backup with potential moment. believe that current but

Jacqueline Kisa

on and appreciate you to And internal the new your or area before targeted the you've both give internal your company us regarding it partnered fourth asset, serve one disease on? Is color. therapeutic to to the you're rightsized looking is I any Great. can and programs? area insight focus

Sean McClain

great a it's Yes, question.

be to able to so [INI] are on areas. focusing So currently we we well programs. as one will in of to then therapeutic more And those fall rightsized take as oncology, on are we additionally, continue

with are and model we that biology we're get more -- our the area resources. But as one to accurate, does to do is disease continues going translational side. more the and that able we continue itself, on to more the continue in not to to grow less As correlate model

So modest we're clinical growth as continue team, drug and again, but both biology, as translational these to that we creation side, being going to the on out the programs build side disease our are undertaken. see

Jacqueline Kisa

Are i tech you the white just pretty in do are inorganically? Or Technologies to that discovery Great. And fill your one in tech squeeze on more any in-house? drug fragmented. spaces could the in. stack I build AI then could expect you there

Sean McClain

is we differentiation that areas the specificity. as big the of One see epitope

And So epitope to interest that able biology. test epitopes an immunization, our knowledge, target of out being exists control be specificity. epitopes and to give approaches may able epitope you biology epitopes. standard from novel those novel a that allow no phage technology of interest only have this to epitope of there, With to best to or you an in is potential that display elucidate landscape you allows and hone this these new new the the like on you over

as pipeline, the we applied we'll so with And differentiation. our development see have but internal also well. partnerships a what's partnership programs really AstraZeneca, this This we drive well. continue Almirall, this drive And driven is to own to our major as and internal Merck as

Operator

with The next Steve Dechert comes question from KeyBanc.

Steven Dechert

more Could going this new are of on partners discussions how you partners relates potential getting as your to us it year? to goal give some color with X

Zachariah Jonasson

strong the looking academic the that as and table. pharma, typically, for really I'd cadence robust we hard come out I year, bring on and of last Yes, our if discussions biotech is where have these large biology. at both cadence as that prosecute but say, our on while partnerships we signing And institutions. BD look to always a small ground a say year, little deep fertile means it's would is leading and partners and that, an of you And throughout bit have Sean. mid to robust synergy That's knowledge well even them covers lumpy discussions pipeline target for can I that see really partnering. and the really a the we're strategy, comment as

track well like on that So metrics hitting I say, would we're mentioned. we you feel to the

Steven Dechert

as relates And that capabilities platform? you're any it Okay. in to then your there investing are new

Sean McClain

Yes.

process. invest a us that to one immunology One of that actually the could the only the on on see as really of novo de side, we unlock AI that bottleneck in is AI for areas not we're continuing the And de-orphaning the but side. reverse areas

targeting out So from laborious the take to what targets well. hospital very panel this antibodies target. and us want to, and once do what And de much of model is actually novel discover the patient faster step. we binding have a do we and partnerships de-orphan we a rapidly previous. patient, And we are antibodies allow been I've novo new to than a in is time-consuming these direction This to to [indiscernible] and screen antibody find as reverse would go since could we scale data antibody,

this area is on of us front. development so focus And kind the AI for of key another

Operator

next Li [Operator from Instructions] The Chen with H.C. question comes Wainwright.

Unknown Analyst

Can This well? you is hear Chen. me Li

Sean McClain

Yes.

Unknown Analyst

X have One previous questions. I far differentiation. is on as to discussion the expand as

partner the you antibody the inbound interest? that by the primarily is mean was previous driven -- partnership you XXX release data, of the of I said since have nature epitope-specific the seen What design. shift So partnership any the in

on So anything is that capability interested design? have -- with around focus your XXX. antibody question another primarily any I And partner other

Sean McClain

been I that robust to to can ABS-XXX say Zach, discussions. that speak that can the but and I'll having we've on the discussions hand that, But Zach are you. on very over Yes, interest they

Zachariah Jonasson

Yes.

We have to a interest around inbound continue asset that nice had of and lot discussions. have

has really into earlier, But to Our potential been Phase forward indicating and move strategy, And part discussions clinical see to I in interest is of intriguing I the elucidated potential partners that as to second from certainly that happy area. your asset think I'll partners. this epitope now we're the mention, just question, specificity Sean studies.

and design existing our of our a to I potential interesting to partners the have that asset, well been highlighting of think, as and capabilities partners number designing ability So unique quite in platform as features.

can pH-dependent properties in a setting. that clinical assets, shown binding differentiating case ability to multivalency, studies, in our be design some of in other we've in So unique an

area that's an for us. new I So exciting think

Unknown Analyst

color undisclosed of second question what's the on And some give on XXX. from and the us Can is you factors area? landscape of pipeline XXX differentiation drugs? that My SOC competitive disease the current in current Great. your confidence

Sean McClain

absolutely. do want that you Christian, one? Yes, take to

Christian Stegmann

My is Yes. off. audio cutting

question around So ABS-XXX? is your

Unknown Analyst

on differentiation factors? competitive the around Yes, XXX and landscape

Christian Stegmann

Yes.

but So will is care disclosed where unsatisfactory. indication yet, precise medical that also to we improve ABS-XXX And for patient share have this an high technology the I not as ABS-XXX. antibody the extended we we to of of indication convenience did is standard for unmet plan basically needs employ half-life current well, just like

So in convenience also essence, not patient an we standpoint profile best-in-class from from but a only will deliver a efficacy point from -- standpoint.

Sean McClain

Yes. will would very we second derm this also clinic. the And And underappreciated is target. as I mention case, to in this target well be a

So almost to say, a TLXA. it's similar crowded underappreciated I'd very space, very very not target, a

Operator

I this show today's for participating. at no call. This conclude Thank questions further will you conference time.

You may now disconnect.

Absci (ABSI) 14 May 242024 Q1 Earnings call transcript