Q3 2026 OmniAb Inc Earnings Call and Business Update

October 30, 2026

Operator: Good morning, and welcome to OmniAb, Inc.'s Q3 2026 financial results and business update conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would like to now turn the call over to Kurt Gustafson, OmniAb, Inc.'s Chief Financial Officer. You may begin now.

Speaker #1: A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would like to now turn the call over to Kurt Gustafson, OmniAb's Inc. Financial Officer, Chief Financial Officer.

Speaker #1: You may begin now.

Kurt Gustafson: Thank you, operator, and good morning, everyone. This is Kurt Gustafson, OmniAb's Chief Financial Officer, and thank you all for joining our Q3 2026 financial results conference call. There are slides to accompany today's prepared remarks, and they are available in the investor section of our website at omniab.com. Before we begin, I would like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any of the 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 the live broadcast, today, 30 October 2026.

Speaker #2: Thank you, operator. And good morning, everyone. This is Kurt Gustafson, OmniAb's Chief Financial Officer, and thank you all for joining our third quarter 2026 financial results conference call.

Speaker #2: There are slides to accompany today's prepared remarks, and they're available in the investor section of our website at omniab.com. Before we begin, I'd like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the Federal Securities Laws.

Speaker #2: These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any of the anticipated results. These forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings.

Speaker #2: Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast today, October 30, 2026. 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.

Kurt Gustafson: 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 this morning is Matt Foehr, OmniAb's President and CEO, and Amaechi Nwachuku, our Chief Operating Officer. During today's call, Matt is going to cover some highlights. Amaechi will provide an update on our xPloration program, and I will go through our financial results and guidance, and then we will open up the call to questions. With that, let me turn the call over to Matt.

Kurt Gustafson: 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 this morning is Matt Foehr, OmniAb's President and CEO, and Amechi Nwachuku, our Chief Operating Officer. During today's call, Matt is going to cover some highlights. Amechi will provide an update on our xPloration program, and I will go through our financial results and guidance, and then we will open up the call to questions. With that, let me turn the call over to Matt.

Speaker #2: Joining me this morning is Matt Foehr, OmniAb's president and CEO. NMHE Nwachuku, our Chief Operating Officer. During today's call, Matt is going to come cover some highlights, NMHE will provide an update on our exploration program, and I'll go through our financial results and guidance.

Speaker #2: And then we'll open the call to questions. And with that, let me turn the call over to Matt.

Matt Foehr: Thanks, Kurt. Good morning, everyone, and thanks for joining our Q3 call. I will start now on slide 4, which includes some highlights from the Q3. Our business here at OmniAb has been designed to benefit from diversified, long-term, and durable revenue streams. We continued to drive strong performance in the Q3 as our highly differentiated technology platforms are facilitating growth in partnerships and progression of programs. We have been and continue to be very active from a licensing perspective, and announced a major new deal in the quarter with Eli Lilly for a novel ion channel program.

Speaker #3: Thanks, Kurt. Good morning, everyone, and thanks for joining our third quarter call. I'll start now on slide number 4, which includes some highlights from the third quarter.

Speaker #3: Our business here at OmniAb has been designed to benefit from diversified long-term and durable revenue streams. We continue to drive strong performance in the third quarter as our highly differentiated technology platforms are facilitating growth and partnerships and progression of programs.

Speaker #3: We have been and continue to be very active from a licensing perspective. And announced a major new deal in the quarter with Eli Lilly for a novel Iron Channel program.

Matt Foehr: We were really pleased to enter into this important new relationship with Lilly, as they are obviously focused on delivering medicines to address major unmet medical needs, and our differentiated expertise and established technologies that specifically relate to ion channels are well-positioned to help facilitate that and drive this new discovery program forward. Under the terms of that license deal, we received an upfront payment and are eligible to receive up to $370 million in research, development, and commercial milestone payments, as well as potential tiered royalties on global net sales. in Q3, we saw increased utilization of our differentiated technologies within our growing ecosystem of partners, and we also saw strong traction with our xPloration platform and steady progress across programs that our partners are advancing through various stages of development.

Speaker #3: We were really pleased to enter into this important new relationship with Lilly, as there obviously focused on delivering medicines to address major unmet medical needs, and our differentiated expertise in established technologies that specifically relate to Iron Channels are well-positioned to help facilitate that and drive this new discovery program forward.

Speaker #3: Under the terms of that license deal, we received an upfront payment, and our eligible-to-receive up to $370 million in research, development, and commercial milestone payments, as well as potential tiered royalties on global net sales.

Speaker #3: In Q3, we saw increased utilization of our differentiated technologies within our growing ecosystem of partners, and we also saw strong traction with our exploration platform and steady progress across programs that our partners are advancing through various stages of development.

Matt Foehr: These themes were front and center at our investor and analyst day that we held earlier this month, and we really appreciate everyone who joined us for that event here in Emeryville and on the video webcast. As highlighted at that event, xPloration, our AI-powered high-throughput single B-cell screening platform, is now available to all potential customers. This creates valuable opportunities for our business, and Amaechi will speak to xPloration in more detail in his section. We also launched OmniTides, our new peptide discovery offering powered by our OmniUltra transgenic chicken. OmniTides is designed to provide an integrated discovery-to-synthesis workflow for partners, with available peptide manufacturing by qualified CROs to generate naturally optimized peptides for a range of growing therapeutic applications. Finally, our continued strong business performance has resulted in yet another raise to our 2026 revenue and cash outlook.

Matt Foehr: These themes were front and center at our investor and analyst day that we held earlier this month, and we really appreciate everyone who joined us for that event here in Emeryville and on the video webcast. As highlighted at that event, xPloration, our AI-powered high-throughput single B-cell screening platform, is now available to all potential customers. This creates valuable opportunities for our business, and Amechi will speak to xPloration in more detail in his section. We also launched OmniTides, our new peptide discovery offering powered by our OmniUltra transgenic chicken. OmniTides is designed to provide an integrated discovery-to-synthesis workflow for partners, with available peptide manufacturing by qualified CROs to generate naturally optimized peptides for a range of growing therapeutic applications. Finally, our continued strong business performance has resulted in yet another raise to our 2026 revenue and cash outlook.

Speaker #3: These themes were front and center at our investor and analyst day that we held earlier this month, and we really appreciate everyone who joined us for that event here in Emeryville and on the video webcast.

Speaker #3: As highlighted at that event, exploration, our AI-powered high-throughput single B-cell screening platform, is now available to all potential customers. This creates valuable opportunities for our business and NMHE will speak to exploration in more detail in his section.

Speaker #3: And we also launched OmniTides, our new peptide discovery offering powered by our OmniUltra transgenic chicken. OmniTides is designed to provide an integrated discovery-to-synthesis workflow for partners, with available peptide manufacturing by qualified CROs to generate naturally optimized peptides for a range of growing therapeutic applications.

Speaker #3: And finally, our continued strong business performance has resulted in yet another raise to our 2026 revenue and cash outlook. Kurt will speak to our updated guidance in greater detail during his portion of the presentation this morning.

Matt Foehr: Kurt will speak to our updated guidance in greater detail during his portion of the presentation this morning. Moving now to slide 5. Our novel technologies here at OmniAb reinforce our position as a key enabling technology licensing partner and support both existing and new partnerships. Novel technologies and our capabilities, as well as our vantage point in the industry, keep us at the forefront of next-generation therapeutics discovery, and we think position us to create meaningful value for our stakeholders. Slide 5 shows our technology platform organized around how we help partners efficiently create, screen, and ultimately deliver novel therapeutics. This quarter, we advanced important elements of the platform, and I mentioned OmniTides, which incorporates in vivo optimization driven by Biological Intelligence™, which is a term we coined several years back.

Speaker #3: Moving now to slide number 5, our novel technologies here at OmniAb reinforce our position as a key enabling technology licensing partner, and support both existing and new partnerships.

Speaker #3: Novel technologies and our capabilities, as well as our vantage point in the industry, keep us at the forefront of next-generation therapeutics discovery and, we think, position us to create meaningful value for our stakeholders.

Speaker #3: Slide 5 shows our technology platform organized around how we help partners efficiently create, screen, and ultimately deliver novel therapeutics. This quarter, we advanced important elements of the platform, and I mentioned OmniTides, which incorporates in vivo optimization driven by biological intelligence, which is a term we coined several years back.

Matt Foehr: OmniTides leverages Biological Intelligence™ early in discovery, and that can support efficient progression to chemical synthesis and ultimately development. Our novel transgenic chicken-based technologies, and specifically OmniChicken and OmniUltra, shown on the left here, continue to attract new partners and drive new programs. Our OmniDeep offering, shown across the bottom of this slide, which is our suite of AI and machine learning tools woven throughout our technology stack, also drives significant value. That is along with the extremely important novel data layers that we have and can generate that can also create substantial business opportunities for us. I will briefly review now some of our metrics, starting with slide 6. At the end of the third quarter, we had 111 active partners, which is a net increase from 110 at the end of the second quarter.

Speaker #3: OmniTides leverages biological intelligence early in discovery and that can support efficient progression to chemical synthesis, and ultimately development. Our novel transgenic chicken-based technologies and specifically OmniDab and OmniUltra shown on the left here, continue to attract new partners and drive new programs.

Speaker #3: Our OmniDeep offering shown across the bottom of this slide which is our suite of AI and machine learning tools woven throughout our technology stack, also drives significant value.

Speaker #3: And that's along with the extremely important novel data layers that we have and can generate that can also create substantial business opportunities for us.

Speaker #3: I'll briefly review now some of our metrics, starting with slide number 6. At the end of the third quarter, we had 111 active partners, which is a net increase from 110 at the end of the second quarter.

Matt Foehr: New licenses in Q3 included Y-mAbs Incorporated and Monash University, and that was partially offset by a single partner attrition event that was triggered by one of our larger partners acquiring one of our smaller ones. We have seen this from time to time and generally see these as positive events for assets that have been discovered with our technologies. We continue to have a nice diversified mix of partners and are proud that now nine of the 10 largest pharmaceutical companies in the world are active partners of OmniAb, which I think demonstrates the quality and the strength of our partner base. Now moving on to slide number seven, you will see here our active programs metric. We ended the quarter with 433 active programs.

Speaker #3: New licenses in Q3 included Yamaya Incorporated and Monash University, and that was partially offset by a single partner attrition event that was triggered by one of our larger partners acquiring one of our smaller ones.

Speaker #3: We've seen this from time to time, and generally see these as positive events for assets that have been discovered with our technologies. We continue to have a nice, diversified mix of partners, and are proud that now 9 of the 10 largest pharmaceutical companies in the world are active partners of OmniAb, which I think demonstrates the quality and the strength of our partner base.

Speaker #3: Now moving on to slide number 7, you'll see here our active programs metric. We ended the quarter with 433 active programs. That's up from 407 at the end of 2025, reflecting 38 additions and 12 terminations so far this year.

Matt Foehr: That is up from 407 at the end of 2025, reflecting 38 additions and 12 terminations so far this year, and we saw a net increase of eight programs in the third quarter alone. Attrition is obviously a normal part of the business as partners refine their pipelines and their investment in R&D priorities. Importantly, more than 98% of our active programs have contracted future economics to OmniAb, and across our portfolio, we have more than $3 billion in total contracted potential milestones, with an average royalty rate of approximately 3.4%. On the clinical front, slide number eight here shows our partners' active clinical programs and approved products. At the end of Q3, there were 34 active clinical programs and approved products that leverage our technologies. We have had four new clinical additions so far in 2026, and we continue to anticipate new clinical entrants in the very near term.

Speaker #3: And we saw a net increase of 8 programs in the third quarter alone. Attrition is obviously a normal part of the business. As partners refine their pipelines and their investment and R&D priorities.

Speaker #3: Importantly, more than 98% of our active programs have contracted future economics to OmniAb, and across our portfolio, we have more than $3 billion in total contracted potential milestones, with an average royalty rate of approximately 3.4%.

Speaker #3: On the clinical front, slide number 8 here, shows our partners' active clinical programs and approved products. At the end of Q3, there were 34 active clinical programs and approved products that leverage our technologies.

Speaker #3: We've had 4 new clinical additions so far in 2026, and we continue to anticipate new clinical entrants in the very near term. These active clinical programs carry approximately 340 million dollars in remaining potential milestones to OmniAb.

Matt Foehr: These active clinical programs carry approximately $340 million in remaining potential milestones to OmniAb. Turning to slide nine, this graphic summarizes the status of our clinical and commercial stage partner pipeline as of 30 September for programs that carry remaining downstream economics to OmniAb. The placement of each program here on this graphic is based on its most advanced status in any geography, market, or indication. The right-hand side of this slide continues to include what some of our partners view as important potential first-in-class or best-in-class medicines, and I will review some of those when I cover the next slide. I also note that subsequent to the end of Q3, just last week actually, batoclimab, which is shown here on slide number nine in the registration column in blue, received approval in China for the treatment of generalized myasthenia gravis in adult patients who are anti-acetylcholine receptor antibody positive.

Speaker #3: Turning to slide 9, this graphic summarizes the status of our clinical and commercial stage partner pipeline as of September 30th, for programs that carry remaining downstream economics to OmniAb.

Speaker #3: The placement of each program here on this graphic is based on its most advanced status in any geography, market, or indication. The right-hand side of this slide continues to include what some of our partners view as important potential first-in-class or best-in-class medicines, and I'll review some of those when I cover the next slide.

Speaker #3: I also note that subsequent to the end of Q3, just last week, actually, Bada Climab, which is shown here on slide number 9 in the registration column in blue, received approval in China for the treatment of generalized myasthenia gravis in adult patients who are anti-acetylcholine receptor antibody positive.

Matt Foehr: Batoclimab in China represents the fourth drug approved from our platform, so the next time we show this graphic with a full year 2026 status, one of the changes and updates of progression that investors will see is that batoclimab will slide over to the right into the approved column. Moving now onto slide 10, which calls out a few recent partner program developments. The three programs starting from the left of this slide, IMVT-1402, TEV-'408, and precemtabart tocentecan, all are being described as potential pipeline-in-a-product type assets with either first-in-class or best-in-class potential. These are programs that are going after indications with substantial unmet medical needs, with partners who are highly committed to rapid advancement. Also highlighted on this slide, on the right side, you will see here the approval update related to batoclimab in China that I mentioned earlier.

Speaker #3: Bada Climab in China represents the fourth drug approved from our platform, so the next time we show this graphic with a full year 2026 status, one of the changes and updates of progression that investors will see is that Bada Climab will slide over to the right into the approved column.

Speaker #3: Moving now on to slide 10, which calls out a few recent partner program developments. The three programs starting from the left of this slide, IMVT 1402, TEV 408, and PreceptaBART to Sentacan, all are being described as potential pipeline in a product type assets, with either first-in-class or best-in-class potential.

Speaker #3: These are programs that are going after indications with substantial unmet medical needs, with partners who are highly committed to rapid advancement. And also highlighted on this slide on the right side, you'll see here the approval update related to Bada Climab in China that I mentioned earlier.

Matt Foehr: Now, wrapping up my section on slide 11, we highlight here what we see as OmniAb's pillars of value. Our differentiated discovery technologies, innovative capabilities, and expanding partnerships, we think position us to drive durable, long-term value for our stakeholders. We have a growing pipeline and broad partnership base that supports substantial contracted downstream milestones and royalties from a diversified basket of promising potential first-in-class and best-in-class programs, while providing us unique industry insights that continue to inform our strategic priorities and our areas of focus. In addition, our expanding suite of innovative discovery technologies, including our chicken-based technologies, drive new partnerships and open additional avenues for licensing value creation, both now and in the future. Further, our differentiated xPloration platform expands our reach and complements our existing discovery technology offerings while adding durable, meaningful revenue streams to the business.

Speaker #3: So now wrapping up my section on slide 11, we highlight here what we see as OmniAb's pillars of value. Our differentiated discovery technologies innovative capabilities and expanding partnerships, we think position us to drive durable, long-term value for our stakeholders.

Speaker #3: We have a growing pipeline and broad partnership base that supports substantial contracted downstream milestones and royalties from a diversified basket of promising potential first-in-class and best-in-class programs, while providing us unique industry insights that continue to inform our strategic priorities and our areas of focus.

Speaker #3: In addition, our expanding suite of innovative discovery technologies, including our chicken-based technologies, drive new partnerships and open additional avenues for licensing value creation both now and in the future.

Speaker #3: Further, our differentiated exploration platform expands our reach and complements our existing discovery technology offerings, while adding durable, meaningful revenue streams to the business. We believe we are now extremely well-positioned to deliver for our stakeholders.

Matt Foehr: We believe we are now extremely well-positioned to deliver for our stakeholders. With that, I'll turn the call over to Amaechi to talk more about xPloration. Amaechi?

Matt Foehr: We believe we are now extremely well-positioned to deliver for our stakeholders. With that, I'll turn the call over to Amechi to talk more about xPloration. Amechi?

Speaker #3: And with that, I'll turn the call over to Amechi to talk more about exploration. Amechi?

Amaechi Nwachuku: Thank you, Matt, and good morning, everyone. As Matt mentioned, we've expanded commercial access to our xPloration platform. This addresses an estimated market opportunity of more than $500 million and potentially creates synergistic opportunities across OmniAb's business lines at a time when the industry is embracing the value of lab automation and big data generation for discovery. xPloration is a novel platform for B-cell screening. The xPloration platform drives value for antibody discovery teams with higher throughput, ease of use, robustness, and lower cost compared with current methods. Since the launch, researchers at big pharma companies, global CROs, and specialty biotech companies have used live demonstrations to understand what the xPloration instrument can do in their workflows. Their feedback has been consistently positive, and that interest is translating into placements. In fact, in Q3, we placed another unit with a top global big pharma.

Amechi Nwachuku: Thank you, Matt, and good morning, everyone. As Matt mentioned, we've expanded commercial access to our xPloration platform. This addresses an estimated market opportunity of more than $500 million and potentially creates synergistic opportunities across OmniAb's business lines at a time when the industry is embracing the value of lab automation and big data generation for discovery. xPloration is a novel platform for B-cell screening. The xPloration platform drives value for antibody discovery teams with higher throughput, ease of use, robustness, and lower cost compared with current methods. Since the launch, researchers at big pharma companies, global CROs, and specialty biotech companies have used live demonstrations to understand what the xPloration instrument can do in their workflows. Their feedback has been consistently positive, and that interest is translating into placements. In fact, in Q3, we placed another unit with a top global big pharma.

Speaker #2: Thank you, Matt. And good morning, everyone. As Matt mentioned, we've expanded commercial access to our exploration platform. This addresses an estimated market opportunity of more than 500 million dollars, and potentially creates synergistic opportunities across OmniAb's business lines at a time when the industry is embracing the value of lab automation and big data generation for discovery.

Speaker #2: Exploration is a novel platform for B-cell screening. The exploration platform drives value for antibody discovery teams with higher throughput, ease of use, robustness, and lower cost compared with current methods.

Speaker #2: Since the launch, researchers at Big Pharma companies, Global CROs, and specialty biotech companies have used live demonstrations to understand what the exploration instrument can do in their workflows.

Speaker #2: Their feedback has been consistently positive, and that interest is translating into placements. In fact, in the third quarter, we placed another unit with a top global Big Pharma.

Amaechi Nwachuku: Our growing qualified sales pipeline and our primary market research support our outlook for the xPloration business. Turning to the business model on slide 14, xPloration is a complete platform with multiple revenue streams. xPloration combines an instrument-led customer relationship with three recurring revenue streams. The instrument is a starting point. Each capital sale establishes a broader and deeper customer relationship and expands the install base that supports future recurring revenue. From there, proprietary chips and other consumables generate high-margin, usage-based revenue with every run. That revenue scales as customers adopt the platform and run more experiments. Software adds another recurring stream. Annual licenses support analysis and data management, create predictable revenue, and can expand value as we add workflows and applications. Service completes the model. Installation training and preventive maintenance support instrument uptime, customer retention, and repeat purchases, typically through multi-year contracts tied to the install base.

Amechi Nwachuku: Our growing qualified sales pipeline and our primary market research support our outlook for the xPloration business. Turning to the business model on slide 14, xPloration is a complete platform with multiple revenue streams. xPloration combines an instrument-led customer relationship with three recurring revenue streams. The instrument is a starting point. Each capital sale establishes a broader and deeper customer relationship and expands the install base that supports future recurring revenue. From there, proprietary chips and other consumables generate high-margin, usage-based revenue with every run. That revenue scales as customers adopt the platform and run more experiments. Software adds another recurring stream. Annual licenses support analysis and data management, create predictable revenue, and can expand value as we add workflows and applications. Service completes the model. Installation training and preventive maintenance support instrument uptime, customer retention, and repeat purchases, typically through multi-year contracts tied to the install base.

Speaker #2: Our growing qualified sales pipeline and our market our primary market research support our outlook for the exploration business. Turning to the business model on slide 14, exploration is a complete platform with multiple revenue streams.

Speaker #2: Exploration combines an instrument-led customer relationship with three recurring revenue streams. The instrument is a starting point. Each capital sale establishes a broader and deeper customer relationship and expands the install base that supports future recurring revenue.

Speaker #2: From there, proprietary chips and other consumables generate high margin usage-based revenue with every run. That revenue scales as customers adopt the platform and run more experiments.

Speaker #2: Software adds another recurring stream. Annual licenses support analysis and data management, create predictable revenue, and can expand value as we add workflows and applications.

Speaker #2: Service completes the model. Installation, training, and preventive maintenance support instrument uptime, customer retention, and repeat purchases. Typically through multi-year contracts tied to the install base.

Amaechi Nwachuku: Together, these revenue streams can create a durable and complementary source of growth for OmniAb. Turning to slide 15, you can see that we expect xPloration revenue in 2026 to be between $2 million and $3 million, and we expect xPloration revenue to double in 2027 and to double again in 2028. Over time, we expect recurring revenue from consumables, software, and service to ramp up and become a long-term growth driver for the xPloration business, such that xPloration delivers durable revenue streams. With that, I will turn the call over to Kurt to discuss our financials. Kurt?

Amechi Nwachuku: Together, these revenue streams can create a durable and complementary source of growth for OmniAb. Turning to slide 15, you can see that we expect xPloration revenue in 2026 to be between $2 million and $3 million, and we expect xPloration revenue to double in 2027 and to double again in 2028. Over time, we expect recurring revenue from consumables, software, and service to ramp up and become a long-term growth driver for the xPloration business, such that xPloration delivers durable revenue streams. With that, I will turn the call over to Kurt to discuss our financials. Kurt?

Speaker #2: Together, these revenue streams can create a durable and complementary source of growth for OmniAb. Turning to slide 15, you can see that we expect exploration revenue in 2026 to be between 2 and 3 million dollars.

Speaker #2: And we expect exploration revenue to double in 2027 and to double again in 2028. Over time, we expect recurring revenue from consumables, software, and service to ramp up and become a long-term growth driver for the exploration business, such that exploration delivers durable revenue streams.

Speaker #2: With that, I'll turn the call over to Kurt to discuss our financials. Kurt?

Kurt Gustafson: Thank you, Amaechi. On slide 17, I will start with revenue. Revenue for Q3 2026 was $4 million compared with $2.2 million in the prior year period, with the increase driven primarily by service and xPloration revenue. Service revenue increased due to work performed on both antibody and ion channel programs. Late last year and earlier this year, we signed new ion channel service agreements that drive some of this increase. One additional note is that we would expect the service revenue from the Lilly collaboration to start contributing in Q4. On slide 18, revenue for the 9-month period was $31.8 million compared with $10.3 million for the same period in 2025, with the increase primarily related to milestone revenue. We have seen great advancement of our partner programs this year, and this has varied from quarter to quarter.

Kurt Gustafson: Thank you, Amechi. On slide 17, I will start with revenue. Revenue for Q3 2026 was $4 million compared with $2.2 million in the prior year period, with the increase driven primarily by service and xPloration revenue. Service revenue increased due to work performed on both antibody and ion channel programs. Late last year and earlier this year, we signed new ion channel service agreements that drive some of this increase. One additional note is that we would expect the service revenue from the Lilly collaboration to start contributing in Q4. On slide 18, revenue for the 9-month period was $31.8 million compared with $10.3 million for the same period in 2025, with the increase primarily related to milestone revenue. We have seen great advancement of our partner programs this year, and this has varied from quarter to quarter.

Speaker #1: Thank you, Amechi. On slide 17, I'll start with revenue. Revenue for the third quarter of 2026 was 4 million dollars, compared with 2.2 million dollars in the prior year period.

Speaker #1: With the increase driven primarily by service and exploration revenue. Service revenue increased due to work performed on both antibody and ion channel programs, and last late last year and earlier this year, we signed new ion channel service agreements that drive some of this increase.

Speaker #1: One additional note is that we would expect the service revenue from the Lilly collaboration to start contributing in the fourth quarter. On slide 18, revenue for the nine-month period was 31.8 million, compared with 10.3 million dollars for the same period in 2025.

Speaker #1: With the increase primarily related to milestone revenue. We've seen great advancement of our partner programs this year, and this has varied from quarter to quarter.

Kurt Gustafson: Last year, milestone revenue was heavily weighted toward the back half of the year, and this year, it is more front-end loaded. Turning to slide 19, you will see our operating expense for the quarter. Total cost and operating expense was $20.4 million in both periods. R&D expense was lower in the current period and was partially offset by a small increase in G&A expense, as well as other operating expense. Remember that we include cost of sales in the other expense category, and part of the increase in the other bucket this quarter is a function of the increased cost of sales associated with higher instrument sales. On slide 20, we have our year-to-date operating expense, which totaled $62.7 million compared with $63.5 million in the prior year period.

Speaker #1: Last year, milestone revenue was heavily weighted toward the back half of the year, and this year, it's more front-end loaded. Turning to slide 19, you'll see our operating expense for the quarter.

Speaker #1: Total costs and operating expense was 20.4 million dollars in both periods. R&D expense was lower in the current period and was partially offset by a small increase in G&A expense as well as other operating expense.

Speaker #1: Remember that we include cost of sales in the other expense category and part of the increase in the other bucket this quarter is a function of the increased cost of sales associated with higher instrument sales.

Speaker #1: On slide 20, we have our year-to-date operating expense, which totaled 62.7 million dollars compared with 63.5 million dollars in the prior year period. The decrease in both R&D and G&A expense reflects the efficiencies that we found in the business that drove costs lower.

Kurt Gustafson: The decrease in both R&D and G&A expense reflects the efficiencies that we found in the business that drove costs lower. These lower operating costs were partially offset by an increase in other expense. Recall that last year, we recorded a gain that had the impact of lowering the operating expense in the prior year period, and earlier this year, we took a non-cash write-off in Q1. These two line items skew the overall operating expense comparisons, which would have shown a much larger decrease had those one-time items not occurred. Slide 21 shows our P&L for the quarter and year to date. I have already walked you through the revenue and operating costs, so I will focus on the bottom line.

Speaker #1: These lower operating costs were partially offset by an increase in other expense. Recall that last year, we recorded a gain that had the impact of lowering the operating expense in the prior year period.

Speaker #1: And earlier this year, we took a non-cash write-off in the first quarter. These two line items skew the overall operating expense comparisons which would have shown a much larger decrease had those one-time items not occurred.

Speaker #1: On slide 21, shows our P&L for the quarter and year-to-date. I've already walked you through the revenue and operating costs, so I'll focus on the bottom line, the net loss for the third quarter was 15.7 million dollars or 12 cents per share.

Kurt Gustafson: The net loss for Q3 was $15.7 million, or $0.12 per share, compared with the net loss of $16.5 million, or $0.14 per share, in the year-ago period. Year to date, the net loss improved to $29.3 million, or $0.23 per share, versus a net loss of $50.6 million, or $0.46 per share, in the prior year period. Slide 22, we have a reconciliation of our GAAP operating expense to our non-GAAP cash costs and operating expense, which removes the major non-cash items of depreciation, share-based compensation, and the amortization of intangibles. We believe this measure is a better indicator of our true operations, and the figures here are fairly similar from period to period. Turning to the balance sheet on slide 23, we ended the quarter with cash and investments of $64.2 million.

Speaker #1: Compared with the net loss of 16.5 million dollars or 14 cents per share in the year-ago period. Year-to-date, the net loss improved to 29.3 million or 23 cents per share versus a net loss of 50.6 million dollars or 46 cents per share in the prior year period.

Speaker #1: Slide 22, we have a reconciliation of our gap operating expense to our non-gap costs cash costs and operating expense which removes the major non-cash items of depreciation, share-based compensation, and the amortization of intangibles.

Speaker #1: We believe this measure is a better indicator of our true operations and the figures here are fairly similar from period to period. Turning to the balance sheet on slide 23, we ended the quarter with cash and investments of 64.2 million dollars.

Kurt Gustafson: You will also notice an increase in deferred revenue. This is a result of the upfront payment that we received from the ion channel agreement we struck in Q3. Deferred revenue is generally amortized over the research terms of the specific agreements. Our updated 2026 financial guidance is on slide 24. We are increasing our revenue and cash guidance based on higher milestone revenue that we have achieved, while decreasing our operating expense guidance based on lower operating costs. I will cover the details on the next slide here. Slide 25, you can see our current guidance relative to some of the past figures. We now expect total revenue to be in the range of $35 to $39 million, which is up from $32 to $36 million previously.

Speaker #1: You'll also notice an increase in deferred revenue. This is a result of the upfront payment that we received from the ion channel agreement we struck in the third quarter.

Speaker #1: Deferred revenue is generally amortized over the research terms of the specific agreements. Our updated 2026 financial guidance is on slide 24. We are increasing our revenue and cash guidance based on higher milestone revenue that we've achieved.

Speaker #1: While decreasing our operating expense guidance based on lower operating costs. I'll cover the details on the next slide here. So slide 25, you can see our current guidance relative to some of the past figures.

Speaker #1: We now expect total revenue to be in the range of 35 to 39 million dollars, which is up from 32 to 36 million dollars previously.

Kurt Gustafson: We now expect costs and operating expenses to be in the range of $83 to $87 million, which is down $1 million from our previous guidance. Similarly, we are bringing our cash costs and operating expense guidance down by $1 million to a range of $50 to $54 million. Regarding our cash projection, we now expect our year-end cash balance to be in the range of $53 to $57 million. We started the year with $54 million in cash, which means from a net cash flow standpoint, we expect the business to be basically break-even for the year. 2026 has been a strong year for us. We have seen great progression from our partners that has driven milestone revenue higher. The xPloration business is off to a good start, and we expect to see continued momentum on that front.

Speaker #1: And we now expect costs and operating expenses to be in the range of 83 to 87 million dollars, which is down 1 million dollars from our previous guidance.

Speaker #1: Similarly, we're bringing our cash costs and operating expense guidance down by 1 million dollars to a range of 50 to 54 million dollars. Regarding our cash projection, we now expect our year-end cash balance to be in the range of 53 to 57 million dollars.

Speaker #1: We started the year with 54 million in cash, which means from a net cash flow standpoint, we expect the business to be basically break-even for the year.

Speaker #1: 2026 has been a strong year for us. We've seen great progression from our partners that has driven milestone revenue higher, the exploration business is off to a good start, and we expect to see continued momentum on that front.

Kurt Gustafson: In addition, we have signed a number of new multi-year ion channel contracts, which has lifted service revenue, and we hope to build on this progress. When you combine these factors with a controlled operating expense base, it sets us up well for the future. With that, I would like to open up the call for questions. Operator?

Speaker #1: In addition, we've signed a number of new multi-year ion channel contracts which has lifted service revenue. And we hope to build on this progress.

Speaker #1: When you combine these factors with a controlled operating expense base, it sets us up well for the future. And with that, I'd like to open up the call for questions.

Speaker #1: Operator?

Operator: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question for optimum sound quality. If you dialed locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Puneet Souda with Leerink Partners. Your line is open. Please go ahead.

Speaker #2: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Speaker #2: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality and if muted locally, please remember to unmute your device.

Speaker #2: Please stand by now while we compile the Q&A roster. Your first question comes from the line of Puneet Sudha with Lyrinc Partners. Your line is open.

Speaker #2: Please go ahead.

Puneet Souda: Yeah. Hi, guys. Thanks for taking the questions here. First one, the collaboration was revenue strong in the quarter, and that is before the Lilly revenue. Just, how much of that is driven by adoption of OmniUltra and other chicken models, and how should we think about the cadence of deferred revenue recognition?

Speaker #1: Yeah, hi guys. Thanks for taking the questions here. First one, I mean, the collaboration was revenue was strong in the quarter and that is before the Lilly revenue.

Speaker #1: So just, you know, how much of that is driven by adoption of OmniUltra and other chicken models and sort of how should we think about the cadence of, you know, deferred revenue recognition?

Matt Foehr: Yeah. Thanks, Puneet. I can just comment generally on the mix, and then Kurt can give any detail I miss. Candidly, it is a mix, right? We have seen that as we launch new technologies, they attract new partners and programs. For chicken-based programs, the partners obviously have to use us for the work, and both OmnidAb and OmniUltra are attracting new partners and driving new service work. We have also, and this goes back a bit, but we had signed some new ion channel deals late last year and earlier this year, so those are contributing to service work as well. As you noted, the Lilly deal was announced in the quarter. We expect that to start contributing in Q4, and that will be a multi-year collaboration with Lilly. Hopefully that gives you the color you need.

Speaker #3: Yeah, thanks, Puneet. I can just comment generally on the mix and then Kurt can give any detail I missed. The candidly, it's a mix, right?

Speaker #3: I mean, we've seen that as we launch new technologies they attract new partners and programs for chicken-based programs the partners obviously have to use us for the work and both OmniDAB and OmniUltra are attracting new partners and driving new service work.

Speaker #3: We've also and this goes back a bit, but we had signed some new ion channel deals late last year and earlier this year. So those are contributing to service work as well.

Speaker #3: And as you noted, the Lilly deal was announced in the quarter. We expect that to start contributing in the fourth quarter and that will be a multi-year collaboration with Lilly.

Speaker #3: So hopefully that gives you the color you need.

Puneet Souda: Got it. Super helpful. On xPloration, you talked about one more placement there. Maybe, could you talk a bit about how the commercial pipeline is shaping up? You have talked about doubling the numbers here. What could drive that even potentially even higher? What are some of the drivers that land, drive it in line? Maybe if you could talk a little bit about the capital side, how you are engaging with the customers, and how should we think about the capital side versus the consumable recurring revenue consumables from xPloration?

Speaker #1: Got it. Super helpful. On exploration. You know, this is you talked about one more placement there. Maybe could you talk a bit about, you know, how the commercial sort of pipeline is shaping up?

Speaker #1: You've talked about doubling the numbers here. You know, what could drive that even potentially even higher? What are some of the drivers that land sort of drive it in line?

Speaker #1: And maybe on the if you could talk a little bit about the capital side, how you're engaging with the customers and how should we think about the capital side versus the consumable recurring revenue recurring revenue consumables from exploration?

Amaechi Nwachuku: Thank you for the question. The starting point for the xPloration platform sales is the capital side. For our customers, we are finding that all of them have different capital budgeting processes, and that is why the pipeline for an instrument sale could be anywhere from 12 to 18 months. We develop that relationship early, and then we work with our customers to place an instrument, and that is what gives us the confidence to be able to project the pipeline and say, "We believe that we will double the business next year and the year after." After that, then the recurring revenue streams kick into place as the customers use the instrument and run different experiments.

Amechi Nwachuku: Thank you for the question. The starting point for the xPloration platform sales is the capital side. For our customers, we are finding that all of them have different capital budgeting processes, and that is why the pipeline for an instrument sale could be anywhere from 12 to 18 months. We develop that relationship early, and then we work with our customers to place an instrument, and that is what gives us the confidence to be able to project the pipeline and say, "We believe that we will double the business next year and the year after." After that, then the recurring revenue streams kick into place as the customers use the instrument and run different experiments.

Speaker #4: Thank you for the question. So the starting point for the exploration platform sales is the capital side. And for our customers, we're finding that all of them have different capital budgeting processes.

Speaker #4: And that's why the pipeline for an instrument sale could be anywhere from 12 to 18 months. And so we developed that relationship early and then we work with our customers to place an instrument.

Speaker #4: And that's what gives us the confidence to be able to project the pipeline and say we believe that we will double the business next year and the year after.

Speaker #4: After that, then the recurring revenue streams take into place as the customers use the instrument and run different experiments.

Puneet Souda: I see. Got it. Thanks for that. Then maybe if I could just ask briefly on batoclimab. How should we think about the royalty contribution there? Should we expect a similar performance versus the other China assets you have seen in past, or should we expect that to be a bit higher? Thank you.

Speaker #1: I see. Got it. Thanks for that. And then maybe if I could, you know, just ask briefly on the ToggleMab. You know, how should we think about the royalty contribution there?

Speaker #1: Should we expect a similar performance versus the other China assets you've seen in past? Or should we expect that to be a bit higher?

Speaker #1: Thank you.

Matt Foehr: Yeah, thanks, Puneet. Yeah, so fresh news late last week, Harbour BioMed announced they had received NMPA approval for batoclimab in China for generalized myasthenia gravis for the set of patients that are anti-acetylcholine receptor antibody positive. As part of that, they said they are looking to launch the drug soon. They were clear about preparing for that. Probably still too early to know what pricing will be, et cetera, and how that will impact the royalty line, but I would just say stay tuned on that.

Speaker #3: Yeah, thanks, Puneet. Yeah, there's a fresh news. Late last week, Harbor Biomed announced they'd received NMPA approval for Bataclamab in China for generalized myasthenia gravis for the set of patients that are anti-acetylcholine receptor antibody positive.

Speaker #3: As part of that, they said they're looking to launch the drug soon. They were, you know, clear about preparing for that. And probably still too early to know what pricing will be etc.

Speaker #3: and how that will impact the royalty line. But I would just say stay tuned on that.

Puneet Souda: Okay. Got it. Super. Congrats on the quarter. Thanks, guys.

Speaker #1: Okay. Got it. Super. And congrats on the quarter. Thanks, guys.

Matt Foehr: Thanks.

Amaechi Nwachuku: Thanks, Puneet.

Amechi Nwachuku: Thanks, Puneet.

Speaker #3: Thanks.

Speaker #4: Thanks, Puneet.

Operator: Your next question comes from the line of Sripriya Devarakonda with Truist Securities. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Srikripa Devarakonda with Truist Securities. Your line is open. Please go ahead.

Speaker #2: Your next question comes from the line of Skrippa Devarekonda. With Truist Securities, your line is open. Please go ahead.

Sripriya Devarakonda: Hey, guys. Thank you so much for taking my question, and congratulations on the progress this quarter. I have a couple of questions. One, with the Teva partnership, the TEV-'408, does the positive celiac study change the expected monetization timeline in any way? What next development decisions could trigger additional milestones? Any color you can provide there, because you have both celiac as well as vitiligo development, would be helpful. I have a follow-up question.

Srikripa Devarakonda: Hey, guys. Thank you so much for taking my question, and congratulations on the progress this quarter. I have a couple of questions. One, with the Teva partnership, the TEV-'408, does the positive celiac study change the expected monetization timeline in any way? What next development decisions could trigger additional milestones? Any color you can provide there, because you have both celiac as well as vitiligo development, would be helpful. I have a follow-up question.

Speaker #5: Hey guys, thank you so much for taking my question and congratulations on the progress this quarter. I have a couple of questions. One with the Teva partnership, the 408.

Speaker #5: Does the positive celiac study change the expected monetization timeline in any way? And what next development decisions could, you know, trigger additional milestones? Any color you can provide there because you have both celiac as well as vitiligo development would be helpful.

Speaker #5: And I have a follow-up question.

Matt Foehr: Sripriya, thanks for the question. We were really pleased to see the data that Teva presented in celiac. From my perspective, really an exquisitely designed trial that I think speaks to the power of that drug and the efficacy of it. So we were happy to see that. They have been pretty transparent in their presentations publicly on the potential they are seeing, potential peak sales just in the celiac indication alone of approximately $1.5 billion to $2 billion. They have highlighted that it has a Fast Track designation, and they are moving that forward aggressively. So, we are really pleased to see those data. Additionally, in vitiligo, Teva has publicly said they see peak sales potential there of approximately $1 billion. They are moving that forward at speed as well.

Matt Foehr: Srikripa, thanks for the question. We were really pleased to see the data that Teva presented in celiac. From my perspective, really an exquisitely designed trial that I think speaks to the power of that drug and the efficacy of it. So we were happy to see that. They have been pretty transparent in their presentations publicly on the potential they are seeing, potential peak sales just in the celiac indication alone of approximately $1.5 billion to $2 billion. They have highlighted that it has a Fast Track designation, and they are moving that forward aggressively. So, we are really pleased to see those data. Additionally, in vitiligo, Teva has publicly said they see peak sales potential there of approximately $1 billion. They are moving that forward at speed as well.

Speaker #3: Yeah, Kripa, thanks. Thanks for the question. Yeah, we were really pleased to see the data that Teva presented in celiac, just from my perspective, really an exquisitely designed trial that I think speaks to the power of that drug and the efficacy of it.

Speaker #3: So we were happy to see that. They've been pretty transparent in their presentations publicly on the potential there seeing potential peak sales just in the celiac indication alone.

Speaker #3: Of approximately 1.5 to 2 billion dollars. They've highlighted that it has a fast track designation and they're moving that forward aggressively. So we were really pleased to see those data additionally in vitiligo Teva has publicly said they see peak sales potential there of approximately a billion dollars.

Speaker #3: They're moving that forward at speed as well. But then in addition to those two indications, there's also been discussion of potential application of TEV 408 in other indications as well.

Matt Foehr: But then in addition to those two indications, there has also been discussion of potential application of TEV-'408 in other indications as well, alopecia areata, eosinophilic esophagitis, and atopic dermatitis. All of those add substantially to the potential patient population that could be impacted by the drug. So, it was great to see those data in celiac, and we are excited for what is to come with that asset.

Speaker #3: Alopecia areata, acinophilic esophagitis. And then atopic dermatitis. All of those add substantially to the potential patient population that could be impacted by the drug.

Speaker #3: So it was great to see those data in celiac and we're excited for what's to come with that asset.

Sripriya Devarakonda: Great. Thank you so much. Yeah, that was good data. Congratulations on that. Maybe a question for Kurt. As you are looking at the next leg of growth, just was wondering how you think about incremental spend that you would need to deliver the next phase of growth. As xPloration scales, do you think the existing base can support the growth that you outlined, or should we expect meaningful investment step-ups in the next year and 2? Thank you.

Srikripa Devarakonda: Great. Thank you so much. Yeah, that was good data. Congratulations on that. Maybe a question for Kurt. As you are looking at the next leg of growth, just was wondering how you think about incremental spend that you would need to deliver the next phase of growth. As xPloration scales, do you think the existing base can support the growth that you outlined, or should we expect meaningful investment step-ups in the next year and 2? Thank you.

Speaker #5: Great. Thank you so much. Yeah, that was good data. Congratulations on that. Maybe a question for Kurt. So as you're looking at the next leg of, you know, growth, just was wondering how you think about incremental spend that you would need to deliver the next phase of growth.

Speaker #5: And as exploration scales, do you think the, you know, existing base can support the growth that you outlined or should we expect meaningful investment step-ups in, you know, the next year and two?

Speaker #5: Thank you.

Kurt Gustafson: Yeah, I think for the core antibody business, we have built a team, and actually, if you have been watching us, we have been able to find efficiencies within that business. We think this business is right-sized to support the partnerships that we have and that we will sign, and the programs that we have and the programs that will grow. So, we do not see a need to add additional infrastructure for that part of the business. I think with xPloration, we are going to continue to watch how that business progresses, and to the extent that there are additional investments that we need to make, we will allocate those, just like we have this year. So this year, we did spend some more money on xPloration. We found savings in other areas to reallocate those resources.

Speaker #4: Yeah, I think for, you know, the core antibody business, we've built a team and actually, you know, if you sort of been watching us, we've been able to find efficiencies within that business and we think this business is right sized for to support the partnerships, you know, that we have and that we will sign and the programs that we have and the programs that will grow.

Speaker #4: So we don't see a need to add, you know, additional infrastructure for that part of the business. I think with exploration, we're going to continue to watch how that business progresses.

Speaker #4: And to the extent that there are additional investments that we need to make, we'll allocate those. Just like we have this year. You know, so this year we did spend some more money on exploration.

Speaker #4: We found savings in other areas to reallocate those resources. And, you know, so we sit down and make judgments on where to deploy resources and deploy dollars where we think we're going to get a nice return.

Kurt Gustafson: We sit down and make judgments on where to deploy resources and deploy dollars where we think we are going to get a nice return. I guess, big picture, I would not expect to see dramatic increases in our operating expense based on our projection of the operations that we have.

Speaker #4: But I guess big picture, I wouldn't expect to see dramatic increases in our operating expense based on sort of our projection of the operations that we have.

Sripriya Devarakonda: Great. Thank you so much.

Srikripa Devarakonda: Great. Thank you so much.

Speaker #5: Great. Great. Thank you so much.

Operator: Your next question comes from the line of Joe Pantginis with H.C. Wainwright. Your line is open. Please go ahead.

Speaker #2: Your next question comes from the line of Jo Pangtinis with HC Wainwright. Your line is open. Please go ahead.

[Analyst] (H.C. Wainwright): Good morning. This is Josh on for Joe. Thanks for taking our question. Since you introduced OmniTides at your investor day, I am curious how partner interest has been there, and are you seeing that interest specifically concentrated around any particular therapeutic applications?

Speaker #6: Good morning. This is Josh on for Jo. Thanks for taking our question. So since you introduced OmniTide that you're investor day, so I'm curious how partner interest has been there and are you seeing that interest specifically concentrated around any particular therapeutic applications?

Matt Foehr: Yeah, Josh. Thanks. Just as background, OmniTides is our discovery to synthesis workflow, and we launched that at our investor day weeks back, powered by our OmniUltra transgenic chicken. The short answer is yes, it absolutely attracts partners, I will say, deep collaborators, and others. There has really been, I will say, a growth, a substantial growth in peptide use, as really driven by the metabolic space, and of course, that is an area where folks are interested. We also see applications outside of metabolic as well, in a variety of formats and modalities. So, we are quite excited about OmniTides and how it diversifies our partner base, opens up our, I will say, call file for our business development and licensing team to new players, and we are seeing that in real time. So, we are really excited about it.

Speaker #3: Yeah, Josh. Thanks. Yeah, so just as background, you know, OmniTide is our discovery to synthesis workflow. And we launched that at our investor day weeks back.

Speaker #3: It's powered by our Omni Ultra transgenic chicken and the short answer is yes. It absolutely attracts partners. I'll say deep collaborators and others. The there's really been I'll say a growth, a substantial growth in peptide use as, you know, really driven by the metabolic space and of course that's an area where folks are interested.

Speaker #3: We also see applications outside of metabolic as well. In a variety of formats and modalities. So we're quite excited about OmniTide and how it diversifies our partner base opens up our I'll say call file for our business development and licensing team to new players.

Speaker #3: And we're seeing that in real time. So we're really excited about it. I think it'll diversify not only the partner base, but also the therapeutic areas that are being pursued with our technologies.

Matt Foehr: I think it will diversify not only the partner base, but also the therapeutic areas that are being pursued with our technologies.

[Analyst] (H.C. Wainwright): Great. With xPloration, just wondering about the customer mix there. Now that you have broader commercialization, what is that mix in terms of smaller biotech, large pharma, CROs?

Speaker #6: Great. And with exploration, just wondering about the customer mix there. So now that you have broader commercialization, if most of that, like what's that mix in terms of smaller biotech, larger large pharma, CROs?

Amaechi Nwachuku: We are seeing interest from all three. Our pipeline and the feedback from the folks who are doing live demonstrations does include feedback from discovery teams, whether they are at large pharma, CRO, small biotech. Obviously, this is a larger capital purchase for customers, so the ability to pay, let us put it that way, does differ depending on which segment they fall into, but we are seeing interest and we are seeing placements with all three groups.

Amechi Nwachuku: We are seeing interest from all three. Our pipeline and the feedback from the folks who are doing live demonstrations does include feedback from discovery teams, whether they are at large pharma, CRO, small biotech. Obviously, this is a larger capital purchase for customers, so the ability to pay, let us put it that way, does differ depending on which segment they fall into, but we are seeing interest and we are seeing placements with all three groups.

Speaker #4: We are seeing interest from all three. So our pipeline and the feedback from the folks who are doing live demonstrations does include feedback from discovery teams, whether they are at large pharma, CRO, small biotech.

Speaker #4: The obviously this is a larger capital purchase for customers and so the ability to pay, let's put it that way, does differ depending on which segment they fall into.

Speaker #4: But we are seeing interest and we're seeing placements with all three groups.

[Analyst] (H.C. Wainwright): Great. Perfect. Thanks for the color.

Speaker #6: All right. Perfect. Thanks for the thanks for the color.

Operator: Your next question comes from the line of Matt Hewitt with Craig-Hallum. Your line is open. Please go ahead.

Speaker #2: Your next question comes from the line of Matt Hewitt with Craig Hallam. Your line is open. Please go ahead.

Matt Hewitt: Good morning, and congratulations on the strong quarter. I am curious if you could kind of give us what the top line, what the milestone contribution would be for the 19 readouts that you expect over the next 15 months. I realize that not all of them are going to progress to the next clinical stage or be commercially approved, but I am just trying to get a sense for what those milestones or what the total milestones could look like to kind of create a bracket for what the milestone contribution could be like over the next, call it, 2 years.

Speaker #1: Good morning and congratulations on the strong quarter. I'm curious if you could kind of give us what the top line, what the milestone contribution would be for the 19 readouts that you expect over the next 15 months.

Speaker #1: I realize that not all of them are going to progress to the next clinical stage or be commercially approved, but I'm just trying to get a sense for what those milestones or what the total milestones could look like to kind of create a bracket for what you know the milestone contribution could be like over the next call of two years.

Matt Foehr: Yeah. Matt, thanks. You are referencing the readouts we highlighted a few weeks back at our analyst event. Yeah, we have an upcoming calendar of, I will say, primary completion of clinical trials by partners that is the busiest we have ever seen, which is great, as we are looking out over the next 18 months. Those readouts, within that pool of programs and partnerships, there is a total, right? Those are within that total of the $340 million of potential milestone payments that we can earn from those programs. So, it is a substantial amount of milestones. Now, every contract is a little bit different in terms of how they are structured and when they pay milestones, but we feel great about that flow of news, that flow of data events, and really the conviction and investment by our partners who are rapidly progressing programs through that were discovered with our technologies.

Speaker #3: Yeah, Matt, thanks. And you're referencing you know the readouts we highlighted a few weeks back at our analyst event. Yeah, we have an upcoming calendar of I'll say primary completion of clinical trials by partners that is the busiest we've ever seen, which is great as we're looking out over the next 18 months.

Speaker #3: Those readouts within that, within that pool of programs and partnerships, there's a total right those are within that total of the 340 million dollars of potential milestone payments that we can earn from those programs.

Speaker #3: So it's a substantial amount of milestones. Now every contract is a little bit different in terms of how they're structured and when they pay milestones.

Speaker #3: But we feel great about that flow of news that flow of data events and really the conviction and investment by our partners who are rapidly progressing programs through that we're discovered with our technologies.

Matt Foehr: I think it says a lot about the value that our technologies create and, I will say, the nature of our partner base and the power of it.

Speaker #3: I think it says a lot about the value that our technologies create and I'll say the nature of our partner base and the power of it.

Matt Hewitt: Got it. Then maybe a question for Amaechi Nwachuku on xPloration. I realize it is still early days, you just placed another system, but given your experience with the first couple that have been out in the field, what are you seeing from a consumable pull-through? Is it kind of where you expected it? Are there some things that you can do to help your customers better utilize the equipment? Just any color that you are learning early on in the launch of xPloration. Thank you.

Matt Hewitt: Got it. Then maybe a question for Amechi Nwachuku on xPloration. I realize it is still early days, you just placed another system, but given your experience with the first couple that have been out in the field, what are you seeing from a consumable pull-through? Is it kind of where you expected it? Are there some things that you can do to help your customers better utilize the equipment? Just any color that you are learning early on in the launch of xPloration. Thank you.

Speaker #1: Got it. And then maybe a question from Michi on exploration. I realize it's still early days. You just placed another system, but given your experience with the first couple that have been out in the field, what are you seeing from a consumable pull through?

Speaker #1: Is it kind of where you expected it? Is there some things that you can do to help your customers better utilize the equipment? Just any color that you're learning early on in the launch of exploration.

Speaker #1: Thank you.

Amaechi Nwachuku: Yeah, thank you for that question. It is early days to be able to tell you that it has stabilized. It is too early to say that. I will say that we invest heavily in working with our customers to make sure that they have a great experience and that they are using the instrument in the way that serves them the best. Obviously, the consumables pull-through will vary, right? It will be different, for example, if it is an academia customer versus if it is a large pharma. The collective picture makes us optimistic and gives us that confidence to be able to say we anticipate that the revenue will double in 2027 and then continue to grow and double again in 2028.

Amechi Nwachuku: Yeah, thank you for that question. It is early days to be able to tell you that it has stabilized. It is too early to say that. I will say that we invest heavily in working with our customers to make sure that they have a great experience and that they are using the instrument in the way that serves them the best. Obviously, the consumables pull-through will vary, right? It will be different, for example, if it is an academia customer versus if it is a large pharma. The collective picture makes us optimistic and gives us that confidence to be able to say we anticipate that the revenue will double in 2027 and then continue to grow and double again in 2028.

Speaker #4: Yeah, thank you for that question. And it is early days, to be able to tell you that it has stabilized. It's too early to say that.

Speaker #4: I will say that we invest heavily in working with our customers to make sure that they have a great experience and that they're using the instrument in the way that serves them the best.

Speaker #4: Obviously, the consumables pull through will vary. Right? It'll be different, for example, if it's an academia customer, versus if it's a large pharma. And the collective picture makes us optimistic and gives us that confidence to be able to say we anticipate that the revenue will double in 2027 and then continue to grow and double again in 2028.

Matt Hewitt: Got it. Thank you.

Speaker #1: Got it. Thank you.

Operator: Your next question comes from the line of Brendan Smith with TD Cowen. Your line is open. Please go ahead.

Speaker #2: Your next question comes from the line of Brendan Smith with TD Cohen. Your line is open. Please go ahead.

Brendan Smith: Great. Thanks for taking the questions, guys. And congrats on the quarter, too. Maybe just one more, actually, on kind of this total revenue mix conversation. I know there's been a few here so far. But I guess just kind of given the recent clinical progress and kind of upcoming progress on the partners, too, can you give us a sense of what that total revenue mix ultimately looks like over the next couple years? I know there's a lot of moving parts, even high level. If we use slide 17 and 18, for example, as a reference, is it fair to assume that milestones remains the biggest bucket kind of through next year? But I guess at what point does that flip to majority royalties? Can that come in 2028, 2029?

Speaker #5: Great. Thanks for taking the questions, guys. And congrats on the quarter too. Maybe just one more actually on kind of the total revenue mix conversation.

Speaker #5: There's been a few here so far. But I guess just kind of given the recent clinical progress and kind of upcoming progress on the partners too, can you give us a sense of what that total revenue mix ultimately looks like over the next couple of years?

Speaker #5: I know there's a lot of moving parts, even high level. Like if we use slide 17 and 18, for example, as a reference, is it fair to assume that you know milestones remains the biggest bucket, kind of through next year, but I guess at what point does that flip to majority royalties?

Speaker #5: Can that come in 28, 29? And then should we expect milestones to start tapering on a dollar basis or kind of keep growing in tandem?

Brendan Smith: Should we expect milestones to start tapering on a dollar basis or kind of keep growing in tandem? Just anything kind of high level on the evolution of that mix would be great.

Speaker #5: Just anything kind of high level on the evolution of that mix would be great.

Kurt Gustafson: Sure. I can take that one, and Matt, maybe if you have additional color, you can. I think you kind of outlined how we see this rolling out, right? For the next couple years, milestones, we would expect, would still be the biggest contributor to our overall revenue stream. The next sort of big product that comes up that I think starts to drive those royalties to be a bigger part of the growth story would be Immunovant's 1402, right? If I look at the forecasts that are out there for that program, looks like that might start in late 2028 and then ramps from there.

Speaker #4: Sure, I can take that one. And Matt, maybe a few have additional color you can. So I think you kind of outlined where how we see this rolling out, right?

Speaker #4: So for the next couple of years, milestones, we would expect would still be the biggest contributor to our overall revenue stream. You know the next sort of big product that comes up that I think starts to drive those royalties to be a bigger part of the growth story would be immune events 14.02, right?

Speaker #4: And so if I look at the forecasts that are out there for that program, you know it looks like that might start in late 2028 and then ramps from there.

Kurt Gustafson: I will say, though, that in terms of the other lines, we did see sort of almost kind of a low point in service revenue last year, and I think you've seen that line item grow, and that, I think, will contribute to the revenue growth. I also think, Amaechi here has talked about what our specific guidance is with xPloration, 2 to 3 this year, and then doubling and then doubling again. I think you're actually going to see contributions from multiple of these revenue lines that will contribute to that overall growth. But I guess the simple answer is, for the next couple of years, yes, we would expect that milestone would be sort of the biggest contributor to the overall revenue picture.

Kurt Gustafson: I will say, though, that in terms of the other lines, we did see sort of almost kind of a low point in service revenue last year, and I think you've seen that line item grow, and that, I think, will contribute to the revenue growth. I also think, Amechi here has talked about what our specific guidance is with xPloration, 2 to 3 this year, and then doubling and then doubling again. I think you're actually going to see contributions from multiple of these revenue lines that will contribute to that overall growth. But I guess the simple answer is, for the next couple of years, yes, we would expect that milestone would be sort of the biggest contributor to the overall revenue picture.

Speaker #4: I will say though that you know in terms of the other lines, we did see sort of a almost kind of a low point in service revenue last year.

Speaker #4: And I think you've seen that line item grow. And that I think will contribute to the revenue growth. And I also think you know Michi here has talked about what our specific guidance is with exploration two to three this year and then doubling and then doubling again.

Speaker #4: So you know I think you're actually going to see contributions from multiple of these revenue lines that will you know contribute to that overall growth.

Speaker #4: But I guess the simple answer is for the next couple of years, yes, we would expect that milestone would be the sort of the biggest contributor to the overall revenue picture.

Matt Foehr: Yeah, I'd only add

Brendan Smith: Got it.

Speaker #3: Yeah, and I'd only add one element to that too, Brendan, which is sort of the value creation with technology licenses. Obviously, we have technologies that represent substantial durable competitive advantage and we can you know we'll continue to do licenses, whether it's our standard tech licensing, you know Kurt referenced the service work where we're doing a lot of work for not only on the traditional antibody side, also on the ion channel screening side.

Matt Foehr: one element to that, too, Brendan, which is sort of the value creation with technology licenses. Obviously, we have technologies that represent a substantial, durable, competitive advantage. We'll continue to do licenses, whether it's our standard tech licensing. Kurt referenced the service work, where we're doing a lot of work for not only on the traditional antibody side, also on the ion channel screening side. We highlighted our entrepreneur enablement licensing as well, which creates other forms of upside, and then, of course, asset-based deals we've done from time to time. In addition to that, we also see opportunities where data layers that we have and can create can create additional opportunities for licensing as well. So, I think we've got a lot of opportunities there that we're really excited about.

Speaker #3: We highlighted our entrepreneur enablement licensing as well, which creates other forms of upside and then of course asset-based deals we've done from time to time.

Speaker #3: And then in addition to that, we also see opportunities where data layers that we have and can create can create additional opportunities for licensing as well.

Speaker #3: So I think we've got you know a lot of opportunities there that we're really excited about.

Brendan Smith: Got it. Super helpful, guys. Thanks.

Speaker #5: Got it. It's super helpful, guys. Thanks.

Kurt Gustafson: Yep. Thank you.

Speaker #4: Yeah, thank you.

Operator: Your next question comes from the line of Mike King from Rodman & Renshaw. Your line is open. Please go ahead.

Speaker #2: Your next question comes from the line of Mike King from Rodman and Renshaw. Your line is open. Please go ahead.

Mike King: Hey. Good morning, guys. Thanks for taking the question, and let me add my congratulations to the great quarter, and thank you for doing our model for us. It's always appreciated. A lot of questions have been asked and answered about the revenue mix, so I just maybe want to dive in a little more specifically. When you guys have a pipeline and a product type of opportunity like TEV-'408, can you help us understand, do each of these types of products have discrete milestones for individual indications, or is it just a pure royalty play, or does it just vary upon the type of agreement you sign with them?

Speaker #6: Hi, good morning guys. Thanks for taking the question. And let me add my congratulations to the great quarter. And thank you for doing our model for us.

Speaker #6: It's always appreciated. You know a lot of questions have been asked and answered about the revenue mix. So I just maybe want to dive in a little more specifically.

Speaker #6: And when you guys have you know a pipeline and a product type of opportunity, like Keva 408, can you help us understand each of these types of products have discrete milestones for individual you know individual indications or is it just a pure royalty play or is it just vary upon the type of agreement you sign with them?

Matt Foehr: Yeah, Mike, thanks for the question. You're right to kind of highlight pipeline and our product assets. As someone who's been deep in the pharmaceutical royalty space for the last 15-plus years, one of the real differentiators of a royalty-bearing asset is when it is a pipeline in a product asset, when partners are pursuing multiple indications, going after multiple areas. Obviously, we do a lot of licensing with an eye towards creating that substantial value for our shareholders with royalties. So these are all things we think about in terms of milestones around approvals in various geographies, clinical starts. Sometimes we do have in our contracts milestones around multiple indications or multiple markets. But there is, I'll say, a variety in our portfolio of partnerships.

Speaker #3: Yeah, Mike, thanks for the question. And you're right to kind of highlight pipeline and a product assets as someone who's been a deep in the pharmaceutical royalty space for the last 15 plus years.

Speaker #3: One of the real differentiators of a royalty-bearing asset is when it is a pipeline in a product asset. When partners are pursuing multiple indications, going after multiple areas, so obviously we do a lot of licensing with an eye towards creating that substantial value for our shareholders with royalties.

Speaker #3: So these are all things we think about in terms of milestones around approvals in various geographies, clinical starts, sometimes we do have in our contracts milestones around multiple indications or multiple markets.

Speaker #3: But there is I'll say a variety in our portfolio of partnerships that there's always a negotiation there and but there are certainly are assets that we have licensed for where we do get milestones based on different sorts of trial starts or different indications.

Matt Foehr: There is always a negotiation there, but there certainly are assets that we have licenses for where we do get milestones based on different trial starts or different indications, label expansions, geography expansion, et cetera. But it is a mix, and I cannot comment on any one specific contract, but we do have those sorts of instances in our portfolio.

Speaker #3: Label expansions, geography expansion, etc. But it is a mix and I can't comment on any one specific contract, but we do have those sorts of instances in our portfolio.

Mike King: Okay. It is deal-specific. That helps. Let me just switch to xPloration for a minute. We have heard these anecdotes from others that there are these AI-powered laboratories that basically run autonomously. Everything from designing an experiment, to ordering reagents, to running the experiments, to spitting out the data, et cetera. I just wonder how much AI you intend to build into xPloration over time, and how you think about customer needs when it comes to integrating with those kind of automated laboratory systems.

Speaker #6: Okay, so it's still specific. That helps. Let me just switch to exploration for a minute. You know we've heard these anecdotes from others that you know there are these AI-powered laboratories that basically run autonomously you know everything from designing an experiment to ordering reagents to running the experiments to spitting out the data, etc.

Speaker #6: I just wonder how much you know AI you intend to build into exploration over time and how you think about customer needs when it comes to integrating with those kind of automated laboratory systems.

Matt Foehr: Yeah, Mike. I will make a comment, just a general high-level comment, and then Amaechi Nwachuku can comment more specifically about how xPloration is leveraged in AI. Just more at a high level, and those that know us well, we are big believers in AI. We see AI as a massive tailwind for the industry.

Matt Foehr: Yeah, Mike. I will make a comment, just a general high-level comment, and then Amechi Nwachuku can comment more specifically about how xPloration is leveraged in AI. Just more at a high level, and those that know us well, we are big believers in AI. We see AI as a massive tailwind for the industry.

Speaker #3: Yeah, Mike, I'll make a comment just a general high-level comment and then Michi can comment more specifically about how exploration is leveraged in AI.

Speaker #3: Just more at a high level and those that know us well, we are big believers in AI. We see AI as a massive tailwind for the industry.

Mike King: Yep

Matt Foehr: and have for many years. Our partners know that about us. We launched our OmniDeep platform many years back. That is our suite of AI tools that are woven throughout our platform. And one of the things that AI needs is high-quality data that is relevant to human therapeutics, and our platform generates exactly that. Our business model is naturally AI-friendly, and I think folks know that about us, right? There has been increased investment around that space, especially in the compute layer. And as discovery becomes more iterative, more data-intensive, we think that is a great thing for the sorts of technologies that we have developed and are developing.

Matt Foehr: And have for many years. Our partners know that about us. We launched our OmniDeep platform many years back. That is our suite of AI tools that are woven throughout our platform. And one of the things that AI needs is high-quality data that is relevant to human therapeutics, and our platform generates exactly that. Our business model is naturally AI-friendly, and I think folks know that about us, right? There has been increased investment around that space, especially in the compute layer. And as discovery becomes more iterative, more data-intensive, we think that is a great thing for the sorts of technologies that we have developed and are developing.

Speaker #3: And have for many years. Our partners know that about us. We launched our OmniDeep platform many years back. That's our suite of AI tools that are woven throughout our platform.

Speaker #3: And one of the things that AI needs is high-quality data. That's relevant to human therapeutics. And our platform generates exactly that in our business model is naturally AI-friendly.

Speaker #3: And I think folks know that about us, right? There's been increased investment around that space, especially in the compute layer. And as discovery becomes more iterative, more data-intensive, we think that is a great thing for the sorts of technologies that we have developed and are developing.

Matt Foehr: Largely because of the vantage point we have on the industry, we've got a lot of conviction around that, I think positions us extremely well, not only for our transgenic animals that can create these massive data layers that are relevant, highly relevant to novel drug discovery, but also for xPloration as well. I'll kind of turn it over to Amaechi, let him talk a little bit more about that.

Speaker #3: And largely because of the advantage point we have on the industry, we kind of have we've got a lot of conviction around that. And I think positions us extremely well, not only for our transgenic animals, that can create these massive data layers that are relevant highly relevant to novel drug discovery, but also for exploration as well.

Speaker #3: And I'll kind of turn it over to Michi, let him talk a little bit more about that.

Amaechi Nwachuku: Thank you, Matt. I think you covered it quite well. To add on to the specifics of xPloration, because it's rapid, because it's super easy to use and robust, and because it's high throughput, it can potentially fit in so well for AI-enabled discovery workflows. We absolutely seek to make it available for those folks and to have them leverage these benefits of xPloration for them.

Amechi Nwachuku: Thank you, Matt. I think you covered it quite well. To add on to the specifics of xPloration, because it's rapid, because it's super easy to use and robust, and because it's high throughput, it can potentially fit in so well for AI-enabled discovery workflows. We absolutely seek to make it available for those folks and to have them leverage these benefits of xPloration for them.

Speaker #4: Thank you, Matt. I think you covered it quite well, but to add on to the specifics of exploration, right? Because it's rapid, because it's super easy to use and robust, and because it's high throughput, it can potentially fit in so well for AI-enabled discovery workflows.

Speaker #4: And we absolutely seek to make it available for those folks and to have them leverage these benefits of exploration for them.

Mike King: Great. Thanks for taking the questions.

Speaker #6: Great. Thanks for taking the questions.

Amaechi Nwachuku: Thanks, Mike.

Amechi Nwachuku: Thanks, Mike.

Matt Foehr: Thanks, Mike.

Speaker #4: Thanks, Mike.

Speaker #2: Thanks, Mike. Your next question comes from the line of Stephen Willie with Stifel. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Stephen Willey with Stifel. Your line is open. Please go ahead.

[Analyst] (Stifel): Hey, good morning. This is Josh on for Steve. Thanks for taking our questions, and congrats on the quarter. In the instances of this active partner being acquired by a larger partner, what happens to that royalty base that was contracted? I assume it just translates one-to-one, but just looking for any clarity there. Then maybe a quick one for Amaechi on xPloration, just what kind of revenue mix you are seeing from consumables, instrument sales, and kind of maybe remind us what your biggest near and long-term drivers for the business might be. Thanks.

[Analyst] (Stifel): Hey, good morning. This is Josh on for Steve. Thanks for taking our questions, and congrats on the quarter. In the instances of this active partner being acquired by a larger partner, what happens to that royalty base that was contracted? I assume it just translates one-to-one, but just looking for any clarity there. Then maybe a quick one for Amechi on xPloration, just what kind of revenue mix you are seeing from consumables, instrument sales, and kind of maybe remind us what your biggest near and long-term drivers for the business might be. Thanks.

Speaker #5: Hey, good morning. This is Josh Hunter, Steve. Thanks for taking our questions and congrats on the quarter. So in the instances of this active partner being acquired by a larger partner, what happens to that royalty base that was contracted?

Speaker #5: I assume it just translates one-to-one, but just looking for any clarity there. And then maybe a quick one for Michi on exploration, just what kind of revenue mix you're seeing from consumables instrument sales and kind of maybe remind us what your biggest near and long-term drivers for the business might be.

Speaker #5: Thanks.

Matt Foehr: Yeah. Thanks, Josh. In terms of when smaller partners are acquired by larger partners, which we have seen now a few times in recent years, our licenses are structured so that the economics are linked to the asset itself. So that is what survives. We put a lot of thought into how our licenses are structured. The royalties are also linked to the patents that the partners file on the molecules that are discovered with our tech. But the simple answer is, those economics remain for the asset, even if it is acquired by a larger partner who has an existing license.

Speaker #3: Yeah, thanks, Josh. So in terms of when smaller partners are acquired by larger partners, which we've seen now a few times in recent years, our licenses are structured so that the economics are linked to the asset itself.

Speaker #3: So that's what survives. We put a lot of thought into how our licenses are structured. The royalties are also linked to the patents that the partners file on the molecules, that are discovered with our tech.

Speaker #3: But the simple answer is those economics remain for the asset even if it's acquired by a larger partner who has an existing license.

Amaechi Nwachuku: On the xPloration revenue mix question, we are early in the life cycle of xPloration of the platform, so most of our revenue today is coming from instruments placement, that first revenue stream. Over time, potentially we could see the recurring revenue becoming more important, a bigger contributor, as customers use the platform more regularly and as we expand the applications that are available on the platform.

Amechi Nwachuku: On the xPloration revenue mix question, we are early in the life cycle of xPloration of the platform, so most of our revenue today is coming from instruments placement, that first revenue stream. Over time, potentially we could see the recurring revenue becoming more important, a bigger contributor, as customers use the platform more regularly and as we expand the applications that are available on the platform.

Speaker #4: And then on the exploration revenue mix question, we're early in the lifecycle of exploration of the platform. And so most of our revenue today is coming from instruments placement, that first revenue stream.

Speaker #4: And over time, potentially we could see the recurring revenue becoming more important, more a bigger contributor. As customers use the platform more regularly and as we expand the applications that are available on the platform.

[Analyst] (Stifel): Maybe if I could just squeeze in another quick one. I know it is early, like you said, but have you seen any sort of dynamics playing out within the xPloration platform whereby your partner dynamics use this xPloration platform downstream, and that sort of consummates an additional partnership down the line for, I guess, the end product of what the xPloration platform provides you?

Speaker #5: And maybe if I could just squeeze in another quick one. I know it's early, like you said, but have you seen any sort of dynamics been playing out within the exploration platform whereby you're like the partner dynamics use this exploration platform downstream and then that sort of consummates a additional partnership down the line for, I guess, the end product of what the exploration platform provides you?

Amaechi Nwachuku: Yes. xPloration is very synergistic with the rest of our OmniAb business. Obviously, we have, for the last year and a half roughly, been running in the Partner Access Program. Most of our placements have, pretty much all of our placements historically have been with partners, and we are now expanding to general availability. We are finding that feedback loop working really well between the xPloration business and the traditional licensing business. It is very interesting. One of the common refrains we hear from antibody discovery teams when we first place the instrument, after they have learned the basics, is they come back to us and they say, "Oh, what more could we be doing with this platform? How about we try this?" That is when we find ourselves engaged in that scientist-to-scientist collaboration that is quite fulfilling for their teams, our teams, and exciting to be part of.

Amechi Nwachuku: Yes. xPloration is very synergistic with the rest of our OmniAb business. Obviously, we have, for the last year and a half roughly, been running in the Partner Access Program. Most of our placements have, pretty much all of our placements historically have been with partners, and we are now expanding to general availability. We are finding that feedback loop working really well between the xPloration business and the traditional licensing business. It is very interesting. One of the common refrains we hear from antibody discovery teams when we first place the instrument, after they have learned the basics, is they come back to us and they say, "Oh, what more could we be doing with this platform? How about we try this?" That is when we find ourselves engaged in that scientist-to-scientist collaboration that is quite fulfilling for their teams, our teams, and exciting to be part of.

Speaker #4: Yes. So exploration is very synergistic with the rest of our OmniAb business. Obviously, we have for the last year and a half roughly been running in the partner access program.

Speaker #4: So most of our placements have pretty much all of our placements historically have been with partners. And we're now expanding to general availability. And we are finding that feedback loop working really well between the exploration business and the traditional licensing business.

Speaker #4: It's very interesting. One of the common refrains we hear from antibody discovery teams when we first place the instrument, after they've learned the basics, is they come back to us and they say, oh, what more could we be doing with this platform?

Speaker #4: How about we try this? And that's when we find ourselves engaged in that scientist-to-scientist collaboration that's quite fulfilling for their teams, our teams, and exciting to be part of.

[Analyst] (Stifel): Awesome. Thanks for taking the question. Congrats on the quarter.

Speaker #5: Awesome. Thanks for taking the question. Congrats on the quarter.

Amaechi Nwachuku: Yep.

Amechi Nwachuku: Yep.

Speaker #4: Yep.

Matt Foehr: Thanks.

Speaker #2: Thanks. There are no further questions at this time. I will now turn the call back to Matt for OmniAb CEO for closing remarks.

Operator: There are no further questions at this time. I will now turn the call back to Matt Foehr, OmniAb CEO, for closing remarks.

Matt Foehr: Thanks. I would like to thank everyone for joining today's call and for your questions and engagement. I also want to thank our team here at OmniAb for their continued hard work around our innovative platforms and our licensing efforts and their focus on our partners and customers. We are at a really exciting time for the business and for the industry, and we look forward to discussing our Q4 and full year 2026 financial results in a few months. In the meantime, we will be at a number of upcoming investor conferences, including the Stifel Healthcare Conference on 11 November, the Truist BioPharma Symposium on 12 November, and the Craig-Hallum Investor Conference on 17 November. All of those are in New York City. I will also be at the Jefferies Healthcare Conference in London from 16 November to 19 November.

Speaker #6: Thanks. I'd like to thank everyone for joining today's call and for your questions and engagement. I also want to thank our team here at OmniAb for their continued hard work around our innovative platforms and our licensing efforts and their focus on our partners and customers.

Speaker #6: We're at a really exciting time for the business and for the industry. And we look forward to discussing our fourth quarter and full year 2026 financial results in a few months.

Speaker #6: In the meantime, we will be at a number of upcoming investor conferences. Including the Stifel Healthcare Conference on November 11th. The truest biopharma symposium on November the 12th.

Speaker #6: And the Craig Hallam Investor Conference on November 17th. All of those are in New York City. And I'll also be at the Jefferies Healthcare Conference in London from November 16th to the 19th.

Matt Foehr: We look forward to seeing many of you while we are out at those events. That concludes our call today. Thanks again, and have a great morning and a great rest of the day.

Speaker #6: So we look forward to seeing many of you while we are out at those events. And that concludes our call today. Thanks again. And have a great morning and a great rest of the day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.