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Wednesday, Guggenheim analysts raised their price target on AnaptysBio (NASDAQ: NASDAQ:ANAB) shares to $90 from the previous $54, while retaining a Buy rating. Currently trading at $20.13, the stock has shown strong momentum with a 52% gain year-to-date, according to InvestingPro data. The firm’s analysis highlighted AnaptysBio’s robust financial status, with a cash reserve of $383 million as of the first quarter of 2025, and a projected financial runway extending to the end of 2027. The analysts believe that the market has yet to fully appreciate the financial prospects of AnaptysBio, particularly in terms of potential royalties and milestone payments from its collaborations. InvestingPro data reveals the company maintains a healthy current ratio of 8.25, indicating strong short-term liquidity, though it’s worth noting the company is currently burning through cash - one of several key insights available to Pro subscribers.
AnaptysBio has a notable partnership with GSK, which includes milestone payments of $50 million and $75 million when Jemperli, a PD-1 antagonist, reaches annual net sales of at least $750 million and $1 billion, respectively. Confidence is high that these milestones will be met within the year. Additionally, AnaptysBio is poised to receive up to a 25% royalty rate on Jemperli sales, which could exceed $2.5 billion in peak annual worldwide net sales.
GSK’s management has recently expressed confidence in reaching these sales targets, given the expected growth in the market for endometrial cancer, colorectal cancer, and head-and-neck squamous cell carcinoma treatments, which is projected to expand to approximately £15 billion by 2031. Jemperli is well-positioned to capture more than £2 billion in peak sales in this growing market.
AnaptysBio is also on track to repay its $600 million obligation to Sagard, with $104 million already settled as of March 31, 2025. The repayment is expected to be completed by 2028, which would then provide significant cash flow for AnaptysBio post-Sagard paydown. The next anticipated catalyst for AnaptysBio is the full 28-week readout for the Phase IIb rheumatoid arthritis trial of rosnilimab, scheduled to be announced on June 3rd.
In conclusion, Guggenheim’s updated model, which now incorporates the expected royalties from GSK’s Jemperli, supports their increased price target for AnaptysBio stock. With analyst targets ranging from $18 to $57 and impressive revenue growth of 387% over the last twelve months, the company shows significant potential despite current challenges. The analysts reiterate a Buy rating, emphasizing the company’s promising clinical developments, strong financial footing, and the current undervaluation of the stock. For deeper insights into AnaptysBio’s financial health and growth prospects, including 8 additional exclusive ProTips, visit InvestingPro.
In other recent news, AnaptysBio has been actively engaging in various strategic and financial initiatives. The company announced a stock repurchase plan worth up to $75 million, demonstrating confidence in its financial standing, supported by over $420 million in cash and investments as of the end of 2024. This move is expected to bolster shareholder value and indicates a strong financial position, with a projected cash runway extending through 2027. Additionally, AnaptysBio is anticipating a $75 million milestone payment from its collaboration with GSK, which could further enhance its financial outlook.
On the clinical front, AnaptysBio reported promising results from its Phase IIb trial of rosnilimab for rheumatoid arthritis, leading Guggenheim to raise its price target for the company to $52. The positive trial outcomes have sparked optimism about the drug’s potential, with further data anticipated in 2025. Meanwhile, Wolfe Research maintains an Outperform rating on AnaptysBio with a $25 target, citing the company’s undervaluation and potential from its ulcerative colitis program expected later this year.
H.C. Wainwright, however, holds a Neutral stance with a $22 target, noting stability in rosnilimab’s treatment outcomes compared to competitors. AnaptysBio’s strategic moves, including an out-licensing agreement with Vanda Pharmaceuticals (NASDAQ:VNDA) for imsidolimab, underscore its commitment to advancing its pipeline and maximizing its financial and clinical opportunities. These developments reflect a dynamic period for AnaptysBio as it navigates its clinical trials and financial strategies.
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