Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OmniAb Inc (OABI, Financial) reported strong growth in active programs, with 39 new additions and only 12 terminations, indicating robust interest in their technology.
- The company signed three new platform license agreements with notable institutions, including 92 Bio, Memorial Sloan Kettering Cancer Center, and Queen Mary University of London.
- OmniAb Inc (OABI) expanded its ion channel screening relationship with Syngenta and entered a new license with Insight Corporation, showcasing successful business development efforts.
- The company has a diversified base of 86 active partners, which helps mitigate risks associated with industry cycles.
- OmniAb Inc (OABI) maintains a strong financial position with $59.4 million in cash, providing strategic flexibility and resilience against macroeconomic pressures.
Negative Points
- Total revenue for the quarter decreased to $4.2 million from $5.5 million in the prior year, primarily due to lower milestone and ion channel service revenue.
- The company reported a net loss of $16.4 million for the third quarter, slightly higher than the $15.7 million loss in the prior year period.
- OmniAb Inc (OABI) observed industry pressures leading to restructurings and pipeline reprioritizations, which could drive additional volatility in their business.
- There is a cautious outlook due to macroeconomic conditions affecting the biopharmaceutical industry, potentially impacting future revenue streams.
- The company had to raise additional capital through an at-the-market security offering, indicating a need for financial cushioning amidst uncertain industry conditions.
Q & A Highlights
Q: Given the large step up in the number of active programs this quarter, can you clarify how much is from macro recovery in the BioPharma phase versus company initiatives like gaining share or expanding geography?
A: Growth in program counts has been strong, driven by new technologies like our OmniChicken platform, which is attracting interest due to its novel class of antibodies. This growth is balanced against industry realignments, but overall, program growth validates our platform. - Matt, President and CEO
Q: Is OmniHub an additional revenue stream or part of a standard license?
A: OmniHub is a tool to facilitate and streamline discovery interactions with partners, part of our standard offering, not a separate revenue stream. It leverages machine learning and AI to enhance our bioinformatics capabilities. - Matt, President and CEO
Q: Are you seeing any impact from companies being cautious with investments due to a decline in biotech funding?
A: We are observing industry pressures and volatility, but our key metrics like new deals and program progress remain strong. We maintain a cautious outlook but continue to perform well. - Kurt Gustafson, CFO
Q: How should we think about the range of new clinical entries by your partners next year?
A: We expect 1 to 3 additional clinical entries by year-end. With 20 assets in preclinical, we anticipate more programs moving into the clinic in 2025. More specifics will be shared post-JP Morgan conference. - Matt, President and CEO
Q: What proportion of new program starts are multispecific in nature, and do you have insight into the types of targets being pursued?
A: There's a growing interest in multispecifics, with an increase in such programs this year. Our platform supports diverse modalities, and we're seeing more diversification in therapy areas, including CNS and oncology. - Matt, President and CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
