EMERYVILLE, Calif. & DENVER--(BUSINESS WIRE)--OmniAb, Inc. (NASDAQ: OABI) and ArrowMark Partners ("ArrowMark†) today announced the signing of a license and services agreement for novel OmniAb-derived antibody discovery programs with Mabtrx Biosciences, a wholly owned subsidiary of AMVKG LS, a joint venture (JV) between ArrowMark and Viking Global Investors ("Viking†). Under the terms of the license and services agreement, OmniAb will receive revenue for services performed as well as potential equity and ...

Group 1 - The event is part of CSL's 2025 Capital Markets initiative, featuring remarks from the CEO and the General Manager of CSL Seqirus [1][2] - The CEO, Dr. Paul McKenzie, expressed appreciation for attendees who traveled long distances to participate in the event [2] - The meeting aims to provide insights into CSL's journey and future plans, highlighting the leadership team present [2] Group 2 - The venue for the event is a historic hotel in Chicago, built in the 1920s, which coincided with the establishment of Shriners Children's Hospital [3]

Core Insights - OmniAb, Inc. reported a quarterly loss of $0.14 per share, which aligns with the Zacks Consensus Estimate, showing an improvement from a loss of $0.16 per share a year ago [1] - The company's revenues for the quarter ended September 2025 were $2.24 million, missing the Zacks Consensus Estimate by 62.97% and down from $4.17 million year-over-year [2] - OmniAb's shares have declined approximately 58.2% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Financial Performance - The company has surpassed consensus EPS estimates only once in the last four quarters [1] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $7.15 million, and for the current fiscal year, it is -$0.59 on revenues of $21.52 million [7] Market Outlook - The earnings outlook and management's commentary during the earnings call will be crucial for assessing the stock's immediate price movement [3][4] - The Zacks Rank for OmniAb is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Medical - Drugs industry, to which OmniAb belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $2.2 million, a decrease from $4.2 million in Q3 2024, primarily due to reduced milestones and lower service revenue [21] - Operating expenses decreased to $20.4 million from $23.9 million year-over-year, with reductions in both R&D and G&A expenses [22] - The net loss for Q3 2025 was $16.5 million or $0.14 per share, compared to a net loss of $16.4 million or $0.16 per share in Q3 2024 [23] Business Line Data and Key Metrics Changes - The number of active partners reached 104, with 36 new programs added year-to-date, including 18 in Q3 [6][7] - Active programs leveraging the company's technologies increased to 399, with a 15% year-over-year growth in post-discovery stage programs [8] - The company has 32 active clinical programs and approved products as of the end of Q3 [9] Market Data and Key Metrics Changes - The company noted that over half of its partners are based in the U.S., while international reach continues to grow [6] - The company is seeing strong interest in its Exploration Partner Access program, which is expected to drive new program growth and deepen engagement with partners [12][13] Company Strategy and Development Direction - The company is launching a new technology, OmniUltra, which is expected to open new markets and business opportunities, particularly in peptide therapeutics [5][19] - The company aims to enhance financial flexibility and strengthen its balance sheet through strategic private placements [6][21] - The Exploration program is designed to complement the core technology licensing business and is expected to be accretive to earnings and cash flow [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for new clinical program entries, although some milestones have been pushed to 2026 due to partner priorities [10][24] - The company is seeing continued momentum in program additions and an increased focus from academic partners on monetizing programs [36] - Management anticipates that the 2025 revenue will be between $18 and $22 million, with operating expenses between $82 and $86 million [24] Other Important Information - The company completed a $30 million private placement in August, netting $28 million, which is expected to bolster its cash runway [21][24] - The company is preparing for the formal launch of OmniUltra at the Antibody Engineering and Therapeutics Conference in December [19][50] Q&A Session Summary Question: What motivated the timing of the private placement? - The company decided it was the right time to bolster the balance sheet as market conditions became more favorable [26] Question: Can you provide additional color on customer conversations regarding Exploration? - Interest has been strong, particularly from higher-tier partners, with positive feedback on the efficiency and ease of use of the Exploration instrument [29] Question: What is the launch readiness of OmniUltra? - Substantial validation work has been completed, and the company is well-positioned for the launch in December [31] Question: How much revenue can be generated from Exploration? - The company expects Exploration to be accretive to earnings and cash flow, with multiple revenue streams associated with it [32] Question: Are R&D budgets for 2026 expected to increase? - Conversations indicate a positive trend in R&D budgets, with strong program addition momentum observed [38]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $2.239 million, a decrease of 46% compared to $4.172 million for the same period in 2024[126]. - License and milestone revenue for the three months ended September 30, 2025, was $616,000, down 55% from $1.375 million in the prior year[126]. - Service revenue decreased by 52% to $1.188 million for the three months ended September 30, 2025, compared to $2.479 million in 2024[126]. - Royalty revenue increased by 14% to $361,000 for the three months ended September 30, 2025, compared to $318,000 in the same period of 2024[126]. - The company experienced a decline in milestone revenue of $1.0 million for the three months ended September 30, 2025, primarily due to timing issues with new license agreements[126][130]. Research and Development - Research and development expenses for the three months ended September 30, 2025, were $10.379 million, a decrease of 22% from $13.318 million in 2024[129][132]. - Research and development expenses declined by $7.96 million or 19%, from $41.8 million in 2024 to $33.8 million in 2025, primarily due to lower personnel and external expenses[134]. Operating Expenses - For the nine months ended September 30, 2025, total costs and operating expenses decreased to $63.5 million from $74.2 million in 2024, a reduction of $10.7 million or 14%[133]. - General and administrative expenses decreased by $1.0 million or 4%, mainly due to lower legal fees and share-based compensation[135]. Financial Position - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $59.5 million, sufficient to support operations for at least the next 12 months[141]. - Cash used in operating activities was $30.8 million for the nine months ended September 30, 2025, compared to $35.8 million in 2024, a decrease of $5.0 million[147]. - Cash provided by financing activities increased significantly to $28.0 million in 2025, primarily from the issuance of common stock in the August 2025 PIPE[152]. - The company completed a private placement of 21,254,106 shares at $1.40 per share, raising approximately $30.0 million in gross proceeds[143]. Net Loss - The company reported a net loss of $50.6 million for the nine months ended September 30, 2025, compared to a net loss of $49.0 million in 2024, reflecting an increase in loss of $1.6 million or 3%[138]. Future Outlook - The company anticipates that long-term revenue growth will be driven by royalties, which are expected to provide larger and recurring payments compared to other revenue streams[119]. - The company anticipates future cash uses primarily for operations, working capital, and capital expenditures[145]. Partnerships and Products - As of September 30, 2025, the company had 104 active partners and 399 active programs utilizing the OmniAb technology platform, an increase from 91 partners and 363 programs as of December 31, 2024[114][121]. - The company reported a total of 32 approved products as of September 30, 2025, unchanged from December 31, 2024[121][124]. Tax Rate - The effective tax rate for the nine months ended September 30, 2025, was (2.2)%, compared to (12.9)% in 2024, influenced by valuation allowances and tax credits[138]. Royalty Agreements - The royalty term for agreements is generally the longer of 10 years from the first commercial sale or through the last expiration of related patents, which diversifies the royalty streams[118].

Business Highlights - OmniAb has 104 active partners as of September 30, 2025 [13] - The company has 399 active programs as of September 30, 2025, a net addition of 36 programs year-to-date [16, 18] - There are 32 active clinical programs and approved products as of September 30, 2025 [26] - OmniAb is launching OmniUltra in December, a new technology for antibody and peptide therapeutics discovery [11, 41] Financial Performance - Q3 2025 total revenue was $22 million, compared to $42 million in Q3 2024 [65] - License and milestone revenue decreased to $06 million in Q3 2025 from $14 million in Q3 2024 [65] - Service revenue decreased to $12 million in Q3 2025 from $25 million in Q3 2024 [65] - Royalty revenue increased to $04 million in Q3 2025 from $03 million in Q3 2024 [65] - Research and Development expenses decreased to $104 million in Q3 2025 from $133 million in Q3 2024 [65] - Net loss was ($165) million in Q3 2025, compared to ($164) million in Q3 2024 [65] Financial Guidance - The company expects 2025 revenue to be in the range of $18 to $22 million [67] - The company expects 2025 operating expense to be in the range of $82 to $86 million [67]

Revenue Performance - Revenue for Q3 2025 was $2.2 million, down from $4.2 million in Q3 2024, primarily due to lower milestone and service revenue[3] - Revenue for the nine months ended September 30, 2025, was $10.3 million, down from $15.6 million for the same period in 2024[6] - Total revenue for the three months ended September 30, 2025, was $2,239,000, a decrease of 46.4% compared to $4,172,000 for the same period in 2024[30] - License and milestone revenue decreased to $616,000 from $1,375,000, representing a decline of 55.2% year-over-year[30] - Service revenue also saw a decline, falling to $1,188,000 from $2,479,000, a decrease of 52.0%[30] Expenses and Losses - Research and development expense decreased to $10.4 million in Q3 2025 from $13.3 million in Q3 2024, attributed to lower personnel and external expenses[4] - Net loss for Q3 2025 was $16.5 million, or $0.14 per share, compared to a net loss of $16.4 million, or $0.16 per share, in Q3 2024[5] - Research and development expenses for the nine months ended September 30, 2025, were $33,845,000, down from $41,804,000 in 2024, a reduction of 19.1%[30] - The net loss for the three months ended September 30, 2025, was $16,525,000, compared to a net loss of $16,373,000 for the same period in 2024, indicating a slight increase in losses[30] - The company reported a loss from operations of $18,140,000 for the three months ended September 30, 2025, compared to a loss of $19,764,000 for the same period in 2024, showing an improvement of 8.2%[30] Financial Position - As of September 30, 2025, OmniAb had cash, cash equivalents, and short-term investments totaling $59.5 million, following a $30 million private placement in August[8] - Total assets decreased to $309,690,000 as of September 30, 2025, from $325,558,000 at December 31, 2024, a decline of 4.9%[28] - Total liabilities decreased to $32,246,000 as of September 30, 2025, from $37,940,000 at December 31, 2024, a reduction of 15.0%[28] - Stockholders' equity decreased to $277,444,000 as of September 30, 2025, from $287,618,000 at December 31, 2024, a decline of 3.5%[28] Future Outlook - OmniAb expects 2025 revenue to be between $18 million and $22 million, with operating expenses projected between $82 million and $86 million[9] - OmniAb plans to launch its new OmniUltra™ technology in December 2025, which is expected to create new business opportunities[2] - OmniAb's effective tax rate for 2025 is expected to be approximately 0%[9] Partnerships and Programs - The company had 104 active partners and 399 active programs as of September 30, 2025, including 32 programs in clinical development[10] - The company reported other operating income of $2.7 million for the nine months ended September 30, 2025, including a $3.0 million gain from the sale of a small molecule program[7]

Core Insights - OmniAb, Inc. (OABI) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ending September 2025, with a consensus outlook suggesting a quarterly loss of $0.14 per share, reflecting a 12.5% improvement from the previous year [1][3] - Revenues are projected to reach $6.05 million, marking a significant increase of 45.1% compared to the same quarter last year [3] Earnings Expectations - The upcoming earnings report is scheduled for November 4, and the stock may experience upward movement if the reported figures exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised 3.33% higher in the last 30 days, indicating a positive reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that OmniAb, Inc. has a positive Earnings ESP of +15.79%, suggesting a strong likelihood of beating the consensus EPS estimate [12] - The company currently holds a Zacks Rank of 2, further supporting the expectation of an earnings beat [12] Historical Performance - In the last reported quarter, OmniAb, Inc. was expected to post a loss of $0.14 per share but actually reported a loss of -$0.15, resulting in a surprise of -7.14% [13] - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14] Industry Context - Another company in the Zacks Medical - Drugs industry, Karyopharm Therapeutics (KPTI), is expected to report a loss of $3.3 per share for the same quarter, reflecting a year-over-year change of +15.4% [18] - Karyopharm's revenues are anticipated to be $42.3 million, up 9.1% from the previous year, but it has an Earnings ESP of 0%, making predictions about beating the consensus EPS estimate uncertain [19][20]

Company Performance - OmniAb, Inc. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and compared to a loss of $0.13 per share a year ago, indicating a surprise of -7.14% [1] - The company posted revenues of $3.9 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 35.71%, and down from $7.61 million in the same quarter last year [2] - Over the last four quarters, OmniAb has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - OmniAb shares have declined approximately 42.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $6.51 million, and for the current fiscal year, it is -$0.59 on revenues of $23.59 million [7] Industry Outlook - The Medical - Drugs industry, to which OmniAb belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact OmniAb's stock performance [5]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $3.9 million, a decrease from $7.6 million in Q2 2024, primarily due to lower milestone achievements and service revenue [22][23] - The net loss for Q2 2025 was $15.9 million, or $0.15 per share, compared to a net loss of $13.6 million, or $0.13 per share, in the same period of 2024 [25] Business Line Data and Key Metrics Changes - The number of active partners increased to 100, with a net increase of 18 active programs year-to-date, totaling 381 active programs [9][11] - The company executed multiple license agreements, including a deal with Angelini Pharma for a small molecule ion channel modulator [10] Market Data and Key Metrics Changes - The company noted a steady diversification of its partner base, with most partners based in the U.S. but increasing international presence [10] - The exploration partner access program received strong market response, leading to the sale and installation of an exploration system shortly after launch [6][21] Company Strategy and Development Direction - The company aims to expand the reach of its technologies and execute on new technology launches, focusing on creating long-term sustainable value [8] - The exploration program is seen as a complement to the core business, enhancing the probability of success in drug development through advanced technologies [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic goals and the potential for new technology launches to drive growth [8] - The company anticipates that exploration revenue will be additive to existing revenue streams, although it did not change its overall guidance [37] Other Important Information - The company reduced its headcount from 114 to 87 employees, expecting annual cash savings of approximately $7 million going forward [7][26] - The average royalty rate for antibody programs increased to 3.36% from 3.2% reported in November 2023, reflecting the value of the company's technologies [13] Q&A Session Summary Question: Impact of large pharma versus small biotech trends on discovery - Management noted continued growth in both large pharma and small biotech partners, contributing positively to discovery programs [36] Question: Guidance on exploration revenue - Management reiterated that exploration revenue is expected to be additive but did not change overall guidance [37][38] Question: Pipeline for exploration program - The exploration program received positive feedback and has generated significant interest from both existing and potential new partners [45][47] Question: Timeline for existing partners in the access program - Partners can engage in discussions about purchasing exploration instruments while also becoming discovery partners [56] Question: Future technology launches - The company plans to launch an additional technology this year, which will be relevant to its strategic mission [58] Question: Details on Janssen's tri-specific program - The economics around the Janssen deal include milestone payments and do not qualify as a prepaid license [61] Question: Revenue estimates for consumables and subscriptions - Management indicated that estimates for consumable and subscription revenue vary by customer and are not ready for disclosure [63] Question: Proportion of assets derived from the OmniChicken platform - Management confirmed that there are several programs in the pipeline derived from the OmniChicken platform, but specific breakdowns were not provided [68] Question: Business plan for exploration - The exploration business model includes selling instruments and consumables, with a focus on proprietary consumables and software licenses [72]