And really what OmniDeep is designed to do is leverage deep learning and really provide the best of our in vivo engineering capabilities and our in silico capability. So we use high-quality input data. We have deep learning models that we presented on at scientific conferences that leverage variational auto encoders to really extend insights that we already get from our screening hits to infer function on other untested areas suggesting new hits and then putting those through in silico developability filters. So we really are using AI and leveraging it here and have been for quite a while. It really does offer our partners a new larger scale discovery workflows with big data, allows us to use optimization tools for existing discovery campaigns and really provides high-quality training data, if you will, for a lot of those capabilities that we’ve built up over time.
So hopefully, that’s helpful to you.
Joseph Pantginis: No, it certainly does, Matt. I appreciate that color. And I guess my next question or my last question really applies to both the growth and the number of partners that you’ve been seeing as well as attrition rates. So I guess is there sort of a steady state because you have long-term data, not only from the spin out, but even from the times at Ligand and from the initial start of OmniAb, any steady-state rates that you’re sort of seeing with regard to partner growth. Obviously, we have the charts about number of partners growing, but how that links to the visibility of your BD discussions about how many are mature and the attrition rates, does that sort of over time? Or do you see a lot of volatility. And of course, I’m using the analogy from back in the day of Captisol, where it’s really changing from quarter-to-quarter.
Matthew Foehr: Yes, Joe. Look, I mean, we always — as you pointed out, we report our numbers net of attrition for active partners, active programs and active clinical and approved products. Largely because we find that gives the best clarity on where the business stands and where it’s headed. Attrition, of course, is very natural, very expected in pharmaceutical discovery and development, it can be different stage to stage. And as we’re building up our experience with programs and our portfolio, there are some interesting insights, but it is, I think, still early in some ways. I mean, one I will point out is that while time in different phases can vary program to program, based on therapy area and the work that’s needed based on a variety of factors investment profile from the partner and how many things are done in parallel versus sequentially and things like that.
You can have at least a difference in phase to phase. But I’ll point out our preclinical section, which is the orange slice in our pie charts in the slides we have a very high hurdle for what we put into preclinical. These are programs that are in pre-IND studies. We’ve actually not had any attrition in preclinical. Now it can be a different time frame to time frame in terms of how long something is in preclinical because if it’s in a cancer indication, it may move into the clinic more quickly than if it’s in a CNS indication or if it’s in a metabolic indication or inflammation. So we do see variability in time in the various stages, but differences stage to stage in terms of attrition rates, discovery versus preclinical versus clinical.
Joseph Pantginis: Got it. Very helpful color. Thank you, Matt.,
Operator: Your next question comes from the line of Stephen Willey from Stifel. Your line is now open. I’m sorry, — Your next question comes from the line of Chad Wiatrowski from TD Cowen.
Chad Wiatrowski: Hey guys, how’s it going. On the sales rep what’s the size of the sales force? And can you give that geographic mix? I know you mentioned U.S., Singapore and EU and do all the sales reps focus on the entire suite of transgenic animals, including the newly launched products?
Matthew Foehr: Chad, yes, this is Matt. Thanks for that. Yes. So we’ve built our business development team of really experienced folks who are deep scientific foundation as well as business foundation also. So we have a team of BD professionals here in the U.S. We have West Coast presence and East Coast presence and then also coverage of the middle of the U.S. Then we’ve got a BD professional based in the U.K. that covers Europe. We also have alliance team members that are based in Europe as well who support and are involved with our business development efforts. And then our Asia presence is based in Singapore, but covers all of Asia. So that’s our makeup of our BDP.
Chad Wiatrowski: Got it. Thanks. And then on Sugemalimab like does the approval in China of the additional indication or a potential U.S. approval give you any type of milestone? Or are these legacy type large upfront milestones largely cycled through the business after the Teclistamab one this year.
Kurt Gustafson: Yes. So specifically, for Sugemalimab, the approval milestones have sort of been hit already. So really the only thing left on that program is to receive royalties. So, we’re generating small, but kind of steady royalty revenues from China on that to the extent that there were — the drug was approved in additional territories we would hope that, that would translate into additional sales that would translate into additional royalties for us, but there’s sort of no other onetime payments that would come to us for milestones for that program.
Chad Wiatrowski: That’s helpful. Thanks for the questions, guys.
Operator: Your next question comes from the line of Stephen Willey from Stifel. Your line is now open.
Stephen Willey: Yes. Hopefully, you guys can hear me now. I apologize for that.
Matthew Foehr: We can hear you, Steve.
