On March 20, 2024, OmniAb Inc (OABI, Financial) released its 8-K filing, detailing its financial results for the fourth quarter and full year ended December 31, 2023. The company, known for its therapeutic antibody discovery technologies, faced a significant decrease in revenue and reported a widened net loss for the quarter and the year.
Company Overview
OmniAb Inc offers a cutting-edge platform for the discovery of fully-human antibodies, leveraging the Biological Intelligence™ of its proprietary transgenic animals, including OmniRat®, OmniMouse®, and OmniChicken®. These technologies are crucial for the rapid development of therapeutics across a wide range of diseases.
Financial Performance and Challenges
The fourth quarter saw a sharp decline in revenue to $4.8 million, down from $35.3 million in the same quarter of the previous year. This decrease was primarily due to the absence of a $25.0 million milestone payment received in 2022. The full-year revenue also saw a decrease, from $59.1 million in 2022 to $34.2 million in 2023. The net loss for the fourth quarter was $14.1 million, or $0.14 per diluted share, a significant shift from the net income of $6.8 million, or $0.07 per share, in the prior year's quarter. For the full year, the net loss was $50.6 million, or $0.51 per share, compared to a net loss of $22.3 million, or $0.26 per share, in 2022.
Despite these challenges, the company's financial achievements, such as maintaining a robust cash position with $87.0 million in cash, cash equivalents, and short-term investments, are important for sustaining its operations and investment in research and development. This is particularly significant in the biotechnology industry, where long-term investment is critical for innovation and bringing new therapies to market.
Key Financial Metrics
Research and development expenses increased to $56.5 million for the year, up from $48.4 million in 2022, reflecting the company's commitment to advancing its technology platform. General and administrative expenses also rose to $33.3 million from $24.9 million, attributed to the costs of operating as an independent public entity.
The company's balance sheet remains solid, with total assets amounting to $375.2 million. The stockholders' equity stood at $314.6 million, indicating a strong financial foundation for future growth.
Looking Ahead
OmniAb expects its operating expenses in 2024 to mirror those of 2023, with a strategic focus on leveraging the growth of the business. The company anticipates its cash use in 2024 to be similar to 2023, excluding the one-time milestone payment received last year. With the expected progression of its partnered pipeline, OmniAb foresees a substantial reduction in cash use in 2025.
Throughout 2023, OmniAb expanded its partnership base and launched two new technologies, OmniDeep™ and OmnidAb™, which are expected to enhance the company's antibody discovery and optimization capabilities. The company ended the year with 77 active partners and 325 active programs, including 32 OmniAb-derived programs in clinical development or commercialization.
OmniAb's inclusion in the Nasdaq Biotechnology Index (NBI) as of December 18, 2023, is a testament to its growth potential and industry recognition.
For a detailed discussion of OmniAb's financial results and business highlights, management will host a conference call with accompanying slides, accessible via the company's investor relations website.
For more information on OmniAb's financial performance and strategic initiatives, visit www.omniab.com.
Explore the complete 8-K earnings release (here) from OmniAb Inc for further details.
