Absci (ABSI) Q2 2026 Earnings Call Transcript

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DATE

Tuesday, Aug. 11, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Corporate Vice President and Investor Relations-Alexander Khan
• Founder and Chief Executive Officer-Sean McClain
• Chief Financial Officer and Chief Business Officer-Zachariah Jonasson
• Chief Medical Officer, Head of R&D-Ransi Somaratne

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TAKEAWAYS

• Revenue -- $0.3 million for the quarter ended June 30, 2026, compared to $0.6 million for the same period in 2025, reflecting fluctuations in partner program milestones.
• Research and Development Expenses -- $22.6 million, an increase from $20.5 million in the prior year period primarily driven by the advancement of the ABS-201 clinical program.
• Selling, General, and Administrative Expenses -- $9.2 million, representing an increase from $8.5 million due to higher stock-based compensation and administrative costs.
• Net Loss -- $33.2 million, or $0.21 per share, compared to a net loss of $30.6 million, or $0.24 per share, in the second quarter of 2025.
• Cash and Marketable Securities -- $201.1 million as of June 30, 2026, which is an increase from $125.7 million as of March 31, 2026.
• Financing Proceeds -- $93.6 million in net proceeds from an underwritten common stock offering and a strategic investment from Eli Lilly completed in June 2026.
• Eli Lilly Strategic Investment -- $40 million as part of a collaboration focused on the clinical development strategy for ABS-201 in endometriosis.
• Operating Cash Runway -- Sufficient to fund the company's operating plan into the second half of 2028, supported by the recent $100 million financing.
• ABS-201 Estimated Half-life -- At least 65 days based on interim pharmacokinetic data from single ascending dose cohorts, suggesting potential for infrequent dosing.
• Target Dosing Interval -- 2 to 3 doses over a 6-month period, which is intended to maintain receptor occupancy levels necessary for hair regeneration.
• Target Receptor Occupancy -- Greater than 90%, which management identified as the threshold required to maintain the hair follicle in a prolonged anagen state.
• Pattern Hair Loss Market Opportunity -- $25 billion total available market in the United States, based on consumer research and feedback from key opinion leaders.
• Endometriosis Peak Sales Potential -- Greater than $4 billion for a disease-modifying therapy targeting a population of approximately 9 million women in the U.S.
• Atlas Discovery Engine Efficiency -- 1,000-fold reduction in library size required for lead identification through agentic AI model improvements.
• Platform Performance Metrics -- Under 2.5 years and less than $15 million in total cost to advance internal programs from discovery to IND-enabling studies.
• Target Hair Growth Efficacy -- 30 to 35 hairs per square centimeter at 26 weeks, a target management believes would represent a top-tier product profile.
• U.S. Pattern Hair Loss Population -- 80 million people, including 30 million women, identified as the addressable patient base for ABS-201.
• Phase II Endometriosis Timeline -- Initiation anticipated in the fourth quarter of 2026, with proof-of-concept data expected in the second half of 2027.
• Pattern Hair Loss Data Readouts -- Interim 13-week proof-of-concept data expected in late 2026 and full 26-week data expected in early 2027.
• ABS-202 Development Status -- Preclinical anti-prolactin receptor antibody currently being evaluated for an undisclosed immunology and inflammation indication.
• Formulation Improvements -- AI-designed candidates are now optimized for high concentration formulation development to reduce IND-enabling timelines.
• Patient Enrollment -- Multiple ascending dose portion of the HEADLINE trial is currently enrolling according to the original project plan.
• Depreciation and Amortization -- $2.7 million for the second quarter, compared to $3.0 million for the second quarter of 2025.

SUMMARY

Management at Absci Corp. (NASDAQ:ABSI) reported progress in transitioning from a pure discovery platform to a clinical-stage developer of proprietary therapeutics. The company emphasized its focus on the prolactin receptor franchise, specifically the ABS-201 program for pattern hair loss and endometriosis. The strategic narrative centered on the deployment of Atlas, a new agentic discovery engine designed to accelerate the target-to-lead process. A $100 million financing round, including $40 million from Eli Lilly, extended the company's cash runway into 2028.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to the Absci second quarter business update. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Alexander Khan, Corporate Vice President and Investor Relations Please go ahead.

Alexander Khan: Thank you. Earlier today, Absci released financial and operating results for the quarter ended 06/30/2026. If you have not received this news release or if you would like to be added to the company's distribution list, please send an email to investors@Absci.com. An archived webcast of this call will be available for replay on Abzai's Investor Relations website at investors.absci.com for at least 90 days after this call. Joining me today are Sean McClain, Absci's founder and CEO Zachariah Jonasson, Chief Financial Officer and Chief Business Officer and Ransi Somaratne, chief medical officer, head of R&D.

Before we begin, I would 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. You should not place undue reliance on forward looking statements. These include statements regarding the development and clinical progress of our pipeline programs including ABS-201, the design, enrollment conduct, and timelines of our ongoing Phase IIa headline trial of ABS-201.

The anticipated timing of an interim proof of concept data readout for ABS-201 in the second 26 and full proof of concept data in early 27 the potential events in a BABS-201 into Phase III development, the anticipated initiation of a Phase II clinical trial of ABS-201 for endometriosis fourth quarter 26 and potential proof of concept readout in second half of 27 Anticipated characteristics and product profile of ABS-201 as the drug product. Our target product profile attributes, the potential for an expedited development pathway, including the possibility of advancing directly from Phase IIa to Phase III.

A plan to engage with the FDA regarding development strategy Our partnership with Eli Lilly including anticipated benefits thereof in Eli Lilly's participation on our endometriosis advisory board The capabilities anticipated benefits of our platform technology such as Atlas, and potential market opportunity and commercial prospects for ABS-201. Certain statements may also include projections regarding potential market opportunity. These estimates are based on various assumptions, including potential regulatory approval, 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 of ABS-201.

Additional information regarding the risks and uncertainties that could affect our forward looking statements is set forth in the press release Absci issued today. Our most recent annual report on Form 10-K, subsequent documents and reports filed by Absci from time to time with the SEC. Except as required by law, Absci disclaims any intention 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. This conference call contains time sensitive information that is accurate only as of the live broadcast August 11, 2026. With that, I will turn the call over to Sean.

Sean McClain: Thanks, Alex. Good afternoon, everyone. Thanks for joining us today. Absci continues to execute. I will walk you through recent highlights. Including key progress on ongoing headline trial, our new partnership with Eli Lilly, and our $100 million financing completed at the end of June. Starting with headline. In June, we released positive interim Phase I data. The data suggests the study drug was well tolerated with favorable safety and tolerability. And based on interim PK data, ABS-201's half life supports the potential for just 2 to 3 injections over 6 months. This is exactly why we built our AI platform. To design molecules that meet our target product profile that we set out from day 1.

You have heard us say the prolactin mechanism is underappreciated. Everything we have learned has only strengthened that conviction, and we believe targeting the prolactin receptor has the potential across numerous diseases. And we are also excited to have a partner who shares in that vision. As you saw in June, we announced that Eli Lilly made a $40 million strategic investment in Absci. Our partnership with Eli Lilly is tailored around the clinical development strategy for ABS-201. And as a part of this collaboration, we are happy to be welcoming a representative from Lilly onto our endometriosis advisory board. Zachariah will provide more details of this partnership later in the call.

In addition to Lily, we have seen elevated interest from the investment community in prolactin biology. In June, we completed a $100 million financing including the $40 million investment from Lilly, from a group of blue chip investors. We are grateful for their support which enables the continued development of our existing programs as well as future expansion of our pipeline. ABS-201's progress is a testament to the platform and the team that created it. Building on that leadership in de novo antibody design with Origin we have now extended the platform upstream with Atlas Absci's target to lead autonomous scientists.

Atlas is an agentic discovery engine built to remove the bottleneck ahead of design rapidly identifying and validating the right targets. Atlas integrates literature, genetics, and single cell sequencing data to surface and triage novel target hypothesis These flow directly into origin for epitope specific de novo design and then into our in house wet lab characterization and pathway validation. This process closes a hypothesis to molecule loop and turns discovery into a high throughput fail fast engine by having more shots on goal and better ones. We are already seeing this at work. Atlas has surfaced potential new indications for our prolactin receptor franchise, and independently recovered genetic evidence linking this pathway to pattern hair loss and endometriosis.

This is a powerful new tool that every drug hunter at Absci can now leverage. We will continue deploying this AI native platform to create therapeutics like ABS-201 with the potential to change the treatment paradigm for patients. With that, I will turn it over to Ransi to walk through the ABS-201 clinical program.

Ransi Somaratne FACC: Thanks, Sean, and good afternoon, everyone. In June, we released positive interim Phase I data from the ongoing headline trial of ABS-201. We continue to be encouraged by the emerging safety pharmacokinetic and immunogenicity profile observed to date. As we said in June, blinded aggregate interim data suggests study drug was well tolerated and exhibited a favorable safety and tolerability profile. Additionally, based on available interim pharmacokinetic data across all 4 single ascending dose cohorts, half life for ABS-201, is estimated to be at least 65 days. These results support the potential for dosing 2 or 3 times over a 6 month period pending confirmation through continued follow-up across all cohorts.

Additionally, new modeling continues to suggest that 2 to 3 doses of ABS-201 over 6 months would be able to achieve greater than 90% receptor occupancy. Which we believe is a key driver of meaningful clinical efficacy for hair growth. These new data are available in the updated corporate deck published on our website today. We are very eager to share our clinical data with you once it is unblinded. We are pleased to share that the multiple ascending dose portion of the study continues to enroll according to plan. We continue to anticipate an interim proof of concept readout in the form of 13 week data later this year.

Then, we anticipate our full proof of concept data in the form of 26 week data in early 27. As a reminder, the headline 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 pigmentation. We will also collect patient reported outcomes data in this study. The prolactin receptor mechanism for hair growth is unique. Unlike minoxidil, finasteride, or nutraceuticals, the mechanism underlying ABS-201 is regenerative for the hair follicle.

Protecting and promoting hair follicle stem cells, restoring CD34 progenitor cells, and stimulating key growth factors, IGF-1, and FGF-7 while decreasing the catechin driving TGF-beta 2. This regenerative mechanism is unique to the antiprolactant receptor pathway, and supports the significant durable effects with potential to grow new hair and dormant follicles. Our clinical study is designed to showcase this unique mechanism with our 13-week assessment, which is interim in nature. Intended to provide a directionally positive signal, i.e., has the mechanism begun to take hold? And is it building all the machinery and building blocks we see responsible for regenerating the hairs?

A directionally positive signal of hair growth at 13 weeks would give us even further confidence in seeing more robust hair growth at 26 weeks and beyond, as is supported by preclinical data in the stump tailed macaque. Altogether, the preclinical stump tailed macaque data as well as our human ex vivo data from skin biopsies of both male and female donors provide robust support for this mechanism and its ability to provide durable hair growth. We are also excited to be progressing our ABS-201 program for endometriosis. As Sean mentioned earlier, we are pleased to be welcoming Axel Haupt, MD, senior vice president clinical investigation at Eli Lilly and Company onto our Endometriosis Advisory Board.

And with the safety, tolerability, and PK data generated in the SAD portion of the HEADLINE trial, we anticipate initiating a Phase II study in endometriosis in the fourth quarter of this year. With that, I will pass it over to Zachariah to discuss our business strategy and to provide an update on our financials.

Zachariah Jonasson: Thanks, Ransi. We continue to focus our strategy on creating and advancing high value pipeline programs like ABS-201, Our primary objective today is the successful execution of our clinical trial for ABS-201 in male and female pattern hair loss and in endometriosis. We are also advancing a preclinical pipeline focused on immunological and inflammatory indications that fit into our broader strategy including programs that can ultimately be commercialized direct to consumer. The clinical trial for ABS-201 continues to progress according to plan. We believe this program offers an outsized ROI based on its relatively capital efficient clinical development plan and significant market opportunity.

Based on our market research, we estimate a potential total available market greater than $25 billion in The U.S. Alone. In addition, to pattern hair loss, we also see a significant multibillion dollar market for endometriosis. With potential peak sales of over $4 billion These programs are emblematic of how we prioritize and allocate our resources to programs that offer high ROIs based on addressing large underserved patient populations. We are leveraging our leadership in prolactin biology, by advancing ABS-201 toward proof of concept in both pattern hair loss and endometriosis. And by progressing our preclinical anti prolactin receptor program ABS-202, in an undisclosed I&I indication.

We are also actively exploring other potential underserved indications for which prolactin receptor inhibition could offer a differentiated therapeutic mechanism. We look forward to sharing our interim proof of concept data in pattern hair loss later this year. And our full proof of concept data early next year. As a reminder, our consumer research survey as well as input from leading KOLs inform our view that a 26 week increase in target area hair count of 30 to 35 hairs per centimeter squared roughly on par with high dose oral minoxidil. Would enable a home run product Our consumer and KOL research support an estimated $25 billion TAM associated with such a hair growth effect size.

Given ABS-201's expected unique durability and administration convenience. We believe a target area hair count result above that level would expand the market further and that a less robust result would still unlock a multibillion dollar market opportunity. AVS-201, with its novel prolactin receptor mechanism is positioned to become a new premium category of pattern hair loss therapy. Offering consumers convenient, durable, regenerative hair growth. Continuing to execute the development of this program remains our top strategic priority. Our platform continues to evolve and deliver new capabilities and efficiency gains. As you will recall, our first programs were advanced to IND enabling studies in under 2.5 years, and under $15 million in total cost.

Based on our current origin model improvements, in combination with our agentic Atlas platform, we believe we can significantly improve on these metrics. For example, our latest origin models allow for a 1 thousandx reduction in library size for identification of high quality leads. We are also finding ways to reduce IND enabling study timelines based on the quality of our AI designed drug candidates. Which, for example, are well suited to high concentration formulation development. We anticipate additional efficiency and capability improvements as we further advance our platform. We are grateful for our partners new and existing, for their support.

As discussed,, we are excited to be collaborating with Eli Lilly and to welcome a member of their leadership team onto our Endometriosis Advisory Board. Our partnership with Eli Lilly is tailored around the clinical development strategy for ABS-201 and does not confer rights to the program, which we plan to develop ourselves. We appreciate Eli Lilly's support as well as their interest in prolactin biology within pattern hair loss, women's health, and beyond. Turning now to our financials. Research and development expenses were $22.6 million for the 3 months ending 06/30/2026. As compared to $20.5 million 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-201 offset by a decrease in personnel related costs. Selling, general and administrative expenses were $9.2 million for the 3 months ending 06/30/2026, as compared to $8.5 million for the prior year period. This increase was primarily due to stock based compensation and other administrative costs. Cash, cash equivalents, and marketable securities as of 06/30/2026, were $201.1 million as compared to $125.7 million as of 03/31/2026.

In June, we completed an underwritten offering of common stock The net proceeds from the offering were approximately $93.6 million Our current balance sheet including this additional capital, supports our execution of key upcoming catalysts and continued progress of our early stage pipeline, as well as an expansion of our planned endometriosis clinical trial. As we finalize our clinical trial design, we anticipate sharing additional details of the endometriosis clinical development plan later in the third quarter. Based on our current projections, we now believe our cash equivalents and marketable securities will be sufficient to fund our operating plan into the second half of 28. With that, I will now turn it back to Sean.

Sean McClain: Thanks, Zachariah. As always, I wanna thank the Absci team for making all this possible. I would also like to thank Eli Lilly, for their partnership and all of our investors both new and existing, for their support. We are fast approaching pivotal moments for Absci. Our first look at interim POC data for pattern hair loss is anticipated later this year Our full 26 week POC data should follow early next year. Where we anticipate showing robust hair regrowth from our regenerative prolactin mechanism. I am incredibly excited for both of these readouts. We are energized for what we are building our early stage pipeline.

We see a huge opportunity to capitalize on the interest in Total Vitality combined with consumer shift toward more direct to consumer and cash pay products. Our current and future pipeline focuses squarely on these emerging trends. We continue to fire on all cylinders, and I cannot wait for everyone to see the results of our hard work in the coming months. Operator, let's open the call for questions.

Operator: Thank you. To withdraw your question, please press 11 again. In the interest of time, we do ask that you please limit your questions to 1 and 1 follow-up. Please standby while we compile the Q&A roster. And our first question comes from Brian Chang of JPMorgan. Your line is open.

Brian Cheng: Hey, guys. Thanks for taking our question this afternoon. Maybe just to start off, we noticed that your indication on your press release is now defined as pattern hair loss. And I think in the prior communication, you have been indicating that the lead indication has androgenetic alopecia. So is there any read-through in terms of how your defining the target indication today? Is there any change in terms of the lead indication for 201? And then we have a quick follow-up. Thank you.

Sean McClain: Yeah. Thanks, Brian. it is a great question. So we decided to change the name for 2 reasons. First is, if you think of androgenic alopecia, it implies the androgen receptor, and we know that targeting the androgen receptor such as, you know, finasteride or other androgen receptor antagonists do not fully regrow hair.

And we do have evidence that does support that prolactin looks to sit upstream of the androgen receptor and actually drive androgen receptor expression And so based on the underlying biology and the importance of prolactin, within pattern hair loss, we decided to switch the name from androgenetic alopecia to pattern hair loss Additionally, we had gotten feedback from other KOLs that they thought that this was a more appropriate name. And the last piece is on the consumer front. I think that pattern hair loss is much better understood among consumers than androgenetic alopecia and so for all of these reasons, you know, we have changed the name, but not the indication itself.

And Ransi and Zachariah, please chime in if there is anything else I missed there. Yeah.

Ransi Somaratne FACC: Thanks, Sean. So, yeah, I mean-- All right. Go ahead, Zachariah. No. No. Go ahead, Ransi. I think the term pattern hair loss also encompasses the entire population. Like, we are still studying the same population or indications encompass the same population. But really, you think about the disease state in The U. S, there is 80 million people and 30 million of those are women. So, we think the term pattern hair loss is more appropriate. To describe who it is that we are targeting. Thank you, Ransi.

Zachariah Jonasson: I was just going to add too that the change in name does not have any impact on how we have assessed the market opportunity. it is still fundamentally the same market opportunity, number of patients, and our consumer surveys were focused on identifying that. So this does not have any effect on those estimates.

Brian Cheng: Thank you. that is very helpful. And as a follow-up, I think, you know, in our prior discussions, we all have a pretty good sense of what we want to see in terms of nonvillous hair count. At week 13 and week 26 from your MAD portion. And just looking at other metrics, I think you have mentioned that the terminal-to-vellus ratio metric is also super important in terms of, you know, giving you a directional insight of whether ABS-201 is giving you some benefits toward the goalpost.

Can you help us think about what is the magnitude that you want to see in terms of the T-to-V ratio And then also curious if you have a sense of what some of the current standard of care can offer in terms of the ratio changes at around week 13. Thanks for your help.

Ransi Somaratne FACC: Yeah. Ransi, do you want to take that 1? Yeah. So an interesting question. I think we are, at least for the interim, we are interested in a broad set of data. I am particularly not focused on a specific v to t ratio. And I honestly Brian, I am not sure I have seen specific V-to-T ratios from other programs. So cannot really answer that 1 for you.

Sean McClain: Yeah. And I think, like, how we are thinking about the 13-week is really looking at not only the terminal, but also V-to-T. Also the potential to regrow hair in dormant follicles, whether that comes up as a, you know, terminal hair, a vellus hair, or you have more of a V-to-T transition.

I think the key point with this readout is being able to show potentially new mechanisms that other drugs do not show, and I think regrowing that dormant follicle where you have been bald for many years we start to see changes there, again, whether it is on the vellus hair or the terminal hair, we think that is really exciting and could be a big game changer for this particular mechanism. In addition to the regenerative aspect.

Zachariah Jonasson: And Brian, that is why that is why we have talked about total hair count in the past, and that encompasses what Sean was just talking about. Thanks, guys.

Operator: Thank you. And our next question comes from Brendan Smith of TD Cowen. Your line is open.

Brendan Smith: Great. Thanks for taking the questions, guys. Wanted to just first clarify quickly on 201. Is it maybe fair for us to assume you will get the interim data in hand and put it out before initiating the Endometriosis study and then full POC hair loss data in Q1 thereafter. Is that kind of just a fair assumption on the order of events coming up there? And then to follow-up on the platform itself, sounds like plan outside of prolactin receptors is still largely developed targets out licensed prior to entering the clinic on your own.

So that is the case, I guess, just wondering on a strategy level how we should think about potential cadence of new assets coming out of the platform. Do you kind of have a target, you know, partner deal cadence in mind, just any color there on output that we should keep in mind over the next I do not know, 12 to 18 months. Thanks, guys.

Sean McClain: Yeah. Thanks, Brendan. So to your first point, I think that is a fair assumption. On the second point, we are planning on taking ABS-201 to market ourselves and everything that we have coming behind ABS-201. We are looking at it from the lens of what could we commercialize ourselves, what could potentially be an OTC that you could sell alongside ABS-201 And then make the determination, do we have the capital? Is the cost capital right to continue to develop this ourselves? Or do we want to find a partner given the indication or the cash situation. But everything we are developing would be with that commercialization in mind. And then we have the optionality to partner.

That is the current view we have. And Zach, Lisa, chime in as well.

Zachariah Jonasson: Yeah. I think you said it well, Sean. I think the only other point I would make is Sean described some of the advances in our platform. We are becoming more and more efficient at generating new molecules and new programs. And so I think we will be creating a lot of optionality for ourselves. But to Sean's point, we are very rigorous about providing, like, a strategic and ROI based perspective on which programs we will advance with our own balance sheet. Versus the ones we will partner.

Operator: Thank you. And our next question comes from Vamil Divan of Guggenheim. Your line is open.

Vimal Divan: Great. Thanks for taking my question. Maybe 1 just quick follow-up on the conversation around the partnerships. Like, I think last year, you guys had talked about likely signing a partnership by the end of the year. I do not know if that is happened or not. So I am curious, like, would all your partnerships be disclosed? or have you signed any sort since later last year? That maybe just were not disclosed publicly? So maybe any sort of update on that side would be helpful. And then the other question I have is just around this 13-week data, which obviously everyone's eagerly waiting for.

And then just to maybe sort of level set expectations, if you can sort of share what you plan to disclose in the top line release so we all kind of know what to expect there? And so tied to that, you know, 1 of the big potential selling points of 201 would be the durability of the hair that is regrown. I know we are not going to know that at 13 weeks, obviously.

So I am just trying to get a sense of how you think about sort of how long the duration of follow-up would need to be before you start getting comfort that this dosing regimen and that your target profile is the right dosing regimen for the Durabil response. Thanks.

Sean McClain: Yeah. Thanks, Vamil. So in terms of partnership, yeah, the partnership that we had inked with Eli Lilly, both the investment and, you know, the collaboration on ABS-201 on clinical development We do see that as achieving that large pharma partnership. And with regards to the top line readout for the 13 and 26 week, I will hand that over to Ransi.

Ransi Somaratne FACC: Hey, Vamil. Thanks for the question. Yeah. So we plan to show the data that we think will give us that interim look, just sort of a status on what the drug is doing. So we have talked about total area hair count. So that will be their target area hair count, which is the terminal hairs. We will get a look at target area hair width. To see how wide the hair caliber is. And we will be looking at darkness as well. So I think those are the big things. And in addition, we will have a look at the updated safety and tolerability data as well. Great question on the durability.

We are actively working on trying to figure out how we can get that from this study. it is not going to be answered in the 13 or the 26 weeks. We do have a safety follow-up period after this trial. And that is probably the first indication of durability of effect, and we will get the same duration of safety follow-up on the cohorts. it is based on PK. And we are looking at what to do thereafter in terms of describing the durability of effect. So more to come on that. Thank you.

Operator: You. And our next question comes from Arseniy Shabashvili of BTIG. Your line is open.

Analyst: Hi, team. Thank you so much for the question. So it appears from your modeling that you confirm maybe ABS-201 can maintain greater than 90% prolactin receptor occupancy without cycling. How should the greater, more sustained receptor occupancy impact efficacy compared to other prolactin receptor antibodies in pattern hair loss and then secondarily, as in endometriosis. Thanks so much.

Sean McClain: Yeah, it is a great question. And we actually just set out some modeling on the website today with the updated corporate deck and I think it is a very clear illustration. If you look at HMI-115, the once-every-2-week, dosing at 240 milligrams You saw this oscillation that occurred, you know, between 60-70% receptor, occupancy. And we know that the receptor occupancy for the prolactin receptor needs to be you know, well above, you know, 90% to achieve you know, the signal blocking that is necessary even a little bit of receptor left can cause, you know, quite a bit of signaling through the prolactin receptor.

And essentially, the HMI-115 molecule without oscillation and not achieving the receptor occupancy our belief is that they essentially were not able to achieve the efficacy because they were not able to get that prolonged anagen phase. And so that is what we believe that we are going to be able to achieve now. If you look at again, the receptor occupancy, those, you know, 2 to 3 doses, were well above 90%. And we can ensure that the follicle can stay in the prolonged anagen state. In order to rebuild that stem cell niche. So our growth does not happen overnight.

You need that sustained period of blockade in order to get the regrowth And I think the really exciting part is, like, look, if you look at the stump tail macaques, when you got the greater than 90% receptor occupancy, mean, you saw a really, really robust efficacy there, and, you know, we are obviously targeting 30, but I do believe that if you get the mechanism if you hit the receptor appropriate here appropriately to stay in the anagen state, think you have the potential for even further upside than what we have been discussing. And so I think it is a really exciting opportunity with the PK profile that we have been able to achieve.

And then a quick follow-up. How do you expect that to impact endometriosis?

Ransi Somaratne FACC: do you want to take that 1? Yeah, happy to. I think it is the same philosophy, Arseniy. it is you look at the other prolactin receptor antibody, you know, they publish their data in The Lancet, and you saw that there was an effect on dysmenorrhea at the highest dose. And I and we think the same principle applies. In that you have to really achieve that high level of receptor occupancy to efficacy there. So even though it is a disease state that is quite different from pattern hair loss, we think the same principle is in play. Thank you so much.

Operator: Thank you. Star 1. And our next question comes from Gil Blum of Needham. Your line is open.

Gil Blum: Good afternoon. Thanks for squeezing me in. So we saw some interesting data for the oral minoxidil extended release from Veradermics in women. Do you think the data that they put up changes maybe where that bar is as it relates to hair regrowth, or does it not really matter as it relates to your own programs? Thank you.

Sean McClain: I mean, the data that they put out, I mean, clearly shows that standard of care is really poor even with what they have. There is so much more room to improve from a standard of care perspective. And that is something we are very excited about. We, you know, recently showed the female ex vivo data. It looked very similar to what we saw in the males. And we are very excited to get this cohort ticked off. In the study in female patients. And I think that there is a real exciting opportunity just due to the really, really poor standard of care out there. Thank you.

Operator: This concludes the question and answer session and also today's conference call. Thank you for participating and you may now disconnect.

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