OmniAb(OABI) - 2023 Q4 - Annual Results

OmniAb 2023 Q4 and Full Year Financial and Business Highlights Overview and Business Highlights OmniAb significantly expanded its partnership base and pipeline in 2023, launching new technologies and global business development - CEO Matt Foehr highlighted 2023 as a year of significant expansion, with partners exceeding expectations by advancing six new programs into the clinic[2] - The company successfully launched two new technologies and expanded its business development function globally to the U.S., EU, and Asia Pacific[2] Financial Performance OmniAb's 2023 financial performance showed decreased revenue and increased net loss, driven by lower milestone payments and higher operating expenses Fourth Quarter 2023 Financial Results Q4 2023 revenue significantly decreased to $4.8 million from $35.3 million in Q4 2022, resulting in a net loss of $14.1 million Q4 2023 vs Q4 2022 Financials (in millions, except EPS) | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $4.8 | $35.3 | -86.4% | | R&D Expense | $14.8 | $12.9 | +14.7% | | G&A Expense | $7.9 | $10.2 | -22.5% | | Net Income (Loss) | ($14.1) | $6.8 | N/A | | Diluted EPS | ($0.14) | $0.07 | N/A | - The significant revenue decrease was primarily due to the recognition of a $25.0 million milestone payment in Q4 2022 related to the first commercial sale of TECVAYLI®[3] - The increase in R&D expense was mainly due to higher personnel costs, while the decrease in G&A expense was attributed to one-time costs in 2022 related to the company's spin-off[3] Full Year 2023 Financial Results Full year 2023 revenue declined to $34.2 million from $59.1 million in 2022, leading to a net loss of $50.6 million due to lower milestone payments and increased operating expenses Full Year 2023 vs 2022 Financials (in millions, except EPS) | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $34.2 | $59.1 | -42.1% | | R&D Expense | $56.5 | $48.4 | +16.7% | | G&A Expense | $33.3 | $24.9 | +33.7% | | Net Loss | ($50.6) | ($22.3) | +126.9% | | Diluted EPS | ($0.51) | ($0.26) | +96.2% | - The increase in R&D expense was driven by higher headcount and facility costs, while the G&A increase was due to higher personnel costs and expenses related to being an independent public company[7] Financial Condition and Guidance OmniAb concluded 2023 with $87.0 million in cash, expecting 2024 operating expenses and cash use to remain stable, with a significant reduction in cash use projected for 2025 - As of December 31, 2023, the company had cash, cash equivalents, and short-term investments of $87.0 million[8] - 2024 operating expense is expected to be approximately the same as in 2023[9] - Cash use in 2024 is expected to be similar to 2023 (excluding the $35 million TECVAYLI milestone), with a substantial decrease anticipated in 2025[10] Operational and Partner Updates OmniAb achieved significant operational milestones in 2023, including 10 new licenses, two technology launches, and pipeline growth to 325 active programs Business and Technology Updates In 2023, OmniAb signed 10 new licenses, expanded its pipeline to 325 active programs, launched OmniDeep and OmnidAb technologies, and was added to the Nasdaq Biotechnology Index 2023 Operational Metrics | Metric | Value (as of Dec 31, 2023) | | :--- | :--- | | New Licenses in 2023 | 10 | | New Clinical Entrants in 2023 | 6 | | Active Partners | 77 | | Active Programs | 325 | | Clinical/Commercialized Programs | 32 | - Launched OmniDeep™, a suite of in silico tools including AI and machine learning models to enhance therapeutic discovery and optimization[12] - Launched OmnidAb™, a transgenic chicken platform for generating single-domain antibodies with favorable developability profiles[12] - OmniAb was added to the Nasdaq Biotechnology Index (NBI), effective December 18, 2023[19] Partner Program Highlights Partners advanced OmniAb-derived antibodies, with Immunovant reporting positive batoclimab and IMVT-1402 data, Genmab planning acasunlimab Phase 3, and CStone's sugemalimab receiving NMPA approval - Batoclimab (Immunovant): Reported positive initial Phase 2 results in Graves' disease and is on track for Phase 3 data in MG (2H 2024) and TED (1H 2025)[17] - IMVT-1402 (Immunovant): Phase 1 data showed significant IgG reduction with minimal impact on albumin and LDL-C, supporting its potential as a best-in-class FcRn inhibitor[17] - Acasunlimab (Genmab): Plans to initiate a Phase 3 study in second-line NSCLC in 2024[17] - Sugemalimab (CStone): Approved by China's NMPA for first-line treatment of esophageal squamous cell carcinoma, becoming the world's first anti-PD-L1 mAb for this indication[19] Financial Statements OmniAb's consolidated financial statements reveal a decrease in total assets to $375.2 million in 2023 and an increased net loss for both Q4 and the full year Consolidated and Combined Balance Sheets OmniAb's total assets decreased to $375.2 million by December 31, 2023, driven by lower cash and receivables, with total liabilities and stockholders' equity also declining Balance Sheet Summary (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash, cash equivalents & short-term investments | $86,983 | $88,265 | | Total current assets | $94,901 | $124,950 | | Total assets | $375,225 | $421,212 | | Total current liabilities | $23,116 | $26,022 | | Total liabilities | $60,640 | $79,839 | | Total stockholders' equity | $314,585 | $341,373 | Consolidated and Combined Statements of Operations For full year 2023, OmniAb reported total revenues of $34.2 million and a net loss of $50.6 million, or $0.51 per share, due to operating expenses of $103.6 million Statement of Operations Summary - Full Year (in thousands) | Account | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | License and milestone revenue | $20,699 | $38,926 | | Service revenue | $12,180 | $18,784 | | Total revenues | $34,164 | $59,077 | | Research and development | $56,525 | $48,364 | | General and administrative | $33,313 | $24,903 | | Total operating expenses | $103,583 | $85,725 | | Loss from operations | ($69,419) | ($26,648) | | Net loss | ($50,619) | ($22,334) |