OmniAb(OABI) - 2025 Q2 - Quarterly Results

Company Overview CEO Commentary CEO Matt Foehr highlighted strong business performance, reaching 100 active partners, and the launch of the xPloration Partner Access Program, emphasizing innovation, scalability, and potential for revenue diversification - Reached 100 active partners in Q2 2025, indicating strong momentum and execution[2] - Streamlining operations enhances scalability and long-term value of the business[2] - Launched the xPloration Partner Access Program to expand and diversify revenue streams[2] About OmniAb OmniAb licenses cutting-edge discovery research technology, including its Biological Intelligence™ platform and proprietary transgenic animals, to pharmaceutical and biotech companies for next-generation therapeutics. Its business model includes upfront/access fees, service revenue, milestones, and royalties - OmniAb licenses discovery research technology to pharmaceutical, biotech, and academic institutions to enable the discovery of next-generation therapeutics[25] - The core platform, Biological Intelligence™, powers engineered transgenic animals to create optimized antibody candidates for human therapeutics[25] - Business model aligns scientific and economic interests through structured agreements including upfront/access fees, service revenue, milestones, and royalties on commercial sales[25] Financial Performance Second Quarter 2025 Financial Results OmniAb reported Q2 2025 revenue of $3.9 million, a decrease from $7.6 million for the same period in 2024, primarily due to declines in license, milestone, and service revenue, partially offset by new xPloration revenue. Net loss increased to $15.9 million from $13.6 million year-over-year | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :----------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenue | $3,897 | $7,614 | -48.8% | | License & Milestone Revenue | $1,242 | $3,125 | -60.3% | | Service Revenue | $1,936 | $4,171 | -53.6% | | xPloration Revenue | $608 | $0 | N/A | | Royalty Revenue | $111 | $318 | -65.1% | | Net Loss | $(15,875) | $(13,631) | +16.5% | | Net Loss Per Share | $(0.15) | $(0.13) | +15.4% | - Decrease in license and milestone revenue primarily due to a $1.8 million decline in milestone revenue[3] - Research and development expense decreased to $10.9 million from $13.9 million, mainly due to lower share-based compensation, reduced headcount, and lower external expenses for small-molecule ion channel programs[4] - Cash use in the second quarter of 2025 was $2.0 million[6] Year-to-Date 2025 Financial Results For the first half of 2025, OmniAb's revenue was $8.1 million, down from $11.4 million in the same period of 2024, driven by declines in milestone and service revenue, partially offset by xPloration revenue. Net loss for the period was $34.1 million, compared to $32.6 million in H1 2024 | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :----------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenue | $8,051 | $11,415 | -29.5% | | License & Milestone Revenue | $3,263 | $3,841 | -15.0% | | Service Revenue | $3,839 | $6,937 | -44.7% | | xPloration Revenue | $650 | $0 | N/A | | Royalty Revenue | $299 | $637 | -53.1% | | Net Loss | $(34,075) | $(32,592) | +4.5% | | Net Loss Per Share | $(0.32) | $(0.32) | 0.0% | - Research and development expense decreased to $23.5 million from $28.5 million, primarily due to lower share-based compensation, reduced headcount, and lower external expenses associated with small-molecule ion channel programs and screening technology development[8] - As of June 30, 2025, OmniAb had cash, cash equivalents and short-term investments of $41.6 million[9] 2025 Financial Guidance OmniAb affirmed its 2025 revenue guidance of $20 million to $25 million and costs and operating expense guidance of $85 million to $90 million. The company expects lower cash use in 2025 compared to $38.9 million in 2024 (excluding ATM issuance) | Metric | 2025 Guidance | 2024 Actual (for comparison) | | :-------------------------- | :-------------------- | :--------------------------- | | Revenue | $20M - $25M | N/A | | Costs & Operating Expense | $85M - $90M | N/A | | Cash Use | Lower than 2024 | $38.9M (excl. ATM issuance) | | Full Year Effective Tax Rate | ~0% | N/A | Business and Partner Highlights Strategic Initiatives and Partner Growth OmniAb continued strong partner growth in Q2 2025, adding six new license agreements and one asset-based sale, bringing the total active partners to 100. The company also launched the xPloration Partner Access Program, a high-throughput single B-cell screening instrument leveraging AI and machine learning - Entered into six new license agreements and one asset-based sale during the second quarter of 2025[11] - As of June 30, 2025, the Company had 100 active partners and 381 active programs, including 32 OmniAb-derived programs in clinical development or being commercialized[12] - The asset-based sale with Angelini Pharma for the small molecule Kv7.2 program included an upfront payment of $3 million and potential milestones of over $170 million and royalties[11] Key Program Updates OmniAb's partners reported significant progress across various programs, including clinical trial advancements, regulatory designations, and strategic partnerships for several therapeutic candidates xPloration OmniAb launched the xPloration Partner Access Program, a high-throughput single B-cell screening instrument leveraging AI and machine learning, which was awarded "2025 Best of Show" at the PEGS Boston Conference and Expo - OmniAb launched the xPloration Partner Access Program in May, a high-throughput single B-cell screening instrument[18] - xPloration leverages machine learning and artificial intelligence to address challenges in primary B-cell screening, offering unmatched throughput, superior hit recovery, and exceptional ease-of-use[18] - xPloration was awarded '2025 Best of Show' at the 21st Annual PEGS Boston Conference and Expo[18] IMVT-1402 Immunovant initiated recruitment for a Phase 3 study of IMVT-1402 in generalized myasthenia gravis and is enrolling patients in potentially registrational trials for chronic inflammatory demyelinating polyneuropathy, Graves' disease, rheumatoid arthritis, and Sjogren's disease, with a new proof-of-concept study in cutaneous lupus erythematosus - Immunovant started recruitment for a randomized, placebo-controlled, double-blind Phase 3 study to assess the efficacy and safety of IMVT-1402 in patients with mild-to-severe generalized myasthenia gravis[18] - Immunovant is also enrolling patients in potentially registrational trials of IMVT-1402 in chronic inflammatory demyelinating polyneuropathy, Graves' disease, difficult-to-treat rheumatoid arthritis and Sjogren's disease[18] - A proof-of-concept study has been initiated for IMVT-1402 in a sixth indication, cutaneous lupus erythematosus[18] TEV-53408 Teva Pharmaceutical received FDA Fast Track designation for investigational TEV-53408, an anti-IL15 antibody, for the treatment of celiac disease. It is currently in Phase 2a and Phase 1 clinical trials for celiac disease and vitiligo, respectively - Teva Pharmaceutical announced that the U.S. FDA granted Fast Track designation for investigational TEV-53408, an anti-IL15 antibody, for the treatment of people with celiac disease on a gluten-free diet[15] - TEV-53408 is currently being evaluated in Phase 2a and Phase 1 clinical trials to assess efficacy and safety in adults with celiac disease and vitiligo, respectively[15] TEV-56278 Teva Pharmaceutical and Shanghai Fosun Pharmaceutical formed a strategic partnership for the development of investigational TEV-56278, an anti-PD1-IL2 ATTENUKINE therapy, which offers a new mechanism of action for oncology indications - Teva Pharmaceutical and Shanghai Fosun Pharmaceutical entered into a strategic partnership for the development of investigational TEV-56278, an anti-PD1-IL2 ATTENUKINE therapy[16] - Teva's proprietary ATTENUKINE technology provides a new mechanism of action, potentially offering high efficacy and low toxicity in a broad array of oncology indications[16] JNJ-5322 Johnson & Johnson presented initial Phase 1 results for JNJ-5322, a next-generation trispecific T-cell redirecting antibody, showing a 100% overall response rate at the recommended Phase 2 dose in anti-BCMA/-GPRC5D naïve multiple myeloma patients, suggesting a potential paradigm shift as an off-the-shelf therapy - Johnson & Johnson presented initial Phase 1 results of JNJ-5322, a next-generation trispecific T-cell redirecting antibody, in patients with relapsed or refractory multiple myeloma[17] - JNJ-5322 demonstrated a 100% overall response rate (ORR) at the recommended Phase 2 dose of 100 mg in anti-BCMA/-GPRC5D naïve patients[17] - Initial data with JNJ-5322 suggest a paradigm shift, offering ORRs similar to CAR-Ts but as an off-the-shelf therapy intended for outpatient dosing[17] M9140 Merck KGaA presented promising Phase 1 data for M9140, a novel antibody-drug conjugate, in metastatic colorectal cancer (mCRC), showing a 31% ORR and 6.9 months mPFS, comparing favorably to current standard of care. A Phase 1b/2 study design for M9140 in various solid tumors was also presented - Merck KGaA presented data on M9140, a novel antibody-drug conjugate, in the Phase 1 PROCEADE-CRC-01 study for metastatic colorectal cancer (mCRC)[24] - M9140 showed a 31% ORR (17.2% confirmed) and median progression-free survival (mPFS) of 6.9 months at 2.8 mg/kg, comparing favorably with current monotherapy standard of care in 3L+ mCRC[24] - Merck KGaA also presented the PROCEADE PanTumor Phase 1b/2 clinical trial study design, assessing M9140 as monotherapy or in combination for advanced/metastatic gastric cancer, NSCLC, and pancreatic adenocarcinoma[24] Sugemalimab CStone Pharmaceuticals published long-term survival data for sugemalimab in The Lancet Oncology from its Phase 3 GEMSTONE-302 trial for NSCLC. CStone also partnered with Istituto Gentili for sugemalimab's commercialization across Western Europe and the UK - CStone Pharmaceuticals announced the publication of long-term survival data from its Phase 3 GEMSTONE-302 trial for sugemalimab combined with platinum-based chemotherapy as a first-line treatment for NSCLC in The Lancet Oncology[24] - This marks the trial's third publication in a top-tier journal[24] - CStone Pharmaceuticals also announced an exclusive partnership with Istituto Gentili to commercialize sugemalimab across Western Europe and the UK[24] BC3195 BioCity presented data on BC3195, a first-in-human antibody-drug conjugate targeting CDH3, demonstrating a manageable safety profile, favorable pharmacokinetics, and impressive preliminary antitumor activity with a 50% ORR in heavily pretreated NSCLC patients - BioCity presented data on BC3195, a first-in-human antibody-drug conjugate targeting CDH3, at the ASCO Annual Meeting[21] - BC3195 demonstrated a manageable safety profile and favorable pharmacokinetics[21] - Achieved an impressive preliminary antitumor activity with an ORR of 50% in heavily pretreated NSCLC patients, most of whom had EGFR mutations[21] Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, OmniAb reported total assets of $295.7 million, a decrease from $325.6 million at December 31, 2024. Current assets, particularly cash and short-term investments, saw a notable decline. Total liabilities also decreased, while stockholders' equity decreased from $287.6 million to $262.1 million | Asset/Liability/Equity | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | | :-------------------------------- | :--------------------------- | :-------------------------- | :----- | | ASSETS | | | | | Cash and cash equivalents | $18,281 | $27,598 | $(9,317) | | Short-term investments | $23,334 | $31,836 | $(8,502) | | Total current assets | $47,618 | $68,138 | $(20,520) | | Total assets | $295,674 | $325,558 | $(29,884) | | LIABILITIES | | | | | Total current liabilities | $12,638 | $15,088 | $(2,450) | | Total liabilities | $33,610 | $37,940 | $(4,330) | | STOCKHOLDERS' EQUITY | | | | | Total stockholders' equity | $262,064 | $287,618 | $(25,554) | Condensed Consolidated Statements of Operations For Q2 2025, OmniAb reported a net loss of $15.9 million on $3.9 million revenue. Year-to-date, the net loss was $34.1 million on $8.1 million revenue. Revenue declined significantly year-over-year for both periods, while operating expenses saw some reductions, particularly in R&D | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Total Revenue | $3,897 | $7,614 | $8,051 | $11,415 | | Cost of xPloration revenue | $262 | $0 | $265 | $0 | | Research and development | $10,864 | $13,935 | $23,466 | $28,486 | | General and administrative | $7,684 | $7,965 | $15,599 | $16,302 | | Loss from operations | $(16,219) | $(16,305) | $(35,063) | $(38,858) | | Net loss | $(15,875) | $(13,631) | $(34,075) | $(32,592) | | Net loss per share | $(0.15) | $(0.13) | $(0.32) | $(0.32) | Supplementary Information Conference Call and Webcast Details OmniAb management was scheduled to host a conference call with accompanying slides on August 6, 2025, at 4:30 p.m. Eastern Time to discuss the announcement - OmniAb management hosted a conference call with accompanying slides on August 6, 2025, at 4:30 p.m. Eastern time[22] - Slides, as well as the live and replay webcast, are available at https://investors.omniab.com/investors/events-and-presentations/default.aspx[22](index=22&type=chunk) Forward-Looking Statements The press release contains forward-looking statements based on current beliefs and expectations, subject to various risks and uncertainties inherent in OmniAb's business, including dependence on partner acceptance, biopharmaceutical development uncertainties, technological changes, and competitive environment - Forward-looking statements include those regarding competitive advantage, business growth, scalability, xPloration program performance, partner additions, and 2025 financial guidance[27] - Actual results may differ due to risks such as dependence on partner acceptance and development, biopharmaceutical development uncertainties, and the competitive environment in the life sciences and biotechnology platform market[27] - Readers are cautioned not to place undue reliance on these statements, which speak only as of the date of the release[27] Partner Information and Contacts Information regarding partnered products and programs is sourced from publicly released partner information. Contact details for OmniAb investor relations are provided - Information in this press release regarding partnered products and programs comes from information publicly released by OmniAb's partners[28] - Contact information for OmniAb, Inc. investors and Alliance Advisors IR is provided[28]