Oct 30, 2026 earnings call — Lilly license, xPloration commercial launch
Announced Eli Lilly license with upfront payment and eligibility for up to $370 million in milestone payments.
Revenue $0.0B (est $0.0B) · EPS $-0.12 (est $-0.13)
Key quotes
"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."
"The xPloration platform drives value for antibody discovery teams with higher throughput, ease of use, robustness, and lower cost compared with current methods."
"We now expect total revenue to be in the range of $35 million to $39 million, which is up from $32 million to $36 million previously."
Analyst Q&A 7
Drivers of collaboration revenue
Q (Puneet Souda · Leerink Partners): How much of the strong collaboration revenue was from OmniUltra and other chicken models, and how should we think about deferred revenue recognition? Also asked about xPloration pipeline, capital vs consumable revenue, and batoclimab royalty prospects.
A: Management said the revenue mix is coming from multiple sources, including new partners and programs attracted by OmnidAb and OmniUltra. They noted chicken-based programs drive service work. They said the Lilly collaboration was announced and will start contributing in the fourth quarter as a multi-year deal.
"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." — Matthew Foehr (CEO)
Teva asset and spending needs
Q (Srikripa Devarakonda · Truist): Does the positive celiac data for TEV-'408 change the monetization timeline and what development events trigger milestones? Also asked how much extra spending is needed to deliver the next growth phase and whether xPloration needs big investment.
A: They said Teva showed strong celiac data and has publicly discussed peak sales potential for celiac of approximately $1.5 billion to $2 billion and is moving the program quickly. For spend, they said the core antibody business is already sized to support current and expected partnerships and they do not expect dramatic increases in operating expense; xPloration investments will be evaluated and allocated as needed.
"They've been pretty transparent in their presentations publicly on the potential there, seeing potential peak sales just in the celiac indication alone of approximately $1.5 billion to $2 billion." — Matthew Foehr (CEO)
OmniTides interest and customer mix
Q (Joshua Korsen · H.C. Wainwright): How much partner interest have you seen for OmniTides and in which therapy areas? Also asked what the customer mix is for xPloration (small biotech, large pharma, CROs).
A: They said OmniTides, powered by the OmniUltra chicken, has attracted many partners and is drawing interest, especially for peptides used in the metabolic area, and also for other therapeutic areas. For xPloration, they said they are seeing interest and placements across all three customer types: large pharma, CROs, and small biotech, though the ability to pay varies by customer type.
"There's really been, I'll say, a growth, a substantial growth in peptide use as really driven by the metabolic space." — Matthew Foehr (CEO)
Milestones from upcoming readouts and consumables
Q (Matthew Hewitt · Craig-Hallum): What is the potential milestone contribution from the 19 upcoming readouts over the next 15 months? Also asked about early consumable pull-through from xPloration placements.
A: They said the readouts are part of the total $340 million of potential milestone payments they can earn from those programs. On xPloration consumables, they said it is still early to see a stable pattern; consumable use will vary by customer type, and they are working closely with customers to ensure good instrument use. They remain optimistic and expect the xPloration business to double in 2027 and double again in 2028.
"Those are within that total of the $340 million of potential milestone payments that we can earn from those programs." — Matthew Foehr (CEO)
Revenue mix evolution
Q (Brendan Smith · TD Cowen): Will milestones remain the biggest revenue source next year, and when could royalties become the majority? Will milestones taper or keep growing?
A: They said milestones should be the largest revenue contributor for the next couple of years. Management noted a program (Immunovant 1402) that could start driving royalties in late 2028 and ramp thereafter, and other lines like service revenue and xPloration will also contribute. They expect multiple revenue lines to drive overall growth rather than a single source flipping immediately.
"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." — Kurt Gustafson (CFO)
Milestones per indication and AI in xPloration
Q (Michael King · Rodman & Renshaw): For products like TEV-'408, do you get milestones for individual indications or just royalties? And how much AI will you build into xPloration and integrate with automated labs?
A: They said deal terms vary, and some partnerships include milestones tied to trial starts, approvals, different indications, label expansions, or geography—so it is deal specific. On AI, they said they are strong believers in AI; their OmniDeep tools and high-quality data support AI work, and xPloration's speed and throughput make it suitable for AI-enabled discovery workflows.
"But there certainly are assets that we have for where we do get milestones based on different sorts of trial starts or different indications, label expansions, geography expansion, et cetera." — Matthew Foehr (CEO)
Rights after partner acquisition and xPloration revenue mix
Q (Joshua Nickerson · Stifel): If a partner is acquired, what happens to the royalty economics? Also asked current xPloration revenue mix and near- and long-term drivers, and whether xPloration use leads to further partnerships.
A: They said licenses are structured so the economics stay with the asset, and royalties are linked to the patents for molecules found with their tech, so the economics remain after acquisition. For xPloration, they said most current revenue is from instrument placements and recurring consumables could grow over time as customers use the platform more. They also said xPloration is synergistic with their licensing business and often creates scientist-to-scientist collaborations that can lead to more work.
"The royalties are also linked to the patents that the partners file on the molecules that are discovered with our tech." — Matthew Foehr (CEO)