On Wednesday, Truist Securities adjusted its outlook on shares of AnaptysBio (NASDAQ:ANAB), reducing the stock's price target from $30.00 to $20.00, while maintaining a Hold rating on the shares. The revision follows AnaptysBio's recent Phase 2b trial failure of ANB032 in atopic dermatitis (AD), which led to its removal from the sum-of-the-parts (SOTP) valuation of the company.
The stock, currently trading at $15.80, has seen a significant decline of over 30% in the past six months, with InvestingPro data showing the company's market capitalization now stands at approximately $481 million.
The analyst at Truist Securities noted that the decision to lower the price target was based on a reevaluation of AnaptysBio's pipeline. Specifically, the failure of the ANB032 trial necessitated a change in the valuation model. In addition to removing ANB032, the firm also adjusted its estimates for imsidolimab, as AnaptysBio is still in the process of finding a partner to advance this program.
According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 10.23, though it faces challenges with weak gross profit margins and rapid cash burn.
Despite the setbacks, Truist Securities has left its estimates for rosnilimab in rheumatoid arthritis (RA) unchanged. This indicates that, at least for this aspect of AnaptysBio's pipeline, the firm's expectations remain consistent with previous assessments. InvestingPro subscribers can access 12 additional key insights about AnaptysBio's financial health and market position, including detailed analysis of its pipeline valuation and growth prospects.
The analyst's comments provide insight into the factors influencing the revised price target: "We are updating our ANAB model to reflect the following: We're removing ANB032 in AD from our SOTP valuation of ANAB due to recent Ph2b trial failure; Lowering our estimates for imsidolimab as ANAB continue to search for a partner to take the program forward; Our rosnilimab estimates in RA remain unchanged."
AnaptysBio's stock price adjustment by Truist Securities reflects the dynamic nature of the biopharmaceutical industry, where clinical trial outcomes can significantly impact company valuations and analyst expectations.
In other recent news, AnaptysBio has seen significant developments in its clinical trials and financial performance. The company's BTLA agonist, ANB032, failed to meet primary or secondary endpoints in a Phase IIb atopic dermatitis study, leading to a halt in further investment in ANB032.
Despite this setback, Guggenheim maintains its buy rating on AnaptysBio, adjusting the stock's price target to $36 from $90. Analysts from BTIG and Truist Securities adjusted their stance on AnaptysBio shares to neutral, while H.C. Wainwright reduced its price target due to increased operating expenses.
AnaptysBio reported a third-quarter net loss of $32.9 million, but saw a significant increase in collaboration revenue, which rose to $30 million. Another significant event on the horizon for AnaptysBio is the anticipated Phase II results for rosnilimab, a PD-1 agonist being tested for rheumatoid arthritis, expected in February 2025. The pipeline also includes other programs such as ANB033, an anti-CD122 antagonist, and ANB101, a BDCA2 modulator.
These recent developments provide a snapshot of AnaptysBio's ongoing activities and financial health, as the company navigates the challenges and opportunities in the biotechnology sector.
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