Omniab, Inc. ((OABI)) has held its Q2 earnings call. Read on for the main highlights of the call.
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OmniAb, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. While the company celebrated new partnerships, technological advancements, and strategic cost reductions, these positives were overshadowed by a decline in revenue and an increased net loss. The company also faces challenges with natural attrition.
Strong Deal Flow and New Partnerships
OmniAb demonstrated impressive deal flow by adding numerous new partners in the first half of 2025. The company concluded the second quarter with 100 active partners, setting the stage for one of its strongest years yet.
New Technology Launch: xPloration
The launch of the xPloration Partner Access Program marked a significant technological advancement for OmniAb. The program was well received, with the first system sold and installed shortly after its launch, and it is expected to contribute positively to the business.
Increase in Active Programs and Potential Milestones
OmniAb reported an increase in active programs, reaching 381, with a net increase of 18 programs year-to-date. Preclinical programs grew by 22% from the previous year, with contracted potential milestones totaling $1.3 billion.
Positive Clinical Progress
Several programs advanced to the preclinical stage, and a new program entered a Phase III clinical trial. Additionally, two novel programs initiated first-in-human clinical trials in 2025, indicating strong clinical progress.
High Anticipated Future Revenue from Antibody Programs
OmniAb’s antibody programs are poised for significant future revenue, with over $3 billion in total remaining contracted potential milestone payments and an average royalty rate of 3.36%.
Strategic Cost Reductions
The company undertook strategic cost reductions by realigning staffing, reducing headcount from 114 to 87. This move is expected to result in $7 million in annual cash savings.
Decline in Revenue
OmniAb experienced a decline in revenue, reporting $3.9 million for Q2 2025 compared to $7.6 million in Q2 2024. This decrease was primarily due to lower milestones and service revenue.
Increased Net Loss
The net loss for Q2 2025 was $15.9 million or $0.15 per share, an increase from the net loss of $13.6 million or $0.13 per share in Q2 2024.
Discontinued Programs and Attrition
The discontinuation of a small-molecule ion channel program contributed to a decline in service revenue. Attrition in drug development was noted as a natural part of the process.
Forward-Looking Guidance
Looking ahead, OmniAb reaffirmed its 2025 revenue guidance of $20-25 million and operating expenses of $85-90 million. The company emphasized the potential of its differentiated technology platform to deliver long-term value, despite the recent revenue decline.
In summary, OmniAb’s earnings call presented a complex picture of the company’s current state. While new partnerships and technological advancements offer promising growth opportunities, the decline in revenue and increased net loss present challenges. The company’s strategic cost reductions and strong pipeline of programs are expected to support future growth.