Q4 2023 OmniAb Inc Earnings Call

Operator: Good afternoon, and welcome to OmniAb's Incorporated fourth quarter and full year 2023 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.

A question and answer session, but followed the formal presentation.

As a reminder, this conference is being recorded. I'd now like to turn the call over to Kurt Gustafson, OmniAb Incorporated's Chief Financial Officer. You may begin. Thank you.

I'd now like to turn the call over to Kurt Gustafson, Omni App incorporated Chief Financial Officer, you May begin thank you.

Kurt A. Gustafson: Thank you operator, and good afternoon to everyone. As he said, this is Kurt Gustafson and I want to thank you all for joining our fourth quarter and full year 2023 financial results conference call.

He said this is Kurt Gustafson and I want to thank you all for joining our fourth quarter and full year 2023 financial results Conference call.

There are slides to accompany today's prepared remarks, and they are available in the investors section of our website at omniab.com.

Before we begin, I'd like to remind listeners that comments made during this call 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.

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 March 20th, 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 Foehr, OmniAb's President and CEO. 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 will open the call to questions. With that, let me turn the call over to Matt.

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 will open the call to questions with that let me turn the call over to Matt.

Matt Foehr: Thanks Kurt and good afternoon everyone and thanks for joining our fourth quarter and full year 2023 conference call.

As we kick off the call today, I would like to mention that our clear mission here at OmniAb is to enable the rapid development of innovative therapeutics by pushing the frontiers of drug discovery technologies.

We do this with any pure play licensing business that is partnering focused and that's designed to be efficient, scalable, highly leverageable and that we believe is now poised for growth to meet what we see as an enduring and global need in the pharmaceutical industry.

Our technology offering addresses the most critical challenges of antibody based drug discovery. We have a highly differentiated suite of technologies that are proven and increasingly leverageable. Better industry success rates and other factors are driving an acceleration of antibody based investments by the pharmaceutical industry and we think we're well positioned to meet increased demand for cutting edge antibody focused discovery technologies.

A highly differentiated suite of technologies that are proven and increasingly leverages <unk>.

Better industry success rates and other factors are driving an acceleration of antibody based investments by the pharmaceutical industry and we think we're well positioned to meet increased demand for cutting edge antibody focused discovery technologies.

OmniAb grew significantly in 2023, making substantial progress across key elements of our business. This included the expansion of our partnership base and our pipeline of partnered programs, advancements of key late-stage programs by some of our partners and global expansion of our business development team. We now have BD team members in the U.S and in Asia based out of Singapore and in Europe.

This included the expansion of our partnership base and our pipeline of partnered programs advancements of key late stage programs by some of our partners and. And global expansion of our business development team.

And global expansion of our business development team.

We now have BD team members in the U.S and in Asia based out of Singapore and in Europe.

We're focused on and dedicated to continued innovation and executed extremely well on that in 2023 with two successful new technology launches, including OmniDeep, which is our suite of In Silico, AI, and machine learning technologies and capabilities that are woven throughout our technology stack and that marry extremely well with the biological intelligence of our transgenic animals.

<unk> extremely well with the biological intelligence of our transgenic animals.

In November, we launched OmniDab, which is our latest example of a novel transgenic animal and I'll talk more about that shortly. We have an impressive list of achievements in our first full year as an independent public company, but our focus remains on pushing the boundaries of technologies to continue to meet the needs of our partners now and in the future. We have an increasingly efficient internal technology innovation engine that helps frame how we believe we'll create long term value for all of our stakeholders. And building on this momentum from 2023, we're looking forward to continued growth in the year ahead. 

We have an impressive list of achievements in our first full year as an independent public company.

But our focus remains on pushing the boundaries of technologies to continue to meet the needs of our partners now and in the future.

We have an increasingly efficient internal technology innovation engine that helps frame, how we believe will create long term value for all of our stakeholders. And building on this momentum from 2023, we're looking forward to continued growth in the year ahead.

And building on this momentum from 2023, we're looking forward to continued growth in the year ahead.

Okay.

Here now on slide number five, you can see some of our business metrics. And these graphs in many ways speak for themselves and I think clearly show that 2023 was another year of substantial growth and progress in our business. Despite sector related and macro headwinds last year, our key performance indicators continued to perform extremely well.

Here now on slide number five, you can see some of our business metrics. And these graphs in many ways speak for themselves and I think clearly show that 2023 was another year of substantial growth and progress in our business.

And these graphs in many ways speak for themselves and I think clearly show that 2023 was another year of substantial growth and progress in our business. Despite sector related and macro headwinds last year, our key performance indicators continued to perform extremely well.

Despite sector related and macro headwinds last year, our key performance indicators continued to perform extremely well.

Despite sector related and macro headwinds last year, our key performance indicators continued to perform extremely well. Our active partners grew to 77 from 69, a year ago, representing a 12% increase. Our active partner programs also grew by 12% with an increase to 325 from 291. And lastly, our active clinical and approved programs increased by 23% as we had 32 at the end of 2023 compared with 26 at the end of 2022.

Our active partners grew to 77 from 69, a year ago, representing a 12% increase. Our active partner programs also grew by 12% with an increase to 325 from 291. And lastly, our active clinical and approved programs increased by 23% as we had 32 at the end of 2023 compared with 26 at the end of 2022.

Our active partner programs also grew by 12% with increased to 325 from 291. And lastly, our active clinical and approved programs increased by 23% as we had 32 at the end of 2023 compared with 26 at the end of 2022.

And lastly, our active clinical and approved programs increased by 23% as we had 32 at the end of 2023 compared with 26 at the end of 2022.

I want to stress that all of these numbers here are net of attrition. And I note that attrition is obviously natural and it is expected in pharmaceutical discovery and development.

And I note that attrition is obviously natural and its expected in pharmaceutical discovery and development.

I will now talk about our partnership base in a little more detail here on slide number six. 2023 was highly productive in new partner additions as our number of active partners continued to grow net of attrition. We saw multiple factors driving this expansion, including platform visibility and clinical and commercial validation of our technologies and expanded business development and marketing presence that's backed by our cutting edge science and our new technology launches.

2023 was highly productive and new partner additions as our number of active partners continued to grow net of attrition. We saw multiple factors driving this expansion, including platform visibility and clinical and commercial validation of our technologies and expanded business development and marketing presence, that's backed by our cutting edge science and our new technology launches.

We saw multiple factors driving this expansion, including platform visibility and clinical and commercial validation of our technologies and expanded business development and marketing presence, that's backed by our cutting edge science and our new technology launches.

As we continue to focus on the licensing to align our interest with our partners, we're attracting and bringing in a diverse set of partners to bolster the next wave of discovery and preclinical candidates advancing to the clinic.

Attracting and bringing in a diverse set of partners to bolster the next wave of discovery and preclinical candidates advancing to the clinic.

Moving now to slide number seven, here, we're providing a further breakdown of our new platform licensing deals from last year. We signed 10 new licenses in 2023 and today, we are disclosing new platform deals with Enable Life Sciences as well as one with a startup company that were both signed in the fourth quarter, along with a previously disclosed big pharma partnership that was also executed in Q4. And as I said, we signed 10 new deals in the full year of 2023.

Here, we're providing a further breakdown of our new platform licensing deals from last year. We signed 10, new licenses in 2023 and today, we are disclosing new platform deals with enable life sciences as well as one with a startup company. And that we're both signed in the fourth quarter, along with a previously disclosed big pharma partnership that was also executed in Q4 and as I said, we signed 10 new deals in the full year of 2023.

We signed 10, new licenses in 2023 and today, we are disclosing new platform deals with enable life sciences as well as one with a startup company. And that we're both signed in the fourth quarter, along with a previously disclosed big pharma partnership that was also executed in Q4 and as I said, we signed 10 new deals in the full year of 2023.

And that we're both signed in the fourth quarter, along with a previously disclosed big pharma partnership that was also executed in Q4 and as I said, we signed 10 new deals in the full year of 2023.

As you see here on the chart, [inaudible] well established global big pharma players as well as deals with new biotech partners and academic partners. We added four new deals with startup partners and I want to highlight that 40% of our deals were done with startup companies despite the significant drop in funding for smaller or new biotech companies in 2023. We see this diversity of new partners as a strength in our business.

<unk> 2023. We see this diversity of new partners as a strength in our business.

We see this diversity of new partners as a strength in our business.

Maintaining our business track record of execution, we have also seen nice growth and advancement of active programs and I'm now on slide number eight. As mentioned, we started 2023 with 291 active programs and grew to 325 active programs net of attrition. You can see the growth reflected on the left hand side in the bar chart. The pie chart on the right breaks down our 325 active programs by stage of development. By the end of 2023, our growing discovery phase consisted of 278 programs and 15 programs that were in the preclinical stage. And importantly, we defined preclinical stage programs as ones that are confirmed to be in pre-IND or IND-enabling studies.

As mentioned, we started 2023 with 291 active programs and grew to 325 active programs net of attrition. You can see the growth reflected on the left hand side in the Bar chart.

You can see the growth reflected on the left hand side in the Bar chart.

Pie chart on the right breaks down our 325 active programs by stage of development by the end of 2023 are growing discovery phase consisted of 278 programs and 15 programs that were in the preclinical stage and importantly, we defined preclinical stage programs as ones that are confirmed.

To be in pre IND or IND, enabling studies.

During 2023, we had six programs move from preclinical to phase one clinical trials. So at the end of the year, we had 25 programs in phase one trials. And I note also that one program moved from phase III to its first international registration filing. With these leading positive metrics, it's also good to see that we have kept our building momentum for the growth in active clinical programs that are shown here on slide number nine. We started off 2023, indicating that we expected three to five new clinical starts by our partners and we ended the year with six new clinical starts.

During 2023, we had six programs move from preclinical to phase one clinical trials. So at the end of the year, we had 25 programs in phase one trials. And I note also that one program moved from phase III to its first international registration filing. With these leading positive metrics, it's also good to see that we have kept our building momentum for the growth in active clinical programs that are shown here on slide number nine.

Note also that one program moved from phase III to its first international registration filing. With these leading positive metrics. It's also good to see that we have capped and are building momentum for the growth in active clinical programs that are shown here on slide number nine.

With these leading positive metrics. It's also good to see that we have capped and are building momentum for the growth in active clinical programs that are shown here on slide number nine.

We started off 2023, indicating that we expected three to five new clinical starts by our partners and we ended the year with six new clinical starts.

We started off 2023, indicating that we expected three to five new clinical starts by our partners and we ended the year with six new clinical starts.

As I mentioned, a few just briefly CGen announced initiation of a first in human phase one clinical trial of its bi specific SDN BB 228, which is targeting anti CD228, and 41BB in advanced melanoma and other solid tumors. This program is now in Pfizer's pipeline following the closure of their acquisition of CGen, and going forward, we'll be referenced by its Pfizer project number. [inaudible] initiated a phase one clinical trial of its next generation anti F. CRM, INDT 1402 in autoimmune diseases and cessation began a phase one study of CFS X 1004, which is a monoclonal antibody derived from omni rat designed specifically to prevent Fentanyl overdose. 

This program is now in Pfizer's pipeline following the closure of their acquisition of CJ <unk> and going forward will be referenced by its Pfizer project number.

<unk> initiated a phase one clinical trial of its next generation anti F. CRM <unk> and autoimmune diseases and cessation began a phase one study of CFS X 1004, which is a monoclonal antibody derived from omni rat designed specifically to prevent setting.

During the first fourth quarter, Biopharma announced the first patient was dosed with its first-in-class [inaudible] targeting antibody drug conjugate BC3195 in a phase one trial in China. A number of our other partners also reported progress on other clinical and commercial stage assets in Q4, and some of those were summarized in our press release that was issued after the market closed today. Based on our dialogue with partners, we see potential for approximately four to six new entries into clinical development for novel OmniAb derived antibodies in 2024.

Yes. During the first fourth quarter <unk> Biopharma announced the first patient was dosed with its first in class <unk> <unk> targeting antibody drug conjugate BC three 195 in a phase one trial in China.

During the first fourth quarter <unk> Biopharma announced the first patient was dosed with its first in class <unk> <unk> targeting antibody drug conjugate BC three 195 in a phase one trial in China.

A number of our other partners also reported progress on other clinical and commercial stage assets in Q4, and some of those were summarized in our press release that was issued after the market closed today.

Based on our dialogue with partners we.

We see potential for approximately four to six new entries into clinical development for novel Omni Abderite antibodies in 2024.

As I mentioned, we're committed to continued innovation around our platform and because of the nature of our relationships, we have a great vantage point, not only on where the industry is right now, but where the industry is headed. And that informs the technologies that we develop and deploy. Last year, we launched OmniDeep and OmniDab and both of those are called out here on slide 10 in the two green boxes on the lower left.

And that informs the technologies that we develop and deploy.

Last year, we launched omni deep and army Gab and both of those are called out here on slide 10. The two green boxes on the lower left.

The two green boxes on the lower left.

I'd like to highlight the OmniDab technology that was launched in Q4 as it is quickly becoming yet another key differentiating technology here at OmniAb. The foundation of our business is our novel transgenic animals. We believe novel antibodies that are generated in vivo are superior to ones from other sources, because they're naturally optimized through an iterative process that preferentially select for antibodies with excellent specificity and develop ability profiles.

The foundation of our business is our novel transgenic animals. We believe novel antibodies that are generated in vivo are superior to ones from other sources, because theyre naturally optimized through an iterative process that preferentially select for antibodies with excellent specificity and develop ability profiles.

We believe novel antibodies that are generated in vivo are superior to ones from other sources, because theyre naturally optimized through an iterative process that preferentially select for antibodies with excellent specificity and develop ability profiles.

The ability of the immune system of our engineered transgenic animals to create optimized antibodies for human therapeutics is what we call biological intelligence and we believe this approach increases efficiency and probability of success for our partners and positions our business extremely well.

We believe this approach increases efficiency and probability of success for our partners and positions our business extremely well.

So OmniDab is our latest example of this. And as described here on Slide 11, it's the first and only transgenic chicken producing single domain antibodies, which is a novel class of antibody found naturally in [inaudible] that's being increasingly exploited for a variety of therapeutic applications.

OmniDab is a novel in vivo platform based on a human VH scaffold that affinity matures into chicken host to provide a functionally diverse immune repertoire of antibodies unavailable from mammalian systems. In a simple sense, single domain antibodies provide modular building blocks and can be assembled into various formats to fit the biology of a desired application. And you can also see on this slide some of the things we hear from our partners about the technology as multiple partners are using it now in active programs. We expect many more will initiate programs with OmniDab this year and next. This is partly because of the unique physical properties of single domain antibodies that are summarized here on slide number 12.

In a simple sense single domain antibodies provide modular building blocks and can be assembled into various formats to fit the biology of a desired application.

And you can also see on this slide some of the things we hear from our partners about the technology as multiple partners are using it now in active programs. We expect many more will initiate programs with omni Dab this year and next. This is partly because of the unique physical properties of single domain antibodies that are summarized here on slide number 12.

We expect many more will initiate programs with omni Dab this year and next. This is partly because of the unique physical properties of single domain antibodies that are summarized here on slide number 12.

This is partly because of the unique physical properties of single domain antibodies that are summarized here on slide number 12.

It can be expressed independently as a unit and their compact format opens up new and important opportunities from a scientific and medical perspective. Single domain antibodies can be leveraged for important applications. They can open up alternate routes of administration that we show here on slide 13, they can lead to increased penetration and tunable clearance and also to new opportunities and new markets for us in imaging, in diagnostics and [inaudible] and in radiotherapy. And they also have broad therapeutic applications in bi and multi specifics and Car-T therapy as well as pursuing therapeutics for CNS and neuro degenerative diseases, which are obviously areas of significant interest for our partners.

Single domain antibodies can be leveraged for important applications. They can open up alternate routes of administration that we show here on slide 13, they can lead to increased penetration and tunable clearance and also to new opportunities and new markets for us in imaging and diagnostics and thorough gnostics.

And in radiotherapy.

And they also have broad therapeutic applications in bi and multi specifics and Car-T therapy as well as pursuing therapeutics for CNS and neuro degenerative diseases, which are obviously areas of significant interest for our partners.

Now as we look at the current year here on Slide 14, in addition to expecting four to six new clinical programs, we expect we'll see late stage advancement for a number of key programs at Genmab, at Immunovant and others. We also expect that our progress on some of our higher value ion channel programs with global big pharma partners will become more visible to investors and to the research world generally, and we're excited about that.

We also expect that our progress on some of our higher value ion channel programs with global Big Pharma partners will become more visible to investors and to the research World generally and we're excited about that.

We now have a fully staffed business development team and a more efficient innovation and support engine that we plan to leverage for deal expansion globally. And we will continue to focus on innovation and expansion of our technology platform and the introduction of new technology, new workflows, and new partner experience enhancements that we'll talk about at scientific and technical conferences through the year.

And we will continue to focus on innovation and expansion of our technology platform and the introduction of new technology, New workflows and new partner experience enhancements that we'll talk about at scientific and technical conferences through the year.

And with that, I will turn the call back over to Kurt to run through the financials. Kurt?

Kurt A. Gustafson: Thanks Matt. So bear with me one final time as I make the statement about our historical financials.

So bear with me one final time as I make the statement about our historical financials.

These financial results reported for the periods prior to November 1st, 2022 are prepared on a carve out basis, which were derived from [inaudible] historical accounting records as if OmniAb were an independent company. This makes certain comparisons difficult primarily for operating expenses, given the differences in corporate structure and the methodologies for reporting.

This makes certain comparisons difficult primarily for operating expenses, given the differences in corporate structure and the methodologies for reporting.

So moving to slide 16, this summarizes the financial performance in the fourth quarter of 2023. Total revenue for the fourth quarter was $4.8 million, compared to $35.3 million in the prior year quarter. The decrease was primarily due to the recognition of the TECHVALY milestone of $25 million that was recorded in Q4 2022. Service revenue was lower primarily due to the completion of work on certain ion channel programs and royalty revenue was about the same as it was last year.

Total revenue for the fourth quarter was $4 8 million compared to $35 3 million in the prior year quarter. The decrease was primarily due to the recognition of the tech Bally milestone of $25 million that was recorded in Q4 2022. Service revenue was lower primarily due to the completion of work on certain ion channel programs and royalty revenue was about the same as it was last year.

The decrease was primarily due to the recognition of the tech Bally milestone of $25 million that was recorded in Q4 2022. Service revenue was lower primarily due to the completion of work on certain ion channel programs and royalty revenue was about the same as it was last year.

Service revenue was lower primarily due to the completion of work on certain ion channel programs and royalty revenue was about the same as it was last year.

Turning to operating expense, our R&D expense for the fourth quarter was $14.8 million, compared to $12.9 million in the prior year quarter. The increase was primarily due to higher personnel costs and investments in our new facilities. For G&A, expense was $7.9 million, compared to $10.2 million in the prior year quarter. Our G&A expense was down due to the transaction costs associated with the spinoff that were recorded in Q4 of 2022. This was somewhat offset by the higher head count related costs as we built up the G&A side of the business over the course of 2023.

Turning to operating expense, our R&D expense for the fourth quarter was $14.8 million, compared to $12.9 million in the prior year quarter. The increase was primarily due to higher personnel costs and investments in our new facilities.

The increase was primarily due to higher personnel costs and investments in our new facilities. For G&A expense was $7 9 million compared to $10 2 million in the prior year quarter. Our G&A expense was down due to the transaction costs associated with the spinoff that were recorded in Q4 of 2022.

For G&A expense was $7 9 million compared to $10 2 million in the prior year quarter. Our G&A expense was down due to the transaction costs associated with the spinoff that were recorded in Q4 of 2022.

For G&A, expense was $7.9 million, compared to $10.2 million in the prior year quarter. Our G&A expense was down due to the transaction costs associated with the spinoff that were recorded in Q4 of 2022. This was somewhat offset by the higher head count related costs as we built up the G&A side of the business over the course of 2023.

Our G&A expense was down due to the transaction costs associated with the spinoff that were recorded in Q4 of 2022.

This was somewhat offset by the higher head count related costs as we built up the G&A side of the business over the course of 2023.

The net loss for the fourth quarter was $14.1 million or 14 cents per share versus a net income of $6.8 million or 7 cents per share in the prior year period. One additional thing that I want to point out is regarding our tax rate in the fourth quarter. We recognized a one-time benefit in the fourth quarter of 2023 that was primarily the result of a deduction for transaction related expenses associated with the spin out. Absent one-time items, we generally expect our tax rate to be around 20% going forward.

One additional thing that I want to point out is regarding our tax rate in the fourth quarter. We recognized a onetime benefit in the fourth quarter of 2000 22023 that was primarily the result of a deduction for transaction related expenses associated with the spin out. Absent one time items, we generally expect our tax rate to be around 20% going forward.

We recognized a onetime benefit in the fourth quarter of 2000 22023 that was primarily the result of a deduction for transaction related expenses associated with the spin out. Absent one time items, we generally expect our tax rate to be around 20% going forward.

Absent one time items, we generally expect our tax rate to be around 20% going forward.

Turning to the full-year results on slide 17, for 2023, total revenue was $34.2 million compared to $59.1 million for 2022. Our license and milestone revenue was lower versus the prior year. The primary difference between the two years was the revenue recognition of the TECHVALY milestones. We recorded a $25 million milestone for TECHVALY in 2022 for the commercial launch in the United States versus the $10 million milestone that was recorded in 2023 for the EU launch. Recall, however that the cash for both milestones was actually received in 2023.

Our license and milestone revenue was lower versus the prior year. The primary difference between the two years with the revenue recognition of the tech Bally milestones. We recorded a $25 million milestone for <unk> in 2022 for the commercial launch in the United States versus the $10 million milestone that was recorded in 2023 for the EU launch.

We recorded a $25 million milestone for <unk> in 2022 for the commercial launch in the United States versus the $10 million milestone that was recorded in 2023 for the EU launch.

Recall, however that the cash for both milestones was actually received in 2023. Service revenue was down compared to the previous year, primarily due to the completion of work on certain ion channel programs. Operating expense for 2023 was approximately $103.6 million compared to $85.7 million in 2022. We saw an increase in the R&D costs associated with higher head count and the investments in our new facilities in 2023.

Recall, however that the cash for both milestones was actually received in 2023.

Service revenue was down compared to the previous year, primarily due to the completion of work on certain ion channel programs. Operating expense for 2023 was approximately $103.6 million compared to $85.7 million in 2022. We saw an increase in the R&D costs associated with higher head count and the investments in our new facilities in 2023.

Service revenue was down compared to the previous year, primarily due to the completion of work on certain ion channel programs.

Operating expense for 2023 was approximately $103 6 million compared to $85 7 million in 2022.

We saw an increase in the R&D costs associated with higher head count and the investments in our new facilities in 2023 and.

And for G&A, we saw an increase in costs associated with building out our G&A infrastructure, which included both people as well as normal public company costs that were not part of the expense structure for most of 2022. Net loss in 2023 was $50.6 million or 51 cents per share versus a net loss in 2022 of $22.3 million or 26 cents a share.

Net loss in 2023 was $50 6 million or 51 per share versus a net loss in 2022 of $22 3 million or 26 cents a share.

2023 was a year of establishing our operations as a separate public company and building a base from which we can grow the business. As you can see, looking at the total operating expense line on slide 18, operating expenses leveled out at about $26 million per quarter. But keep in mind that a good portion of our operating expense is noncash. But we now have the personnel and facilities that we believe will be sufficient to support the growth of the operation well into the future.

2023 was a year of establishing our operations as a separate public company and building a base from which we can grow the business.

As you can see looking at the total operating expense line on slide 18. Operating expenses level that leveled out at about $26 million per quarter. But keep in mind that a good portion of our operating expense is noncash. But we now have the personnel and facilities that we believe will be sufficient to support the growth of the operation well into the future.

Operating expenses level that leveled out at about $26 million per quarter. But keep in mind that a good portion of our operating expense is noncash. But we now have the personnel and facilities that we believe will be sufficient to support the growth of the operation well into the future.

But keep in mind that a good portion of our operating expense is noncash. But we now have the personnel and facilities that we believe will be sufficient to support the growth of the operation well into the future.

But we now have the personnel and facilities that we believe will be sufficient to support the growth of the operation well into the future.

Importantly, we expect to continue to grow the number of partners and programs, but this growth will require a minimal additional head count going forward due to the leverage that is built into our business. As a result, we expect operating expense in 2024 to be approximately the same as it was in 2023. This is a differentiating feature of our business given that our work streams leverage the biological intelligence built into our transgenic animals to discover new molecules.

As a result, we expect operating expense in 2024 to be approximately the same as it was in 2023. This is a differentiating feature of our business given that our work streams leverage the biological intelligence built into our transgenic animals to discover new molecules.

This is a differentiating feature of our business given that our work streams leverage the biological intelligence built into our transgenic animals to discover new molecules.

Turning to slide 19 and taking a look at the balance sheet and our cash position, we ended the year with $87 million of cash versus the starting cash balance of $88.3 million. The only other kind of major change on our balance sheet of note was the reduction in accounts receivable that was based on the collection of those TECHVALY milestones. To set the stage for our projected cash position going forward,

Turning to slide 19 and taking a look at the balance sheet and our cash position, we ended the year with $87 million of cash versus the starting cash balance of $88.3 million. The only other kind of major change on our balance sheet of note was the reduction in accounts receivable that was based on the collection of those TECHVALY milestones.

Taking a look at the balance sheet and our cash position. We ended the year with $87 million of cash versus the starting cash balance of $88 3 million. The only other kind of major change on our balance sheet of note was the reduction in accounts receivable that was based on the collection of that those technology milestones.

We ended the year with $87 million of cash versus the starting cash balance of $88 3 million. The only other kind of major change on our balance sheet of note was the reduction in accounts receivable that was based on the collection of that those technology milestones.

The only other kind of major change on our balance sheet of note was the reduction in accounts receivable that was based on the collection of that those technology milestones.

To set the stage for our projected cash position going forward.

To set the stage for our projected cash position going forward,

I think it's important to understand the components of what drove our cash burn in 2023, which is shown here on slide 20. If you look at the hashed black bars in the chart on the right, you'll see our actual quarterly cash flows for 2023. These show that our net cash used for the full year was $1.3 million. However, this was aided by the receipt of a $35 million payment for the TECHVALY milestones that were received, both of them were received in Q1 of 2023. The blue bars show cash burn excluding this payment, which show that pro forma cash burn averaged about $9 million per quarter for a total of $36.3 million for the year.

If you look at the hashed black bars in the chart on the right you'll see our actual quarterly cash flows for 2023. These show that our net cash used for the full year was $1 $3 million. However. However, this was aided by the receipt of a $35 million payment for the tech Bally milestones that were received. Of them were received in Q1 of 2023. The blue bars show cash burn excluding this payment. Which show that pro forma cash burn averaged about $9 million per quarter for a total of $36 3 million for the year.

These show that our net cash used for the full year was $1 $3 million. However. However, this was aided by the receipt of a $35 million payment for the tech Bally milestones that were received. Of them were received in Q1 of 2023. The blue bars show cash burn excluding this payment. Which show that pro forma cash burn averaged about $9 million per quarter for a total of $36 3 million for the year.

However, this was aided by the receipt of a $35 million payment for the tech Bally milestones that were received. Of them were received in Q1 of 2023. The blue bars show cash burn excluding this payment. Which show that pro forma cash burn averaged about $9 million per quarter for a total of $36 3 million for the year.

Of them were received in Q1 of 2023. The blue bars show cash burn excluding this payment. Which show that pro forma cash burn averaged about $9 million per quarter for a total of $36 3 million for the year.

The blue bars show cash burn excluding this payment. Which show that pro forma cash burn averaged about $9 million per quarter for a total of $36 3 million for the year.

Which show that pro forma cash burn averaged about $9 million per quarter for a total of $36 3 million for the year.

As we look ahead to 2024, we expect our cash use in 2024 to be relatively similar to the cash use in 2023 when you exclude that $35 million TECHVALY milestone payment that we received in 2023.

We expect our cash used in 2024 to be relatively similar to the cash used in 2023, when you exclude that $35 million Tech Bally milestone payment that we received in 2023.

However, unlike 2023, the timing of our cash burn will be more front end loaded in 2024. Q1 is traditionally our largest burn quarter due to compensation cycle items. And in 2024, we are projecting that milestone payments will be weighted towards the second half of the year based on the latest information we've received from our partners and public statements that they've made.

Q1 is traditionally our largest burn quarter due to compensation cycle items.

And in 2024, we are projecting that milestone payments will be weighted towards the second half of the year based on the latest information we've received from our partners and public statements that they've made.

Looking at the following year, based on the expected progression of our existing partner pipeline, we expect our cash use in 2025 to be substantially lower than in 2024. We still expect that our current cash balance and cash from operations should provide sufficient capital to fund the operations for the foreseeable future.

We still expect that our cash our current cash balance and cash from operations should provide sufficient capital to fund the operations for the foreseeable future.

The view of our longer term cash is based on a model that forecast cash inflows from each of our existing partner programs utilizing standard industry timelines for clinical development and applying standard industry probabilities of success.

For example, we had 25 programs in phase one studies at the end of 2023. Based on standard industry probabilities, we would expect approximately half of those to make it to a phase II study. Using the industry average, we calculate the amount of time a program would spend in a phase one study before moving to a phase two study. We then multiply the contracted phase II milestone payment by this probability to come up with our projected milestone payment.

We had 25 programs in phase one studies at the end of 2023 based on standard industry probabilities, we would expect approximately half of those to make it to a phase II study. Using the industry average, we calculate the amount of time our program would spend in a phase one study before moving to a phase two study. We then multiply the contracted phase II milestone payment by this probability to come up with our projected milestone payment.

Using the industry average, we calculate the amount of time our program would spend in a phase one study before moving to a phase two study. We then multiply the contracted phase II milestone payment by this probability to come up with our projected milestone payment.

Now in reality, we will never get half of the milestone payment. However, given the number of programs that are under development, we believe that this methodology provides a suitable way to forecast future revenue. One additional point is that this cash outlook excludes any sort of strategic technology acquisition.

However, given the number of programs that are under development. We believe that this methodology provides a suitable way to forecast future revenue. One additional point is that this cash outlook excludes any sort of strategic technology acquisition.

One additional point is that this cash outlook excludes any sort of strategic technology acquisition.

And with that, I will let Matt make a few closing comments before we open up the call to Q&A.

Matt Foehr: Thanks again Kurt. I want to reiterate that in just over a year after completing our spin offs and becoming an independent company, we've made great strides in our business execution. OmniAb is primed for growth and our business is now highly scalable and highly leverageable given the team we've assembled and the previous investments that we've made into the business.

I want to reiterate that in just over a year after completing our spin offs and becoming an independent company we've.

Made great strides in our business execution on the App is primed for growth and our business is now highly scalable and highly leverages bolt given the team we've assembled and the previous investments that we've made into the business.

We focus our organizational energy here on our stakeholders, which we see as our team, our partners, and the patients that their programs treat or will treat, the communities where we work and of course and importantly on our investors.

The communities, where we work and of course and importantly on our investors.

And with that, I will now turn the call back over to the operator to open it up for questions. Operator?

Operator: Thank you. Ladies and gentlemen, we will now conduct a question and answer session. If you have a question, please press star followed by the number one on your telephone keypad. You will hear a three-toned prompt acknowledging your request.

Thank you, ladies and gentlemen, we will now conduct the question and answer session. If you have a question. Please press star followed by the number one on your telephone keypad you.

Brian: You will hear a three-toned prompt acknowledging your request. If you would like to cancel your request, please press star two. Please ensure you lift the handset if you're using a speaker phone before pressing any keys. One moment please for your first question.

You will hear a three-toned prompt acknowledging your request.

If you would like to cancel your request, please press star two. Please ensure you lift the handset if you're using a speaker phone before pressing any keys. One moment please for your first question.

I would like to consider request please press star two. Accenture you lift the handset if you're using a speaker phone before pressing net's. One moment. Please for your first question.

Accenture you lift the handset if you're using a speaker phone before pressing net's. One moment. Please for your first question.

One moment. Please for your first question.

Your first question comes from the line of Puneet Suda from Leerink Partners. Your line is now open.

Puneet Suda: Hey guys, thanks for the questions here. So first one Matt, if I could ask around, in terms of the overall expectations you ended up ahead of that, the number of programs were also ahead, so just trying to parse out how much of this is simply a function of biotech fundraising and also M&A that we've seen in the first three months this year and how much of this is due to more business development conversations could you maybe parse those out and maybe we're seeing some effect of that already in 2023. So maybe just talk to us about sort of what you saw at the end of 2023 and what's been the conversation on the business development side in the first quarter here as well.

So first one Matt if I could. Ask around in terms of. Overall expectations you ended up ahead of that.

Ask around in terms of. Overall expectations you ended up ahead of that.

Overall expectations you ended up ahead of that.

The number of programs. We're also okay. So just trying to parse out how much of this is. Simply a function of biotech fundraising and also M&A that we've seen in the first three months this year. And how much of this is due to more business development conversations could you maybe. Parse those out. We're seeing some effect of that already in 2023, So maybe just talk to us about sort of what you saw at the end of 2023 and what's been the conversation on the business development side in the first quarter here as well.

Simply a function of biotech fundraising and also M&A that we've seen in the first three months this year. And how much of this is due to more business development conversations could you maybe. Parse those out. We're seeing some effect of that already in 2023, So maybe just talk to us about sort of what you saw at the end of 2023 and what's been the conversation on the business development side in the first quarter here as well.

Brian: And how much of this is due to more business development conversations could you maybe. Parse those out. We're seeing some effect of that already in 2023, So maybe just talk to us about sort of what you saw at the end of 2023 and what's been the conversation on the business development side in the first quarter here as well.

Parse those out. We're seeing some effect of that already in 2023, So maybe just talk to us about sort of what you saw at the end of 2023 and what's been the conversation on the business development side in the first quarter here as well.

We're seeing some effect of that already in 2023, So maybe just talk to us about sort of what you saw at the end of 2023 and what's been the conversation on the business development side in the first quarter here as well.

Matt Foehr: Yes, Puneet, thanks for the question. Implicit in your question and as you said, we're coming off a period in 2022 and 2023 when the biotech funding generally was down substantially right. Smaller companies, especially were having a hard time raising money, big pharma as well established we're taking a close look at their pipelines and focusing their energy on certain assets or therapy areas. And really despite that in 2022 and 2023, we saw really nice growth net of attrition in active partners as well as active programs. In fact, 2022 and 2023 were some of our highest growth years in terms of number of new licenses.

Implicit in your question and as you said, we're coming off a period in 2022 and 2023. When. The biotech funding generally was down substantially right is. Smaller companies, especially we're having a hard time raise. Raising money big. Big pharma as soon as well established where we're. Taking a close look at their pipelines and focusing their energy on certain assets or therapy areas. And it really despite that in 2022 and 2023, we saw really nice growth net of attrition. Inactive partners as well as active programs in fact, 2022, and 2023, where some of our highest growth years in terms of number of new licenses.

When. The biotech funding generally was down substantially right is. Smaller companies, especially we're having a hard time raise.

The biotech funding generally was down substantially right is. Smaller companies, especially we're having a hard time raise.

Smaller companies, especially we're having a hard time raise.

Raising money big. Big pharma as soon as well established where we're. Taking a close look at their pipelines and focusing their energy on certain assets or therapy areas.

Big pharma as soon as well established where we're. Taking a close look at their pipelines and focusing their energy on certain assets or therapy areas.

Taking a close look at their pipelines and focusing their energy on certain assets or therapy areas.

And it really despite that in 2022 and 2023, we saw really nice growth net of attrition. Inactive partners as well as active programs in fact, 2022, and 2023, where some of our highest growth years in terms of number of new licenses.

Brian: Inactive partners as well as active programs in fact, 2022, and 2023, where some of our highest growth years in terms of number of new licenses.

In some ways we can parse out the various elements of what's driving that growth right. We were building our business development team through the year last year. We had some nice visibility for the platform really driven by increased investment in innovation and launching new technologies as well as nice headlines from partners who were progressing nicely through the clinic. So I think all of those things play a role in the growth that we're seeing. It is clear that the industry as a whole appears to be off to a good start this year, especially when you compare it to 2022 and 2023 and we think that really does position our technology quite well given the level of validation and visibility and momentum that we're building out. So hopefully that gives you a little more color.

Visibility for the platform really driven by. Increased investment in innovation and launching new technologies as well as nice headlines from partners who were. Progressing nicely through the clinic, so I think all of those things. They play a role in. And the growth that we're seeing it is clear that the industry as a whole appears to be off to a good start this year, especially when you compare it to 2022 and 2023 and we think that really does. Does it change our technology quite well given the level of validation. And visibility and momentum that we're building out so hopefully that gives you a little more color.

Increased investment in innovation and launching new technologies as well as nice headlines from partners who were. Progressing nicely through the clinic, so I think all of those things. They play a role in. And the growth that we're seeing it is clear that the industry as a whole appears to be off to a good start this year, especially when you compare it to 2022 and 2023 and we think that really does. Does it change our technology quite well given the level of validation. And visibility and momentum that we're building out so hopefully that gives you a little more color.

Progressing nicely through the clinic, so I think all of those things. They play a role in. And the growth that we're seeing it is clear that the industry as a whole appears to be off to a good start this year, especially when you compare it to 2022 and 2023 and we think that really does. Does it change our technology quite well given the level of validation. And visibility and momentum that we're building out so hopefully that gives you a little more color.

They play a role in. And the growth that we're seeing it is clear that the industry as a whole appears to be off to a good start this year, especially when you compare it to 2022 and 2023 and we think that really does. Does it change our technology quite well given the level of validation. And visibility and momentum that we're building out so hopefully that gives you a little more color.

And the growth that we're seeing it is clear that the industry as a whole appears to be off to a good start this year, especially when you compare it to 2022 and 2023 and we think that really does. Does it change our technology quite well given the level of validation. And visibility and momentum that we're building out so hopefully that gives you a little more color.

Does it change our technology quite well given the level of validation. And visibility and momentum that we're building out so hopefully that gives you a little more color.

And visibility and momentum that we're building out so hopefully that gives you a little more color.

Puneet Suda: Yes, that's helpful. And could you talk a little bit about in terms of single domain antibodies, you pointed to a couple of areas where there could be potentially applicable within the context of your prior product launches. Maybe just talk to us about how would you stack the level of interest you're getting here and your expectations for sort of the growth in this technology?

And could you talk a little bit about. In terms of single domain antibodies, you pointed to a couple of areas, where there could be potentially applicable.

In terms of single domain antibodies, you pointed to a couple of areas, where there could be potentially applicable.

Within the context of your prior. Product launches, maybe just talk to us. How would you stack the level of interest you're getting care. And your expectations for sort of the growth in the technology.

Product launches, maybe just talk to us. How would you stack the level of interest you're getting care. And your expectations for sort of the growth in the technology.

How would you stack the level of interest you're getting care. And your expectations for sort of the growth in the technology.

And your expectations for sort of the growth in the technology.

Matt Foehr: Yeah, Puneet. Thanks. In terms of the amount of interest in OmniDab, I really can't recall another technology that we've added on or launched that has had more interest on day one. In fact, really the moment that we launched it we were already when partners knew it was coming, we were already working on antigen for a number of programs. We now have multiple partners leveraging the technology, some of them with multiple programs. And it really is I think a technology launch that was very well timed from a number of perspectives. Obviously these are all discovery stage at this point, but it was really dialogue we've been having with partners over the last couple of years that informed our conviction around the need for a single domain technology like OmniDab that can leverage the chicken host, especially when it's paired with our screening and other technologies that are woven throughout our stack. So yeah, we feel really good about the work that's already going on, the dialogue and the deliverables that are already being provided to partners who were the earliest users that started at the end of last year, and we're excited about how it positions the business.

I really can't recall another technology that we've added on or launched that has had more interest on day. One in fact really the moment that we launched it we were already when partners knew it was coming we were already working on antigen for a number of programs. We now have.

multiple partners leveraging the technology, some of them with multiple programs. And it really is I think a technology launch that was very well timed from a number of perspectives. Obviously these are all discovery stage at this point, but it was really dialogue we've been having with partners over the last couple of years that informed our conviction around the need for a single domain technology like OmniDab that can leverage the chicken host, especially when it's paired with our screening and other technologies that are woven throughout our stack. So yeah, we feel really good about the work that's already going on, the dialogue and the deliverables that are already being provided to partners who were the earliest users that started at the end of last year, and we're excited about how it positions the business.

And and it really is I think technology launch that was very well timed. From from a number of perspectives. Obviously these are all discovery stage at this point, but but it was really dialogue, we've been having with partners over the last couple of years that informed our conviction around the need for a single domain technology like omni Dab that can leverage that chicken. Host. Really when it's paired with our screening and other technologies that are that are woven throughout our stack. So yeah, we feel really good about. The work that's already going on the dialogue and the deliverables that are already being provided to two partners who were. The earliest users that started. At the end of last year, and we're excited about how it positions the business.

From from a number of perspectives. Obviously these are all discovery stage at this point, but but it was really dialogue, we've been having with partners over the last couple of years that informed our conviction around the need for a single domain technology like omni Dab that can leverage that chicken. Host. Really when it's paired with our screening and other technologies that are that are woven throughout our stack. So yeah, we feel really good about. The work that's already going on the dialogue and the deliverables that are already being provided to two partners who were. The earliest users that started. At the end of last year, and we're excited about how it positions the business.

Host. Really when it's paired with our screening and other technologies that are that are woven throughout our stack. So yeah, we feel really good about. The work that's already going on the dialogue and the deliverables that are already being provided to two partners who were. The earliest users that started. At the end of last year, and we're excited about how it positions the business.

Really when it's paired with our screening and other technologies that are that are woven throughout our stack. So yeah, we feel really good about. The work that's already going on the dialogue and the deliverables that are already being provided to two partners who were. The earliest users that started. At the end of last year, and we're excited about how it positions the business.

So yeah, we feel really good about. The work that's already going on the dialogue and the deliverables that are already being provided to two partners who were. The earliest users that started. At the end of last year, and we're excited about how it positions the business.

The work that's already going on the dialogue and the deliverables that are already being provided to two partners who were. The earliest users that started. At the end of last year, and we're excited about how it positions the business.

The earliest users that started. At the end of last year, and we're excited about how it positions the business.

At the end of last year, and we're excited about how it positions the business.

Puneet Suda: Got it. Okay, super helpful. I'll go back into the queue.

Back into the queue.

Operator: Your next question comes from the line of [inaudible] from H C. Wainwright. Your line is now open.

Unknown: Hey, guys. Good afternoon, thanks for taking the question. Before my questions, actually I think it's pretty encouraging at this point having to model both ends of the business from the ligand days really hear the efficiencies that you have in place now and that you don't really need to add employees that much even as your number of programs grow, so that's very nice to hear.

Before my question is actually I think it's pretty encouraging at this point having model both ends of the business from the ligand days really here. Efficiencies that you have in place now and that you don't really need to add. Employees that much even as your number of programs grow so that's very nice to hear.

Efficiencies that you have in place now and that you don't really need to add. Employees that much even as your number of programs grow so that's very nice to hear.

Employees that much even as your number of programs grow so that's very nice to hear.

So my first question, I guess first starting high level, do not to sound well, you're already doing cutting edge technologies with regard to antibody discovery. So you did mentioned it briefly in your prepared comments, but how have you seen the role of AI impacting your technologies, because obviously that's not only just the catch phrase of the day, but increasingly important with regard to these technological breakthroughs?

Not to sound well, you're already doing cutting edge technologies with regard to antibody discovery. So you did mentioned it briefly in your prepared comments, but what how have you seen the role of AI impacting your technologies, because obviously thats not only just the catch rates of the day, but increasingly important. With regard to these technological breakthroughs.

With regard to these technological breakthroughs.

Matt Foehr: Yeah, Joe. Thanks, this is Matt. Obviously, AI and you've known the business for a while, tracked the business for a while. AI, big data management, deep learning, machine learning, these are all areas that we've been involved in and leaning into for quite a while, really the last few years or more. It comes naturally when you're in the sort of cutting edge science world that we're in and it is an area that we've been leaning into much more. Last year or last May we launched OmniDeep, which is our suite of In Silico AI machine learning tool that leverage large multi species databases. We launched that in May of last year, but really many of our partners knew we were in this space long in advance of that. And really what OmniDeep is designed to do is leverage deep learning and really provide the best of our in vivo engineering capabilities and our in cyclical capabilities.

Obviously, AI and <unk> known. Known the business for a while attractive business for a while. AI Big data management deep learning machine learning. These are all areas that we've been involved in and leaning into for quite a while. Really the last few years or more. It comes naturally when you're in the sort of cutting edge science world that we're in. And it is an area that we've been leaning into much more last year or last may we launched omni deep, which is our suite of in silicone AI machine learning.

Known the business for a while attractive business for a while. AI Big data management deep learning machine learning. These are all areas that we've been involved in and leaning into for quite a while. Really the last few years or more. It comes naturally when you're in the sort of cutting edge science world that we're in. And it is an area that we've been leaning into much more last year or last may we launched omni deep, which is our suite of in silicone AI machine learning.

AI Big data management deep learning machine learning. These are all areas that we've been involved in and leaning into for quite a while. Really the last few years or more. It comes naturally when you're in the sort of cutting edge science world that we're in. And it is an area that we've been leaning into much more last year or last may we launched omni deep, which is our suite of in silicone AI machine learning.

Really the last few years or more. It comes naturally when you're in the sort of cutting edge science world that we're in. And it is an area that we've been leaning into much more last year or last may we launched omni deep, which is our suite of in silicone AI machine learning.

It comes naturally when you're in the sort of cutting edge science world that we're in. And it is an area that we've been leaning into much more last year or last may we launched omni deep, which is our suite of in silicone AI machine learning.

And it is an area that we've been leaning into much more last year or last may we launched omni deep, which is our suite of in silicone AI machine learning.

that leverage large multi species databases. We launched that in May of last year, but really many of our partners knew we were in this space long in advance of that. And really what OmniDeep is designed to do is leverage deep learning and really provide the best of our in vivo engineering capabilities and our in cyclical capabilities. So we use high quality input data, we have deep learning models that we presented on at scientific conferences that leverage a variation of auto encoders to really extend insights that we already get from our screening hits to infer function on other untested areas, suggesting new hits, and then putting those through In Silico developability filters. So we really are using AI and leveraging it here and have been for quite a while. It really does offer our partners a new larger scale discovery workflows with big data, allows us to use optimization tools for existing discovery campaigns. It really provides high quality training data if you will 

that leverage large multi species databases. We launched that in May of last year, but really many of our partners knew we were in this space long in advance of that. And really what OmniDeep is designed to do is leverage deep learning and really provide the best of our in vivo engineering capabilities and our in cyclical capabilities.

We launched that in May of last year, but really many of our partners knew we were in this space long in advance of that and really what. Deep is designed to do is leverage deep learning. And really provide the best of our in vivo. Engineering capabilities and are in cyclical capabilities. So we use high quality input data, we have deep learning models that we presented on it at scientific conferences that. On leverage. <unk> auto encoders to really extend insights. That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

Deep is designed to do is leverage deep learning. And really provide the best of our in vivo. Engineering capabilities and are in cyclical capabilities. So we use high quality input data, we have deep learning models that we presented on it at scientific conferences that. On leverage. <unk> auto encoders to really extend insights. That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

And really provide the best of our in vivo. Engineering capabilities and are in cyclical capabilities. So we use high quality input data, we have deep learning models that we presented on it at scientific conferences that. On leverage. <unk> auto encoders to really extend insights. That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

Brian: Engineering capabilities and are in cyclical capabilities. So we use high quality input data, we have deep learning models that we presented on it at scientific conferences that. On leverage. <unk> auto encoders to really extend insights. That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

So we use high quality input data, we have deep learning models that we presented on at scientific conferences that leverage a variation of auto encoders to really extend insights that we already get from our screening hits to infer function on other untested areas, suggesting new hits, and then putting those through In Silico developability filters. So we really are using AI and leveraging it here and have been for quite a while. It really does offer our partners a new larger scale discovery workflows with big data, allows us to use optimization tools for existing discovery campaigns. It really provides high quality training data if you will for a lot of those capabilities that we've built up over time. So hopefully that's helpful to you.

Brian: On leverage. <unk> auto encoders to really extend insights. That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

<unk> auto encoders to really extend insights. That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

That we already get from our screening hits to infer function. On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

On other untested areas, suggesting new hits, and then putting those through and silica developed the ability filters. So we really aren't using AI and leveraging adhere and have been for. For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

For quite a while. It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

It really does offer our partners a new larger scale discovery workflows with with big data allows us to use optimization tools. For existing discovery campaigns. It really provides high quality training data if you will.

For existing discovery campaigns. It really provides high quality training data if you will.

It really provides high quality training data if you will.

for a lot of those capabilities that we've built up over time. So hopefully that's helpful to you. No, it certainly does Matt. I appreciate that color. And I guess my next question and my last question really applies to both the growth in the number of partners that you've been seeing as well as attrition rates. So I guess is there sort of a steady state because you have long term data, not only from the spin out, but even from the times that ligand and from the initial start of OmniAb. Any steady state rates that you're sort of seeing with regard to partner growth? Obviously, we have the charts about the number of partners growing but how that links to the visibility of the Euro BD discussions about how many are mature, the attrition rates, is that sort of standard over time or do you see a lot of volatility and of course I'm using the analogy from back in the day of Captisol where it's really changing from quarter to quarter.

for a lot of those capabilities that we've built up over time. So hopefully that's helpful to you.

Unknown: No, it certainly does Matt. I appreciate that color. And I guess my next question and my last question really applies to both the growth in the number of partners that you've been seeing as well as attrition rates. So I guess is there sort of a steady state because you have long term data, not only from the spin out, but even from the times that ligand and from the initial start of OmniAb. Any steady state rates that you're sort of seeing with regard to partner growth? Obviously, we have the charts about the number of partners growing but how that links to the visibility of the Euro BD discussions about how many are mature, the attrition rates, is that sort of standard over time or do you see a lot of volatility and of course I'm using the analogy from back in the day of Captisol where it's really changing from quarter to quarter.

Yeah. Attrition rates. So I guess is there sort of a steady state because you have long term data not only from the spin out, but even from the times that ligand and from the initial start of omni yet. Any steady state rates that youre sort of seeing with regard to partner growth. Obviously, we have the charts about number of partners growing but. How that links to the visibility of the Euro BD discussions about how many think how many are mature. The attrition rates does that sort of visit standard over time or do you see a lot of volatility and of course some. Using the analogy from back in the day of Captisol, where it's really changing from quarter to quarter.

Attrition rates. So I guess is there sort of a steady state because you have long term data not only from the spin out, but even from the times that ligand and from the initial start of omni yet. Any steady state rates that youre sort of seeing with regard to partner growth. Obviously, we have the charts about number of partners growing but. How that links to the visibility of the Euro BD discussions about how many think how many are mature. The attrition rates does that sort of visit standard over time or do you see a lot of volatility and of course some. Using the analogy from back in the day of Captisol, where it's really changing from quarter to quarter.

Any steady state rates that youre sort of seeing with regard to partner growth. Obviously, we have the charts about number of partners growing but. How that links to the visibility of the Euro BD discussions about how many think how many are mature. The attrition rates does that sort of visit standard over time or do you see a lot of volatility and of course some. Using the analogy from back in the day of Captisol, where it's really changing from quarter to quarter.

How that links to the visibility of the Euro BD discussions about how many think how many are mature. The attrition rates does that sort of visit standard over time or do you see a lot of volatility and of course some. Using the analogy from back in the day of Captisol, where it's really changing from quarter to quarter.

The attrition rates does that sort of visit standard over time or do you see a lot of volatility and of course some. Using the analogy from back in the day of Captisol, where it's really changing from quarter to quarter.

Using the analogy from back in the day of Captisol, where it's really changing from quarter to quarter.

Matt Foehr: Joe look, I mean, we always as you pointed out, we report our numbers net of attrition for active partners, active programs, and active clinical and approved products largely because we find that gives the best clarity on where the business stands and where it's headed. Attrition of course is very natural, very expected in pharmaceutical discovery and development. It can be different stage to stage and as we're building up our experience with programs and our portfolio, there are some interesting insights, but it is I think still early in some ways. I mean, one I will point out is that while time in different phases can vary program to program based on therapy area and the work that's needed, based on a variety of factors, investment profile from the partner, and how many things are done in parallel versus sequentially and things like that you can have at least a difference in face to face. But I'll point out our preclinical section, which is the orange slice in our in our pie charts in the slides, we have a very high hurdle for what we put into preclinical. These are programs that are in pre-IND studies, we've actually not had any attrition in preclinical.

Largely because we find that gives the best. Clarity on where the business stands and where it's headed. <unk> of course is very natural very expected in pharmaceutical discovery and development it can be different. Stage to stage and as we're building up our experience with with programs and our portfolio. There are some interesting insights, but it is I think still early in some ways I mean, one I will point out is that. Well, while time in different phases can vary program to program. Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

Clarity on where the business stands and where it's headed. <unk> of course is very natural very expected in pharmaceutical discovery and development it can be different. Stage to stage and as we're building up our experience with with programs and our portfolio. There are some interesting insights, but it is I think still early in some ways I mean, one I will point out is that. Well, while time in different phases can vary program to program. Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

<unk> of course is very natural very expected in pharmaceutical discovery and development it can be different. Stage to stage and as we're building up our experience with with programs and our portfolio. There are some interesting insights, but it is I think still early in some ways I mean, one I will point out is that. Well, while time in different phases can vary program to program. Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

Stage to stage and as we're building up our experience with with programs and our portfolio. There are some interesting insights, but it is I think still early in some ways I mean, one I will point out is that. Well, while time in different phases can vary program to program. Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

Speaker Change: There are some interesting insights, but it is I think still early in some ways I mean, one I will point out is that. Well, while time in different phases can vary program to program. Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

Well, while time in different phases can vary program to program. Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

Based on. Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

Therapy area and the work Thats needed based on a variety of factors investment profile from the partner. And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

And how many things are done in parallel versus sequentially and things like that you can you can have. At. At least it a difference in face to face, but I'll point out our preclinical.

At. At least it a difference in face to face, but I'll point out our preclinical.

At least it a difference in face to face, but I'll point out our preclinical.

section, which is the orange slice in our in our pie charts in the slides, we have a very high hurdle for what we put into preclinical. These are programs that are in pre-IND studies, we've actually not had any attrition in preclinical. Now it can be different timeframe to timeframe in terms of how long something is in preclinical because if it's in a cancer indication it may move into the clinic more quickly than if it's in a CNS indication or if it's in a metabolic indication or inflammation. So we do see variability in time in the various stages, but differences stage to stage in terms of attrition rates discovery versus preclinical versus clinical.

section, which is the orange slice in our in our pie charts in the slides, we have a very high hurdle for what we put into preclinical. These are programs that are in pre-IND studies, we've actually not had any attrition in preclinical.

Now it can be different timeframe to timeframe in terms of how long something is in preclinical because if it's in a cancer indication it may move into the clinic more quickly than if it's in a CNS indication or if it's in a metabolic indication or inflammation. So we do see variability in time in the various stages, but differences stage to stage in terms of attrition rates discovery versus preclinical versus clinical.

Timeframe to timeframe in terms of how long something is in preclinical because if it's in a cancer indication that may move into the clinic more quickly than if it's in a CNS indication or if it's in a metabolic indication or inflammation. So. We do see variability in time in the various stages, but. Differences stage to stage in terms of attrition rates. Discovery versus preclinical versus clinical.

We do see variability in time in the various stages, but. Differences stage to stage in terms of attrition rates. Discovery versus preclinical versus clinical.

Differences stage to stage in terms of attrition rates. Discovery versus preclinical versus clinical.

Discovery versus preclinical versus clinical.

Unknown: Got it. Very helpful color. Thank you Matt.

Operator: Your next question comes from the line of Steven Willey from Stifel. Your line is now open. 

I'm sorry. Beyond new.

Beyond new.

Our next question comes from the line of Chad Wiatrowski from TD Cowen.

Chad Wiatrowski: Hey guys, how's it going. On the sales rep, what's the size of the salesforce and can you give that geographic mix? I know you mentioned US, Singapore and EU and do all the sales reps focus on the entire suite of transgenic animals, including the newly launched products?

On the sales rep. Yes. What's the size of the Salesforce and can you give that geographic mix I know you mentioned U S. Singapore in EU. And do all the sales reps focused on the entire suite of transgenic animals, including the newly launched products.

Yes. What's the size of the Salesforce and can you give that geographic mix I know you mentioned U S. Singapore in EU. And do all the sales reps focused on the entire suite of transgenic animals, including the newly launched products.

What's the size of the Salesforce and can you give that geographic mix I know you mentioned U S. Singapore in EU. And do all the sales reps focused on the entire suite of transgenic animals, including the newly launched products.

And do all the sales reps focused on the entire suite of transgenic animals, including the newly launched products.

Matt Foehr: Hi, Chad. This is Matt. Thanks for that. Yeah, so we built our business development team of really experienced folks who have a deep scientific foundation as well as business foundation also. So we have a team of BD professionals. Here in the U.S we have a West Coast presence and an East Coast presence and then also coverage of the middle of the U.S. And then we've got a BD professional based in the UK that covers Europe. We also have our alliance team members that are based in Europe as well who support and are involved with our business development efforts. And then our Asia presence is based in Singapore, but covers all of Asia so that's our makeup of our BD team.

On of really. Experienced folks who are. A deep scientific foundation as well as business Foundation also so we have a team of BD professionals here in the U S. We have. West Coast presence. And an east coast presence. And then also coverage of the. The middle of the U S. And then we've got. Our BD professional based in the U K that covers Europe. We also have our alliance team members that are based in Europe, as well, who support and are involved with our business development efforts and then our Asia. <unk> is based in Singapore, but covers all of Asia. So that's our makeup of our BD team.

Experienced folks who are. A deep scientific foundation as well as business Foundation also so we have a team of BD professionals here in the U S. We have. West Coast presence. And an east coast presence. And then also coverage of the. The middle of the U S. And then we've got. Our BD professional based in the U K that covers Europe. We also have our alliance team members that are based in Europe, as well, who support and are involved with our business development efforts and then our Asia.

A deep scientific foundation as well as business Foundation also so we have a team of BD professionals here in the U S. We have. West Coast presence. And an east coast presence. And then also coverage of the. The middle of the U S. And then we've got. Our BD professional based in the U K that covers Europe. We also have our alliance team members that are based in Europe, as well, who support and are involved with our business development efforts and then our Asia.

West Coast presence. And an east coast presence. And then also coverage of the. The middle of the U S. And then we've got. Our BD professional based in the U K that covers Europe. We also have our alliance team members that are based in Europe, as well, who support and are involved with our business development efforts and then our Asia.

And an east coast presence. And then also coverage of the. The middle of the U S. And then we've got. Our BD professional based in the U K that covers Europe. We also have our alliance team members that are based in Europe, as well, who support and are involved with our business development efforts and then our Asia.

And then also coverage of the. The middle of the U S. And then we've got.

Speaker Change: The middle of the U S. And then we've got.

And then we've got.

Our BD professional based in the U K that covers Europe. We also have our alliance team members that are based in Europe, as well, who support and are involved with our business development efforts and then our Asia.

<unk> is based in Singapore, but covers all of Asia. So that's our makeup of our BD team.

Chad Wiatrowski: Got it, thanks. And then on [inaudible], does the approval in China of the additional indication or a potential U.S approval give you any type of milestone or are these legacy type large upfront milestones largely cycled through the business after the [inaudible] launch this year?

The additional indication. Or a potential U S approval give you any type of milestone or are these legacy type. Large upfront milestones largely cycled through the business. After these two <unk> this year.

Or a potential U S approval give you any type of milestone or are these legacy type. Large upfront milestones largely cycled through the business. After these two <unk> this year.

Large upfront milestones largely cycled through the business. After these two <unk> this year.

Kurt A. Gustafson: Yes, so specifically for [inaudible] the approval milestones have been hit already, so really the only thing left on that program is to receive royalties. So we're generating small, but steady royalty revenues from China net to the extent that the drug was approved in additional territories, we would hope that that would translate into additional sales, that it would translate into additional royalties for us, but there is sort of no other one time payments that would come to us for milestones for that program.

<unk> been hit already so really the only thing left on <unk>. That program is to receive royalties so. We're generating.

That program is to receive royalties so. We're generating.

We're generating.

Small, but steady royalty revenues from the from China on that to the extent that there were the drug was approved in additional territories. We would hope that that would translate into additional sales that would translate into additional royalties for us, but there is sort of no. Other one time payments that would come from. To us for milestones for that program.

To us for milestones for that program.

Chad Wiakowski: That's helpful. Thanks for the questions guys. 

Sure.

Operator: Your next question comes from the line of Steven Willey from Stifel. Your line is now open.

Steven Willey: Hopefully you guys can hear me now, I apologize for that.

Matt Foehr: We can hear you Steve.

Steven Willey: Perfect. So I know of the six programs that were to enter the clinic this past year. I think five of those included downstream participation on the royalty front Roche asset legacy fully [inaudible] license. Of the active programs in various stages of discovery and development now, what proportion of those include downstream participation on royalty and have you kind of worked through a lot of those fully paid licensing transactions?

Steven Willey: And then what were the six programs to enter the clinic. This past year I think five of those were. Five of those included downstream participation on the royalty front. Roche asset.

This past year I think five of those were. Five of those included downstream participation on the royalty front. Roche asset.

Five of those included downstream participation on the royalty front.

Roche asset.

<unk> legacy. Fully. License. Of the active programs in various stages of discovery and development now. What proportion of those include downstream participation on royalty and have you kind of worked through a lot of those fully IP licensing transactions.

Fully. License. Of the active programs in various stages of discovery and development now. What proportion of those include downstream participation on royalty and have you kind of worked through a lot of those fully IP licensing transactions.

License. Of the active programs in various stages of discovery and development now. What proportion of those include downstream participation on royalty and have you kind of worked through a lot of those fully IP licensing transactions.

Of the active programs in various stages of discovery and development now. What proportion of those include downstream participation on royalty and have you kind of worked through a lot of those fully IP licensing transactions.

Steven Willey: What proportion of those include downstream participation on royalty and have you kind of worked through a lot of those fully IP licensing transactions.

Kurt A. Gustafson: Yeah, so Steve, this is Kurt. I'd take you back to kind of what we talked about at our Research and Technology Day back in November of last year. So only about just a handful of our programs involved something where there was a prepaid license or grandfathered license if you will where we don't have economics. So we said 2% of the entire portfolio that number still is--Don't think we'll update that number every quarter, but it still holds as of today. The vast majority of our programs have had downstream economics. Obviously every program is different but there are very few that have this sort of structure that was a prepaid license. Yeah, and I'll just add a little color there too Steve. The 2%, which as we do new deals that number is getting lower across the portfolio. Those were deals that we inherited if you will not ones we would do today generally. 

Kurt A. Gustafson: Yeah, so Steve, this is Kurt. I'd take you back to kind of what we talked about at our Research and Technology Day back in November of last year. So only about just a handful of our programs involved something where there was a prepaid license or grandfathered license if you will where we don't have economics. So we said 2% of the entire portfolio that number still is--Don't think we'll update that number every quarter, but it still holds as of today. The vast majority of our programs have had downstream economics. Obviously every program is different but there are very few that have this sort of structure that was a prepaid license.

Steven Willey: On our research and technology day cut it back in November of last year, So only about <unk>. Just a handful of our programs. <unk>. Where there was a prepaid license or grandfathered license. If you will where we're not we don't have economic so we said 2% of the entire portfolio that number is still is. Don't think we'll update that number every quarter, but it's still holds as of today. So. The vast majority of our programs have had downstream economics, obviously every program is different but but. There are very few that have this sort of structure that was a prepaid license yeah and I'll just add a little color there too Steve that all of the 2%, which as we do new deals that number is getting lower. Yeah. Across the portfolio those were deals that we inherited. You will not once we would do today generally. You will not once we would do today generally.

Just a handful of our programs. <unk>. Where there was a prepaid license or grandfathered license. If you will where we're not we don't have economic so we said 2% of the entire portfolio that number is still is. Don't think we'll update that number every quarter, but it's still holds as of today. So. The vast majority of our programs have had downstream economics, obviously every program is different but but. There are very few that have this sort of structure that was a prepaid license yeah and I'll just add a little color there too Steve that all of the 2%, which as we do new deals that number is getting lower. Yeah. Across the portfolio those were deals that we inherited. You will not once we would do today generally. You will not once we would do today generally.

<unk>. Where there was a prepaid license or grandfathered license. If you will where we're not we don't have economic so we said 2% of the entire portfolio that number is still is. Don't think we'll update that number every quarter, but it's still holds as of today. So. The vast majority of our programs have had downstream economics, obviously every program is different but but. There are very few that have this sort of structure that was a prepaid license yeah and I'll just add a little color there too Steve that all of the 2%, which as we do new deals that number is getting lower. Yeah. Across the portfolio those were deals that we inherited. You will not once we would do today generally. You will not once we would do today generally.

Where there was a prepaid license or grandfathered license. If you will where we're not we don't have economic so we said 2% of the entire portfolio that number is still is. Don't think we'll update that number every quarter, but it's still holds as of today.

Don't think we'll update that number every quarter, but it's still holds as of today.

So. The vast majority of our programs have had downstream economics, obviously every program is different but but. There are very few that have this sort of structure that was a prepaid license yeah and I'll just add a little color there too Steve that all of the 2%, which as we do new deals that number is getting lower. Yeah. Across the portfolio those were deals that we inherited. You will not once we would do today generally. You will not once we would do today generally.

Steven Willey: The vast majority of our programs have had downstream economics, obviously every program is different but but. There are very few that have this sort of structure that was a prepaid license yeah and I'll just add a little color there too Steve that all of the 2%, which as we do new deals that number is getting lower. Yeah. Across the portfolio those were deals that we inherited. You will not once we would do today generally. You will not once we would do today generally.

There are very few that have this sort of structure that was a prepaid license yeah and I'll just add a little color there too Steve that all of the 2%, which as we do new deals that number is getting lower. Yeah. Across the portfolio those were deals that we inherited. You will not once we would do today generally.

Matt Foehr: Yeah, and I'll just add a little color there too Steve. The 2%, which as we do new deals that number is getting lower across the portfolio. Those were deals that we inherited if you will not ones we would do today generally.

Yeah. Across the portfolio those were deals that we inherited.

Across the portfolio those were deals that we inherited.

You will not once we would do today generally.

Steven Willey: Understood. I had forgotten you guys had shared that back in November. And then Kurt you were kind of referencing expecting substantially lower cash use in '25 year over year relative to '24. I think you've kind of talked about that maybe a little bit on the milestone front, but are there any other drivers there that you guys are thinking about when you think about the 2025 cash number? Is there some kind of royalty component to that? Is there an ion channel partnership component to that? Would just be kind of curious as to whether or not that's just all milestone driven.

Steven Willey: Hi. Forgotten you guys ensure that back in November. And then. Kurt you are kind of referencing of. <unk> substantially lower cash use a 25 year over year relative to 'twenty four I think you've kind of talked about that maybe a little bit on. The milestone front, but is there any. Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

Forgotten you guys ensure that back in November. And then. Kurt you are kind of referencing of. <unk> substantially lower cash use a 25 year over year relative to 'twenty four I think you've kind of talked about that maybe a little bit on. The milestone front, but is there any. Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

And then. Kurt you are kind of referencing of. <unk> substantially lower cash use a 25 year over year relative to 'twenty four I think you've kind of talked about that maybe a little bit on. The milestone front, but is there any. Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

Kurt you are kind of referencing of. <unk> substantially lower cash use a 25 year over year relative to 'twenty four I think you've kind of talked about that maybe a little bit on. The milestone front, but is there any. Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

<unk> substantially lower cash use a 25 year over year relative to 'twenty four I think you've kind of talked about that maybe a little bit on. The milestone front, but is there any. Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

The milestone front, but is there any. Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

Are there any other drivers there that you guys are thinking about. When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

When you think about the 2025 cashews number is is there some kind of royalty component to that is there an io channel partnership component to that would just be kind of curious as to. Whether or not that's just all milestone driven.

Whether or not that's just all milestone driven.

Kurt A. Gustafson: Yes, I think that the vast majority, I talked about the shape of our revenue and sort of in the near to medium term, we think that the vast majority of revenue growth is going to come from milestones as you start looking further out say 3,4,5, years out, I think royalties will start to be a bigger part of the revenue growth story. But yes, in terms of the way we're looking at this and essentially Steve, we just we lay out all of the partner programs and we just sort of estimate what the timelines are and when we get to the kind of 2025 there's just a lot more catalysts in terms of events that we think could potentially happen. We don't know for sure whether they happened but as I kind of talked about we take a probabilitized approach when we look at those but the more events, the more possibilities for additional inflows from milestones. But yes, I mean going back to your basic question, there is nothing else out there, the short term is going to be driven by milestone payments.

Talked about the shape of our revenue and sort of in the near to medium term, we think that the vast majority of revenue growth is going to come from milestones as you start looking further out say 345 years out I think royalties will start to be a bigger part of the revenue growth story.

But yes, in terms of the way we're looking at this and essentially Steve, we just we lay out all of the partner programs and we just sort of estimate what the timelines are and when we get to the kind of 2025 there's just a lot more catalysts in terms of events that we think could potentially happen. We don't know for sure whether they happened but as I kind of talked about we take a probabilitized approach when we look at those but the more events, the more possibilities for additional inflows from milestones. But yes, I mean going back to your basic question, there is nothing else out there, the short term is going to be driven by milestone payments.

But as I kind of talked about we take a probability approach when we look at those and but the more events the more possibilities for additional inflows from milestones, but yes, I mean going back to your basic question. There is nothing sort of nothing else out. There. This is really the short term is going to be driven by milestone payments.

Steven Willey: Okay, I appreciate it. Maybe just lastly, Matt, you had made a comment I think about there being an opportunity for the ion channel, the transport of partnerships with Roche and GSK to become more visible to investors I guess, maybe over the next year or so, is there anything more that you can just add there with respect to just kind of progress that's being made or I guess anything that you can say? I'm sure Roche and GSK are driving the communication part of this.

Maybe just lastly. Matt you had made a comment I think about there being an opportunity for. The ion channel the transport of partnerships with Roche and GSK to become more visible to investors. I guess, maybe over the next year or so. Is there anything more that you can just add there with respect to just kind of progress that's being made or. I guess anything that you can say I'm sure erosion GSK are driving.

Matt you had made a comment I think about there being an opportunity for. The ion channel the transport of partnerships with Roche and GSK to become more visible to investors. I guess, maybe over the next year or so. Is there anything more that you can just add there with respect to just kind of progress that's being made or. I guess anything that you can say I'm sure erosion GSK are driving.

The ion channel the transport of partnerships with Roche and GSK to become more visible to investors. I guess, maybe over the next year or so. Is there anything more that you can just add there with respect to just kind of progress that's being made or. I guess anything that you can say I'm sure erosion GSK are driving.

I guess, maybe over the next year or so. Is there anything more that you can just add there with respect to just kind of progress that's being made or. I guess anything that you can say I'm sure erosion GSK are driving.

Is there anything more that you can just add there with respect to just kind of progress that's being made or. I guess anything that you can say I'm sure erosion GSK are driving.

I guess anything that you can say I'm sure erosion GSK are driving.

Matt Foehr: Yeah, and we've highlighted before that we've got five ion channel programs that are active discovery programs with GSK and Roche. Total milestones for those five programs added up are over $1 billion. They're generally in the neuro degenerative area and other areas where ion channels are critical. We do have a really a rich heritage there in ion channel discovery and screening. They're all discovery stages so  I want to stress that but we are excited about the work that's going on and excited about the progress that we expect to make on those programs this year.

Yeah, Yeah, and we've highlighted before that we've got five. Ion channel programs. That our active discovery programs with GSK and Roche. Total milestones for those five programs added up are over $1 billion there. They are in that you're generally in the neuro degenerative. Area. Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

Ion channel programs. That our active discovery programs with GSK and Roche. Total milestones for those five programs added up are over $1 billion there. They are in that you're generally in the neuro degenerative. Area. Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

That our active discovery programs with GSK and Roche. Total milestones for those five programs added up are over $1 billion there. They are in that you're generally in the neuro degenerative. Area. Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

Total milestones for those five programs added up are over $1 billion there. They are in that you're generally in the neuro degenerative. Area. Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

They are in that you're generally in the neuro degenerative. Area. Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

Area. Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

Yeah, and other areas, where ion channels are critical we do have a really a rich heritage there an ion channel discovery and screening. Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

Theyre all discovery stage, so I want to I want to stress that but we are excited about the work that's going on and excited about the. The progress that we expect to make. On those programs this year.

The progress that we expect to make. On those programs this year.

On those programs this year.

Steven Willey: Understood. Thanks for taking the questions.

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

Unknown: Hi, guys. This is Jack on for Matt. We just have one question. It seems like there was a noted pickup in activity at the end of fiscal '23, has that momentum carried through Q1 or how is the quarter looking so far?

It seems like there was a noted pickup in activity at the end of fiscal 'twenty as that momentum carried through Q1 or how is the quarter looking so far. Okay.

Okay.

Matt Foehr: Yes, Jack, thanks. We'll obviously update on our metrics for Q1 when we report formerly and we obviously interact with partners every day all the time and are always working on deals from a business development perspective, but we also get reports from partners at various points during the quarter, often near the end of the quarter so we will report those numbers when we report likely in the May timeframe for Q1. Okay, thank you. 

Matt Foehr: Yes, Jack, thanks. We'll obviously update on our metrics for Q1 when we report formerly and we obviously interact with partners every day all the time and are always working on deals from a business development perspective, but we also get reports from partners at various points during the quarter, often near the end of the quarter so we will report those numbers when we report likely in the May timeframe for Q1.

Formerly <unk> and obviously, we get we obviously interact with partners every day all the time. And are always working on deals from a business development perspective. But we also get reports from partners at various points during the quarter, often often near the end of the quarter. So we will report those numbers. When we report are likely in the in the May timeframe for Q1. Okay. Thank you.

And are always working on deals from a business development perspective. But we also get reports from partners at various points during the quarter, often often near the end of the quarter. So we will report those numbers. When we report are likely in the in the May timeframe for Q1. Okay. Thank you.

But we also get reports from partners at various points during the quarter, often often near the end of the quarter. So we will report those numbers. When we report are likely in the in the May timeframe for Q1. Okay. Thank you.

Okay. Thank you.

Steve Willey: Okay, thank you.

Operator: Your next question comes from the line of Robyn [inaudible]. Your line is now open.

Unknown: Hi, this is Alex on for Robyn. Hey, Alex. Hey, how's it going. The progress has been really, really great. We're excited to see it. I'm wondering now that the pipeline is more mature, there are more molecules in the clinic at various stages, will anything change with how you approach new partnerships and the deals that you're considering with new partners? I'd like to know if the strategies will change at all now that you're potentially at a different stage [inaudible]. Yeah, Alex. We are extremely I will say mission-focused right on really enabling rapid development of cutting edge drugs for our partners by being focused on licensing drug discovery technologies and that is in our plan. We are highly committed to that plan, it's something that I think our partners really value and we are at a stage now with the growth in the number of partnerships that we've built up

Unknown: Hi, this is Alex on for Robyn. Hey, Alex. Hey, how's it going. The progress has been really, really great. We're excited to see it. I'm wondering now that the pipeline is more mature, there are more molecules in the clinic at various stages, will anything change with how you approach new partnerships and the deals that you're considering with new partners? I'd like to know if the strategies will change at all now that you're potentially at a different stage [inaudible].

Hey, Alex products has been really high. How's it going. <unk> has been really really great. We're excited to see. I'm wondering now that the pipeline is more mature there more molecules in the clinic various stages. Anything changed with how you approach new partnerships and the deals that youre, considering with new partners. The strategies will change at all. Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

How's it going. <unk> has been really really great. We're excited to see. I'm wondering now that the pipeline is more mature there more molecules in the clinic various stages. Anything changed with how you approach new partnerships and the deals that youre, considering with new partners. The strategies will change at all. Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

<unk> has been really really great. We're excited to see. I'm wondering now that the pipeline is more mature there more molecules in the clinic various stages. Anything changed with how you approach new partnerships and the deals that youre, considering with new partners. The strategies will change at all. Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

I'm wondering now that the pipeline is more mature there more molecules in the clinic various stages. Anything changed with how you approach new partnerships and the deals that youre, considering with new partners. The strategies will change at all. Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

Anything changed with how you approach new partnerships and the deals that youre, considering with new partners. The strategies will change at all. Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

The strategies will change at all. Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

Potentially at a different stage in the work for. Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

Extremely I will say mission focused right on on. Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

Matt Foehr: Yeah, Alex. We are extremely I will say mission-focused right on really enabling rapid development of cutting edge drugs for our partners by being focused on licensing drug discovery technologies and that is in our plan. We are highly committed to that plan, it's something that I think our partners really value and we are at a stage now with the growth in the number of partnerships that we've built up that the deep relationships that we have with our partners really inform our conviction and focus around technology investments. So we feel great about our mission, great about the momentum we're building up with partners and we're going to stick with that strategy. That is the right strategy for this business, we hear it all the time from partners, especially some of our newer partners. And I'll point out new big pharma partners, who we added last year who were attracted to our technology because of our clear minded focus on technology development and meeting their needs, not only now but in the future. And so yeah, we feel great about the business that we're building and our ability to execute on it.

Really enabling rapid development of cutting edge drugs for our partners. By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

By being focused on licensing drug discovery technologies, we expect and that is our plan. We are highly committed to that plan. It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

It's something that I think our partners really value. And we are at a stage now with the growth in the number of partnerships that we've built up.

And we are at a stage now with the growth in the number of partnerships that we've built up.

that the deep relationships that we have with our partners really inform our conviction and focus around technology investments. So we feel great about our mission, great about the momentum we're building up with partners and we're going to stick with that strategy. That is the right strategy for this business, we hear it all the time from partners, especially some of our newer partners. And I'll point out new big pharma partners, who we added last year who were attracted to our technology because of our clear minded focus on technology development and meeting their needs, not only now but in the future.

Strategy for this business, we hear it all the time from partners, especially some of our newer partners. And I'll point out new Big Pharma partners, who we added last year. Who were attracted to our technology because of our clear minded focus on technology development and meeting their needs not only now but in the future and so.

And I'll point out new Big Pharma partners, who we added last year. Who were attracted to our technology because of our clear minded focus on technology development and meeting their needs not only now but in the future and so.

Who were attracted to our technology because of our clear minded focus on technology development and meeting their needs not only now but in the future and so.

And so yeah, we feel great about the business that we're building and our ability to execute on it.

And our ability to execute on it.

Unknown: It sounds great. And then another one if I could. We're really excited to hear about all the interest in the OmniDap program and then the new [inaudible] that goes into that. What is the feedback from the partnerships on any other stones left unturned. What kind of tech  investors can see in the future, is there like another stage that you're working on or anything that you can only do about challenges that still needs to be addressed?

But we're really excited to hear about all the interest in the omni that program and then the new scaffolding technicals into that what is the feedback from the partnerships on any other stones left unturned. Teck might. Sir.

Teck might. Sir.

Sir.

investors can see in the future, is there like another stage that you're working on or anything that you can only do about challenges that still needs to be addressed? Look I mean, it's an area that I get very excited about as everyone here will tell you. And we've got a pretty exciting investment plan in new technologies that's built into our plan. We are becoming more and more efficient in terms of rolling out new technologies. That's largely because of investments that we've made and facilities and workflows and things over recent years. I'll just say generally I'm excited about our work around the novel scaffolds area, which is that kind of lower left hand

investors can see in the future, is there like another stage that you're working on or anything that you can only do about challenges that still needs to be addressed?

<unk> that that still needs to be addressed. Yes. Look I mean, it's an area that I get very excited about as everyone here will tell you. And we've got a pretty exciting investment plan in new technologies that that's built into our plan, we are becoming more and more efficient. In terms of rolling out new technologies, Thats, largely because of investments that we've made in. Facilities, and workflows and things over recent years. I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

Steven Willey: Yes. Look I mean, it's an area that I get very excited about as everyone here will tell you. And we've got a pretty exciting investment plan in new technologies that that's built into our plan, we are becoming more and more efficient. In terms of rolling out new technologies, Thats, largely because of investments that we've made in. Facilities, and workflows and things over recent years. I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

Look I mean, it's an area that I get very excited about as everyone here will tell you. And we've got a pretty exciting investment plan in new technologies that that's built into our plan, we are becoming more and more efficient. In terms of rolling out new technologies, Thats, largely because of investments that we've made in. Facilities, and workflows and things over recent years. I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

Matt Foehr: Look I mean, it's an area that I get very excited about as everyone here will tell you. And we've got a pretty exciting investment plan in new technologies that's built into our plan. We are becoming more and more efficient in terms of rolling out new technologies. That's largely because of investments that we've made and facilities and workflows and things over recent years. I'll just say generally I'm excited about our work around the novel scaffolds area, which is that kind of lower left hand area of our technology continuum, also more abilities and work around big data management and things like that that I think will benefit programs and accelerate programs and also some more scalability initiatives around screening and other things. It gets pretty technical pretty fast but we'll be talking more about those things at the major antibody discovery conferences through the year, like PEGS and ADTC, but we're excited about our internal innovation plan.

And we've got a pretty exciting investment plan in new technologies that that's built into our plan, we are becoming more and more efficient. In terms of rolling out new technologies, Thats, largely because of investments that we've made in. Facilities, and workflows and things over recent years. I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

In terms of rolling out new technologies, Thats, largely because of investments that we've made in. Facilities, and workflows and things over recent years. I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

Facilities, and workflows and things over recent years. I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

I'll, just say generally I'm excited about our work around the novel Scaffolds area, which is that you kind of lower left hand.

area of our technology continuum, also more abilities and work around big data management and things like that that I think will benefit programs and accelerate programs and also some more scalability initiatives around screening and other things. It gets pretty technical pretty fast but we'll be talking more about those things at the major antibody discovery conferences through the year, like PEGS and ADTC, but we're excited about our internal innovation plan.

More abilities and work around big data management, and things like that that I think will benefit programs and accelerate programs. And also some more scalability initiatives around screening and other things it gets pretty technical pretty fast, but we'll be talking more about those things. At the major antibody discovery conferences through the year. Like pigs, and ATC, but we're excited about our internal innovation plan.

And also some more scalability initiatives around screening and other things it gets pretty technical pretty fast, but we'll be talking more about those things. At the major antibody discovery conferences through the year. Like pigs, and ATC, but we're excited about our internal innovation plan.

At the major antibody discovery conferences through the year. Like pigs, and ATC, but we're excited about our internal innovation plan.

Like pigs, and ATC, but we're excited about our internal innovation plan.

Unknown: No, that sounds great and I think we're all excited about 2024 and beyond. Thanks so much.

I'm excited about the 'twenty 'twenty four and beyond thanks, so much.

Matt Foehr: Okay, thank you.

Operator: Your next question comes from the line of Conor McNamara from RBC Capital Markets. Your line is now open.

Conor Mcnamara: Hey, guys. Thanks for taking the questions. I appreciate it. Kurt, just for you, I appreciate that color you gave on how your profitability adjusted the program progression throughout the year. If you just think about 2023, and where you were a year ago, how did this year stack up versus where your model would have set? Did financing have any any impact on where you hit versus what you were expecting on the profitability for this year? When we look at the short term, we tend to sort of--when I talk about the probabilistic approach that sort of maybe for future years,

Conor Mcnamara: Hey, guys. Thanks for taking the questions. I appreciate it. Kurt, just for you, I appreciate that color you gave on how your profitability adjusted the program progression throughout the year. If you just think about 2023, and where you were a year ago, how did this year stack up versus where your model would have set? Did financing have any any impact on where you hit versus what you were expecting on the profitability for this year?

Just for you I appreciate that color you gave on how your profitability adjusted. The program progression. Progression throughout the year. If you just think about 2023, and where you were a year ago. Messrs stack up versus where you were. What your model would et cetera. Was it a. Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

The program progression. Progression throughout the year. If you just think about 2023, and where you were a year ago. Messrs stack up versus where you were. What your model would et cetera. Was it a. Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

Progression throughout the year. If you just think about 2023, and where you were a year ago. Messrs stack up versus where you were. What your model would et cetera. Was it a. Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

Messrs stack up versus where you were. What your model would et cetera. Was it a. Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

What your model would et cetera. Was it a. Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

Was it a. Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

Connor McNamara: Good financing have any any any. Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

Connor McNamara: Impact on where you hit versus what you were expecting on the profitability for this year. When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

Kurt A. Gustafson: When we look at the short term, we tend to sort of--when I talk about the probabilistic approach that sort of maybe for future years, for the current year as we kind of set the guidance for example for 2024, we tend to not look at them on a probabilitized basis, we actually sort of decide based on our conversations with partners is it in or out. So it's a little bit different in the short term because we have a little bit more visibility. For example, we'll have partner that's out there making a public statement saying, we expect to start a phase III study or a phase II study in Q3 of this year. So that that makes us sort of say what we're going to slot that in as kind of happening. So I think things were largely as expected. There were one or two programs that partners said we're going to hit in 2023 that got pushed to say the next quarter or something like that, but for the most part I think things were kind of on point.

Connor McNamara: When when we look at the short term, we tend to sort of when I talk about the probability stick approach that sort of maybe for future years.

for the current year as we kind of set the guidance for example for 2024, we tend to not look at them on a probabilitized basis, we actually sort of decide based on our conversations with partners is it in or out. So it's a little bit different in the short term because we have a little bit more visibility. For example, we'll have partner that's out there making a public statement saying, we expect to start a phase III study or a phase II study in Q3 of this year. So that that makes us sort of say what we're going to slot that in as kind of happening. So I think things were largely as expected. There were one or two programs that partners said we're going to hit in 2023 that got pushed to say

for the current year as we kind of set the guidance for example for 2024, we tend to not look at them on a probabilitized basis, we actually sort of decide based on our conversations with partners is it in or out. So it's a little bit different in the short term because we have a little bit more visibility. For example, we'll have partner that's out there making a public statement saying, we expect to start a phase III study or a phase II study in Q3 of this year. So that that makes us sort of say what we're going to slot that in as kind of happening. So I think things were largely as expected.

So it's a little bit different in the short term because we have a little bit more visibility for example. A partner Thats out there, making a public statement, saying, we expect to start a phase III study or a phase III study in Q3 of this year. So that that makes us sort of say, what we're going to slot that in as. Kind of happening so I think things were largely as expected there were one or two programs that. Partners said, we're going to hit in <unk> 2023 that got pushed to say.

A partner Thats out there, making a public statement, saying, we expect to start a phase III study or a phase III study in Q3 of this year. So that that makes us sort of say, what we're going to slot that in as. Kind of happening so I think things were largely as expected there were one or two programs that. Partners said, we're going to hit in <unk> 2023 that got pushed to say.

Kind of happening so I think things were largely as expected there were one or two programs that. Partners said, we're going to hit in <unk> 2023 that got pushed to say.

There were one or two programs that partners said we're going to hit in 2023 that got pushed to say the next quarter or something like that, but for the most part I think things were kind of on point.

Partners said, we're going to hit in <unk> 2023 that got pushed to say.

the next quarter or something like that, but for the most part I think things were kind of on point. Okay. Thanks. And then just from a competitive standpoint, if you were to look at the number of total programs that are either entering the clinic or discovery programs, do you guys have any clarity as to how many of those programs you guys are winning? That market share, how has that evolved over the last several years? Yeah, Conor. There's not a lot of I'll say fulsome data on discovery programs or discovery campaigns out there.

the next quarter or something like that, but for the most part I think things were kind of on point.

But for the most part I think things were kind of on on point. Okay. Thanks, and then just from a competitive standpoint, if you were to look at. The number of total programs that are either entering the clinic or discovery program do you guys have any clarity as to how many of those programs you guys are winning is that. Market share. Has that evolved over the last several years. Yeah, Conor you know theres not a lot of I'll say. Fulsome data on discovery programs or discovery campaigns out there.

Okay. Thanks, and then just from a competitive standpoint, if you were to look at. The number of total programs that are either entering the clinic or discovery program do you guys have any clarity as to how many of those programs you guys are winning is that. Market share. Has that evolved over the last several years. Yeah, Conor you know theres not a lot of I'll say. Fulsome data on discovery programs or discovery campaigns out there.

Okay. Thanks. And then just from a competitive standpoint, if you were to look at the number of total programs that are either entering the clinic or discovery programs, do you guys have any clarity as to how many of those programs you guys are winning? That market share, how has that evolved over the last several years? Yeah, Conor. There's not a lot of I'll say fulsome data on discovery programs or discovery campaigns out there.

Conor Mcnamara: Okay. Thanks. And then just from a competitive standpoint, if you were to look at the number of total programs that are either entering the clinic or discovery programs, do you guys have any clarity as to how many of those programs you guys are winning? That market share, how has that evolved over the last several years?

The number of total programs that are either entering the clinic or discovery program do you guys have any clarity as to how many of those programs you guys are winning is that. Market share. Has that evolved over the last several years. Yeah, Conor you know theres not a lot of I'll say. Fulsome data on discovery programs or discovery campaigns out there.

Market share. Has that evolved over the last several years. Yeah, Conor you know theres not a lot of I'll say. Fulsome data on discovery programs or discovery campaigns out there.

Has that evolved over the last several years. Yeah, Conor you know theres not a lot of I'll say. Fulsome data on discovery programs or discovery campaigns out there.

Yeah, Conor you know theres not a lot of I'll say. Fulsome data on discovery programs or discovery campaigns out there.

Matt Foehr: Yeah, Conor. There's not a lot of I'll say fulsome data on discovery programs or discovery campaigns out there. The one clear thing is that the greenfield here in terms of antibody based discovery and I say that broadly because there is all kinds of interesting and exciting things that are going on in new modalities that are antibody based but sometimes people refer to them as kind of a frankenstein molecules. We're really excited about that in terms of where our technology sits, but there's not really a lot of good data that you can point to on exact market share around discovery campaigns. I will say the green field here is very large and growing so I'll balance it with that. And that's largely driven by a number of factors that are pretty well documented at this point that are attracting more and more sponsors to antibody based modalities, whether that be the better clinical success rates as compared to small molecules or things like dynamics within the IRA or other things that have driven more investment towards towards antibodies, but hard to give you an exact market answer there.

Fulsome data on discovery programs or discovery campaigns out there.

The one clear thing is that the greenfield here in terms of antibody based discovery and I say that broadly because there is all kinds of interesting and exciting things that are going on in new modalities that are antibody based but sometimes people refer to them as kind of a frankenstein molecules. We're really excited about that 

in terms of where our technology sits, but there's not really a lot of good data that you can point to on exact market share around discovery campaigns. I will say the green field here is very large and growing so I'll balance it with that. And that's largely driven by a number of factors that are pretty well documented at this point that are attracting more and more sponsors to antibody based modalities, whether that be the better clinical success rates as compared to small molecules or things like dynamics within the IRA or other things that have driven more investment towards towards antibodies, but hard to give you an exact market answer there.

Market share around discovery campaigns, I will say the Greenfield here is very large and growing so I'll I'll count all balance it with that. And that's largely driven by. A number of factors that are pretty well documented at this point that are attracting more and more sponsors to antibody based modalities, whether that be the better clinical success rates as compared to small molecules or.

And that's largely driven by. A number of factors that are pretty well documented at this point that are attracting more and more sponsors to antibody based modalities, whether that be the better clinical success rates as compared to small molecules or.

A number of factors that are pretty well documented at this point that are attracting more and more sponsors to antibody based modalities, whether that be the better clinical success rates as compared to small molecules or.

Things like dynamics within the IRR or other things that have driven more investment towards towards antibodies, but hard to give you an exact. Market answer there.

Market answer there.

Conor Mcnamara: Got it. Thanks for taking the question guys, I appreciate it. 

Speaker Change: Question Katherine I appreciate it. Yes.

Yes.

Thanks Conor. There are no further questions at this time. Please continue.

Kurt A. Gustafson: Thanks Conor.

Operator: There are no further questions at this time. Please continue.

There are no further questions at this time. Please continue.

Please continue.

Matt Foehr: Great. Thank everyone for joining our call today. We look forward to keeping you updated on our progress and speaking with you when we give an update for next quarter. We'll obviously be at various conferences that we'll be attending this spring, so we'll look forward to seeing investors then. In the meantime, we appreciate your interest in OmniAb and thanks again.

Thank everyone for joining our call today, we look forward to keeping you updated on our progress and speaking with you. When we give an update for next quarter will obviously be at various conferences that. That will be attending this spring so we'll look forward to.

When we give an update for next quarter will obviously be at various conferences that. That will be attending this spring so we'll look forward to.

That will be attending this spring so we'll look forward to.

Seeing investors that in the meantime, we appreciate your interest in <unk> and thanks again.

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

Okay. [music]. Yes.

[music]. Yes.

Yes.