In This Article:
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Total Revenue: $7.6 million for Q2 2024, compared to $6.9 million in the prior year quarter.
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Service Revenue: Included an accelerated $1.3 million due to the discontinuation of the GSK small molecule ion channel program.
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R&D Expense: Relatively unchanged versus the prior year.
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G&A Expense: $8 million, down from $8.7 million last year, primarily due to lower share-based compensation and non-recurring costs.
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Amortization of Intangibles: Increased due to a $1.2 million impairment related to legacy unpartnered programs.
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Other Operating Income: Included a $2.6 million reduction in contingent liabilities related to changes in ion channel programs.
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Cash Position: $57.2 million as of June 30, 2024.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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OmniAb Inc (NASDAQ:OABI) reported a strong quarter with total revenue of $7.6 million, up from $6.9 million in the prior year.
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The company added two new platform license agreements with DAAN Bio and Topaz Therapeutics, expanding its partnership base.
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OmniAb Inc (NASDAQ:OABI) has experienced a 30% growth in its partnership base over the last two years, driven by platform validation and new technology launches.
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The company has a robust pipeline with 50 preclinical and later-stage programs, representing significant potential milestone revenue.
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OmniAb Inc (NASDAQ:OABI) maintains a strong cash position with $57.2 million, and expects operating expenses in 2024 to be slightly less than in 2023.
Negative Points
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GSK discontinued its small molecule Nav1.1 sodium channel modulator program, impacting OmniAb Inc (NASDAQ:OABI)'s service revenue.
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Roche returned its rights to a small molecule program targeting Kv7.2, which may affect future revenue streams.
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The company faces challenges in repartnering CNS assets returned by GSK and Roche, which are still in discovery and preclinical stages.
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OmniAb Inc (NASDAQ:OABI) has limited visibility on the timing of milestone payments, which are expected to be weighted towards the second half of the year.
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The company is navigating a competitive landscape with ongoing litigation in the microfluidics single-cell space, which could impact its exploration platform.
Q & A Highlights
Q: Can you discuss the exploration platform and its integration into your offerings, considering recent microfluidics IP litigation? A: The exploration platform is a high-throughput B cell screening tool that enhances efficiency. It has unique microcapillary technology, distinct from others in the space, and can be paired with AI for increased throughput. We've invested in it to drive efficiencies and leverage it for partner programs. Matthew Foehr, President, CEO