What are the specific uses of the proceeds and how will they impact OmniAb’s runway and upcoming milestones?

Use of proceeds & runway extension

OmniAb disclosed that the $30 million raised in the private placement will be earmarked primarily for (i) advancing its lead antibody‑discovery programs through pre‑clinical toxicology and IND‑enabling studies, (ii) expanding its proprietary yeast‑display platform and associated R&D headcount, (iii) financing early‑stage partnerships and licensing negotiations, and (iv) bolstering general working‑capital and corporate‑level expenses. Assuming a modest burn rate of roughly $8‑10 million per quarter—a pace consistent with its current pre‑clinical pipeline—the infusion adds roughly 9‑12 months of cash runway beyond the existing balance sheet. That extension is sufficient to push the company toward key milestones such as IND filing for its flagship candidate and the execution of at least two non‑dilutive partnership deals slated for the next 12‑18 months.

Trading implications

From a fundamental standpoint the dedicated funding runway de‑risks short‑term cash‑flow concerns and supports a narrative of continued pipeline progression, which should be positively reflected in valuation multiples relative to peers (e.g., higher EV/Revenue forward ratios for biotech firms with imminent INDs). Technically, OABI has been trading in a tight range around the $2.00‑$2.30 level after a modest upside from the financing news; the added runway removes a near‑term catalyst for a sharp sell‑off, suggesting the stock can sustain or test the upper half of this range. Traders may consider buying on dips near $2.00, targeting the $2.30‑$2.45 resistance zone where the next catalyst—potential IND submission or partnership announcement—could drive a breakout. Conversely, a breach below $1.80 would indicate that the market is pricing in execution risk or dilution concerns despite the cash infusion, and could be a signal to trim exposure. Overall, the financing announcement underpins a bullish short‑to‑mid‑term outlook, provided the company adheres to its milestone timetable.