Earnings Call Transcript - OABI Q3 2025

Kurt Gustafson, CFO

Thank you, operator, and good afternoon, everyone. This is Kurt Gustafson, OmniAb's Chief Financial Officer, and thank you all for joining our third quarter 2025 financial results conference call. There are slides to accompany today's prepared remarks, and they're available in the Investors section of our website at omniab.com. Before we begin, I'd like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. These forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings. Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, today, November 4, 2025. Except as required by law, OmniAb undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Joining me this afternoon is Matt Foehr, OmniAb's President and CEO. During today's call, we will provide highlights on the company's business and operations, partner and technology updates as well as our recent financial results and outlook. At the conclusion of the prepared remarks, we'll open the call to questions. And with that, let me turn the call over to Matt.

Matthew Foehr, President and CEO

Thanks, Kurt. Good afternoon, everyone, and thanks for joining our Q3 call. Starting now with Slide #4. We continue to have nice deal flow throughout the third quarter, and the number of new program additions this year is far outpacing last year. Our program adds as of the end of Q3 already equaled the program adds we had in all of 2024. We've also grown and diversified our base of active partners, reaching a record high level, now exceeding 100. We see this as further validation of our differentiated proprietary technology platforms and their proven value to enable the discovery of next-generation therapeutics for our partners. We're building the foundational momentum for our recently launched xPloration partner access program, which is designed to put our high-throughput single B-cell screening platform in the hands of our partners. The xPloration sales funnel continues to grow, generating strong interest and new opportunities for us. And as the latest example of our commitment to pioneering innovations and sector leadership, in December, we'll be launching a brand-new technology to add to our stack. We're excited to share a little preview today of OmniUltra, which is the first transgenic chicken that produces cow-like antibodies with ultra-long CDRH3s. OmniUltra has the potential to open new markets and new business opportunities for us and to expand our reach into enabling the discovery of novel peptide therapeutics. I'll provide more on this technology in a moment. While we continue to grow the number of partners and programs, we also realigned staffing levels in Q3 and further reduced operating expenses to drive efficiencies in our lean yet scalable operating model. In addition, we enhanced our financial flexibility and strengthened our balance sheet with the closing of a $30 million private placement in late August. I want to welcome our new shareholders and thank the existing shareholders who participated in the transaction for their support. Moving to a review of our key business metrics now starting with Slide #5. We ended Q3 with 104 active partners. During the third quarter, we've highlighted that we completed new license agreements with A*Star and the University of Leeds. The distribution of our active partners by type, including discovery, commercial and academic continues to hold steady. And the same holds true for our distribution of partners on a geographic basis with just over half of our partners based here in the U.S. And I note that our international reach has continued to grow as we make a concerted effort to expand and diversify our partnership base. With regard to new partnerships, increasingly, we also think there are innovative ways in which we can create value in a variety of time horizons, leveraging our technologies or assets that come out of our novel technology development and validation work. On Slide 6, the number of Active Programs leveraging our technologies increased to 399 as of the end of Q3. This includes a net addition of 36 programs year-to-date, of which 18 were added during the third quarter as we continued to see strong program addition momentum. During the third quarter, there were 6 programs that were terminated. And as I've said before, and I say often, program attrition is a normal part of our business and will continue to be due to shifts in partner priorities as well as budgetary and technical factors at our partners. The graphics on Slide #7 highlight growth of our post-discovery stage programs that are in our portfolio as well as the advancement of these programs into and through clinical development. The number of programs in the post-discovery stage increased by 15% year-over-year. A number of new programs progressed to the preclinical stage of development. And in Q3, one program moved to the registration phase. These 61 post-discovery stage programs have contracted remaining potential milestones to OmniAb of approximately $1.3 billion, including $700 million from small molecule ion channel programs. Slide 8 shows the number of active clinical programs and approved products, which totaled 32 at the end of Q3. As of September 30, 2 new partner programs had entered the clinic in the year and 2 came out. We are proud to report that subsequent to quarter end, the first OmnidAb -derived program entered into human clinical trials. As we launched the OmnidAb single-domain discovery platform less than 2 years ago, this is a significant milestone for a new technology, especially within such a short period of time. We also received confirmation that another bispecific antibody derived from our rodent platforms entered human clinical trials just last week. We'll talk more about both of those new clinical programs after our partners have disclosed more details publicly. Overall, given our latest discussions with our partners and our line of sight into their work, we see the potential for a total of 5 new entries into clinical development for novel OmniAb-derived programs this year. This is at the lower end of our previous range of projected clinical starts, primarily resulting from select partners simply shifting timing of clinical program initiations into early 2026. Also in regard to clinical programs, I note that we have multiple partners who will be presenting data at the ASH Annual Meeting in early December. So we're looking forward to that as well. Turning now to Slide 9. Here, we've highlighted select recent updates for partner programs that are leveraging our technologies. At the Annual Meeting of the American Thyroid Association, Immunovant presented 6-month durability data from its Graves' disease study showing sustained remissions with batoclimab. Their next-generation candidate, IMVT-1402, is advancing in 2 potentially registrational Phase III trials in Graves' disease with top line results expected in 2027. Moving to the right on this slide at ESMO, Arcus Biosciences reported median overall survival of 26.7 months from its Phase 2 EDGE gastric trial. The study combines domvanalimab with OmniAb-derived zimberelimab and chemotherapy in advanced gastric cancer, clearly reinforcing the potential for this treatment approach. Salubris Bio announced that China's NMPA accepted its NDA for SAL003, which is a recombinant fully human anti-PCSK9 antibody for dyslipidemia. So this program moved from our Phase III bucket to the registration stage in Q3. And lastly, Rondo Therapeutics abstract on its first-in-class CD28 and Nectin-4 bispecific antibody was accepted for presentation at the Society for Immunotherapy of Cancer Meeting, which is taking place this week. Turning now to Slide 10. Here, we highlight our clinical and commercial stage partner pipeline for Active Programs that carry downstream economics to OmniAb. Placement in this graphic is based on a program's most advanced status in any geography or indication. Our partners continue to advance OmniAb-derived antibodies into and through the clinic. And this latest update shows Salubris Bio's SAL003 moving to the registration phase, as I just mentioned. On Slide #11, I'd like to take just a quick moment to highlight progress with our xPloration partner access program. The early feedback we're getting from partners using the instrument is that xPloration is performing extremely well and that it's driving efficiencies in discovery workflows. We're really pleased with the response so far as xPloration continues to gain traction since its launch in Q2 with a strong demand for lab demos from partners throughout Q3. The efficiency and ease of use of xPloration are significant differentiators. This platform complements our core technology licensing business as we expect xPloration to be accretive to earnings and cash flow in both the short and the long term. As we grow our installed base of instruments, we expect to broaden our revenue channels with recurring single-use consumable sales, annual subscription services for software and maintenance contracts. Ultimately, we're clearly seeing that xPloration deepens engagement with partners, has the potential to drive new program growth and showcases OmniAb's innovation in integrating automation, AI-powered methods and discovery. Turning to Slide #12. Our internal innovation engine continues to strengthen our differentiation, especially with our growing suite of genetically engineered chicken-based discovery platforms. We've had an established history of pioneering the development of advanced discovery technologies that the industry needs. We talk a lot about the advantages that a chicken immunization host presents for novel molecule discovery as about half of all therapeutic targets are more than 90% conserved in mammals. So using a chicken as an immunization host species for discovery can be really important and really valuable in many instances. Our OmniChicken technology shown on the lower left of this slide remains the world's only validated humanized transgenic chicken for antibody discovery. Leveraging the evolutionary distance between birds and mammals, OmniChicken delivers robust immune responses and generates highly diverse antibody repertoires. This platform has become foundational to many of our partners' discovery pipelines. Building upon this, OmniClic incorporated a fixed light chain design, enabling seamless combinations of antibodies for bispecific and multi-specific applications. And OmnidAb, our single-domain antibody framework extends the utility of chicken-derived antibodies into small, stable therapeutic formats and opens up opportunities across a range of modalities. Molecules from OmnidAb are well suited for modular and multi-specific architectures while maintaining advantages in terms of manufacturability and stability. And as I mentioned, OmnidAb was launched less than 2 years ago, and it's attracted a lot of new partners and already has generated a program that has entered the clinic. And now as the latest entry in this stack, in December, we're launching our newest transgenic chicken platform, which we are branding as OmniUltra. Moving to Slide #13. OmniUltra represents the next evolution of discovery tools as it's the first and only transgenic chicken producing ultra-long CDRH3s, which is a structural feature of antibodies typically seen only in cows. Put another way, OmniUltra chickens are engineered to create antibodies with the physical characteristics that are found in cows, but with human features to make them suitable as human therapeutics. These ultra-long CDRH3s are designed to enable antibodies to reach unique heat or recess binding pockets and previously inaccessible epitopes, potentially unveiling therapeutic opportunities beyond the reach of conventional antibodies or conventional modalities. What's especially exciting is the potential ability of these ultra-long CDRH3s to be isolated as novel or autonomous binding fragments known as Pico bodies, which are the smallest known functional antibody fragment, roughly 1/3 the size of an antibody. Pico bodies could open up entirely new therapeutic applications and modalities. Turning now to Slide 14. So OmniUltra is not only expanding the boundaries of antibody discovery technologies, but also potentially opens up entirely new opportunities for us in peptide-based therapeutics. Along with its novel architecture, OmniUltra is engineered for in vivo optimization, allowing for the generation of molecules to essentially be preselected for specificity, affinity and structural stability. This process enhances the discovery of antibodies with unique binding domains with the potential to target previously inaccessible epitopes. And importantly, as I said, OmniUltra is also leverageable for peptide therapeutic discovery. Now peptides are obviously a class of molecules that have seen a substantial increase in attention by the industry, in large part as a result of the GLP-1 drugs that have been so important to patients and to the industry globally. That's led to significant growth and investment around peptide therapeutics from a discovery, development and downstream capacity and infrastructure perspective. And that's part of why we think OmniUltra is really well-timed. Unlike traditional peptide discovery methods, OmniUltra uses a transgenic chicken host to biologically produce optimized structured peptides on a validated scaffold. This capability could establish new classes of biologically derived therapeutics with potential applications across modalities. OmniUltra highlights our team's innovation leadership and extends our platform advantage into new therapeutic spaces, further differentiating our technology platform and reinforcing our long-term growth potential. Slide 15 sets the stage for OmniUltra's formal launch, which is planned to be at the Antibody Engineering & Therapeutics Conference down in San Diego next month. At AET, we have 2 podium presentations and 2 poster presentations. There's a lot more to say about OmniUltra beyond today's little preview. So while at AET, we'll be holding an investor webcast related to the OmniUltra technology, discuss the potential market use and applications and review the potential business impact of this highly innovative and pioneering technology. The tech validation work that we completed with OmniUltra included a broad array of therapeutic targets, and we will touch on that work as well. We'll be announcing details of the webcast as we get closer to the event. But for now, please mark your calendars for Monday, December 15, at 5:00 p.m. Eastern Time. Moving now to Slide 16. We're excited about the prospects for OmniUltra as it significantly increases our potential universe of partners into the peptide discovery space and also obviously opens up new doors and opportunities in the antibody discovery space as well. As most of those who follow us know, our technology license deals generally have several components, including collaboration and service revenue, milestone payments and royalties upon commercialization of a program. I want to highlight that OmniUltra builds on our established transgenic chicken capabilities, which require a service contract as our partners cannot perform the discovery service work on their own. And we think the new OmniUltra platform can drive higher collaboration and service revenue in the near term. And with that, let me turn the call over to Kurt for a discussion of our Q3 financials.

Kurt Gustafson, CFO

Thank you, Matt. So on Slide 18, I'll start with a review of revenue. For the third quarter of 2025, we reported revenue of $2.2 million, and this compares to $4.2 million for the same period in 2024. The decrease was primarily related to a reduction in milestones achieved and lower service revenue. Service revenue declined primarily due to the completion of a couple of small molecule ion channel programs earlier this year. And as a small offset to this decrease, the 2025 third quarter included xPloration revenue derived from the sale of consumables and a modest increase in royalty revenue. On Slide 19, we show our cost and operating expense for the third quarter of 2025, which decreased to $20.4 million from $23.9 million for the prior year period. We saw decreases in both R&D and G&A expenses compared with last year, and this quarter also included a nonrecurring charge of approximately $800,000 related to a headcount reduction we made earlier in the quarter. Turning to Slide 20, I'll focus on a few of the operating expense line items, starting with R&D expense, which decreased to $10.4 million from $13.3 million in the year-ago period, primarily related to lower headcount and stock-based compensation as well as a decrease in external expenses due to the completion of certain ion channel programs earlier this year. G&A expense was $6.8 million for the third quarter of 2025 compared with $7.1 million for the same period in 2024, with the decrease primarily due to lower legal fees and stock-based compensation expense. Net loss for the third quarter of 2025 was $16.5 million, or $0.14 per share compared to a net loss of $16.4 million or $0.16 per share for the same period in 2024. On Slide 21, we have our balance sheet as of September 30, 2025. We ended the quarter with $59.5 million in cash. And as Matt mentioned, during the quarter, we completed a $30 million private placement of common stock, which netted the company $28 million. I'll conclude with Slide 22 with a discussion of our 2025 financial guidance. We've recently received information that a few of the milestones that we were expecting in the second half of 2025 will now be pushed to 2026. We also identified further efficiencies in our operating structure. And as a result, we're updating our guidance for this year. We now expect that 2025 revenue will be between $18 million and $22 million and operating expense will be between $82 million and $86 million. As a reminder, approximately 40% of our operating expense is non-cash, mostly due to stock-based compensation and the amortization of intangibles, primarily from historical company or technology acquisitions. We continue to expect that our cash used in 2025 will be lower than the cash used in 2024, excluding financings in both years. And we expect our year-end cash balance to be between $52 million and $56 million. And finally, our guidance on the tax rate remains unchanged at approximately 0% due to a valuation allowance. And with that, I'd like to open up the call for questions.

Operator, Operator

Your first question is from Puneet Souda from Leerink.

Michael Almisry, Analyst

You have Micheal Sonntag on for Puneet. Congrats on the quarter. I just want to start my first question on the private placement. I was curious if you could offer some color on what motivated the timing of the placement and if you have any thoughts on the cash runway this now gives you if you expect this to get you to where you're consistently cash flow breakeven?

Kurt Gustafson, CFO

Yes. Maybe I'll provide some additional or some thoughts and then maybe Matt can jump in there. These are conversations that we have with our Board. We took a look at our forecast and decided it was the right time to sort of bolster the balance sheet. Markets seem to start becoming a little bit more favorable. And so we took that opportunity to strengthen the balance sheet. We don't provide any sort of long-term guidance. I kind of gave you the guidance that we have for this year with regards to cash burn and cash balance. But I think this puts us in a good position. I feel like the company is now well capitalized. I don't know, Matt, anything else to add?

Matthew Foehr, President and CEO

Yes. I mean I'll add as well. Again, this provides us a level of flexibility for the business and made sense. And as Kurt said, we think the business is well capitalized. As we look out into the coming years, we'll provide further guidance, but we feel good about where we are.

Michael Almisry, Analyst

Okay. Great. And then on xPloration, I was wondering if you could provide some, I guess, additional color on customer conversations. What kind of customers in your partner base are you seeing some more interest? And if you have any thoughts on, I guess, bookings or order timelines? Any color you can provide there would be helpful.

Matthew Foehr, President and CEO

Yes. Yes, Michael. Yes, it's been very busy on the xPloration front and interest has been very strong. I would say, generally, now we've got obviously a partner base or a partner universe now of 104 partners. It is definitely the higher tier of partners who are the ones who are the most active and likely the ones who will benefit the most from xPloration. We've been very busy with demos here at our Emeryville site as well as at some partner sites as well. So I think that bodes well for how things are lining up. Obviously, xPloration itself in terms of the instrument purchase is a capital expenditure, and we feel like our timing of launch was quite good and being very busy in the demo space in Q3 and into Q4 is very good timing as partners develop their budgets for 2026 and their capital spend plans. So we feel good about where we're placed. The feedback has been very positive around the efficiency of the instrument, the ease of use and kind of the broad user base from a lab perspective that xPloration can enjoy. So we're feeling good about that.

Operator, Operator

Your next question is from Joseph Pantginis from H.C. Wainwright.

Unknown Analyst, Analyst

Can you hear me? This is Sara speaking for Joe. Sorry if we were muted.

Matthew Foehr, President and CEO

We can hear you now, Sara.

Unknown Analyst, Analyst

Yes. Just had one regarding OmniUltra. And just wanted to get a sense of launch readiness and if you're able to, at this point, elaborate on the readiness of OmniUltra for launch? Has there been any beta or pilot projects completed or any potential partners that you already have lined up to adopt the platform once it goes live next month?

Matthew Foehr, President and CEO

Yes. Yes, Sara. We've done a substantial amount of validation work around OmniUltra with many, many targets that we know are of interest to the industry. So that's work we've been doing here internally. And part of why we're launching the technology with 2 podium presentations at the AET conference. So we'll talk in a lot more detail about that specific work at the scientific conference at the time of launch. So we have a really good sense of the breadth of applicability of this technology and I think are really well positioned for the launch in December. So hopefully, that answers your question.

Operator, Operator

Your next question is from Kripa Devarakonda from Truist.

Alexander Xenakis, Analyst

This is Alex on for Kripa. We also have a question on xPloration. It sounds like the conversations have been going really well. And do you have any update on the new thinking as to how much revenue can be generated from xPloration and over what time period?

Matthew Foehr, President and CEO

Yes. It's still early days in the xPloration launch, obviously. We have said we expect xPloration to be accretive to both earnings and cash flow in both the short and the long term. That has a lot to do with kind of how the technology has been designed and how we're implementing the launch. There are multiple revenue streams that are associated with xPloration. Of course, the instrument sale itself, which will bring revenue, and we have a nice margin on the instrument. And then we also have single-use proprietary consumables as well as service contracts and maintenance contracts. So we've not given precise guidance at this point. I think as we progress through the launch, as we get additional instruments sold and deployed, we'll have more visibility there, but we're feeling really good about how it's positioned.

Alexander Xenakis, Analyst

That makes sense. And a little bit of a follow-up. Are there other trade shows that you're also demonstrating the technology and partnerships with? Or is it done mainly through the conversations directly with the company?

Matthew Foehr, President and CEO

No, we are also present at trade shows where we know our partners will be. Actually, in addition to launching OmniUltra at AET, for instance, we'll also have a substantial xPloration presence there as well. And then we have some other ones lined up as well where we'll have demo units and be doing either virtual or planning in-person demos with partners.

Operator, Operator

Your next question is from Matt Hewitt from Craig-Hallum.

Matthew Hewitt, Analyst

It seems that you've had a couple of customers who delayed their programs until 2026, pushing milestones that you expected to achieve this year to that later date. Are you noticing any improvement? Several companies this earnings season have indicated that the M&A activity has been quite active, along with an improving funding environment for small and midsized pharma, suggesting that R&D budgets are beginning to recover and spending is starting again. I'm wondering if this situation is just a one-off with a few partners, or if you're observing a broader trend where projects are being deferred to 2026.

Matthew Foehr, President and CEO

Yes. Thanks, Matt. I mean, broadly, and we kind of noted this really starting late in Q4 of last year with strong program addition momentum, right? We are seeing continued momentum in program additions that has been sustained through this year, which is very good to see. And I think we're continuing to see momentum there. The connection or the element of milestones being pushed into 2026, I would, in this instance, categorize that as more what I consider standard development stuff, right? So it's timing of clinical batches or processes in clinical start-up, things like that. In some instances, these were programs where partners had communicated to us their plan to start in Q4 and also had committed that plan publicly, but just with kind of standard development items had drifted into early 2026. So a variety of factors. But we are seeing similar to what you were describing in terms of industry momentum, we're seeing that in the form of strong program additions. Interestingly, we're also seeing with some of our academic partners an increased focus on forming spin-out companies around assets and being much more focused on monetization of programs and assets that have come or can come out of our technology. So that's kind of another interesting thing we're starting to see as well. But hopefully, that gives you some color.

Matthew Hewitt, Analyst

No, that's very helpful. It's October, so I understand it's early, but in your discussions with partners, what are you hearing about the R&D budgets for 2026? There seems to be some positive sentiment regarding the 2025 budgets compared to 2024. While there have been some ups and downs this year, it seems likely that these budgets will be utilized. Are the conversations suggesting that we might see an increase in R&D budgets? Additionally, regarding xPloration, do you think the feedback indicates this will be a Q1 purchase decision, or is there a chance some of these units could be sold by the end of this year?

Matthew Foehr, President and CEO

Yes, one of our best indicators is the number of program starts. When a new program begins for a novel target, it means a lot of preliminary work in novel biology has been done by the partner, who has committed a project team and is launching the program. We've seen strong momentum in program additions this year, which is encouraging. That's a positive sign. Recently, most of our discussions on budgeting have focused on xPloration, particularly in terms of capital allocation. However, the exact timing of orders can vary based on the partner's activities and their capital spending plans for 2026. So that's what we're observing.

Operator, Operator

Your next question is from Brendan Smith from TD Cowen.

Brendan Smith, Analyst

Maybe just a quick one first on OmniUltra. Again, I fully appreciate it's early, but can you maybe just help us understand how you all are thinking about the potential economics of some of those partnerships, maybe just relative to some of the other offerings that you guys have or ones on the books? And if you're envisioning maybe there could be different terms based on how they want to use it, whether for antibodies or peptides or what have you? And maybe just if you anticipate any of those could potentially replace some of the existing partnerships in any instances?

Matthew Foehr, President and CEO

Yes, Brendan, we view OmniUltra as a valuable addition to our business, broadly applicable and introducing new opportunities. We currently have a stable and extensive ecosystem of 104 antibody-based partners, many of whom have shown interest in OmniUltra for applications like bispecifics or CAR-T therapies. Additionally, we have several partners in the rapidly growing radiopharma sector, and we expect to expand in this area. OmniUltra also brings in a completely new group of potential partners focused on peptide discovery. Many of our larger partners are involved in both peptides and antibodies, but there is also a distinct set of partners specifically interested in peptides, which has notably increased in recent years due to the success of GLP-1 drugs and similar advancements. Consequently, there is significant investment in the peptide space, and we see this as a beneficial enhancement. Regarding your question about agreement structures, we believe this opens up new avenues for generating service revenue in the short term. There is considerable precedent for peptide-related discovery deals that align with the frameworks we've established, which include upfront payments, service fees, milestones, and royalties. However, the specific terms will depend on various factors related to each license.

Brendan Smith, Analyst

Okay, understood. Just a quick follow-up on the partner pipeline. Can you discuss how you perceive the initial ramp-up for some of these royalties? Considering the variety of areas you are partnered in, such as FcRn, PCSK9, and PD-1, where do you see the fastest potential for royalty growth compared to others that might take longer to establish?

Matthew Foehr, President and CEO

Yes. I would like to discuss some of our programs, and then Kurt can provide insights on the overall revenue modeling regarding milestones and royalties. We currently have two drugs in the registration phase, both in China. The latest is SAL003, which is the anti-PCSK9 you mentioned. Just a month ago, Salubris announced that they submitted their NDA, which has been accepted in China. They noted that the NDA is in line with China's accelerated approval process for impactful biologics, which is encouraging news. They are aiming for market entry in 2026 and have indicated that their drug shows comparable or superior efficacy to existing anti-PCSK9 therapies, developed domestically in China. We will keep monitoring that situation. This drug originated from our early collaboration with WuXi on our rodent platforms and has a 3% global royalty attached to it. In addition to that, within our Phase III and Phase II assets, there are several noteworthy projects that are attracting attention. Immunovant is making significant progress with IMVT-1402 and has a couple of important data releases expected next year that we are watching closely. Acatilimab, developed with Genmab, is also in Phase III trials and is on the radar for many. We’re beginning to see increasing interest in Teva's 53408, which targets IL-15 for celiac disease, and they are exploring additional indications as well. They have been quite proactive in advancing this program, and we are supportive of their efforts. Kurt, would you like to elaborate on this further?

Kurt Gustafson, CFO

Yes. I think when we consider the royalty ramp, we generally look at analyst consensus for these drugs. Both acasunlimab and the 1402 compound, Genmab has indicated they plan to launch in 2028. Analyst estimates align with that expectation, and there is an associated ramp. The timing for 1402 is similar. We analyze those analyst expectations to model the potential royalties we might receive. The projections for both compounds show promising ramps and strong forecasts. They are anticipated to become significant drugs.

Operator, Operator

Your next question is from Stephen Willey from Stifel.

Unknown Analyst, Analyst

This is Josh on for Steve. I have a quick question about OmniUltra and how it differs from OmniTaur. I recall that the OmniTaur platform seemed quite similar with this generation of ultra-long CDR3s or CDRH3s. Can you provide some explanation on how these platforms actually differ?

Matthew Foehr, President and CEO

Yes. Great question, Josh. And I'll try not to get too geeky and technical. OmniTaur actually leverages cows, right? So these are sequences that are derived out of cows. And also, we've developed some downstream workflows and other things that drive value in OmniTaur. And we actually have a number of active OmniTaur programs, some of which are now at the preclinical stage approaching IND. OmniUltra leverages a chicken host to get that advantage of the evolutionary distance, right? So you're able to leverage that distance of chickens from mammals to elicit a stronger immune reaction. And we've also engineered in some other features that have increased kind of the broad applicability of OmniUltra into a variety of spaces, including opening up opportunities in the peptide space. So at the core, the difference is the host, but there are obviously a number of other kind of finer technical details that broaden the applicability of OmniUltra.

Unknown Analyst, Analyst

Okay. Great. I have another question regarding the xPloration revenues. Can you provide any insight into the breakdown between consumables, software, and hardware? Do you anticipate offering any metrics in the future regarding the sales breakdown for the xPloration platform?

Matthew Foehr, President and CEO

Yes, it's a good question. I don't have a detailed breakdown for this quarter since it wasn't a significant amount of revenue. It's primarily related to consumables. It's still early days with the xPloration launch. As we progress further, we'll likely be able to provide more insight into the average consumable usage per instrument and other related metrics. But for now, it's still pretty early, so please stay tuned for updates. As the launch continues and develops, we hope to share that information.

Operator, Operator

Thank you. There are no further questions at this time. I will now hand the call back over to Matt Foehr for the closing remarks.

Matthew Foehr, President and CEO

Thank you, operator. I appreciate everyone joining us today and for your questions and engagement. We are eager to discuss our fourth quarter financial results early next year. In the meantime, we will be attending several investor conferences later this month, including Truist's BioPharma Symposium this week in New York, Stifel's Healthcare Conference next week, and the Jefferies Global Health Conference in London. Additionally, on December 15, we will be formally launching OmniUltra, accompanied by an investor webcast that day. We look forward to sharing more details during that webcast next month. Thank you once again, and have a great afternoon.

Operator, Operator

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.