Absci (NASDAQ:ABSI) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, thank you for standing by. My name is Duncan, and I will be your conference operator for today. I would like to welcome you to Absci first quarter twenty twenty six business update. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question and answer session. Now I'd like to turn over the conference over to Alex Kang. Please go ahead. Thank you. Earlier today, Absci released financial and operating results for the quarter ended 03/31/2026. If you haven't received this news release or if you'd like to be added to the company's distribution list, please send an email to investorsabsci dot com. An archived webcast of this call will be available for replay on Absci's Investor Relations website at investors.absci.com for at least ninety days after this call.

0:51 Joining me today are Sean McLean, Absci's Founder and CEO Zach Sonison, Chief Financial Officer and Chief Business Officer and Ronci Somerotny, Chief Medical Officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward looking within the meaning of the federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward looking statements. These include statements regarding the development and clinical progress of our pipeline programs, including ABS201, the design, enrollment, product, and timelines of our ongoing Phase onetwo ahead line trial of ABS21 for enterogenic alopecia, anticipated timing of interim proof of concept data readout for ABS21 in the second half of twenty twenty six, the potential advancement of ABS201 into Phase three development, anticipated initiation of a Phase two clinical trial of ABS21 for endometriosis in the fourth quarter of twenty twenty six, and a potential proof of concept readout in the second half of twenty twenty seven, anticipated characteristics and product profile of ABS21 as a drug product, our target product profile and its attributes, the potential for an expedited development pathway, including the possibility of advancing directly from Phase onetwo and to Phase three, our plan engagement with the FDA regarding development strategy and the potential market opportunity and commercial prospects for ABS-two zero one.

2:03 Certain statements may also include projections regarding potential market opportunity. These estimates are based on various assumptions, including potential regulatory approval, the final approved label, and the evolving competitive landscape, any of which could cause our actual addressable market to differ materially from these projections. In addition, certain research findings discussed today reflect participant responses to a hypothetical product profile and do not represent clinical results for ABSI-two zero one. Additional information regarding the risks and uncertainties that could affect our forward looking statements is set forth in the press release, ABSI issued today, our most recent annual report on Form 10 ks and subsequent documents and reports filed by Absci from time to time with the SEC. Except as required by law, Absci disclaims any intent or obligation to update or revise any financial or product pipeline projections or other forward looking statements, either because of new information, future events or otherwise.

2:49 This conference call contains time sensitive information and is accurate only as of the live broadcast, 05/07/2026. With that, I'll turn the call over to Sean. Thanks, Alex. Good afternoon, everyone. Thanks for joining us. Today, I'll cover three things. Where we are on ADS two zero one, a new addition to our prolactin pipeline, and the strategy driving both. 2026 is going to be a data rich year for Absci with multiple readouts in front of us. Ronzi will go through the headline file and discuss early PK modeling that supports our targeted dosing frequency. At a high level, the Phase one2a is on track. We expect to share preliminary safety, tolerability and PK data next month, interim thirteen week hair regrowth data in the second half of this year, and full twenty six week proof of concept data early next

3:45 year. ABF-two zero one is not intended to compete with minoxidil. We are aiming to create a new category of hair regrowth therapy, a targeted biologic against the prolactin receptor that provides durable hair regrowth from a few injections. If successful, ABF-two zero one could represent the first new mechanism of action in androgenic alopecia in nearly three decades and a fundamentally different treatment paradigm for patients. In parallel, we continue to advance towards initiation of a phase two endometriosis trial in the fourth quarter. We recently launched our endometriosis clinical advisory board with leaders from Yale, UCSF, Duke and Mayo Clinic.

4:38 They bring deep expertise across reproductive medicine, fertility, and translational research and will help guide the ABS two zero one endometriosis program. Endometriosis has the same kind of opportunity as large, underserved, and underexplored. And ABS two zero one has the potential to open up a new category of therapy there as well. As Zach will discuss, our top strategic priority is using our platform to create novel differentiated assets. ABS two zero one in AGA and endometriosis is the clearest expression of that. We go after hard problems, novel biology, and large patient populations where the unmet need is real.

5:30 Our platform is built for this, and our philosophy has always been simple. Follow the science and follow the data. And one of the places this has taken us is prolactin biology. Prolactin biology is underexplored, underappreciated, and often misunderstood. Even inside the medical community, the name prolactin can read as narrow, and some still think of it as a lactation hormone. It is much more than that. The more mechanistic insight we've generated on prolactin, the prolactin receptor, and the related pathways, the more opportunity we see for this target, well beyond AGA and endometriosis.

6:18 We have started sharing some of these insights with the medical community as a part of a broader education effort. Today, we're announcing another anti prolactin receptor antibody, ABS-two zero two, for an undisclosed INI indication. ABS-two zero one in AGA, ABS-two zero one in endometriosis, and now ABS-two zero two and INI are just the start of our prolactin pipeline. The reason we can do this comes back to our people and our platform, Origin One. We figured out early that having a good platform is not good enough on its own. We need the people who know how to push it, and in this industry, you also need the assets, novel and differentiated programs that can make a real difference in patients' lives.

7:13 The places where unmet need is largest tend to be where biology is most complex and underexplored, and that is exactly where our platform and our people excel. That overlap is also where the potential return on investment is highest, both for patients as well as our shareholders.

7:34 Our focus remains being an AI native company dedicated to developing and delivering novel differentiated therapeutic assets for patients. And as we roll out our AgenSci AI workflows across Absci, each of our Unlimiters is scaling themselves across research, SG and A, and other functions. We are unlocking real efficiencies and new capabilities. That is the focus, and that is what we're committed to delivering. With that, I'll turn it over to Ranzi who will walk through the ABS two zero one clinical program. Ranzi? Thanks, Sean, and good afternoon, everyone.

8:20 As Sean mentioned, we are pleased to share that our ongoing phase one2a headline trial for ABS201 is progressing well and tracking according to plan. As a reminder, this trial is a randomized double blind placebo controlled study. The primary endpoints are safety and tolerability while secondary endpoints include PK, PD, immunogenicity, target area hair count, target area hair width, and target area darkening or pigmentation. We will also collect patient reported outcome data from this study. In the headline trial we have now finished dosing all four planned healthy volunteer single ascending dose cohorts and initiated dosing in the first multiple ascending dose cohort.

9:12 To date, emerging safety and tolerability data remain favorable. Additionally, preliminary PK modeling from this clinical trial supports AVS-two zero one's targeted dosing interval of two or three injections over a six month period. Next month we anticipate sharing blinded preliminary safety, tolerability, and PK data from the SAD cohorts. In that update we plan to share clinical data that support the safety profile and anticipated ABS201 dosing interval. In the second half of this year we plan to disclose interim proof of concept data followed by full proof of concept data in early twenty twenty seven.

10:01 The interim POC readout will include thirteen week hair growth data. The thirteen week interim is by design a directional view. The twenty six week time point is the trial's full POC readout. Given the regenerative nature of the mechanism and our targeted dosing interval, the biology may continue to drive hair growth beyond that point, which is consistent with the long acting profile we are working towards. Zach will speak to how this positions ABS201 well for commercial success. We also continue to explore plans to execute our targeted efficient clinical development strategy, which could enable expedited clinical development with the potential of advancing directly to registrational trials following this phase one2a study.

10:54 With that, I'll pass it over to Zach to discuss our business strategy and to provide an update on our financials. Zach? Thanks, Rancy. We remain focused on creating and developing therapeutic programs that offer the highest potential return on investment. Our strategic priority is the execution of the ABS201 Headline Trial which supports our future registrational study plan for AGA and our Phase II clinical trial plan for endometriosis. As Nancy mentioned, we plan to share an interim POC readout including thirteen week hair regrowth data in the second half of this year. Based on the mechanism and our preclinical data, we anticipate the thirteen week interim readout will give a directional view of hair growth with the twenty six week full POC providing the trial's primary efficacy readout.

11:48 Given the regenerative nature of the mechanism, we anticipate hair growth to continue beyond the twenty six week time point. Conversations with the scientific and medical community, as well as patients continue to affirm our view of the significant return on investment potential for ABS201 in AGA and endometriosis. We estimate that the capital required to advance ABS201 through registrational AGA trials will be a fraction of the clinical costs required for other large indications such as oncology and IBD. Moreover, we expect to be able to leverage the SAD and MAD portions of the current headline trial to support Phase II initiation in endometriosis, thereby saving time and cost.

12:40 Considering the significant potential market opportunities of AGA and endometriosis in conjunction with our efficient development strategy, we believe that ABS two zero one offers a unique and compelling ROI.

12:56 Our market research supports a significant commercial opportunity for ABS two zero one. In our surveys of AGA consumers and dermatologists, we evaluated a target product profile consisting of two and a half years of hair growth following three injections of ABS two zero one, with a hair growth effect of approximately 35 hairs per centimeter squared versus baseline, similar to high dose oral minoxidil. Results from our market research support a potential total available market exceeding $25,000,000,000 annually in The U. S. With meaningful potential upside if hair growth exceeds the survey threshold. ABS two zero one has the potential to significantly expand the overall AGA market as a new premium category of durable regenerative hair growth therapy.

13:49 Our market research indicates the ABS201 target product profile would attract not only AGA consumers dissatisfied with current standards of care, but also those who elect to use ABS two zero one alongside existing standard of care such as oral minoxidil or new formulations of oral minoxidil. Similarly, in endometriosis AVS-two zero one has the potential to define a new category of therapy that has the potential to address not only pain, but also underlying disease. Endometriosis is prevalent in up to ten percent of women worldwide, including an estimated nine million women in The U. S. We believe ABS201's differentiated profile could support potential peak sales in excess of $4,000,000,000 As Sean mentioned earlier, our second priority is building and prioritizing an early pipeline of differentiated programs that offer the highest potential return on investment.

14:52 Accordingly, today we are pleased to announce the deepening of our pipeline with the addition of a new anti prolactin receptor antibody, AVS-two zero two. This program, which leverages our prolactin biology expertise and our AI platform, enables us to expand into new indications where we believe prolactin receptor inhibition will offer a novel and efficacious treatment option. Conversely, we have determined that oncology no longer fits within our strategic scope. And so we will be deprioritizing development of ABS301 and ABS501. We will no longer commit internal capital or resources to further development of these programs. Our capital and resources will be directed towards programs that offer the greatest potential ROI within our strategy.

15:45 In addition to the two previously discussed strategic priorities, we continue to advance partnering discussions associated with our other internal programs which are at various stages of preclinical and clinical development. Overall, our strategy remains focused on executing the development of ABS201 in AGA and in endometriosis and on further building a pipeline of differentiated programs that provide optionality for internal development or partnering.

16:17 Turning now to our financials. Revenue in the first quarter was $200,000 as we continue to progress our partnered programs. Research and development expenses were $19,300,000 for the three months ending 03/31/2026 as compared to $16,400,000 for the prior year period. This increase was primarily driven by advancement of Absci's internal programs including direct costs associated with external preclinical and clinical development of ABS two zero one. Selling, general and administrative expenses were $9,100,000 for the three months ending 03/31/2026 as compared to 9,500,000 for the prior year period.

17:05 This decrease was primarily due to a reduction in personnel related costs. Cash, cash equivalents, and marketable securities as of 03/31/2026 were $125,700,000 as compared to $144,300,000 as of 12/31/2025. Based on our current projections, we believe our cash, cash equivalents and marketable securities will be sufficient to fund our operating plans into the first half of twenty twenty eight. Our current balance sheet supports our execution of key upcoming catalysts including potential proof of concept readouts for both AGA and endometriosis and continued progress of our early stage pipeline.

17:53 We also remain focused on opportunities to generate additional non dilutive cash inflows that could come from early stage asset transactions and or new platform collaborations with large pharma.

18:05 In particular, we believe our early pipeline programs may offer attractive partnering opportunities. At the same time, we are aggressively implementing agentic AI workflows across our organization, including in business and scientific functions. These implementations are already creating meaningful efficiency gains, as well as capability gains. Going forward, we expect to continue to realize cost savings and productivity gains from advancement of our agentic workflows.

18:39 With that, I'll now turn it back to Sean. Thanks, Zach. Before we open up for questions, I want to thank the team at Absci, our limiters, for the work they put in each and every day. The catalysts ahead this year are, one, preliminary safety and PK data for ABS two zero one next month two, interim thirteen week proof of concept hair regrowth data in the second half of this year.

19:06 Three, initiation of phase two endometriosis trial in Q4, subject to data and regulatory review. And last, continued progress on our early stage pipeline, including our newest prolactin program, ABS two zero two. Looking into early twenty twenty seven, we expect full twenty six week proof of concept data for ABS two zero one and AGA. Thank you all for your continued support. Operator, let's open the line for questions. We are now opening the question and answer session. Thank you.

19:59 Your first question comes from the line of Brendan Smith from TD Cowen. Your line is now open. Please go ahead. Brandon, are you there?

20:50 Brandon, you may be muted just to Oh, double hey, guys. Hi, guys. Apologies. Can you hear me now? Yes. Yes. Sorry about that. Yes.

21:01 Thanks for taking the questions guys. Congrats on everything going on here. I guess maybe just kind of a quick follow-up on the two zero two conversation. Can you maybe just help us understand a little bit more even on a mechanistic level here, what kind of the most important distinctions versus two zero one are in terms of why it would make sense for some indications versus others and I guess versus the first two you're pursuing there? Is there kind of a difference of product profile or something about actual mechanism that makes sense for that distinction? Thanks. Yeah, absolutely. ABS two zero two, we are creating a differentiated profile with this. And additionally, we do want to be able to have this

21:48 outside of age and endometriosis for other indications where there may be pricing differences. And with regards to the prolactin biology, of the things that we're really interested in is how prolactin is driving some of these autoimmune diseases. It looks to be sitting on this stress inflammatory

22:15 axis and is also driving some interesting B cell biology as well. And you just see it expressed at least in prolactin receptor all throughout the body. I mean, it's in bones, immune system, endothelial cells, the synovium. And so we're continuing to expand out the biology there, as well as going into other indications with ABS two zero two. And then additionally, looking at bispecifics as well that could be synergistic with this particular mechanism.

22:56 Got it. Okay. That's super helpful. And then maybe just quickly on the upcoming MAD efficacy readout with two zero one. Appreciate the color on some of the how you're thinking about some of this data. I guess just given how the space has evolved in recent months there, are you kind of ultimately thinking comparable efficacy but with clean safety and maybe differentiated dosing is kind of enough to win given how big the market is? Or are you expecting kind of based on how things have evolved now that you would potentially need to show superior efficacy? Just help us understand some of those dynamics.

23:28 Yeah, absolutely. And Zach can touch on this more from the consumer quant study we did. But we believe having a comparable efficacy to oral minoxidil with the infrequent dosing will be really a home run product. And that convenience factor with equivalent efficacy, we do see that being a home run product and any efficacy above that, we see that as just increasing the overall TAM of the opportunity here. And Zach, maybe you wanna speak a little bit more to the consumer quant study that we did.

24:08 Yeah, I'd be happy to comment. So Brendan, as you know, we've conducted a sizable consumer survey. We've also conducted surveys with dermatologists. And I think the takeaway from those surveys is that the profile of ADS-two zero one would really establish a brand new category of therapy. And that's based on its durable,

24:31 the durability of the profile, infrequent dosing and a truly regenerative mechanism. So when we test a profile with consumers, dermatologists that has efficacy that's consistent with at least some reports of high dose oral minoxidil, so think about that sort of 35 hairs per square centimeter growth in target area hair count. We see the massive potential for adoption. And that's how we get to a potential $25,000,000,000 TAM just on a TPP that looks like that because it's a compilation of all of those factors that really define this as a new category.

25:08 So I think we're quite excited about that. And we think ultimately this product would expand the overall AGA market. And we saw that in our consumer research as well. It looks to us like there are a lot of patients out there who are dissatisfied with current standard of care, who would come to ABS201 as a therapeutic option. There are also lots of patients that would just come first line, so before they try

25:32 anything else. We saw over a third of males and females we surveyed said they would come first line, and that's before trying even like a nutraceutical or something very inexpensive. And then we also saw in the data that there are lots of patients that would elect to use both. So they may use an oral minoxidil in combination with ABS two zero one. So I think as a brand new category of therapy and a premium category, I think ABS two zero one has the potential to be really well positioned. Awesome. Super helpful guys. Thank you. Your next questions come from the line of Guild Bloom from Needham and Company.

26:18 Your line is now open. Please go ahead.

26:22 Good afternoon and thanks for taking our questions. A little bit of a similar question as it relates to the ABS201 and ABS202. Is the difference there pharmacokinetics binding. Is there anything you can tell us about the upgrades and ABS two zero two? And I have a follow-up on the ABS two zero one program after this. Thanks.

26:53 Yeah, at this point in time, we are not disclosing the profile that we're looking to achieve for this other than the fact that we are planning to take this into a different indication.

27:10 Okay, fair enough. As it relates to the thirteen week readout, know, Verodermex in their own call noted quote unquote appreciable improvement at two months. It's a very qualitative measure as it relates to early data, an early time point. Is this what we should be expecting at thirteen weeks or should we be expecting something more methodical? Thank you.

27:39 Yeah, the thirteen weeks is really a directional readout. We want to see pair growth and the twenty six week is where we expect to see the oral minoxidil hairs per square centimeter. And so that's what we're utilizing as the final readout. And the thirteen week, again, is just directional from there. And just given the differences in hair growth and the mechanism, we want to reserve the twenty six week as the final definitive readout. All right. I appreciate that. Thank you.

28:27 Your next question comes from the line of Vamil Divan from Guggenheim. Your line is now open. Please go ahead. Hi. This is Arcemi on for Vamil. Thanks for taking my questions and congrats on all the progress. You've previously talked about 90% receptor occupancy being necessary to achieve the full therapeutic effect with the prolapsing mechanism.

28:55 Has anything you've seen in the trial so far shifted that perspective in any way? And do you think it's ultimately achievable with that dosing schedule that you need? Yeah so far what we're seeing we definitely see that as achievable and Ranze maybe you want to speak a little bit more to that. Yeah, we're not looking at anything like hair growth in SAD study and but the way we've designed the dosing paradigm we've been very conservative in our scaling and so we're confident we can hit that 90% receptor occupancy. This is certainly something that is something to look forward to with the MAD data and then the hair growth data. And one more follow-up.

29:44 Do you expect variability in therapeutic response among the patients that you enrolled, whether that's because of their biomarker profile, because of their age, or there is something about this mechanism where you think essentially every patient will respond at least to some degree? I mean at this point we're we seem to have a balanced enrollment of the various stages of the Norwood classification. There's nothing that from a biomarker's perspective that I would expect to see or be able to predict a variation in response in the AGA population. So I don't have a great answer to that question but it's a reasonably sized study and it's randomized so in terms of the baseline hair characteristics we're pleased with how patients are distributing amongst the arms.

30:37 But at this point I don't I'm not worried about something else causing inter subject variability in the mechanism of action itself. Thank you. Yeah. And we've seen any of that as well in in the vivo or ex vivo experiments that we've run to date. Understood. Your next question comes from the line of Kripa Devarakonda from Truist. Your line is now open. Please go ahead. Hi, how's it going? This is Alex on for Kripa. Really exciting time at Absci. Two questions from us. One, when can we expect to learn more about the mechanism and the properties indication for ABS-two zero two?

31:27 And then also in your consumer survey, did you specifically test for patient preference and desire for combination therapy for ABS-two zero one and other currently approved products? Thanks. Yeah. At the current moment, we are not planning on disclosing any more than we have on ABS two zero two and the mechanism of action. Though I will say we are very excited about the overall opportunities. And as we get closer to the clinic, we'll definitely be disclosing more on that. But just from a competitive standpoint, we're not disclosing at this point in time. And Zach, do you wanna take the second question? Yeah, absolutely.

32:13 So in the survey itself, we did not specifically ask that question, but we have asked that question in our patient interview segments. In the survey what we did see, which I think was really exciting for us, is when we talked to surveyed men and women we saw a very high response rate in terms of those who said they would go be extremely likely or very likely to go seek out the product today if it were available. That was eighty seven percent of men, sixty nine percent of women. But then when we zeroed in on subgroups who are on existing standard of care, for example oral minoxidil, those numbers went up dramatically. So for men they went from eighty seven to ninety two percent, and for women they went from sixty nine to eighty nine percent.

33:01 So we clearly see a strong level or a stronger level of interest in the product if you're already using a standard of care in those subgroups. So we think that the survey really supports the new category definition here where patients are really going to be looking for this as a new category either to replace standard of care that they are dissatisfied with or to use on top of standard of care. All right. That's great color. Thanks. Very excited over here. Congrats on all the progress. Thanks Alex. Your next question comes from the line of Jeb Chatterjee from Jones. Please go ahead.

33:52 Hi, thanks for taking my question. So I have a question on the endometriosis program. I know pain is a very common endpoint for these trials, but historically, the high placebo response has been an issue with pain studies. So what kind of structural elements would you implement in this trial to prevent or control placebo response? And I have a follow-up. Yeah, Ranzi, you wanna take that? Yeah. Thanks for the question. I learned a lot in my time at Vertex overseeing the pain program there. And I'm glad to appreciate that the pain aspect of these studies is ultra important. You know, crux I think is how you execute the trial.

34:38 So we will spend a lot of time making sure the sites are carefully chosen. The investigators are carefully chosen all the partners that we're working with understand how to mitigate placebo response, placebo training is really important. We will be surveilling the blinded data for evidence of placebo response. And so there is a lot of operational stuff that's not put into the protocol because these are really things that you have to do in execution. And we've also engaged the FDA in how we're approaching mitigation of placebo response. So it's really, really important. Not something that you always see in the protocols, but heavily operational and done behind the scenes. Okay, that's helpful. And so for 02/2002, I know for competitive reasons you can't share much details, but just wanted to know if that is something for internal development, or is that something you would partner off given that, you know, the pricing would be very different for INI indications?

35:42 Yeah. We are definitely open to both options on ABS two zero one. The current option at the moment is pursuing this ourselves. But given the opportunity here in the market size, we are considering both internal development as well as partnering. Helpful. Thank you. That is for ABS two zero two. Sorry. Yes. Your next question comes from the line of Brian Cheng from JPMorgan. Your line is now open. Please go ahead. Hey, guys. Can you hear me?

36:33 Yep. Hey, guys. Can you hear me? Yes, Brian, we can. Oh, hey, sorry. Yes, so thanks for taking my question this afternoon. So when you talk about the 20 hair growth as the benchmark for success, I think that's what you have been guiding for some time now for your AGAMAD portion. Can you clarify whether that's the benchmark that you expect for the end of the MAD portion, meaning that at the end of the twenty six week? And if it is, just curious if you can also help us think about what you would wanna see or what you expect to see at the thirteen week mark based on the preclinical work that you have done. Yeah, it's a great question, Brian. And where we want to be at the twenty six weeks is definitely where oral minoxidil sits.

37:28 And at the thirteen week, we are not putting an official guide on that. We wanna see directional hair growth. And just given the biology and the new mechanism here, we don't wanna set any sort of unrealistic expectations. And I think the best way to look at this is through the lens of the twenty six week readout, which again is where we want to be right around oral minoxidil with infrequent dosing. Brian, if I could answer that, what we showed in the survey is if we have the TPP that includes that sort of effect size that's similar to oral minoxidil, the high dose oral minoxidil, so think in the 30s, With that convenient profile and durability, that's really a home run product. There's a product that efficacy below that as well, but the consumer research we've done with KOLs and with AGA consumers would suggest that that is a very fantastic product category defining at that threshold.

38:40 Got it. And maybe just going back to the PK data that you have seen so far, and I think you said in your prepared remarks that the modeling work that you have seen from the trial, it truly supports a few times a year type of dosing regimen. So can you give us a little bit more color, a little bit of glance of how we should think about the key parameters that are driving the conclusions? Thank you. Ramzi, do you want to speak on the PK? Yeah, mean, we're assessing PK from all of the SAD cohorts.

39:25 We just started dosing the MAD cohort, so we don't have MAD PK but the SAD cohorts are developing nicely. We're pretty feel pretty good about being able to dose at least every eight weeks subcutaneously. We'll have more color on this and a more refined estimation of dosing frequency when we have the data that we talked about in a few weeks. Yeah, say from the preliminary half life and PK, we we feel very we're we're feeling very optimistic and looking forward to sharing the the full data on that in in June. Your next question comes from the line of Swayampakula Ramakanth from H. C. Wainwright.

40:27 Your line is now open. Please go ahead. Thank you. Good afternoon, Sean and Zach. Thanks for taking my questions. I apologize that I'm going to disappoint you by not asking a question on 02/2001 or 02/2002. However, I have a couple other questions. One is, stated that you're deemphasizing oncology products. So I'm just trying to understand what's some of the reasoning behind it. And also, what sort of an interest are you seeing from outside, especially for these novel drugs? Yeah, from a strategy standpoint, if you look at ABS two zero one in particular going after AGI, mean, this is gonna be a direct to consumer type of product, and we really wanna be building out products that would support this. And in particular, in I and I makes a lot of sense.

41:32 And oncology just doesn't support that particular go to market strategy that we wanna have with AGA. And so we have deprioritized these and no longer going to fund any of these internally. And again, put all the focus into assets that are gonna be supporting the lead asset, ABS two zero one in AGA and endometriosis. Okay, and then in terms of bringing in partners, right? Because you've been talking about generating partnerships, including a large cap pharma for a while now, and that cadence has been slower than what we had seen in the previous years.

42:24 So I'm just trying to understand some of the factors that are going into it. Is it more because some of this large cap pharma or large cap biotech, they are generating their own tools that they feel sufficient enough? Or is it because the economics that they bring to the table doesn't seem viable for you to enter into a relationship? Yes. So our focus is driving the clinical development of ABS two zero one. We are continuing to look for farmer partnerships around our our pipeline, but they have to make sense for for us. We're we're limited team here, and we wanted to to synergize. And so we are being, you know, very selective of of who we partner with and and how they're synergized in building out the overall portfolio that we wanna build out and supports the go to market strategy as well with ABS two zero one. So it is definitely an area that we are focused in on, but it has to make sense strategically for us. Zach, do you have anything else to add to that?

43:48 Yeah. And Sean is exactly right. And RK, I'll just add one thing. That's internally we have the capability to generate assets and we believe we have a leading platform that's very focused on challenging targets, as well as a leadership in certain areas of biology, foremost prolactin biology. We believe and we've done a full blown analysis internally that we can generate better economic terms on partnerships that are focused on an asset even at a preclinical stage versus tying up our resources and capacity for a target based platform partnerships. And so we've got a number of assets that are coming towards DC this year and several of those we think would be earmarked towards partnering to generate non dilutive cash flow.

44:36 And when we run the analysis internally, the risk adjusted NPV from focusing on creating assets and partnering those is a multiple of what it would be relative to a platform target based deal when you look at it on a target by target or program by program basis. So for us, the economics also point us in that direction. Great. Thanks. Thanks for taking my questions, gentlemen. Your next question comes from the line of Steve Bejer from KeyBanc Capital Markets. Your line is now open. Please go ahead. Hey, guys. You mentioned adopting more AgenTeq AI into your business. I guess just how is this impacting your drug discovery process process as well as your business operations and any kind of cost savings near term that you can point to? Thanks.

45:42 Zach, you wanna take that? Yeah, happy to. We are very aggressively implementing agentic workflows throughout, and that includes not just in science and R and D, but also across SG and A. So we're in a period where we're rolling that out. We're already seeing significant efficiency gains, and we expect to realize those in terms of cost reduction as well as capability gains on a go forward basis. So you can think of it even over the next few months we should start realizing some of those gains. All right. Thank you. Your next questions come from the line of Vamil Divan from Guggenheim.

46:32 Your line is now open. Please go ahead. It's Arseny on for Vamil. I had one more follow-up on the hair repigmentation opportunity. You previously talked about it as being roughly the same size as the AGA market. And my question is, what do you expect to see there? Like, what readout do you think would be clinically meaningful? And then would you consider pursuing it as a separate indication down the line with additional studies? Would it be sort of an extra claim in the label in addition to the AJA indication? Just any color on that would be helpful. Yeah. Look, we're really excited about the potential for repigmentation.

47:22 We do see it as creating even a bigger market opportunity than what we currently have. Right now, it's an exploratory endpoint. And we're gonna see how readouts go out to 13 and 26 and then determine how we wanna proceed forward from there. Ranzi, I don't know if you have any other color you wanna add to that. Yeah I think you summed it up well Zach. And you know Synamogos data from that other program are really interesting and exciting. And at this point we're looking to see what we can see. But mechanistically it does make sense that it's a potential finding.

48:11 Very helpful. Thank you. Thank you. We have reached the end of the question and answer session. This also concludes our call for today. Thank you everyone for attending this call. You may now disconnect. Goodbye.