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.

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