Absci Corporation: Struggling To Live Up To Its AI Promise

(10min)

Summary

  • Absci Corporation's stock has rebounded due to new collaborations, but skepticism about AI's impact on drug discovery keeps it heavily underwater from its IPO price.
  • Absci uses AI and wet lab technologies to speed up drug discovery, aiming to reduce preclinical periods to under two years.
  • Despite partnerships with Merck, AstraZeneca, and others, Absci's revenue remains minimal, and it has no advanced pipeline assets yet.
  • With a market cap just over $300 million and cash runway into 1H27, Absci is a speculative play in the AI drug discovery space.
  • An analysis around Absci Corporation follows in the paragraphs below.
  • Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More »

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Shares of AI-assisted drug creation concern Absci Corporation (NASDAQ:ABSI) have rebounded nicely in the past year as four more signed collaborations have boosted confidence in its approach. That rally has faded recently. Despite the rise of its 52-week lows, the

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This article was written by

Bret Jensen profile picture
50.47K Followers

Bret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.

Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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