OmniAb, Inc. Q2 FY2025 earnings call

• Strong deal flow continued in Q2 2025 with new partners added, including an asset deal with Angelini Pharma and multiple license agreements. - Partners are actively advancing programs into human trials, with a new clinical stage program in Q2 and others progressing. - The xPloration Partner Access Program launched successfully, with strong response, selling and installing an xPloration system and having a robust pipeline of leads. - Headcount was reduced to 87 from 114, with onetime expenses expected from recent reduction. - Ended Q2 with 100 active partners, 381 active programs, and 32 active clinical programs/approved products. - Post-discovery stage programs grew 22% year-over-year, with $1.3 billion in contracted milestones, and clinical programs included new entries and some attrition.

In the second quarter of 2025, OmniAb reported revenue of $3.9 million, down from $7.6 million in the same period of 2024. The decrease was primarily due to lower milestones and service revenue, partially offset by xPloration revenue. Cost and operating expenses decreased to $20.1 million from $23.9 million in the prior year. Research and development expense was $10.9 million vs $13.9 million a year ago, and G&A expense declined to $7.7 million from $8 million. The net loss for Q2 2025 was $15.9 million or $0.15 per share, compared to a net loss of $13.6 million or $0.13 per share in 2024. The xPloration Partner Access Program contributed to revenue with the sale of instruments and consumables.

• 2025 revenue is expected to be between $20 million and $25 million. - Operating expense is expected to be between $85 million and $90 million. - Cash used in 2025 is expected to be lower than in 2024. - Tax rate remains approximately 0% due to a valuation allowance.

• Attrition is a natural part of drug development, influenced by factors like partner therapy area focusing and budget decisions. - Market uncertainties could impact deal flow and milestone revenue. - Dependence on successful execution of new technology launches such as xPloration and upcoming ones.

Q: Thoughts on large pharma vs small biotech trends affecting discovery?

A: Matt Foehr stated there's continued growth in both partners and programs, with contributions from both large pharma and small biotech.

Q: Timeline for existing partners joining the xPloration Access Program?

A: Kurt Gustafson explained that non-partners interested in xPloration would go through license discussions to become partners and then purchase the instrument.

Q: Details on the xPloration business model?

A: Matt Foehr said xPloration involves selling instruments, with partners buying consumables and software licenses.

Q: Janssen trispecific data and license type?

A: Matt Foehr noted the Janssen trispecific data is interesting and the deal isn't a prepaid license but has milestone payments.

Q: Themes in partner programs?

A: Matt Foehr mentioned diversity in therapy areas including oncology, inflammation, fibrosis, renal, dermatology, and CNS, etc.