Company Overview

OmniAb is a biopharmaceutical company that develops technologies for antibody discovery. The company partners with pharmaceutical and biotech companies as well as academic institutions to provide access to its suite of technologies for discovering novel antibody-based therapies.

Key Financial Metrics

Revenue

Total revenue for Q1 2024 was $3.8 million, a 78% decrease compared to $16.9 million in Q1 2023. The significant decline was primarily due to lower license and milestone revenue, which can fluctuate quarter-to-quarter based on the timing of milestone achievements related to partnered clinical programs.

Metric	March 31, 2024	December 31, 2023	% Change
License and Milestone Revenue	$0.7 million	$12.6 million	(94%)
Service Revenue	$2.8 million	$4.0 million	(30%)
Royalty Revenue	$0.3 million	$0.3 million	1%

Expenses

Total operating expenses for Q1 2024 were $26.4 million, a 4% increase compared to $25.4 million in Q1 2023, primarily driven by higher R&D costs.

Expense	Q1 2024	Q1 2023	% Change
Research and Development	$14.6 million	$13.8 million	6%
General and Administrative	$8.3 million	$8.2 million	2%
Amortization of Intangibles	$3.4 million	$3.4 million	1%

Net Loss and Cash Position

• Net loss for Q1 2024 was $19.0 million compared to $6.1 million in Q1 2023.
  
• Cash position remains strong at $69.0 million as of March 31, 2024.

Financial Analysis

OmniAb’s 94% decline in license and milestone revenue resulted in a significant drop in total revenue compared to the previous year’s quarter. However, revenue can fluctuate substantially from quarter-to-quarter based on the timing of milestones from partnered programs.

Despite the revenue decline, the company maintains a solid cash position and its operating expenses continue to be managed efficiently, increasing only 4% year-over-year. The small increase was primarily driven by higher R&D costs related to advancing the company’s technology platform.

Business Highlights

Partnered Pipeline

• 80 active partners at the end of Q1 2024, up from 77 at the end of 2023
• 327 active programs at the end of Q1 2024, up from 325 at the end of 2023
• 31 active clinical programs and approved products at the end of Q1 2024, down from 32 at the end of 2023

The company continues expanding its partner network and number of active programs, while advancing multiple products through clinical development.

Outlook

With a strong cash position and advancing pipeline, OmniAb remains well-positioned to drive long-term growth. The company has significant potential to generate increasing clinical, regulatory, and commercial milestone payments over time, ultimately leading to royalty revenue as partnered products reach the market.

However, revenue will likely continue fluctuating from quarter-to-quarter based on the variable nature of milestone timing. Profitability also remains a longer-term goal, though operating expenses continue to be managed efficiently.

Overall, OmniAb maintains a strong financial foundation and partnered pipeline to support its antibody discovery platform and drive future revenue growth. But consistency in quarterly financial results is unlikely in the near-term.

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