• Strategic Business Acquisition: The company's primary service involves identifying, evaluating, and executing business combinations, such as mergers or share exchanges, with target companies, particularly within the healthcare industry.
• Public Listing Vehicle: It provides a mechanism for private companies to become publicly traded through a merger with its public shell entity.

Major customers include:

• Astellas Pharma (TYO: 4503)
• Amgen (NASDAQ: AMGN)
• Bristol Myers Squibb (NYSE: BMY)
• Sanofi (NASDAQ: SNY)
• Merck KGaA (ETR: MRK)

1. Reliance on Partner Success and Significant Cash Burn: OmniAb's business model is largely dependent on its partners successfully developing, achieving regulatory approval for, and commercializing therapeutic products derived from OmniAb's antibody discovery platforms. The company lacks direct control over these critical stages of drug development. This dependency, combined with OmniAb's current unprofitability and ongoing high operating expenses relative to its royalty income, results in a substantial cash burn. This financial dynamic may require OmniAb to seek additional capital before late-stage programs can meaningfully contribute to its revenue.

2. Regulatory and Technological Obsolescence Risks to Core Business Model: OmniAb's core technology heavily utilizes proprietary transgenic animals for antibody discovery. A significant risk exists if evolving regulatory landscapes, such as a potential shift by the U.S. Food and Drug Administration (FDA) away from animal trials, were to undermine the foundational aspects of its business model. Additionally, the company faces intense competition from alternative antibody discovery platforms, including rapidly advancing artificial intelligence (AI)-driven technologies, which could necessitate increased research and development spending. Such competition could potentially erode OmniAb's market share and long-term profitability.

3. Intellectual Property Protection: As a technology licensing company within the biotechnology sector, OmniAb's long-term business success is intrinsically tied to its ability to effectively maintain, protect, and defend its intellectual property rights against potential infringement and legal challenges.

1. **Increased Competition from Alternative Public Listing Methods:** As private healthcare companies explore various avenues to go public, including traditional initial public offerings (IPOs) and direct listings, these alternative routes can become more attractive, efficient, or less costly. This trend threatens OmniAb's ability to find and secure a suitable acquisition target by diminishing the pool of potential private companies that might otherwise consider a de-SPAC transaction.

2. **Evolving Regulatory Environment and Diminished Investor Appetite for SPACs:** Increased scrutiny from financial regulators, such as the SEC, regarding SPAC structures, disclosures, and post-merger operations can make the de-SPAC process more complex, expensive, and potentially less appealing for both target companies and investors. Concurrently, a general decline in investor enthusiasm or confidence in the overall SPAC model can lead to higher redemption rates (investors withdrawing their capital before a merger closes) and make it more challenging for OmniAb to secure the necessary capital and shareholder approval for a successful business combination.

OmniAb (NASDAQ: OABI) licenses discovery research platforms to pharmaceutical and biotechnology companies and academic institutions, enabling the discovery of next-generation therapeutics. Their main products and services revolve around their proprietary antibody discovery technology platforms, powered by engineered transgenic animals (e.g., OmniRat®, OmniMouse®, OmniChicken®) and AI/machine learning tools. These platforms facilitate the identification of optimal antibody candidates for human therapeutics, which are then developed into various antibody-based therapeutic modalities by their partners.

Addressable Markets:

• Global Antibody Discovery Services Market: This market, which directly relates to OmniAb's licensing and discovery services, was valued at approximately USD 9.06 billion in 2025 and is projected to reach about USD 22.28 billion by 2035, growing at a compound annual growth rate (CAGR) of 9.42% from 2026 to 2035. Another estimate places the global market at USD 1.90 billion in 2025, projected to grow to USD 3.54 billion by 2030, at a CAGR of 13.3%. The North American region held the largest share of this market, accounting for 36% in 2025.
• Global Antibody Therapeutics Market: This represents the broader market for the therapeutic drugs developed using technologies like OmniAb's. The global antibody therapy market was valued at approximately USD 314.64 billion in 2025 and is expected to reach around USD 951.24 billion by 2034, demonstrating a CAGR of 13.08%. Other estimates suggest the market was over USD 303.82 billion in 2025 and is projected to reach USD 1.04 trillion by 2035, with a CAGR of about 13.1% between 2026 and 2035. North America held a significant share of this market, with approximately 38% in 2024 and an estimated market size of USD 106.36 billion in 2023. The U.S. antibody therapy market alone was estimated at USD 83.71 billion in 2024 and is projected to grow to around USD 265.03 billion by 2034, with a CAGR of 12.22% from 2025 to 2034.

Here are 3-5 expected drivers of future revenue growth for OmniAb (OABI) over the next 2-3 years:

1. Expansion of Partner Network and Active Programs: OmniAb continues to grow its partner base and the number of active programs leveraging its technology. By the end of 2025, the company had collaborated with 107 partners and supported 407 active programs, marking a net increase of 44 programs during the year. More than 98% of these active programs carry future economic agreements, including over $3 billion in total contracted milestone payments and an average royalty rate of 3.4% across its portfolio, indicating a significant pipeline for future revenue generation.
2. Launch and Adoption of New Technology Platforms (OmniUltra and xPloration):
   • OmniUltra: The introduction of OmniUltra, a novel transgenic chicken platform, is anticipated to be a key growth catalyst. This platform, designed for ultra-long CDRH3 on a human antibody framework, is expected to attract new partners, initiate additional programs, and open up opportunities in peptide discovery.
   • xPloration Platform: This platform enables high-throughput single B-cell screening directly in partners' laboratories. It is expected to contribute to revenue growth through increasing adoption and a robust pipeline of interested partners.
3. Progression of Programs and Clinical Pipeline Advancements: The advancement of OmniAb's partnered programs through various development stages triggers milestone payments. In 2025, OmniAb recorded 25 advancement events, with one program reaching registration and 16 moving from discovery to preclinical development. The company currently has 32 active clinical programs and approved products, which hold over $350 million in remaining contracted milestone payments.
4. Scalability of Differentiated Technology Platforms: Management emphasizes that OmniAb's differentiated platforms are highly scalable. This inherent scalability allows the company to efficiently add new programs without compromising operational effectiveness, thereby positioning OmniAb on a sustainable trajectory for future growth as it continues to expand its collaborations.

Share Issuance

• OmniAb completed a private placement in August 2025, issuing approximately 21.25 million shares of common stock for gross proceeds of about $30 million, intended for general corporate purposes.
• In 2024, OmniAb raised $11.4 million in net proceeds through an At-The-Market (ATM) program, with most of the issuance occurring in the third quarter.
• OmniAb became an independent publicly traded company in November 2022 through a spin-off from Ligand Pharmaceuticals and a merger with Avista Public Acquisition Corp. II (APAC), which resulted in the issuance of OmniAb shares to Ligand shareholders and the public.

Inbound Investments

• Upon its formation in November 2022, Avista Capital Partners, the sponsor of APAC, agreed to invest up to $115 million in OmniAb, and Ligand contributed $15 million.
• The business combination that created OmniAb was structured to guarantee a minimum of $130 million in gross cash to the combined company at closing, with OmniAb expecting to have approximately $95 million in cash after redemptions and expenses.
• The private placement in August 2025, which generated approximately $30 million, included participation from new and existing investors, as well as officers and directors.

Capital Expenditures

• In 2025, OmniAb incurred a non-cash impairment charge of $3.9 million primarily related to certain small molecule ion channel property and equipment.
• As of the end of 2025, OmniAb had deployed two xPloration systems, indicating capital allocation towards its technology platforms.