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AnaptysBio shares hold as Piper Sandler keeps Overweight rating

EditorAhmed Abdulazez Abdulkadir
Published 10/02/2024, 09:10 AM
ANAB
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On Wednesday, Piper Sandler maintained a positive stance on AnaptysBio (NASDAQ:ANAB), reasserting an Overweight rating and an $80.00 price target for the biotechnology firm's stock. The firm's confidence in AnaptysBio is tied to upcoming clinical trial results for two of its drug candidates, ANB032 and rosnilimab, expected in December 2024 and the first quarter of 2025, respectively.

The analyst highlighted that AnaptysBio's ANB032, a BTLA agonist, is advancing to a Phase 2b ARISE-AD trial with results anticipated in December 2024. Additionally, rosnilimab, a PD-1 agonist, is proceeding to a Phase 2b RENOIR RA trial, with findings expected in the first quarter of 2025. These developments were discussed during a well-attended company dinner in New York City, which focused on the significant milestones ahead for AnaptysBio.

Piper Sandler also pointed to the potential impact of related industry developments, noting that Eli Lilly (NYSE:LLY)'s (not covered) peresolimab, another PD-1 agonist, may present Phase 2b RESOLUTION-1 RA data at the American College of Rheumatology meeting scheduled for November 14-19. This could have implications for the valuation and strategic positioning of AnaptysBio's own PD-1 agonist, rosnilimab.

The biotech company's management was commended for their strategic execution, which has resulted in two distinct assets. Rosnilimab is noted for its unique membrane-proximal epitope that enables deep pathogenic T cell depletion. ANB032 has been recognized for its broad impact on T cell cytokine secretion and dendritic cells. These attributes provide AnaptysBio with various options for Phase 3 development, including the potential to partner with one asset while expanding into other T or B cell-driven indications.

In conclusion, Piper Sandler expressed a bullish outlook on AnaptysBio, anticipating that the forthcoming six months could be a period of transformation for the company, driven by the expected clinical data releases.

In other recent news, AnaptysBio has reported a net loss of $47 million while maintaining a cash balance of $394 million. The company's drug pipeline is making progress, with significant strides expected in their Phase II clinical trials. Guggenheim has reiterated a Buy rating on AnaptysBio shares, highlighting the potential of ANAB032, the company's Phase II atopic dermatitis study. AnaptysBio also anticipates Eli Lilly's peresolimab results in rheumatoid arthritis to be presented at the American College of Rheumatology meeting in 2024.

Truist Securities has adjusted its stock price target for AnaptysBio, raising it to $30 while maintaining a Hold rating. JPMorgan has upgraded its stock rating to Overweight, citing the company's potential in the biotechnology industry. TD Cowen has maintained a Buy rating on AnaptysBio, expressing confidence in the company's potential.

AnaptysBio has reported positive results from its GEMINI-1 and GEMINI-2 Phase 3 trials for imsidolimab, a treatment for generalized pustular psoriasis. The company aims to out-license imsidolimab within the year and is preparing to submit comprehensive data from both trials to a medical meeting in the second half of 2024.

InvestingPro Insights

AnaptysBio's (NASDAQ:ANAB) strategic positioning and upcoming clinical trial results are complemented by several intriguing financial metrics and insights from InvestingPro. The company's market capitalization stands at $1.05 billion, reflecting investor confidence in its potential.

An InvestingPro Tip highlights that analysts anticipate sales growth for AnaptysBio in the current year, aligning with the positive outlook on the company's drug candidates ANB032 and rosnilimab. This expectation is supported by the impressive revenue growth of 135.59% over the last twelve months, indicating strong momentum in the company's commercial development.

Another relevant InvestingPro Tip notes that AnaptysBio operates with a moderate level of debt, which could provide financial flexibility as it advances its clinical trials. This is particularly important given the capital-intensive nature of biotechnology research and development.

It's worth noting that AnaptysBio's stock has shown a strong return of 97.45% over the last year, suggesting that investors are optimistic about the company's prospects. This performance aligns with Piper Sandler's bullish outlook and the potential transformative period ahead for the company.

For investors seeking a deeper understanding of AnaptysBio's financial health and market position, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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