OmniAb, Inc. (NASDAQ:OABI) Q3 2025 Earnings Call Transcript

OmniAb, Inc. (NASDAQ:OABI) Q3 2025 Earnings Call Transcript November 4, 2025

OmniAb, Inc. misses on earnings expectations. Reported EPS is $-0.14 EPS, expectations were $-0.136.

Operator: “

Kurt Gustafson: “

Matthew Foehr: “

Michael Almisry: ” Leerink Partners LLC, Research Division

Unknown Analyst: “

Alexander Xenakis: ” Truist Securities |

Matthew Hewitt: ” Craig-Hallum Capital Group LLC, Research Division

Brendan Smith: ” TD Cowen, Research Division

Unknown Analyst: “

Operator: Good afternoon, and welcome to OmniAb’s Third Quarter 2025 Financial Results and Business Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. And I would now like to turn the call over to Kurt Gustafson, OmniAb’s Chief Financial Officer. You may begin.

Kurt Gustafson: Thank you, operator, and good afternoon, everyone. This is Kurt Gustafson, OmniAb’s Chief Financial Officer, and thank you all for joining our third quarter 2025 financial results conference call. There are slides to accompany today’s prepared remarks, and they’re available in the Investors section of our website at omniab.com. Before we begin, I’d like to remind listeners that comments made during this call by OmniAb’s management will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. These forward-looking statements are qualified by the cautionary statements contained in today’s press release and our SEC filings.

Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, today, November 4, 2025. Except as required by law, OmniAb undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Joining me this afternoon is Matt Foehr, OmniAb’s President and CEO. During today’s call, we will provide highlights on the company’s business and operations, partner and technology updates as well as our recent financial results and outlook. At the conclusion of the prepared remarks, we’ll open the call to questions. And with that, let me turn the call over to Matt.

Matthew Foehr: Thanks, Kurt. Good afternoon, everyone, and thanks for joining our Q3 call. Starting now with Slide #4. We continue to have nice deal flow throughout the third quarter, and the number of new program additions this year is far outpacing last year. Our program adds as of the end of Q3 already equaled the program adds we had in all of 2024. We’ve also grown and diversified our base of active partners, reaching a record high level, now exceeding 100. We see this as further validation of our differentiated proprietary technology platforms and their proven value to enable the discovery of next-generation therapeutics for our partners. We’re building the foundational momentum for our recently launched xPloration partner access program, which is designed to put our high-throughput single B-cell screening platform in the hands of our partners.

The xPloration sales funnel continues to grow, generating strong interest and new opportunities for us. And as the latest example of our commitment to pioneering innovations and sector leadership, in December, we’ll be launching a brand-new technology to add to our stack. We’re excited to share a little preview today of OmniUltra, which is the first transgenic chicken that produces cow-like antibodies with ultra-long CDRH3s. OmniUltra has the potential to open new markets and new business opportunities for us and to expand our reach into enabling the discovery of novel peptide therapeutics. I’ll provide more on this technology in a moment. While we continue to grow the number of partners and programs, we also realigned staffing levels in Q3 and further reduced operating expenses to drive efficiencies in our lean yet scalable operating model.

In addition, we enhanced our financial flexibility and strengthened our balance sheet with the closing of a $30 million private placement in late August. I want to welcome our new shareholders and thank the existing shareholders who participated in the transaction for their support. Moving to a review of our key business metrics now starting with Slide #5. We ended Q3 with 104 active partners. During the third quarter, we’ve highlighted that we completed new license agreements with A*Star and the University of Leeds. The distribution of our active partners by type, including discovery, commercial and academic continues to hold steady. And the same holds true for our distribution of partners on a geographic basis with just over half of our partners based here in the U.S. And I note that our international reach has continued to grow as we make a concerted effort to expand and diversify our partnership base.

With regard to new partnerships, increasingly, we also think there are innovative ways in which we can create value in a variety of time horizons, leveraging our technologies or assets that come out of our novel technology development and validation work. On Slide 6, the number of Active Programs leveraging our technologies increased to 399 as of the end of Q3. This includes a net addition of 36 programs year-to-date, of which 18 were added during the third quarter as we continued to see strong program addition momentum. During the third quarter, there were 6 programs that were terminated. And as I’ve said before, and I say often, program attrition is a normal part of our business and will continue to be due to shifts in partner priorities as well as budgetary and technical factors at our partners.

The graphics on Slide #7 highlight growth of our post-discovery stage programs that are in our portfolio as well as the advancement of these programs into and through clinical development. The number of programs in the post-discovery stage increased by 15% year-over-year. A number of new programs progressed to the preclinical stage of development. And in Q3, one program moved to the registration phase. These 61 post-discovery stage programs have contracted remaining potential milestones to OmniAb of approximately $1.3 billion, including $700 million from small molecule ion channel programs. Slide 8 shows the number of active clinical programs and approved products, which totaled 32 at the end of Q3. As of September 30, 2 new partner programs had entered the clinic in the year and 2 came out.

We are proud to report that subsequent to quarter end, the first OmnidAb -derived program entered into human clinical trials. As we launched the OmnidAb single-domain discovery platform less than 2 years ago, this is a significant milestone for a new technology, especially within such a short period of time. We also received confirmation that another bispecific antibody derived from our rodent platforms entered human clinical trials just last week. We’ll talk more about both of those new clinical programs after our partners have disclosed more details publicly. Overall, given our latest discussions with our partners and our line of sight into their work, we see the potential for a total of 5 new entries into clinical development for novel OmniAb-derived programs this year.

This is at the lower end of our previous range of projected clinical starts, primarily resulting from select partners simply shifting timing of clinical program initiations into early 2026. Also in regard to clinical programs, I note that we have multiple partners who will be presenting data at the ASH Annual Meeting in early December. So we’re looking forward to that as well. Turning now to Slide 9. Here, we’ve highlighted select recent updates for partner programs that are leveraging our technologies. At the Annual Meeting of the American Thyroid Association, Immunovant presented 6-month durability data from its Graves’ disease study showing sustained remissions with batoclimab. Their next-generation candidate, IMVT-1402, is advancing in 2 potentially registrational Phase III trials in Graves’ disease with top line results expected in 2027.

Moving to the right on this slide at ESMO, Arcus Biosciences reported median overall survival of 26.7 months from its Phase 2 EDGE gastric trial. The study combines domvanalimab with OmniAb-derived zimberelimab and chemotherapy in advanced gastric cancer, clearly reinforcing the potential for this treatment approach. Salubris Bio announced that China’s NMPA accepted its NDA for SAL003, which is a recombinant fully human anti-PCSK9 antibody for dyslipidemia. So this program moved from our Phase III bucket to the registration stage in Q3. And lastly, Rondo Therapeutics abstract on its first-in-class CD28 and Nectin-4 bispecific antibody was accepted for presentation at the Society for Immunotherapy of Cancer Meeting, which is taking place this week.

Turning now to Slide 10. Here, we highlight our clinical and commercial stage partner pipeline for Active Programs that carry downstream economics to OmniAb. Placement in this graphic is based on a program’s most advanced status in any geography or indication. Our partners continue to advance OmniAb-derived antibodies into and through the clinic. And this latest update shows Salubris Bio’s SAL003 moving to the registration phase, as I just mentioned. On Slide #11, I’d like to take just a quick moment to highlight progress with our xPloration partner access program. The early feedback we’re getting from partners using the instrument is that xPloration is performing extremely well and that it’s driving efficiencies in discovery workflows. We’re really pleased with the response so far as xPloration continues to gain traction since its launch in Q2 with a strong demand for lab demos from partners throughout Q3.

The efficiency and ease of use of xPloration are significant differentiators. This platform complements our core technology licensing business as we expect xPloration to be accretive to earnings and cash flow in both the short and the long term. As we grow our installed base of instruments, we expect to broaden our revenue channels with recurring single-use consumable sales, annual subscription services for software and maintenance contracts. Ultimately, we’re clearly seeing that xPloration deepens engagement with partners, has the potential to drive new program growth and showcases OmniAb’s innovation in integrating automation, AI-powered methods and discovery. Turning to Slide #12. Our internal innovation engine continues to strengthen our differentiation, especially with our growing suite of genetically engineered chicken-based discovery platforms.

We’ve had an established history of pioneering the development of advanced discovery technologies that the industry needs. We talk a lot about the advantages that a chicken immunization host presents for novel molecule discovery as about half of all therapeutic targets are more than 90% conserved in mammals. So using a chicken as an immunization host species for discovery can be really important and really valuable in many instances. Our OmniChicken technology shown on the lower left of this slide remains the world’s only validated humanized transgenic chicken for antibody discovery. Leveraging the evolutionary distance between birds and mammals, OmniChicken delivers robust immune responses and generates highly diverse antibody repertoires.

This platform has become foundational to many of our partners’ discovery pipelines. Building upon this, OmniClic incorporated a fixed light chain design, enabling seamless combinations of antibodies for bispecific and multi-specific applications. And OmnidAb, our single-domain antibody framework extends the utility of chicken-derived antibodies into small, stable therapeutic formats and opens up opportunities across a range of modalities. Molecules from OmnidAb are well suited for modular and multi-specific architectures while maintaining advantages in terms of manufacturability and stability. And as I mentioned, OmnidAb was launched less than 2 years ago, and it’s attracted a lot of new partners and already has generated a program that has entered the clinic.

And now as the latest entry in this stack, in December, we’re launching our newest transgenic chicken platform, which we are branding as OmniUltra. Moving to Slide #13. OmniUltra represents the next evolution of discovery tools as it’s the first and only transgenic chicken producing ultra-long CDRH3s, which is a structural feature of antibodies typically seen only in cows. Put another way, OmniUltra chickens are engineered to create antibodies with the physical characteristics that are found in cows, but with human features to make them suitable as human therapeutics. These ultra-long CDRH3s are designed to enable antibodies to reach unique heat or recess binding pockets and previously inaccessible epitopes, potentially unveiling therapeutic opportunities beyond the reach of conventional antibodies or conventional modalities.

What’s especially exciting is the potential ability of these ultra-long CDRh3s to be isolated as novel or autonomous binding fragments known as Pico bodies, which are the smallest known functional antibody fragment, roughly 1/3 the size of an antibody. Pico bodies could open up entirely new therapeutic applications and modalities. Turning now to Slide 14. So OmniUltra is not only expanding the boundaries of antibody discovery technologies, but also potentially opens up entirely new opportunities for us in peptide-based therapeutics. Along with its novel architecture, OmniUltra is engineered for in vivo optimization, allowing for the generation of molecules to essentially be preselected for specificity, affinity and structural stability. This process enhances the discovery of antibodies with unique binding domains with the potential to target previously inaccessible epitopes.

And importantly, as I said, OmniUltra is also leverageable for peptide therapeutic discovery. Now peptides are obviously a class of molecules that have seen a substantial increase in attention by the industry, in large part as a result of the GLP-1 drugs that have been so important to patients and to the industry globally. That’s led to significant growth and investment around peptide therapeutics from a discovery, development and downstream capacity and infrastructure perspective. And that’s part of why we think OmniUltra is really well timed. Unlike traditional peptide discovery methods, OmniUltra uses a transgenic chicken host to biologically produce optimized structured peptides on a validated scaffold. This capability could establish new classes of biologically derived therapeutics with potential applications across modalities.

OmniUltra highlights our team’s innovation leadership and extends our platform advantage into new therapeutic spaces, further differentiating our technology platform and reinforcing our long-term growth potential. Slide 15 sets the stage for OmniUltra’s formal launch, which is planned to be at the Antibody Engineering & Therapeutics Conference down in San Diego next month. At AET, we have 2 podium presentations and 2 poster presentations. There’s a lot more to say about OmniUltra beyond today’s little preview. So while at AET, we’ll be holding an investor webcast related to the OmniUltra technology, discuss the potential market use and applications and review the potential business impact of this highly innovative and pioneering technology.

The tech validation work that we completed with OmniUltra included a broad array of therapeutic targets, and we will touch on that work as well. We’ll be announcing details of the webcast as we get closer to the event. But for now, please mark your calendars for Monday, December 15, at 5:00 p.m. Eastern Time. Moving now to Slide 16. We’re excited about the prospects for OmniUltra as it significantly increases our potential universe of partners into the peptide discovery space and also obviously opens up new doors and opportunities in the antibody discovery space as well. As most of those who follow us know, our technology license deals generally have several components, including collaboration and service revenue, milestone payments and royalties upon commercialization of a program.

I want to highlight that OmniUltra builds on our established transgenic chicken capabilities, which require a service contract as our partners cannot perform the discovery service work on their own. And we think the new OmniUltra platform can drive higher collaboration and service revenue in the near term. And with that, let me turn the call over to Kurt for a discussion of our Q3 financials. Kurt?

Kurt Gustafson: Thank you, Matt. So on Slide 18, I’ll start with a review of revenue. For the third quarter of 2025, we reported revenue of $2.2 million, and this compares to $4.2 million for the same period in 2024. The decrease was primarily related to a reduction in milestones achieved and lower service revenue. Service revenue declined primarily due to the completion of a couple of small molecule ion channel programs earlier this year. And as a small offset to this decrease, the 2025 third quarter included xPloration revenue derived from the sale of consumables and a modest increase in royalty revenue. On Slide 19, we show our cost and operating expense for the third quarter of 2025, which decreased to $20.4 million from $23.9 million for the prior year period.

We saw decreases in both R&D and G&A expenses compared with last year, and this quarter also included a nonrecurring charge of approximately $800,000 related to a headcount reduction we made earlier in the quarter. Turning to Slide 20, I’ll focus on a few of the operating expense line items, starting with R&D expense, which decreased to $10.4 million from $13.3 million in the year ago period, primarily related to lower headcount and stock-based compensation as well as a decrease in external expenses due to the completion of certain ion channel programs earlier this year. G&A expense was $6.8 million for the third quarter of 2025 compared with $7.1 million for the same period in 2024, with the decrease primarily due to lower legal fees and stock-based compensation expense.

Net loss for the third quarter of 2025 was $16.5 million or $0.14 per share compared to a net loss of $16.4 million or $0.16 per share for the same period in 2024. On Slide 21, we have our balance sheet as of September 30, 2025. We ended the quarter with $59.5 million in cash. And as Matt mentioned, during the quarter, we completed a $30 million private placement of common stock, which netted the company $28 million. I’ll conclude with Slide 22 with a discussion of our 2025 financial guidance. We’ve recently received information that a few of the milestones that we were expecting in the second half of 2025 will now be pushed to 2026. We also identified further efficiencies in our operating structure. And as a result, we’re updating our guidance for this year.

We now expect that 2025 revenue will be between $18 million and $22 million and operating expense will be between $82 million and $86 million. As a reminder, approximately 40% of our operating expense is noncash, mostly due to stock-based compensation and the amortization of intangibles, primarily from historical company or technology acquisitions. We continue to expect that our cash used in 2025 will be lower than the cash used in 2024, excluding financings in both years. and we expect our year-end cash balance to be between $52 million and $56 million. And finally, our guidance on the tax rate remains unchanged at approximately 0% due to a valuation allowance. And with that, I’d like to open up the call for questions. Operator?

Q&A Session

Operator: [Operator Instructions] Your first question is from Puneet Souda from Leerink.

Michael Almisry: You have Micheal Sonntag on for Puneet. Congrats on the quarter. I just want to start my first question on the private placement. I was curious if you could offer some color on what motivated the timing of the placement and if you have any thoughts on the cash runway this now gives you if you expect this to get you to where you’re consistently cash flow breakeven?

Kurt Gustafson: Yes. Maybe I’ll provide some additional or some thoughts and then maybe Matt can jump in there. These are conversations that we have with our Board. We took a look at our forecast and decided it was the right time to sort of bolster the balance sheet. Markets seem to start becoming a little bit more favorable. And so we took that opportunity to strengthen the balance sheet. We don’t provide any sort of long-term guidance. I kind of gave you the guidance that we have for this year with regards to cash burn and cash balance. But I think this puts us in a good position. I feel like the company is now well capitalized. I don’t know, Matt, anything else to add?

Matthew Foehr: Yes. I mean I’ll add as well. Again, this provides us a level of flexibility for the business and made sense. And as Kurt said, we think the business is well capitalized. As we look out into the coming years, we’ll provide further guidance, but we feel good about where we are.

Michael Almisry: Okay. Great. And then on xPloration, I was wondering if you could provide some, I guess, additional color on customer conversations. What kind of customers in your partner base are you seeing some more interest? And if you have any thoughts on, I guess, bookings or order timelines? Any color you can provide there would be helpful.

Matthew Foehr: Yes. Yes, Michael. Yes, it’s been very busy on the xPloration front and interest has been very strong. I would say, generally, now we’ve got obviously a partner base or a partner universe now of 104 partners. It is definitely the higher tier of partners who are the ones who are the most active and likely the ones who will benefit the most from xPloration. We’ve been very busy with demos here at our Emeryville site as well as at some partner sites as well. So I think that bodes well for how things are lining up. Obviously, xPloration itself in terms of the instrument purchase is a capital expenditure, and we feel like our timing of launch was quite good and being very busy in the demo space in Q3 and into Q4 is very good timing as partners develop their budgets for 2026 and their capital spend plans.

So we feel good about where we’re placed. The feedback has been very positive around the efficiency of the instrument, the ease of use and kind of the broad user base from a lab perspective that xPloration can enjoy. So we’re feeling good about that.

Operator: Your next question is from Joseph Pantginis from H.C. Wainwright.

Unknown Analyst: Can you hear me? This is [ Sara ] on for Joe. Sorry if it was muted.

Matthew Foehr: We can hear you now, Sara.

Unknown Analyst: Yes. Just had one regarding OmniUltra. And just wanted to get a sense of launch readiness and if you’re able to, at this point, elaborate on the readiness of OmniUltra for launch? Has there been any beta or pilot projects completed or any potential partners that you already have lined up to adopt the platform once it goes live next month?

Matthew Foehr: Yes. Yes, Sara. We’ve done a substantial amount of validation work around OmniUltra with many, many targets that we know are of interest to the industry. So that’s work we’ve been doing here internally. And part of why we’re launching the technology with 2 podium presentations at the AET conference. So we’ll talk in a lot more detail about that specific work at the scientific conference at the time of launch. So we have a really good sense of the breadth of applicability of this technology and I think are really well positioned for the launch in December. So hopefully, that answers your question.

Operator: Your next question is from Kripa Devarakonda from Truist.

Alexander Xenakis: This is Alex on for Kripa. We also have a question on xPloration. It sounds like the conversations have been going really well. And do you have any update on the new thinking as to how much revenue can be generated from xPloration and over what time period?

Matthew Foehr: Yes. It’s still early days in the xPloration launch, obviously. We have said we expect xPloration to be accretive to both earnings and cash flow in both the short and the long term. That has a lot to do with kind of how the technology has been designed and how we’re implementing the launch. There are multiple revenue streams that are associated with xPloration. Of course, the instrument sale itself, which will bring revenue, and we have a nice margin on the instrument. And then we also have single-use proprietary consumables as well as service contracts and maintenance contracts. So we’ve not given precise guidance at this point. I think as we progress through the launch, as we get additional instruments sold and deployed, we’ll have more visibility there, but we’re feeling really good about how it’s positioned.

Alexander Xenakis: That makes sense. And a little bit of a follow-up. Are there other trade shows that you’re also demonstrating the technology and partnerships with? Or is it done mainly through the conversations directly with the company?

Matthew Foehr: No, we are also present at trade shows where we know our partners will be. Actually, in addition to launching OmniUltra at AET, for instance, we’ll also have a substantial xPloration presence there as well. And then we have some other ones lined up as well where we’ll have demo units and be doing either virtual or planning in-person demos with partners.

Operator: Your next question is from Matt Hewitt from Craig-Hallum.

Matthew Hewitt: Maybe first up, it sounds like you had — and I realize this is just part of the business, but you had a couple of customers that pushed out programs until 2026, milestones that you had anticipated later this year got pushed to ’26. Are you seeing any improvement? We’ve heard from several companies this earnings season that between the M&A activity that’s been pretty active as well as the funding environment that’s been improving for small and midsized pharma that the R&D budgets are kind of coming back online, that they’re starting to spend. And I’m just curious if this is just kind of a one-off with a couple of partners? Or are you seeing a little bit more of a broad trend that things are getting pushed to 2026?

Matthew Foehr: Yes. Thanks, Matt. I mean, broadly, and we kind of noted this really starting late in Q4 of last year with strong program addition momentum, right? We are seeing continued momentum in program additions that has been sustained through this year, which is very good to see. And I think we’re continuing to see momentum there. The connection or the element of milestones being pushed into 2026, I would, in this instance, categorize that as more what I consider standard development stuff, right? So it’s timing of clinical batches or processes in clinical start-up, things like that. In some instances, these were programs where partners had communicated to us their plan to start in Q4 and also had committed that plan publicly, but just with kind of standard development items had drifted into early 2026.

So a variety of factors. But we are seeing similar to what you were describing in terms of industry momentum, we’re seeing that in the form of strong program additions. Interestingly, we’re also seeing with some of our academic partners an increased focus on forming spin-out companies around assets and being much more focused on monetization of programs and assets that have come or can come out of our technology. So that’s kind of another interesting thing we’re starting to see as well. But hopefully, that gives you some color.

Matthew Hewitt: No, that’s very helpful. And then maybe kind of a similar line here, but — and I realize it’s early, it’s October. But as you’re having these conversations with your partners, what are you hearing as far as ’26 R&D budgets are concerned? I think there was a lot of, I guess, excitement that 2025 budgets look pretty good relative to ’24. And I realize there’s been some fits and starts during the year, but it does feel like maybe those budgets are going to get spent. Are conversations kind of indicating that we might see an increase in R&D budgets? And I guess, tied to that, with xPloration, do you anticipate that the feedback that you’re getting is that this is a Q1 purchase decision? Or could you still see some of these boxes sold already this year?

Matthew Foehr: Yes. Matt, so probably our — one of our best barometers is in the form of program starts, right? That’s really what we see is that when you see a new program start for a novel target, right, a lot of work in terms of novel biology goes on upstream of that by the partner. They’ve obviously committed a project team, and they’re starting a program. So that, again, we’ve seen really nice strong program addition momentum this year, and that’s been good to see. So I think that’s a good indicator. Most of our specific discussions around budget and budget planning more recently have been centered around xPloration, and that’s really just in the capital realm. And then downstream exact timing of orders can obviously be dependent on a variety of factors at the partner in terms of what work they’re doing when and how they’re gating out their capital spend in 2026. So yes, that’s kind of what we’re seeing.

Operator: Your next question is from Brendan Smith from TD Cowen.

Brendan Smith: Maybe just a quick one first on OmniUltra. Again, I fully appreciate it’s early, but can you maybe just help us understand how you all are thinking about the potential economics of some of those partnerships, maybe just relative to some of the other offerings that you guys have or ones on the books? And if you’re envisioning maybe there could be different terms based on how they want to use it, whether for antibodies or peptides or what have you? And maybe just if you anticipate any of those could potentially replace some of the existing partnerships in any instances?

Matthew Foehr: Yes, Brendan, I think we see OmniUltra as additive to the business, right, broadly applicable and opening up new fields for us. Obviously, our stable and large ecosystem of antibody-based partners now at 104. Many of those have — or will have or already have expressed interest in OmniUltra for things like bispecifics or CAR-T therapies. We have a number of partners in the radiopharma space, which is also a space that is growing rapidly as well, and I think we’ll continue to expand. But this really also adds an entirely new set of potential partners who are interested in peptide discovery. For some of our larger partners, they also are working in peptides as well as antibodies, but then there is a completely new set of partners who are more peptide focused.

And that has really increased over the last couple of years with the successes of the GLP-1 drugs, et cetera. So there’s a lot of investment going on in the peptide space. So we see it really as additive. In terms of your question of agreement structure, I think this does open new opportunities for us to drive service revenue in the near term for a variety of reasons. There’s also a lot of precedent out there for peptide-related discovery deals that follow the frameworks that we’ve built around upfront payments, service payments, milestones and royalties. But precise terms will obviously be an interplay of a variety of factors associated with each license.

Brendan Smith: Okay. Got it. And then maybe just quickly, if I could, just a follow-up. Just on the partner pipeline — can you just speak a little bit to how you all are thinking about maybe the initial ramp in some of these royalties? Just I know it’s kind of a range of different spaces you all are partnered in between FcRns and PCSK9 and PD-1. So just kind of wondering where you maybe see the fastest opportunity for some of those royalties to grow versus others that might just take a little bit longer to get up and running?

Matthew Foehr: Yes. Yes. I mean maybe I’ll talk generally about some of the programs, and then Kurt can maybe talk a little bit about kind of the revenue generally modeling around how milestones and royalties come into play. But now obviously, we have 2 drugs that are in the registration bucket, both of those currently in China. The newest is the SAL003, which is the anti-PCSK9 you referred to. So that was news here just from 4 weeks, 5 weeks back from Salubris. And they reported they submitted their NDA submission. It was accepted in China. They mentioned in their public disclosures that the NDA aligns with China’s accelerated approval framework for high-impact biologics. So that was generally good to hear. And then they’ve stated publicly they’re positioning for market entry in 2026.

They’ve also kind of highlighted comparable or superior efficacy to other anti-PCSK9 therapies and one that will be — that was developed domestically in China. So we’ll continue to keep an eye on that. That’s a drug that came originally out of our early partnership with WuXi for our rodent platforms, and it has a 3% global royalty associated with it. So that’s probably the newer one. And then as you look at the Phase III assets and Phase II assets, there are a number in there that folks are rightly paying attention to. Immunovant is doing great work around IMVT-1402 and has a couple of expected data events next year that we’re obviously keeping an eye on. Acatilimab with Genmab is in Phase III trials as well. That’s another one that folks are paying attention to.

And then now we’re starting to see growing attention around Teva’s 53408, which is an IL-15 for celiac, and they’re also pursuing some other indications. They’ve been really moving that quite aggressively and highlighting the program. So we’re cheering that on as well. But Kurt, maybe you want to talk through the…

Kurt Gustafson: Yes. I mean I think in terms of how we think about the royalty ramp, we typically take a look at what analyst consensus are for these drugs. So both acasunlimab and the 1402 compound, I mean, Genmab has been out there, said that they expect to launch in 2028. When I take a look at analyst estimates, that’s sort of what they’re projecting as well, and there’s a ramp associated with that. It’s similar with — similar timing for 1402. So we take a look at those analyst expectations in terms of how we model the royalties that we might ultimately get. And they’re pretty nice ramps and people have pretty nice forecast associated with both of those compounds. They’re expected to be very large drugs.

Operator: Your next question is from Stephen Willey from Stifel.

Unknown Analyst: This is [ Josh ] on for Steve. I just had a quick question on OmniUltra and how it differs from OmniTaur. I think I remember the OmniTaur platform sounded very similar with this generation of these ultra-long CDR3s or CDRH3s. Could you maybe just provide some color on how these platforms actually differ?

Matthew Foehr: Yes. Great question, Josh. And I’ll try not to get too geeky and technical. OmniTaur actually leverages cows, right? So these are sequences that are derived out of cows. And also, we’ve developed some downstream workflows and other things that drive value in OmniTaur. And we actually have a number of active OmniTaur programs, some of which are now at the preclinical stage approaching IND. OmniUltra leverages a chicken host to get that advantage of the evolutionary distance, right? So you’re able to leverage that distance of chickens from mammals to elicit a stronger immune reaction. And we’ve also engineered in some other features that have increased kind of the broad applicability of OmniUltra into a variety of spaces, including opening up opportunities in the peptide space. So at the core, the difference is the host, but there are obviously a number of other kind of finer technical details that broaden the applicability of OmniUltra.

Unknown Analyst: Okay. Great. And then just another question on the xPloration revenues. Is there any color you can maybe offer as to the breakdown between maybe the consumables versus the software versus the hardware? And do you think — do you anticipate maybe in the future providing any kind of metrics around the breakdown of sales related to the xPloration platform?

Matthew Foehr: Yes. No, it’s a good question. I think there’s not really a breakdown that we’ll have for you this quarter. It wasn’t a huge amount of revenue. It was — I guess I would say it’s mostly related to consumables. I think it’s still early days with the xPloration launch. As we get more into it, I think we’ll probably be able to provide some — a little bit more color on sort of what the average consumable usages per instrument and put out some other metrics like that. But at this point, it’s still pretty early. So stay tuned for that. As we see the launch continue and progress, hopefully, we’ll be able to provide that type of color.

Operator: Thank you. There are no further questions at this time. I will now hand the call back over to Matt Foehr for the closing remarks.

Matthew Foehr: Great. Thank you, operator. I’d like to thank everyone for joining us today on today’s call and for your questions and engagement. We look forward to discussing our fourth quarter financial results early next year. In the meantime, we’ll be participating in a number of investor conferences later this month, including Truist’s BioPharma Symposium this week in New York, Stifel’s Healthcare Conference that is next week and the Jefferies Global Health Conference in London. So as I mentioned, on December 15, we’ll also have — we’ll be formally launching OmniUltra, and we’ll have an investor webcast that day as well. And we look forward to providing additional details on that webcast next month. So thanks again, and have a great afternoon.

Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.