First Read: AnaptysBio Inc "Jemperli hits on interim in rectal cancer -..."

Research evidence excerpt

First Read: AnaptysBio Inc "Jemperli hits on interim in rectal cancer -..."

Forecast returns

Forecast price appreciation 14.5%

Forecast dividend yield 0.0%

Forecast stock return 14.5%

Market return assumption 9.2%

Forecast excess return 5.3%

Company Description

AnaptysBio is a clinical-stage biotechnology company focused on developing antibodies for

the treatment of inflammatory and immune-oncology indications. Its products are developed

using a proprietary antibody platform based on somatic hypermutation (SMH), the natural

process of antibody generation. The company's lead wholly-owned assets: imsidolimab,

ANB030, and ANB032, are focused on treating inflammatory diseases.

Valuation Method and Risk Statement

Valuation method: We value the company using EV/Sales multiple based on comparable

royalty-based biotech business models. Upside risks: Jemperli sales beating cons estimates,

positive outcome for ANAB in GSK litigation. Downside risks: Jemperli missing cons estimates,

negative outcome for ANAB in GSK litigation, failure of pipeline readouts.

GSK:

All biopharma companies face risks around R&D pipeline success/failure, regulatory oversight

& approval decisions, PBM/country drug pricing negotiations, competitor product

developments, patent challenges and product liability. GSK company-specific risks include: (1)

slowing conversion of HIV franchise to long-acting injectable treatments; (2) weaker market

penetration of Blenrep and Exdensur than anticipated; (3) late-stage pipeline failure for next-

gen HIV therapies; and (4) increased Vaccine opt-out by patients in the US market following

changes to CDC vaccination schedule.

Valuation: We value GSK based on a multiple of 2026/27E underlying UBS EPS, informed by

peer valuations, growth vs peers and PharmaValues NPV.