OmniAb, Inc. Q1 FY2024 earnings call

• Business metrics: Ended Q1 2024 with 80 active partners, 3 new platform license agreements signed, 327 active programs, 3 programs transitioned from discovery to pre-clinical, 18 pre-clinical programs at the end of Q1, and 1 program moved from Phase 1 to Phase 2. - Partner updates: Immunovant's global Phase 3 trials for batoclimab progressing, HanAll Biopharma running Phase 3 study in Japan, Merck's pre-clinical data on M9140, Genmab's expected acasunlimab Phase 2 data. - Upcoming presentations: PEGS, Antibody Engineering and Therapeutics Conference, World ADC Asia Conference, and a peer-reviewed publication on OmnidAb. - OmnidAb launch: Attracting new partners and opening new market opportunities.

Total revenue for the first quarter of 2024 was $3.8 million, down from $16.9 million in the prior year quarter due to the absence of the TECVAYLI EU launch milestone recognized in Q1 2023. Service revenue was lower as a result of completing discovery work on certain ion channel programs. R&D expense for Q1 2024 was $14.6 million compared to $13.8 million in the prior year quarter, primarily due to higher personnel costs. G&A expense was $8.3 million. The net loss for Q1 2024 was $19 million ($0.19 per share) versus $6.1 million ($0.06 per share) in the prior year period. As of the end of Q1 2024, cash stood at $69 million.

• Reaffirmed cash used in 2024 is expected to be relatively similar to 2023 excluding the $35 million TECVAYLI milestone received in 2023. - Expect cash balance and cash from operations to fund operations for the foreseeable future. - Anticipates 4 to 6 new programs entering clinical trials in 2024, some OmniChicken-derived, with a mix of other source technologies.

• Attrition is natural in the business; in Q1 2024, one program was discontinued at Roche, primarily due to a pipeline realignment by a single Asia-based partner.

Q: What proportion of programs include downstream participation on royalty? What proportion of new clinical programs this year are specific to which platform?

A: Only about 2% of 327 active programs don't have downstream economics. 4 to 6 new clinical programs this year include some OmniChicken-derived, with others a mix of source technologies.

Q: How are deal terms different for deals with University of Georgia vs. a start-up/biotech company?

A: Deals start with similar term sheets and get negotiated, with terms in the same ballpark but slightly different. Academic deals have different structures, often with revenue share based on asset progression.

Q: Thoughts on the biosecure bill and its impact?

A: Legislation not expected to have significant or direct impact on the business, as it doesn't affect value drivers or the business significantly.

Q: Color on new licenses, therapeutic interest, platform use?

A: New partners like ImmunoBiochem (oncology/immuno-oncology), University of Georgia (revenue share model, oncology/infectious diseases), and a Boston start-up (proven team). OmnidAb gaining traction, with updates at PEGS conference.