OmniAb, Inc. Q3 FY2024 earnings call

• Partner Count: Ended Q3 with 86 active partners; signed three new platform license agreements during the quarter, including with 92Bio, Memorial Sloan Kettering Cancer Center, and Queen Mary University of London. • Active Programs: As of September 30, active programs increased to 352 net of attrition; 33 active clinical programs and approved products; 3 new OmniAb-derived programs entered human clinical trials in 2024, with expectation of 1-3 additional entries into clinical development by year end. • Post-Discovery Assets: Over the past two years, there's a 40% increase in the number of post-discovery programs, reaching 53 by end of Q3, with over $550 million in contracted potential milestones. • Partner Updates: Immunovant made progress on IMVT-1402; Genmab and Merck KGaA had program advancements; BioCity and Teva had updates on their programs. • Upcoming Conferences: Will present at Antibody Engineering and Therapeutics Conference, launching OmniHub platform for bioinformatics tools.

Total revenue for the third quarter of 2024 was $4.2 million, down from $5.5 million in the prior year quarter. The decrease was primarily due to lower milestone revenue and lower ion channel service revenue. R&D expense for Q3 2024 was $13.3 million compared to $13.9 million in the prior year quarter, with the decrease primarily due to lower stock-based compensation expense. G&A expense was $7.1 million for the quarter compared to $8.5 million a year ago, with the decrease primarily due to lower legal costs and lower stock-based compensation. The net loss for the third quarter of 2024 was $16.4 million or $0.16 per share versus a net loss of $15.7 million or $0.16 per share in the prior year period. As of September 30, 2024, the company ended the third quarter with $59.4 million in cash. They expect to end 2024 with a cash balance in the range of $50 million to $60 million and anticipate cash used in 2025 will be lower than in 2024 excluding the recent ATM program proceeds.

• Cash balance expected to end 2024 in the range of $50 million to $60 million, including proceeds from recent ATM issuance. • Anticipate cash used in 2025 will be lower than in 2024 excluding the recent ATM program proceeds.

• Pressure on the biopharmaceutical industry leading to restructurings and pipeline reprioritizations, creating volatility in the business.

Q: Given the large step-up in the number of active programs, how much is from macro recovery in biopharma vs. company gaining share or expanding in certain geographies?

A: Matt Foehr mentioned it's a combination; new technologies like OmnidAb (transgenic chicken producing single-domain antibodies) driving new starts, and validation of the platform.

Q: Hearing about biotech being more cautious with investments, are you seeing anything like that?

A: Kurt Gustafson said they're seeing macro and industry forces causing volatility, but key metrics like new deals, partners valuing technology, and program progression are still positive.

Q: How to think about range of new clinical entries by partners next year?

A: Matt Foehr said expect 1-3 additional clinical entries by end of 2024, and post-discovery assets with 20 preclinical programs are candidates for 2025, with JPMorgan conference in Jan being a time for more specifics.

Q: Proportion of new program starts that are multispecific, and types of targets?

A: Matt Foehr said there's an increase in multispecifics, with interest growing, and more diversification in therapy areas including neuroscience and oncology.

Q: Blended royalty rate of post-discovery program portfolio and comparison to Immunovant 1402 asset?

A: Kurt Gustafson said no update on blended royalty rate, but it's likely not much different from previous number; Immunovant's program has a different structure but royalty rate is in low to mid-single digits.

Q: Beta testing for OmniHub and cloud providers?

A: Matt Foehr said they interact digitally with partners, and it's more homegrown currently.

Q: Color on three new licenses regarding therapeutic interest, program size, and platforms used?

A: Matt Foehr said 92Bio is focused on cancer multi-specific antibodies; Memorial Sloan Kettering Cancer Center is focused on cancer targets; Queen Mary University of London is focused on cancer prevention, diagnostics, and theranostics, using various OmniAb technologies.

Q: Development on single-domain antibodies and adoption of OmniChicken?

A: Matt Foehr said OmnidAb technology launched a year ago is attracting new partners, opening possibilities in CNS, radiotherapy, infectious diseases, with various routes of administration and penetration abilities.

Q: ATM raise and its relation to revenue pushout?

A: Kurt Gustafson said it's more about having a cushion on the balance sheet for future cycles rather than covering specific shortfalls in revenue timing.