Some 'Transgenic Animal Platforms Are More Than Equal,' Analyst Initiating Coverage On OmniAb Says

  • Credit Suisse initiated coverage on OmniAb Inc OABI with an Outperform rating and a price target of $13.
  • The company is spun off of Ligand Pharmaceuticals Inc's LGND antibody discovery business.
  • The analyst says the company is the industry's only four-species antibody discovery platform (rat, mouse, chicken, cow) with a flexible business model that can feed directly into partner labs/CROs (plug-and-play) or be utilized by OmniAb on behalf of the partners. 
  • Credit Suisse says these programs validate the technology and business model, supporting steady demand averaging around 30-40 programs per year.
  • The analyst says the current valuation is assigning value to some of the 25 clinical/approved programs but not to the remaining 257 preclinical programs due to a lack of information.
  • Advancement of the existing portfolio alone should drive substantial value over time. Once a program enters the clinic, it offers non-correlated potential upside that generates cash flows at a 100% margin.
  • The company is also trading at a discount relative to other peers in the drug discovery space. The analyst writes.
  • Price Action: OABI shares are down 2.02% at $3.39 on the last check Friday.
Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorBiotechNewsPenny StocksHealth CareInitiationSmall CapAnalyst RatingsGeneralBiotechnologyBriefsHealth Care
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!