On November 12, 2024 OmniAb, Inc. (NASDAQ: OABI) reported financial results for the three and nine months ended September 30, 2024, and provided operating and partner program updates (Press release, OmniAb, NOV 12, 2024, View Source [SID1234648200]).

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"We are pleased to report another successful quarter demonstrating our continued commitment to innovation with the expansion of our technology platform and a growing partnership portfolio. Third quarter results reflect consistent growth across key metrics, driven by our planned initiatives and the dedication of our team," said Matt Foehr, Chief Executive Officer of OmniAb. "Our business is well capitalized, and we have a highly scalable model with cutting-edge technologies that are driving significant opportunities. As we move forward, we remain focused on delivering value to our stakeholders and creating sustainable, profitable growth."

Third Quarter 2024 Financial Results

Revenue for the third quarter of 2024 was $4.2 million, compared with $5.5 million for the same period in 2023, with the decrease primarily due to timing of milestones and lower ion channel service revenue.

Research and development expense was $13.3 million for the third quarter of 2024, compared with $13.9 million for the same period in 2023, with the decrease primarily due to lower share-based compensation expense. General and administrative expense was $7.1 million for the third quarter of 2024, compared with $8.5 million for the same period in 2023, with the decrease primarily due to lower legal and share-based compensation expense.

Net loss for the third quarter of 2024 was $16.4 million, or $0.16 per share, compared with a net loss of $15.7 million, or $0.16 per share, for the same period in 2023.

Year-to-Date Financial Results

Revenue for the nine months ended September 30, 2024 was $15.6 million, compared with $29.3 million for the same period in 2023, due to lower milestone revenue primarily related to a $10 million milestone in the prior year period for the first commercial sale of TECVAYLI (teclistamab) in the European Union.

Research and development expense was $41.8 million for the nine months ended September 30, 2024, which was unchanged from the same period in 2023. General and administrative expense was $23.4 million for the nine months ended September 30, 2024, compared with $25.4 million for the same period in 2023, with the decrease primarily due to lower outside service expenses. Amortization of intangible assets increased for the nine months ended September 30, 2024, primarily due to a $1.2 million impairment related to assets associated with two legacy unpartnered Ab Initio programs. Other operating income, net increased for the nine months ended September 30, 2024, primarily due to a $2.4 million reduction in contingent liabilities attributed to changes in ion channel programs.

Net loss for the nine months ended September 30, 2024 was $49.0 million, or $0.48 per share, compared with a net loss of $36.6 million, or $0.37 per share, for the same period in 2023.

As of September 30, 2024, OmniAb had cash, cash equivalents and short-term investments of $59.4 million.

During the third quarter of 2024, OmniAb sold 2.0 million shares of common stock through its at-the-market (ATM) program pursuant to the sales agreement with Jefferies. The net proceeds from these sales were $8.5 million.

Subsequent to the end of the third quarter, OmniAb sold 0.7 million shares of common stock through its ATM program for net proceeds of $2.9 million, which will be reflected in its December 31, 2024 financial statements.

2024 Financial Guidance

OmniAb continues to expect total operating expenses in 2024 to be slightly less than total operating expenses in 2023.

OmniAb now expects to end 2024 with a cash balance in the range of $50 million to $60 million, which includes proceeds from its ATM program. Given the current expected progression of the existing partnered pipeline, OmniAb expects cash use in 2025 to be lower than in 2024 excluding recent ATM program proceeds.

Third Quarter 2024 and Recent Business Highlights

During the third quarter of 2024, OmniAb entered into three new platform license agreements including with 92Bio, Memorial Sloan Kettering Cancer Center and Queen Mary University of London. In addition, OmniAb recently expanded its ion channel screening relationship with Syngenta that was initially established last year. As of September 30, 2024, the Company had 86 active partners and 352 active programs, including 33 OmniAb-derived programs in clinical development or being commercialized. OmniAb also recently entered into a new platform license agreement with Incyte Corporation.

Third quarter 2024 and recent partner and business highlights include the following:

IMVT-1402

Immunovant announced that the Investigational New Drug (IND) application has been cleared for IMVT-1402 in rheumatoid arthritis (RA), with a potential best-in-class profile in difficult-to-treat (D2T) RA.
Immunovant announced that five IND applications for IMVT-1402 have been cleared across a range of therapeutic areas and U.S. Food & Drug Administration divisions. The company also announced that it is on track to initiate potentially registrational trials with IMVT-1402 in four to five indications, including Graves’ disease (GD) and D2T RA, by March 31, 2025.
Batoclimab

Immunovant reported positive results from the Phase 2a trial of batoclimab in GD. High-dose batoclimab achieved a 76% response rate and a 56% antithyroid drugs (ATD)-free response rate in patients uncontrolled on ATDs at week 12.
Immunovant announced that batoclimab trials in myasthenia gravis and chronic inflammatory demyelinating polyneuropathy are fully enrolled to support data disclosures by March 31, 2025. Data from batoclimab trials in thyroid eye disease are now expected in the second half of calendar year 2025. All batoclimab data will inform future trials with IMVT-1402.
Acasunlimab

Genmab announced that based on encouraging data from the Phase 2 trial in non-small cell lung cancer (NSCLC), a Phase 3 trial is expected to start before the end date of 2024.
TEV-53408

Teva recently disclosed Phase 1 data for TEV-53408 showing a potential best-in-class profile noting high affinity for IL-15, prolonged suppression of free IL-15, and potential for a low dosing frequency. TEV-53408 was well tolerated in a first-in-human study, and a proof-of-concept study in celiac disease is in progress. Additionally, Teva disclosed the initiation of a clinical study in vitiligo, an autoimmune disease.
Sugemalimab

CStone announced that the UK Medicines and Healthcare products Regulatory Agency (MHRA) has approved sugemalimab in combination with platinum-based chemotherapy as a first-line treatment for adult patients with metastatic NSCLC without EGFR-sensitive mutations or ALK, ROS1, RET genomic alterations.
CStone announced long-term survival data for sugemalimab in combination with platinum-based chemotherapy as first-line treatment of stage IV NSCLC at the European Society for Medical Oncology (ESMO) (Free ESMO Whitepaper) Congress 2024. Four-year follow-up data showed that sugemalimab plus platinum-based chemotherapy continues to demonstrate a significant benefit in progression-free survival and overall survival compared with placebo plus platinum-based chemotherapy. The four-year survival rate was 32.1% versus 17.3%.
BC3195

BioCity presented interim clinical results on the safety and efficacy of its first-in-class antibody-drug conjugate BC3195, which targets CDH3 (P-Cadherin), in a Phase 1 clinical trial at ESMO (Free ESMO Whitepaper) 2024.
As of the data cut-off date (August 10, 2024), BC3195 demonstrated impressive antitumor activity in patients with advanced NSCLC with an overall response rate (ORR) of 36.4% (4 of 11 patients). The ORR was 80% (4 of 5 patients) in NSCLC with epidermal growth factor receptor mutations. BC3195 demonstrated manageable safety and tolerability, as well as favorable pharmacokinetic characteristics.
BC3195 is currently undergoing concurrent Phase 1 dose-optimization and dose-expansion studies in China.
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 (800) 549 8228 using the conference ID 94399. Slides, as well as the live and replay webcast of the call, are available at View Source