On Monday, Guggenheim maintained its Buy rating on AnaptysBio (NASDAQ:ANAB) and increased the stock's price target to $90 from the previous $75. The adjustment comes as the firm anticipates the upcoming Phase IIb atopic dermatitis readout of ANB032, AnaptysBio's BTLA agonist monoclonal antibody, expected in December.
The firm's analyst highlighted the potential of ANB032, stating that activating the BTLA inhibitory pathway could be an effective treatment for diseases where T or B cells are involved. The analyst noted that ANB032 has successfully addressed key drug-design issues that led to the discontinuation of a similar BTLA agonist by another company. Drawing parallels with anti-OX40L monoclonal antibodies, which have shown efficacy and safety in previous Phase II trials for atopic dermatitis, the analyst suggested that ANB032 could see similar positive outcomes.
The analyst expressed confidence in the drug's prospects, citing management's guidance that an EASI-75 score (a measure of improvement in atopic dermatitis symptoms) of 40% or a placebo-adjusted improvement of 15-25% would make ANB032 a strong player in the post-dupilumab atopic dermatitis market, which is estimated to reach $10 billion. A higher EASI-75 score of 50-60% or a placebo-adjusted improvement of 25-45% could further enhance the drug's competitive edge, potentially positioning it as a first-line biologic treatment for atopic dermatitis.
Guggenheim projects that, if approved, ANB032 could capture a significant market share, with potential peak global sales of $2 billion in the atopic dermatitis market following the era of dupilumab. Despite some investors' lack of conviction regarding the outcome of the ANB032 study, Guggenheim sees a favorable risk/reward ratio leading up to the readout, with potential for more than three to four times upside and less than 20-25% downside.
In other recent news, AnaptysBio reported a net loss of $47 million while maintaining a cash balance of $394 million. Piper Sandler has reiterated its Overweight rating on AnaptysBio, following the recent presentation of data at the United European Gastroenterology Week. Leerink Partners and Guggenheim also maintained their positive ratings, with Truist Securities adjusting its stock price target upwards.
AnaptysBio's ANB032, a BTLA agonist, is advancing to a Phase 2b ARISE-AD trial with results expected in December 2024, and rosnilimab, a PD-1 agonist, is proceeding to a Phase 2b RENOIR RA trial, with findings expected in the first quarter of 2025. The company has also reported positive results from its GEMINI-1 and GEMINI-2 Phase 3 trials for imsidolimab, a treatment for generalized pustular psoriasis.
InvestingPro Insights
AnaptysBio's (NASDAQ:ANAB) recent stock performance and financial metrics offer additional context to Guggenheim's optimistic outlook. According to InvestingPro data, ANAB has seen a substantial 76.04% price return over the past six months, reflecting growing investor confidence. This aligns with the analyst's positive stance on the company's upcoming Phase IIb atopic dermatitis readout.
InvestingPro Tips highlight that analysts anticipate sales growth for AnaptysBio in the current year, which could be driven by the potential success of ANB032. However, it's worth noting that the company is not expected to be profitable this year, underscoring the importance of the upcoming clinical results for its future financial performance.
The company's revenue growth is impressive, with a 217.08% increase in the most recent quarter compared to the same period last year. This strong top-line growth supports Guggenheim's view on AnaptysBio's potential in the lucrative atopic dermatitis market.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for AnaptysBio, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.