OmniAb, Inc. Q4 FY2023 earnings call

• OmniAb grew significantly in 2023 with active partners increasing to 77 from 69, active partner programs to 325 from 291, and active clinical and approved programs to 32 from 26. - 2023 was productive in new partner additions with 10 new platform licensing deals, including with Big Pharma, biotech, and academic partners. - Launched OmniDeep (in silico AI and machine learning technologies) in May 2023 and OmnidAb (transgenic chicken producing single domain antibodies) in November 2023. - Expect 4 to 6 new clinical programs in 2024 and late-stage advancement for key programs at Genmab, Immunovant, etc. - Novel transgenic animals and their biological intelligence are a foundation, with OmnidAb offering unique single domain antibodies with various therapeutic applications.

In the fourth quarter of 2023, total revenue was $4.8 million compared to $35.3 million in the prior year quarter. The decrease was primarily due to the recognition of the TECVAYLI milestone of $25 million in Q4 2022 not being repeated in Q4 2023. Service revenue was lower primarily due to the completion of work on certain ion channel programs. For the full year 2023, total revenue was $34.2 million compared to $59.1 million in 2022. License and milestone revenue was lower than the prior year, mainly due to the revenue recognition of TECVAYLI milestones. Service revenue was down compared to the previous year, primarily due to the completion of work on certain ion channel programs. Operating expense in 2023 was approximately $103.6 million compared to $85.7 million in 2022, with increases in R&D and G&A costs.

• Expect 4 to 6 new clinical programs for novel OmniAb derived antibodies in 2024. - Cash use in 2024 is expected to be relatively similar to 2023 excluding the $35 million TECVAYLI milestone payment, with Q1 being the largest burn quarter. - Cash use in 2025 is expected to be substantially lower than 2024. - Projected cash inflows from existing partner programs using standard industry timelines and probabilities of success to forecast future revenue.

Q: Puneet Souda asked about overall expectations, program growth, and business development conversations in 2023 and Q1 2024.

A: Matt Foehr said despite biotech fundraising and M&A trends, OmniAb saw growth due to platform visibility, new technology launches, and partner progress.

Q: Joseph Pantginis asked about AI impact on technologies and partner growth/attrition rates.

A: Matt Foehr said AI has been leveraged for years with OmniDeep, and attrition is natural in pharma discovery with differences in stages.

Q: Chad Wiatrowski asked about sales force geographic mix and Sugemalimab milestones.

A: Matt Foehr discussed the sales force makeup, and Kurt Gustafson said Sugemalimab approval milestones were already hit with only royalties left.

Q: Stephen Willey asked about downstream participation in royalties, cash use in 2025, and ion channel partnerships.

A: Kurt Gustafson said few programs have prepaid licenses, cash use in 2025 is driven by milestones, and Matt Foehr highlighted ion channel programs with GSK and Roche.

Q: Jack Siedow asked about Q1 momentum.

A: Matt Foehr said Q1 metrics will be reported formally in May.

Q: Unidentified Analyst asked about partnership strategy and future tech.

A: Matt Foehr said strategy remains focused on licensing drug discovery technologies, and there are exciting investments in new technologies.

Q: Conor McNamara asked about program progression probability and market share.

A: Kurt Gustafson said program progression was largely on point, and Matt Foehr noted the large greenfield in antibody-based discovery but no exact market share data.