OmniAb rises on drug discovery deal with Lilly worth up to $370 million

Shares of biotech firm OmniAb OABI.O rose 18% to $4, hitting their highest level since November 2024, after the company said it signed a global collaboration and license agreement with Eli Lilly LLY.N for a new ion channel drug discovery program.

OmniAb said it will receive an upfront payment and is eligible for up to $370 million in research, development and commercial milestone payments. Ion channels are proteins that help control signals in cells and are targets for treatments across several diseases.

The company said the partnership will use its antibody discovery platform and ion channel screening expertise. The agreement also includes tiered royalties on global net sales. The therapeutic target and drug type were not disclosed.

Including the session's move, the stock was up about 113% year to date.