Q1 2025 Financial Results & Business Update Nasdaq: OABI May 8, 2025 1 Disclaimer 2 Information regarding partnered products and programs comes from reports or information publicly released by our partners and have not been independently verified by OmniAb. For our definitions of "active partners," "active programs," "active clinical programs and approved products" and "approved products", see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on For ...

Company Performance - OmniAb, Inc. reported a quarterly loss of $0.17 per share, which aligns with the Zacks Consensus Estimate, and is an improvement from a loss of $0.19 per share a year ago [1] - The company posted revenues of $4.15 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 11.50%, but showing an increase from $3.8 million in the same quarter last year [2] - Over the last four quarters, OmniAb has surpassed consensus EPS estimates two times and has also topped consensus revenue estimates two times [2][3] Stock Performance - OmniAb shares have declined approximately 56.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $5.55 million, and for the current fiscal year, it is -$0.62 on revenues of $24.17 million [7] - The outlook for the Medical - Drugs industry, to which OmniAb belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

OmniAb (OABI) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Kurt Gustafson - CFOMatthew Foehr - President & CEOBob Chen - VP of Discovery SystemsMichael Sonntag - Life Science Tools & DiagnosticsAlex Nackenoff - Biotech Equity Research AssociateJacqueline Kisa - Equity Research AssociateNone - Executive Conference Call Participants Joseph Pantginis - MD & Senior Healthcare AnalystNone - AnalystTollef Kohrman - Associate Analyst Operator Good afternoon, and welcome to OmniAb, Inc. First ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased to $4.2 million from $3.8 million in Q1 2024, primarily due to higher milestone revenue from GENmAb's clinical program [24] - Operating expenses decreased to $23 million from $26.4 million year-over-year, with R&D expenses down to $12.6 million from $14.6 million [25] - Net loss for Q1 2025 was $18.2 million or $0.17 per share, compared to a net loss of $19 million or $0.19 per share in Q1 2024 [26] Business Line Data and Key Metrics Changes - The number of active partners grew to 95, with new deals signed with Harvard's Weiss Institute, Takis Biotech, and Orion Corporation [9] - Total active programs increased to 378, with 33 active clinical programs and approved products as of the end of Q1 [10][11] - The company expects 5 to 7 new entries into clinical development for the year [11] Market Data and Key Metrics Changes - The exploration partner access program was launched, allowing partners to purchase exploration instruments for their labs, indicating a strategic move to enhance partner offerings [7][15] - The company anticipates that the exploration program will create new revenue streams and enhance partner workflows [21][46] Company Strategy and Development Direction - The company remains focused on driving innovation in drug discovery and enhancing its technology offerings [7][8] - The launch of the exploration partner access program is seen as a strategic enhancement to the existing offerings, aimed at creating long-term value for stakeholders [22] - The company is committed to growing its business with a focus on value creation and long-term profitability [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to 2025, with continued deal flow and a growing pipeline of partnered programs [6] - The company noted that the FDA's recent announcement regarding animal testing could streamline the entry of antibody-based medicines into the clinic, potentially benefiting the industry [68] Other Important Information - The company implemented a reduction in force in early February, resulting in an additional cash outlay of approximately $1 million in Q1, but expects lower expenses going forward [27] - The guidance for 2025 revenue remains between $20 million and $25 million, excluding contributions from the exploration program [28] Q&A Session Summary Question: What trends contributed to the strong number of program starts this quarter? - Management attributed the strong program starts to continued innovation and the launch of new technologies, with existing partners also starting new programs [32] Question: Is the exploration platform exclusively for existing partners? - Yes, the exploration partner access program is available only to partners within the OmniAb ecosystem [35] Question: What are the potential revenue opportunities from the exploration program? - Management indicated that while specific numbers are difficult to predict, early feedback from partners has been positive, and the program is expected to create new revenue streams [40][46] Question: How does the FDA's decision to move away from animal testing impact the business? - Management clarified that the FDA's announcement is separate from their offerings, but it could facilitate faster entry of antibody-based medicines into the clinic, which is seen as a potential benefit [68] Question: Will there be additional AI-driven platform offerings for customers? - Management confirmed that there are ongoing efforts to build out additional computational and AI-driven offerings, leveraging the data generated from the exploration platform [72]

Financial Data and Key Metrics Changes - Revenue increased to $4.2 million in Q1 2025 from $3.8 million in Q1 2024, primarily due to higher milestone revenue from GenmAb's clinical program [24] - Operating expenses decreased to $23 million from $26.4 million year-over-year, with R&D expenses down to $12.6 million from $14.6 million [25] - Net loss for Q1 2025 was $18.2 million or $0.17 per share, compared to a net loss of $19 million or $0.19 per share in Q1 2024 [26] Business Line Data and Key Metrics Changes - The number of active partners grew to 95, with new deals signed with Harvard's Weiss Institute, Takis Biotech, and Orion Corporation [8] - Total active programs increased to 378, with 33 active clinical programs and approved products as of the end of Q1 [10] Market Data and Key Metrics Changes - The company expects to receive a $3 million upfront payment from Angelini Pharma, with potential milestones exceeding $170 million [9] - The portfolio of post-discovery stage assets has increased by over 39% in the last two years [11] Company Strategy and Development Direction - The launch of the exploration partner access program aims to enhance partner workflows and create new revenue streams [14][21] - The company remains focused on licensing novel discovery technology to the pharmaceutical industry, which is the foundation of its strategy [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong deal flow and the robustness of new partnerships despite broader industry challenges [5] - The company anticipates that the exploration program will be accretive to earnings and cash flow in both the short and long term [23] Other Important Information - The company implemented a reduction in force in early February, resulting in an additional cash outlay of approximately $1 million in Q1 [27] - Guidance for 2025 revenue remains between $20 million and $25 million, excluding contributions from the exploration program [28] Q&A Session Summary Question: What attributed to the strong number of program starts this quarter? - Management noted that continued innovation and the launch of new technologies have driven interest from both new and existing partners [30][31] Question: Is the exploration platform exclusively for existing partners? - Yes, the exploration partner access program is available only to partners within the OmniAb ecosystem [35] Question: Can you provide any benchmarks for potential partners for the exploration program? - Management indicated that while it is difficult to provide exact numbers, they have deep relationships with partners and are targeting those most likely to benefit from the exploration instruments [42] Question: What are the key differentiators of the exploration platform? - Key differentiators include ease of use, high efficiency, and the absence of fluidics, which reduces maintenance issues [48] Question: How do tariffs impact the business? - Management stated that there are minimal impacts from tariffs as the exploration instrument and most parts are manufactured in the U.S. [51] Question: Will new partners also have access to the exploration platform? - Yes, new partners will have access to the exploration platform as they sign up [58]

Financial Performance - License and milestone revenue for the three months ended March 31, 2025, was $2,021,000, a 182% increase from $716,000 in the same period of 2024[120] - Total revenue for the three months ended March 31, 2025, was $4,154,000, reflecting a 9% increase from $3,801,000 in the prior year[120] - The company reported a net loss of $18,200,000 for the three months ended March 31, 2025, compared to a net loss of $18,961,000 in the same period of 2024, representing a 4% improvement[125] - Royalty revenue for the three months ended March 31, 2025, was $188,000, a decline of 41% from $319,000 in the same period of 2024[120] - Service revenue decreased by 30% to $1,945,000 for the three months ended March 31, 2025, down from $2,766,000 in 2024, primarily due to the discontinuation of certain research programs[120] Expenses and Cost Management - Research and development expenses decreased by 13% to $12,602,000 for the three months ended March 31, 2025, down from $14,551,000 in 2024[122] - Total operating expenses for the three months ended March 31, 2025, were $22,998,000, a decrease of 13% from $26,354,000 in the prior year[122] Cash Flow and Liquidity - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $43.6 million, sufficient to support operations for at least the next 12 months[128] - For the three months ended March 31, 2025, the company reported a net cash used in operating activities of $15.9 million, reflecting a net loss of $18.2 million[135] - Cash used in investing activities for the three months ended March 31, 2025, was primarily $10.3 million for purchasing short-term investments, offset by $9.5 million from the maturity of short-term investments[137] - Cash provided by financing activities was negligible for the three months ended March 31, 2025, compared to a cash outflow of $0.2 million in the same period of 2024[139] - The company reported a decrease in cash used in operating activities from $17.0 million in Q1 2024 to $15.9 million in Q1 2025, indicating a slight improvement[134] Taxation - The effective tax rate for the three months ended March 31, 2025, was (0.6)%, a significant decrease from (12.1)% in the prior year[125] - The company’s effective tax rate for the three months ended March 31, 2025, was affected by share-based compensation expenses and an increase in valuation allowance against deferred tax assets[127] Business Development - As of March 31, 2025, the company had 95 active partners and 378 active programs using the OmniAb technology platform, an increase from 91 partners and 363 programs as of December 31, 2024[108][115] - The company had 33 approved products as of March 31, 2025, an increase from 32 approved products as of December 31, 2024[115] - The company anticipates receiving up to $218.6 million from the exercise of warrants, although they are currently "out of the money" with a trading price below the $11.50 exercise price[131] - The company entered into an Open Market Sale Agreement allowing for the sale of up to $100.0 million in common stock, with $88.3 million remaining available for future sales as of March 31, 2025[130] Future Outlook - The company’s future capital requirements will depend on various factors, including revenue growth, operational expansion costs, and research and development expenses[133] - The company has not experienced material changes in market risks as of March 31, 2025, compared to the previous year[142]

Revenue Performance - Revenue for Q1 2025 was $4.2 million, up from $3.8 million in Q1 2024, primarily due to a $1.0 million Phase 1 milestone payment and higher license fees[3] - Total revenue for Q1 2025 was $4,154,000, representing a 9.3% increase from $3,801,000 in Q1 2024[30] - License and milestone revenue increased significantly to $2,021,000, up 182.5% from $716,000 in the same period last year[30] - 2025 revenue guidance is affirmed at $20 million to $25 million, with revised operating expense guidance of $85 million to $90 million[7] Expenses and Losses - Research and development expenses decreased to $12.6 million in Q1 2025 from $14.6 million in Q1 2024, attributed to lower share-based compensation and external expenses[4] - Total operating expenses decreased to $22,998,000, down 12.5% from $26,354,000 in Q1 2024[30] - Net loss for Q1 2025 was $18.2 million, or $0.17 per share, compared to a net loss of $19.0 million, or $0.19 per share, in Q1 2024[5] - Net loss for Q1 2025 was $18,200,000, a slight improvement compared to a net loss of $18,961,000 in Q1 2024[30] Cash and Assets - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled $43.6 million[6] - Cash and cash equivalents decreased to $10,892,000 from $27,598,000 at the end of 2024, a decline of 60.5%[28] - Total assets decreased to $306,182,000 from $325,558,000, reflecting a reduction of 5.9%[28] - Stockholders' equity decreased to $273,516,000 from $287,618,000, a decline of 4.9%[28] Partnerships and Collaborations - OmniAb entered into three new platform license agreements during Q1 2025, including with the Wyss Institute at Harvard University[8] - A research collaboration with Orion Corporation includes an upfront payment of $250,000 and potential milestone payments exceeding $55 million[9] - An asset-based sale with Angelini Pharma includes an upfront payment of $3 million and potential milestones exceeding $170 million[10] - The company had 95 active partners and 378 active programs as of March 31, 2025, including 33 programs in clinical development[10] Programs and Initiatives - OmniAb launched the xPloration Partner Access Program, enhancing scalability and creating new business opportunities[11] - Research and development expenses were $12,602,000, down 13.4% from $14,551,000 in Q1 2024[30] - The weighted-average shares outstanding increased to 105,622,000 from 100,755,000, an increase of 4.3%[30] - The company reported an income tax benefit of $106,000 compared to $2,617,000 in Q1 2024[30]

Core Insights - VERAXA Biotech AG has announced a co-discovery alliance with OmniAb, Inc. to develop a novel bispecific antibody drug conjugate (bsADC) program targeting solid tumors, combining their respective technologies for enhanced therapeutic discovery [1][2] - The collaboration is part of VERAXA's strategy to drive innovation through strategic partnerships, marking its second major initiative in six months [2] - Under the agreement, VERAXA will utilize OmniAb's transgenic antibody discovery solutions to source high-quality human antibody leads and will be responsible for preclinical validation of the bsADC lead candidate [2] Company Overview - VERAXA is focused on the discovery and development of next-generation antibody-based therapeutics, including bispecific ADCs and other innovative formats, leveraging transformative technologies and quality-by-design principles [3] - The company was founded on scientific breakthroughs from the European Molecular Biology Laboratory, emphasizing its commitment to pioneering life science research [3] Business Combination - On April 22, 2025, VERAXA entered into a definitive business combination agreement with Voyager Acquisition Corp., which is expected to lead to VERAXA becoming a publicly traded company on NASDAQ [4] - Voyager Acquisition Corp. aims to revolutionize the healthcare sector through strategic mergers and business combinations, supported by a team with extensive expertise in investing and medical innovation [5]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased significantly to $10.8 million from $4.8 million in Q4 2023, primarily due to higher license and milestone revenue [38] - Full year net loss for 2024 was $62 million or $0.61 per share, compared to a net loss of $50.6 million or $0.51 per share in 2023 [45][46] - The company exited 2024 with $59.4 million in cash, at the top end of the guidance range provided [48] Business Line Data and Key Metrics Changes - The number of active partners grew by 18% year-over-year, reaching 91 active partners as of December 31, 2024 [14] - Active programs increased by 12% year-over-year to 362, with 69 new program additions in 2024 [16] - Over 98% of active programs have contracted future economics, positioning the company well for future value creation [18] Market Data and Key Metrics Changes - The company noted a decline in service revenue due to the completion of certain small molecule ion channel programs, slightly offset by an increase in antibody discovery service revenue [44] - Royalty revenue decreased compared to the prior year, primarily due to competitive dynamics in the PD-1, PD-L1 market in China [45] Company Strategy and Development Direction - The company is focused on expanding its pipeline and advancing clinical and royalty programs, with expectations for several new deals and technology launches in 2025 [35] - The introduction of new technologies, such as OmniDeep and OmniHub, is aimed at enhancing workflows and attracting new partners [69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to perform well in various market cycles, emphasizing the scalability and flexibility of their platforms [73] - The company anticipates 2025 revenue to be in the range of $20 million to $25 million, with a significant portion of the revenue in 2024 being non-cash [51][52] Other Important Information - The company has made a strategic shift from small molecules to antibodies, resulting in an impairment charge of $2.7 million [41] - The company expects total operating expenses in 2025 to be in the range of $90 million to $95 million, with a focus on reducing non-cash expenses [55] Q&A Session Summary Question: What are the reasons for attrition rates in clinical development? - Management clarified that attrition is primarily due to big pharma pipeline realignment and normal drug development processes, not technical issues [60][61] Question: Can you provide more details on new technology rollouts? - Management highlighted ongoing investments in innovation, including the launch of OmniDeep and OmniHub, which are expected to enhance partner collaboration and drive growth [66][69] Question: Is there a push for additional pipeline development in volatile markets? - Management indicated that the business has been resilient and well-positioned to adapt to various market conditions, with scalable technologies that can be utilized flexibly [73][74] Question: Can you clarify the $20 million to $25 million revenue guidance? - The guidance is a GAAP number, with a significant portion of 2024 revenue being non-cash, particularly from deferred service revenue [82][84] Question: How is the academic partner ecosystem responding to NIH funding changes? - Management noted that while there are concerns about NIH funding, current collaborations with academic partners remain strong, with new partnerships being formed [88][89] Question: Has the productive fourth quarter continued into the first quarter? - Management suggested that while trends are positive, revenue can be lumpy and should not be over-interpreted based on a single quarter [92] Question: What is the downstream economics related to Sugemalimab? - The royalties for Sugemalimab are 3% globally, and while the guidance includes revenue from milestones and royalties, there is limited insight into future sales [117]

Core Viewpoint - OmniAb, Inc. reported a quarterly loss of $0.12 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.13, and improved from a loss of $0.14 per share a year ago, indicating a positive earnings surprise of 7.69% [1] Financial Performance - The company posted revenues of $10.8 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 18.21%, and showing significant growth from $4.82 million in the same quarter last year [2] - Over the last four quarters, OmniAb has surpassed consensus EPS estimates two times and has also topped consensus revenue estimates two times [2] Stock Performance - OmniAb shares have declined approximately 10.5% since the beginning of the year, compared to a decline of 3.5% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $6.16 million, and for the current fiscal year, it is -$0.46 on revenues of $47.55 million [7] Industry Outlook - The Medical - Drugs industry, to which OmniAb belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]