10 Best Biotech Penny Stocks to Buy According to Analysts

7. Absci Corporation (NASDAQ:ABSI)

Share Price as of December 26: $3.57

Number of Hedge Fund Holders: 18

Average Upside Potential as of December 26: 152.10%

Absci Corporation (NASDAQ:ABSI) is one of the best biotech penny stocks to buy according to analysts. On December 11, Absci Corporation (NASDAQ:ABSI) unveiled promising preclinical data for ABS-201, which is an AI-designed antibody targeting the prolactin receptor/PRLR to treat androgenetic alopecia/AGA. The data was derived from organ-cultured human scalp skin models. The new research suggests that ABS-201 could offer a radically different approach to hair loss by addressing the root causes of follicle miniaturization, specifically targeting hormonal signaling beyond just androgens.

The study demonstrated that ABS-201 successfully inhibits the PRLR signaling pathway (specifically STAT5 phosphorylation), which triggers several positive biological responses. Most notably, the antibody was shown to prolong anagen (the active growth phase) and block catagen (the regression phase). By stimulating hair matrix keratinocytes and increasing the production of essential growth factors like IGF1 and FGF7, the treatment promotes the synthesis of hair shaft keratin. This multi-pronged activity facilitates the potential reconversion of thin vellus hairs back into thick terminal hair follicles.

A critical discovery in this data is ABS-201’s ability to protect and expand the hair follicle stem cell niche. The antibody inhibits the apoptosis (cell death) of K15+ stem cells and increases their capacity to generate CD34+ progeny. Currently, the ~80 million Americans suffering from AGA rely on minoxidil and finasteride, which often provide limited results. In previous preclinical mouse models, ABS-201 demonstrated statistically significant superior regrowth compared to minoxidil.

Absci Corporation (NASDAQ:ABSI) operates as a data-first GenAI drug creation company in the US. The company combines AI with scalable wet lab technologies to design differentiated antibody therapeutics.