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 - 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 [25][26] - 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 [30][31] - Operating expenses for the full year 2024 were lower compared to 2023, with R&D expenses flat and G&A expenses decreasing [29][30] 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 [11][12] - Active programs increased by 12% year-over-year, totaling 362 active programs as of December 31, 2024 [13][14] - Over 98% of active programs have contracted future economics, positioning the company well for future value creation [14] Market Data and Key Metrics Changes - The company noted a decline in royalty revenue due to competitive dynamics in the PD-1, PD-L1 market in China, impacting product sales [28][29] - The company has seen strong interest from partners in various therapeutic areas, including oncology and CNS, with new partnerships being formed [12][74] Company Strategy and Development Direction - The company is focused on expanding its pipeline and advancing clinical programs, with expectations for 5 to 7 new clinical entrants in 2025 [15][66] - The introduction of new technologies, such as OmniDAV and OmniHub, is aimed at enhancing partnerships and driving growth [42][44] - The strategic shift from small molecules to antibodies is expected to align staffing needs and reduce operating expenses [34][35] 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 [46] - The company anticipates continued growth driven by pipeline expansion and advancements in clinical programs [24][33] - Management highlighted the importance of innovation and collaboration with partners as key competitive advantages [42][44] Other Important Information - The company exited 2024 with $59.4 million in cash, at the top end of the guidance range provided [31][32] - The 2025 revenue guidance is projected to be between $20 million and $25 million, with a significant portion of 2024 revenue being non-cash [33][34] Q&A Session Summary Question: What are the reasons behind the attrition rates? - Management clarified that attrition is primarily due to Big Pharma pipeline realignment and normal drug development processes, not technical issues [39][40] Question: Can you provide more details on new technology rollouts? - Management indicated that new technologies, including OmniDAV and OmniHub, are expected to enhance discovery and attract new partners [42][44] Question: Is there potential for additional cash deployment from partners in the current market? - Management believes the business is well-positioned to thrive in various market conditions, indicating resilience and adaptability [46] Question: Can you clarify the 2025 revenue guidance regarding cash and non-cash components? - The guidance is a GAAP number, with a significant portion of 2024 revenue being non-cash due to service revenue amortization [52][53] Question: How is the academic partner ecosystem being affected by NIH funding concerns? - Management has not seen a significant impact on academic collaborations despite concerns over NIH funding, with ongoing discussions with prospective partners [58][59] Question: Has the productive fourth quarter continued into the first quarter? - Management indicated that while trends are positive, revenue can be lumpy due to the timing of partner reports [61][62]

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 driven by new deals and clinical advancements [25][26] - 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 [30][34] - Operating expenses for 2024 were lower compared to 2023, with R&D expenses flat and G&A expenses decreasing mainly due to non-recurring costs [29][34] 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 [11] - Active programs increased by 12% year-over-year, totaling 362 programs net of attrition as of December 31, 2024 [13] - Over 98% of active programs have contracted future economics, positioning the company well for future value creation [14] Market Data and Key Metrics Changes - The company noted a decline in royalty revenue compared to the previous year, primarily due to competitive dynamics in the PD-1/PD-L1 market in China [28] - The company is observing strong interest from partners across various therapeutic areas, including oncology and immunology, with a notable increase in CNS targets [76] Company Strategy and Development Direction - The company is focused on pipeline expansion and advancement, with significant progress expected in clinical and future royalty programs [24] - New technologies and enhancements are being introduced to attract new partners and drive efficiencies, with a commitment to innovation seen as a competitive advantage [42][44] - The company aims to leverage its ecosystem of partners to analyze economic returns for technology expansion and launch options [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's plans for 2025, highlighting the resilience of the business model amid industry volatility [46] - The company anticipates several catalysts for growth in 2025, including new deals and the launch of novel technologies [24][36] - Management noted that while revenue may decrease due to non-cash components, cash received from partners is expected to increase in 2025 compared to 2024 [34] Other Important Information - The company introduced its first revenue guidance for 2025, expecting revenue in the range of $20 to $25 million [33] - The company exited 2024 with $59.4 million in cash, at the top end of the guidance range provided in the previous earnings call [25] Q&A Session Summary Question: What are the reasons behind the attrition rates observed? - Management clarified that attrition is primarily due to Big Pharma pipeline realignment and normal drug development processes, not technical issues [39][40] Question: Can you provide more details on the new technology rollouts planned for this year? - Management highlighted ongoing investments in innovation, including the launch of OmniDAV and OmniHub, which are expected to enhance partner collaboration and drive growth [42][44] Question: How does the company expect to see cash deployment from partners in the current market? - Management indicated that the business has shown resilience across various cycles, positioning it well for continued partner engagement and cash deployment [46] Question: Can you clarify the revenue guidance for 2025 regarding cash and non-cash components? - Management confirmed that the guidance is a GAAP number, with a significant portion of 2024 revenue being non-cash, particularly from service revenue amortization [52][54] Question: Is there any impact from NIH funding changes on academic partnerships? - Management noted that, despite concerns about NIH funding, they have not seen a negative impact on collaborations with academic partners [58] Question: Has the productive addition of partners continued into the first quarter of 2025? - Management indicated that while the trend is positive, the timing of reports from partners can vary, making it difficult to assess specific quarterly performance [62]