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OmniAb (OABI)
NASDAQ:OABI
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OmniAb
(NASDAQ:OABI)
48Neutral
Positive Factors
Business Model
OABI is viewed as a differentiated antibody therapeutics animal platform provider enabling market-leading partner program growth and a highly scalable business model.
Partnership Growth
OmniAb experienced approximately 18% growth year over year in the number of active partners and programs.
Negative Factors
Financial Outlook
OABI initiated guide at $20M-$25M, coming in below the Street's $46M and analyst's $33M, raising concerns about its financial outlook.
Revenue Guidance
The fiscal year revenue guidance of $20-25M was more conservative than expected, falling below consensus estimates.
OmniAb (OABI) vs. S&P 500 (SPY)
Market Cap
$307.37M
Dividend YieldN/A
Average Volume (3M)737.44K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-22.75%
EPS Growth-19.65%
CountryUS
Employees114
SectorHealthcare
Sector Strength71
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.61
Shares Outstanding121,012,580
10 Day Avg. Volume1,038,649
30 Day Avg. Volume737,439
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.71
Price to Cash Flow (P/CF)-20.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside214.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
OmniAb Business Overview & Revenue Model
Company DescriptionOmniAb, Inc., a biotechnology company, provides therapeutic antibody discovery technologies in the United States. The company's discovery platform provides industry partners access to the diverse antibody repertoires and screening technologies to enable discovery of next-generation therapeutics. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic (transgenic rat) and OmniClic (transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur that features unique structural attributes of cow antibodies for complex targets. The company was founded in 2012 and is headquartered in Emeryville, California.
How the Company Makes MoneyOmniAb generates revenue primarily through licensing agreements and strategic partnerships with pharmaceutical companies and research institutions. These collaborations allow OmniAb to monetize its antibody discovery platforms by providing access to its proprietary technologies in exchange for upfront payments, milestone payments, and royalties on subsequent drug sales. Additionally, the company may engage in research and development contracts, where it receives funding to conduct specific drug discovery projects. Significant partnerships with established pharmaceutical firms enhance OmniAb's earnings potential by expanding its customer base and increasing the likelihood of successful drug development outcomes.
OmniAb Financial Statement Overview
Summary
OmniAb faces significant operational and cash flow challenges, with negative margins and cash flows. Despite a strong equity position, consistent net losses and declining revenue raise concerns about financial health.Income Statement
The company exhibits declining revenue with a significant drop from 2022 to TTM 2024. Gross profit margin stands at 21.68% for the TTM, lower compared to previous periods. Both EBIT and EBITDA margins are negative, indicating ongoing operational challenges. The net profit margin is also negative, reflecting consistent losses.45
Neutral
Balance Sheet
The company maintains a strong equity position with an equity ratio of 88.00% in TTM 2024, reflecting low leverage. However, the debt-to-equity ratio is 0.08, indicating manageable debt levels. Return on equity is negative due to net losses, suggesting inefficiencies in generating returns from equity.60
Neutral
Cash Flow
Operating and free cash flows are negative in TTM 2024, with a significant deterioration from prior periods. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Free cash flow growth is also negative, indicating issues in cash generation.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 20.41M | 34.16M | 59.08M | 34.75M | 23.27M | 18.32M | Gross Profit |
| 4.42M | 34.16M | 42.83M | 19.78M | 23.27M | 18.32M | EBIT |
| -79.79M | -69.42M | -26.65M | -35.61M | -25.62M | -13.03M | EBITDA |
| -62.60M | -49.73M | -13.01M | -19.38M | -10.59M | -2.11M | Net Income Common Stockholders |
| -63.02M | -50.62M | -22.33M | -27.04M | -17.56M | -13.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 86.98M | 86.98M | 88.27M | -13.85M | -2.59M | 0.00 | Total Assets |
| 401.99M | 375.23M | 421.21M | 304.46M | 295.38M | 262.32M | Total Debt |
| 25.56M | 25.56M | 25.80M | 13.85M | 2.59M | 2.27M | Net Debt |
| 9.20M | 9.20M | -7.59M | 27.70M | 5.18M | 2.27M | Total Liabilities |
| 87.40M | 60.64M | 79.84M | 70.16M | 59.84M | 44.13M | Stockholders Equity |
| 314.58M | 314.58M | 341.37M | 234.31M | 235.54M | 218.19M |
| Cash Flow | Free Cash Flow | ||||
| -108.61M | 703.00K | -20.75M | -9.74M | 1.87M | -5.45M | Operating Cash Flow |
| -105.23M | 2.35M | -3.59M | -5.67M | 3.62M | -5.20M | Investing Cash Flow |
| 112.45M | -18.38M | -73.31M | -4.03M | -26.98M | -12.10M | Financing Cash Flow |
| 8.68M | -892.00K | 110.74M | 9.70M | 23.36M | 17.29M |
OmniAb Technical Analysis
Negative
2.54
Price Trends
3.32
Negative
3.62
Negative
3.93
Negative
Market Momentum
-0.24
Positive
32.16
Neutral
19.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OABI, the sentiment is Negative. The current price of 2.54 is below the 20-day moving average (MA) of 3.17, below the 50-day MA of 3.32, and below the 200-day MA of 3.93, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 19.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OABI.
OmniAb Risk Analysis
OmniAb disclosed 77 risk factors in its most recent earnings report. OmniAb reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OmniAb Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.59B | 32.73 | 8.05% | ― | 17.35% | 151.40% | |
70 Outperform | $37.33B | 43.77 | 17.33% | ― | 78.01% | ― | |
60 Neutral | $1.25B | ― | -62.41% | ― | 5.10% | 30.45% | |
59 Neutral | $36.86B | ― | -414.62% | ― | 22.97% | 38.54% | |
49 Neutral | $6.90B | 0.78 | -53.19% | 2.46% | 20.86% | 1.26% | |
48 Neutral | $307.37M | ― | -20.60% | ― | -22.75% | -19.65% | |
43 Neutral | $2.71B | ― | -27.85% | ― | ― | -10.19% |
* Healthcare Sector Average
Performance Comparison
OABI
OmniAb
2.44
-2.75
-52.99%
ALNY
Alnylam Pharma
280.96
128.99
84.88%
BMRN
BioMarin Pharmaceutical
71.53
-16.21
-18.48%
XENE
Xenon
34.90
-7.76
-18.19%
ARGX
Argenx Se
605.52
207.95
52.31%
ADPT
Adaptive Biotechnologies
8.42
5.54
192.36%
OmniAb Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: -20.38% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
OmniAb exhibited strong growth in active partnerships and revenue, highlighting the positive reception of their technologies and notable advancements in their pipeline. However, the decline in service revenue, impairment charges, and reduced revenue guidance for 2025 present challenges. The overall sentiment is cautiously optimistic, with a balanced view of achievements and obstacles.Highlights
Significant Revenue Growth
Total revenue increased to $10.8 million in Q4 2024 from $4.8 million in Q4 2023, primarily driven by higher license and milestone revenue due to new deals and clinical advancements.
Increase in Active Partners and Programs
Active partners grew by 18% to 91, and active programs increased by 12% to 362 as of December 31, 2024, showcasing strong industry interest in OmniAb's technologies.
Strong Pipeline Development
Five new OmniAb-derived programs entered clinical trials in 2024, with potential for 5 to 7 new entries in 2025, indicating a robust pipeline.
Financial Stability
OmniAb exited 2024 with $59.4 million in cash, at the top end of the guidance range provided in the last earnings call.
Positive Partner Developments
Genmab's Acasunlimab, Teva's pipeline, and Immunovant’s IMVT-1402 and Batoclimab highlight promising developments with significant market opportunities.
Lowlights
Decline in Service Revenue
Service revenue declined due to the completion of small molecule ion channel programs, which were transitioned to partners.
Impact of Market Dynamics in China
Lower royalty revenue was reported due to competitive PD-1, PD-L1 market dynamics in China, affecting product sales.
Impairment Charges
A $2.7 million impairment charge was recorded related to small molecule ion channel intangible assets due to a strategic focus shift towards antibodies.
Flat Net Growth in Clinical Programs
Despite new clinical additions, the net growth in active clinical programs was flat year-over-year due to program attrition.
Guidance for 2025 Revenue
Revenue guidance for 2025 is set at $20 million to $25 million, reflecting a decrease due to the reduction in non-cash service revenue.
Company Guidance
During the call, OmniAb Inc. provided guidance for 2025, projecting total revenue to be in the range of $20 million to $25 million. The company reported an 18% year-over-year growth in active partners, reaching 91 as of December 31, 2024, and a 12% increase in active programs, totaling 362 net of attrition. OmniAb anticipates 5 to 7 new entries into clinical development in 2025, with 32 active clinical programs and approved products currently in place. Operating expenses for 2025 are expected to decrease, with a forecasted range of $90 million to $95 million, and the company aims to reduce cash use compared to 2024. The effective tax rate is expected to be around 0% due to a valuation allowance offsetting the tax benefit associated with the net loss.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.