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OmniAb Inc. (NASDAQ:OABI) presented its second-quarter 2025 financial results and business update on August 6, revealing a company experiencing robust partner and program growth despite financial challenges. The antibody discovery platform provider reported a decline in quarterly revenue but maintained its full-year guidance while highlighting the launch of its new xPloration technology.
Quarterly Performance Highlights
OmniAb reported Q2 2025 revenue of $3.9 million, a significant decrease from $7.6 million in the same period last year. The company posted an operating loss of $16.2 million, slightly improved from $16.3 million in Q2 2024, while net loss widened to $15.9 million ($0.15 per share) compared to $13.6 million ($0.13 per share) in the prior-year quarter.
As shown in the following financial results comparison:
Despite the revenue decline, OmniAb reduced its operating expenses to $20.1 million in Q2 2025 from $23.9 million in Q2 2024, primarily due to lower stock-based compensation, reduced headcount, and decreased external expenses associated with small-molecule ion channel programs.
The expense reduction is illustrated in this chart:
The company’s cash use in the quarter was $2 million, with primary receipts including a milestone payment for GEN1078, acasunlimab, and a payment related to an asset sale to Angelini. OmniAb maintained its 2025 guidance, projecting revenue between $20-25 million and operating expenses of $85-90 million.
Partner and Program Growth
Despite financial challenges, OmniAb continues to expand its partner ecosystem, reaching 100 active partners as of June 30, 2025, up from 90 at the end of 2024. This growth trajectory is visualized in the following chart:
The company’s active programs also showed steady growth, reaching 381 as of Q2 2025, with a net addition of 18 programs year-to-date. This represents more than double the net additions compared to the first half of 2024.
The following chart illustrates this program growth:
Approximately 99% of these active programs have contracted future economics to OmniAb, with total remaining milestones for Antibody Standard Licenses exceeding $3 billion and an average royalty rate of 3.36%.
Pipeline Advancement
OmniAb reported significant progress in its partner pipeline, with post-discovery stage programs growing 22% over the last 12 months to 61 programs. The company highlighted increasing diversity in therapy areas within preclinical programs, including inflammation, fibrosis, renal, dermatology, oncology, and CNS applications.
The following chart shows the distribution of these programs across development stages:
The number of active clinical programs and approved products increased to 32 as of Q2 2025, continuing a steady upward trend since 2020. One new OmniChicken-derived program entered a first-in-human clinical trial in Q2, and the company anticipates approximately 5-7 new entries into clinical development for novel OmniAb-derived programs this year.
The company’s extensive clinical and commercial-stage partner pipeline spans multiple therapeutic areas and includes collaborations with major pharmaceutical companies like Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE), and Merck (NSE:PROR) KGaA.
Financial Analysis
The revenue decline in Q2 2025 was primarily attributed to lower milestone revenue and decreased service revenue due to the discontinuation of a small-molecule ion channel program. The introduction of xPloration revenue ($0.6 million) partially offset these declines but wasn’t sufficient to prevent an overall revenue decrease.
As shown in the revenue breakdown:
This performance represents a sequential decline from Q1 2025, when the company reported revenue of $4.2 million. OmniAb’s stock has faced significant pressure, trading near $2.04 after the results were announced, down approximately 5.39% and significantly below its 52-week high of $4.87.
Strategic Initiatives
OmniAb highlighted the launch of its xPloration Partner Access Program as a strategic initiative to create new revenue streams. The technology aims to enhance partners’ capabilities for antibody discovery and screening, potentially enabling more OmniAb-derived programs.
The company reported strong initial reception, with the technology receiving a "Best-of-Show" award at the PEGS conference and completing instrument installation just weeks after introduction.
CEO Matt Foehr emphasized that the xPloration technology is "poised to significantly enhance and drive efficiencies in our partners’ capabilities" and described it as potentially the "right technology at the right time" as the industry embraces lab automation and instrumentation for big data generation and AI/ML-aided screening.
Forward-Looking Statements
Despite financial challenges, OmniAb maintained its 2025 guidance, projecting revenue between $20-25 million and operating expenses of $85-90 million. The company expects 2025 cash use to be lower than the $38.9 million used in 2024, reflecting ongoing cost control measures.
The company continues to see potential for approximately 5-7 new entries into clinical development for novel OmniAb-derived programs this year, including two entries as of June 30, 2025. Management also highlighted partner updates, including Immunovant (NASDAQ:IMVT)’s Phase 3 study initiation for IMVT-1402, Teva’s Fast Track designation for TEV-53408 in celiac disease, and Johnson & Johnson’s presentation of initial Phase 1 results for JNJ-79635322 at ASCO.
While OmniAb faces revenue challenges in the near term, the company’s growing partner base, expanding pipeline, and new technology initiatives suggest potential for future growth as these partnerships mature and programs advance through clinical development.
Full presentation:
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