AnaptysBio to Split into Two Companies, Separating Biotech Pipeline from Royalty Assets

AnaptysBio, a San Diego-based biopharmaceutical company, has announced plans to split into two separate publicly traded entities. This strategic move aims to create distinct businesses focused on clinical-stage pipeline development and royalty-based agreements, respectively.

Royalty-Focused Company to Capitalize on Jemperli Success

The newly formed royalty-focused company will oversee AnaptysBio's royalty-based agreements, with its primary asset being the royalties from Jemperli, a PD-1 blocking antibody discovered by AnaptysBio. Currently owned by GSK, Jemperli has generated $2.7 billion in sales as a treatment for endometrial cancer and solid tumors.

Under the existing agreement, AnaptysBio is entitled to tiered royalties on Jemperli sales, ranging from 8% to 25% based on sales milestones. However, the company has already monetized a portion of these royalties, with asset management firm Sagard set to receive the first $600 million. AnaptysBio estimates that Sagard will have received its full share between mid-2027 and Q2 2028.

The royalty-focused entity will also benefit from potential revenues from imsidolimab, a phase-3-stage pustular psoriasis drug licensed to Vanda Pharmaceuticals. This agreement could yield up to $35 million in milestone payments and a 10% royalty on net sales.

Biopharma Pipeline Company to Advance Clinical Programs

The second company resulting from the split will retain AnaptysBio's current pipeline and will be led by current CEO Daniel Faga. This entity will focus on advancing several key clinical programs:

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

The biopharma pipeline company is expected to have sufficient capital to fund operations for two years following the separation.

Strategic Rationale and Timeline

CEO Daniel Faga explained the rationale behind the split: "Today's announcement to explore a separation of our wholly owned biopharma programs from our royalty assets is intended to provide investors with the opportunity to realize and enhance the potential value of two distinct sets of assets."

The company is also exploring strategic options for rosnilimab, including securing a global partnership or independently advancing one phase 3 indication.

The separation of the two companies is anticipated to be completed by the end of 2026, with the royalty-focused entity operating with minimal infrastructure and staff.