GlobeNewswire Inc | Nov 9, 2021 07:00AM EST

November 09, 2021

VANCOUVER, Wash., Nov. 09, 2021 (GLOBE NEWSWIRE) -- Absci Corporation (Nasdaq: ABSI), the drug and target discovery company harnessing deep learning AI and synthetic biology to expand the therapeutic potential of proteins, today reported financial and operating results for the quarter ended September 30, 2021.

At Absci, our team of Unlimiters is building technology to enable better, faster, smarter biologic drug and target discovery and cell line development, said Sean McClain, founder and CEO. 2021 continues to be a transformative year for our organization, with the business experiencing tremendous momentum, highlighted by strategic acquisitions and partnerships, important additions to the team in key roles, and our debut as a public company all on top of the scientific innovation we do each and every day. We continue to have success in integrating our recent acquisitions, and we are already generating exciting opportunities from our expanded platform, including signing our first major multi-program discovery deal last month.

Third Quarter 2021 and Recent Highlights

-- Hired additional experienced employees, including vital areas of data science, artificial intelligence, intellectual property, and research and development. Absci's team now includes nearly 220 Unlimiters. -- Continued integrating our acquisitions, further developing AI-enabled discovery capabilities and beginning to capitalize on drug discovery opportunities enabled through Absci's expanded platform. -- Announced a partnership with EQRx to discover and develop next-generation protein-based drugs. The partnership will leverage Abscis Drug Creation technology for discovery and development activities, along with EQRxs clinical development expertise and commercial capabilities, to advance next-generation, protein-based therapeutics at more affordable costs for patients. EQRx and Absci will collaborate to jointly engineer and develop several clinical candidates across multiple therapeutic areas, including oncology and immunology.

Third Quarter 2021 Financial Results

Revenue was $1.5 million for the three months ended September30, 2021 compared to $0.9 million for the three months ended September30, 2020.

Research and development expenses were $10.7 million for the third quarter of 2021, as compared to $2.7 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 $9.7 million for the third quarter of 2021, as compared to $1.3 million for the corresponding prior year period. This increase was primarily due to personnel-related costs and other expenses related to being a publicly traded company.

Net loss was $23.6 million for the third quarter of 2021, as compared to $3.7 million for the corresponding prior year period, which includes a non-cash charge of $3.6 million related to the revaluation of convertible notes and preferred stock warrants.

Cash and cash equivalents were $279.3 million as of September30, 2021. On July26, 2021, Absci completed its initial public offering, raising approximately $210 million of net proceeds, after deducting underwriting discounts and commissions and offering expenses.

Webcast Information

Absci will host a conference call to discuss the third quarter 2021 financial results before market open on Tuesday, November 9, 2021 at 5:30 a.m. Pacific Time / 8:30 a.m. Eastern Time. A webcast of the conference call can be accessed at http://investors.absci.com. The webcast will be archived and available for replay for at least 90 days after the event.

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 and follow us on social media: Twitter: @Abscibio, LinkedIn: @absci.

Availability of Other Information about Absci

Investors and others should note that we routinely communicate with investors and the public using our website (www.absci.com) and the Investors section of our website (investors.absci.com), including without limitation, through the posting of investor presentations, SEC filings, press releases, public conference calls and webcasts on these websites. The information that we post on these websites could be deemed to be material information. As a result, investors, the media, and others interested in Absci are encouraged to review this information on a regular basis. The contents of our website, or any other website that may be accessed from our website, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

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 technology development efforts, integrating acquisitions and partnerships, expanding our platform, scientific innovation efforts, drug discovery and development activities, potential costs of therapeutics, and clinical candidate development, 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 ability to effectively collaborate on drug discovery and development activities with our partners; along with those risks set forth in our most recent periodic report filed with the U.S. Securities and Exchange Commission, 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 Ended For the Nine Months Ended September 30, September 30,(In thousands, exceptfor share and per 2021 2020 2021 2020share data)Revenues Technology development $ 1,390 $ 922 $ 2,922 $ 1,964 revenueCollaboration 149 (6 ) 408 88 revenueTotal revenues 1,539 916 3,330 2,052 Operating expenses Research and 10,730 2,692 28,820 6,851 developmentSelling, general and 9,733 1,257 19,597 3,089 administrativeDepreciation and 2,218 331 3,895 780 amortizationTotal operating 22,681 4,280 52,312 10,720 expensesOperating loss (21,142 ) (3,364 ) (48,982 ) (8,668 ) Other income (expense) Interest (768 ) (172 ) (3,232 ) (459 ) expenseOther income (3,427 ) (212 ) (31,377 ) (287 ) (expense), netTotal other expense, (4,195 ) (384 ) (34,609 ) (746 ) netLoss before income (25,337 ) (3,748 ) (83,591 ) (9,414 ) taxesIncome tax 1,703 ? 7,797 ? benefitNet loss (23,634 ) (3,748 ) (75,794 ) (9,414 ) Adjustment ofredeemable preferred ? (9,215 ) ? (34,336 ) units andstockCumulative undeclaredpreferred stock (242 ) ? (2,284 ) ? dividendsNet loss applicable tocommon stockholders $ (23,876 ) $ (12,963 ) $ (78,078 ) $ (43,750 ) andunitholders Net loss per shareattributable to commonstockholders and $ (0.33 ) $ (0.85 ) $ (2.16 ) $ (2.88 ) unitholders:Basic and diluted Weighted-averagecommon shares and 73,291,288 15,215,747 36,177,105 15,215,747 units outstanding:Basic and diluted

Absci CorporationCondensed Consolidated Balance Sheets (unaudited)

September 30, December 31,(In thousands, except for share and per share 2021 2020data)ASSETS Current assets: Cash and cash equivalents $ 279,262 $ 69,867 Restricted cash 10,512 ? Receivables under development 714 1,594 arrangementsPrepaid expenses and other current 10,177 1,773 assetsTotal current assets 300,665 73,234 Operating lease right-of-use assets 7,378 4,476 Property and equipment, net 44,090 8,909 Intangibles, net 55,835 ? Goodwill 23,013 ? Restricted cash, long-term 16,843 1,841 Other long-term assets 1,295 109 TOTAL ASSETS $ 449,119 $ 88,569 LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND OTHER STOCKHOLDERS' DEFICITCurrent liabilities: Accounts payable $ 6,372 $ 2,116 Accrued expenses 15,275 1,569 Loans payable ? 632 Long-term debt, current 2,400 903 Operating lease obligations, current 1,461 770 Financing lease obligations, current 2,772 1,475 Deferred revenue, current 1,968 2,630 Total current liabilities 30,248 10,095 Convertible promissory notes ? ? Long-term debt - net of current portion 1,712 4,141 Operating lease obligations - net of current 9,362 3,813 portionFinance lease obligations - net of current 4,008 2,766 portionDeferred tax, net 3,525 ? Deferred revenue 122 ? Other long-term liabilities 12,129 749 TOTAL LIABILITIES 61,106 21,564 Commitments Redeemable convertible preferred stock, $0.0001 ? 156,433 par valueOTHER STOCKHOLDERS' DEFICIT Preferred stock, $0.0001 par value ? ? Common stock, $0.0001 par value 9 2 Additional paid-in capital 553,878 635 Accumulated deficit (165,859 ) (90,065 ) Accumulated other comprehensive loss (15 ) ? TOTAL OTHER STOCKHOLDERS' DEFICIT 388,013 (89,428 ) TOTAL LIABILITIES, REDEEMABLE CONVERTIBLEPREFERRED STOCK AND OTHER STOCKHOLDERS' $ 449,119 $ 88,569 DEFICIT