AnaptysBio (ANAB) Piper Sandler Virtual Novel Targets in Immunology Symposium summary

Strategic separation and business structure

• The separation of the royalty and biopharma businesses is targeted for completion in Q2, with all employees moving to the new biopharma entity, which will be publicly traded and hold three clinical-stage assets.

• The royalty company will focus on maximizing value from Jemperli and Imsidolimab royalties, leveraging a low-cost, virtual structure and NOLs, while the biopharma company will advance clinical assets and manage higher cash consumption.

• Cash allocation between the two entities is under consideration, balancing funding for biopharma catalysts through 2027–2028 and potential shareholder returns via repurchases.

• The spin-off will be a taxable event, and the timing of cash distribution will depend on the effective date of the separation.

• Leadership and operational plans are in place, with the current executive set to lead the biopharma company.

Jemperli performance and outlook

• Jemperli is experiencing strong sales growth, with Q4 revenue of $343 million and 13% quarter-over-quarter growth, yet market recognition lags behind its performance.

• The drug is best-in-class among PD-1 antagonists, with unique survival data in endometrial cancer and multiple upcoming readouts in rectal and colon cancer.

• GSK projects $2.7 billion in peak sales, but internal estimates suggest potential to exceed this, with a $1.8 billion run rate possible by year-end if current growth continues.

• The royalty company will benefit from an 8%-25% royalty on Jemperli, making it a foundational asset.

• Litigation with GSK over combination rights could impact future royalty streams, with a trial set for July.

Pipeline development and clinical catalysts

• ANB033, a CD122 antagonist for celiac disease, is progressing with a unique trial design; data readout is expected in Q4, focusing on histological and symptomatic endpoints.

• The celiac market is large and untapped, with over 2 million patients in the US and no approved therapies; the trial aims to set a new clinical benchmark.

• EoE (eosinophilic esophagitis) trials are starting this quarter, targeting both reduction in eosinophils and symptom improvement, with data expected in 2027.

• Rosnilimab, with strong phase II-B RA data, is advancing toward phase III, with partnership or external funding likely; an update is expected in the first half of the year.

• BDCA2 modulator (ANB101) is in phase I, with future development contingent on external phase III data and internal prioritization.