OmniAb, Inc. Q3 FY2025 earnings call

• Deal flow was strong in Q3 with new program additions outpacing 2024. Active partners reached a record high of 104. - Active programs leveraging technologies increased to 399, with 36 net additions YTD and 18 in Q3. 6 programs were terminated. - Post-discovery stage programs increased 15% Y/Y, with 61 programs having ~$1.3 billion in remaining potential milestones. - Active clinical programs and approved products totaled 32 at Q3 end. 2 new partner programs entered clinic, 2 exited, and potential for 5 new clinical entries from OmniAb-derived programs. - xPloration partner access program showed strong feedback, driving efficiencies in discovery workflows, with potential for recurring revenue from consumables, software, and maintenance. - OmniUltra, a new transgenic chicken platform producing cow-like antibodies with ultra-long CDRH3s, to launch in December, opening new markets and peptide therapeutic opportunities.

For the third quarter of 2025, OmniAb reported revenue of $2.2 million, down from $4.2 million in the same period of 2024. The decrease was due to fewer milestones achieved and lower service revenue, though there was xPloration revenue from consumables and modest royalty revenue increase. Cost and operating expense for Q3 2025 was $20.4 million, down from $23.9 million in 2024, with decreases in R&D and G&A expenses. Net loss for Q3 2025 was $16.5 million or $0.14 per share, compared to $16.4 million or $0.16 per share in 2024. Cash balance at September 30, 2025, was $59.5 million, and the company completed a $30 million private placement during the quarter.

• 2025 revenue expected to be between $18 million and $22 million. - Operating expense expected to be between $82 million and $86 million. - Cash balance expected to be between $52 million and $56 million at year-end. - Tax rate remains unchanged at approximately 0% due to valuation allowance.

Q: Puneet Souda from Leerink asked about the private placement's timing motivation and cash runway.

A: Kurt Gustafson said they bolstered the balance sheet as markets became more favorable, and Matt Foehr added it provides flexibility and the company is well capitalized.

Q: Michael Almisry from Leerink asked about xPloration customer conversations.

A: Matt Foehr said interest is strong, higher-tier partners are active, feedback on efficiency is positive, and timing is good for partner budget planning.

Q: Sara from H.C. Wainwright asked about OmniUltra's launch readiness.

A: Matt Foehr said substantial validation work was done, and they're well-positioned for the December launch with podium and poster presentations at AET.

Q: Alex from Truist asked about xPloration revenue projections.

A: Matt Foehr said xPloration is early, with multiple revenue streams, but precise guidance not provided yet.

Q: Matt Hewitt from Craig-Hallum asked about program milestones pushed to 2026 and 2026 R&D budgets.

A: Matt Foehr said milestones pushed were due to standard development timing, and program additions show industry momentum, with xPloration in capital realm.

Q: Brendan Smith from TD Cowen asked about OmniUltra's economics and partner pipeline royalties.

A: Matt Foehr said OmniUltra is additive, opening new partners, and Kurt Gustafson discussed royalty modeling based on analyst expectations for drugs like acasunlimab and 1402.

Q: Josh from Stifel asked about OmniUltra vs OmniTaur.

A: Matt Foehr said OmniUltra uses a chicken host for immune response, while OmniTaur uses cows, with OmniUltra opening peptide opportunities.

Q: Josh from Stifel asked about xPloration revenue breakdown.

A: Matt Foehr said early days, mostly consumables, with more details to come as launch progresses.