Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to OmniAb, Inc.

Second Quarter 2023 Financial Results and Business Update Conference Call. [Operator Instructions] 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.

You may begin.

Kurt Gustafson

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

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

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

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

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

Matt. let that, with over to turn the And call me

Matthew Foehr

most platform only start fully our business discovery OmniAb's and -- everyone, business the marketplace second overview That an antibody At to cow-based Kurt. designed of rats, with human core quickly a number diverse efficiently. chickens transgenic the is help mice, In in platform. OmniAb deck. on for that's the and and partners. bispecific on technologies. Thanks, to innovative call. therapeutics X the simple is I'll model licensing based model having Good for fully proprietary differentiated Slide industry's and includes our human systems host technologies thanks today X-species it's sense, bispecific a by here innovative quarter afternoon, partners joining technology discovery with conference of discover of our the

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to to partners fastest-growing our the antibodies the research with larger with position or in XX believe with is with capitalize space this than programs great drug be market various of opportunity years. industry in parts over on a a to The size access within OmniAb of we're expanding $XXX We unique technology couple and our of XXX and are one a expected of There offerings. development. antibody billion stages to technology

modeling, newly technology and applicable artificial our discovery large, which databases, technology our dynamic to deep OmniDeep suite of structural silico capabilities, is learning that platforms across this models stack, machine further our May, in a innovating multi-species branded our simulations, constantly introduced partners' we We're are enhance and offering, sequence intelligence including past and process. antibody molecular

launch fourth In detailed say branding quarter be novel until that Gap] addition, I'll and this later OmnidAb we excitement around more this we our as we when it. plan will And to technology that year OmniChicken [Audio year. heavy-chain-only introduce our of the in

by quarter. of of In and team continued want just deals to here innovative one as second new that on the as Stanford by license as closed one during I Merck, slide, new the with platform growth, X for license as as Biosciences we and a QX, and next Slide well Neurocrine pharmaceutical agreements, frontiers University Inc. We're discovery Hospital. X shown our number rapid with to poised this reiterate Children's agreements platform pushing the with signed products Seattle technologies. the enable a mission-driven team, drug company discovery On we're

Merck, than this is active of at confused a Co., a from U.S. Regarding of a a of and year also the slightly be is Merck with new with count with the agreement. We to whom reached partner we up end, quarter ago. XX not total agreement as partners just & Merck more German an KGaA XX have

our the understanding Our and to model. this growing the and expertise our our industry using are of prioritizing companies, to leverage innovation. our our and in-house who list efficient allowing garner also discovery deep leading-edge partners developing partners. of committed a the in to global pharmaceutical scalable continued partners bolsters as of are We platform collaboration a Merck global in effective current who is to our interest future services, the our to as to like of lives, for mindset leaders well power believe technologies the improve discovery leading business Adding a science highly continues to us testament among and diversified needs Inc., scientific commitment group for industry

approved XX or regulatory X, of end Here on Slide programs commercialization programs active portfolio review the in increased number under to of the for with at our QX. XXX clinic

portfolio. net a X During programs total new added to our we the quarter, second of

to we I only was In in attrition as partner Importantly, industry. expected note the quarter, in discovery want we is do the report attrition when stage our net so seen this pharmaceutical attrition, that count, of of pipeline. program

royalty the XXX June, The slide zimberelimab are in phase also and in I, addition pursued both from Phase development. Phase XXX of in programs breaks X regulatory side sugemalimab OmniAb-derived of well In consists revenue right-hand discovery recognizing of now to The geographies. partners in XX programs the clinic, Phase X of preclinical X programs programs sales stage. chart programs pie utilizing in currently in which the down X we're under our had of the the are being in end review. as drugs China, XX as on stage program by III at of other II, our commercial There approved antibodies, and

nice progression of their as number to preclinical programs clinical right stage stage. X some preclinical trials the III BLA with on first a into discovery well, shown transitioning to with the regional and with moving pie quarter the the human X on from from approval, saw Phase stage X programs Slide for chart the stage as in filing program We this moving here X programs

that of active from programs at quarter, features Our net mentioned to this modalities, again is programs the XXX XXX I'd note year-ago count has as large portfolio and program period, earlier. second noting I like to the a in of diversified close increased of of and the of growing variety a that here attrition. partners formats utilizing the set up also

funding some Despite and continues environment our our additions and position lower of unexpected in number net players increasing OmniAb very macro an velocity the see especially of that in it's expand some that existing don't of the partners. to year, portfolio for business feel influence partners. growth factors evolving programs to for including of smaller program our from the compared and both constraints, financing new of We entirely industry's challenges, industry, combination solid a of can a of slightly metrics. a is And last new active number growth of active we continued although with some

Slide Moving number now X. on to

want of study second I/II year, of note in in initiated mentioned, the X who first expect we subjects X half safety, clinic year. programs year-end. to to indicated more the quarter, range new now clinical with reached investigate Pharmaceuticals enter X the I that new Phase X clinic to efficacy have GLS-XXX the Immunovant XXXX the we'd X in that I of tolerability X before progressed solid focused subcu of we GLS-XXX entered this Gloria advanced X, clinical that clinic I on new tumors we and this clinic X already monotherapy initiated a As Also, By trial of which as enter programs Phase the treatment. potential following for is now standard the upward a when X expected new with and end to with and programs a June, inhibitor. a in to year. the to began, to a the entered IMVT-XXXX, an FcRn We've programs we're preliminary combination had

with numerous their announcements And batoclimab. I'll Slide XX, made clinical slide, progress second quarter of about number partners public this the during starting recent in commercial few them on and Our highlight weeks. and a

the revenue was the myasthenia of indications additional and pivotal indications second started milestone in of TED. are additional gravis work studies generalized in quarter, Phase into earlier These batoclimab we year. the III related to earned During X CIDP that in from advancement

the gravis. of Phase they're NMPA accepted China's of that Harbour announced same indication, application addition, that HanAll this the a myasthenia trial biologics BioMed later for treatment initiation generalized towards for In announced year. Japan its in license And III progressing

As initial half that expected this trial for Immunovant data next-generation the are anti-FcRn tolerability they've communicated Phase evaluate I of the I that to initiated a pharmacodynamics mentioned and IMVT-XXXX, and in second safety, year.

and via which obviously trial. our to was Therapeutics discovered One developing partners, collaboration indication that to for has urgent Cessation medical overdose, with Research newer Cessation Phase it subsequently development. of licensed compound authorization the I first for that unmet an a Scripps important an is and of CSX-XXXX fentanyl Institute prevention this initiate clinical Cessation announced received they've need. is

validated for ion collaborations $X data Therapeutics Phase Aptevo in milestone a This it and diseases target payment we to trials AML with drug APVOXXX, research will and And Kurt OmniAb initiate this. achieved relevant AML accounting GSK. million plans to the bispecific lastly, neurological a our II triggered for X one its small discuss molecule progression of genetically inhibitors a clinical of for announced for channel populations. progression candidate, that in

channels capabilities pain, biological key excited infectious this of technology as in therapeutic transporters range channel they differentiated cancers, others. and highly particularly of in many and hold and GSK We're with in a metabolic the indications, processes broad of changes platform. Ion that potential cells, variety and neurological a our demonstrates about components are it rapid diseases including ion involve program diseases,

these result, a a ion channel to opportunity, been challenging discovery to industry the although As drugs compelling targets. high-value it's a identify for drug area provides

applications assist anywhere. target ion our experienced leverages core and platform believe have We of this believe can one partners OmniAb in a variety capabilities area, this ion chemistry teams proprietary of the to and medicinal most in in of our in assays, and therapeutics enable discovery chemistry discovery biological ion silico drug formats channel computational channels the combination experts advancement expanding an of we our their class. and of expertise we continuously targeting of Our in channel modalities. a We're against differentiated capabilities

designed are attracts that an bank drug this accelerate extensive and to cell lines, have reagents assays element that's We and custom capabilities. partners development, technology our what and ion of to channel and discovery of

these provide standard royalty have more typically and access agreements to collaboration as our get are These percentages structure exclusivity a milestone for on higher and identify, various we As for targets higher difficult accordingly. result, targets, we deals and payments than value agreements. higher platform

with royalties also In in the neurology are Roche should discovery agreements and alone, on that programs be to in billion is have targets eligible targets X for commercialized. along X X discovery partner these phase. with in we're GSK are We another total, undisclosed receive for program $X milestones phase that

why positioned slide and last can describes global human well key we areas focus going an impact XX in on Slide is And which highlights our And our our growth this believe and make enduring we're industry on future forward. deck, for ultimately of number for it health. me,

Our our the scalable, power innovations and on and at with and stakeholders business programs we're effective of and in by expanding technologies therapeutic partners well. in discovery focus every A it's employee highly building to of focused continuing foundation focus And stakeholders present we guided Directors the do. in Board as and and on is that of development to invest increasing for here value is is candidates. what collaboration

here the member heavy of OmniAb, I Directors, accomplished Board also acknowledge here our want and on this hearts, executive as continue to our of building team who grow our a announced that, I'll we're at add with While expand Patel. that do contribution is OmniAb. the longtime a what Sunil's to And our and was beloved biotech a passing Sunil call we I Board colleague and today's we earlier of important work, legacy business. Sunil do was technology week, co-architect here honoring an mentioned at

with we finish updated And Kurt discussion strategy. the back that, as now second to back I I'll over of execute financial over before we Kurt, quarter community investment for that our look hand call results. keeping pass Kurt? to the to by our I'll And on forward now a saying it

Kurt Gustafson

Matt. you, Thank

the periods financial carve-out accounting company. basis, historical are reported reminder, prepared derived records Ligand's if prior from for the an a independent which OmniAb a results As were on year were as

As to differences comparisons reflective in a the is result, methodologies underlying aren't operating true true for prior business primarily This given of for and certain the reporting. corporate periods structure changes. expenses,

that upfront our stack, payments related programs. recall on payments sources, access payments discovery to technology including derives net from several royalties and typically our when the You'll to partners clinic of contracts related to OmniAb partners, revenue work for partners' our sales milestone service we progress in do for

and progress saw additional that in quarter. results. was different by revenue compared pivotal to milestones Total start for of new $X.X specifically hit second $X.X this and increase mostly milestone increase offset revenue, to milestone related quarter, X in of million service in to related in The prior our We license revenue million this year a the specifically was decrease for were XXXX with a things. few moving decrease on quarter to studies is So indications. quarter revenue batoclimab, second an based the the

portion been partners. teams completed programs, the R&D our our certain on off the and have programs to First, work of we've these at handed

for milestones result, have service and to these advance. earning we revenue no programs should earn these but still longer a would royalties the As are programs, opportunity

negative is the amortization approximately that was of accounting to $X its the X.X period ion was million over be be Second, amortized extension of of longer that research just will million this recognition new of one being had extended GSK adjusted the the initial research The impact reflect period this the initial for spread payment channel research onetime the The years. our the revenue period. by It's adjustment new research eventually length recognized. upfront resulted all programs a schedule of quarter. $X.X $X million This full in period. the that over will

third, the as be research is over service recognized it research milestone period GSK program. of $X progression program relates this million And this to amortized will and achieved that milestone, as the the revenue

amortization bit a this be period, than bit the remaining As of recognized its halfway than this program is and a rest the $XXX,XXX in recognition through amortized the will period we net negative more current new what the change result have impact of relative a The in research period. the trend quarter research milestone the would to the more quarter half about the milestone been. and in created over of

Turning to operating expense.

was in in $X.XX for $XX.X higher year Our per with a to established was due million increase $X.XX G&A with the and quarter R&D a net million compared million $X.X second personnel share quarter, $XX.X the million costs QX, the loss of costs was associated to quarter facilities. year and year primarily to for increase The new compared net to or loss headcount higher expense prior $X $XX.X second in newly the the the associated was Similar our the or million with $XX.X prior million expense share prior to period. per being increased public related other costs versus company. quarter.

Turning sheet. quarter short-term ended with cash, total of to and balance We second the $XXX.X cash a equivalents million investments. the in

deploying keeping and scalable. we're committed Our are capital business it's our highly committed growing to intensive also the model our capital not while is edge, cutting business And we and efficiently. technology to

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

some quarterly underlying we of that results, the I'd a few to to make comments trends see. Turning on like our

for recognized generally revenue Excluding revenue the teclistamab, to grow. milestone we total expect specifically

of revenue However, the be majority milestone our near- milestones of come predict. will payments in from timing and the to medium-term can difficult exact the to these

result, a our lumpy will growth quarterly be revenue likely on As bit basis. a a

had indicated good be expense operating actual we forward, going a QX quarter think which our about would baseline would from that results our we I As XXXX last grow.

going were quarters are quarter pace of operating R&D with and G&A spend of our expectation, as slightly trend forecasting consistent will that that will grow in both moderate and than more with the we second being anticipate this continue R&D G&A predictable. forward The results more our subsequent spend. We're now expenses that

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

Operator

[Operator Instructions] Your first question comes Souda Leerink from from Puneet Partners.

Puneet Souda

telling are could about potentially us have about So stages Matt, And talked about that you you I. -- potential flip at they that you because maybe that getting you're headwinds in and But see first cost projects one. us about value you that. how side the the of a they pointed as little out, Obviously, can -- bit to a of terms about some what partners talk to they you providing maybe market. think the talk do the into in bring to what's you Maybe them as happening discovery the and think of they what reduction. and Phase there's

Matthew Foehr

medicines. new neurological centers, what of and partnerships develop new medicines. Seattle which Neurocrine, and the a of novel to Matt. I is that, and right? partners, medicines translating I things is industry focused are life-changing and This become Stanford to cutting-edge quarter, Merck, thanks. -- success XX-year-plus highlight disease entered committed is is science one with really agreements well-known leading Puneet, this I'll question. leveraging of a on academic obviously, history also in as the both that new appreciate Neurocrine. of we technologies in into player, But which new X the biology the are we space. both Yes. global Merck force platform new course, Yes, pursuing with license obviously, really in have innovations into leading-edge neurology of mean, Children's, and their

the about value So lot tell a we're sometimes well, it's the but not existing us partners right? how that partners to only new it's them, bringing as

lot in obviously faster potential discussions they're technologies your with translates question them. with licensing for opportunities into to obviously interested success in So and into we why get deals a take pace terms clinic. we unlocking that, to deep our of That how of and do attracted partners that's the they rates into quality for to increased they're And antibodies us. finding why areas our see of do then of

continued that our I obviously, is And think and an commitment -- by of our innovation, well. also, our part more innovation also a important a with there's I to as deep recognition recognition think, now informed partners. broad relationships is

like we So feedback there's call intelligent headed, technology. our sorts make what we and -- of where to where get a like sense the the that industry loop, to an investments you is and innovations informs in want of

end So about at opportunity the speed our out it's coming of platform. of the case, efficiency are product, and of really, and this antibodies quality in the that the and day,

Puneet Souda

question, a that is with gain to then what me an to were Wondering with I China. And opportunity And for I was sort to follow on on biotech I China. you let marketplace? share could -- then worse, -- mentioned that more you're in if you question Phase seeing wondering get update just was in now. there us the is it. if Got trying of in the know get you the to situations what up I funding I anti-LAG-X Gloria mentioned trial

the known point. weakness at that's stages well in seeing in this China all are We discovery

seeing you're what wondering geographically. provide Any color can there. So you

Matthew Foehr

the I'll quarter Gloria China. part that, first, add the then Kurt China this clinic that Puneet. take in well. and take entered Yes. as some announced color maybe we Yes, can Obviously, I'll

a that But clinic of China of what progress can progression as see nice our OmniRat was China, of of And the maybe, of then our years probably it nice of clinic, through want are in approved come little to the in ago, have pipeline bit you obviously representation assets. visible of our well. out as we Kurt -- lot couple a -- Kurt, that on approaching A to talk terms well? some always it's that that, with to later-stage comment and or those some partnerships with pipeline. really struck programs really So and in the very drugs see early clinical out were of you quickly which a is see programs out

Kurt Gustafson

our they mean, knowledge I if I -- will the one this chain I partners issues the supply they year of issues challenges alleviated expect been those COVID. the year. in have Puneet, earlier that Yes, forecast, any in in year, half there part with first you to supply the disclosed But partners. relative of to don't will, sales due also that know specific our the of half second be have we that that indicated of chain

we sales pick And so obviously up. back they to royalty on a earn that. And were forecasting

of So actually a funding model not economics is question, conducive really first the and the paying -- people think the the I they're think right? part use with environment, continue partners they success, money we're large our of designed success, not into a actually align difficult partnerships have to our in they're do your -- -- pay discovering until moving it difficult drug I in sums if that to are to because sort they clinic. really paying have of or our for

growth continuing think our and still So key across opportunities there's I metrics. there, do to that we're see

Operator

from comes question Securities. from Truist Karnauskas Robyn next Your

Robyn Karnauskas

with you'll able be to couple off a start I'm [don't going to that know] I answer.

since about adding -- are have molecules can value. you're a economics lot of ion those given develop those than scarcity talk more platform to better little programs? give biologics that you the like a your they Like those think to bit if different And pharmaceutical -- able -- have can I programs channel to you better would being any are deals have small economics do the they they and of are Stanford your structured So the those how is color? with how companies?

Matthew Foehr

structured, -- I'll cell with specific we et screening granting programs. partners. to those is not really, target only Yes, channel and that technologies, cetera. answer They're on accessing question target -- the novel programs are lines, the novel technology but your with answer short the novel first reagents, ion to Robyn, capability, are thanks. second yes. exclusivity The the And those way

programs So and those a structure. with billion with milestones higher X both collaboration, that that in are really our drives ion and GSK and channel platform deck have highlighted royalties the X economic license higher are are agreements. in then that those The today different for a than $X programs and standard alone transporter Roche,

So those is are about. assets Obviously, program the that we today. excited the highlighted answer we're But short yes. GSK

Now first the different of deals. to sorts your question about

quarters, have, -- license centers, We recent a with that also R&D leaned not general those in agreements Merck don't into Neurocrine, only and as confidentiality, commercialization based in deal milestones, academic upfront outlined leaders with corporate policy are there academic an like our in there's we and commercial for disclose are of and typical matter the within industry, multiple just lot structures, boundaries a centers. the there we parts of but leading on we've -- that And are our and interplay deck, are deals. terms in And but of payments, those. have they previously and fall between are there deal deals, disclosed. all specific There royalties investing we

then spun get on to folks generally into the They translate companies. its out therapeutics not platform, of traditional for between But the the an academic differences But side, deals that terms commercialize access pharma drug in obviously, would own. biology. and signed academic it have on a that highly commercial the with, really business these leading-edge center the unusual to there want say, into Obviously, be are to centers. major

institution that difference will company There just the sense, around provisions a they're the only those a we'll to special with really, the at to more how program are academic it. is specific economics deal with similar. have applicable specifically that chooses the -- some work form setting. But when basic are or very provisions So out-license academic

Robyn Karnauskas

a really $X And a billion helpful. is like That's it's lot. follow-up, I guess

for disclosure since been question, my last see working get little then you more a been what those And many. able to sorry need with companies, these So about to to you have negotiate milestones? so bit you've

platforms right lot OmniDeep, you just a nature-based don't design. talk I'd You I and hot so [indiscernible], leverage silico I to that thought that you're to in topic but know about ask wondering believe a antibody AI/ML-based OmniDeep willing It's if I'm question. now,

Kurt Gustafson

On way deals, the are financially, first these So the milestones really as are right? part, our they're deals progress clinical other stage the same typically way structured structured, as just there they and payments are of of which clinic we royalties. is these the the the the larger a mostly of that have because function exclusivity The difference and through magnitude on deals. written

side, of that the On the out going licensed that's and there's are targets the are are channels, antibody things And exclusive basis. types those an people after, targets. on ion as all with Whereas being nonexclusive these same necessarily result, of within fall upfront things and a triggers payment deal what of that milestones But larger economics. nothing unusual royalties. about of they the sort structure the

Matthew Foehr

for for modeling structural it woven And silico multi-species and and our capabilities. and -- out more. throughout and allows in include identification come and learning sequence antibody visibility a comment with And databases, in optimization highly technologies large are or get. obviously the say, to is associated that technology. technologies I'll on of the This Robyn. really in various our counted a suite visible tools a really question AI antibody do question, therapeutic of of and given that sense. or be just that is I'll AI use optimization Obviously, sense AI it happy very models are, of of I'll tools industries our large Yes, say, OmniDeep, candidates the And -- and we popular discovery machine popular these

-- the that, the -- of use AI I of of and Now obviously, question, around also kind sole the might not the of that some think power your leveraging element its of there's there's AI intelligence really biological to of capabilities. well so as are core our that, and approaches. our we in think there but not why be understood there's a lot and only considerations animals, that's AI important discussion limitations And that is much

side channels screening a downstream been in work and tools around AI ion actually, silicon the the using time we've and work Now some transporters. our long on and of our for in especially

kind So long but we out technology in here we of deep organization the science edge our of in and in expertise cutting spirit organization woven good that really quite throughout time. have have and from OmniDeep been these our QX, for rolled of a concept the

And lot just ago, say AI limitations couple for to really story we our landing a successfully of did we of vision I'll into AI AI a leverage wild in a with platform success than approaches. a fact, has a years incorporated we how of that our on But more exploration deal kind screening. portion of been actually the around there's level, technical that

OmniDeep So comes animal of really natural to, the carefully winning really inherently transgenic tests has the a are marrying it animals the them from system a checkpoints. to intelligence that transgenic I'll needed engineered biological of many call, of select our built because what as antibody power into

doing can So out. in test and different obviously, rather it try you those millions sequence a weave of can just essentially than biological possibilities system And model. the

amounts leverage downstream with lot power large And of of that I think that AI from we Now that's data. other a do ways where from. and comes

sense. technical got hopefully, makes I there, little know I So a that but

Operator

Stephen from comes question Willey next from Your Stifel.

Stephen Willey

pipeline and, on of discovery I peers provided. your surrogate of kind in spend the that macro R&D the uptick But you the of just the have commentary front? any of of attrition you broader we're that across about late. of appreciate efforts better of just guess, some I expect know given reprioritization I starting of that space? kind of kind see the And to the would you much I the streaming challenges some be of to program of have of some that talking been way macro some guess, seen

Matthew Foehr

Yes. question, specific there I'd attrition a on mean, I front. really say, nothing the great Steve.

obviously, noted, all just just attrition discovery and say we is is at that attrition attrition assets. part natural outset, fail, quarter, This the pharmaceutical we of the fact there As in industry, the we -- is discovery obviously and saw last in the many only I'll a stage as expected. things that's know, phase

I or partners specific potential year, Looking therapeutic an certain at Is a very are included thing? instances? difficult exited little last fourth Is focusing areas, just up of those we say. count clinical to saw partners may have difficult that attrition to areas larger other our in assets in in those hands, macro It's first anymore. not bit back but themselves bring It's say. stage, as a X quarter the therapeutic example. in that specific had program program that the

it's that I we metrics always think keep So our dialogue hard having with these all answer your the specifically, monitor and obviously, are but time, partners. all to deep question

you gives little that hopefully, color. So a more

Stephen Willey

But the of these, guess, target I do X and would ongoing these green kind space channel kind think being selected targets have drug. to that GSK guess, again, characterize ion how And in do of next a or itself? to the difficult all space, over exclusive difficult work the Roche, that's claimed for that much in of by been how I you years? Okay. ion of hierarchy of guess are that universe that those channel target are kind are that understand you in But kind the know within I basis. X, I have things more on either X, the I they've you that of And out-licensed the space targets these already

Matthew Foehr

-- always other announced Steve. confidentiality originally milestone of targets, there's question, we and Yes. targets things the relationship considered phase, are channels description it's say and struck ago, when was The transporters, this high-value ion Great pursuing But a at an just are GSK discovery generally quarter. with couple these the folks progressed agreement for of And so Obviously, amount right? partners in that specific years was well. of I'll that considerations around And disorders. neurological is a the it respect substantial obviously, we course.

generally. And I'll just comment

this think by innovation a has XXXX. of area. the stated goal to agenda really GSK They the in impact I ambitious billion people a health X.X of positively publicly end

So and with we're an really to that's aggressive and ambitious be excited goal a collaborating one, them.

as the high-throughput well of our can think we've leverage the I more lines as which well as screening things and as think I kinds to are modalities, are of these and multiple future. of reagents potentially in where sorts ability other attract programs that partnerships things cell distinct these the got and capabilities

Operator

comes Your Hewitt from Matt Craig-Hallum. from next question

Jack Siedow

for was and been kind for you've Jack just reception launched Obviously, what OmniDeep, has Matt. just is the recently initial curious your on of This I customers?

Matthew Foehr

say, about in taking PEGS research partner potentially big and attended, some room May. Jack. Thanks, innovation presentation, partners the in of to not in Yes. programs it I'll potential area the our partners our that BD well continues from I'll an our a only almost Conference And the but in and that launched approaches new very increase very a and success positive. big terms is at And with existing partners to we immediate. programs, team in focus continues talk team Boston as feedback the say it different room it. feedback was the -- of with rate We the obviously, to area, and were who of on be sitting

positive. So has the been feedback quite

Operator

from comes next question Cowen. from TD Your Chad Wiatrowski

Chad Wiatrowski

to Mah. the you Matt, on from pursuing Yes, or Could congrats channels detail opportunity well? give tech they're stack milestone. more also peers these as GSK Chad what Kurt, at claim us Steven ion an on it's difficult as some historically as for that targets who differentiates such your

Matthew Foehr

to Yes, about sure. Happy talk it. more

I think that our But our a can few of commitment the multi-species space. our channel foundation core highlighted differentiate to beyond expanding things we the approach little right? one is about a present. bit the ion the the continually that, technology, -- At around of capabilities we

leverage terms of high-throughput of variety extremely in here modalities can we lines a intentionally. that be that in building important I to in different applicable especially decades a I between -- the is different that think others. We can back have And blurred overall, date modalities, spot a becoming and are really that are history approaches industry creatively space this screening than the where where really long think and at we where

We've other discovery That's really you these when built also up a many are Roche for marry of our And does, that's with up think, cell GSK specific that sorts and attractive areas why repertoire unique discovery position pretty these partnerships. I years. us and facilitate generation -- been and that's these bank fashion. some of lines specifically designed to of us it think in are to built technologies, folks And something in screening like in over areas. the I an custom extensive that

Chad Wiatrowski

precedent economics Really sort to of helpful. regarding channels, targets led exclusivity has And ion I some downstream that but appreciate the significant improved there's of upfront payments.

the So is in there to upside an some here drive near-term? opportunity

Kurt Gustafson

All higher that always payments. to so leverage success deals a that become right? we I are to the we that show think for try And negotiation, extent

difference of as this this we exclusivity. the the antibody the think a historically, more business lot between look -- been and I just on has

about The other out thing the that talked we side expertise a little that point channel bit I ion on would the and have. Matt

a that there's so the are but part, with on for programs, then work. we license do exclusive an channel most continuing these a ion And for basis, all to target that of

the the million And they of was the cases, comes where $X and so revenue that portion are the example business. specific from the upfront sort being over big channel that ion pre-paying side paid the research generate amortized today partners the a gave of of service on In program many that period. we GSK for

economics is relative on it's function are outsized a exclusive just a relative of side on lot just antibody that we But of to generate that that an of this to business, So it, call basis. basis. the able

Operator

from [Operator comes B. from Riley. Instructions] Yuan Your next Zhi question

Brandon Carney

Yuan. This is on Carney Brandon for

talked some the biologics far about Can the build cancellations what on of you Can so on you're the them? comment regarding to related you've trends observed clinical to in stage or you tracking projects been the stage. You seeing you've clinical comment the trials? delays discovery

Matthew Foehr

we we at At X now of there end Yes. comment were comments a today, said to focused new of some And clinical expected this X here. Matt. entrants Kurt on This QX, we area is year. X. X X we this When the year, already higher I'll we're and to have started year. the actually

so And the progression we're into or clinical clinical graduation stage. nice seeing

We into out some to that preclinical, clinic. which are preparing quarter pleased assets means enter this see the they're move to of discovery then

portfolio. if, to Kurt, anything progression So we you'd want I to the that? nice are add know, seeing in don't

Kurt Gustafson

clinical of study areas or to exiting partners seen really We of have not lot actually have it's in of any clinical therapeutic that not of terms it's we that. as something attrition -- of the function opposed attrition a a been sort seen, like a failure

said, this clinical attrition it thus Matt far experience relative side darn But industry to will happen. good and on actually As pretty part our is been business, the has of averages.

Brandon Carney

Reduction Have us. one one due in That's shifted biologics any helpful. Inflation last And noticed the development Act? you from interest to

Kurt Gustafson

a on business business antibody side. on just mean, mean, the I'll I -- antibody the make I mostly comment. our is

just great see signed new tough say. more people have the a given had So over by offering moving Inflation is by that molecule -- don't It's given benefits platform, We more and that probably we develop deals players to to quarter. place if believe and the this But Act. I X drugs that antibody? afforded it a evidenced attractive new continuing the an would attract antibody's we know. we Reduction we've we're we a to been the offering, got that small as

don't know I Matt, So you if have?

Matthew Foehr

Yes.

I an because of there've as small think compared scientific shift a those in and rates -- from that technical antibody-based been success success of molecules, the rates. I higher evolving higher medicine mean, I'd industry perspective, to because of add the

see and obviously hear we that's know. So and something

a there advance in in that already shift will industry are, there to with thing. IRA. that the XXXX, legislation allow negotiations longer saw and biologics of that happen to But of I'll a number for IRA, are to high-cost is starting, sort which a prices accelerate manufacturers negotiate of exceptions medicines and obviously, tail happening all in I drugs how Now, the and can afforded the the medicines, drug select Medicare biologic we something believe, that's may those say, towards interest

medicines So of benefit the terms and I interest help provide success I But shift. antibody-based the in development medical the can accelerate for was think in predictability think it science that if that the anything, starting there. probability of specificity and already

may anything, if it. it accelerate just So

Operator

Matt time. There Foehr. this no will I back further to the questions the over call are turn at CEO,

Matthew Foehr

investment conferences attending Cantor our you various fall. at We'll in in the Wainwright, next Craig-Hallum in the at the Conferences coming you Great. coming be in well Thank the you. to Capital with at quarter New as and like as We We'll be we'll your I'd everyone and forward Conference today's participating and also be look the on call thank updated in weeks Stifel questions. and up. to fall. York for progress H.C. speaking for keeping

OmniAb, the interest appreciate we thanks again. and in a So your day. Have great meantime, in

Operator

call gentlemen, and now conference your for concludes Ladies thank for this disconnect your today. joining, may you you and lines. We

OmniAb (OABI) 10 Aug 232023 Q2 Earnings call transcript