OmniAb, Inc. Q2 FY2024 earnings call

• Continued business growth with new partnerships, potential for best year ever in new partners and licenses.
• Existing partners advancing programs in clinic, strengthening pipeline.
• Efficient operating structure and scalable business model driving growth.
• Intention to increase platform visibility via publications and technology advancement.
• Scientists published paper on OmnidAb; successful demonstration of next-gen exploration instrument's multi-site deployability.
• 83 active partners, including 2 new platform license agreements with DAAN Bio and Topaz Therapeutics.
• Partnership base grew 30% over 2 years, driven by platform validation, new tech launches, and business dev efforts.
• Active programs increased to 333, with 6 net add from Q1. Programs transitioned between stages.
• 39% growth in preclinical and later-stage programs over 2 years, totaling 50 programs with over $550M in potential milestones.
• 32 active clinical programs and approved products, with expectation of 4-6 clinical entries for novel OmniAb-derived antibodies this year.
• Wide range of antibody formats supported, with new formats like ATTENUKINE multi-specific entering clinic.
• Numerous catalysts expected for the balance of the year and 2025, including clinical readouts, starts, and regulatory events.

Total revenue for Q2 2024 was $7.6 million, compared to $6.9 million in the prior year quarter. Revenue was consistent except for higher service revenue due to acceleration from GSK's program discontinuation. R&D expense was relatively unchanged. G&A expense was $8 million vs. $8.7 million prior year, lower due to reduced share-based comp and non-recurring ERP costs. Intangibles amortization was higher due to a $1.2 million impairment. Other operating income had a $2.6 million reduction in contingent liabilities. Year-to-date operating expenses tracked close to plan, with total operating expenses in 2024 expected to be slightly less than 2023.

• Cash guidance remains unchanged.
• Milestone revenue weighted towards second half of the year.
• Total operating expenses in 2024 expected to be slightly less than 2023.
• Growth potential from 50 preclinical and later-stage programs with over $550M in potential milestones, and active antibody programs with over $3B in potential milestones.

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ from anticipated.
• Changes in partner plans or market conditions could affect milestone payments.
• Market fluctuations and prioritization exercises at big pharma could impact funding for discovery programs.

Q: Talk about the exploration platform and IP confidence given recent microfluidics litigation.

A: The exploration platform is a high-throughput B cell screening platform with unique microcapillary technology, efficient and paired with AI, and IP is unique.

Q: Appetite for discovery programs given funding and big pharma prioritization.

A: Q2 was strong in new program starts, with mix of big pharmas, startups, and academic partnerships; newer partners with solid funding are coming in more.

Q: Visibility on large downstream milestones and upcoming catalysts.

A: Some partners make public statements on Phase 2/3 starts; more visibility when programs enter clinic.

Q: Potential re-partnering of CNS assets from GSK and Roche.

A: Assets are discovery plus preclinical in CNS space, prime for re-partnering as we've done before.

Q: Economic return with startups, equity stakes vs downstream economics.

A: Open to flexible deal structures, including equity stakes, and have mix of partners with novel biology and proven teams.

Q: Revenue step-up in 2025, royalties vs milestones.

A: Milestone revenue from preclinical and clinical programs moving to next stages is primary driver; royalty potential from sugemalimab but not currently forecasted.