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TD Cowen keeps 'Buy' on AnaptysBio stock, cites potential of rosnilimab in RA

EditorEmilio Ghigini
Published 21/06/2024, 11:16
ANAB
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On Friday, TD Cowen reiterated its Buy rating on AnaptysBio (NASDAQ:ANAB) stock, focusing on the potential of the company's lead candidate, rosnilimab. The drug, a PD-1 agonist monoclonal antibody (mAb), has completed a Phase I Single Ascending Dose/Multiple Ascending Dose (SAD/MAD) study in healthy volunteers and a Phase II study in alopecia areata.

Despite the decision not to continue developing the drug for alopecia areata, its progression in moderate-to-severe rheumatoid arthritis (RA) is notable, with a Phase IIb trial expected to produce results by mid-2025.

AnaptysBio's rosnilimab is designed to prevent T cell expansion and reduce inflammatory cytokine production. Comparatively, competitive data from Eli Lilly (NYSE:LLY)'s PD-1 agonist peresolimab has shown promising activity in RA, which is seen as a positive indicator for rosnilimab's mechanism of action in this indication. Although additional data from peresolimab's Phase II program were anticipated by mid-2024, the full data set is now expected by the end of the year.

The optimism for AnaptysBio's candidate is also based on its improved potency in preclinical assays, suggesting that it could present a competitive profile for RA treatment.

Furthermore, key opinion leaders (KOLs) have expressed the need for new effective therapies for patients who do not respond to biologics, with a safety profile superior to that of the JAK inhibitor class. TD Cowen projects that rosnilimab could reach $1.5 billion in peak U.S. sales for RA alone.

Beyond rheumatoid arthritis, AnaptysBio has also initiated a Phase II trial of rosnilimab in ulcerative colitis (UC), with results anticipated in the first half of 2026. Success in this trial could lead to additional benefits beyond the firm's current estimates for the drug's market potential.

In other recent news, AnaptysBio, a clinical-stage biotechnology company, has reported positive results from its GEMINI-1 and GEMINI-2 Phase 3 trials for imsidolimab, a treatment for generalized pustular psoriasis (GPP).

The GEMINI-1 trial showed a significant response in patients receiving a single intravenous dose of imsidolimab compared to those on placebo, a response maintained through 24 weeks in the GEMINI-2 trial with monthly subcutaneous dosing. These trials involved a total of 45 patients, with results indicating that 53% of patients who received a 750mg dose achieved clear or almost clear skin at week 4.

Safety profiles for imsidolimab were consistent with earlier findings, showing no serious adverse events or significant increase in infections compared to the placebo. These developments underline AnaptysBio's capability to develop antibodies that provide meaningful outcomes for patients.

AnaptysBio 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. This data will support potential future regulatory submissions for imsidolimab, contingent on finding a licensing partner.

In addition to this, AnaptysBio is also advancing other immunology therapeutics, including checkpoint agonists for autoimmune and inflammatory diseases, and has a portfolio of immune cell modulators in preclinical development. These are the latest developments in the company's ongoing efforts.

InvestingPro Insights

As AnaptysBio (NASDAQ:ANAB) continues to make strides in the development of rosnilimab, investors and analysts are closely monitoring the company's performance and market potential. According to InvestingPro data, AnaptysBio has a market capitalization of $625.05 million, reflecting the investment community's valuation of the company. Notably, the company's revenue has shown significant growth over the last twelve months as of Q1 2024, with an impressive increase of 114.78%. This growth trajectory is further emphasized by a quarterly revenue growth rate of 422.49% in Q1 2024, indicating a strong upward trend in the company's financial performance.

InvestingPro Tips highlight that management has been proactive in enhancing shareholder value through aggressive share buybacks, a move that often signals confidence in the company's future prospects. Additionally, 5 analysts have revised their earnings estimates upwards for the upcoming period, suggesting a positive outlook on AnaptysBio's financial performance. It's worth noting that the stock is trading at a high revenue valuation multiple of 13.09, which could indicate investor anticipation of future growth.

For those interested in a deeper dive into AnaptysBio's financials and future prospects, additional InvestingPro Tips are available. These tips provide further insights into the company's financial health and market position, which could be invaluable for making informed investment decisions. To explore these additional tips and gain a comprehensive understanding of AnaptysBio, visit https://www.investing.com/pro/ANAB. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable insights.

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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