OmniAb, Inc. Q1 FY2025 earnings call

• Exited Q1 with 95 active partners, including new deals with Harvard's Weiss Institute, Takis Biotech, and Orion Corporation. Also signed an asset deal with Angelini Pharma for a small molecule ion channel modulator.
• Total number of active programs grew to 378 at quarter end.
• Launched the exploration partner access program allowing OmniAb partners to purchase exploration instruments for their labs. Exploration is an AI-driven, deep functional screening instrument for antibody discovery with benefits like fast processing speed, powerful throughput, and ease of use.
• R&D expense decreased due to lower stock-based compensation and external expenses related to small molecule ion channel programs and technology development. G&A expense decreased due to lower legal fees and stock-based comp.

In the first quarter of 2025, OmniAb's revenue was $4,200,000, an increase from $3,800,000 in the same period of 2024. Operating expenses decreased to $23,000,000 from $26,400,000. The net loss for Q1 2025 was $18,200,000 or $0.17 per share, compared to a net loss of $19,000,000 or $0.19 per share in Q1 2024. Cash on hand at the end of Q1 2025 was $43,600,000.

• Expect 2025 revenue to be between $20,000,000 and $25,000,000, with no revenue from exploration partner access program included in this guidance.
• Operating expenses expected to be in the range of $85,000,000 to $90,000,000, lower than previous guidance.
• Cash used in 2025 expected to be lower than in 2024.
• Tax rate remains unchanged at approximately 0%.

Q: How to attribute the strong start of program starts and whether it's balanced across geographies or partner size?

A: Matt Foehr mentioned it's due to continued innovation, new technologies like Omnigab, and existing partners starting new programs, with starts and attrition being lumpy due to reporting timing.

Q: On the exploration partner access program, any color on potential partners or timeline?

A: Matt Foehr said it's a portion of the 95 partners, preliminary conversations have been positive, and details will be shared more at the PEGs Conference next week.

Q: On exploration platform, key differentiators besides time and throughput?

A: Bob Chen mentioned the instrument has no fluidics, simple setup and maintenance, AI-assisted analysis for faster speeds and less labor, and is approachable for junior lab members.

Q: On FDA decision on animal testing and impact on business?

A: Matt Foehr said the FDA announcement on antibody-based medicines is different from OmniAb's transgenic animals providing antibody repertoires, and it's potentially good for the industry as it may streamline timelines and costs.

Q: On additional computational or AI-driven platform offerings for customers?

A: Matt Foehr and Bob Chen discussed the interplay between exploration, Omni Deep in silico tools, and OmniHub platform for data sharing, with exploration generating data for AI tools and model training