Absci Corporation (NASDAQ: ABSI), saw its stock jump over 50% in the pre-market trading session today. The ABSI stock skyrocketed by a whopping 51.95% was priced at $9.33 (up by 3.19 points) at 8:05 a.m. ET. The market capitalization stood at $568.5 million.
Today’s news changed the stock’s red trend to green. Yesterday, the ABSI stock closed at $6.14%, down by a huge 12.78% (losing 0.90 points). The sudden hike was in response to its recent announcement of a collaboration with the pharma company, Merck, which had been in talks lately because of its Covid-19 pill.
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. The aforementioned information is taken from the company’s press release.
“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.”-said Sean McClain, founder and CEO of Absci
“At Merck we are continually evaluating new ways to build, expand and refine our biologics capabilities. Absci’s platform offers a compelling opportunity to design new biologic candidates and explore the expression of complex proteins.”-said Dr. Fiona Marshall, senior vice president and head of discovery, preclinical and translation medicine, Merck Research Laboratories.