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Absci Forges Strategic Alliance for Accelerated Drug Discovery Absci Corporation (NASDAQ: ABSI) has announced a strategic alliance with Oracle Cloud Infrastructure and AMD to significantly advance its artificial intelligence-driven drug discovery capabilities. This collaboration aims to leverage state-of-the-art supercomputing and cloud infrastructure to accelerate biologics design, reduce associated costs, and secure a competitive advantage within the rapidly evolving biotech landscape. Detail of the Partnership and Technological Integration The core of the partnership involves Absci integrating Oracle's robust AI infrastructure with AMD's cutting-edge hardware. Specifically, the collaboration seeks to optimize the performance of AMD Instinct accelerators and ROCm software to support Absci's AI drug creation, including its de novo antibody design models. This technological synergy is intended to revolutionize Absci's ability to develop innovative therapeutics by combining its generative AI platform with its wet lab capabilities for designing and validating therapeutic candidates. AMD also reinforced its commitment with a $20 million investment in Absci, complemented by a stock issuance that reflected a premium of approximately $2.5 million over market price on the issuance date. Market Reaction and Valuation Scrutiny Absci's stock, trading under the ticker ABSI, has experienced considerable volatility, declining by approximately 34% over the past year. However, recent collaborations, including this alliance, have spurred a notable upswing, hinting at a shifting market sentiment and renewed investor interest. The company currently trades at a Price-to-Book (P/B) ratio of 2.2x, aligning with the average for the U.S. Biotechs industry but positioned below its immediate peer group. This valuation context is critical given Absci's current unprofitability, a common characteristic among biotech firms heavily investing in research and development. Analyst sentiment leans cautiously positive, with several brokerage firms assigning an "Outperform" rating, based on an average brokerage recommendation of 1.9 on a scale where 1 is a Strong Buy. A consensus of seven leading analysts projects an average one-year price target of $8.13, with estimates ranging from a low of $5.89 to a high of $10.00. This suggests an impressive potential upside of 241.48% from a recent trading price of $2.38. Furthermore, GuruFocus estimates a theoretical GF Value for Absci at $12.09, implying an astonishing 407.98% upside. Broader Context and Financial Landscape The strategic alignment occurs within a booming "Grand Wave of AI + Pharmaceuticals," a market projected to grow from approximately $10.4 billion in 2022 to $189.9 billion by 2030, at a compound annual growth rate (CAGR) of 43.7%. Absci's hybrid AI-biology approach positions it to capitalize on this growth, mitigating some of the "black box" risks often associated with pure AI models. Despite its innovative approach, Absci reported a net loss of $30.6 million for the second quarter of 2025, an increase from $24.8 million in the same period of 2024. Revenue for Q2 2025 stood at $0.6 million, a decrease from $1.3 million in Q2 2024. Research and development (R&D) expenses rose to $20.5 million in Q2 2025 from $15.3 million in Q2 2024, reflecting increased investment in internal programs. To bolster its financial position, Absci successfully raised approximately $64 million in gross proceeds in July 2025 through a public offering and an at-the-market facility. This capital infusion is projected to extend the company's cash runway into the first half of 2028, ensuring funding for continued operations and pipeline advancement. In addition to the Oracle and AMD partnership, Absci has expanded its AI Drug Discovery collaboration with Almirall to include a second dermatological target, potentially unlocking up to $650 million in milestone payments and royalties. Expert Commentary While the partnership is a strong positive signal, Absci's current unprofitability and lack of clinical data from its current programs introduce a degree of uncertainty. An analyst from Seeking Alpha rated ABSI a "Hold," noting that despite trading above cash, the absence of clinical data and the presence of next-generation competitors temper enthusiasm. The analyst highlights potential risks such as disappointing results from phase 1 work with ABS-101 (expected H2 2025), delays in other assets like ABS-201 (slated for clinic in early 2026), or strong performance by competitors in the anti-TL1A space. Looking Ahead The Oracle and AMD collaboration marks a pivotal step for Absci in strengthening its technological infrastructure for AI-driven drug discovery. Short-term, this could generate positive investor sentiment and increase interest in ABSI. Long-term, successful integration and execution could significantly enhance Absci's capabilities, reduce operational costs, and solidify its competitive position. However, the company's path to sustained growth and profitability will largely depend on the successful advancement of its therapeutic pipeline, particularly ABS-101 and ABS-201, and its ability to consistently generate revenue from collaborations. Investors will closely monitor upcoming clinical data releases, further partnership developments, and the company's progress toward consistent revenue generation and profitability in the highly competitive biotech sector.
Absci Accelerates AI Drug Discovery Through Oracle, AMD Alliance Absci Corporation (NASDAQ: ABSI) recently announced a strategic alliance with Oracle Cloud Infrastructure and AMD, aiming to accelerate its artificial intelligence (AI)-driven drug discovery efforts. This collaboration positions Absci to enhance the design of biologics and reduce associated costs, leveraging advanced computing power and AI infrastructure. The Event in Detail The alliance involves the deployment of AMD Instinct™ accelerators and ROCm™ software to power Absci's complex biological modeling, specifically for de novo antibody design models. Notably, AMD has committed a $20 million equity investment in Absci, structured as a private investment in public equity (PIPE). This investment underscores the growing demand for innovative AI applications in drug discovery and provides Absci with access to advanced chip technology and cloud resources crucial for scaling model training and data processing. Absci's strategy revolves around integrating AI with high-throughput robotics, a method it highlighted at the Morgan Stanley 23rd Annual Global Healthcare Conference 2025. This approach aims to translate AI-generated insights into clinical-stage assets, differentiating it in an industry known for lengthy development timelines. Analysis of Market Reaction Despite the positive implications of this strategic partnership, Absci's (ABSI) stock has experienced a significant decline, dropping 34% over the past year. The company is currently trading near the lower end of its 52-week range of $2.23 to $5.82, with a market capitalization of approximately $355.86 million. Its financial metrics reveal ongoing challenges, including a 53.30% decline in revenue growth and a negative EPS of -$0.95. The company reported a substantial revenue miss in Q2 2025, with earnings per share at -$0.24 against an expected -$0.21, and revenue at $600,000 compared to an anticipated $1.39 million. This reflects Absci's heavy investment in research and development, which rose to $20.5 million in Q2 2025 from $15.3 million year-over-year. Despite these headwinds, the stock saw a 4.39% rise to $2.92 in after-hours trading following the Q2 earnings report, potentially indicating investor optimism regarding future prospects and strategic developments like the AMD and Oracle collaborations. The company's Price-to-Book (P/B) ratio of 2.2x is in line with the US Biotechs industry average, suggesting investors recognize its growth potential without assigning a significant premium given current unprofitability. Broader Context & Implications Absci's alliance with Oracle Cloud and AMD builds upon its existing strategic moves to strengthen its position in the AI-driven biotech landscape. Earlier, the company expanded its partnership with Almirall, a dermatology-focused pharmaceutical firm, initiating a second program targeting chronic skin diseases. This collaboration could yield up to $650 million in milestone payments, providing a crucial revenue stream. Furthermore, a $64 million equity financing round in July and August 2025 has extended Absci's operational runway through mid-2028, addressing financial flexibility concerns. These initiatives are set against the backdrop of a rapidly growing AI-driven drug discovery market, projected to expand significantly in the coming years. The global shift toward AI in pharma, valued at $1.73 billion in 2024 and forecast to reach $13.46 billion by 2032, creates a fertile environment for companies like Absci that can deliver scalable, AI-powered solutions. Expert Commentary Despite the company's current unprofitability and financial turbulence, analyst sentiment remains largely positive. Seven analysts currently rate Absci with a 'Buy' recommendation, with no 'Hold' or 'Sell' ratings. The average target price is $8.13, suggesting a potential 241.48% upside from current trading levels. This optimism is also reflected in institutional activity, with major investors like FMR LLC and ARK Investment Management increasing their holdings. > 'Absci Corporation stands at an intriguing crossroads. Its innovative AI-driven approach to drug development, coupled with strategic partnerships, offers a compelling narrative for growth,' noted one analysis. Looking Ahead Looking ahead, the success of Absci's strategic alliance with Oracle Cloud and AMD will hinge on its ability to translate enhanced AI capabilities into tangible clinical pipeline milestones and successful drug candidates. Key programs such as ABS-101 for inflammatory bowel disease and ABS-201 for hair loss disorders, both AI-designed and advancing in clinical trials, will be critical to watch. While the recent capital raise has improved liquidity and technological resources, underlying execution risks and persistent net losses remain significant. The company's hybrid AI-biology approach aims to mitigate 'black box' risks inherent in some AI models, which could be a differentiating factor in gaining pharmaceutical industry adoption. Investors will monitor future earnings reports for signs of improved revenue generation and a clearer path to profitability, as well as further developments in its clinical pipeline and partnership expansions.
Mr. Sean Mcclain is the Chief Executive Officer of Absci Corp, joining the firm since 2011.
The current price of ABSI is $2.61, it has increased 0.19% in the last trading day.
Absci Corp belongs to Biotechnology industry and the sector is Health Care
Absci Corp's current market cap is $390.2M
According to wall street analysts, 9 analysts have made analyst ratings for Absci Corp, including 3 strong buy, 10 buy, 1 hold, 0 sell, and 3 strong sell
Looks like you're a few days late to the party, fren. Absci (ABSI) isn't making a huge move today; it's consolidating after a significant pop last week. The real catalyst was the September 11th announcement of a major partnership with Oracle and AMD to beef up its AI-driven drug discovery platform.
The stock is currently digesting the recent good news. Here’s the breakdown of what happened and what to look for next.
The Fundamental Catalyst: AI on Steroids The primary driver for the recent price action was the announcement on September 11, 2025, that Absci is collaborating with Oracle Cloud Infrastructure (OCI) and AMD. This partnership is designed to accelerate Absci's generative AI platform for drug creation, giving it access to high-performance computing to speed up design cycles and reduce costs. This news sent the stock climbing last week as it validates Absci's tech and strategic direction in the booming AI-pharma space.
Market Sentiment: The Suits Are Bullish Wall Street analysts are largely positive on ABSI. The consensus recommendation is a "BUY," with 13 out of 14 analysts rating it as either a "Buy" or "Strong Buy". The mean analyst price target sits at $8.29, representing a significant potential upside from its current price of around $2.57. This strong institutional backing suggests confidence in the company's long-term prospects, especially following the new partnerships.
Technical Picture: Consolidation Mode After the pump, the chart is showing signs of consolidation, not a new breakout.
So, instead of FOMO-ing into a stock that's taking a breather, watch those key levels. Set an alert on Edgen Radar for a break above $2.71 if you want to catch the next potential leg up. Don't be the guy who buys the top of the consolidation.