On November 9, 2023, OmniAb Inc (OABI, Financial) released its financial results for the third quarter of 2023, revealing a decrease in revenue and an increase in net loss compared to the same period last year. The company also provided updates on its business operations and partner programs.
Performance and Challenges
OmniAb Inc (OABI, Financial) reported a decrease in third-quarter revenue to $5.5 million, down from $6.9 million in the third quarter of 2022. The decline was primarily attributed to lower service revenue following the completion of discovery work on certain ion channel programs. Despite challenging macroeconomic conditions, the company's active partner programs grew to 314 by quarter-end, up from 291 at the start of the year.
Financial Achievements and Analysis
While Q3 saw a dip in revenue, the year-to-date financials tell a more positive story. Revenue for the nine months ended September 30, 2023, was $29.3 million, marking an increase from $23.7 million for the same period in 2022. This growth was largely due to a $10.0 million milestone payment and progress with the batoclimab program. However, service revenue was lower, primarily related to the completion of work on certain ion channel programs and a one-time adjustment related to the extension of a program with GSK.
Research and development expenses for the third quarter increased to $13.9 million, up from $13.2 million in the same period last year, mainly due to higher personnel costs. General and administrative expenses also rose to $8.5 million in Q3 2023, compared to $5.6 million in Q3 2022, reflecting costs associated with being an independent publicly traded company.
The net loss for the third quarter of 2023 widened to $15.7 million, or $0.16 per share, from a net loss of $12.6 million, or $0.15 per share, in the same period in 2022. For the nine months ended September 30, 2023, the net loss was $36.6 million, or $0.37 per share, compared with a net loss of $29.2 million, or $0.35 per share, for the same period in 2022.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, OmniAb had cash, cash equivalents, and short-term investments totaling $96.6 million. Due to delays in partner program milestones, the company now expects its year-end balance to be slightly lower than at the end of 2022. However, current funds, along with cash generated from operations, are anticipated to be sufficient to support the company's operations for the foreseeable future.
Following the spin-off from Ligand Pharmaceuticals Incorporated on November 1, 2022, OmniAb became an independent entity. Financial results prior to this date are presented on a carve-out basis from Ligand’s historical records.
Business Highlights
OmniAb entered into three new license agreements during the third quarter, including with GigaMune, Polaris Therapeutics, Inc., and Novartis, bringing the total active partner count to 76. The company's partners have made significant progress, with two programs entering clinical trials and various other developments.
OmniAb's commitment to innovation was underscored by the introduction of its new OmnidAb™ technology and the appointment of key personnel to enhance its research capabilities. The company's Research & Technology virtual event, held on the same day as the earnings release, showcased its latest technology offerings.
For more detailed information on OmniAb Inc (OABI, Financial)'s financial results and business updates, please visit OmniAb's Investor Relations.
It is important to note that the information provided in this summary is based on the company's earnings release and should be read in conjunction with OmniAb's filings with the Securities and Exchange Commission, which may provide more detailed information.
Explore the complete 8-K earnings release (here) from OmniAb Inc for further details.
