OmniAb Reports Fourth Quarter and Full Year 2023 Financial Results and Business Highlights
- OmniAb expanded its partnership base and pipeline programs in 2023.
- Revenue for Q4 2023 was $4.8 million, down from $35.3 million in Q4 2022.
- Research and development expenses increased to $14.8 million in Q4 2023.
- General and administrative expenses decreased to $7.9 million in Q4 2023.
- Net loss for Q4 2023 was $14.1 million compared to net income of $6.8 million in Q4 2022.
- Full year 2023 revenue was $34.2 million, down from $59.1 million in 2022.
- Research and development expenses for 2023 increased to $56.5 million.
- General and administrative expenses for 2023 rose to $33.3 million.
- Net loss for 2023 was $50.6 million compared to $22.3 million in 2022.
- OmniAb expects its 2024 operating expenses to be similar to 2023.
- Cash provided by operating activities in 2023 was $2.3 million.
- The company signed 10 new licenses in 2023 and launched two new technologies, OmniDeep™ and OmnidAb™.
- OmniAb had 77 active partners and 325 active programs as of December 31, 2023.
- The Company's new technologies aim to enhance therapeutic discovery and antibody development.
- Recent partner highlights include positive results for various clinical trials and advancements in antibody development.
- OmniAb was added to the Nasdaq Biotechnology Index (NBI) in Q4 2023.
- Revenue decreased in Q4 and full year 2023 compared to the previous year.
- Net losses increased significantly in 2023.
- Research and development expenses saw a notable increase in 2023.
- General and administrative expenses also rose in 2023.
Insights
The financial results reported by OmniAb, Inc. indicate a significant revenue decrease from $59.1 million in 2022 to $34.2 million in 2023, primarily attributed to lower milestone payments from the commercial sale of TECVAYLI® and service revenue reductions. This decline in revenue, paired with increased research and development expenses, has led to a substantial net loss increase from $22.3 million in 2022 to $50.6 million in 2023. The company's financial guidance for 2024 suggests stable operating expenses and cash use, with optimism for reduced cash use in 2025 based on the progression of partnered pipeline projects.
From an investment perspective, the sharp decline in revenue and increased net loss year-over-year could raise concerns about the company's near-term profitability. However, the company's cash position of $87.0 million and the expectation of sufficient capital to fund operations for the foreseeable future may provide some assurance to investors. The expectation of decreased cash use in 2025 is potentially promising, indicating that the management anticipates their investments in R&D to start yielding more financially viable results. The stock market typically reacts to earnings reports and these financial results could influence investor sentiment and the company's stock price.
OmniAb's strategic expansion in its partnership base and pipeline programs, with 10 new licenses signed in 2023 and the introduction of two new technologies, OmniDeep™ and OmnidAb™, reflect the company's commitment to innovation and growth in the biotechnology sector. The entry of six new OmniAb-derived antibodies into the clinic underscores the company's productive R&D activities, despite the reported increase in R&D expenses.
For stakeholders in the biotech industry, the development and commercialization of new therapeutic technologies like OmniDeep™ and OmnidAb™ could be significant. These technologies aim to enhance drug development efficiency, which could lead to a competitive advantage in the long term. The report of 77 active partners and 325 active programs, with 32 in clinical development or commercialization, suggests a robust pipeline that could eventually translate into revenue growth. This is particularly relevant for investors looking for companies with a strong R&D foundation and potential for future marketable products.
However, the current financial performance and the substantial net loss may overshadow the strategic advancements, at least in the short term. Investors and market analysts will closely monitor the progression of clinical trials and the potential for these new technologies to translate into successful market products that could drive future revenue growth and improve financial health.
The clinical advancements of OmniAb's partners, such as Immunovant's positive results for batoclimab in Graves’ disease and the progression of global Phase 3 clinical trials, are critical milestones in the company's collaborative efforts. The potential of IMVT-1402 as a best-in-class neonatal fragment crystallizable receptor (FcRn) inhibitor, as well as the approval of sugemalimab in China for esophageal squamous cell carcinoma, highlight the impact of OmniAb's technologies in the medical field.
From a medical research perspective, the progression of these clinical programs is a positive indicator of the company's R&D capabilities and the therapeutic potential of its antibody discovery platforms. The advancement of these programs towards later-stage clinical trials and potential commercialization could lead to significant improvements in patient care and treatment options. This progress could eventually result in revenue generation through milestones and royalties, which would be a critical factor in offsetting the company's current R&D expenses and reducing future cash burn.
Investors with a focus on the biopharmaceutical sector often look for companies with strong pipelines and innovative technologies that address unmet medical needs. The clinical achievements and regulatory approvals mentioned could be indicative of the company's potential to meet these investor expectations in the long term, despite the current financial losses reported.
Conference Call with Slides Begins at 4:30 p.m. Eastern Time Today
“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
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter of 2023 was
Research and development expense was
Net loss for the fourth quarter of 2023 was
Full Year 2023 Financial Results
Revenue for 2023 was
Research and development expense for 2023 was
Net loss for 2023 was
As of December 31, 2023, OmniAb had cash, cash equivalents and short-term investments of
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
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
-
Immunovant reported positive initial results for batoclimab in Graves’ disease (GD). The company announced that results from the initial cohort of patients in an ongoing 24-week Phase 2 clinical trial meaningfully exceeded a
50% response rates. - Immunovant also reported that global Phase 3 clinical trials of batoclimab in myasthenia gravis (MG) and thyroid eye disease (TED) are progressing and on track for topline data in the second half of 2024 (MG) and the first half of 2025 (TED). Initial period 1 data from the Phase 2b clinical trial of batoclimab in chronic inflammatory demyelinating polyneuropathy (CIDP) are expected in the second or third quarter of 2024.
IMVT-1402
- Immunovant announced initial data from the 600 mg multiple-ascending-dose cohort of a Phase 1 clinical trial of IMVT-1402 in healthy adults. The results show that four subcutaneously administered doses of 600 mg produced a mean IgG reduction similar to high-dose batoclimab, but with minimal changes in albumin and LDL-C similar to those in placebo, confirming the potential of IMVT-1402 as a best-in-class neonatal fragment crystallizable receptor (FcRn) inhibitor.
- In addition, Immunovant announced plans to initiate four to five potentially registrational programs for IMVT-1402 over the next fiscal year. The company also plans on initiating trials in 10 indications for IMVT-1402 over the next two fiscal years.
Acasunlimab (formerly GEN1046)
- Genmab expects to announce additional acasunlimab (GEN1046: PD-L1 x 4-1BB) Phase 2 data in second-line non-small cell lung cancer (NSCLC) in the first half of 2024.
- In addition, Genmab plans to initiate a Phase 3 study of acasunlimab in a second-line NSCLC indication in 2024.
JNJ-79635322
- Johnson & Johnson presented preclinical data for JNJ-79635322, a trispecific antibody comprised of an anti-CD3 binding domain, an anti-BCMA binding domain and an anti-GPRC5D binding domain, concluding that it is a potential first-in-class trispecific antibody with the ability to deplete dual- and single-target expressing multiple myeloma clones in preclinical studies in vitro and in vivo. A Phase 1 dose-escalating study of JNJ-79635322 in myeloma patients is ongoing.
Zimberelimab
- Arcus and Gilead have reprioritized the joint domvanalimab + zimberelimab development program to focus on advancing, and potentially accelerating, the Phase 3 studies of STAR-121 (lung cancer) and STAR-221 (gastrointestinal cancer), which are both expected to be fully enrolled by year-end 2024. The companies also plan to initiate STAR-131, a new registrational Phase 3 lung cancer study that includes the domvanalimab + zimberelimab regimen.
-
Arcus presented preliminary data from the dose-escalation portion of its ARC-8 Phase 1/1b study, evaluating the safety and tolerability of AB680 + NP/Gem + zimberelimab in metastatic pancreatic cancer. The results included a
41% objective response rate observed to-date across the first four cohorts in the Phase 1 dose-escalation portion of ARC-8, comparing favorably to the current standard of care.
Sugemalimab
-
CStone announced the National Medical Products Administration of
China (NMPA) has approved the supplemental BLA for sugemalimab (Cejemly®) in combination with fluorouracil and platinum-based chemotherapy as first-line treatment of unresectable locally advanced, recurrent, or metastatic esophageal squamous cell carcinoma. Sugemalimab becomes the world's first anti-PD-L1 monoclonal antibody approved for this indication in the first-line setting.
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
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, |
|
— |
|
|
|
— |
|
Common stock, |
|
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) |
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|
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240320152672/en/
OmniAb, Inc.
Neha Singh, Ph.D.
investors@OmniAb.com
X (Twitter) @OmniAbTech
(510) 768-7760
Source: OmniAb, Inc.
FAQ
What was OmniAb's revenue for Q4 2023?
How many new licenses did OmniAb sign in 2023?
What were the net losses for OmniAb in 2023?
What new technologies did OmniAb launch in 2023?
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What index was OmniAb added to in Q4 2023?
