VANCOUVER, Wash. - Absci Corporation (NASDAQ: ABSI), a generative AI drug creation company with a market capitalization of $353 million, announced a strategic collaboration with Advanced Micro Devices, Inc. (NASDAQ:AMD) involving a $20 million equity investment aimed at enhancing AI-powered drug discovery. This partnership will utilize AMD Instinct accelerators and ROCm software to power Absci's AI models for developing new antibody therapeutics. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 5.63, indicating robust short-term financial health.
The investment, structured as a private investment in public equity (PIPE), reflects the increasing demand for AI applications in the biopharma sector. The timing appears favorable, as InvestingPro data shows ABSI's stock has gained over 17% in the past week, though investors should note the stock's historically high volatility. Absci's mission to expedite the creation of biologics for patients is expected to benefit from AMD's high-performance computing solutions.
According to Absci's Founder & CEO, Sean McClain, the collaboration with AMD will push the envelope in drug discovery by leveraging efficient and innovative AI solutions. AMD's technology is set to support Absci's development of advanced antibody therapeutics.
The partnership will be discussed in detail by McClain at the 43rd Annual J.P. Morgan Healthcare Conference on a Wednesday, and the capabilities of AMD's Instinct accelerators will be showcased in the context of Absci's IgDesign1 model, an in vitro validated inverse folding model for antibody design.
AMD's Executive Vice President and Chief Technology Officer, Mark Papermaster, expressed pride in partnering with Absci, highlighting that their AI drug discovery work aligns with AMD's high-performance computing and software designed for demanding AI workloads.
Absci's Integrated Drug Creation™ platform aims to accelerate the time to clinic and increase the probability of success in drug development by optimizing multiple drug characteristics. The company's infrastructure allows for screening billions of cells weekly, with the potential to move from AI-designed candidates to wet lab-validated candidates in as little as six weeks.
The information in this article is based on a press release statement. While the company currently operates at a negative EBITDA of -$89.71 million, InvestingPro analysis reveals 10 additional investment insights and key metrics that could be crucial for investors considering this AI-focused biotech company. Subscribers can access detailed financial health scores and growth projections to make more informed investment decisions.
In other recent news, Absci Corp has been making significant progress in its research and development efforts, as well as in its financial stability. H.C. Wainwright has maintained a Buy rating on Absci shares, following the company's recent R&D Day where it showcased advancements in its clinical candidate portfolio. The firm highlighted Absci's progress, particularly within the pipeline, over recent months.
Absci's ABS-101 and ABS-201 treatments have exhibited potential in preclinical data for inflammatory bowel diseases and androgenic alopecia respectively. The company has also expanded its pipeline to include two novel immuno-oncology candidates. H.C. Wainwright's confidence in Absci is rooted in the company's unique AI-based antibody design, strategic plan for securing clinical data, and the strong support from key opinion leaders and clinical investigators.
Jones Trading also initiated coverage on Absci with a Buy rating, emphasizing the company's unique AI-driven platform and its success in securing multiple pharmaceutical deals. Absci's technology, which is specialized in designing antibodies, is a key differentiator in the market. The company's integrated approach, combining high throughput wet lab screening with its AI platform, has allowed it to efficiently develop a range of antibodies, further strengthening its position.
Absci has also made strides in its collaboration with AstraZeneca (NASDAQ:AZN), delivering AI-designed antibody sequences targeting oncology. This development is a crucial step in their joint venture to expedite the discovery of new cancer treatments. Analysts from Guggenheim, TD Cowen, and Morgan Stanley (NYSE:MS) have also shown confidence in Absci's growth trajectory and its ability to harness AI for significant advancements in biologics.
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