Analyst Praises AMD-Partner Absci's Practical Approach, Sees 118% Stock Upside

Needham analyst has initiated coverage on Absci Corporation ABSI, a drug and target discovery company that harnesses deep learning AI and synthetic biology to expand proteins’ therapeutic potential.

The rapid growth of artificial intelligence/machine learning (AI/ML) has led to the emergence of numerous companies that are difficult to tell apart. This challenge is worsened by the fact that clinical proof of concept (POC) in this area is still years away.

Recently, Absci entered into a strategic collaboration with Advanced Micro Devices Inc AMD to enhance its AI drug discovery capabilities.

Needham analyst Gil Blum writes that Absci sets itself apart with its practical focus on drug development.

Absci leverages its proprietary synthetic biology technology (SoluPro) to internally generate large experimental datasets that can be further refined using AI/ML.

The company has demonstrated an ability to rapidly develop indication-agnostic leads while focusing on highly optimized agents to reduce downstream clinical failure.

Needham writes that Absci’s core technologies, SoluPro and ACE, are essential for a successful tech-bio company. These high-throughput platforms generate large-scale, well-documented binding affinity data for biologics.

By combining this robust data with AI/ML, Absci can quickly identify and improve lead candidates through an iterative process. This capability was showcased by the rapid development of the company’s TL1A candidate, ABS-101.

Needham has initiated with a Buy rating and a price forecast of $9. Blum writes that Absci builds its value through proprietary assets it develops in-house, such as ABS-101, 201, 301, and 501.

The company focuses on creating first-in-class or best-in-class therapies, progressing them from discovery to early clinical trials. Instead of handling commercialization, Absci plans to partner with other companies after proving the concept in clinical trials.

Additionally, Absci works with pharmaceutical partners like Merck & Co Inc MRK, Almirall SA, and AstraZeneca Plc AZN on early-stage projects. These collaborations provide milestone payments and royalties, offering steady income with less financial risk.

This approach allows Absci to quickly advance and monetize clinical-stage assets, aligning well with its AI/ML-driven platform.

Price Action: ABSI stock is up 23% at $3.96 at the last check on Wednesday.

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