The #1 Microcap Stock for 2024

This tough market has created an opportunity so big… with a reward-risk ratio so compelling… that I’m certain it will make you – and me – wealthier.

That’s right, I’ve put tens of thousands of dollars of my own money into this investment…

That’s how much I believe in it.

It’s one of the biggest moneymaking opportunities I’ve seen in years.

This company is completely off the radar of Wall Street. Yet, for those who know about it… there’s no better place to be in this market.

The upside possible with this stock is exceptional. I hope you’ll join me as an investor.

I’m already all-in!

A Small Microcap Solving a Big Problem in a Huge Industry

My favorite microcap stock is a leader in one of the most transformative technology breakthroughs in the healthcare industry in more than a decade.

Plus, I love the healthcare sector because it’s outperformed in virtually all kinds of markets. It is one of the most secure sectors of our economy, essentially immune from inflation risk.

Take a look at this chart showing healthcare spending from 1970 to 2020. The spending just kept increasing regardless of what was happening in the economy.

People are willing to pay for medicine to keep them healthy.

Healthcare stocks are by far the best place to put your money during times of inflation.

My #1 Microcap Stock for 2024

Based in Vancouver, Washington, Absci Corp. (Nasdaq: ABSI) has built technology to enable better, faster, smarter drug discovery and cell line development.

The company has one mission: to transform the drug discovery market.

Developing new medicines is a long, intricate and costly process for pharmaceutical companies. Current methods are time-consuming and labor-intensive.

There is no typical length of time it takes for a drug to be evaluated and approved… but that length of time is definitely measured in years. In certain cases, it might take 10 to 15 years… or more!

On average, it costs nearly $4 billion to develop a new medicine (when new medicine failures are included), but this can sometimes exceed $10 billion.

Pharmaceutical industry research and development costs are expected to reach more than $203 billion by the middle of the decade.

Absci’s goal is to drastically reduce the time and cost of drug development by using artificial intelligence (AI) to create new drugs at breakneck speed.

Its AI-powered drug discovery platform integrates genomics, engineering, hyperscale data science and machine learning to reduce costs, move quickly and solve the toughest problems in drug development.

Thanks to advancements in AI, we can now develop drugs at record speeds.

And Absci is at the forefront of this revolution.

Absci is growing through acquisitions and partnerships with both small biotechs and big pharmaceutical companies.

Its business model is to develop a drug candidate and associated cell line, license it to its partners, and then benefit from the program fees and royalties.

By combining AI with the latest research and development gathered from around the world, the company can quickly translate ideas into drugs.

Founder and CEO Sean McClain explained the company’s strategy in an  earnings call last year:

Through our integrated drug creation platform, we expect to get better drugs to patients at unprecedented speeds by merging AI and biology. 

Hiding in Plain Sight

2022 was a momentous year for the company. It saw revenues grow by 20%, and the company’s financial position has only gotten better. And though things cooled off for the company in 2023, it held steady at about the same annual revenue of $5.7 million.  

In the most recent quarter, Q2 2024, Absci took home total revenue of $1.3 million. And it holds $145 million in cash and short-term investments along with a net debt of –$131.91 million and a 0.06 debt/equity ratio.  

That means this is a young biotech that not only has no debt, it has a positive cash position. That’s incredibly rare in this industry and in a market where so many companies are up to their necks in debt.  

Those are solid numbers considering the company just went public in July 2021 at $16 and hit a high of more than $31 the next month.  

From there it has been a bumpy ride, with the stock chugging along near its 52-week low before a rebound through the end of 2023. The stock has been gaining momentum through the start of 2024, it’s up 9.38% year to date.  

Despite that decline in share price, the company is very well-run and its leadership doesn’t want to take on unmanageable debt. That is very good for Absci’s long-term prospects.  

Absci has been making huge strides since then as well (though Wall Street hasn’t noticed). And I expect that momentum to continue as a result.  

The company completed development of a state-of-the-art campus with nearly 80,000 square feet of lab and office space. 

It also made two significant acquisitions: Denovium and Totient. 

These two companies’ technologies have helped Absci create a new gold standard for drug discovery and cell line development for next-generation biologics. 

This will allow the firm to get better drugs to patients more quickly than ever before. Absci has completed several financings, and it now has the capital, the technology platform and the human talent to execute its vision. 

Big Partnerships Will Lead to Big Sales 

Big technology and pharmaceutical companies are catching on to the huge advantages offered through Absci’s drug discovery platform. 

For example, tech giant Nvidia has partnered with this company to design new medicines. Nvidia is by far the world’s leading provider of high-end computer chips. 

Adding partners like Nvidia provides Absci with complex AI technology to accelerate traditionally time-consuming drug analysis processes for its partners. 

Its latest pioneering technology is a machine learning model that can predict the development and commercial viability of a drug candidate with a stunning 85% confidence level. Historically, only 4% of drugs make it from discovery to commercial launch. 

Absci landed a whale in January 2022 when it signed a research collaboration with drug giant Merck & Co. (NYSE: MRK). 

Under this landmark deal, Absci uses its Bionic Protein amino acid technology and its AI drug creation platform to produce enzymes tailored to Merck’s manufacturing processes. 

It’s a major development for Absci… The Merck partnership could add $610 million in revenue. 

Keep in mind, Absci has a market cap of slightly more than $470 million. This one collaboration has the potential for more than $600 million in revenue… That’s well over Absci’s entire market cap and huge multiples higher than the $5.7 million in revenue it earned in 2023. 

The Merck collaboration is still in the initial stages. But payments from Merck are starting to trickle in as Absci deploys its technology to Merck’s biomanufacturing applications. 

The contract is a perfect example of another reason I’m so excited about this company… the way it makes money. 

Absci is in a position to receive milestone and royalty payments on the Merck drugs it helps develop. Once on the market – at no additional expense to Absci – these drugs can provide payments for years! 

The company has similar partnerships involving upfront payments, milestones and royalties with EQRx, PhaseBio and others. 

In the second quarter of 2023, the company landed a partnership with the California Institute of Technology, supported by the Bill & Melinda Gates Foundation, to develop HIV vaccinations. And in the same quarter, the company partnered with a biotech company backed by GV Management Company (formerly Google Ventures). 

Finally, in late 2023, Absci announced a collaboration with AstraZeneca to develop a cancer treatment. 

Things were pretty quiet for the first half of 2024 but tin August, Absci announced a partnership with the Global Cancer Center to develop new cancer therapies using AI. And then, in late October 2024, the company announced a deal with Twist Bioscience to develop novel antibodies for gene therapy.  

Those new collaborations show that Absci is still on the bleeding edge of AI-driven drug development.  

And, in short, I believe this company will be the world’s next big royalty business. 

Developments Are Moving Rapidly 

Absci is not yet profitable because it continues to make investments in AI and other resources. That included increasing its head count from 75 to just shy of 160 as of November 2024.  

In October 2022, it hired a new chief innovation officer, Andreas Busch, Ph.D., who was previously the chief scientific officer at Cyclerion Therapeutics and Shire Pharmaceuticals. 

The company is clearly staffing up to meet huge demand. 

Yet it’s selling for pennies on the dollar… Shares are extremely undervalued. Right now it’s trading 86.7% below its all-time high! 

Absci has enough cash and cash equivalents to fund operations into 2025, so I am not expecting any near-term dilution for shareholders. 

What I am expecting is a lot of near-term stock price appreciation. 

Join me and buy this stock now… before Wall Street realizes the potential and starts piling in. 

***Action to Take*** 

Buy Absci Corp. (Nasdaq: ABSI) at market. Place a 25% trailing stop on your position. 

Microcap Millions 

From inflation to the Fed’s interest rate moves and the like, the market outlook is uncertain. 

But one thing you can always confidently bet on – no matter the state of the broader market – is companies with strong balance sheets, excellent leadership, innovative ideas and huge market opportunities. 

And that’s exactly what we have with Absci… 

Which is why this is the best microcap opportunity for 2024.