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Introduction & Market Context
OmniAb Inc. (NASDAQ:OABI) presented its first quarter 2025 financial results and business update on May 8, 2025, highlighting revenue growth, pipeline expansion, and the launch of a new technology platform. The antibody discovery company reported modest revenue growth while continuing to focus on cost control measures and long-term value creation through its partner-based business model.
The company’s stock, which has been trading near its 52-week low of $1.48, showed positive movement in after-hours trading with a 3.82% increase to $1.63, suggesting cautious optimism from investors following the earnings release.
Quarterly Performance Highlights
OmniAb reported several positive developments in the first quarter, maintaining its outlook for 2025 while highlighting strong deal flow and continued pipeline progression.
As shown in the following quarterly highlights slide:
The company’s financial results showed improvement compared to the same period last year. Revenue increased to $4.2 million in Q1 2025, up from $3.8 million in Q1 2024, representing a 10.5% year-over-year growth. This increase was primarily driven by license and milestone revenue, which included a Phase 1 milestone payment for GEN1078, a program developed by Genmab (NASDAQ:GMAB).
The comprehensive financial comparison between Q1 2025 and Q1 2024 reveals improvements across multiple metrics:
Despite the continued net loss, OmniAb demonstrated improved financial efficiency with operating expenses decreasing to $23.0 million in Q1 2025 from $26.4 million in Q1 2024. This reduction was primarily due to lower stock-based compensation expenses, reduced legal fees, and decreased external expenses associated with small-molecule ion channel programs.
Pipeline and Partner Updates
OmniAb continues to expand its partner base, reaching 95 active partners in Q1 2025. The company added new licenses with the Wyss Institute at Harvard, Takis Biotech S.r.l., and Orion Corporation during the quarter.
The following chart illustrates the consistent growth in OmniAb’s active partner base:
The company’s active programs increased to 378 in Q1 2025, up from 363 at the end of 2024. This growth reflects continued momentum in program additions, with 31 new programs added and 16 terminations during the quarter. Importantly, over 98% of these active programs have contracted future economics to OmniAb.
The following slide details the growth and changes in active programs:
OmniAb’s clinical pipeline also continues to advance, with 33 active clinical programs and approved products as of March 31, 2025. One new OmniAb-derived program, Genmab’s GEN1078, entered a first-in-human clinical trial in Q1 for participants with solid tumors. Based on dialogue with partners, the company anticipates approximately 5-7 new entries into clinical development for novel OmniAb-derived programs in 2025.
The company highlighted several partner updates, including Immunovant (NASDAQ:IMVT)’s IMVT-1402 with potentially registrational trials enrolling patients in four indications, Teva Pharmaceuticals’ initiation of a Phase 2 trial of TEV-53408 in adults with celiac disease, and positive data from several other partnered programs:
Strategic Initiatives
A significant development in Q1 2025 was the introduction of the xPloration Partner Access Program, a new technology offering that OmniAb expects to be accretive to its business. The xPloration platform is described as a highly leverageable technology that integrates with existing antibody creation technologies and enhances partners’ capabilities in antibody discovery and screening.
The following slide introduces the xPloration Partner Access Program:
The xPloration technology uses AI-driven deep functional screening through a three-step process:
OmniAb is now offering the xPloration platform to partners through a program that includes the instrument, proprietary single-use consumables, and annual subscription services for software with maintenance. The company reports strong initial interest from partners and expects multiple deployments in the coming months and years.
Detailed Financial Analysis
OmniAb’s balance sheet shows a cash position of $43.6 million as of March 31, 2025, down from $59.4 million at the end of 2024. Total (EPA:TTEF) assets decreased to $306.2 million from $325.6 million during the same period. The company maintains a strong equity position with stockholders’ equity of $273.5 million.
The detailed balance sheet information is presented in the following slide:
The company’s operating expenses decreased across all categories, with research and development expenses declining to $12.6 million from $14.6 million and general and administrative expenses decreasing to $7.9 million from $8.3 million compared to Q1 2024.
Forward-Looking Statements
OmniAb affirmed its 2025 revenue guidance of $20-25 million while revising its operating expense guidance downward to $85-90 million from the previous range of $90-95 million. The company also expects cash use in 2025 to be lower than in 2024, reflecting its focus on cost management and operational efficiency.
The following slide outlines OmniAb’s 2025 guidance:
Looking ahead, OmniAb anticipates continued growth in its partnered pipeline with several programs expected to advance through clinical development. The company’s clinical and commercial-stage partner pipeline shows a diverse range of programs across various development phases:
Additionally, OmniAb highlighted upcoming partner presentations at the ASCO Annual Meeting, which will provide further data on several partnered programs, including Johnson & Johnson (NYSE:JNJ)’s JNJ-79635322, Merck (NSE:PROR)’s M9140, and other programs from partners such as Boehringer Ingelheim, Teva, and others.
Overall, OmniAb’s Q1 2025 results demonstrate modest revenue growth and improved cost control as the company continues to build long-term value through its expanding partner ecosystem and innovative technology platforms. The launch of the xPloration Partner Access Program represents a potential new revenue stream that could contribute to the company’s path toward profitability.
Full presentation:
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