OABI - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to OmniAb, Inc.

First Quarter 2024 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. Chief Financial Officer.

You may begin. you. Thank

Kurt Gustafson

today's results and Officer. This for obligation remarks And first any XXXX forward-looking operator, OmniAb's These Kurt as SEC by after results. joining These statements our X, or the and afternoon, XXXX. circumstances live Foehr, are from that contains by filings.Importantly, on during quarter this laws. Financial required call There in Chief this statements thank of financial section they our good forward-looking are begin, as this you, date accompany or CEO. different May statements the update we the Except conference the date information is the federal made anticipated omniab.com.Before everyone. undertakes forward-looking meaning Gustafson, of our slides I'd law, available Thank like to call. Investors the broadcast, today's conference include you, and and only is comments release could call.Joining to contained forward-looking within to risks website at accurate press today, events OmniAb's Matt today that is call and qualified to any the of me remind materially to uncertainties listeners this revise actual in cause of statements involve reflect time-sensitive will be of securities that all, call are cautionary no President OmniAb statements results

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

Matthew Foehr

including become in quarter, for and the partners. We we're Slide we program #X. moment.The and were our program one with as more net of entering the new well-funded start-up starts level we've we've of #X. And active ImmunoBiochem Slide expansion continued are in single slightly in counterbalanced and a continues discovery in of ever And the visible here, from QX, Boston-based a from very compared we're here agreements #X. again X growth we studies end in with in XXXX X excited about doubled given to of by our base. in business active by technology human to lie see here quarter, technology to continued the discovery from here starting X our with based launches prospects recent in growth new potentially during Georgia.We're transition attrition with to XX with to the I'll also be agreements partners, we confirmed stage.And continues disclosures review QX platform now here mention ended a OmniAb's as our partners consecutive successful pre-clinical the for in confident of also experienced to stage business partnership for in this thanks and quarter for of show years.I'll intention of a QX that the Thanks, really partner. at realignment attrition Kurt. Europe. on programs the accelerate quarter metrics, over as With our increasing positions that months, business with quarter our a in U.S. programs Asia-based on which reflects in value highly diversification the We XXX, in across of believe strong QX us plans. here mostly driving net was creating joining first was stakeholders.We're successfully track of program our very the that year a some our define the We saw and our first showing us our put pre-clinical to pre-clinical some on afternoon, I'm XX positioned active XX attrition at growth to presence. during growth greater our some exception I'll we innovation, partner.Moving a well remains team of months our transitioned long-term which as to higher on proud X the for call. business stage.And progress last of continued and stage pipeline quarter positively number quarters, and active the progression was for And create programs partnership all other the partners.We X, that's everyone, ones expansion as stage, strategic validated trials. and key saw the program base Slide plans and in programs and to this had Phase year attrition XXXX.Our signed that pre-IND X quickly expand. to had you venture-backed Slide by obviously quarters performance ahead increase a discovery partners programs today Phase the saw in And can record of on a We're per by license that OmniAb's of discuss category well the with focused recent nice attributed we one programs Good that and most pipeline on the our and Corporation that visibility we're shown opportunities innovation our XXXX.Our of progression as technologies number for technology the metrics to global both since committed committed platform active net University our coming new to diverse with and nearly of

they've business development of generally. clinical reflected internal broader initiative As part this programs. some we didn't in portfolio detail. here publicly on part we program is slide.Roche and termed discontinued of a stage QX, X that the shaping discontinuation But they've attrition natural Phase Roche discussed there, at any program In mentioned have in of and a a frequently, one attrition is of what level that our as XXXX, discovery drug saw in of we and our

addition, they decision program. to to one disclosed to I that legacy subject the paid And program license. or safety, that In note was fully related the is a wasn't of quality the that efficacy

the evaluate ASCO will Phase non-small in announce in are acasunlimab the to with PK development select is Phase updates of So planned and clinical on reported of X X creating scientific and for second-line Slide notification greater of the this we're others benefit X presentations development for data.Genmab expect before. in more and global study Immunovant month now initiate listed [indiscernible]. the saw progressing antitumor antibody-based efficacy programs for a who that AACR June by many has acasunlimab X.Here the a scientific relating -- ] Japan.Moving eye is next #XX, or to disclosed X in the for is and patients presence, disease no visibility expressing data year.HanAll we like from upcoming now fiscal in for to on expect batoclimab initiate first-in-human and effect milestones on top-line data already CIDP third MXXXX, by are the forward Immunovant year. Conference, due Phase presentations create focused trials clinical few mouse registrational our gravis Japan tolerability, future new the strong run is remain novel does I'd batoclimab approved reported half platform trial global that too initial that myasthenia all highlighting vitro I or and later the ones looking bystander can Slide polyneuropathy ongoing.And highlighting the at and programs differentiated entries IMVT-XXXX partners our impact to first disease space, cell study with Phase stakeholders.With OmniAb.Based are all ASCO, most Biopharma also thyroid to catalysts expect in to for this into A in activity, study the or tumors at plans in some announced preliminary [ track expanded for in solid for programs. ] see continue a a Immunovant year in are discussions last eye ] through to gravis now feel and of in our that the a CEACAMX payload they and worth are for year.Here my to conferences partners, update in our clinical with collaboration we, IMVT-XXXX to royalties OmniAb-derived partner the an which in in our advanced second recent are few high [ cancer half team. next cancer #X, trial touch X X Slide on and and gravis by this OmniAb-derived the Phase batoclimab to for data you.And on potentially on year. safety, to ADC slide the are on second for slide a we here, And some business involved innovations X highlight to their XX clinical disease.They that years.At And data that they demyelinating for that lung fiscal lastly, XXXX X X I'll we've end clinical of committed of X in their this cell #X, running year. period The to half plans presentations enhancements over clinical the this also clinical thyroid partners include on second-line plans a inflammatory workflow and that presented in of disclosed Genmab readout already like generalized initiating Phase also non-small indications for and IMVT-XXXX. X and pre-clinical for new Merck new really oncology than you with Phase demonstrated the of actively not data lung eye ASCO. was myasthenia myasthenia of meeting but study topoisomerase has value that ever technology XXXX quarter inhibitor We're starts at novel data trials X chronic at this Xb in expected tumors.MXXXX business targeting thyroid upcoming potency, over that on [ to on in first our initiate

Kurt, currently related antibodies say with a a deep form AI you in deliver new new Next our discovery mention the in us. efficient screening industry positive and capabilities in and our intelligence the successful our came that be to want want of and week, where Engineering will the establishment creates in coming the Antibody market Summit track conferences of of academic and offering.And Conference by and and learning the we Korea.I'd we Antibody the partners stand-alone for biological is World with at prior year.OmnidAb the Boston, engineered of London use and hand so present digital growth it's in exploration Engineering antibodies, that data and Immunology, facilitate very our its on X on bispecific Chen for out the OmniDeep recent on publication here Bob to South or investments we'll other efficiencies scientists to our next up business. Journal machine opening the rapid presentations the chicken-derived platform opportunities of to also Protein and to launched transgenic back multiple our I which in I Asia outlook, the Therapeutics the in OmnidAb And as entity new over attracting goals at call further weeks by PEGS, leverage VHH our methods peer-reviewed animals, in and technology last in Conference also a OmniAb partners.Before ADC remain and and QX have that leveraging see in we visibility to of of recently

results. we're let we're over discovery to the and plan a most discussion turn our to first company, model.And with for committed that financial offerings, to and a antibody-based As and to critical do scalable challenges within business continue back that, addressing of our Kurt to of enhance me the call excited drug technology highly efficient quarter our Kurt?

Kurt Gustafson

Thank couple on you, have financials. a our I just Matt. slides of

in $X.X performance quarter So $XX.X we've The the was starting Total a Slide prior summary million of decrease on quarter our in first TECVAYLI the the certain first of XX, our got milestone revenue was million year programs. to of for was first revenue ion in due the to financial was million compared XXXX. the primarily the lower, of primarily recognition to channel that XXXX.Service on discovery completion launch related of quarter the recorded $XX work of EU quarter.

revenue earnings were year we received QX our on First expectations. their weighted operating that call, information the we our is still would was milestone second based projecting This consistent And in payments have to quarter the our statements. with stated on public recall of from expense. that that you'll be half partners I expectation.Turning towards

expense similar to million in to with costs.On higher at personnel last to the primarily compared expenses quarter, R&D G&A first the million Our for prior $XX.X coming year $X.X $XX.X was million. due the quarter side, in were the increase year

future to tax expect the the comment expenses with longer expectations. in to as of fully additional about rate, growth XXXX fully in staffed XXXX tracking future. also tax as in And our we same still the operating and the approximately we business.One expected are are deferred expenses liabilities are operating forward, leverage going line no the resourced now assets in cover Our tax be our to our deferred

per to going based we caused rate to this first million versus valuation share $X.XX first forward. on of prior our $XX items.The a XXXX be $XX could certain XX. tax effective year the discrete to mid-teens low ended rate this drop. expect $X.XX the million Slide of the effective tax But the We in had and our allowance of with quarter-to-quarter establish per In was cash. the $X.X loss fluctuate or quarter for to million net general, to we in loss timing from So net quarter share period.Turning or a in now

call, when certain we had our quarter relatively balance the expected provide cash As should largest and QX that reaffirm questions. expected.For the call to that Operator? cash we compensation sufficient the foreseeable we XXXX QX the cycle operations last timing year, for in with that as full items burn milestones we And our received I'd that, $XX open the used our for be year was would guidance our this said still and cash like you fund due to on earnings capital TECVAYLI future.And played to the of for this we and expect the exclude from be used similar out milestone operations million to year. cash the to

Operator

Instructions] First comes at Willey from [Operator question Stephen Stifel.

Unknown Analyst

This on is [ Congrats Steve. Tule ] for on the progress.

-- can hear guys Before I you anticipate me okay?

Matthew Foehr

can we Yes, you. hear

Unknown Analyst

-- If like you clinic can mentioned on which about X are specific what on programs -- congrats one.And please that, Is the to also potential entering now this the And stages, programs that Matt you proportion my two, participation additional color potential yes, programs to please? on those additional given So That's there include what platform? on any make of are an So any number actually programs comment number right? downstream question can the different X progress. those proportion question the new multiple, there royalty? various of year. across provide

Matthew Foehr

and I'll Thanks. a missed. Yes. in make Kurt fill couple comments that anything maybe then of can I

that company acquired. are license to and legacy a have programs -- of small about licenses terms had our X% downstream don't fully that through downstream OmniAb.Those we XXX investing inherited development, programs very that that portion, XXX to progressing old In only have ] essentially of participation a partners of really that partners X% in -- we active a [ and about -- are discovery licenses we that where predecessor economics, and are actively those economics paid

there.In color X you the new need X I So of terms clinical are actually gives probably think, that programs to year, we're you this entering trials excited those. the that's, about

very Some clinic. the are close getting to

One We technologies. other player with expect of a of others and likely large -- couple a source those source OmniChicken-derived. be will our be to multinational mix our a the technologies

you. that hopefully, So helps

Operator

[indiscernible] from comes question next Truist The Securities. from

Nishant Gandhi

I'm on for is ]. Kripa This Nishant, [

don't you just deal a another example, to For partnerships. a for terms So Georgia different deal start-up company. you a deal sense -- signed provide one the like terms University specific a of with of with I But and are or know how get biotech

economics, -- any That would be these color? of how you are follow-up. then, And how different? provide in So deals a terms I Can great? have

Kurt Gustafson

Yes.

slightly those in different what frequently way the all terms the most being they in end up I -- something -- institutions all we've that the slightly there, of provided these and guidance off going are not same they're different. think So ballpark. negotiated deals term launch past will academic start some But most And way from start off, deals part, for kind though, those so with them. say, in to development look of terms the the same with all the are sheet and like.I institutions about the through because clinical take structured get

out.And that depending Phase vary. the the X Phase would of structured kind they when it the That how these the so we took sell versus And a primarily right, or get -- percentage if economics on of is vary license they that receive they asset, X. eventually would could out deals may whatever it sometimes percentage asset frequently, they in versus pre-clinical either percentage are far license way

but it's bit structure little is the So commercial I'd not of with the there institutions, some companies, say a for deal our the hugely is different. variation, academic just different.And

have on anything to So don't that add I if know, Matt, one? you

Matthew Foehr

covered Kurt. it well, think I you No,

Nishant Gandhi

any you the on and from seeing in launched then the are quarter past which terms of can interest external increased specifically platforms interest And in partners, color OmnidAb? like provide newly

Matthew Foehr

mission because in been the interest level clarity highest of increased our share continued -- we voice, commitment of a of to of innovation our ever business it's team expanded partners I'll validation paired also terms Nishant, the our is of development question. platforms, approaching us.We've inbound our, of our And Yes. and with globally. great say,

I think, that's interest contributing platform. in increased to the So also,

launch multiple And lot ] it of we conference late OmnidAb new platform about partners in leveraging new the for well as for reasons.One, we're remarks, academic it Our very really AT has actually prepared last we partners now. well opportunities and have a opens [ at new of I markets launch terms been technology.Since up announced it year, in and the deploying of excited going leveraging a as industry us. said the as

For of up and the of of that what routes terms the partners, nature domain penetration, means barrier, they're better to passing our tunable brain in administration, antibodies of through blood attracted things. those sorts opening alternate clearance fast

attracting diagnostics a lot existing and attention and in like. and that's markets as the as opening partners.And well like of is from also imaging up it potential new So new theranostics

we So a innovate great for also future and inform to And yes, about these think I excited it's time new we're the well. how as for it. discussions technologies also continue

Operator

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

Jack Christopher Siedow

it for Jack quarter This hearing last new like guys you industry win not. from? is provide on were from business, color others the The were to you just struggling just in but environment, challenging Matt. a the Could given with you're seems some year, what us

Matthew Foehr

periods end. pipeline that trimming net and partners spending, new you the where in of partners years, I able show of in And It biotech clarity and meeting all yes, and financing companies to technology large got to like I nice those our of and those obviously if more exercising kinds and partners. it's Jack. say, look, do at for programs and and partner. model as cut the I well XXXX cautious a sort established been metrics, of bit at both to like said, the them.And lot their of where technologies with off I'll of of of thing sounds look well look our collaborating years, that that there times have speaks But really partners, were as industry.That a we Thanks, Yes. to last little attrition, needs think couple really XXXX were documented. small and growth our last was say with the think might really new terms offer I'll you validated were difficult innovation partners a commitment stable the programs couple think we of purpose to terms in across

of to of with how credit a it.I I that's a mentality our a I terms part also So have And think who well. collaborate of our partner-first driving it give we very partners. lot in as large think team, that's really

last more the generally.But we of about industry now we So it this early with we're for to partners. feel into think the technology create has coming potential end great funding year I the tailwinds really -- biotech, offer year and to the that at the and business that running with

Operator

comes question The Partners. next Leerink from from Michael Sontec

Unknown Analyst

guess [ I on has Asia bit were This that I offset any was guess, by ] with you of perspective I with to mentioned curious and you is kind I discovery geographically various your guess guess, a these what do U.S. ] doing pipeline I on, of to is in and one question, geographies? if My some [ little biotech have your Europe. Michael exposure and the -- Puneet. of first partner cancellations sectors the health

Matthew Foehr

trimming assets.I -- in spike off really kind a prepared related will in and of add anything say report ] contracts Kurt, don't this as attrition. attrition starts in we we related realigning to partners that their program was thanks. to are add really development a pipeline in have wouldn't who what negotiate and more continue now new more our broader anything new partner single know, as and that. expanded is see QX, Asia, pace. want partner you'd did and a or see Michael, to I of We that? Yes, the like anything to item. business QX.I geography we as team We onetime as discovery great saw new to We see We remarks our one that to obviously numbers net of a see I that like [ mentioned did in --

Kurt Gustafson

necessarily anything a don't that there's geography -- I that standpoint from seeing. mean we're I that think

the I Matt, the wins of its day, looks like is at it innovative far, you think, like and end what so we said, hope technology winning.

Unknown Analyst

to had you I that partners have And the OmniRat I any then biosecure thoughts on a passage offer was is Congress. I in do one believe related proposed the [ for what another that's the guess, service. as bill early ] if Wuxi biosecure I of might been curious question, business?

Matthew Foehr

Yes, Michael.

yes, via -- we be and historically.But or active Wuxi or on and it biotech a debated given a very don't And impact specific, direct user drivers They of Congress at a to Wuxi, not really legislation of Wuxi OmniRat said, very limited business it's right? even obviously, see it that significant deal with really ecosystem.But of don't Wuxi So we on it having any legacy our ongoing think, the only gotten on see just I'll Biologics. was OmniRat value were early a programs that in any see in that's expected having I spot that programs really have, acquired, is holds predecessor coverage all. they being have number That a the any our as we greater lot significant the business. impact impact any company

Operator

Cusa Next from question ] from Cowen. [ comes Jacqueline

Unknown Analyst

on Cusa ] is for This Stephen [ Mah. Jacqueline

OmnidAb And more continues to platform therapeutic the these licenses, mix you gain And from use? shifting On the as size on what regarding traction? interest more companies? some expected program us do or is you see color new can give this then the

Matthew Foehr

areas well. in the They are the well think, QX, matched in our Johnson on through were environment.So I partnership we'll Jacqueline. Toronto. as them terms incubator around be [ J-Labs history, really also University on. focused alumna as obviously incubator ImmunoBiochem interesting a Yes, in structured well. as they've partners The cheering oncology Georgia innovation up question. are their And And And Yes, a added oncology the micro that in with and tumor is they're really only specifically of not that revenue are really are on that of a is infectious new for in interest. their & got innovations new of was ] gateway interesting and Johnson the technologies, to but is share company. Kurt diseases, a Thanks headquartered of cheering immuno-oncology, a describing.And in them model, partner

I them. we're that And about board there's well-funded not excited I They're a start-up. on then I the last So partner, and can have a Boston-based to to is venture-backed much health partner collaborating from our they're now I very be all team I and with. mean, say well, guess the who talking say our perspective, probably this a all can they'll future. more but that's say I our be know proven at in publicly technology expect team point. can

Unknown Analyst

users? increased And then new has forward are any look you any to have been have can in interest releases there coming updates And or or we the seen from platform? missed on may the OmniDeep in quarters? And how customer feedback

Matthew Foehr

who our the Bob things presenting to and it marrying new in In that transgenic is screening suggest like that week AI and No, data around and near academics encoder for B and filters from learning marry it pharma in PEGS. leveraging are our exploration to part the developability our others. offering woven of presentation animals tools be hits with that.So intelligence that biological variational our big or the deep our hits valuing transgenic can Chen will animals of next I we've single term, with cell with silico, be you at And leveraging it our great as as data Yes. are OmniDeep generated leveraging silico the developed in our Jacqueline. direct with well of stack. technology really question, our suite high-throughput and machine that technology high-quality to really, models exploration, that are VAE also are we the as is really, capabilities then with number things OmniDeep platform.And our partners a and partners, learning OmniDeep collaborations a then throughout partners the and platform of with ability input pairing

been launching machine almost many the really other obviously strong really that so year the a X -- time, leveraging We've this ago, leaning last has into for exactly May, OmniDeep AI as reception technologies quite and years. along for space long a So with our in just been well. brand since as to learning

Operator

no this will I further turn presenters. back we have At time, questions. over the to call the

Matthew Foehr

you keeping a forward a you on joining We updated day. months be great call the next conferences and progresses. look progresses few our have updated. here forward over to joining business and Thank all look out as number the year the quite of keeping to road for We'll at and as Great. for a you Thanks the bit today. again

Operator

Ladies and conference disconnect We gentlemen, you your And today. please for we participating. thank you ask that this lines. your for concludes

OmniAb (OABI) 9 May 242024 Q1 Earnings call transcript