OmniAb(US:OABI)2025-11-04 21:46Revenue 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].