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OmniAb (OABI)
NASDAQ:OABI
US Market

OmniAb (OABI) AI Stock Analysis

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OmniAb

(NASDAQ:OABI)

Rating:55Neutral
Price Target:
$2.00
▲(3.63%Upside)
OmniAb's overall stock score of 55 reflects a challenging financial situation with negative profitability and cash flow issues being the most significant factors. While the technical analysis shows some short-term positive momentum, the long-term valuation remains weak due to ongoing losses. The optimistic earnings call provides a slight positive counterbalance with strategic growth initiatives and revenue increases.
Positive Factors
Financial Performance
OmniAb reported in-line financial results for their 1Q25, including revenues of $4.2 million, up 9% year-over-year, and reduced net losses of $18.2 million or ($0.17) per share, as compared to a loss of $19.0 million, or ($0.19) per share one year ago.
Partnerships
OmniAb signed three licensing partnerships in the quarter, including ones with Wyss Institute at Harvard, Italy-based Takis Biotech, and Orion, also private, based in Finland.
Product Launch
The launch of the xPloration partner access program adds a new revenue stream, which can enhance the company's financial outlook.
Negative Factors
Cash Balance Concerns
Questions about its $43M cash balance vs ~$38M FY25 cash burn remain, but management is confident the milestones in the post-discovery phase can get them to cash flow profitability.
Revenue Shortfall
Q1 revenues were just below consensus largely driven by $2.0M in milestone revenues offset by a 30% decrease in service revenues following completion of certain small molecule ion channel programs.

OmniAb (OABI) vs. SPDR S&P 500 ETF (SPY)

OmniAb Business Overview & Revenue Model

Company DescriptionOmniAb, Inc., a biotechnology company, provides therapeutic antibody discovery technologies in the United States. The company's discovery platform provides industry partners access to the diverse antibody repertoires and screening technologies to enable discovery of next-generation therapeutics. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic (transgenic rat) and OmniClic (transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur that features unique structural attributes of cow antibodies for complex targets. The company was founded in 2012 and is headquartered in Emeryville, California.
How the Company Makes MoneyOmniAb makes money primarily through licensing agreements and collaborations with pharmaceutical and biotechnology companies. Its revenue model is centered on the use of its proprietary antibody discovery platform, which partners can leverage to develop new therapeutic candidates. Key revenue streams include upfront payments, milestone payments based on the achievement of specific development or regulatory goals, and royalties on sales of drugs developed using OmniAb's technology. Significant partnerships with leading biopharmaceutical companies contribute to its earnings by expanding the reach and application of its platform in the development of innovative therapies.

OmniAb Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 22.93%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for OmniAb with strong growth in deals and programs, a successful launch of a new product line, and increased revenue. However, challenges such as net losses and lower royalty revenues persist. Overall, the positives in terms of strategic growth and financial performance outweigh the negatives.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
2025 is off to a very good start with strong deal flow, both platform and asset-based, and a growing pipeline of partnered programs.
Launch of Exploration Partner Access Program
OmniAb launched the exploration partner access program, allowing partners to purchase exploration instruments for use in their labs, creating new revenue streams.
Increase in Active Partners and Programs
Exited Q1 with 95 active partners and 378 active programs, showing continued growth in partner and program metrics.
Revenue Increase
Q1 2025 revenue increased to $4.2 million from $3.8 million in Q1 2024, mainly due to higher milestone revenue.
Reduction in Operating Expenses
Operating expenses declined to $23 million from $26.4 million in the prior year period, with cost savings in R&D and G&A.
Upcoming Presentations and Conferences
OmniAb will be showcasing exploration at the PEGs conference in Boston and ASCO annual meeting in Chicago.
Negative Updates
Net Loss
Reported a net loss for Q1 2025 of $18.2 million, or $0.17 per share, compared to a net loss of $19 million, or $0.19 per share, in Q1 2024.
Lower Royalty Revenue
Royalty revenue was lower for Q1 2025 compared to Q1 2024.
Attrition in Drug Development
Experienced attrition in Q1, mostly in the discovery stage, a natural part of drug development.
Company Guidance
During OmniAb, Inc.'s first-quarter 2025 financial results call, the company provided optimistic guidance fueled by strong deal flow, adding new partners, and achieving a notable 95 active partners by the end of the quarter. OmniAb's pipeline grew to 378 active programs, despite natural attrition in drug development, with 33 active clinical programs and approved products reported. The launch of the exploration partner access program was a significant milestone, offering partners the ability to integrate the exploration instrument into their workflows, potentially generating new revenue streams. Financially, the company reported a 10.5% increase in revenue to $4.2 million, attributed to higher milestone revenue, though the net loss for the quarter was $18.2 million. OmniAb maintained its 2025 revenue guidance of $20-25 million, excluding contributions from the exploration program, and revised its operating expense guidance to $85-90 million, down from $90-95 million.

OmniAb Financial Statement Overview

Summary
OmniAb faces significant financial challenges, with declining revenues, negative profitability margins, and strained cash flows. While the balance sheet shows strength with adequate equity, operational and cash flow difficulties present substantial risks.
Income Statement
45
Neutral
OmniAb's revenue has shown a declining trend with a significant revenue drop from 2022 to TTM 2025. Gross profit margin has weakened, and the company has negative net profit and EBIT margins, indicating operational challenges and lack of profitability. Despite a slight recovery in gross profit in TTM 2025, the overall financial health remains concerning with consistent net losses.
Balance Sheet
60
Neutral
OmniAb maintains a strong equity base with a high equity ratio, indicating a solid balance sheet structure. However, the company has a significant amount of debt, resulting in a moderate debt-to-equity ratio. The return on equity is negative, reflecting the company's struggle to generate profits from its equity base.
Cash Flow
50
Neutral
The company's cash flows are under pressure, with negative operating cash flow and free cash flow in the TTM period. The ratio of operating cash flow to net income is unfavorable due to negative earnings, signaling cash generation challenges. The company is reliant on financing activities to support its cash position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue26.74M26.39M34.16M59.08M34.75M23.27M
Gross Profit9.59M6.71M34.16M42.83M19.78M23.27M
EBITDA-51.57M-50.92M-49.73M-13.01M-19.38M-10.59M
Net Income-61.27M-62.03M-50.62M-22.33M-27.04M-17.56M
Balance Sheet
Total Assets306.18M325.56M375.23M421.21M304.46M295.38M
Cash, Cash Equivalents and Short-Term Investments43.59M59.43M86.98M88.27M-13.85M-2.59M
Total Debt22.48M23.16M25.56M25.80M13.85M2.59M
Total Liabilities32.67M37.94M60.64M79.84M70.16M59.84M
Stockholders Equity273.52M287.62M314.58M341.37M234.31M235.54M
Cash Flow
Free Cash Flow-41.10M-41.54M703.00K-20.75M-9.74M1.87M
Operating Cash Flow-38.50M-39.66M2.35M-3.59M-5.67M3.62M
Investing Cash Flow87.29M37.88M-18.38M-73.31M-4.03M-26.98M
Financing Cash Flow13.27M13.02M-892.00K110.74M9.70M23.36M

OmniAb Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.93
Price Trends
50DMA
1.59
Positive
100DMA
2.23
Negative
200DMA
3.05
Negative
Market Momentum
MACD
0.05
Negative
RSI
65.77
Neutral
STOCH
90.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OABI, the sentiment is Neutral. The current price of 1.93 is above the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.59, and below the 200-day MA of 3.05, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 90.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OABI.

OmniAb Risk Analysis

OmniAb disclosed 77 risk factors in its most recent earnings report. OmniAb reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

OmniAb Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
€7.32B20.880.61%1.91%1.18%-29.88%
60
Neutral
$362.30M-41.31%-7.93%
58
Neutral
$322.63M-3.42%638.41%71.89%
55
Neutral
$227.54M-21.32%27.07%6.74%
44
Neutral
$263.76M-2159.50%14.39%
42
Neutral
$358.32M-257.38%-17.92%
33
Underperform
$271.95M-98.14%-33.79%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OABI
OmniAb
1.93
-1.99
-50.77%
VSTM
Verastem
4.80
2.19
83.91%
XOMA
Xoma
26.96
2.31
9.37%
CMPX
Compass Therapeutics
2.78
1.92
223.26%
HUMA
Humacyte
2.28
-3.39
-59.79%
CADL
Candel Therapeutics
5.10
-0.68
-11.76%

OmniAb Corporate Events

Executive/Board ChangesShareholder Meetings
OmniAb Elects Directors at Annual Shareholder Meeting
Neutral
Jun 18, 2025

OmniAb, Inc. held its 2025 Annual Meeting of Shareholders on June 17, 2025, where shareholders voted on key proposals. During the meeting, two directors, Carolyn R. Bertozzi, Ph.D., and John Higgins, were elected as Class III directors for a three-year term. Additionally, the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (OABI) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on OmniAb stock, see the OABI Stock Forecast page.

Executive/Board Changes
OmniAb Appoints New Directors to Board
Neutral
Apr 21, 2025

On April 18, 2025, OmniAb, Inc. appointed Steven C. Crouse and Philip J. Gotwals, Ph.D. as Class II directors to its Board, with terms expiring in 2027. Mr. Crouse, with over 20 years of experience in life sciences, joins the Audit and Science and Technology Committees, while Dr. Gotwals, with 30 years in biopharmaceuticals, joins the Human Capital Management and Compensation and Science and Technology Committees. Both were granted restricted stock units and options as part of their compensation. Concurrently, Sarah Boyce resigned from the Board, which expanded from six to seven members.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025