Absci launches $50 million public offering to fund AI drug programs

VANCOUVER, Wash. - Absci Corporation (NASDAQ:ABSI), currently trading at $3.51 per share, announced Thursday it has commenced an underwritten public offering of $50 million of common stock shares to support its AI-driven drug development initiatives. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The clinical-stage biopharmaceutical company plans to grant underwriters a 30-day option to purchase up to an additional $7.5 million of shares. Morgan Stanley, J.P. Morgan, Jefferies, and TD Securities are serving as joint book-running managers for the offering.

According to the press release statement, Absci intends to use the proceeds to advance its internally developed programs, continue investment in its Integrated Drug Creation platform, and for working capital and general corporate purposes. InvestingPro data shows the company is quickly burning through cash, though it maintains more cash than debt on its balance sheet.

The offering is being made through an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission. The company noted that the proposed offering remains subject to market conditions, with no guarantee regarding completion timing or final terms.

Absci describes itself as a data-first generative AI drug creation company that combines artificial intelligence with wet lab technologies to develop biologics. The company maintains its headquarters in Vancouver, Washington, with additional facilities in New York City and Zug, Switzerland. The stock has shown strong momentum with a 12.5% return over the past week. Discover more insights about ABSI and 1,400+ other stocks with InvestingPro’s comprehensive research reports.

The shares will be offered pursuant to a prospectus supplement and accompanying prospectus that will form part of the registration statement filed with the SEC in August 2022.

In other recent news, Absci Corporation announced a $50 million public offering of common stock, with shares priced at $3.00 each. The offering is expected to generate approximately $50 million in gross proceeds, excluding underwriting discounts, commissions, and offering expenses. Absci has also provided underwriters with a 30-day option to purchase an additional 2,500,500 shares on the same terms. Additionally, the company appointed Mary Szela to its board of directors. Szela, who has extensive experience in commercial and clinical leadership, will serve as a Class III director until the 2027 annual meeting. As part of her compensation, Szela will receive stock options and an annual cash retainer of $40,000. These developments reflect Absci’s ongoing strategic initiatives in the biopharmaceutical sector.

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