On Wednesday, Leerink Partners adjusted their outlook on AnaptysBio (NASDAQ: NASDAQ:ANAB), reducing the price target to $45 from the previous $47, while maintaining an Outperform rating on the stock. The biotechnology company recently disclosed its third-quarter financial results and provided updates on its clinical programs.
AnaptysBio reported no blinded safety concerns with its BTLA agonist (ANB032) or PD-1 agonist (rosnilimab) to date. Management also announced an accelerated timeline for the rosnilimab readout in rheumatoid arthritis (RA), now expected in February rather than March.
The firm highlighted the company's valuation, noting that with a market capitalization of approximately $600 million and $458 million in cash as of September 30, AnaptysBio's stock appears significantly undervalued.
This assessment is based on the company's portfolio, which includes three inflammation and immunology clinical-stage assets and a fourth expected to enter clinical trials early next year.
The company reported a third-quarter net loss of $32.9 million, which was more favorable than Leerink's estimate of a $43.6 million loss and the consensus of a $46.1 million loss. Following the update, Leerink revised its forecast for the company's 2024 estimated earnings per share from a loss of $6.48 to a loss of $5.76.
As of September 30, AnaptysBio's cash, cash equivalents, and investments totaled $15.90 per share, and the company's management maintains that its cash runway is expected to extend through the end of 2026.
Leerink reiterated its positive stance on AnaptysBio shares, emphasizing the potential of its drug candidates. The firm maintains a 20% probability of success for the BTLA agonist in treating atopic dermatitis (AD) and a 25% probability for the PD-1 agonist in RA, with both candidates having the potential to be first-in-class checkpoint agonists in their respective indications.
In other recent news, AnaptysBio has been the focus of several analyst firms. Guggenheim has maintained its Buy rating on AnaptysBio, citing optimism for the upcoming Phase IIb atopic dermatitis readout of ANB032, the company's BTLA agonist monoclonal antibody, expected in December.
Leerink Partners has also sustained their Outperform rating, expressing continued confidence in AnaptysBio's potential, particularly in treating Atopic Dermatitis (AD) through mechanisms beyond the Th2 cell-mediated pathway.
Piper Sandler has reiterated its Overweight rating on AnaptysBio, following the recent presentation of data at the United European Gastroenterology Week. The firm expressed strong conviction in the potential success of the ongoing 28-week Phase 2b ROSETTA study for rosnilimab, a PD-1 agonist, in patients with moderate to severe Ulcerative Colitis (UC).
In terms of financials, AnaptysBio has reported a net loss of $47 million while maintaining a cash balance of $394 million. The company's drug pipeline is progressing, with significant strides expected in their Phase II clinical trials. AnaptysBio's ANB032 is advancing to a Phase 2b ARISE-AD trial, and rosnilimab, another PD-1 agonist, is proceeding to a Phase 2b RENOIR RA trial.
The company has also reported positive results from its GEMINI-1 and GEMINI-2 Phase 3 trials for imsidolimab, a treatment for generalized pustular psoriasis.
InvestingPro Insights
Recent InvestingPro data provides additional context to AnaptysBio's financial situation and market performance. The company's market capitalization stands at $600.37 million, aligning closely with Leerink Partners' valuation assessment. Despite a significant revenue growth of 135.59% over the last twelve months, AnaptysBio is currently operating at a loss, with a gross profit margin of -370.72% and an operating income margin of -508.81%.
Two relevant InvestingPro Tips highlight that AnaptysBio is "quickly burning through cash" and "not profitable over the last twelve months." These insights corroborate the company's reported net loss and the importance of its cash runway. The stock's recent performance has been challenging, with a 41.49% decline over the past month and a 38.03% drop in the last three months, potentially reflecting market concerns about the company's financial position.
Investors considering AnaptysBio might find value in exploring the additional 12 tips available on InvestingPro, which could provide a more comprehensive view of the company's prospects and challenges as it progresses through its clinical trials.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.