OmniAb’s Earnings Call: Growth Amid Challenges

Omniab, Inc. ((OABI)) has held its Q1 earnings call. Read on for the main highlights of the call.

OmniAb, Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company showcased strong growth in deals and programs, a successful product launch, and increased revenue. However, it continues to face issues such as net losses and decreased royalty revenues. Overall, the strategic growth and financial performance were highlighted as outweighing the negatives.

Strong Start to 2025

2025 has begun on a strong note for OmniAb, with significant deal flow in both platform and asset-based areas, contributing to a robust pipeline of partnered programs. This momentum is indicative of the company’s strategic positioning and market demand for its offerings.

Launch of Exploration Partner Access Program

OmniAb introduced the exploration partner access program, enabling partners to purchase exploration instruments for their labs. This initiative is expected to create new revenue streams and enhance collaboration with partners, marking a significant step in the company’s growth strategy.

Increase in Active Partners and Programs

The first quarter concluded with OmniAb having 95 active partners and 378 active programs, reflecting continued growth in its partner and program metrics. This expansion underscores the company’s ability to attract and maintain valuable collaborations.

Revenue Increase

OmniAb reported a revenue increase for Q1 2025, reaching $4.2 million from $3.8 million in Q1 2024. This growth was primarily driven by higher milestone revenue, showcasing the company’s successful execution of its business model.

Reduction in Operating Expenses

The company achieved a reduction in operating expenses, which fell to $23 million from $26.4 million in the previous year. This decrease was attributed to cost savings in research and development (R&D) and general and administrative (G&A) expenses, indicating improved operational efficiency.

Upcoming Presentations and Conferences

OmniAb is set to showcase its exploration capabilities at the PEGs conference in Boston and the ASCO annual meeting in Chicago. These events present opportunities for the company to demonstrate its innovations and engage with industry stakeholders.

Net Loss

Despite positive developments, OmniAb reported a net loss of $18.2 million, or $0.17 per share, for Q1 2025. This is a slight improvement from the $19 million, or $0.19 per share, net loss in Q1 2024, reflecting ongoing financial challenges.

Lower Royalty Revenue

The company experienced lower royalty revenue in Q1 2025 compared to the same period in 2024. This decline highlights a challenge in maintaining consistent royalty income streams.

Attrition in Drug Development

OmniAb faced attrition in its drug development efforts during Q1, primarily at the discovery stage. While this is a natural part of the drug development process, it remains a point of concern for the company’s pipeline stability.

Forward-Looking Guidance

Looking ahead, OmniAb provided optimistic guidance, driven by strong deal flow and the addition of new partners. The company ended the quarter with 95 active partners and 378 active programs, including 33 active clinical programs and approved products. The exploration partner access program is expected to generate new revenue streams. Financially, OmniAb projects 2025 revenue of $20-25 million, excluding contributions from the exploration program, and has revised its operating expense guidance to $85-90 million.

In summary, OmniAb’s earnings call painted a picture of a company on a positive trajectory, with strategic initiatives and financial growth outweighing the challenges of net losses and lower royalty revenues. The company’s forward-looking guidance suggests continued optimism and potential for future success.