Eli Lilly led a $100 million stock offering in Absci by investing $40 million, the company announced this week. Absci, a generative AI drug developer, used its technology to design ABS-201, an injectable antibody targeting the prolactin receptor linked to hair growth and reproductive health. The deal closed last week alongside positive Phase 1 safety data for ABS-201, which aims to treat androgenetic alopecia and endometriosis, conditions with no approved injectable antibody treatments.
The funding round also included participation from Adage, BVF Partners, Columbia Threadneedle, Invus, and Redmile. Absci CEO Sean McClain described Lilly’s $40 million investment as buying “tickets to the game,” emphasizing the strategic proximity between the two companies. Both share ambitions to market biologics directly to consumers, with Lilly operating LillyDirect and Absci aiming to sell injectable drugs like consumer products. McClain suggested future possibilities of combining ABS-201 with GLP-1 compounds for dual treatments addressing hair regrowth and weight loss.
This investment underscores the growing significance of injectables in healthcare, a market projected to reach $650 billion in 2026. Eli Lilly, known for products like Zepbound and Mounjaro, has helped normalize injectables among millions of Americans. Absci’s AI-driven approach to drug design represents a novel method in biologics development, potentially accelerating innovation in treatments for hair loss and reproductive health. The deal positions Absci alongside other biotech firms leveraging AI to create new therapeutic options.
ABS-201’s positive Phase 1 safety results were announced the same day the deal closed, marking a key milestone for Absci. The company’s next steps include advancing clinical trials and exploring the combination of its injectable antibody with GLP-1 compounds, aiming to offer multi-benefit treatments. Eli Lilly’s $40 million investment signals confidence in Absci’s approach and the expanding injectable drug market.