Shares of Absci Corporation (NASDAQ:ABSI) dropped sharply on Friday after the company announced a public offering of its common stock at a price significantly below the previous day’s close.
The clinical-stage biotech firm, which leverages generative AI in drug discovery, priced its new stock issue at $3.00 per share—well under Thursday’s closing price of $3.51. The steep 14.5% discount triggered a 16% decline in the company’s share price during the session.
Absci plans to issue 16.67 million shares through the offering, with an option for underwriters to acquire up to an additional 2.5 million shares under the same terms. The deal is expected to generate around $50 million in gross proceeds before accounting for underwriting fees and other offering costs.
The proceeds will be used to push forward the development of Absci’s in-house drug programs and further enhance its proprietary Integrated Drug Creation™ platform, which combines artificial intelligence with laboratory experimentation to engineer next-generation therapeutic candidates. Remaining funds will go toward working capital and general corporate needs.
While it’s common for secondary offerings to be priced at a discount, the depth of the markdown likely contributed to the stock’s downward move, as investors recalibrated expectations in light of the new valuation.
Absci positions itself at the forefront of AI-driven drug development, aiming to accelerate the path from concept to clinic through its integrated approach.
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