Shares of the Absci Corporation (ABSI) stock were surging in the premarket trading session today on January 7, 2022. ABSI stock price saw a push of 56.68% to reach $9.62 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 12.78% at closing. Let’s take a closer look at this stock to understand the reason behind this rise.
What’s Happening?
ABSI stock happened to be green today after the company announced the research collaboration with Merck today. The company reported that it will deploy its Bionic Protein™ non-standard amino acid technology. The motive behind this is to produce enzymes tailored to Merck’s biomanufacturing applications. Absci in return will receive an upfront along with some other milestones payments.
Merck will nominate the three targets and sign the drug discovery collaboration agreement. ABSI will be able to receive an upfront fee along with milestone payments of up to $610 million for all three targets. The company is equipped with the latest AI technology and looking forward to applying its AI-driven platform for the creation of new biologic candidates.
Claims against ABSI stock
In November many law firms started the investigations against the Absci and certain of its officers. The investigations concerned the claims related to securities fraud and unlawful business practices.
Financial View of ABSI stock
- In the third quarter of 2021, the company generated $1.5 million in revenue. The revenue increased by $0.6 million as compared to the same period of the previous year.
- The company spent $10.7 million in research and development expenses in the third quarter of 2021. These expenses were $2.7 million in the same tenure as the previous year. The platform expansion is mainly attributable to this rise.
- The selling, general and administrative expenses of the company were $9.7 million in the recently reported quarter. These expenses were $1.3 million in the same tenure as the previous year.
- Net loss of the ABSI stock was $23.6 million in the third quarter of 2021 as compared to $3.7 million in the same tenure of the previous year.
- The company ended the third quarter of 2021 with $279.3 million in cash and cash equivalents.
Wrapping Up
ABSI stock is hot among investors in the stock market after the recent news of a collaboration with Merck. Financial results reflect that the company’s revenue and eps missed the consensus estimate. In a nutshell, deep research is necessary for investors having long-term prospects.
