OmniAb, Inc. Price & Performance (OABI)

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 OmniAb's President and CEO. During today's call, Matt and I will provide highlights on the company's operations, part 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. Starting now with slide number four, I am pleased to report strong performance and momentum in 2024. As we achieved double digit percentage growth in both the number of active partners and the number of active programs that leverage our technology. Our partners clinical stage programs are advancing and we're encouraged by the progress that they're making. We introduced new technologies and enhancements that are positively our partnerships and driving efficiencies in our increasingly scalable business. These innovations are not only differentiating our business, but are also attracting new partners and creating opportunities for significant future growth potential. Potential key royalty assets are beginning to come into focus along with other building blocks of value that we expect will drive our growth in the coming years. As we look at here in 2025, we're excited about the opportunities we're seeing, and we're confident in our plans. This schematic here on slide number five provides a bit of an outline along with some details on how we view our business and how one can look at the interconnected elements of value here in OmniAb. Starting with the upper left corner, our novel platform technology continue to differentiate us and create new partnerships.

And also drive our existing partners to start new programs. We have deep relationships with a growing number of partner companies and those relationships create a unique vantage point in the industry that informs our thinking about new technology innovations and launches as well as any strategic technology acquisitions. We now have a long track record in this area. Value creation really starts with the additions to our pipeline, as mentioned in the center of the slide. And here we've driven double digit percentage growth over multiple years and have done so through a variety of industry macro environments. Which I think is a statement about the resilience of our model and the broad applicability of our technologies. As programs progress into clinical development, as depicted on the top, of the circle on the right side of this slide. They generally start to become more publicly visible. And those programs will generally drive realization of contracted milestone payments. And ultimately, we expect some of these programs will advance to become royalty bearing assets, which is a core element of value. A royalty is defined simply as a percentage of top line revenue, and royalties can create steady streams of durable cash flows that increase with higher product sales.

There are a number of factors that drive value for a particular royalty asset, including the partner, and their level of investment, elements of the program as it becomes a product, and its commercial potential total addressable market which can be impacted by things like the number of indications, the number of geographies that are being pursued. Any of these elements or a combo of them can drive significant value at various points in a program or product's life cycle. As more programs progress, our platform continues to have more visibility across the industry and continues to be even more validated. And we believe that also drives more additions to the pipeline. We're highly committed to our model and are focused on building value for all of our stakeholders in this highly leverageable business framework. I'll touch now on a few of our key business metrics starting here on slide number six with active partners. We're pleased to report an 18% year over year growth in the number of active partners showing our ongoing efforts to expand and diversify our partnership base. As of 12/31/2024, we had 91 active partners. In the fourth quarter, we added new platform licenses with Insight Corporation and Photinia Biosciences.

New commercial partners included NBP Pharma and Tyll Pharma. As shown in the call out box pie charts, our partner diversity spans academia, commercial and discovery partners. And you also a breakdown geographic breakdown of our partners here as well.

Our growing partner count reflects the industry's strong interest in our technologies and is also a recognition of our dedication to innovation and collaboration. Over recent years, we've shown steady growth in active partners through various cycles in the biotech and pharma sectors. Turning now to Slide seven, We also saw robust year over year growth in the number of active programs at a 12% increase. As of December 31, the number of active programs increased to three zero sixty two net of attrition. We had a particularly productive fourth quarter in terms of additions. Last year, as we have seen and as was reported more broadly in the industry, some pharma companies strategically realigned and reprioritized their therapeutic programs and pipelines. While these realignments are frequently driven by goals to concentrate on more impactful areas of research, well as to adapt to evolving market demands and regulatory landscapes, they often reflect attrition as an inherent aspect of the drug development process. As shown in the callout bar graph, we had 31 terminations and nine active program additions in 2024. I think it's really important to note here that more than 98% of our active programs have contracted future economics to us.

Which positions us well to create future value for our shareholders. Now on Slide eight. As of December 31, the number of active clinical programs and approved products by partners was 32. Our partners have now initiated or completed over 200 separate human clinical trials with OmniAb derived programs, which is an indication of their significant investment and conviction around the programs. These trials span a range of therapeutic areas, including oncology, immunology and other indications. This extensive downstream clinical activity highlights the trust and the confidence our partners have in the novel therapeutics that are coming out of our platform. In 2024, we had, five OmniAb derived programs entered the clinic In Q4, a new J and J program targeting GPRC5D and Inno Lake Pharma's anti CD40 agonist program both entered Phase one clinical trials. Based on dialogue with our partners, we see potential for approximately five to seven new entries into clinical development for novel OmniAb derived programs in 2025. As I just mentioned, in 2024, five novel OmniAb derived programs entered the clinic. And here on Slide number nine, you see those new clinical additions on the top part of the slide, which includes programs with Teva Merck KGA, Genmab, J and J and HinoLake.

In 2024, we also saw five programs exit clinical development, shown on the bottom part of this slide, in a flat net year over year growth in active clinical programs. Clinical attrition programs included two from Genmab, which were removed from clinical development in Q3 and Q4 but remain active in earlier stages according to company disclosures. While the Roche Amgen programs reported in Q1 and Q4 of last year are no longer active, they have minimal to no impact on the value of our partnered portfolio due to the lack of any remaining economic to us.

And overall, while the attrition of certain programs reflects the dynamic nature of the drug development development process, the addition of new clinical entrants highlights ongoing innovation and the potential of our technology for discovering new therapeutic options. So together, they sort of highlight both the challenges and the opportunities in therapeutic discovery and development.

Slide 10 highlights the annual growth in our portfolio of post discovery stage assets. And I will mention here, that we are excited about the diversity and potential therapeutic impacts of the assets in our preclinical stage bucket shown here in the orange slice of the pie chart. And hope to be able to shed more light on its specific contents and programs that are in that orange slice in the coming quarters. Here on Slide 11, you'll find what we are now calling our prior format for showing clinical stage and later partnered pipeline programs. Over time, the pipeline has been getting a bit large for this traditional format and recognizing the for improvement, we're now introducing a new format for presenting our partnered clinical pipeline. The new format is here on Slide 12, and provides an overview of clinical and commercial programs organized from Phase one through to late stages and approvals displayed from left to right. Program placement is based on a program's most advanced clinical status and this layout only includes programs where OmniAb has future or remaining economic interests. By excluding clinical and commercial stage partner programs that do not have future remaining economic benefits to us, such as teclistamab or tiragolumab, we aim to focus attention on financially impactful programs.

We think this layout will help stakeholders more quickly synthesize the value of our clinical and commercial stage pipeline.

We Also, it gives us the ability to easily highlight new and additional indications and geographies that are being pursued by our partners. We believe that by clearly presenting these elements, will better illustrate the unique value proposition of each individual program. Now I'll touch on just a few recent partner highlights. Our press release that was issued this afternoon covers some additional updates from Q4 and recent months, but I wanted to spotlight a few specific programs that we see as standouts. Slide 13 reviews Genmab's akastuzumab, which is a bispecific antibody that targets PD L1 and four-1BB. Genmab recently and I believe for the first time highlighted a potential $1,000,000,000 market opportunity for atostenlumab in non small cell lung cancer. Emphasizing the addressable patient populations in The U. S, Japan and The EU. They're pushing forward with the last stages of clinical development of akasunlimab and announced that a Phase three trial as a second line therapy line therapy in non small cell lung cancer is now enrolling patients. Genmab also expects to provide an additional Phase two data update for axosunlimab this year and we potentially expect that at ASCO. On Slide fourteen, you can see that Teva has highlighted continued progress in their now more prominent innovative medicines pipeline.

And have been showcasing advancements with OmniAb derived TEV-four zero eight and OmniChicken derived TEV-two seventy eight. Four zero eight is a potent anti IL-two IL-fifteen neutralizing antibody that's currently being developed for the treatment of celiac disease and vitiligo. And two seventy eight, which is an anti PD-one IL-two fusion protein is being developed in oncology. Moving on now to Slide 15. Where we have immune advanced programs, IMVT-fourteen oh two and badeclomib. Badeclomab is a promising anti FcRn monoclonal antibody for treating autoimmune diseases. And IMVT-fourteen oh two is a next generation anti FcRn antibody that's designed for deep IgG reduction with minimal side effects. We think these assets are poised for significance driven by large total addressable markets with multiple indications. Amiavent describes IMTT-fourteen oh two as a potentially best in class highlighting its promising therapeutic potential. They recently outlined several near term milestones and catalysts for both IMBT-fourteen oh two and vadiplimab They're currently enrolling patients in pivotal Phase 2b studies for Graves' disease and difficult to treat rheumatoid arthritis for IMVT1402. They plan to initiate registrational programs for three additional indications by March thirty one of this year. And aim to evaluate IMVT-fourteen oh two in a total of 10 indications by March thirty one of next year.

For bazeplimab, as you can see here, amitamab expects multiple data readouts and some that are in the very near future. Evaluate Pharma published an industry report the beginning of this year that included a summary of their analysis of the 10 most valuable R and D programs on a net present value basis across the entire pharmaceutical industry. And we were happy to see badeclimab and IMVT-four both highlighted on that top 10 list. Now on Slide 16, as we look ahead now in 2025, we anticipate several catalysts that will drive our continued growth and position the business for success. Pipeline expansion and advancement remain key elements with significant progress expected in clinical and future royalty programs. We're excited about the potential for new deals that are in progress and the launch of novel technologies that we think should have a substantial impact on the industry with more on those launches to be revealed during the year. We focused on and look to further leverage our relationships and what we call the OmniAb ecosystem of partners that we've created over the years. This allows us to think about and analyze the economic returns for technology expansion and technology launch options that are available to us.

And I think the tech launch options that we've invested in and are planning on this year can create significant opportunity and potential returns, and we're excited about that.

Our partner base has continued to grow and diversify, providing a solid foundation for sustained expansion. And with a clear business model, that's now positioned to be leveraged more efficiently, we think we're well equipped to create value for our stakeholders and achieve our strategic objectives. And with that, let me now turn the call back over to Kurt for a discussion of our fourth quarter financial results and our 2025 outlook. Kurt?

Thank you, Matt. I'll start with Slide 18. With our revenue in the fourth quarter of twenty twenty four. Total revenue increased substantially reaching 10,800,000.0 compared with $4,800,000 for the same period in 2023. This increase was primarily due to higher license and milestone revenue driven by new deals and the clinical advancement of our partner programs. Service revenue declined as we completed work on certain small molecule ion channel [indiscernible] that were then transitioned over to the partner. Regarding royalties, typically, receive sales data from our partners on a lag. So we record royalty revenue based on estimated net sales of our partners' products. When we do receive the final sales data, any difference between our actual results and the prior estimates are adjusted in the period in which they become known. In the fourth quarter, we received an update update on some information regarding the sales of tsugamimab and zimbarrelimab in China during 2024 and accounted for that downward adjustment in the fourth quarter to reflect this new information. Turning to Slide 19, let's take a look at our operating expense. Operating expense in the fourth quarter would have been lower than prior year period if not for a $2,700,000 impairment charge.

Related to certain small molecule ion channel intangible assets.

The impairment charge was a result of a shift in our focus for ion channels from small molecules to antibodies. This shift resulted in the impairment of certain small molecule related intangible assets.

For R and D and G and A expense, both decreased versus prior year primarily due to lower stock based compensation expense and reduced outside expenses as we continue to drive efficiencies in our business. We take a look at the quarterly P and L on Slide 20. And focus here on the bottom part of the P and L. Our net loss for the fourth quarter of twenty twenty four was $13,100,000 or $0.12 a share. Versus a net loss of $14,100,000 or $0.14 per share in the prior year period. Moving on to Slide 21, you can see that for the full year, total revenue increased increased when excluding the $10,000,000 milestone related to the first commercial sale of teclipamab in The EU that was recorded last year. The increase then in license and milestone revenue excluding this 10,000,000 million dollars was driven by advancement in our partners clinical programs and new licensing deals.

Service revenue declined slightly year over year primarily due to the completion of certain ion channel programs, which was slightly offset by an increase in our service revenue for our antibody discovery work. Additionally, royalty revenue was lower than the prior year primarily due to the highly competitive PD-onePDL L1 market dynamics in China which led to lower product sales. Going over to Slide 22. Full year operating expense was lower in 2024 compared with 2023. Our R and D expense was flat, while the G and A expense decreased mainly due to non recurring consulting and and service costs in 2023 related to our spin out as a public company. As well as lower legal and stock based comp expenses. And also note that the total impairment charges taken during the year was $3,800,000 Moving on to Slide '23, if we take a look at the full year P and L and once again focus on the bottom part of the schedule, the net loss for 2024 was $62,000,000 or $0.61 per share compared with a net loss of $50,600,000 or $0.05 1 per share for 2023. On to Slide '24, if you break out the year by quarter, you'll note a few things.

First, as we had previously guided, revenue was weighted toward the second half of the year. And you'll also note a general trend of both lower R and D expense and lower G and A expense over time. And as I'll discuss in a moment, we expect this trend to continue into 2025. On the amortization of intangibles, this is usually fairly stable, but we had a couple of impairments impairments one in the second quarter and one in the fourth quarter because those particular quarters to deviate from their baseline. Turning to Slide '25, you'll see our balance sheets for both 2024 and 2023. The company is well capitalized and we exited 2020 with $59,400,000 in cash, which was at the top end of the guidance range that we provided during our last earnings call. As we mentioned on our Q3 earnings call in November, we had raised $11,400,000 in net proceeds off of the ATM. Most of this was in the third quarter, but a portion was in the fourth quarter. We have not raised any additional amounts off the ATM program beyond what we reported at that time. I also want to point out one other item on the balance sheet as it will relate to some of the guidance we are introducing today.

The third line down in the liability section is deferred revenue. Most of this was placed on the balance sheet years ago prior to OmniAb becoming a standalone company from upfront payments received for the small molecule ion channel licenses. As we complete work on those programs, the revenue is recognized and the deferred revenue balance is reduced as it amortizes over the research turns of those projects. You'll note that this balance is now down to just $2,500,000 As a final topic, let's turn to Slide 26. Where we introduced our 2025 financial guidance. This is the first time we've ever provided revenue guidance And this guidance is based on information that our partners have disclosed to us as well as information that our partners have disclosed publicly about their programs. Based on this information, we expect that 2025 revenue will be in a range of 20,000,000 to $25,000,000 But I want to draw your attention to the lighter shaded regions of the bars on the graph on the left. Note that a significant portion of the revenue in 2024 was non cash. In fact, close to one third of the revenue earned last year did not result in actual cash received in that year.

A significant portion of our service revenue has been the amortization of deferred service revenue that I just mentioned. One of the primary factors driving the revenue decline in 2025 is that this non cash portion of service revenue is decreasing.

And in fact, from a cash perspective, we actually expect an increase in the amount of cash that we will receive from our partners in 2025 compared to the cash that we received in 2024.

So while revenue may be decreasing, it's only the non cash piece that's causing the decrease.

Moving to operating expense, I mentioned the strategic shift we made in our Ion channel business focused on antibodies. This shift also resulted in an alignment of our specific staffing needs, with the amount and type of work we're doing in this area. And resulted in a reduction to our ion channel related headcount earlier this quarter. While this will result in some charges in the first quarter, we still expect our operating expense for the year to decrease in 2025 relative to 2024. More specifically, total operating expense is expected to be in the range of 90,000,000 to $95,000,000 I also want to point out that historically about 40% of our operating expense has been non cash, primarily from the amortization of intangibles and stock based compensation, and we expect 2025 to be similar.

As for our cash use, we expect our cash use in 2025 to be lower than in 2024 excluding the proceeds from our 2024 ATM issuance. As a point of reference, our cash used in 2024 was $38,900,000 when you exclude the $11,400,000 of proceeds from the ATF. One additional comment about our tax rate. While our tax rate might fluctuate from quarter to quarter, we expect the full year effective tax rate in 2025 to be around 0%. As our valuation allowance is expected to largely offset the tax benefit associated with our net loss. This tax benefit will eventually be realized when the company becomes profitable. While the biotech industry is certainly going through some volatility, our business has continued to perform well. The leadership here at OmniAb have run businesses for many years, and we're committed to growing the business while at the same time staying fiscally responsible to position us continued success. And with that, I'll open up the call for questions. Operator? Thank you. You will hear a prompt that your hand has been raised. Should you wish to decline for the polling process, please press star followed with the number two. If you're using a speakerphone, please lift the handset before pressing any keys.

One moment please for your first question. Your first question comes from the line of Joe Pantginis from H. C. Wainwright. Your line is now open. A couple, if you don't mind. So first, Matt, with regard to attrition rates, obviously, is a normal part of biotech drug development. Just curious, I might assume that a lot of it the majority has to do with clinical development moves number one. But are there any attrition, numbers that might be due to technical issues?

Yeah. Thanks, Joe. No. I I wouldn't describe attrition as related to technical issues at all. Hey. Is this the attrition we saw last year, we talked through the year about big pharma pipeline, realignment, which was pretty wide year. I think a lot of dynamic changes in the big pharma space have led many of the big pharmas to focus more on efforts where they can really be differentiated and maybe even in some instances to aim even bigger in CNS and areas like that. So that caused I think some of the big pharmas to realign their their clinical pipelines. But beyond that, think the rest of the attrition that we saw I would characterize as kind of normal types of attrition that you see in the various stages of drug development. Of note, Q4 was a really strong quarter for us. In terms of additions. And I think that has positioned us well for this year. So that was generally good to see.

No. That that's very helpful. And, I mean, I assume that, I just wanted to ask. And then in your prepared comments and in your slide deck, you gave a little bit of a tease of new tech rollouts this year. So curious any further information you can share? And does it come from any of your existing platforms? Or the sort of brand new rollouts of tech?

Yeah. Great great question, Joe. Thanks. I mean, we we think our commitment innovation is really a significant competitive advantage. One, we've seen that now over the years and we hear it from, partners as as we're talking to them. And we we have been invest actively in innovation for the last few years, and those investments that we have made are informed by really deep relationships with our partners. That helps us form our thoughts, on both and also form our technical and our business around new technologies and workflow enhancements that we consider innovation that can really drive value. In recent years, we launched OmniAb, which is an engineered chicken with a human framework for discovering novel single domain antibodies that has attracted a significant number of new partners. It's driving some nice growth in our active programs. And it's also substantially diversifying therapy areas that are being pursued by our partners into CMS and radio pharma and other areas. But when we think about innovation, I also include things like OmniAb, which we launched in recent years also, which is a of in silico tools, AI and machine learning elements that are woven throughout our tech platform, but are also driving new programs, creating new opportunities.

And then after that, we launched OmniAb at the end of last year. Which is a platform for bioinformatics tools that enhance our workflows for our partners and the feedback on OmniAb has been candidly fantastic. So it's a long lead and to answer your question, this year we're really excited about the new technologies that we're planning to launch. I think they can impact our ecosystem of partners and the industry more broadly. And I'll just say generally, that the things we launched this year fall very much within our strategy and the themes that we talked about previously in terms of they'll enable, discovery of high quality candidates more quickly and efficiently. They're highly scalable. Expand our existing partnerships and I think will attract new partners as well and we'll continue to differentiate us. And so I guess detail I'll give, mean, we've generally launched new things around key scientific conferences, and that's worked well for us and that generally includes the PEGs protein engineering conference in May in Boston. And the AET Conference, that is very late in the year down in San Diego. So just kind of some general details there I hope that helps.

No, certainly does. And one more quick question, I guess, and it might be a little self deprecating. The simplistic answer is a yes, no or irrelevant. Do you think that in these current volatile markets that Kurt alluded to and we all know about, Do you think there's any sort of push for additional pipeline and development where you might see added cash deployment from partners?

Know, Joe, I mean, as we look at at our business and the metrics that we track, It's it's a business that's been resilient and has done well in a variety of And I think there's a lot of reasons for that potentially. Know, the the the technologies and the and the needs that they serve, different, cycles, like sub that exist within the industry around therapy areas or approaches to research, whether that's internalization or externalization, etcetera. And the good news about our platforms is that they're scalable, they can be used in a in a flexible fashion in a variety of ways. So I feel like we're kind of well positioned in in just about any landscape. I know, Kurt, anything you'd add? Yeah.

I agree.

Fantastic. Thanks for indulging all my questions, guys. Yes. Thanks, Joe. Your next question comes from the line of Puneet Souda from Leerink Partners. Your line is now open.

Yes. Hi, guys. Thanks for the questions here. So first one on the card, if you could clarify on the $45,000,000 guide. Just assuming what are you expecting cash and non cash within that too? Or is that all cash? And maybe if you can elaborate, you provided a number of programs here Any upside you're baking in from those programs? And I know it's always hard to say how much collaboration revenue versus license revenue, but maybe you can you know, provide context because this is the first time you're providing this guide. Yeah. So Puneet, the so the twenty to twenty five is a is a gap number. So we're trying to compare GAAP to GAAP. But what I was trying to point out was if you think about why the 2025 number is going down relative to 2024, a big chunk of that, of 2024 was this service revenue, right, $6,000,000 was the amortization of service revenue which is non cash. And that's the piece that was going away. I kind of pointed to the balance sheet, if you take a look at deferred revenue on the balance sheet, the balance at the end of the year is only $2,500,000 So we recognized $6,000,000 in deferred revenue last year only $2,500,000 left to recognize in the balance sheet.

That's one of the big things that's going down. And that's non cash anyway. So I was trying to just provide some color on that. But specifically, the 20,000,000 to 25 is is a GAAP number in terms of what we would expect to report.

It. You asked about kind of the differentiation. At this point, I don't think we're breaking out in that revenue the difference between milestones versus service revenue versus royalties. But you could allude or you could based on my remarks, you know that kind of the deferred service revenue is a piece that's certainly going down next year based on the comments that I've made.

Got it. Super. That's helpful. And then I know academic is a smaller piece of your partner contribution, but just wondering if you're seeing any of the impact there. Obviously, a volatility in the markets, but more importantly, just a lot of NIH worries and whatnot. Just wondering if you're seeing any decline there.

Yes. Puneet, this is Matt. Thanks the question. I mean, there's been in regard to NIH funding, obviously a lot of wide reporting on how changes there can or might impact academic research now and in the future. At this point, we've not seen that impacting how our ecosystem of academic partners are collaborating with us. But we're continuing to watch that space We are in active dialogue with prospective academic partners now, and those discussions have progressed. Despite the headlines, and and some of the dynamic nature of the landscape. You know, I guess I'll also add we'll we'll report you know, our numbers and new partnerships, for this year when we report Q1 in May. But we actually just signed a new leading academic to a new deal in the last week or so. With a group that's very interested in leveraging our OmniAb technology for a variety of pretty impactful areas. So that was a good thing to see. But we'll continue to watch the space.

Got it. And then one more for me. You talked about fourth quarter being especially productive for additions. Has that continued into the first quarter here? Now into March? Thank you.

Yeah. For some of that, Puneet, in terms of the work that we're actively starting, I'd say generally, yes, it's we do get reports on other elements of our tech that come later. And so hard to say exactly. Don't know, Kurt, anything you'd Yes. Think I think, Puneet, in in terms of just like it is with milestone revenue, right, it can be lumpy over the quarters in specifically for this data, it's a function of when we get reports in from partners on what they're working on. Some of these don't companies, they only report quarterly. We have a few instances where they only report annually. So be careful about reading too much into any single quarter, in terms of what's happening there. Obviously, the general trend for the year is very positive. And we're looking for that to continue. But I'm not sure I would sort of try to take a ruler and draw lines based on what happened in Q4.

Helpful.

Okay. All right. Thank you.

Your next question comes from the line of Matt Hewitt from Craig Hallum Capital Group. Your line is now open.

Good afternoon. Thanks for taking the questions. Maybe first up, and I want to make sure I was reading the slides correctly. So I think you're expecting five to seven new clinical entrants this year. I would assume that most, if not all of those would trigger milestones. And then one of the slides says you've got four. That are now in Phase three. As we look out, and I'm not asking for guidance, as we look out at 26, 27, it would appear that I mean, as those kinda get through the clinic, there's an opportunity to see a nice step up in only the milestones upon approval if that happens, but in royalties. Am I thinking about that correctly?

Yeah. Matt, I'll I'll I can comment. I'm I'm sure Kurt will have a comment just on the overall metric that you're talking about. Obviously, we've shown a new view of our pipeline chart right, to really focus only on the programs that have downstream economics. So and to answer your question generally, generally when a program starts a clinical trial, that will trigger a milestone in some manner. And I say it like that because every contract mean, can be differences in a variety of contracts. You look across all of our programs, over 98 of them have downstream economics to us. Right? So that's, I think, an important, thing to keep in mind. There are programs now we've kind of pulled out of our pipeline visual representation, but for historical comparative reasons are in our overall metrics. Some of those are in later stages of development. Again deals we that were done a long time ago that we inherited. But yes, hopefully that answers your question on milestones.

It it does. And then maybe shifting gears a little bit. It sounds like you've had some really positive feedback on OmniAb I know last quarter you said that you had completed kind of a beta run or a beta test with a partner. And then you're gonna present data in December. Are you now enrolling or signing up customers or partners to that product? And if so, how should we think about the ramp of that over the year? Thank you.

Yes. Thanks, Matt. So yes, partners are using OmniAb today. We we on our last call, I think in November, we we mentioned the fact that we'd already done some data work with early adopters. If you will. But we launched OmniHub in December at the AET conference down [indiscernible] receptivity and the feedback has been great on that. It allows us to within the digital format, share data, and tools and things like that with our partners. And it's kind of a natural evolution and extension of our our technologies as we, you know, have one start sharing more data with more partners. Have introduced things like OmniAb, which is our suite of in tools that are woven throughout our platform. OmniAb was a natural technological expansion for us that we launched in December and has been going real well.

That's great. Thank you.

Your next question comes from the line of Kripa Devarakonda from Truist Securities. Your line is now open.

Hey, Thank you so much for taking my questions, and congrats on all the progress.

So on the two licenses with I think, Insight and Fortinia that you reported in Q4. Could you give us any additional color either on the therapeutic areas, the indications or the platforms that they might use. And know, from a therapeutic area perspective, you previously had noted that OmniAb opens up a lot more possibilities, especially you you mentioned neuroscience as well as oncology. Can you talk about if the trend is continuing or if it has expanded or or there have been any kind of changes in that? Thank you.

Yeah. Kripa, thanks. On TheraPeria evolution, OmniAb, you know, as as, you know, we launched it in November of of twenty twenty three, and it certainly has contributed to an uptick of partners who are interested in and are pursuing CNS targets, what I'll describe as high value CNS targets. We definitely also have partners using OmniAb with a focus on oncology and in multi specifics. And areas like that, but it has certainly increased the diversity of our discovery pipeline with additions of of CNS. We also see real interest in radio pharma as well. As far as both Incyte and Fotinia, I can't really comment on the areas that they're interested in, with our our platforms other than to say they have broad platform access. Which gives them access to multiple species, to our proprietary screening technologies and other down technologies and workflows. So that's that's what I got for you on that.

Okay. Great. Thank you.

Your next question comes from the line of Stephen Willey from Stifel. Your line is now open.

Hi, guys. This is Tory on for Steve, and thank you for taking the question. So just to start with, I have a question on your preclinical discovery program. So among these five incremental or in total 20 preclinical program, is there any particular platform that overrepresents the In other words, like, I'm trying to gauge, you know, like, any particular sub platform that's attracting more attention from partners? So that's that's my first question, and I'll ask the second one later.

Great. Yeah. Thanks, Gwen. It's if as far as the the the 20 programs in the preclinical phase, just say generally, we're really pleased with the of therapy areas in there. Broad therapeutic interests, really impactful, indications where there are significant unmet medical need. There also is a mix in there of our source technologies, whether that's, our Omni rodent technologies, our bispecific technologies, OmniFlic and OmniClick. As well as our our chicken based technologies as well. So, yeah, it it's a nice mix of diversity. Generally, as those programs enter the clinic, that's when there's more information out there about the specific targets. That partners are pursuing, how they're approaching their clinical development, etcetera. And we expect we'll be able to talk more about that through the year as programs graduate from the preclinical phase to the clinical phase.

Okay, great. Thank you very much. That's helpful. And my second question is actually, related to one of the like, advanced assets. So Surgomelumab, you know, partnering with Keystone. So can you please remind me the downstream economics related to that asset? Because Seastone sounds like they've been making, you know, significant progress on the commercial side. So I'm reason I'm asking this question is I'm wondering if know, potential royalty payment is actually embedded in 2025 guidance revenue guidance at all.

So Well, I can tell you that the royalties for both sugamelimab and zimbrelimab are 3% globally. So that's the answer to that question. In terms of the guidance, I guess, the guidance includes revenue from milestones and the service revenue and royalties. Although I think we don't really have a lot of insight into sort of what sales are going be in those territories. So, I'm sure there's a lot of upside baked into our guidance for that kind of thing.

There are no further questions at this time. I will now turn the call back over to Matt Foehr. Please continue.

Great. Thank you all for, joining our call today. We appreciate the engagement and and the quest and the questions. We look forward to keeping you updated on our progress and to speaking to you next quarter. So in the meantime, again, we appreciate your interest in OmniAb, and have a great day.

Ladies and gentlemen, this concludes today's conference call. You for your participation. You may now disconnect.