Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
On Friday, Guggenheim maintained a Buy rating on AnaptysBio (NASDAQ:ANAB) and increased the price target to $52.00 from the previous $36.00. The stock, which has seen a challenging period with a 57% decline over the past six months, currently trades well below analyst targets ranging from $18 to $57. According to InvestingPro data, two analysts have recently revised their earnings estimates upward for the upcoming period. The adjustment follows AnaptysBio’s announcement of positive results from a Phase IIb trial of rosnilimab for rheumatoid arthritis (RA). The study showed promising ACR-50 and ACR-70 results at week 24, which were comparable to those of the JAK inhibitor Rinvoq. Guggenheim anticipates further data from the 28-week and translational studies to be released in the second quarter of 2025.
AnaptysBio is also progressing with other clinical trials, including a global Phase II study for moderate-to-severe ulcerative colitis, with results expected in the fourth quarter of 2025. The company’s Phase Ia trial for ANB033 in healthy volunteers is active, and the Phase Ib indication is set to be announced later in 2025 at a research and development event. Additionally, the FDA has accepted the IND application for ANB101, and a Phase Ia trial is projected to start by the first quarter of 2025.
The company has also entered into an out-licensing agreement with Vanda Pharmaceuticals (NASDAQ:VNDA) for the development and commercialization of imsidolimab, an IL-36R antagonist. AnaptysBio has received $15 million from this deal, with the possibility of earning up to $35 million more in regulatory approvals and sales milestones, plus a 10% royalty on global net sales.
AnaptysBio concluded fiscal year 2024 with $420 million in cash and expects its cash runway to extend through the end of 2027. InvestingPro analysis shows the company maintains a strong current ratio of 10.23, indicating robust liquidity, though it’s worth noting the company is currently burning through cash with negative free cash flow of $103 million in the last twelve months. This forecast does not include potential royalties and milestones from collaborations with GSK on Jemperli and cobolimab, which could include a $75 million milestone payment should Jemperli achieve $1 billion in annual worldwide sales. Guggenheim’s increased price target reflects confidence in AnaptysBio’s clinical developments and the potential of its pipeline assets. Based on InvestingPro Fair Value analysis, the stock appears slightly undervalued at current levels. Investors seeking deeper insights can access 12 additional ProTips and comprehensive financial metrics through InvestingPro, including detailed analysis of the company’s growth prospects and financial health scores.
In other recent news, AnaptysBio announced positive results from its Phase 2b trial of rosnilimab for treating rheumatoid arthritis (RA). The trial, which included 424 participants, met its primary endpoint by demonstrating a significant change from baseline in DAS-28 CRP at Week 12, with rosnilimab achieving statistical significance on key secondary endpoints as well. The treatment was reported to be safe and well-tolerated, showing robust pharmacological activity. Following these results, H.C. Wainwright raised the price target for AnaptysBio to $22, while maintaining a Neutral rating. Additionally, AnaptysBio has entered into a licensing agreement with Vanda Pharmaceuticals for its imsidolimab treatment for Generalized Pustular Psoriasis, opting not to commercialize it internally due to the condition’s rarity. This deal will bring AnaptysBio $15 million, including upfront and existing drug supply payments. Meanwhile, TD Cowen highlighted AnaptysBio’s upcoming Phase II data release for rosnilimab in February 2025 as a significant catalyst for the biotech sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.