OmniAb, Inc. Q2 FY2025 earnings call

• Strong deal flow in Q2 with new partners added, including an asset deal with Angelini Pharma and multiple license agreements.
• Partners advancing programs to human trials, with a new clinical stage program in Q2 and others in development.
• The xPloration Partner Access Program launched, well-received, with an xPloration system sold and installed, and a robust pipeline of leads.
• Staffing realignment: headcount reduced from 114 to 87, with further reduction in July incurring ~$1M in onetime expenses, expected to save ~$7M annually.
• Active partners: 100 at end of Q2; active programs: 381; active clinical programs and approved products: 32.
• Post-discovery stage programs grew 22% year-over-year, with ~$1.3B in contracted milestones; preclinical programs diverse in indications; clinical programs: 32, with new ones entering clinic and others in development.

For 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 due to lower milestones and service revenue, but offset by xPloration revenue. Cost and operating expenses for Q2 2025 were $20.1 million, down from $23.9 million in 2024. Research and development expense was $10.9 million vs $13.9 million in 2024, and G&A expense was $7.7 million vs $8 million in 2024. 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. Cash at the end of Q2 2025 was $41.6 million.

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

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ.
• Attrition in drug discovery and development due to factors like partner therapy area focusing, budget decisions, etc.
• Dependence on partner progress and success in clinical trials and development.

Q: Talked about large pharma vs small biotech trends and impact on discovery.

A: Matt Foehr said they're seeing growth in both large pharma and small biotech partners, with contributions from both.

Q: Reiterated guide and xPloration benefit.

A: Kurt Gustafson said xPloration is additive, but guidance remains unchanged. Matt Foehr added xPloration is accretive.

Q: Color on xPloration pipeline.

A: Matt Foehr said they launched in May, sold and deployed an instrument quickly, with a good pipeline of leads and interest from non-partners.

Q: Timeline for existing partners joining xPloration Access Program.

A: Matt Foehr said existing partners still get data generation as before, some partners can buy xPloration instruments. Kurt added process for non-partners interested.

Q: Second tech launch color.

A: Matt Foehr said planning a tech launch this year, relevant to partner mission, impactful with novelty.

Q: Janssen trispecific data and royalty on chicken platform.

A: Matt Foehr said Janssen deal not prepaid, chicken platform has various technologies, 61 post-discovery programs include chicken programs but no breakdown by royalty.

Q: xPloration business plan.

A: Matt Foehr said selling instruments, consumables, and software license with maintenance.

Q: Themes in partner programs.

A: Matt Foehr said diversity in preclinical assets including oncology, inflammation, fibrosis, renal, dermatology, CNS, etc.