Core Viewpoint - OmniAb Inc. has launched its latest technology, OmniUltra, which is expected to enhance its product offerings and market position [2]. Group 1: Company Overview - Kurt Gustafson serves as the Chief Financial Officer and Executive VP of Finance at OmniAb [2]. - The company is actively engaging with investors and stakeholders through conference calls to discuss developments and innovations [2]. Group 2: Technology Launch - The launch of OmniUltra is a significant milestone for the company, indicating a focus on advancing its technological capabilities [2]. - Accompanying slides are available in the Investors section of the company's website, providing additional context and details about the launch [2].

Summary of OmniAb's OmniUltra Launch Conference Call Company Overview - **Company**: OmniAb, Inc. - **Event**: OmniUltra Launch virtual investor event - **Date**: December 15, 2025 Key Points Industry and Technology - **New Technology**: OmniUltra, a novel platform for discovering ultra-long cDRH3 antibodies and peptides [5][6] - **Unique Features**: OmniUltra is the first transgenic chicken engineered to produce ultra-long cDRH3s, a structural feature typically found in cow antibodies, but with human sequences for therapeutic use [5][6] - **Evolutionary Advantage**: The use of chickens allows for robust immune responses to human targets due to their evolutionary distance from mammals [10][11] Scientific Advancements - **Therapeutic Discovery**: OmniUltra enables the discovery of unique binding fragments called Pico bodies, which can access previously unreachable therapeutic targets [6][7] - **Peptide Therapeutics**: The technology allows for the synthesis of peptides that retain binding activity, providing a new avenue for therapeutic development [12][13] - **Market Growth**: There is a significant increase in the number of new peptides entering clinical trials, indicating a growing interest in peptide therapeutics [17][18] Business Opportunities - **Market Potential**: OmniUltra opens up new licensing opportunities and collaborations, targeting over 130 companies involved in peptide development [18][26] - **Client Engagement**: The technology is expected to attract new partners and revive interest from existing partners, enhancing business development efforts [33][34] - **Revenue Generation**: The platform is anticipated to drive service revenue and increase deal-making diversity [18][19] Competitive Edge - **Biological Intelligence**: The concept that in vivo generated molecules are superior due to natural optimization processes, enhancing specificity and developability [9][10] - **Reduced Immunogenicity**: Smaller peptide structures and stabilized formats are expected to lower immunogenicity risks compared to traditional antibody formats [30][31] Future Outlook - **Partnership Growth**: The launch of OmniUltra is expected to increase the cadence of new partnerships and collaborations in the coming years [32][34] - **Investment in Infrastructure**: OmniAb has made prior investments in facilities and infrastructure, allowing for scalable operations without significant incremental costs [36] Additional Insights - **Scientific Presentations**: OmniUltra was showcased at the Antibody Engineering and Therapeutics Conference, highlighting its innovative capabilities [4][5] - **Confidential Programs**: Three partner programs utilizing OmniUltra technology are currently confidential, but they are generating excitement within the industry [20][21] This summary encapsulates the critical aspects of OmniAb's conference call regarding the launch of their new technology, OmniUltra, and its implications for the industry and the company's future.

OmniUltra Platform Overview - OmniUltra is the first and only transgenic chicken producing antibodies on a human framework with ultralong CDRH3s, similar to those found in cows[24] - Ultralong CDRH3s can reach binding pockets inaccessible to other antibodies, and can be cleaved to create Picobodies, the smallest functional antibody fragment[24] - OmniUltra is engineered for *in vivo* optimization, generating molecules pre-selected for function, affinity, and structural stability, potentially uncovering novel binding domains[27] - The platform leverages a transgenic chicken host to deliver biologically-optimized structured peptides, unlike phage display or other peptide discovery technologies[28] Competitive Advantages and Biological Intelligence - Antibodies generated *in vivo* are naturally optimized for specificity and developability[37] - The immune system in engineered transgenic animals creates optimized antibodies for human therapeutics, termed Biological Intelligence, increasing the efficiency and probability of success in therapeutic antibody discovery[37] - Greater evolutionary distance yields greater immunogenicity and more antibody diversity in chicken platforms[38] Epitope Coverage and Peptide Discovery - OmniUltra chickens are immunoresponsive to a variety of antigen targets[42] - Ultralong CDRH3 IgG clones bind to overlapping and novel epitopes[45] - OmniUltra can identify naturally-optimized peptide sequences that can be chemically synthesized as picobodies and retain antibody-like affinity and specificity to the immunized target[49] Market Opportunities and Expansion - The estimated total available commercial therapeutic market in 2034 is over $1 trillion, including peptides ($332 billion), bi-specifics ($460 billion), CAR-T ($224 billion), and radiopharma ($14 billion)[64] - Expansion into peptides provides an opportunity to drive service revenue and increases the potential audience of new partners by adding >130 peptide companies[66, 68]

Core Insights - OmniAb has entered into a technology license and services agreement with Mabtrx Biosciences, a subsidiary of a joint venture between ArrowMark Partners and Viking Global Investors, focusing on antibody discovery programs [1][2][3] Company Overview - OmniAb specializes in licensing advanced discovery research technology to pharmaceutical and biotech companies, enabling the identification of next-generation therapeutics [8] - The company's technology platform utilizes engineered transgenic animals to create optimized antibody candidates, claiming to have the most diverse host systems in the industry [8] Financial Aspects - Under the new agreement, OmniAb will receive revenue for services, potential equity, and royalties from the discovery of novel antibodies for targets defined by Mabtrx [2][3] Strategic Partnerships - The collaboration with ArrowMark and Viking is seen as a strategic move to leverage OmniAb's unique technologies for value creation in drug discovery [3] - ArrowMark Partners is known for its focus on niche market segments and has a history of successful biotech investments [4] - Viking Global Investors manages over $55 billion in capital and employs a long-term, research-intensive investment approach [5]

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]