OmniAb, Inc. (NASDAQ:OABI) shares jumped in Monday premarket trading after the company announced a global collaboration and license agreement with Eli Lilly and Company (NYSE:LLY) for a new ion channel program.
OmniAb-Lilly Deal Includes Up To $370 Million In Milestones
Under the agreement, Lilly will use OmniAb’s ion channel discovery and screening capabilities.
OmniAb will receive an upfront payment, though the company did not specify its size and is eligible for up to $370 million in research, development and commercial milestone payments, plus tiered royalties on global net sales.
The company did not disclose the therapeutic target or modality.
OmniAb Raises 2026 Cash Outlook
OmniAb also raised its 2026 cash outlook following recent technology licensing activity.
The company now expects to end the year with $49 million to $53 million in cash and cash equivalents, up from its previous forecast of $37 million to $41 million.
The move came as S&P 500 futures were up just 0.1%, highlighting investor reaction to the Lilly agreement and its potential milestone and royalty economics.
“We are pleased to enter into this important new relationship with Lilly,” CEO Matt Foehr said, noting that OmniAb’s ion channel expertise and technologies are positioned to support the new discovery program.
Critical Price Levels To Watch For OABI Stock
At $4.10, OmniAb trades 65.9% above its 20-day SMA and 107.6% above its 200-day SMA, signaling an extended setup that could see sharper pullbacks.
The broader trend remains constructive, with the 20-day SMA above the 50-day and a June golden cross still intact.
RSI at 80.20 indicates overbought conditions and increased profit-taking risk. Shares are also above the prior 52-week high of $3.63, a key level to watch on a pullback.
- Key Resistance: $4.10 — the current premarket area above the prior 52-week high of $3.63.
- Key Support: $3.63 — the prior 52-week high and first level to watch after the breakout.
How OmniAb Licenses Discovery Technology For Drug Development
OmniAb licenses antibody discovery technology to pharma, biotech and academic partners developing new therapeutics. Its platform uses proprietary transgenic animals to generate and screen antibody candidates for drug development.
The Lilly collaboration follows this model, with potential economics from upfront payments, milestones and royalties as partner programs advance.
OmniAb’s Momentum Ranking
Benzinga Edge gives OmniAb a Momentum score of 95.72, reflecting strong relative strength alongside the stock’s steep move above key moving averages.
With RSI already in overbought territory, momentum remains strong, though the recent run increases the risk of sharper pullbacks.
OABI Price Action: OmniAb shares were up 18.34% at $4.00 during premarket trading on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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