OmniAb (OABI, Financial) posted its first-quarter revenue at $4.2 million, falling short of the analyst expectation of $4.49 million. Despite this miss, the company has kicked off the year with a healthy flow of deals, covering both platform and asset-based agreements. The business remains robust, with a diverse pipeline of partner programs that are advancing through recent and anticipated clinical phases and data announcements.
In a strategic move, OmniAb has introduced the xPloration Partner Access Program, aimed at enhancing the scalability of its technology platforms. This initiative is expected to generate new business opportunities, which could positively impact earnings and cash flow both in the near term and beyond. This aligns with OmniAb's ongoing mission to innovate in discovery technologies and to deliver value to its partners and stakeholders. As the company looks forward, it is confident about its 2025 outlook, maintaining its focus on operational efficiency and leveraging its business model.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for OmniAb Inc (OABI, Financial) is $7.83 with a high estimate of $12.00 and a low estimate of $4.00. The average target implies an upside of 398.94% from the current price of $1.57. More detailed estimate data can be found on the OmniAb Inc (OABI) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, OmniAb Inc's (OABI, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
OABI Key Business Developments
Release Date: March 18, 2025
- Revenue: $10.8 million in Q4 2024, up from $4.8 million in Q4 2023.
- Net Loss: $13.1 million or $0.12 per share in Q4 2024, compared to $14.1 million or $0.14 per share in Q4 2023.
- Full Year Revenue: Increase excluding a $10 million milestone from the previous year.
- Full Year Net Loss: $62 million or $0.61 per share in 2024, compared to $50.6 million or $0.51 per share in 2023.
- Operating Expense: $2.7 million impairment charge in Q4 2024 related to small molecule ion channel assets.
- Cash Position: $59.4 million at the end of 2024.
- Active Partners: 18% year-over-year growth, totaling 91 active partners as of December 31, 2024.
- Active Programs: 12% increase, reaching 362 active programs as of December 31, 2024.
- 2025 Revenue Guidance: Expected to be in the range of $20 to $25 million.
- 2025 Operating Expense Guidance: Expected to be between $90 to $95 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OmniAb Inc (OABI, Financial) reported strong performance in 2024 with double-digit percentage growth in both the number of active partners and active programs.
- The company introduced new technologies and enhancements that are positively impacting partnerships and driving efficiencies.
- OmniAb Inc (OABI) achieved an 18% year-over-year growth in the number of active partners, reaching 91 active partners by the end of 2024.
- The number of active programs increased by 12% year-over-year, reaching 362 active programs as of December 31, 2024.
- OmniAb Inc (OABI) reported a substantial increase in total revenue for Q4 2024, reaching $10.8 million compared to $4.8 million in the same period in 2023.
Negative Points
- Service revenue declined as certain small molecule ion channel programs were completed and transitioned to partners.
- OmniAb Inc (OABI) recorded a $2.7 million impairment charge related to small molecule ion channel intangible assets.
- The net loss for Q4 2024 was $13.1 million, slightly lower than the $14.1 million loss in the prior year period.
- Royalty revenue was lower due to competitive market dynamics in China affecting product sales.
- The company expects a decrease in 2025 revenue due to a reduction in non-cash service revenue.
