OmniAb, Inc. (NASDAQ:OABI) Q3 2023 Earnings Call Transcript

Page 3 of 19

So we’ve had a number of programs move from discovery to preclinical. We’ve had five programs moved from preclinical to Phase I clinical trials and one program moved from a Phase III to its first international filing. I want to note here as well that our definition of preclinical is something of a high hurdle. We don’t put something in that preclinical slice of the pie chart, unless it is in pre-IND studies and the partner is moving towards filing an IND and entering into clinical trials. So that’s quite a high bar that we use in defining preclinical. But as you see, there are 14 programs in that slice. We’ve also had growth in active clinical programs. We started off 2023, indicating our expectation publicly that we expected three to five new clinical starts this year.

And at the end of Q3, we are at five. So we’ve had five new clinical programs from — of OmniAb-derived antibodies entered the clinic this year. Seagen had a bispecific. Immunovant entered the clinic with IMVT-1402, which is a next-generation FcRn antagonist. They’ve also already reported out positive data for that program, and indicated this morning, they expect more data for that program before the end of this month. Gloria entered into its first clinical trial for an anti-LAG-3. And then in the third quarter, Roche entered into the clinic with a bispecific antibody. And Cessation Therapeutics entered into clinical trials with an antibody with a very interesting and important medical use as an anti-fentanyl. Obviously, fentanyl, a lot of reporting of the medical tragedy and growth in medical need around preventing fentanyl overdose.

And this is a really interesting use of an antibody, and that’s an issue not only here in the United States, as has been widely reported, but also now becoming more of an issue in other countries as well. I do want to note here on the Roche program, which entered the clinic in Q3. That is a program that is subject of a fully paid license that was essentially a grandfathered license that we inherited from a company that we acquired. So there are no economics to that program. So I want to be clear about that. But it is a further validation of the importance of our technology in a variety of disease spaces. We continue to monitor the progress of the 14 preclinical stage programs as those approach Phase I clinical trials. As I mentioned on the prior slide, we have a very high hurdle for what we call preclinical.

These are programs that are in pre-IND studies that are approaching the clinic. This next slide is becoming a bit of an eye chart. As more and more things enter the clinic, we are now at 31 programs that are either in clinical trials, in registration or approved. This is becoming harder and harder to read on a slide. We are considering other ways to reflect our pipeline to investors in the outside world, bulls eye charts and the like, which may be more amenable to showing not only the diversity of partners, the growing diversity of therapy areas as we get deeper into the pipeline, but also the progression as well. And importantly now, as I kind of wrap up my section here, we’re announcing today that we are launching OmnidAb. And in fact, we’ve already launched it.

We have partners now that are already leveraging this newest technology of ours in active programs. OmnidAb put simply is the first and only transgenic chicken that is producing single-domain antibodies. And this is a growing important class and one that creates a lot of interesting opportunities, not only medically and scientifically but for the business as well. And Bill is going to talk more about that, and Todd will also talk about partner perspectives around OmnidAb as well. And as I wrap up here, I just want to talk a little bit about our key areas of focus going forward. We believe we are well positioned for future growth. And we believe we are making an enduring and significant impact on human health and on the industry as a whole. We feel like as we enter 2024, as I said, the business, the pieces are aligning for the business and we feel like it’s positioned to sing, and we are leveraging a highly scalable business where investments in technology and innovation really are informed by deep discovery relationships with our partners.

We have quite — I’ll use a non-scientific word and say quite intimate relationships with our partners around not only the challenges that they’re facing today and the types of antibodies and antibody-based modalities that they want to pursue, but also the challenges that they’re facing tomorrow. We’re focused on partner pipeline development and expansion, continued what we call workflow versatility initiatives, expanding the reach of our platform as well as new technology development and launches. At our foundation is a focus on stakeholders. That’s a really important part of our foundation. I’m quite proud of the team that we have, fantastic colleagues to work with. We have a strong culture. We really do focus on developing, hiring and motivating the best employees.

Page 3 of 19