Operator: [Operator Instructions] Your next question comes from Yuan Zhi from B. Riley.
Brandon Carney : This is Brandon Carney on for Yuan. You talked some about the trends you’ve been seeing in the discovery stage. Can you comment on the clinical stage regarding delays or cancellations of clinical trials? Can you comment on what you’ve observed so far related to the projects you’re tracking the biologics to build them?
Matthew Foehr : Yes. This is Matt. I’ll comment and Kurt have some comments here. When we started the year, we said we expected 3 to 5 new clinical entrants this year. At the end of Q2, we were actually already at 3. And today, we’re focused now on a higher area there of 4 to 5 this year. And so we’re seeing nice clinical progression or graduation into the clinical stage. We are pleased this quarter to see some assets move out of discovery into preclinical, which means that they’re then preparing to enter the clinic. So we are seeing nice progression in the portfolio. I don’t know, if, Kurt, anything you’d want to add to that?
Kurt Gustafson : We have not actually seen a lot of clinical attrition in terms of the clinical attrition that we have seen, it’s really not — it’s been a function of partners exiting therapeutic areas as opposed to sort of any failure of a study or something like that. As Matt said, attrition is part of this business, and it will happen. But our experience thus far on the clinical side has actually been pretty darn good relative to industry averages.
Brandon Carney : That’s helpful. And one last one from us. Have you noticed any shifted interest in biologics development due to the Inflation Reduction Act?
Kurt Gustafson : I mean, I’ll just make a comment. I mean, our business is mostly on the antibody business — on the antibody side. So it is probably a more attractive place to develop drugs just given the benefits that have been afforded by the Inflation Reduction Act. But given that we — if we had a small molecule offering and an antibody’s offering, would we see more people moving over the antibody? I don’t know. It’s tough to say. We believe that we’ve got a great platform, and we’re continuing to attract new players as evidenced by the 4 new deals that we signed this quarter. So Matt, I don’t know if you have?
Matthew Foehr : Yes. I think — I mean, I’d add that because of the higher success rates of antibody-based medicine as compared to small molecules, from a scientific and technical perspective, there’ve been an evolving shift in the industry because of those higher success rates. So that’s something obviously we see and hear and know. Now, the IRA, obviously, the legislation will allow Medicare to negotiate drug prices with manufacturers for a select number of high-cost drugs starting, I believe, in 2026, and there are exceptions to how all those negotiations can happen and that sort of thing. But there are, I’ll say, a longer tail that’s afforded to biologics medicines, which is something that may accelerate the interest in the industry and a shift towards biologic medicines that we saw happening already in advance of IRA.
So I think if anything, it can help accelerate the interest there. But I think the science and the probability of success in medical benefit in terms of the specificity that antibody-based medicines provide and predictability for development was already starting that shift. So if anything, it just may accelerate it.
Operator: There are no further questions at this time. I will turn the call back over to the CEO, Matt Foehr.
Matthew Foehr : Great. Thank you. I’d like to thank everyone for participating in today’s call and for your questions. We look forward to keeping you updated on our progress and speaking with you next quarter and at various investment conferences we’ll be attending in the coming weeks and in the fall. We’ll be at the Stifel Conference coming up. We’ll also be at H.C. Wainwright, Cantor as well as the Craig-Hallum Capital Conferences in New York in the fall. So in the meantime, we appreciate your interest in OmniAb, and thanks again. Have a great day.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for joining, and you may now disconnect your lines.
