Wedbush: Investors Largely Underappreciating AnaptysBio

AnaptysBio Inc ANAB released topline results Monday from an interim data analysis from a midstage study of its investigational asset ANAB019, which being evaluated for moderate-to-severe generalized pustular psoriasis.

The Analyst

Wedbush analyst David Nierengarten reiterated an Outperform rating on AnaptysBio with a $146 price target

The Thesis

Overall, new data from the study showed highly compelling efficacy, with rapid and sustained reductions in relevant disease metrics from the initial day eight assessment to the day 113 assessment, Nierengarten said in a Tuesday note. (See his track record here )

Compared to Boehringer Ingelheim's IL-36R inhibitor B1655130, the analyst said he sees the potential for NB019 to become the best-in-the-class antagonist.

With B1655130, anti-drug antibodies were observed in three patients, whichmay limit prolonged and multiple dosing, he said.

With ANB019, neither of the two patients in the study required rescue therapy during the treatment period, Nierengarten said; one patient treated with B1655130 required rescue therapy.

Despite the different efficacy scales used in the two studies that rendered the data incomparable, ANB019's lack of observed anti-drug antibodies represents a key potential differentiator relative to B1655130, the analyst said. 

AnaptysBio plans to continue enroll patients in the midstage study, with an enrollment target of 10 patients, he said.

The company is expected to give a data and development update for the program later in 2020, Nierengarten said. 

The analyst sees the data as having a positive read-through to the Phase 2 POPLAR study that is evaluating ANB019 in an inflammatory skin condition, palmoplantar pustulosis.

"As such, with interim Ph 2 GPP data de-risking the asset and multiple data readouts for ANB019 expected over the next 12 months, we believe that investors are largely underappreciating ANAB's second clinical candidate (and ANAB shares in general)." 

The upcoming topline Phase 2b ATLAS study readout for AnaptysBio's lead candidate etokimab in atopic dermatitis and the topline Phase 2 ECLIPSE readout in chronic rhinosinusitis with nasal polyps in the fourth quarter of 2019 could serve as the next major drivers of share value, according to Wedbush. 

Price Action

At last check, AnaptysBio shares were shedding 10.72% to $31.24. 

Related Links:

The Week Ahead In Biotech: Conference Presentations, IPOs Hit Top Gear

Movers And Shakers At ESMO 2019: Immunomedics, G1 Therapeutics, Seattle Genetics And More