OmniAb Reports 9% Revenue Growth to $4.154 Million in Q1 2025

OmniAb, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $4.154 million, a 9% increase from $3.801 million in the same period last year. The growth was primarily driven by a significant rise in license and milestone revenue, which surged 182% to $2.021 million, attributed to the recognition of a $1 million milestone payment and higher license fees. However, service revenue declined by 30% to $1.945 million, largely due to the discontinuation of certain ion channel research programs, while royalty revenue fell 41% to $188, reflecting lower net sales from partner products in China.

In terms of operating expenses, OmniAb reported a total of $22.998 million, down 13% from $26.354 million in the prior year. This reduction was mainly due to decreased research and development expenses, which fell to $12.602 million from $14.551 million, driven by lower share-based compensation and reduced external costs associated with ion channel programs. General and administrative expenses also saw a slight decrease, totaling $7.915 million compared to $8.337 million in the previous year. The company recorded a net loss of $18.200 million, a slight improvement from the $18.961 million loss reported in the same quarter of 2024.

OmniAb's balance sheet as of March 31, 2025, showed total assets of $306.182 million, down from $325.558 million at the end of 2024. Cash and cash equivalents decreased significantly to $10.892 million from $27.598 million, while short-term investments increased slightly to $32.703 million. The company’s stockholders' equity also declined to $273.516 million from $287.618 million, primarily due to the net loss incurred during the quarter.

The company continues to expand its operational footprint, reporting 95 active partners and 378 active programs utilizing its technology platform, an increase from 91 partners and 363 programs at the end of 2024. Notably, the number of active clinical programs rose to 33, with three approved products developed by partners. OmniAb's strategic focus remains on enhancing its technology offerings and expanding its market presence, with expectations of continued investment in research and development to drive future growth.

Looking ahead, OmniAb anticipates that its existing cash, cash equivalents, and short-term investments will be sufficient to support operations for at least the next 12 months. The company is also exploring additional capital-raising opportunities, including an "at the market" offering program that could provide up to $100 million in funding. Despite the challenges in the biotechnology sector, OmniAb remains optimistic about its long-term growth potential, driven by milestone payments and future royalties from partnered programs.