Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to the OmniAb Inc.'s First Quarter 2023 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session.

As a reminder, this conference is being recorded.

I would now like to turn the call over to Kurt Gustafson, OmniAb Inc.'s Chief Financial Officer. ahead. go Please

Kurt Gustafson

are and joining operator, call. everyone. you omniab.com. and Thank are of Investors Thank website our first good quarter for at they remarks, today's our to conference in XXXX all the slides section you, accompany morning, available financial There results

Before results risks to results. actual laws. and materially forward-looking that the different statements made are we meaning like uncertainties and These by this anticipated cause that during of filings. statements release listeners be I from any today's remind would These qualified securities forward-looking within involve could statements our call begin, federal SEC press to comments will statements forward-looking contained the cautionary include in

is of Except -- the statements as Importantly, the call. this events or accurate OmniAb by to conference only of revise or this this circumstances XX, any XXXX. broadcast, update call date today, as May required no obligation takes law, forward-looking that of undertakes contains date reflect live information to after time-sensitive

on today is President CEO. and call me the Matt Foehr, Joining

will the call, financial highlights conclusion today's the the results. I we'll our partner provide updates questions. and Matt operations, At on the recent remarks, prepared of call and technology to During open company's and

over me let turn Matt that, With the to Matt? call Foehr.

Matt Foehr

for Good publicly now. traded independent an our Thanks, just results everyone, first six OmniAb thanks months Kurt. been has conference joining company and morning, quarter call. XXXX financial about for

bit off we this to are new and start of by joining to our who a investors moment do. briefly like I'd analysts welcome describe what just a new So morning taking quick and to today

to from to our our therapeutics. generate our We products. on discover of and discovery us model sales and stack. or access of or milestone is business related from payments focused OmniAb's for phases, asks payments with innovative proprietary service partner licensing partners' clinical net collaboration our From rapidly upfront technology to achievement platform enable from to partners to on for do royalties advancement work them a regulatory when revenue commercial revenue

host fully the Industry's only diverse discovery most the has systems OmniAb and bispecific antibody human believe for X-Species Platform. We with

by screening of is Our engineered high-throughput candidates enable at technology biological the technologies our transgenic its range intelligence fully our to paired for animals the human antibody with of discovery stack of wide high-quality a diseases. therapeutic driven core

of us expand Our the and critical gives with industry feedback robust collaborations creates positive partners base platform. a experience, close insight proprietary with into coupled to and loop our advance our

branded few offerings this our launches to order keep discuss I'll partners first the technology across intelligence platforms forefront our which machine structural learning of leverages work. at further to in capabilities modeling, silico slides, And of We OmniDeep and our artificial our in in technology is strive technology our offering, as a our year. OmniDeep the industry. enable such

novel launch As we in OmniChicken heavy-chain the our to also fourth quarter. plan

as which we our our Leveraging partners XXXX. business underway partners. attract significant to additional growing programs in this efforts about participate to of highly drive value brings validation billion to is we number continue partners technology And $XXX the development by provides our scalable and reach grow continues of projected the and that business to model, market, large in to

unmet platform, our proven resources we're employees, medical a dedicated major to of we over growth in staff address for and for needs current our XXX technology positioned therapeutics. With believe novel

being which Cessation the developed license first the end new totaled with assets relationships, partners by now related Research Scripps partner addition with the of expand to of Therapeutics. Institute XX to quarter continue We a at the

signed end, quarter we to Subsequent new platform agreement license a with also Biosciences. Neurocrine

as our world's partners Approximately discovery continue collaboration our measured we our the XX% pharmaceutical are revenue. that seeking represent by pharma Our of range to global services. partners are of companies team's wide among partners high-quality a and and platform companies, attract top scientific XX

I'll the that case and new sometimes be the acquired, and industry That's Pfizer expected given being that formed Seagen expanding companies we being number consolidation. to is announced their report. impact dynamic constantly with with and also planned previously highlight consolidating here companies and will of this and partners that

too, are maintained the so the I there that are generally in changes know our in even ownership. program here, structured are OmniAb agreements tied to all where economics and that to instances

end I reached and clinic to XX As approved commercialization the programs at grow mentioned, in continues programs with our the over XXX of for portfolio or QX.

programs The we totaling portfolio. large pie programs development. growing addition XXX of net XX added the this in in is to out and programs preclinical chart a The stage. with by XXX new quarter, the programs discovery to our of phase During stage base breaks our XX on slide a

both the pursued in we're recognizing royalty also clinic, revenue There are programs Phase three in other of and XX Phase Phase in two Zimberelimab of in partners and being utilizing in Sugemalimab I; two are which drugs In have X our commercial markets. OmniAb-derived China, approved X. antibodies, and sales from

SGN-BBXXX, that's In had the a for melanoma and advanced clinical Seagen, a entered development Phase in clinic who program clinical trial first the is X CDXXX with which tumors. of a X-XBB and new initiated we quarter, other bispecific solid molecule

potential XXXX. mentioned I new OmniAb-derived the our enter to quarterly on in discussions for clinic call, with three last to As partners, based antibodies see on we five

use evolving cases, drives and scientific to large our desired therapeutic generating for partners' optimizing to a than of we repertoires animals. needs increases the strive different one more science diverse believe characteristics. partners' as of use The behind provide of program. We likelihood the meet source programs in individual our in engineered success high-quality utmost our flexibility they many antibodies And

rat-derived, of have our clinical platform and continue we our chicken-derived, antibodies see partners, versatility are the number by are clinically. being preclinically of and in mouse-derived and to that in both trials that and showing the currently formats Partners employed are modalities

we Our received discuss. will the to from January, their which in $XX and clinical first public payments about quarter related progress TECVAYLI, weeks. in number a of recent in milestone million partners Kurt made Notably, commercial and announcements Janssen during

other positive from results progress, Harbour is I'll Harbour its with clinical batoclimab. start Phase and Batoclimab X development line China Biomed Biomed Immunovant. by top in by trial HANALL, in clinical Regarding by announced treatment of HANALL initiate making treatment year, the generalized Phase in generalized the to gravis. a later announced for also gravis. X for myasthenia has progress this of that plans on Japan they're myasthenia

demyelinating trials addition, next-generation for autoimmune Immunovant Graves' anti-FcRn Immunovant initiate year. its clinical to Immunovant disease clinical the eye thyroid and second using report generalized announced In OmniRat Phase I half also chronic diseases. in from trial our plans And announced in it gravis, of running expects technology, initial polyneuropathy. to inflammatory discovered trial the which myasthenia results was that Phase this for X clinical in is IMVT-XXXX, a disease

XXXX the sharing from which to molecules is are agreement discovered into HANALL we clarifying receive want make defined these by for payments built using OmniRat HANALL that one through I were will regarding both batoclimab the originally economics that economics and our come note programs, and them. any that with

I Phase a ASCO, on of and melanoma mentioned, CDXXX note in As clinical a initiated based X-XBB that on tumors. comment advanced I'll molecule X recently Seagen also and bispecific SGN-BBXXX, And solid here trial Meeting a is data have titles of new been partners we Annual for in place that present our June. presentations taking up the the ASCO number coming that and OmniAb-derived expect clinical a here at programs disclosed, will other

next this Boston. OmniDeep platform we'll week's PEGS our press be release As mentioned morning, in meeting our at in launching

These databases, be Chen various studies silico Systems throughout have include for Engineering, technologies therapeutic is and Our OmniAb's Bob Head sequence structural optimization tools deep and discovery been that highlighting AI of suite a features. molecular case antibody simulations, will tools large of OmniDeep multi-species learning a additional models machine capabilities. modeling, dynamic and presenting OmniDeep. proprietary and and woven in

animals screening with drug such OmniDeep Leverage the more allows and for exploration, identification the of to and profiles as with right to and intelligence rapid our effective biological of efficient candidates specificity development. affinity lead technologies, developability our engineered

our These efforts for proprietary research part recently we've with been programs of and partners. some especially larger our many years expanded capabilities them, of for have internal

view delivery. Our target which and a around channels differentiated centered leverage tool transporters ion extensive OmniDeep, also viable is lead to capability for we as

effective difficult modalities partners. being molecule are that and ion originally capabilities These around our to are particularly and multiple capabilities and targets. have We small high-value were applied for established built for and formats channel now

see do position of further interest find through as partners, we on we also relationships value pipeline feedback value that the leading their maintain our enhance areas industry. platform help their to we what plans. create our they have input and to innovate a Not We to with the we this the only within technology expansion to discovery process utilize and

all stakeholders we highly new portfolio to structures execute the to to poised we we're also the therapeutic with expand continue our with that as partners business of a forward partners. updated have do keeping by We And value this candidates model development look create that on for and new deals into as well as scalable clinic to our strategy. and facilitate you

So let quarter now with a to the back Kurt? me the turn over first Kurt financials. call of discussion for that,

Kurt Gustafson

Thanks, Matt.

prepared given for As accounting primarily were This a reporting. operating basis, expenses, which OmniAb historical period company. the comparisons records, a methodologies certain results in from makes are from prior if the on reminder, the derived year financial difficult, Ligand's for carve-out differences the an were reported as independent

was prior compared primarily the walk in of EU. quarter let's to commercial in year first the milestone the of the first million of sale highlights the remaining quarter. XXXX $XX.X Now due to The for million the through revenue of $XX the revenue quarter. for few payment for the increase million Total a was TECVAYLI recognition $X.X

received that fourth we recognized commercial was U.S. likely later the call the remaining million in year. a and I mentioned from first conference $XX sale million in the also million we on that recognize our $XX the I stated as payment that quarter payment Janssen for revenue would last milestone $XX in the

received revenue the that of However, recognizing information portion from this EU the for milestone quarter. in Janssen first the April, criteria met we in

status some slightly quarter, last a less based result revenue on exclusively programs. performed licensed being as down was these for work and of ion of service partners our stage channel our of Like

operating expense. Turning to

public G&A to these functions as new and in other quarter up associated $XX.X a prior year quarter. higher $XX.X quarter with due we being The with the expense was expense compared primarily facilities. our to the staffed $X.X year increase for R&D first in costs Our costs compared associated $X.X to was and the personnel million costs million prior was higher company. million incurred million

The net share year $X.X prior $X.X or per was loss share in the $X.XX per million loss million versus a for period. net of quarter $X.XX or the first

be XX.X calculations additional for going One shares QX our of calculation. number forward. shares share number is The used shares using outstanding good EPS for our should and the of million based basic on to for a about comment per earnings be

quarter was first receipt equivalents We driven and milestone in than quarter ended there payment no only investments. most the TECVAYLI. obligation recently the milestone of by paid mentioned, was accounts increase The just receivable in the our the started. primarily million million cash $XX for for cash, approximately decrease with change balance sheet. we in programs that our the first quarter that significant the short-term associated is changes The of Other to that various the on that I to I'll CDR were million in OmniTaur which related $XXX.X mention $X other

this expect to to for higher and sufficient future. of at that runway foreseeable the end slightly that of operations balance our continue fund balance XXXX balance at our the the than We the end be cash XXXX provides

would base I results On off and to XXXX continue good call, in earnings expectation, with growing. indicated QX going QX see be our our forward. that XXXX we actual line are a this that we trend fourth expect expense to R&D of which quarter is

this figure. expenses of things, that included previously million, On of G&A indicated indicated would XXXX that $X that the our and expected approximately you expense QX million that slightly onetime I've grow off G&A fourth if our $X out side G&A we expenses quarter pulled adjusted

trend you see, and consistent results our with QX that forward. can to are we see XXXX the also expect guidance, going As similar

And with that, I'd like questions. Operator? for the to call open up

Operator

ahead. Instructions] begin question Your we'll [Operator Truist comes Please from from gentlemen, now first Robyn and Ladies question-and-answer the session. you. Securities. Karnauskas go Thank

Nishant Gandhi

taking on I'm process. congrats our the Nishant. Thanks is for on all Robyn. This Hi. questions for and

wondering I novel plan just question for mean, willing I just OmniDeep. silico, kind is future? platform a But So on like you're of one that way OmniDeep biological if produce intelligence is to know create a leverage the something you in just believe -- antibodies to better that to antibody.

Matt Foehr

capabilities with sequencing to screening deep biological of terms and branding good learning really Nishant. talk -- well. our of the deep nod And that Yeah, as produce, Thanks, other OmniDeep, the and deep deep little the first intelligence to our I'll and is a capabilities exploration are question. animals that OmniDeep to term and the about deep of really a it's and a repertoires, ultimately screening bit nod right, in towards proprietary

And we especially And and on experts a tools I'd we'd screening note didn't teammates some be impressive and ion and have are work, the around for team time. already the side silico really in channels been our remiss really some who downstream been on leveraging for some in AI in really work that time. in of our and if silico I have fantastic and important long transporters

exploration then, We a of XX last considerably platform. X:XX:XX] that our that a talked screening work months actually deal about work [Indiscernible or a was expanded couple so and over announced ago it with summers XX and around the bit centered or

drug really many everyone it's structures, examples that the good of of resource crystal of right? of I'll work this as There that's available at of say referencing, perfect. for is where kind of us structures scientific and that a proteins you're actual really discovery some there to else to So sporadic And are classes reasons. But is a and are with concordance not variety space. predicted not all obviously public area in many, generally so

when on described And compounded approaches. almost limitations a scenario antibody or using silico from really quite structure, antigen similarly, cards predicted antibodies predicted structure the are of type creates have AI-only lot a well-known very when verified some which in uncertainties that a only bit a has house sequence based designing not but in as it of using like and

only of and while of sort evaluated be vivo, for And solutions, specific bear will approach a a will eventually may of in fruit solution all an bits silico fact and the never lead binding be proteins. will tested in to binding large in in for instances, need both of to it will also to that and off-target enhancement to irrelevant number subset still it change or vitro expression need in and that

in to But engineered animal the these want built many really have natural carefully checkpoints. as point, of transgenic here is highlight I inherently systems tests

intelligence of lead-up, why weed express our in So a much it test sequence a at bind high brand but try different rather our And pairing model. or and for protein systems call then then it that's partners biological the and that many can and can transgenic edit, out and And can animals the predicted than if that possibilities promiscuously of antibody in you actual why antibodies engineered affinity. structure will, so don't kind power essentially well our that's and long just further directed refine OmniDeep. we we with highly see our silico tool and that

we're biological reasons But we and are obviously, really, our think well. the the it, technology remains we're those it intelligence, but about sorts as core are. I excited as So of element our foundation, the partners leading our OmniDeep into why expand

Nishant Gandhi

in of And Thanks. Great. of economics terms the deals.

there these economics, simpler which like variability versus deals you advanced economics higher as is for technologies, negotiate So type using do terms others, the deals of in more do difficult targets are more like new for your you targets? of

Matt Foehr

we've to engineering. Yeah. to workflow around got That's variety to commitment it's as keep genetic In obviously to it part also of continue really cutting strategy edge, And a continue innovate only forms. core continued not right? the enhancement, that platform, takes of a general, our

chain heavy OmniChicken in be quarter. we're a I launching to As said, fourth going the

we really really have only understanding from And headed. feedback they are our today, the it's where where loop not are leveraging they and positive but that partners

we're that that reflected a of little leveraging of are the let an economics it's of deals. Generally, doing comes kind deal. that work technology maybe to that is when really of I'll structures, elements of bit But the partners the kind our and the kind Kurt of structure interchange then it deal on in comment of the

maybe Kurt, comment But there? you want to

Kurt Gustafson

the for all of at and mean those time partnership are the sign that I Yeah. of established deals. deals we economics part, set most the our

of terms will nature in fixed of sort they're milestones So and royalties in what be.

to would partners, earn service performing we're types additional said, that things. revenue work, of extent being we for That or we the those additional

Nishant Gandhi

provided I new clinic guidance this you will mean, the for clinical that that number you a of in last enter know new -- just molecules one. molecules And I year.

you like Just quarter. consistent like for starts to you wondering, project are new a nice the for starts trend every Do project mean, of seeing provide I new year? XX plan around guidance

Kurt Gustafson

And starts. partners. from for reason it's in And terms we're guidance of number terms for have guidance guidance clinical a number really is of that of visibility -- just of sort providing sort this that discussions the the and only on some insight we in is do the where of

thing program to the As it way it's partners programs. starts, to of difficult kind given relates start us project new really a for

I But here. like I do a doubt tried said, on guidance provide that to have kind of number. the that's guidance would little on So we've clinical we that we ever starts, provide where more visibility, bit extent would where to

Nishant Gandhi

Great, question. you. Thanks taking thank for our

Matt Foehr

Sure.

Operator

Thank you.

next from Please go ahead. comes Your Stifel. from Stephen question Willey

Stephen Willey

just Yeah, access questions. it's technology looking license taking who a that that partner a woven comes the a follow-up kind end-to-end platform on would a partner tech good broader solution Thanks would way to Or that for for the just benefit to? Maybe of Is morning. the the that into OmniDeep. from, with given that is you have stack? full a technology

Matt Foehr

we've Matt. this is there And Yeah. it throughout been as are for leveraging Thanks, really branding Steve. Yeah, we're now our that woven of elements tech This years. that is right? stack, OmniDeep

it And especially to we our an these partners, of larger of employing months. been We've partners. XX part it. important techniques are so some for over And expanded XX it's the last

you if investment continued and continued to right? us. a cutting-edge And will, part around think the your They and know us, reasons So our it get when of the That's of partner they're why the They science to drives about commitment partners one as things the They they question, that we innovation coming technology. that with I get benefit, platform. use excited what to our platform. get I do of think they're about the is answer partners that's well. excited team it's

So hopefully, that there. gives you little a perspective

Stephen Willey

XXXX, And know chicken about demand Okay. think, the do I of of like fourth look have will in -- kind guess the about looks think you I I metrics. deck, chain quarter Would demand that you heavy I the think, then the OmniTaur, one X% guys centered question. the launching asked improve back you be upon, that the how and you I this -- of the think for X% OmniTaur you demand in year. what species of that I in guess, that I expect to chicken slides to guess, heavy per I technology. I it. talked think of kind around chain launched

Matt Foehr

is Steve. have going say new Thanks, growing and are that OmniTaur and it starts Yeah. an Obviously, for is starts XXX but increase OmniTaur, be -- can going when and we had up. I'll in an to edges, interest, area have programs the percentage around actually percentages the shift we seeing of there, increased you over are there.

On the chain interest that antibodies, domain side, sort thing. antibodies, of [indiscernible], heavy industry, the area heavy chain an of antibody growing that's nanobodies, in

see demand So we there. do a

launch and to overall and fitting have about the gives bit lining already In it. We'll hopefully, heavy-chain we color. partners you that time at a who talk probably into we where fact, see the available more we inquiring it December. landscape it But of in do becomes access for chicken when little the up are use

Stephen Willey

royalty-bearing of think then then maybe across And on next assets key metric to the Where expand average expansion speak are now. right can the to you over that of five kind just And to what the realistically three occur? for royalty to years? that portfolio rate can lastly, the the that allow levers Okay. kind maybe you Thanks.

Kurt Gustafson

Yeah, Steve.

two way and guess So X% flat are now royalty. the royalty approved is are that of products receiving where that frame would that sort I I a is question that we're right there

of based up That number general, haven't signed. what go we would I would future be a digits. In kind we've get of X% individual sort sort forward. given are terms But function to the the of deals of in would that, number, on going to deals of generally for I expect, to portfolio, the mid-single expect said, royalty that based in but that on that out And kind it's move [indiscernible rates a we number that being it's specific into X:XX:XX] as of low entire that

Operator, can we question? go to next the

Operator

course. Of

ahead. Pantginis Your next from question from go comes Joe Please H.C. Wainwright.

Joe Pantginis

Hey, guys. Good Thanks. morning.

a So to going I'm standpoint. from OmniDeep I guess approach marketing

whether inbounds from platform, other or you're OmniDeep in out you differentiates overall say your whether would you So marketing silico how approaches? there get

Matt Foehr

Joe. in built Really, multi-species possess Thanks, say, at up of then core, technology. the proprietary the it our that many, foundation with and databases many, over Yeah. have starts intelligence that pairing many repertoires, biological years many doing I'll our is programs many, that deep been by which antibody we cutting-edge

an this I As been area said, that's stack in our is tech years. for pieces woven throughout

Deep internally into to over in of and as in. deep that sequencing that really, that the pairing is over of deep up is invested animal built had some repertoires, we our Again, the OmniAb. But to acquired some that that formed But have that more been it last it really and organizations of we've learning we've the term foundation well differentiates deep time were a biological the we've XX what systems had intelligence with the the capabilities of the elements nod these as transgenic capabilities. XX screening expertise leaned and capabilities months, leveraged some deep tools

of meeting week be PEGS, who Bob And said, where PEGS launch be the with at work this Boston, studies also we engineering presenting some heads this at will as case around sort systems our Chen, in business already next targets I capabilities, been as benefiting creates think these and of that areas the our realize other where will this NKpXX I from things some are like able partners really and power within has highlighted, to model. kind partners

Joe Pantginis

of are everything I terms for quo there to both the with you. Thank guess little questions, then you, And helpful. status guess, CStone any sort announcement? housekeeping or that's of expenses I the No, changes two

for need from this regard to two, key come infrastructure any number at point? investments And OmniDeep, example, that to that

Matt Foehr

can I assets announced no yes, Joe, expenses. I'll do Yeah. to at change economics referring change from time-to-time. to that CStone to of to rights commercialization times, Greater Kurt let comment Maybe sugemalimab comment development And Yeah, and We've on in there's on change they the week, all hands the Obviously, outside seen earlier you're China. there. at regained us. CStone. no

Kurt Gustafson

Yeah. expenses relative or related any of No additional we're to these have. -- we programs sticking still other to OmniDeep with the that guidance

to no major So change that.

Joe Pantginis

Fantastic. Thanks for the color guys.

Matt Foehr

thanks Yeah, Joe.

Operator

Thank you.

comes Souda Securities. question next from from SVB Puneet Please go Your ahead.

Puneet Souda

the Thanks Yeah. Matt, Kurt. Hi, for taking question.

constraints. on give small are you So a hearing one, in us marketplace view a seeing what biotechs pipeline? the of first broader maybe funding given can terms development within business the one you just Maybe high-level emerging biotech we're and in there? What

two the discovery quarters? hearing then the XXX that within next of that of you in for are programs you And have, sort potential terms also or anything in cancellations

Matt Foehr

Thanks, Puneet. Yeah.

of you right? last just the attrition of I'll they're any your question. of whenever business, comment our And net we attrition, numbers that's course. on course, numbers, net natural at of of part the pharmaceutical report All time, do first, see a So So we are attrition. report

XXX programs. But say, environment, do I'll in first your or and programs as grow our macro now of vantage for it's number of relatively basis been the and I on in we point on was time, partners, partners answering smaller over number think point really given obviously, to we've complex. XX that different historically, more those cycles question I'll variety easy have through well able industry raising the we note the as capital question, in your interesting have for of on like an the a students are funding and But been industry viewed of industry a our macro annual in where and times times partners when active some

for to us and of that speak and global mix our cycles biotechs, and biology. stakeholders value create of diversity our have I'll specifically brings base But big as the with business, more the interesting start-ups to come who with think say long-term partner lot I for our And of diversity power business positions with pharmas a a well go. that

deeper continued innovation. informs obviously our our creates we That partners for with informs around innovations also say, Our -- loop I'll really the positive call relationships and conviction our feedback platform. what

cycles these I'll when -- say I to differentiation, innovation you that well to to get them that us discover internally innovation solutions, the is innovation. new but come drugs say are broader see they true partners us when our lot landscape, in and if and wins, to will, the why this generally, times help also, true as that that's you to a And for come team scientific

So could if the Sure. landscape, some sustained, are macro at things of some metrics of that seen point? the some in influence our

how we will that. positioned to not. odd and really win be we are we would that absolutely innovation our it because of think it like say I could But said, that that out, do think

true. Our and of deal, dialogue scientist team majority business interest or migration be that deals The extremely to inbound continues vast busy. have development our from remains come

used so that leaning by We're into, I'll or next dozen Xx a the And half we a increasing over XX months. about We are to conferences. say, a conferences year. more about do

bit little there a hopefully of that's color So you. for

Puneet Souda

Yeah. that's great. No,

under a the offering you're traditional the potentially On one with you the way was that to on it of done resonate is your have customers? is, model, sort you sort can is being the little of how model business where talk versus of us work sort cost-effective about if leverage tougher of talk how can offering Thank what more the market to roof you. your get some in competitors. do you bit Can

Kurt Gustafson

in is terms Puneet, it. of it's the highly because scalable our we've Yeah, way business great a question, structured

the capabilities on partners when screening the we ship of cases, do and in deals to have the work done. they've we the get type as rats. inoculations, for themselves. example, species that -- do an they many very the kind in them us, that partner. reports have do the We on They work little quarterly the And use, the really just use So our come that case, to depending OmniRat we'll we of

us So is theoretically in additional terms costs. infinitely without OmniRat, of scalable almost business that adding

do of When partners only do ourselves of actually we pay it having to to the business and to flexibility have that that us on and the to or has we'll extra we're screening OmniChicken, extent this that. and in for we right? and the wants flexible go some right, all chickens. can the that. to comes they for that sort the pride because work we work house ones and But take the come and over model, work can the go So end optimization do But of where front do ourselves themselves, that revenue capabilities do them, partner too, those fine, service work, that's earn

model terms operate So the with themselves. many, fact of more that than our partners business much to we our others the majority many doing the cases, scalable in in are way partners our work that be tends and of just the

Puneet Souda

Got it.

guys. Thanks, Great. Okay.

Matt Foehr

Thanks, Puneet.

Operator

Thank you.

comes question Mah next Please from Steven from go TD. Your ahead.

Steven Mah

the where maintaining Scripps to on animal an like Thanks quarter. for when colony me, you And licensing that's work license deal, the confirm Is the transgenic Scripps and maybe questions. like Great. -- is maybe congrats themselves. doing doing follow like And can that like right? the seems a you're for on on the OmniRat question just license it Puneet's on up a

Matt Foehr

around, on focus on we started one to have continuing specifics right, into just the Maybe is Yeah. academic it year so describe workflows of specific partnerships partners, leading advance things for Without the deeper I'll -- over going generally to last with the -- say, I'll we or institutions. basis. certain a

history first, a biology. up example and We've innovation and an that of an a and others only board of through also And academics, Scripps is our Scripps of not through has great example the history built an of network that engineering of kind of that. got we've but genetic organization is interesting

So they our or want access taken access to animals.

Cessation brain from Therapeutics, to able in seating history one a then are using developing academic new have our we've there, protection that is to fentanyl it's novel these for ones of instance, the these sequestering really, And the immunobiologics done of completely technology And overdose. by assets we now of approach companies. of with are that fentanyl is fentanyl benefits Cessation a spinning came as addiction Institute, this prevent sorts deals, really more at enter of these innovative the in the and/or have out a that there, and offer Scripps to to with other and well also overdose -- out institutions treat development is what before durable and licensing

company. this kind an biology So partnership led but interesting forward leading instance assets had who to through academic then it's center some interesting at a novel that area science is a of of new a being moved now an where

Steven Mah

And like do platform appreciate themselves I a can the Yeah, and economic you themselves where a where the signed deal maintain the the possible, like structures second deal if give for full of sense the mentioned Neurocrine work a us like quarter? in they transgenic colony the Okay. licensing you color. one I versus animal with

Kurt Gustafson

Yeah.

of sort lot the structured, we royalty upfront, say, In higher don't partnership terms or all deals are rate you, for economics going the do then work of going to are we're that's built a a to to same, So -- rate. at if higher don't way of the royalty the come right? we hey, the

that they're The do the in have they do be the some idea in not of economics going and Because do to work that partner program And to on established partner a we or you'll where do lot or whether of whether is for upfront. payments of work OmniRat really not. and or cases, a terms an might set up they a tend where royalties, program they're milestone we're themselves. all the independent of to upfront

they is with chunk in in next the the terms revenue that's milestones The will of same, that do of earn work. we're as then where big service doing a be although additional the we whereas the work. to and maybe decide program, would royalties of do economics OmniChicken, go And program we OmniChicken case

that deal a would we're So the would the the extent collaboration additional work sort is that difference same all that do, basic the is earn. would for structure of additional we the of doing revenue be partner the programs to go

Steven Mah

last on animal that can transgenic OmniDeep. be as or And partners others one route? helpful really a Is doing to, something are the for That's like for just a example, service license Okay. this monetized color. me to software, that as

Matt Foehr

our but number the could proprietary the We've think potentially to about around stack, elements use I a could pieces word that elements of right? of technology you a say got could, is of technology it that answer from it that our of one lot portable perspectives. of

But would with signed number offering of But partners a for and no, generally, well. for as we and their our how proprietary it moving forward this contains been would technology more have them do facilitate that's this be we of tools, of who variety be programs us, not efficiently. leverage view that up it, to right? We a licenses which built quickly

Steven Mah

Hey, questions. Perfect. got Thanks it. for the

Matt Foehr

Yep. Thanks, Steve.

Operator

ahead. Group. Your next Hewitt from from Capital Matt [Operator you. go question Instructions] Thank Please comes Craig-Hallum

Matt Hewitt

funding Good But And the you of update that of programs, was I providing whatnot. the apologize morning. of active first some of taking you if asked and I that is up, can for questions the you already Is nice that thank do have? bounce growth routing break there number you ask for the a currently number you calls. about one some what partners despite Thank out? that number have kind on -- questions. curious, in I'm

Matt Foehr

OmniAb Technologies Assets. Yeah, who of end are reporting and the Matt, XX partners QX, at we're leveraging

Matt Hewitt

continue set? to you something M&A of companies, to to is those your add And OmniDeep. current strong Or would the your That's or to great. on pending would tool of given build congratulations Thank the you. putting some I'm you that and of internally? your is pressure on contemplate balance But some that launch out cash Thank consider is then the smaller curious, environment kind you. preference

Matt Foehr

we are less that through members on as And built technologies our the that Yeah, complementary fact very in well we've acquisitions of another, Matt, became one six years, OmniAb than obviously, of team. of kept science question. many what of six one founders the of that with Great doing Board proud right, companies those of thanks. fit another, key foundation to the

and right? that is important. something stack have validation. successful, or promise private are DNA, technology teams M&A the companies brought who that never really deals, technologies quite always technologies private that in right? right? out have I tacking the have is sector, in We're so of our been cautious And elements to Those we've in X been which But acquisitions of these are on So our early of us validated of stages think, all

So internal keep it wouldn't are excited like relationships That I about like said, the that heavy chain into in launch we're about around do, always also in and have partners I QX. OmniChicken is in innovation. that said, cautious about That are we are feedback rule number we like OmniDeep, our assessing. can we something but that conviction our built from technology think out to and do investments our we'll our promise thinking continue always and certainly It's inform positive we that deeper loop that investment leveraging with right? technology plan, we'll to is really something deals,

could or academic way where growth are So partnerships to out say, always we things interesting capabilities add new they companies, think whether a or on, programs. at to we yeah, other will and we long whether drive come of out come in areas certainly looking of bolt those universities that technologies on

your that question. hopefully, answers So

Matt Hewitt

much. very you thank Great, Absolutely.

Matt Foehr

you. Thank

Operator

you. further questions are time. this at no Thank There

proceed. may You

Matt Foehr

call and participating questions on you speaking next I'd you operator. you, your engagement. everyone progress Thank thank quarter. our We like forward keeping on this with morning's to Great. updated for to and and for look

that's Hutton with on Craig-Hallum today also L.A. the be as B. that in to Minneapolis. I up in out the here just we'll the conference the be addition investors attending in road meeting want Riley York. Virtual the attending to mention Conference New Conference Benchmark area, in as Capital conference the coming well also We'll EF

So again, great have a all, day. and thanks

OmniAb (OABI) 11 May 232023 Q1 Earnings call transcript