Needham & Company has maintained its bullish stance on Absci Corporation (NASDAQ:ABSI), reaffirming a 'buy' rating with a $9.00 price target that suggests significant upside potential from the stock's recent trading range of $2.45-$3.20.
The vote of confidence comes at a pivotal moment for the Vancouver, Washington-based company, which recently announced a major milestone: the dosing of first participants in a Phase 1 clinical trial for ABS-101, marking Absci's transition to a clinical-stage biotech company. ABS-101, an anti-TL1A antibody engineered using Absci's generative AI platform, represents the first AI-designed biologic for inflammatory bowel disease (IBD) to enter human trials.
Absci's approach combines artificial intelligence with scalable wet lab technologies to create biologics more efficiently than traditional methods. The company's Integrated Drug Creation platform can reportedly go from AI-designed antibodies to wet lab-validated candidates in as little as six weeks, dramatically accelerating the typically lengthy drug discovery process.
Preclinical data for ABS-101 demonstrates high potency against both monomeric and trimeric TL1A, with potential for quarterly subcutaneous dosing—a significant improvement in both efficacy and convenience over first-generation treatments. Interim data from the Phase 1 trial is expected in the second half of 2025.
Despite the promising technology, Absci's financial results remain modest. The company reported Q1 2025 revenue of $1.2 million, missing analyst estimates, with research and development expenses increasing to $16.4 million from $12.2 million in the prior year period. However, Absci maintains a strong cash position of $134 million, which management believes will fund operations into the first half of 2027.
Needham's optimistic outlook aligns with broader analyst sentiment, as multiple research firms including HC Wainwright and Guggenheim also maintain 'buy' ratings on the stock. The average analyst price target stands at approximately $8.50, reflecting confidence in Absci's AI-driven approach to revolutionizing biologics discovery and development.