OmniAb Inc Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Sonntag - Leerink Partners - Analyst : You have Michael on for Puneet. Congrats on the quarter. I think for the first question I wanted to talk a little bit about the exploration platform. I know you mentioned a proof-of-concept study you've done. I was curious if you could talk about how this distributed format you're looking into fits into your overall offering. And if you could speak to sort of the confidence in the IP since there's been some litigation sort of the microfluidics single-cell space recently?

Question: Michael Sonntag - Leerink Partners - Analyst : Okay, great. And then I was curious in conversations with new partners or existing partners, if you have any insights on, I guess, the appetite for discovery programs, given that the first half has been pretty good funding-wise. And then there's also a lot of talk about sort of the large pharma prioritization that's been happening. So I wonder if you could offer some color there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2024 / 8:30PM, OABI.OQ - Q2 2024 OmniAb Inc Earnings Call

Question: Chad Wiatrowski - TD Cowen - Analyst : This is Chad on for Steve Mah. Just looking at the existing programs, there's sort of large downstream milestone potential. How much visibility do you have given the bolus of upcoming partner catalysts in the next 18 months?

Question: Chad Wiatrowski - TD Cowen - Analyst : Great. And yes, this is obviously a benefit of your business model today is like an R&D sharing platform. But regarding the exploration, would you ever sell instruments directly to partners, just given the majority of the R&D investment has already taken place? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2024 / 8:30PM, OABI.OQ - Q2 2024 OmniAb Inc Earnings Call

Question: Stephen Willey - Stifel - Analyst : I was just kind of wondering where the potential repartnering of these CNS assets you're getting back from GSK and Roche fit within your current list of priorities. And were these development candidates that were in IND-enabling studies? Is that the right way to think about where they were from a development stage? And I know you mentioned that you maintain co-ownership of the IP associated with the Glaxo small molecule, but is that also the case for the Roche asset as well?

Question: Stephen Willey - Stifel - Analyst : Okay. And then maybe just kind of going back to the macro for a second, just kind of curious. I mean, obviously, you talked about how some of these prioritization efforts within big pharma tend to be cyclical. There was obviously a large CRO out yesterday with some pretty cautious commentary around big pharma spending just on the discovery and outsourcing front. Do those happenings influence kind of where you spend your time from a BD perspective?

Question: Stephen Willey - Stifel - Analyst : And then maybe just on the startup side, when you're engaging with these earlier stage companies, and perhaps these companies are even being formed around assets that are being discovered off your platform. How do you think about the economic return as it comes down to taking like a founder's stake in equity versus trying to maximize downstream economics? Or do you feel like you can accomplish both of those things within a specific deal structure?

Question: Conor Noel McNamara - RBC Capital Markets - Analyst : And just a question about 2025. In the press release, you talked about cash use going down significantly. How should we think about where the revenue step-up comes from? Do royalties start becoming more meaningful in 2025? Or is it going to be a similar mix, which is more of the milestones coming through? Is there any comment you can make on how we should think about that in 2025?

Question: Conor Noel McNamara - RBC Capital Markets - Analyst : Great. And by the way, in the disclosure on the absolute dollar amount, I think this is the first time you've broken it out by stage, right? The $3 billion is broken out, so I think that's helpful. Or have you shown that data before?

Question: Conor Noel McNamara - RBC Capital Markets - Analyst : That's really helpful. And then just quickly, you mentioned the European approval. Does that have any royalty revenue that flows through in 2024? Or is that a smaller opportunity for you guys? Is there any way to quantify that?

Question: Conor Noel McNamara - RBC Capital Markets - Analyst : Congrats on a solid quarter.