GlobeNewswire Inc | Sep 7, 2021 08:30AM EDT

September 07, 2021

VANCOUVER, Wash., Sept. 07, 2021 (GLOBE NEWSWIRE) -- Absci Corporation (Nasdaq: ABSI), the drug and target discovery company harnessing deep learning and synthetic biology to expand the therapeutic potential of proteins, today reported financial and operating results for the quarter ended June 30, 2021.

This has been a momentous year for Absci, said Sean McClain, founder and CEO. We kicked off 2021 with our acquisition of Denovium, which formalized our identity as an AI-powered synthetic biology company focused on biopharmaceutical protein design and production technology. Weve also grown the business substantially since January, more than doubling our team of 'unlimiters', signing partnership agreements, advancing programs with current partners, enhancing our technology platform, building and moving into a new campus, and acquiring Totient.

Along the way, weve shared our progress and vision with investors, and with their support we completed two financing rounds since January, including our IPO in July. I could not be more proud of what we have accomplished, or more excited about what lies ahead as we pursue our vision of changing the world, one protein at a time.

Second Quarter 2021 and Recent Highlights

-- Completed initial public offering raising net proceeds of approximately $210 million. -- Announced acquisition of Totient, expanding the Integrated Drug Creation Platform to include antibody and target discovery technology. -- Hired over 100 new employees since year-end 2020, and strengthened executive leadership team with additions of Nikhil Goel as Chief Business Officer and Sarah Korman, PhD, JD, as General Counsel. -- Built out and relocated to new state-of-the-art 77,000 square foot campus in Vancouver, Washington. -- Entered into a global technology development and license agreement with PhaseBio [Nasdaq: PHAS] to advance a successful ongoing Active Program for creation of a customized cell line to enable high-yield commercial production of a PhaseBio clinical candidate. The agreement entitles Absci to contingent milestone payments and royalties on sales upon PhaseBio's exercise of its option for an exclusive license to the producing cell line developed by Absci. -- Signed a global technology development and license agreement with Alpha Cancer Technologies Inc. The agreement extends the existing technology development partnership and entitles Absci to contingent milestone payments and royalties on net sales of products comprising recombinant human alpha-fetoprotein manufactured using the producing cell line developed by Absci.

Second Quarter 2021 Financial Results

Revenue was $0.7 million for the three months ended June30, 2021 compared to $0.6 million for the three months ended June30, 2020

Research and development expenses were $11.0 million for the second quarter of 2021, as compared to $2.3 million for the corresponding prior year period. This increase was primarily driven by additional investments in platform expansion, including data initiatives and AI capabilities.

Selling, general, and administrative expenses were $5.2 million for the second quarter of 2021, as compared to $0.9 million for the corresponding prior period. This increase was due to personnel-related costs and professional services, including approximately $0.9 million of transaction related expenses related to the Totient acquisition.

Net loss was $41.2 million for the second quarter of 2021, as compared to $3.0 million for the corresponding prior year period, which includes a non-cash charge of $28.1 million related to the revaluation of convertible notes and preferred stock warrants.

Cash and cash equivalents were $99.5 million as of June 30, 2021. Subsequent to the end of the quarter, on July 26, 2021, Absci completed its initial public offering, raising approximately $210 million of net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses.

About Absci

Absci is the drug and target discovery company harnessing deep learning and synthetic biology to expand the therapeutic potential of proteins. We built our Integrated Drug Creation Platform to identify novel drug targets, discover optimal biotherapeutic candidates, and generate the cell lines to manufacture them in a single efficient process. Biotech and pharma innovators partner with us to create the next generation of protein-based drugs, including those that may be impossible to make with other technologies. Our goal is to enable the development of better medicines by Translating Ideas into Drugs. For more information visit www.absci.com.

Forward-Looking Statements

Certain statements in this press release that are not historical facts are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements containing the words will, "pursues," anticipates, plans, believes, forecast, estimates, expects, and intends, or similar expressions. We intend these forward-looking statements, including statements regarding operating plans, development and partnership efforts, and our ability to receive milestone payments and royalties, to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and we make this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. We can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved, and, furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks and uncertainties relating to our partners' ability to develop and commercialize product candidates generated using our platform and our ability to secure milestone payments and royalties; along with those risks set forth in our Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission on September7, 2021, as well as discussions of potential risks, uncertainties, and other important factors in our subsequent filings with the U.S. Securities and Exchange Commission. Except as required by law, we assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Contact:

investors@absci.com

Media Contact:

press@absci.com

Absci CorporationCondensed Consolidated Statements of Operations (unaudited)

For the Three Months For the Six Months Ended Ended June 30, June 30,(In thousands, exceptfor share and per 2021 2020 2021 2020 share data)Revenues Technology development $ 592 $ 517 $ 1,532 $ 1,042 revenueCollaboration 136 47 259 94 revenueTotal revenues 728 564 1,791 1,136 Operating expenses Research and 11,040 2,252 18,090 4,159 developmentSelling, general and 5,179 861 9,864 1,832 administrativeDepreciation and 1,201 265 1,677 449 amortizationTotal operating 17,420 3,378 29,631 6,440 expensesOperating loss (16,692 ) (2,814 ) (27,840 ) (5,304 )Other income (expense) Interest (2,009 ) (189 ) (2,464 ) (287 )expenseOther income (28,114 ) (5 ) (27,950 ) (75 )(expense), netTotal other expense, (30,123 ) (194 ) (30,414 ) (362 )netLoss before income (46,815 ) (3,008 ) (58,254 ) (5,666 )taxesIncome tax 5,617 ? 6,094 ? benefitNet loss (41,198 ) (3,008 ) (52,160 ) (5,666 )Adjustment ofredeemable preferred ? (13,967 ) ? (25,121 )units andstockCumulative undeclaredpreferred stock (1,047 ) ? (2,042 ) ? dividendsNet loss applicable tocommon stockholders $ (42,245 ) $ (16,975 ) $ (54,202 ) $ (30,787 )andunitholders Net loss per shareattributable to commonstockholders and $ (2.39 ) $ (1.12 ) $ (3.13 ) $ (2.02 )unitholders:Basic and diluted Weighted-averagecommon shares and 17,641,147 15,215,747 17,312,437 15,215,747 units outstanding:Basic and diluted

Absci CorporationCondensed Consolidated Balance Sheets (unaudited)

June 30, December 31,(In thousands, except for share and per share data) 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 99,450 $ 69,867 Restricted cash 10,501 ? Receivables under development arrangements 545 1,594 Prepaid expenses and other current assets 1,895 1,773 Total current assets 112,391 73,234 Operating lease right-of-use assets 7,638 4,476 Property and equipment, net 37,802 8,909 Intangibles, net 56,677 ? Goodwill 22,893 ? Restricted cash 16,846 1,841 Other assets 2,823 109 TOTAL ASSETS $ 257,070 $ 88,569 LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND OTHER STOCKHOLDERS' DEFICITCurrent liabilities: Accounts payable $ 9,004 $ 2,116 Accrued expenses 14,000 1,569 Loans payable ? 632 Long-term debt, current 1,577 903 Operating lease obligations, current 1,419 770 Financing lease obligations, current 1,984 1,475 Deferred revenue, current 1,775 2,630 Total current liabilities 29,759 10,095 Convertible promissory notes 150,107 ? Long-term debt - net of current portion 3,352 4,141 Operating lease obligations - net of current 8,978 3,813 portionFinance lease obligations - net of current 3,203 2,766 portionDeferred tax, net 5,228 ? Deferred revenue 839 ? Other long-term liabilities 18,489 749 TOTAL LIABILITIES 219,955 21,564 Commitments (See Note 7) Redeemable convertible preferred stock, $0.0001 par 161,377 156,433 valueOTHER STOCKHOLDERS' DEFICIT Common stock, $0.0001 par value 2 2 Additional paid-in capital 17,972 635 Accumulated deficit (142,225 ) (90,065 )Accumulated other comprehensive income (loss) (11 ) ?

TOTAL OTHER STOCKHOLDERS' DEFICIT (124,262 ) (89,428 )TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED $ 257,070 $ 88,569 STOCK AND OTHER STOCKHOLDERS' DEFICIT