Absci Corp
For the period ended Mar 31, 2025. Filed May 13, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 13, 2025
ABSI$10.17+8.3%Stored close · as of Nov 6, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001628280-24-046862
Item 1A. Risk FactorsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001628280-25-025077
Item 1A. Risk FactorsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (464)
Current report
Investing in our common stock involves a high degree of risk. You should carefully consider the risks described below, as well as the other information in this Quarterly Report and in our other public filings in evaluating our business. The occurrence of any of the events or developments described below could materially harm our business, financial condition, results of operations and prospects. In such an event, the market price of our common stock could decline, and you may lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations and the market price of our common stock.
Current report
Risks Related to Our Financial Condition and Need for Additional Capital
Current report
Our current business has a limited operating history, which may make it difficult to evaluate our business and predict our future performance.
Current report
Our current business has a limited operating history. We began commercial operations in 2018. Before engaging in commercial operations, we focused primarily on technology development. Our revenue to date has been generated primarily from drug creation activities through partnerships, and we do not anticipate generating any revenue from commercial product sales, if ever, until we successfully complete the clinical development of, and achieve regulatory approval for, any of our internally developed programs, all of which are still in preclinical development. We are still early in the adoption phase of our drug creation model, and, as of April 30, 2025, no partner has entered into a license for clinical or commercial use of any intellectual property rights related to a product candidate or cell lines. We also have only recently begun to develop programs for our own product candidates and may experience difficulties advancing these programs through to clinical development and generating value from them. We may never achieve commercial success and we have limited historical financial data upon which we may base our projected financial performance. We also have limited historical financial data upon which we may base our planned operating expenses or upon which you may evaluate our business and prospects. Based on our limited experience, we may not be able to effectively:
Current report
•develop and advance our product candidates from our internally developed programs through preclinical and clinical development and potential marketing approval and commercialization;
Current report
•drive adoption of our Integrated Drug Creation platform by validating them through the advancement of our internally developed programs and by attracting and retaining partners;
Current report
•enter into, maintain and potentially expand the scope of partnerships with third parties that contain economic terms sufficient to make our business model viable;
Current report
•raise sufficient capital or achieve sufficient near term revenue to sustain our business to enable us to recognize value from our internally developed programs and receive the downstream economics of our existing or future partnerships;
Current report
•anticipate and adapt to changes in the existing and emerging markets in which we operate;
Current report
•focus our efforts related to our Integrated Drug Creation platform in areas that generate returns on these efforts;
Current report
•succeed in achieving goals related to our Integrated Drug Creation platform;
Current report
•maintain and develop strategic relationships with suppliers to acquire necessary materials and equipment for the development of our Integrated Drug Creation platform and product candidates on appropriate timelines, or at all;
Current report
•create a pipeline of internally developed programs that generate future partnership opportunities;
Current report
•scale our drug creation activities to meet potential demand at a reasonable cost;
Current report
•acquire, in-license or otherwise obtain technologies that enable us to expand our capabilities;
Current report
•avoid infringement of third-party intellectual property rights;
Current report
•obtain licenses to third-party intellectual property rights on commercially reasonable terms, as needed for our current and planned operations;
Current report
•obtain and maintain valid and enforceable patents and other intellectual property rights that give us a competitive advantage;
Current report
•protect our proprietary technologies, including our Drug Creation platform and internally developed programs and corresponding product candidates; and
Current report
•attract, retain and motivate qualified personnel.
Current report
In addition, a substantial portion of our expenses have been and will continue to be fixed, and we expect our expenses to increase as we advance our internally developed programs into and through clinical development. Accordingly, if we do not generate revenue as and when anticipated, our losses may be greater than expected and our operating results will suffer.
Current report
We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain profitability.
Current report
We have incurred significant losses since our inception. For the three months ended March 31, 2025 and 2024, we incurred net losses of $26.3 million and $22.0 million, respectively. As of March 31, 2025, we had an accumulated deficit of $535.9 million. We expect that our operating expenses will continue to increase as we grow our business and advance our internally developed programs. Since our inception, we have financed our operations primarily from private placements of our equity securities, convertible promissory notes, the sale of common stock in our initial public offering (IPO), subsequent follow-on offering, the incurrence of other indebtedness and other financing activities, and to a lesser extent, revenue derived from our drug creation activities leveraging our Integrated Drug Creation platform. We have devoted substantially all of our resources to the development of our Integrated Drug Creation platform and commercialization of resulting drug creation capabilities, and the research and development of our internally developed programs. We will need to generate significant additional revenue to achieve and sustain profitability, and even if we achieve profitability, we cannot be sure that we will remain profitable for any substantial period of time. We may never be able to generate sufficient revenue to achieve or sustain profitability and our recent and historical financial and operating results should not be considered indicative of our future performance.
Current report
We will need to raise additional capital to fund our operations and improve our Integrated Drug Creation platform. If we are unable to raise additional capital on terms acceptable to us or at all, we may not be able to compete successfully, which would harm our business, operations, and financial condition.
Current report
As of March 31, 2025, we had $134.0 million in cash, cash equivalents and short term investments. We expect our current cash, cash equivalents and short term investments and anticipated cash flows from operations will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months. If our available resources and anticipated cash flow from operations are insufficient to satisfy our liquidity requirements, including because of higher expenses than we anticipate related to internally developed programs or our investments in our Integrated Drug Creation platform or any other technology, lower demand from existing and potential partners for our Integrated Drug Creation platform, or the realization of other risks described in this "Risk Factors” section, we will be required to raise additional capital through issuances of equity or convertible debt securities, entrance into a credit facility or another form of third party funding, or seek other sources of financing. Such additional financing may not be available on terms acceptable to us or at all.
Current report
In any event, we may consider raising additional capital in the future to expand our business, to pursue strategic investments, to take advantage of financing opportunities or for other reasons. For example, this may include reasons such as to:
Current report
•advance our existing internally developed programs through preclinical and clinical development;
Current report
•advance new or additional internally developed programs through preclinical and clinical development;
Current report
•further advance our AI capabilities, including AI capabilities related to our Integrated Drug Creation platform;
Current report
•further expand the capabilities of our Integrated Drug Creation platform into additional areas of biopharmaceutical research and development, such as target discovery or translational medicine;
Current report
•increase our business development efforts to drive market recognition of our Integrated Drug Creation platform, our internally developed programs and address competitive developments;
Current report
•fund business development efforts for our current or future internally developed programs and partnered programs;
Current report
•acquire, license or invest in additional technologies or complementary businesses or assets;
Current report
•the cost of expanding our operations, including our ongoing and planned preclinical and clinical development activities for our internally developed programs;
Current report
•preclinical and clinical development, including costs associated with building our internal clinical and regulatory capabilities and contracting with third-party clinical investigators, contract research organizations (CROs), manufacturers and suppliers, or clinical data management organizations;
Current report
•our ability to achieve and sustain sufficient revenues from partnerships and other business development activities;
Current report
•our rate of progress in working with partners to leverage our Integrated Drug Creation platform and business development activities associated therewith;
Current report
•our rate of progress in, and cost of, developing new technologies;
Current report
•costs related to any domestic and international expansion.
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Previous report — wording carried elsewhere
There have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 21, 2024.