AnaptysBio Plans Strategic Split into Two Distinct Companies

AnaptysBio, a prominent player in the biopharmaceutical industry, has announced plans to divide its operations into two separate publicly traded entities. This strategic move, expected to be completed by the end of 2026, aims to maximize value for investors by creating distinct businesses focused on clinical-stage pipeline development and royalty management.

Clinical Pipeline Company to Advance Promising Candidates

The first entity, which will retain the AnaptysBio name and be led by current CEO Daniel Faga, will concentrate on advancing the company's clinical-stage pipeline. Key assets include:

• Rosnilimab: A PD-1 agonist that recently met its objectives in a phase 2 rheumatoid arthritis trial.
• ANB033: A CD122 antagonist currently undergoing phase 1 studies for celiac disease.
• ANB101: A phase 1-stage BDCA2 modulator targeting autoimmune and inflammatory diseases.

Faga stated, "Anaptys is strategically positioned with multiple attractive, high-potential assets, including our development-stage pipeline consisting of rosnilimab, ANB033 and ANB101." The company is exploring various strategic options for rosnilimab, including securing a global partnership or independently advancing one phase 3 indication.

Royalty-Focused Spinoff to Capitalize on Existing Agreements

The second company, yet to be named, will oversee AnaptysBio's royalty-based agreements with minimal infrastructure and staff. Its primary asset will be the royalty stream from Jemperli, a PD-1 blocking antibody discovered by AnaptysBio and now owned by GSK. The drug has generated $2.7 billion in sales as a treatment for endometrial cancer and solid tumors.

The royalty structure for Jemperli is tiered:

• 8% on sales up to $1 billion
• 12% on sales between $1 billion and $1.5 billion
• 20% on sales between $1.5 billion and $2 billion
• 25% on sales above $2.5 billion

However, asset management firm Sagard will receive the first $600 million in royalties, expected to be fulfilled between mid-2027 and Q2 2028.

Additionally, the royalty company stands to benefit from the recent licensing deal with Vanda Pharmaceuticals for imsidolimab, a phase-3-stage pustular psoriasis drug. This agreement includes $10 million upfront, potential milestone payments of up to $35 million, and a 10% royalty on net sales.

The proposed separation is designed to provide investors with "the opportunity to realize and enhance the potential value of two distinct sets of assets," according to Faga. As the pharmaceutical landscape continues to evolve, this strategic split positions both resulting companies to capitalize on their respective strengths in drug development and royalty management.