OmniAb, Inc.

Good afternoon and welcome to OmniAB Inc third quarter 2024 financial results and business update conference call. At this time all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder this conference is being recorded. I would now like to turn the call over to Kurt Gustafson, OmniAb Inc. Chief Financial Officer. You may begin. Thank you.

Thank you, Operator, and good afternoon to everyone. This is Kurt Gustafson, OmniAb's CFO. Thank you all for joining our third quarter 2024 financial results conference call. There are slides to accompany today's remarks, and they're available in the investor section of our website at www.omniab.com. Before we begin, I'd like to remind listeners that comments made during this call by management will include forward-looking statements within the meaning of 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 our 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 12th, 2024. 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 on the call today is Matt Fork, OmniAB's President and CEO. And during today's call, Matt and I will provide highlights on the company's operations, partner and technology updates, and our recent financial results. 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.

Thanks, Kurt. Good afternoon, everyone, and thanks for joining us today on our third quarter call. We've continued to deliver robust performance across our key metrics and are building momentum in the business. With strong execution in a leverageable business model, we're well situated to navigate a variety of industry cycles with a business that's now positioned for success. Our diversified base of partners and programs continues to grow and continue to grow during the third quarter. Despite a backdrop of a somewhat challenging macro environment presenting headwinds to some areas of the pharma discovery tools and technology space this year. As our partners' clinical stage programs advance, we're also gaining better insights into timing around key inflection points for preclinical and later stage programs. These post-discovery programs represent just a subset of our growing portfolio and have over $550 million in potential milestones to on the app. We're committed to driving innovation, to further differentiate our technologies and to bolster our pipeline. And we're excited both about the potential opportunities ahead and our important place within the global pharmaceutical industry. I'll now quickly review some of our business metrics starting here on slide number five. As shown here on the chart on the left-hand side, we ended Q3 with 86 active partners. We signed three new platform license agreements during the quarter, That included new agreements with 92Bio, Memorial Sloan Kettering Cancer Center, and Queen Mary University of London. Strong partnerships like these are fundamental to our success, and we remain committed to expanding our partnership base while helping partners realize their research and discovery goals. Also, I'll mention here that we recently expanded our ion channel screening relationship with Syngenta, which began last year. And we also recently entered into a new license with Insight Corporation. We're looking to finish the year strong in our business development and licensing efforts. And this year could potentially be our best year ever in that regard. Our growth and partner count reflects the industry's interest in our technology and our dedication to both innovation and collaboration. By fostering these relationships, we believe we're creating new opportunities for mutual success. And an added benefit is that our deep relationships with our partners help inform the intelligent expansion of our platform. Our partnerships provide a valuable vantage point on current industry trends and future opportunities, and also keep OnTheApp on the leading edge of in-demand technologies. The number of active programs underway by our partners remains robust, and year-to-date new program additions have been strong. As shown here on slide number six, as of September 30th, active programs increased to 352 net of attrition. As you'll see on this slide, we're now providing more detail on our active programs. We're displaying both attrition and additions on the right side of the slide in the call-out bar graph, shown here on the screen in the orange and the green bars. As of the end of the third quarter, we had 12 terminations and 39 active program additions. We often say that terminations or attrition are a natural part of drug development. And as we've noted this year and as reported more broadly in the industry, certain pharma companies continue to realign and reprioritize their therapeutic programs and pipelines. Having said that, our net growth in the number of active programs continues to validate our technology platform. We've generated growth net of attrition over multiple years now in a variety of macroeconomic and industry cycles, which I think demonstrates our ability to continuously evolve and enhance our technologies and expand our reach. As I mentioned on the previous slide, our deep relationships with our partners position us really well as we focus our innovation efforts. Now on slide seven, as of September 30th, our partners had 33 active clinical programs and approved products. During the quarter, GENMAB's GEN1057, an investigational proprietary bispecific antibody, and Merck KGA's M5542, which is a fusion protein, both advanced into Phase I clinical trials. GENMAB's GEN1053 came out of our clinical program count shown on this slide and shifted back to the preclinical stage. According to GENMAB's public disclosures, they're discontinuing a Phase I-II clinical trial in solid tumors for GEN1053, while preclinical activities and other indications remain active and ongoing. As of the end of Q3, three new OmniAB-derived programs have entered human clinical trials in 2024. Based on discussions with our partners, we continue to expect that we'll see one to three additional entries in the clinical development for novel OmniAb-derived antibodies by year end. Our post-discovery assets, which include preclinical and later stage programs, have the potential to drive near-term and mid-term value generation. Now on slide number eight, you see the increased count in these assets. Over the past two years, We've maintained impressive growth with a 40% increase in the number of these programs, reaching a total of 53 by the end of Q3. As I mentioned earlier, the programs depicted here have over $550 million in contracted potential milestones to OmniApp. The successful progression of our partners' programs showcase our collaborative efforts and our shared vision, along with the value that our technologies can create. And here on slide number nine, I'll just briefly touch on some select partner updates. Immunovant has made significant progress on development of IMVT-1402. And late last week, they announced IMD clearance for rheumatoid arthritis, where they stated that IMVT-1402 has a potential best-in-class profile for difficult-to-treat RA. They also announced that five IMDs, have been cleared by the FDA in a range of therapeutic applications, and that they're on track to initiate potentially registrational trials of IMBT-1402 in four to five indications by the end of Q1 of next year. And they also reported positive results from the Phase IIa trial of Bataclumab in Graves' disease. In addition, they announced alignment with the FDA and IND clearance and an expectation to initiate a pivotal trial of IMVT-1402 in Graves' disease by the end of this year. GenMab highlighted both acosunlumab and GEN-1057 on their earnings call last week as well. They described their priority in continuing to build a world-class differentiated pipeline and highlighted the Phase III study of acosunlumab in second-line non-small-cell lung cancer and that it's on track to start this year. They also highlighted the recently initiated Phase I-II trial of GEN1057 in malignant solid tumors. At the ESMO conference, BioCity presented interim Phase I clinical trial results on the safety and efficacy of their first-in-class antibody drug conjugate, BC3195, which targets CDH3. They reported that 3195 demonstrated impressive anti-tumor activity in patients with advanced non-tumor cell lung cancer, and that the drug is in concurrent dose optimization and dose expansion studies in China. And TEVA recently disclosed phase one data for TEV53408, which is an anti-IL-15 discovered in our OmniRAT technology. That indicated that 408 is showing a potential best-in-class profile, noting high affinity for IL-15, prolonged suppression of free IL-15, and a potential for low dosing frequency. It was well-polarated in a first-in-human study, and a proof-of-concept study in celiac disease is in progress. And last week, Teva also disclosed the initiation of a clinical study in vitiligo, which is an autoimmune disease with significant unmet medical need. And on my last slide here, slide number 10, I'd like to highlight a couple of upcoming scientific conferences by our team. We continue to increase the visibility of our differentiated technology platforms at relevant scientific conferences by showcasing innovations that we think create value for our partners. Next month we'll be at the Antibody Engineering and Therapeutics Conference down in San Diego, where our team will present workflows for discovering developable binders with broad epitope coverage and affinities that serve as building blocks for multi-specifics, which is an area of significant and growing interest in the industry. In another presentation, we'll discuss the design and implementation of OmniHub, which is a new platform we're launching for bioinformatics tools that also enhances antibody discovery workflows by integrating machine learning and AI tools with our deep bioinformatics capabilities. When we kicked off the year, we mentioned that we'd be rolling out some partner experience enhancements, and OmniHub is one example of this. And with that, let me now turn the call back to Kurt for a discussion of our third quarter financials. Kurt?