EMERYVILLE, Calif. / Mar 20, 2024 / Business Wire / OmniAb, Inc. (NASDAQ: OABI) today reported financial results for the three and 12 months ended December 31, 2023, and provided operating and partner program updates.
“2023 was a year of significant expansion of OmniAb's partnership base and pipeline programs as we continued to execute against our plan, while key partner programs made significant progress despite last year's sector-related headwinds. Partners exceeded our expectations regarding the number of new programs entering the clinic, with a total of six new entrants last year,” said Matt Foehr, Chief Executive Officer of OmniAb. “In addition, we successfully launched two new technologies and expanded our business development function, now with a presence in the U.S., EU and Asia Pacific. We look forward to meaningful advancements in 2024 and in the coming years, as we are now staffed and resourced to efficiently leverage the future growth of the business.”
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter of 2023 was $4.8 million, compared with $35.3 million for the same period in 2022, with the decrease primarily due to the recognition of a $25.0 million milestone payment in the prior-year period related to the first commercial sale of TECVAYLI® (teclistamab) in the U.S. and lower service revenue as a result of the completion of discovery work on certain ion channel programs.
Research and development expense was $14.8 million for the fourth quarter of 2023, compared with $12.9 million for the same period in 2022, with the increase primarily due to higher personnel costs. General and administrative expense was $7.9 million for the fourth quarter of 2023, compared with $10.2 million for the same period in 2022, with the decrease primarily due to one-time expenses related to the spin-off of OmniAb into a separate public company in the prior-year period partially offset by increases in personnel costs.
Net loss for the fourth quarter of 2023 was $14.1 million, or $0.14 per diluted share, compared with net income of $6.8 million, or $0.07 per share, for the same period in 2022.
Full Year 2023 Financial Results
Revenue for 2023 was $34.2 million, compared with $59.1 million for 2022, with the decrease primarily due to the recognition of TECVAYLI® milestones of $10.0 million in 2023 compared with $25.0 million in 2022. Service revenue was lower primarily related to the completion of work on certain ion channel programs and an adjustment related to the extension of one of our programs with GSK, partially offset by the recognition of a portion of a research progression milestone.
Research and development expense for 2023 was $56.5 million, compared with $48.4 million for 2022, with the increase primarily due to headcount and facility costs. General and administrative expense for 2023 was $33.3 million, compared with $24.9 million for 2022, with the increase primarily due to higher personnel costs and expenses related to being an independent publicly traded company.
Net loss for 2023 was $50.6 million, or $0.51 per share, compared with a net loss of $22.3 million, or $0.26 per share, for 2022. Cash provided by operating activities was $2.3 million for 2023.
As of December 31, 2023, OmniAb had cash, cash equivalents and short-term investments of $87.0 million.
2024 Financial Guidance
OmniAb expects operating expense in 2024 to be approximately the same as in 2023, and is now staffed and resourced to leverage the future growth of the business.
OmniAb expects its cash use in 2024 to be relatively similar to its cash used in 2023, excluding the $35 million TECVAYLI milestone payment received in 2023. Given the expected progression of the existing partnered pipeline, OmniAb expects its cash use in 2025 to be substantially lower than in 2024. OmniAb’s current cash balance and cash from operations are expected to provide sufficient capital to fund operations for the foreseeable future.
Fourth Quarter 2023 and Recent Business Highlights
The Company signed 10 new licenses in 2023, including three in the fourth quarter, with Enable Life Sciences, Mirador Therapeutics, and a global pharma company. In addition, six new OmniAb-derived antibodies entered the clinic in 2023. As of December 31, 2023, the company had 77 active partners and 325 active programs, including 32 OmniAb-derived programs in clinical development, or being commercialized.
OmniAb launched two new technologies during 2023 including OmniDeep™ and, during the fourth quarter, OmnidAb™. OmniDeep is a suite of in silico tools for therapeutic discovery and optimization that are woven throughout OmniAb’s various technologies and capabilities. These tools include structural modeling, molecular dynamics simulations, large multi-species antibody databases, artificial intelligence, machine learning, deep learning models and more. OmniDeep facilitates rapid identification of candidates with the right affinity, specificity and developability profiles intended to make drug development more effective and efficient. The OmnidAb transgenic chicken novel host system builds upon the success of the Company’s OmniChicken® legacy by expressing an optimized single-domain human framework that can generate modular building blocks well suited to support a variety of therapeutic modalities. OmnidAb antibodies target distinct epitopes and have favorable developability profiles with high expression levels in mammalian cells. Compared with traditional antibodies, sdAbs produced by OmnidAb chickens have a compact format that opens new opportunities and broad clinical applications.
Fourth quarter 2023 and recent partner highlights include the following:
Batoclimab
IMVT-1402
Acasunlimab (formerly GEN1046)
JNJ-79635322
Zimberelimab
Sugemalimab
OmniAb was added to the Nasdaq Biotechnology Index (NBI) in the fourth quarter. The inclusion became effective as of December 18, 2023.
Conference Call and Webcast
OmniAb management will host a conference call with accompanying slides today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this announcement and answer questions. To participate via telephone, please dial (888) 259-6850 using the conference ID 72611636. Slides, as well as the live and replay webcast of the call, are available at https://investors.omniab.com/investors/events-and-presentations/default.aspx.
About OmniAb®
OmniAb’s discovery platform provides pharmaceutical industry partners access to diverse antibody repertoires and high-throughput screening technologies to enable discovery of next-generation therapeutics. At the heart of the OmniAb platform is the Biological Intelligence™ (BI) of our proprietary transgenic animals, including OmniRat®, OmniChicken® and OmniMouse® that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. OmniFlic® (transgenic rat) and OmniClic® (transgenic chicken) address industry needs for bispecific antibody applications through a common light chain approach, and OmniTaur™ features unique structural attributes of cow antibodies for complex targets. OmnidAb™ is an in vivo platform for single domain antibodies based upon a human VH scaffold that affinity matures in a chicken host environment to provide a functionally diverse immune repertoire unavailable from mammalian systems. We believe the OmniAb animals comprise the most diverse host systems available in the industry and they are optimally leveraged through computational antigen design and immunization methods, paired with high-throughput single B cell phenotypic screening and mining of next-generation sequencing datasets with custom algorithms to identify fully human antibodies with superior performance and developability characteristics. These proprietary technologies are joined with and leverage OmniDeep™, which is a suite of in silico tools for therapeutic discovery and optimization that are woven throughout OmniAb’s various technologies and capabilities. Additionally, an established core competency focused on ion channels and transporters further differentiates OmniAb’s technology and creates opportunities in many emerging target classes. OmniAb antibodies have been leveraged across modalities, including bispecific antibodies, antibody-drug conjugates and others.
The OmniAb suite of technologies span from BI-powered repertoire generation to cutting-edge antibody discovery and optimization offering a highly efficient and customizable end-to-end solution for the growing discovery needs of the global pharmaceutical industry.
For more information, please visit www.omniab.com.
Forward-Looking Statements
OmniAb cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. Words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or continue” and similar expressions, are intended to identify forward-looking statements. The forward-looking statements are based on our current beliefs and expectations and include, but are not limited to: statements regarding the growth prospects of our business and the discovery needs of the pharmaceutical industry; the staffing and resources required, and our ability, to efficiently leverage the growth of the business; the expected performance of our technologies and the opportunities they may create; the ability to add new partners and programs; scientific presentations and clinical and regulatory events of our partners and the timing thereof; expected cash runway and cash use. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business, including, without limitation: our future success is dependent on acceptance of our technology platform and technologies by new and existing partners, as well as on the eventual development, approval and commercialization of products developed by our partners for which we have no control over the development plan, regulatory strategy or commercialization efforts; biopharmaceutical development is inherently uncertain; risks arising from changes in technology; the competitive environment in the life sciences and biotechnology platform market; our failure to maintain, protect and defend our intellectual property rights; difficulties with performance of third parties we will rely on for our business; regulatory developments in the United States and foreign countries; unstable market and economic conditions may have serious adverse consequences on our business, financial condition and stock price; we may use our capital resources sooner than we expect; and other risks described in our prior press releases and filings with the SEC, including under the heading “Risk Factors” in the annual report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Partner Information
The information in this press release regarding partnered products and programs comes from information publicly released by our partners.
OMNIAB, INC. CONSOLIDATED AND COMBINED BALANCE SHEETS (unaudited, in thousands, except share and per share data) | |||||||
| December 31, | ||||||
|
| 2023 |
|
|
| 2022 |
|
ASSETS |
|
|
| ||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 16,358 |
|
| $ | 33,390 |
|
Short-term investments |
| 70,625 |
|
|
| 54,875 |
|
Accounts receivable, net |
| 3,844 |
|
|
| 30,290 |
|
Prepaid expenses and other current assets |
| 4,074 |
|
|
| 6,395 |
|
Total current assets |
| 94,901 |
|
|
| 124,950 |
|
Intangible assets, net |
| 155,467 |
|
|
| 167,242 |
|
Goodwill |
| 83,979 |
|
|
| 83,979 |
|
Property and equipment, net |
| 18,249 |
|
|
| 19,979 |
|
Operating lease right-of-use assets |
| 19,884 |
|
|
| 21,483 |
|
Restricted cash |
| 560 |
|
|
| 449 |
|
Other long-term assets |
| 2,185 |
|
|
| 3,130 |
|
Total assets | $ | 375,225 |
|
| $ | 421,212 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| ||||
Current liabilities: |
|
|
| ||||
Accounts payable | $ | 4,411 |
|
| $ | 2,971 |
|
Accrued expenses and other current liabilities |
| 7,068 |
|
|
| 5,557 |
|
Income tax payable |
| — |
|
|
| 3,485 |
|
Current contingent liabilities |
| 1,303 |
|
|
| 4,022 |
|
Current deferred revenue |
| 6,848 |
|
|
| 8,207 |
|
Current operating lease liabilities |
| 3,486 |
|
|
| 1,780 |
|
Total current liabilities |
| 23,116 |
|
|
| 26,022 |
|
Long-term contingent liabilities |
| 3,203 |
|
|
| 4,089 |
|
Deferred income taxes, net |
| 11,354 |
|
|
| 21,341 |
|
Long-term operating lease liabilities |
| 22,075 |
|
|
| 24,016 |
|
Long-term deferred revenue |
| 862 |
|
|
| 4,325 |
|
Other long-term liabilities |
| 30 |
|
|
| 46 |
|
Total liabilities |
| 60,640 |
|
|
| 79,839 |
|
Stockholders’ equity: |
|
|
| ||||
Preferred stock, $0.0001 par value; 100,000,000 shares authorized; no shares issued and outstanding at December 31, 2023 and December 31, 2022 |
| — |
|
|
| — |
|
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at December 31, 2023 and December 31, 2022; 116,859,468 and 115,218,229 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively |
| 12 |
|
|
| 12 | |
Additional paid-in capital |
| 353,890 |
|
|
| 330,100 |
|
Accumulated other comprehensive income |
| 50 |
|
|
| 9 |
|
Retained earnings (accumulated deficit) |
| (39,367 | ) |
|
| 11,252 |
|
Total stockholders’ equity |
| 314,585 |
|
|
| 341,373 |
|
Total liabilities and stockholders’ equity | $ | 375,225 |
|
| $ | 421,212 |
|
OMNIAB, INC. CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||||||
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Revenues: |
|
|
|
|
|
|
| ||||||||
License and milestone revenue | $ | 1,713 |
|
| $ | 31,100 |
|
| $ | 20,699 |
|
| $ | 38,926 |
|
Service revenue |
| 2,755 |
|
|
| 3,862 |
|
|
| 12,180 |
|
|
| 18,784 |
|
Royalty revenue |
| 354 |
|
|
| 383 |
|
|
| 1,285 |
|
|
| 1,367 |
|
Total revenues |
| 4,822 |
|
|
| 35,345 |
|
|
| 34,164 |
|
|
| 59,077 |
|
Operating expenses: |
|
|
|
|
|
|
| ||||||||
Research and development |
| 14,766 |
|
|
| 12,919 |
|
|
| 56,525 |
|
|
| 48,364 |
|
General and administrative |
| 7,869 |
|
|
| 10,206 |
|
|
| 33,313 |
|
|
| 24,903 |
|
Amortization of intangibles |
| 3,407 |
|
|
| 3,276 |
|
|
| 13,554 |
|
|
| 13,050 |
|
Other operating (income) expense, net |
| (14 | ) |
|
| (106 | ) |
|
| 191 |
|
|
| (592 | ) |
Total operating expenses |
| 26,028 |
|
|
| 26,295 |
|
|
| 103,583 |
|
|
| 85,725 |
|
Income (loss) from operations |
| (21,206 | ) |
|
| 9,050 |
|
|
| (69,419 | ) |
|
| (26,648 | ) |
Other income (expense): |
|
|
|
|
|
|
| ||||||||
Interest income |
| 1,181 |
|
|
| 587 |
|
|
| 5,055 |
|
|
| 587 |
|
Other income, net |
| (3 | ) |
|
| — |
|
|
| 1 |
|
|
| — |
|
Total other income, net |
| 1,178 |
|
|
| 587 |
|
|
| 5,056 |
|
|
| 587 |
|
Income (loss) before income tax |
| (20,028 | ) |
|
| 9,637 |
|
|
| (64,363 | ) |
|
| (26,061 | ) |
Income tax benefit (expense) |
| 5,975 |
|
|
| (2,817 | ) |
|
| 13,744 |
|
|
| 3,727 |
|
Net income (loss) | $ | (14,053 | ) |
| $ | 6,820 |
|
| $ | (50,619 | ) |
| $ | (22,334 | ) |
|
|
|
|
|
|
|
| ||||||||
Basic net income (loss) per share | $ | (0.14 | ) |
| $ | 0.07 |
|
| $ | (0.51 | ) |
| $ | (0.26 | ) |
Shares used in basic per share calculation |
| 100,162 |
|
|
| 93,350 |
|
|
| 99,683 |
|
|
| 85,318 |
|
|
|
|
|
|
|
|
| ||||||||
Diluted net income (loss) per share | $ | (0.14 | ) |
| $ | 0.07 |
|
| $ | (0.51 | ) |
| $ | (0.26 | ) |
Shares used in diluted per share calculation |
| 100,162 |
|
|
| 93,712 |
|
|
| 99,683 |
|
|
| 85,318 |
|
| Last Trade: | US$3.50 |
| Daily Volume: | 804,373 |
| Market Cap: | US$423.540M |
December 16, 2024 May 15, 2024 | |
C4 Therapeutics is pioneering a new class of small-molecule drugs that selectively destroy disease-causing proteins via degradation using the innate machinery of the cell. This targeted protein degradation approach offers advantages over traditional drugs, including the potential to treat a wider range of diseases...
CLICK TO LEARN MORE
Chimerix is on a mission to develop medicines that meaningfully improve and extend the lives of patients facing deadly diseases. The company is devoted to filling gaps in the treatment paradigm. Chimerix’s most advanced clinical-stage program is in development for H3 K27M-mutant glioma....
CLICK TO LEARN MORE
