Good afternoon and welcome to the OmniAb Inc. Second Quarter 2025 Financial Results and Business Update Conference Call. At this time, all participants are in 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 conference call over to Mr. Kurt Gustafson, OmniAb Inc.'s Chief Financial Officer. You may begin. Thank you, Operator, and good afternoon, everyone. This is Kurt Gustafson, OmniAb's Chief Financial Officer, and thank you all for joining our Second Quarter 2025 Financial Results Conference Call. There are slides to accompany today's prepared remarks, and they're available in our Investors section of our website at omniab.com. Before we begin, I'd like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the 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 the 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 this live broadcast today, August 6th, 2025. 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 Foehr, OmniAb's President and CEO, and during today's call, we'll provide highlights on the company's business and operations, partner and technology updates, as well as our recent financial results and outlook. At the conclusion of the prepared remarks, we'll open the call to questions. With that, let me turn the call over to Matt. Thanks, Kurt. Good afternoon, everyone, and thanks for joining us today on our Q2 call. I'll start now with slide number four. As I mentioned on our last call, we started the year with strong deal flow, and it continued in the second quarter with the number of new partners added in the first half of the year setting a pace for one of our strongest years yet. We continue to see a robust pace and quality of deals, and we think this is a testament to our differentiated technology platform, which continues to evolve and expand, and to our team's relentless pursuit of innovation that leverages our unique vantage point in the industry. Our partners are actively advancing programs into human trials with the start of a new clinical stage program during the second quarter and several others that are progressing through development. The recent launch of our Exploration Partner Access Program has been very well received, with a strong response from existing partners and others. Within weeks of launch, we sold and installed an Exploration system, and we are managing a robust pipeline of leads and business activity for this new technology that's expected to be accretive to the business and to further diversify our sources of revenue. Our platform is attracting new partners and facilitating the addition of new programs. We continue to drive efficiencies in our business through leveraging our technologies, including Exploration, and through the streamlining of our business practices, all with the goal of creating long-term and sustainable value for our stakeholders. We've been realigning our staffing needs and recently reduced some costs in our headcount. This is in addition to the staffing realignment we disclosed back in February, related specifically to the small molecule ion channel element of our business. We began 2025 with 114 employees, and our go-forward headcount is at 87 employees. Kurt will provide some financial details in his remarks. In summary, our outlook for 2025 remains very much on track, and we feel we're extremely well positioned to deliver on our strategic goals, to expand the reach of our technologies, and to execute on our current Exploration launch and the upcoming new technology launches that we're also very excited about. Additionally, we're constantly seeking further workflow efficiencies and technology innovations in what we see as a highly scalable business. Now I'll review some of our business metrics, starting here on slide number five. We ended Q2 with 100 active partners. During the second quarter, we signed an asset deal with Angelini Pharma for a small molecule ion channel modulator that targets KV7.2, which we discussed on our last call. In addition, we executed multiple license agreements, including new deals with Veraxa Biotech, Duke-NUS, the University of Strathclyde, the University of Maryland, AB Ray Bio, and an undisclosed global CRO. As you see on the slide, we're also providing some updated detail on the distribution of our active partners by type, including discovery, commercial, and academic, as well as the distribution of our partners on a geographic basis. Although our partners are mostly based here in the U.S., there's been a steady diversification of our partner base as we've been successfully increasing the reach of our platform. Turning to slide six, you can see the number of active programs increased to 381 as of quarter end. We've continued to experience positive momentum with a year-to-date net increase of 18 programs, and we're continuing to see the strength in program additions that started late last year. Attrition is obviously a natural and expected element in drug discovery and development generally, and we do continue to see and expect to see attrition, which can be driven by a variety of factors, including partner therapy area focusing and budget decisions and timing of receipt of reports or updates from our partners. That said, the net addition of 18 programs year to date shows some significant strength and has more than doubled the number of net additions through the first half of 2024. Slide number seven breaks down our 381 active programs by their license type and summarizes elements of overall contracted downstream economics. Importantly, about 99% of our active programs have potential future economics contractually owed to OmniAb. The 1% that don't are generally linked to legacy agreements with prepaid licenses that were signed years ago by companies that we acquired. 90% of the programs are linked to what we generally refer to as antibody standard licenses, and 7% are through what we call revenue share license agreements, where we get a defined portion of whatever form of value our discovery partners get, be that equity, cash, or other forms of value. These revenue share deals are mostly with academic institutions that incubate OmniAb-derived assets prior to planned corporate formation events. Our antibody programs have over $3 billion in total remaining contracted potential milestone payments and an average royalty rate of 3.36%. This 3.36% average is an increase from an average royalty rate of 3.2% that we reported in November of 2023. I think the ability to command strong royalties reflects the value of our technologies and their relevance to the industry. It also speaks to the value our team is creating for our partners and for our stakeholders. Here now on slide eight, we're putting a bit of a spotlight on the continued growth of the post-discovery stage programs in our portfolio, as well as the advancement of these programs into and through development. During the quarter, a number of new programs progressed to the preclinical stage of development, and another one is recruiting for a phase 3 clinical trial, which is Immunovant’s IMVT-1402 for myasthenia gravis. We're really encouraged by the expanding number of post-discovery stage programs, which have experienced 22% growth from the prior year period. The preclinical programs also have a nice diversity of indications and include inflammation, fibrosis, renal, dermatology, CNS diseases, and others, in addition to the historical strong showing in oncology. Importantly, these 61 programs that are post-discovery stage are associated with approximately $1.3 billion in contracted remaining potential milestones to OmniAb. The total potential milestones associated with the later stage programs have continued to increase, and that increase has been fairly dramatic in the last 8-1 2 months. You can see here the contribution of $700 million from small molecule ion channel programs that have now moved into preclinical. We think the growth here demonstrates potential value-creating events in the pipeline, the progress in the pipeline overall, as well as our partners' conviction around assets that have been discovered with our technologies. Moving now to slide nine, the number of active clinical programs and approved products was 32 at the end of Q2. A new OmniChicken-derived program entered the clinic in the quarter from Seismic Therapeutics. This marks the third OmniChicken-derived antibody to enter human clinical trials following programs with Boehringer Ingelheim and Teva. Through Q2, we've had two novel programs initiate first-in-human clinical trials in 2025. We've seen attrition or stage of development modification in phase 1 assets with a Th1 program returned from Curon to Wu Xi that Wu Xi now characterizes as preclinical and a Genmab program that entered an initial phase 1 trial in Q1 and then exited that trial in Q2. As I've said, and as we often say, attrition is a natural part of drug development. Based on dialogue with our partners, we continue to see potential for a total of approximately five to seven new entries into clinical development for novel OmniAb-derived programs this year. Slide number 10 illustrates our clinical and commercial stage partner pipeline for active programs that carry remaining downstream economics. As you see, this pipeline flows from phase 1 through to later stages and product approvals from left to right. Placement in this graphic is based on a program's most advanced status in any geography or indication. In the last couple of quarters, it's been great to see the growing number of programs moving to the right on this graphic, the latest of which now includes the recent addition of Immunovant's IMVT-1402 shown in phase 3, as I mentioned. Turning to slide 11, we've highlighted select recent partner updates, including presentations at ASCO from J&J and Merck KGaA. The disclosed J&J data for their trispecific 5322 program is especially notable to us with the 100% response rate that was observed in heavily pretreated multiple myeloma patients. The initial data were described as suggesting a potential paradigm shift for the treatment of these patients. There is a real opportunity with this program to significantly elevate the standard of care for multiple myeloma. J&J indicated publicly that they look forward to seeing the results from planned phase 2 and phase 3 studies for the 5322 program. On their most recent earnings call, they highlighted these data again while saying they are now "closer than ever to their ambition of curing multiple myeloma." Other highlights shown here include Teva receiving fast track designation for TEV-408 for the treatment of celiac disease. I want to note that this program is also in clinical development for vitiligo. Teva additionally announced a partnership with Fosun for TEV-278, which is a partnership established with the goal of accelerating clinical development of the compound that's in clinical trials now for the treatment of various forms of cancer, including melanoma. To conclude my section here on slide number 12, we've highlighted our recently launched Exploration Partner Access Program. Exploration is a high-throughput single B-cell screening instrument that leverages machine learning and AI. It offers 10 times more single-cell screening throughput versus other instruments, which allows users to screen in a far more efficient fashion. We believe this system has unmatched screening throughput and superior hit recovery, along with exceptional ease of use and reliability. We highlighted Exploration in a presentation at the Boston PEGS conference in May, where the system was awarded Best of Show honors. Just weeks after launching, we sold and installed Exploration at a global partner, creating a new revenue stream derived from the sale of the instrument, as well as recurring revenue from proprietary single-use consumables and subscription services for software with maintenance. It's still early in the launch, but the response from the market has been extremely positive, and we're building a pipeline of sales leads from our growing roster of partners based on new availability of the platform. We're also getting inquiries from others who are interested in becoming OmniAb discovery partners specifically to get access to Exploration. With Exploration, we're able to further empower partners with the latest technologies to improve their probability of success in a really efficient and scalable manner. That's part of why we see Exploration as a nice complement to our current core business, as it supports our mission of enabling the rapid development of innovative therapeutics. The feedback we are getting indicates to us that this is the right time for Exploration, as the industry embraces the value of lab automation and instrumentation for big data generation to also leverage AI and ML-aided screening and selection. We're very excited about the prospects of this new offering as it continues to demonstrate our commitment to innovation and to customer service while diversifying our revenue streams. With that, let me now turn the call back over to Kurt for a discussion of our Q2 financial results. Kurt. Thanks, Matt. On slide 14, I'll start with a review of our revenue. For the second quarter of 2025, we reported revenue of $3.9 million compared with $7.6 million for the same period in 2024. The decrease was primarily related to lower milestones achieved in the quarter and lower service revenue. Service revenue declined primarily due to the discontinuation of a small molecule ion channel program last year, which also resulted in the acceleration of non-cash revenue in that quarter, which overinflated last year's number. The decrease was partially offset by the new Exploration revenue this quarter, and this revenue primarily includes the sale of an instrument as well as the sale of various consumables related to the Exploration platform. Slide 15 shows our costs and operating expenses for the second quarter of 2025, which decreased to $20.1 million from $23.9 million for the prior year period. We saw decreases in both R&D and G&A expenses relative to last year, and I'll go into some of those details here on the next slide. Turning to slide 16 and focusing on operating expense, you'll see a new line item for the costs associated with the Exploration revenue, which were approximately $300,000 this quarter. This represents the costs associated with the manufacturing of the Exploration instrument as well as the related consumables sold in the quarter. Research and development expense was $10.9 million versus $13.9 million a year ago, with the decrease primarily due to lower stock-based compensation, lower headcount, as well as lower external expenses associated with small molecule ion channel programs. G&A expense declined to $7.7 million from $8 million for the same period in 2024, with a decrease primarily due to lower legal fees and lower stock-based compensation expense. The other operating income line includes a gain of $3 million for the sale of the KV7 asset to Angelini, which was partially offset by an increase to our CVR liability associated with this sale. The net loss for the second quarter of 2025 was $15.9 million or $0.15 per share, which compared with a net loss of $13.6 million or $0.13 a share for the same period of 2024. As Matt mentioned, we had a further reduction to our headcount in July. This reduction is expected to have one-time expenses of about $1 million that will occur primarily in the third quarter. We expect that the combination of the actions that we took last February and this one here in July will result in approximately $7 million of annual cash savings going forward. Turning to slide 17, you'll see the balance sheet as of June 30th, 2025. We ended the quarter with $41.6 million in cash, and our cash use in the quarter was $2 million. During the quarter, we received milestone payments for GenMab's 1078 and excitinib, as well as the upfront payment from Angelini Pharma related to the sale of the KV7 asset. Let me conclude with slide 18 with a discussion of our 2025 guidance. We continue to expect that 2025 revenue will be between $20 million and $25 million, and operating expense will be between $85 million and $90 million. As a reminder, approximately 40% of our operating expense is non-cash, mostly due to stock-based compensation and the amortization of intangibles, primarily from historical company or technology acquisitions. We also continue to expect that our cash use in 2025 will be lower than cash used in 2024. Finally, our guidance on the tax rate remains unchanged at approximately 0% due to a valuation allowance. With that, I'd like to open up the call for questions. Operator. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speaker phone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Puneet Souda from Leerink. Please go ahead. Hi. Thanks for taking my question. You have Michael on for Puneet today. Congrats on the quarter. Hey, Michael. My first question has to do with just large pharma versus small biotech trends. We've heard a lot from CROs talking about small biotechs moving forward on their trials and wondering if you're seeing any of that flow through either positive or negative in terms of your discovery. Any color you can provide there or if it's completely separate from, I guess, more later stage. Yeah, Michael, thanks for the question. This is Matt. We've been pleased with the continued growth in both partners and programs. We saw really nice momentum starting to build in that coming out of last year. That obviously has continued, and you can see it in the performance and the numbers through Q2. We've had nice net growth in both partners, which is a nice metric of our technologies and their relevance to the industry and how they're attracting new partners as well as programs. We also see a nice mix of large pharma partners starting up new programs as well as smaller players as well. We're seeing contributions from both, as well as academics who are now incubating assets to spin those out into companies. In terms of your question around small and large, we're seeing it from both. Okay, great. A quick question on the guide. I was wondering if the reiterated guide continues to exclude any benefit from Exploration or if the reiteration sort of includes expectations now that you're one quarter in with the launch. I think, as we said, we indicated that Exploration would be additive to what we had. I mean, you'll see this number that we have here in Q2. It's a great start to this, but it's pretty small numbers. No change to the guidance, but this Exploration should be additive to that. Yeah, still no change also, Michael, to the, we see Exploration is additive and accretive to the business, right, in terms of how it's designed to run. We've been preparing for this launch for quite a while, and we're excited about it. The feedback has been great. Thank you. Thanks, Michael. Thank you. Your next question comes from Matt Hewitt from Craig-Hallum Capital Group. Please go ahead. Hi, this is Jackson Schroeder on for Matt Foehr. Congrats on the quarter. Thanks, Jack. I wanted to dive into Exploration there a little bit, seeing revenue flow through. Curious if you guys could provide a little color on the pipeline as to how that's going, maybe even if not numbers help give some guidance on that. Yeah, thanks, Jackson. We launched the Partner Access Program in May, mid-May, at the PEGS conference in Boston. That was really a perfect place to launch the technology, given the attendees of that meeting. We were really happy with the reception we got. We were voted Best of Show, which was cool. A lot more importantly, a lot of really great dialogue kicked off there. We're now at 100 active partners, who are candidates, if you will, for Exploration, for some of whom it's more relevant than others, just given the business model. We were really happy with the fact that we sold and deployed an instrument really within weeks of the launch at a global partner. I think that bodes very well for how we're positioned. The book of business is filling up really nicely. We're managing a lot of business activity around it. These are capital acquisitions, so the process is slightly different than a standard technology licensing process. We are really pleased with the feedback we're getting and the momentum that the Exploration team is building up and for what the technology is doing for the business. I'll also note, too, that we are also getting interest from others who are not currently OmniAb partners who are sort of leading with Exploration, wanting to become discovery partners specifically with Exploration in mind. I think that really speaks to some of the comments I made earlier about this really being the right time for Exploration from a lot of different perspectives. Perfect. That's all. Thank you. Thanks, Jack. Thank you. Your next question comes from Brendan Smith from TD Cowen. Please go ahead. Hey, guys. Congrats on the quarter. This is Jackie on for Brendan. Hey, Jackie. I was just curious as to what that timeline looks like for existing partners that want to become a part of the Access Program. Is it kind of a blanket requirement to purchase an instrument, or are you guys also offering a sort of data generation side separately for those partners? Yeah, good question, Jackie. Obviously, Exploration, I'll just kind of step back first and say Exploration has been a part of our workflows internally for many years, right? That's kind of what I mean in terms of us preparing for Exploration launch and deployment for partners for a while. Exploration's also been a key part in how we leverage big data generation, our AI and ML tools that we've branded OmniDeep. Those are all things that we continue to do for our standard discovery partners, right? That also attracts partners, not only the ability to get access to four species of animals and novel repertoires of fully human antibodies, but also those downstream workflow abilities that we've built up over time that allow us to provide them with a wealth of winners, if you will, from an antibody sequence perspective. Our partners still get access to that. They'll still get access to Exploration through us. That said, there are some partners who have their own wet labs and are interested and are doing the amount of work and the number of campaigns per year that it makes sense for them to have an Exploration instrument in-house. The answer is really no change to how we interact with our partners in terms of data generation and sharing. Now, certain partners obviously have the ability to buy an Exploration instrument. Yeah. is going to add. Yeah, let me add on, Jackie. Let's say somebody comes to us and they're interested in an Exploration instrument and they're not currently a partner. We'll have that dialogue and say, you know, we let them know that this is a Partner Access Program. If they're interested in becoming a partner, then we would work out and do a license with them to give them access to our technology stack. It could kind of be done at the same time. They'll sign that license to become a partner, and then we could engage in the discussion on the sale of an Exploration unit. That's how it would work. Yeah, that's awesome and super helpful. I appreciate the color. Maybe just, obviously, you might not be able to say much about this, but any color on where you expect your second tech launch to land regarding maybe whether it's going to be kind of continuing more on this AI/ML data portfolio side or more towards the antibody legacy business? Yeah, great question, Jackie. I will say we are planning an additional technology launch this year. We've generally launched our new technologies at major scientific conferences that are very relevant to our partner set, right? The technology we're going to launch is informed by, obviously, the deep relationships we have with our 100 partners and growing and also kind of leverages that vantage point that we have on the industry. We will talk more about it when we launch it. I'll just say we will launch it this year. It is certainly highly relevant to our strategic mission to help partners discover antibodies more quickly and efficiently. We think it'll actually be a pretty impactful one with a lot of novelty to it. Great, thank you. Thank you. Your next question comes from Stephen Willey from Stifel. Please go ahead. Yeah, good afternoon. Thanks for taking the question. Just with respect to the Janssen Tri specific, the data does look quite interesting. Does that fall into the grandfathered prepaid license bucket? I guess I ask the question because I know that the prior bispecific that Janssen got approved, [teclistamab], I believe, was also prepaid in nature. Steve, good question. You're correct in that the disclosed economics around the Janssen deal actually wouldn't qualify as prepaid as you've described it here. There are actually $35 million of milestone payment associated with first sales. That's the same path that was disclosed back when TechVali was approved and launched in the U.S. and Europe. There are payments associated at launch, so it's not a fully paid license. Got it. Understood. I understand still early in Exploration, and it's probably hard to give guidance around anything at this point. Just curious if you guys have a rough estimate that you might be willing to proffer up with respect to, you know, what the backend stream of consumable and subscription revenue may look like on a per-instrument basis. Is that a number that you guys would be willing to disclose, or is there, I guess, kind of an industry reference that you would point us to? Yeah, it's a good question, Steve. I mean, we have estimates of what we think those might be, but it actually varies depending on the customer that's using it. I don't think we're ready to provide what those estimates are at this point, but it could be different depending on the type of customer that is using the instrument. I don't know, Matt, anything? I think it's still, yeah, nothing really to add there other than it is still early days. It's a high-margin business on the backend, which I think bodes very well for the Exploration line. Okay. You talked about the seismic molecule being the third OmniChicken-derived antibody under the clinic. Do we know just, I guess, roughly what proportion of those assets that are preclinical and beyond, I guess it's those 61 assets, are derived off of that platform as well? Does that technology tend to command a bit of a higher royalty rate relative to the overall average of the portfolio that you provided? Yeah, Steve, obviously, a range of royalties as you look across our full portfolio, right? As that mix has evolved, we're seeing improvement in the average royalty with evolution of the mix across the portfolio. Just sort of speaking generally about the chicken platform, as I said, we've had three now OmniChicken-derived antibodies enter the clinic. Chicken generally has within it a number of technologies. Our standard OmniChicken, which obviously is a chicken that produces fully human antibody sequences. We also have OmniClick, which is a chicken with a common light chain that also produces fully human sequences, really designed specifically around bispecifics. We launched OmniDAB not that long ago, about a year and a half or so ago, which is a chicken that produces domain antibodies, which are really interesting in CNS and other areas. We continue to innovate around the chicken as well. It's a highly differentiated technology for a lot of reasons. In terms of the questions around the 61 programs that are post-discovery stage or preclinical or later, there are definitely a number of chicken programs in there. In fact, we have an OmniDAB represented in there as well, which is a pretty quick progression for a newer technology. We've not kind of broken it down by source technology at this point. Understood. Thanks for taking the questions. Thanks, Steve. Thank you. Your last question comes from Connor McNamara, RBC Capital Markets. Please go ahead. Hi, this is Eric Carter on for Connor. Congratulations on the quarter. I just had a question about the business plan for Exploration. Is that mostly selling instruments and then also selling consumables, or is that a reagent rental kind of plan that you want to do with the Exploration? Yeah, it is selling instruments. You're right in the way you described it, where we will sell instruments to partners. Then downstream of that, they will buy from us proprietary consumables as well as software license with maintenance as well. There are two primary consumables, which are chips and plates that are needed for runs of the instrument. Perfect. Congratulations with the new additions of programs and partners. As you look in your funnel with folks who are looking at the platform, what are some of the themes that you're seeing for the programs that your partners are exploring? Has it changed from oncology to CNS or infectious diseases, or could you give just broad themes as to what you're seeing right now? Yeah, great question. One of the things that we do think about when we innovate around new technologies is not only where the industry is right now, but where the industry is headed. I think now with 381 programs growing, over 100 partners, it continues to grow. We have a pretty interesting vantage point on the industry. We think about what technologies partners want. We also think about ways to diversify our platform and diversify our portfolio, I should say, from a therapy area or other use perspective. We look into our preclinical assets. We see, of course, oncology, as you'd expect in the industry, but we also see inflammation, fibrosis, renal, dermatology, a growing subset of CNS diseases. We see some metabolic. We see a lot of interesting trends in the discovery space as well as my perception is that as big pharma starts to take bigger swings at bigger areas, we see that in the types of targets they're going after. It's a cool vantage point on the industry, but we're also seeing a lot of diversity there forming in our pipeline. Sweet. Thank you. Yep. Thanks, [Jose]. Thank you. There are no further questions at this time. Mr. Matt Foehr, you may proceed. Thank you all for joining our call today. We appreciate your interest and engagement with OmniAb. We look forward to discussing our third quarter financial results at our next conference call, which will be in early November. In the meantime, we're looking forward to participating in a number of investment conferences in the coming weeks and months, and we'll announce those details shortly. Thank you again and have a nice afternoon. Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect. Have a great day.