OmniAb, Inc. has recently released its 10-K report, providing a detailed insight into the company's financial performance and operations. The biotechnology company specializes in providing therapeutic antibody discovery technologies in the United States. The company's core offering, the OmniAb platform, utilizes proprietary transgenic animals to generate antibodies with human sequences, facilitating the development of human therapeutic candidates. The platform includes OmniRat, OmniChicken, and OmniMouse, which have been genetically modified to streamline the development of human therapeutic candidates. Additionally, the company's OmniFlic and OmniClic address industry needs for bispecific antibody applications, while OmniTau offers unique structural attributes of cow antibodies for complex targets. OmniAb was founded in 2012 and is headquartered in Emeryville, California.
In the 10-K report, Item 7 discusses the Management’s Discussion and Analysis of Financial Condition and Results of Operations. The report emphasizes the company's focus on licensing cutting-edge discovery research technology to the pharmaceutical and biotech industry, enabling the discovery of next-generation therapeutics. As of December 31, 2023, OmniAb had 77 active partners with 325 active programs using the OmniAb technology platform. This included 28 OmniAb-derived antibodies in clinical development by partners, one under regulatory review, and three approved products. The report also highlights the launch of OmniDeep, a suite of in silico, AI, and machine learning tools for therapeutic discovery and optimization, as well as the launch of OmnidAb, an in vivo platform for the discovery of single domain antibodies based upon a human VH scaffold that affinity matures in a chicken host environment.
Furthermore, the report details the closing of the Business Combination and Separation from Ligand, which occurred on November 1, 2022. Following the Separation and Distribution, OmniAb began accounting for its financial activities as an independent entity. The report presents key business metrics, including active partners, active programs, active clinical programs and approved products, and approved products. These metrics are used to evaluate the company's business, measure performance, identify trends, formulate financial projections, and make strategic decisions.
The Results of Operations section in the report provides a breakdown of the company's revenue and operating expenses for the year ended December 31, 2023, compared to the year ended December 31, 2022. Total revenue for 2023 was $34.16 million, a decrease of 42% from 2022. License and milestone revenue decreased by 47%, service revenue decreased by 35%, and royalty revenue decreased by 6%. Operating expenses increased by 21%, with research and development expenses rising by 17% and general and administrative expenses increasing by 34%. The company reported a net loss of $50.62 million in 2023, a significant increase from the net loss of $22.33 million in 2022.
The report also includes details on other income (expense) and the income tax benefit. The effective tax rate for the year ended December 31, 2023, was 21.4%, while the income tax benefit increased by 269% compared to 2022.
The market has reacted to these announcements by moving the company's shares -2.5% to a price of $5.17. For the full picture, make sure to review OmniAb's 10-K report.
