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Investing.com - H.C. Wainwright raised its price target on AnaptysBio (NASDAQ:ANAB) to $59.00 from $38.00 on Tuesday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $23.27, have shown strong momentum with an 11% gain last week and a 25% surge over the past six months. According to InvestingPro data, analyst targets for the stock range from $20 to $90.
The price target increase follows AnaptysBio’s Monday announcement that it plans to separate into two publicly traded companies: a Biopharma operation and a Royalty Management business. The separation is expected to close by the end of 2026, though it could occur earlier pending legal considerations and board approval. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 8.22, suggesting adequate resources to execute this strategic move.
According to H.C. Wainwright, the strategic split aims to maximize the value of AnaptysBio’s royalty business, which includes substantial royalties from GSK’s Jemperli sales and potential future royalties from Vanda’s imsidolimab, pending FDA approval in 2026.
The Biopharma company will retain development of pipeline assets including rosnilimab, ANB033, and ANB101, with all data timelines remaining unchanged. It will launch with sufficient funding for at least two years of operations under a new name.
The Royalty Management company will operate with minimal infrastructure and staff under a new name, and is expected to retain net operating loss carryforwards. The split is anticipated to be a taxable event, with both companies operating completely separately with no stake in each other.
In other recent news, AnaptysBio has announced plans to separate its royalty management business from its biopharma operations by the end of 2026. The proposed Royalty Management Company will manage royalties and milestone payments from collaborations, including Jemperli with GSK and imsidolimab with Vanda Pharmaceuticals. Meanwhile, the Biopharma Company will focus on developing immunology therapeutics for autoimmune and inflammatory diseases. The decision to explore this separation was approved by AnaptysBio’s Board of Directors. Additionally, Truist Securities has reiterated its Hold rating and a $20.00 price target for AnaptysBio’s stock. This comes amid market concerns linked to emerging malignancy signals from Eli Lilly’s peresolimab, a PD-1 agonist, disclosed in a recent study. Despite these concerns, AnaptysBio continues its strategic plans to split into two independent, publicly traded companies.
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