AnaptysBio Announces Strategic Split into Biopharma and Royalty Management Companies

AnaptysBio, a San Diego-based biopharmaceutical company, has unveiled plans to separate its business into two distinct publicly traded entities by the end of 2026. This strategic move aims to sharpen investor focus on the company's diverse asset portfolio and potentially unlock greater value for shareholders.

Separation Strategy and Timeline

The proposed split will result in two companies: one focused on biopharma operations and clinical pipeline advancement, and the other dedicated to royalty management. This separation is expected to provide investors with a clearer view of AnaptysBio's assets by distinguishing between a royalty-backed cash flow vehicle and a clinical-stage pipeline company.

Daniel Faga, AnaptysBio's current CEO, will lead the biopharma spinout, which is set to launch with sufficient capital to fund operations for at least two years. The royalty management entity will operate with minimal infrastructure and staff, primarily overseeing existing agreements with pharmaceutical partners.

Royalty Management Company: Capitalizing on Jemperli Success

The royalty-focused spinoff will center its operations around Jemperli, a PD-1 blocking antibody discovered by AnaptysBio and now owned by GSK. Jemperli, indicated for endometrial cancer and solid tumors, has generated approximately $2.7 billion in sales for GSK.

AnaptysBio's royalty arrangement for Jemperli includes tiered payments:

• 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

It's worth noting that AnaptysBio has already monetized a portion of these royalties, with asset management firm Sagard set to receive the first $600 million. Analysts project Sagard will have received its full share between mid-2027 and Q2 2028.

The royalty entity will also manage payments from Vanda Pharmaceuticals for imsidolimab, an IL-36 receptor inhibitor being developed for generalized pustular psoriasis. This agreement, established in February 2025, could yield up to $35 million in milestone payments plus a 10% royalty on net sales.

Biopharma Company: Advancing a Promising Clinical Pipeline

The resulting biopharma company will focus on developing AnaptysBio's clinical-stage pipeline, which includes:

1. Rosnilimab: A PD-1 agonist that recently cleared a Phase IIb study in rheumatoid arthritis and is currently in a Phase IIb trial for ulcerative colitis.

2. ANB033: A CD122 antagonist in Phase Ib trials for celiac disease.

3. ANB101: A BDCA2 modulator currently in Phase Ia trials with healthy volunteers, targeted at autoimmune and inflammatory diseases.

AnaptysBio is currently reviewing strategic options for rosnilimab, including potential global partnerships or independent advancement into Phase III trials. The outcome of this review will determine how the asset's value is allocated between the two new companies.