RHHVF - Absci: 'AI' Tag Keeping Company Afloat While Searching For Right Formula

2024-05-16 18:36:07 ET

Summary

• Absci Corporation, an AI-driven drug discovery company, has seen its share price plummet after its IPO in July 2021.
• Nearly all AI-driven drug discovery companies have struggled with overall share price performance since IPO.
• Absci's stock has been picking up - +250% across the past six months - thanks to investment in the sector, and a recently agreed partnership with AstraZeneca.
• Merck is another Big Pharma partner, but these deals don't guarantee revenues and with development programs preclinical, it's difficult to assign much value.
• Without its "AI" tag, Absci would likely be a $100m - $200m market cap valuation company. The company may show its mettle in time, but the prospect of near term revenues, or further upside, seems remote in 2024.

Investment Overview - Absci - Another AI-Driven Drug Developer With a Compromised Share Price

Absci Corporation ( ABSI ) is a Vancouver-based drug discovery company that IPOed in July 2021, raising ~$230m via the issuance of 12.5m shares at a price of $16. After initially surging to a price of >$30, the stock price embarked on a long bear run, reaching lows of ~$1.2 per share in October last year. Across the past six months, however, it has increased by >250%. Will this momentum be sustained?...

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