Absci is preparing to send its first internally developed drug to clinical trials. The Vancouver-based biotechnology company released its annual financial results Tuesday, reporting earnings of $4.5 million in revenue in 2024, compared with $5.7 million in 2023. “This year we become a clinical-stage AI drug discovery company,” CEO Sean McClain said. “That’s a huge milestone.” Absci, which went public in 2021, uses its database and artificial intelligence platform to discover biologic drugs. The work can potentially bring drugs to the market faster than the traditional process. The company reported losing $103.1 million in 2024, or 94 cents per share, compared with $110.6 million in 2023, or $1.20 per share.

Despite the loss, McClain said the company had a great year in 2024. The company expects its first internally developed drug, ABS-101, created to treat inflammatory bowel disease, to enter Phase 1 clinical studies this year. McClain said the company is also moving forward with its ABS-201 drug, intended to treat common baldness in men and women. He’s hopeful that will enter the clinical phase in 2026. “We’re generating this really nice pipeline of assets that are hitting the clinic with clinical readouts that will be occurring this year and next year,” McClain said. Zach Jonasson, Absci’s chief financial officer and chief business officer, said in an investor call Tuesday the company is focusing on balancing its internal drug pipeline with fewer large pharmaceutical partnerships.

McClain said the company does expect to announce one large pharmaceutical partnership this year. The company is operating on a hybrid business model — introduced in 2023 — to develop internal programs up to Phase 2 clinical trials before selling, partnering or licensing them. McClain said Tuesday the company is already discussing possibly out-licensing its ABS-101 drug candidate. The company also announced a collaboration with chipmaker AMD to power its advanced de novo AI antibody design models, as well as AI biotechnology company Owkin to co-develop therapeutic candidates and biotechnology company Invetx to leverage Absci’s leading generative AI models for animal health applications. “We think the intersection of AI and biology is going to have a huge impact on society,” McClain said. “We’re excited to see that come through.” Absci trades on the Nasdaq as ABSI. Its stock closed Tuesday at $3.08 per share, down from Monday’s $3.21 closing price.