OmniAb, Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
OABI$5.03+4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001846253-25-000066
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001628280-25-048923
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 79 previous paragraphs and 75 current paragraphs.
50 unchanged; 22 reworded; 3 added; 3 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
•Other operating expense (income), net during the three months ended September 30, 2025 and 2024 primarily includes the contingent liability adjustments associated with certain ion channel programs.
Current report
Income Tax Benefit
Current report
On August 26, 2025, we completed a private placement (“August 2025 PIPE”) of 21,254,106 shares of our common stock at a price of $1.40 per share or, with respect to any purchaser that was an officer, director, employee or consultant of the Company, $1.85 per share. The aggregate gross proceeds from the August 2025 PIPE were approximately $30.0 million, before deducting placement agent fees and offering expenses. On September 12, 2025, we filed a registration statement on Form S-3 with the SEC registering the resale of the shares of common stock issued in the August 2025 PIPE, which registration statement was declared effective by the SEC on September 19, 2025.
Removed paragraphs (3)
Previous report
(1)Percentage change is not meaningful.
Previous report
(1)Percentage change is not meaningful.
Previous report
Income Tax Benefit (Expense)
Reworded paragraphs (22)
Previous wording
As of June 30, 2025, we had 100 active partners with 381 active programs using the OmniAb technology platform, including 28 OmniAb-derived antibodies in clinical development by our partners, one under regulatory review, and three approved products developed and commercialized by our partners.
Current wording
As of September 30, 2025, we had 104 active partners with 399 active programs using the OmniAb technology platform, including 28 OmniAb-derived antibodies in clinical development by our partners, one under regulatory review, and three approved products developed and commercialized by our partners.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2025 and 2024
Current wording
Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
Previous wording
•License and milestone revenue fluctuates depending on the timing of new license agreements with partners and partners’ achievement of milestones. Because of these factors, license and milestone revenue could fluctuate significantly from period to period. License and milestone revenue decreased primarily due to a $1.8 million decline in milestone revenue.
Current wording
•License and milestone revenue fluctuates depending on the timing of new license agreements with partners and partners’ achievement of milestones. Because of these factors, license and milestone revenue could fluctuate significantly from period to period. License and milestone revenue decreased primarily due to a $1.0 million decline in milestone revenue, partially offset by a $0.3 million increase in license revenue.
Previous wording
•Service revenue declined primarily as a result of the discontinuation of a small molecule ion channel program and the related acceleration of revenue in the prior year period.
Current wording
•Service revenue declined primarily as a result of the completion of certain small molecule ion channel programs in the first half of 2025.
Previous wording
•License and milestone revenue decreased primarily due to a $0.8 million decline in milestone revenue, partially offset by a $0.2 million increase in license revenue.
Current wording
•License and milestone revenue decreased primarily due to a $1.8 million decline in milestone revenue, partially offset by a $0.5 million increase in license revenue.
Previous wording
•Service revenue declined primarily as a result of the discontinuation of a small molecule ion channel program and the related acceleration of revenue in the prior year period.
Current wording
•Service revenue declined primarily as a result of the completion or discontinuation of certain small molecule ion channel programs and the acceleration of revenue in the prior year period as a result of one of the discontinued programs.
Previous wording
•Research and development expenses consist of (1) personnel related expenses, including salaries, benefits and share-based compensation, (2) external expenses, including third-party costs for goods and services such as lab supplies and contract research, and (3) facility and other overhead expenses, including depreciation and occupancy costs. Research and development expenses decreased primarily due to lower personnel expenses related to lower share-based compensation expense and lower headcount, and lower external expenses associated with ion channel programs.
Current wording
•Research and development expenses consist of (1) personnel related expenses, including salaries, benefits and share-based compensation, (2) external expenses, including third-party costs for goods and services such as lab supplies and contract research, and (3) facility and other overhead expenses, including depreciation and occupancy costs. Research and development expenses decreased primarily due to lower personnel expenses related to lower share-based compensation expense and headcount, and lower external expenses associated with ion channel programs.
Previous wording
•Amortization of intangibles declined primarily due to the write-off of the net carrying value of our finite-lived intangible assets related to the acquisition of Ab Initio of $1.2 million in the prior year period.
Current wording
•Amortization of intangibles declined primarily due to the write-off of the net carrying value of $2.7 million of certain small molecule ion channel intangible assets in the prior year period.
Previous wording
•Cost of xPloration revenue consists of contract manufacturing costs, material parts costs and associated freight, shipping and handling costs, royalty costs, and other direct costs related to xPloration revenue recognized in the period. During the three months ended June 30, 2025, cost of xPloration revenue was $0.3 million.
Current wording
•Cost of xPloration revenue consists of contract manufacturing costs, material parts costs and associated freight, shipping and handling costs, royalty costs, and other direct costs related to xPloration revenue recognized in the period. During the nine months ended September 30, 2025, cost of xPloration revenue increased due to direct costs associated with the sale of xPloration revenue recognized during the period.
Previous wording
•Research and development expenses decreased primarily due to lower personnel expenses related to lower share-based compensation expense and reduced headcount, and lower external expenses associated with ion channel programs and screening technology development.
Current wording
•Research and development expenses decreased primarily due to lower personnel expenses related to lower share-based compensation expense and headcount, and lower external expenses associated with ion channel programs and lower contract research costs.
Previous wording
•Amortization of intangibles declined primarily due to the write-off of the net carrying value of our finite-lived intangible assets related to the acquisition of Ab Initio of $1.2 million in the prior year period.
Current wording
•Amortization of intangibles declined primarily due to the write-off of the net carrying value of our finite-lived intangible assets related to the acquisition of Ab Initio of $1.2 million and the write-off of the net carrying value of $2.7 million of certain small molecule ion channel intangible assets in the prior year period.
Previous wording
•Other operating income, net during the six months ended June 30, 2025 includes a gain of $3.0 million from the sale in May 2025 of a small molecule Kv7.2 program to Angelini and a $0.9 million reduction in contingent liabilities attributed to changes in certain ion channel programs, which were partially offset by the $1.0 million contingent liability adjustment associated with the Angelini program. Other operating income, net during the six months ended June 30, 2024 includes a $2.6 million reduction in contingent liabilities primarily attributed to changes in ion channel programs.
Current wording
•Other operating income, net during the nine months ended September 30, 2025 includes a gain of $3.0 million from the sale in May 2025 of a small molecule Kv7.2 program to Angelini and a $0.9 million reduction in contingent liabilities attributed to changes in certain ion channel programs, which were partially offset by the $1.0 million contingent liability adjustment associated with the Angelini program. Other operating income, net during the nine months ended September 30, 2024 primarily consists of a $2.4 million reduction in contingent liabilities attributed to changes in ion channel programs.
Previous wording
Other income (expense), net during the three and six months ended June 30, 2025 and 2024 primarily related to interest earned on short-term investments. The decline in interest income related to lower short-term investment balances as well as declines in interest rates.
Current wording
Other income (expense), net during the three and nine months ended September 30, 2025 and 2024 primarily related to interest earned on short-term investments. The decline in interest income was related to lower short-term investment balances as well as declines in interest rates.
Previous wording
Our effective tax rate for each of the three and six months ended June 30, 2025 and 2024 differed from the federal statutory tax rate of 21.0% primarily due to the valuation allowance established on federal and state attributes and the tax impact of stock award activities that was partially offset with the benefit related to research and development tax credits.
Current wording
Our effective tax rate for each of the three and nine months ended September 30, 2025 and 2024 differed from the federal statutory tax rate of 21.0% primarily due to the valuation allowance established on federal and state attributes and the tax impact of stock award activities that was partially offset with the benefit related to research and development tax credits.
Previous wording
As of June 30, 2025, our cash, cash equivalents and short-term investments were $41.6 million. We believe our existing cash, cash equivalents and short-term investments are sufficient to support operations through at least the next 12 months from the date of issuance of these financial statements.
Current wording
As of September 30, 2025, our cash, cash equivalents and short-term investments were $59.5 million. We believe our existing cash, cash equivalents and short-term investments are sufficient to support operations through at least the next 12 months from the date of issuance of these financial statements.
Previous wording
During the six months ended June 30, 2025, cash used in operating activities of $21.0 million primarily reflected our net loss of $34.1 million, changes in our operating assets and liabilities in the amount of $1.5 million, partially offset by net non-cash charges of $14.6 million which primarily included $8.3 million in share-based compensation, $9.4 million in depreciation and amortization, and a non-cash gain on sale of an ion channel asset of $3.0 million.
Current wording
During the nine months ended September 30, 2025, cash used in operating activities of $30.8 million primarily reflected our net loss of $50.6 million and changes in our operating assets and liabilities in the amount of $2.0 million, partially offset by net non-cash charges of $21.9 million which primarily included $12.2 million in share-based compensation, $14.0 million in depreciation and amortization, a gain on sale of an ion channel asset of $3.0 million and a change in our deferred income taxes of $1.1 million.
Previous wording
During the six months ended June 30, 2024, cash used in operating activities of $29.2 million primarily reflected our net loss of $32.6 million, changes in our operating assets and liabilities in the amount of $11.3 million, partially offset by net non-cash charges of $14.6 million which primarily included $11.1 million in share-based compensation, and $11.1 million in depreciation and amortization.
Current wording
During the nine months ended September 30, 2024, cash used in operating activities of $35.8 million primarily reflected our net loss of $49.0 million, changes in our operating assets and liabilities in the amount of $8.8 million, partially offset by net non-cash charges of $22.0 million which primarily included $16.4 million in share-based compensation, $16.0 million in depreciation and amortization, a change in our deferred income taxes of $7.2 million, a change in the estimated fair value of contingent liabilities of $2.4 million, and the amortization of discounts on short-term investments of $1.3 million.
Previous wording
During the six months ended June 30, 2025, cash provided by investing activities primarily consisted of$27.3 million of proceeds from the maturity of short-term investments and $3.0 million of proceeds from the sale of an ion channel asset, partially offset by$18.6 million of cash used to purchase short-term investments.
Current wording
During the nine months ended September 30, 2025, cash provided by investing activities of$3.8 million primarily consisted of$39.8 million of proceeds from the maturity of short-term investments and $3.0 million of proceeds from the sale of an ion channel asset, partially offset by$38.6 million of cash used to purchase short-term investments.
Previous wording
During the six months ended June 30, 2024, cash provided by investing activities of$33.1 million primarily consisted of$50.5 million of proceeds from the maturity of short-term investments and $1.3 million from the sale of short-term investments, partially offset by$16.7 million of cash used to purchase short-term investments and$1.7 millionof cash used to purchase property and equipment.
Current wording
During the nine months ended September 30, 2024, cash provided by investing activities of$37.5 million primarily consisted of$63.5 million of proceeds from the maturity of short-term investments and $1.9 million from the sale of short-term investments, partially offset by$25.7 million of cash used to purchase short-term investments and$1.8 millionof cash used to purchase property and equipment.
Previous wording
During the six months ended June 30, 2025, cash provided by financing activities was$0.3 million, which primarily consisted of proceeds from the issuance of common stock from stock plans.
Current wording
During the nine months ended September 30, 2025, cash provided by financing activities was$28.0 million, which primarily consisted of net proceeds from the issuance of our common stock in the August 2025 PIPE.
Previous wording
During the six months ended June 30, 2024, cash provided by financing activities was$0.6 million, which primarily consisted of$2.1 million of proceeds from the issuance of common stock from stock plans, partially offset by $1.0 million oftaxes paid related to the net share settlement of equity awards and$0.5 million of transaction costs.
Current wording
During the nine months ended September 30, 2024, cash provided by financing activities was$9.2 million, which primarily consisted of$2.3 million of proceeds from the issuance of common stock from stock plans and $8.5 million of proceeds from the issuance of common stock under the ATM facility, net of commissions, partially offset by $1.0 million oftaxes paid related to the net share settlement of equity awards and$0.5 million of transaction costs.
Previous wording
There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2025, as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2024 Annual Report.
Current wording
There have been no material changes to our critical accounting policies and estimates during the nine months ended September 30, 2025, as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2024 Annual Report.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•xPloration revenue increased primarily as a result of the sale of an instrument and related consumables.
Previous report — wording carried elsewhere
•Royalty revenue declined primarily due to lower net sales from partners’ product sales in China.
Previous report — wording carried elsewhere
•Other operating income, net during the three months ended June 30, 2025 includes a gain of $3.0 million from the sale in May 2025 of a small molecule Kv7.2 program to Angelini Pharma S.p.A. (“Angelini”), partially offset by the contingent liability adjustment associated with that program of $1.0 million. Other operating income, net during the three months ended June 30, 2024 includes a $2.6 million reduction in contingent liabilities primarily attributed to changes in ion channel programs.
Previous report — wording carried elsewhere
•Cost of xPloration revenue increased due to direct costs associated with the sale of xPloration revenue recognized during the six months ended June 30, 2025.