ACBSI $ABSI Stock Explodes 50% In Pre-market On Merck Deal

  • Post category:Biotechnology
  • Reading time:6 mins read
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ABSI stock rose more than 50% in pre-market trading on January 7, 2022, after the company announced a collaboration agreement with giant Merck.

Absci Announces Research Collaboration with Merck

On January 7, 2022, Absci Corporation (Nasdaq: ABSI), the drug and target discovery company harnessing deep learning AI and synthetic biology to expand the therapeutic potential of proteins, announced that it has entered into a research collaboration with Merck (known as MSD outside the United States and Canada), using Absci’s AI-powered Integrated Drug Creation™ Platform.

Under the collaboration, Absci will deploy its Bionic Protein™ non-standard amino acid technology to produce enzymes tailored to Merck’s biomanufacturing applications and receive an upfront and certain other milestone payments. In addition, Merck has the option to nominate up to three targets and enter into a drug discovery collaboration agreement, and Absci would then be eligible to receive up to $610 million in upfront fees and milestone payments for all three targets, as well as research funding and tiered royalties on sales.

Sean McClain, founder and CEO of Absci, commented, “We are very pleased to establish this collaboration with Merck and to be working with its world class research organization to generate novel enzymes. We look forward to applying our AI-driven platform to create new biologic candidates with the potential to meaningfully improve the lives of patients.”

“At Merck we are continually evaluating new ways to build, expand and refine our biologics capabilities,” said Dr. Fiona Marshall, senior vice president and head of discovery, preclinical and translation medicine, Merck Research Laboratories. “Absci’s platform offers a compelling opportunity to design new biologic candidates and explore the expression of complex proteins.”

Absci is the drug and target discovery company harnessing deep learning AI 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 Bionic Proteins™ containing nonstandard amino acids, and other novel drug designs that may be impossible to make with other technologies.

Absci to Participate in the 40th Annual J.P. Morgan Healthcare Conference

Absci Corporation (Nasdaq: ABSI), the drug and target discovery company harnessing deep learning AI and synthetic biology to expand the therapeutic potential of proteins, announced the company will be participating virtually in the upcoming 40th Annual J.P. Morgan Healthcare Conference.

Absci’s management is scheduled to present on Monday, January 10th at 12:45 p.m. Pacific Time / 3:45 p.m. Eastern Time. This presentation time has been updated from a previous announcement and reflects the current schedule. Interested parties may access a live and archived webcast of the presentation on the “Investors” section of the company website via https://www.absci.com.

Absci downgraded to Underperform from Neutral at BofA

On November 10, 2021, BofA analyst Michael Ryskin downgraded Absci to Underperform from Neutral with a $10 price target. The company’s Q3 results and business update were “disappointing”, with the management having acknowledged the “air pocket” on its plans to start new programs over the middle of 2021, the analyst tells investors in a research note. Ryskin adds that while it’s possible that the pace of program starts or revenue contribution will accelerate in 2022, based on the call, near-term estimates will likely “need to be revised lower for now”.

📺 Absci Leverages AI to Become the GOOGLE of Drug Discovery! Interview with CEO Sean McClain

100 - Absci Leverages AI to Become the GOOGLE of Drug Discovery! Interview with CEO Sean McClain

📈 ABSI Stock Technical Analysis

Absi Chart

Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. ABSI is one of the lesser performing stocks in the Life Sciences Tools & Services industry. All of the 63 stocks in the same industry do better. ABSI is currently making a new 52 week low. This is a very bad signal considering that the S&P500 Index is trading in the upper part of its 52-week range, so ABSI is lagging the market. Prices have been falling strongly lately, it is better to avoid new long positions here.

There is resistance at 10.64 from a trend line in the daily time frame.

The technical rating of ABSI is bad and it also does not present a quality setup at the moment. Prices have been extended to the downside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when ABSI stock consolidates and is a good long entry.

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