AnaptysBio(ANAB) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (unaudited) This section presents unaudited consolidated financial statements and detailed notes on business, accounting policies, and agreements Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $44,298 | $123,080 | | Short-term investments | $221,412 | $262,293 | | Total current assets | $291,906 | $431,876 | | Total assets | $335,250 | $483,834 | | Total current liabilities | $35,527 | $45,428 | | Liability related to sale of future royalties | $331,361 | $353,426 | | Total stockholders' (deficit) equity | $(44,733) | $70,868 | | Accumulated deficit | $(837,286) | $(759,327) | Consolidated Statements of Operations and Comprehensive Loss Consolidated Statements of Operations and Comprehensive Loss Highlights (in thousands): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Collaboration revenue | $22,263 | $10,971 | $50,034 | $18,150 | | Research and development expenses | $37,824 | $41,997 | $79,004 | $79,039 | | General and administrative expenses | $10,609 | $9,295 | $24,739 | $21,633 | | Loss from operations | $(26,170) | $(40,321) | $(53,709) | $(82,522) | | Non-cash interest expense for sale of future royalties | $(19,606) | $(10,953) | $(37,667) | $(17,270) | | Net loss | $(38,630) | $(46,660) | $(77,959) | $(90,596) | | Basic and diluted net loss per common share | $(1.34) | $(1.71) | $(2.62) | $(3.35) | Consolidated Statements of Stockholders' Equity Changes in Stockholders' Equity (in thousands) for Six Months Ended June 30, 2025: | Metric | Amount | | :--- | :--- | | Balance, December 31, 2024 | $70,868 | | Issuance of common stock from exercises of options and ESPP | $1,713 | | Net share settlement of restricted stock units | $(1,451) | | Repurchases and retirements of common stock | $(55,522) | | Stock-based compensation | $18,409 | | Net loss | $(77,959) | | Balance, June 30, 2025 | $(44,733) | Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (in thousands) for Six Months Ended June 30: | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(50,944) | $(58,575) | | Net cash provided by investing activities | $51,250 | $66,174 | | Net cash (used in) provided by financing activities | $(79,088) | $28,257 | | Net (decrease) increase in cash and cash equivalents | $(78,782) | $35,856 | | Cash and cash equivalents, end of period | $44,298 | $71,821 | Notes to the Unaudited Consolidated Financial Statements 1. Description of the Business - AnaptysBio, Inc. is a clinical-stage biotechnology company focused on developing innovative immunology therapeutics for autoimmune and inflammatory diseases[28] - The company's pipeline includes rosnilimab (Phase 2b for RA, Phase 2 for UC), ANB033 (Phase 1 for CeD), and ANB101 (Phase 1)[28] - Out-licensed antibodies include Jemperli (PD-1 antagonist) to GSK and imsidolimab (IL-36R antagonist) to Vanda Pharmaceuticals Inc., generating revenue from milestones and royalties[28] 2. Summary of Significant Accounting Policies - The unaudited consolidated financial statements are prepared in accordance with SEC rules and U.S. GAAP, including all known adjustments for fair presentation[30] - The company operates in one reportable segment, with its wholly-owned Australian subsidiary deregistered as of June 30, 2025, without material impact[31] - Management makes significant estimates for revenue recognition, accrued R&D expenses, stock-based compensation, and the liability related to future royalty sales[32][33] - Recently issued ASU No. 2023-09 (Income Taxes) and ASU No. 2024-03 (Income Statement Expenses) are being assessed for potential impact, with effective dates after December 15, 2024, and December 15, 2026, respectively[37][38] 3. Balance Sheet Accounts and Supplemental Disclosures Property and Equipment, Net (in thousands): | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Laboratory equipment | $6,719 | $6,715 | | Office furniture and equipment | $1,581 | $1,530 | | Leasehold improvements | $203 | $203 | | Less: accumulated depreciation and amortization | $(6,875) | $(6,599) | | Total property and equipment, net | $1,628 | $1,849 | Accrued Expenses (in thousands): | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued compensation and related expenses | $6,400 | $8,449 | | Accrued professional fees and other expenses | $982 | $839 | | Accrued research, development and manufacturing expenses | $22,335 | $30,213 | | Accrued for repurchases of common stock | $480 | $— | | Total accrued expenses | $30,197 | $39,501 | 4. Collaborative Research and Development Agreements - Under the GSK Agreement, the company is eligible for tiered 4-8% royalties on worldwide net sales of products like Jemperli and cobolimab, with Jemperli royalties increased to 8-25% under Amendment No. 3[42] GSK Collaboration Royalty Revenue (in millions): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $22.2 | $11.0 | | Six Months Ended June 30 | $40.4 | $18.2 | *All royalty revenue recognized is non-cash due to royalty monetization agreements. GSK Collaboration Milestones (in millions): | Program | Recognized through June 30, 2025 | May be recognized in the future | | :--- | :--- | :--- | | PD-1 (Jemperli/Dostarlimab) | $133.0 | $140.0 | | TIM-3 (GSK4069889/Cobolimab) | $13.0 | $260.0 | - The Vanda License Agreement for imsidolimab included an upfront payment of $10.0 million for the license and $5.0 million for existing drug supply[51] - Under the Vanda License Agreement, the company recognized $9.6 million in license revenue and $5.4 million in other income (related to drug supply) for the six months ended June 30, 2025, and is eligible for up to $35.0 million in future milestones and a 10% royalty on net sales[51][52] - The Centessa Agreement for the BDCA2 modulator antibody portfolio (ANB101) involved an upfront cash payment of $4.0 million and $3.0 million for manufacturing costs, expensed as in-process R&D[54] 5. Sale of Future Royalties - The Jemperli Royalty Monetization Agreement with Sagard provided $250.0 million in October 2021 and an additional $50.0 million in May 2024, in exchange for future Jemperli royalties and milestones up to a threshold of $600.0 million or $675.0 million[56][57] - As of June 30, 2025, Sagard has received $121.5 million in royalties and milestones, and the company retained rights to a $75.0 million sales milestone when Jemperli annual net sales exceed $1.0 billion[57][58] - The estimated effective interest rate for the Jemperli Royalty Monetization Agreement was 28.9% as of June 30, 2025, leading to non-cash interest expense of $37.2 million for the six months ended June 30, 2025[60][62] - The Zejula Royalty Monetization Agreement with DRI provided $35.0 million in September 2022 for future Zejula royalties, with an additional $10.0 million contingent on FDA approval for endometrial cancer by December 31, 2025[65] - Non-cash interest expense for the Zejula Royalty Monetization Agreement was $0.5 million for the six months ended June 30, 2025[68] 6. Fair Value Measurements and Available for Sale Investments - The company uses a fair value hierarchy (Level 1 and Level 2 inputs) for recurring fair value measurements of financial instruments[71][72][73] Assets Measured at Fair Value (in thousands) at June 30, 2025: | Category | Fair Value | Level 1 | Level 2 | | :--- | :--- | :--- | :--- | | Money market funds | $27,276 | $27,276 | $— | | Mutual funds | $11,894 | $11,894 | $— | | U.S. Treasury securities | $225,118 | $225,118 | $— | | Agency securities | $7,602 | $— | $7,602 | | Commercial and corporate obligations | $16,688 | $— | $16,688 | Total Available for Sale Investments (in thousands) at June 30, 2025: | Metric | Amount | | :--- | :--- | | Amortized Cost | $249,207 | | Gross Unrealized Gains | $243 | | Gross Unrealized Losses | $(42) | | Total Fair Value | $249,408 | - Unrealized losses on available-for-sale investments were less than $0.1 million for both June 30, 2025, and December 31, 2024, with no investments in a continuous loss position for greater than 12 months[76][79] 7. Stockholders' Equity - As of June 30, 2025, there were 27,972,997 shares of common stock issued and outstanding[80] - The Board authorized a $75.0 million stock repurchase program in March 2025, under which 2,853,836 shares totaling $55,522 thousand were repurchased through June 30, 2025, leaving $19.5 million available[81] - In August 2024, the company issued 2,750,498 shares of common stock through an underwriting agreement, generating approximately $93.9 million in net proceeds[83] 8. Equity Incentive Plans - The 2017 Equity Incentive Plan was amended in June 2024 and June 2025 to increase available shares by 2,700,000 and 1,650,000 respectively, with 2,504,515 shares available for future issuance as of June 30, 2025[84] - For the six months ended June 30, 2025, 1,745,653 stock options were granted, and 610,428 time-based Restricted Stock Units (RSUs) were granted[86][88] Total Stock-Based Compensation Expense (in thousands): | Category | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Research and development | $4,456 | $8,863 | | General and administrative | $4,783 | $9,546 | | Total | $9,239 | $18,409 | 9. Commitments and Contingencies - The company leases approximately 45,000 square feet of space in San Diego, California, under an operating lease agreement for a term of 124 months, commencing April 5, 2021[93] - As of June 30, 2025, the weighted-average remaining lease term is approximately 6.2 years, with a weighted-average discount rate of 4.0%[94] Future Minimum Annual Operating Lease Obligations (in thousands) at June 30, 2025: | Years Ending December 31, | Amount | | :--- | :--- | | 2025 | $1,278 | | 2026 | $2,607 | | 2027 | $2,685 | | 2028 | $2,766 | | 2029 | $2,849 | | Thereafter | $4,939 | | Total minimum payments required | $17,124 | 10. Segment Reporting - The company operates as one reportable segment, focusing on research and development activities for immunology therapeutics[97] - The Chief Executive Officer serves as the Chief Operating Decision Maker (CODM), managing business activities on a consolidated basis[98] Segment Financials (in thousands) for Six Months Ended June 30: | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Collaboration revenue | $50,034 | $18,150 | | Total R&D expenses | $79,004 | $79,039 | | Total G&A expenses | $24,739 | $21,633 | | Segment net loss | $(77,959) | $(90,596) | 11. Subsequent Event - The One Big Beautiful Bill Act (OBBBA) was signed into law in July 2025, introducing significant changes to U.S. tax laws, including current deduction of domestic research expenses and 100% bonus depreciation[101][102] - The company is evaluating the impact of the OBBBA but does not anticipate a change to its effective income tax rate or net deferred federal income tax assets due to maintaining a full valuation allowance[102] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes the company's financial condition, operating results, and liquidity, detailing changes in revenue, expenses, and cash flows Overview - AnaptysBio is a clinical-stage biotechnology company focused on developing immunology therapeutics for autoimmune and inflammatory diseases[112] - The company's pipeline includes rosnilimab (RA, UC), ANB033 (CeD), and ANB101 (BDCA2 modulator), alongside out-licensed assets Jemperli (GSK) and imsidolimab (Vanda)[112] Our Wholly Owned Product Candidate Pipeline - Rosnilimab, an IgG1 antibody targeting pathogenic T cells, completed a Phase 2b trial for moderate-to-severe rheumatoid arthritis (RA), achieving its primary endpoint and demonstrating clinically meaningful efficacy and a favorable safety profile[114][116][119] - A randomized, placebo-controlled Phase 2 trial for rosnilimab in moderate-to-severe ulcerative colitis (UC) is ongoing, with top-line data through Week 12 anticipated in the fourth quarter of 2025[120][121] - ANB033, a CD122 antagonist, initiated a Phase 1 clinical trial in healthy volunteers in October 2024, with a cohort in celiac disease (CeD) planned for the fourth quarter of 2025[122][123] - ANB101, a BDCA2 modulator antibody, initiated a Phase 1 clinical trial in healthy volunteers in March 2025, targeting plasmacytoid dendritic cells to inhibit interferon secretion[125][126] Collaborative Programs - Jemperli (dostarlimab), a PD-1 antagonist under the GSK collaboration, received multiple FDA and EMA approvals for advanced or recurrent endometrial cancer, including in combination with chemotherapy[130][131] - The Phase 3 COSTAR Lung trial for cobolimab (TIM-3 antibody) in combination with dostarlimab and docetaxel did not meet its primary endpoint of overall survival benefit in July 2025[132] - Imsidolimab (IL-36R antagonist mAb), licensed to Vanda, completed two registration-enabling global Phase 3 trials for Generalized Pustular Psoriasis (GPP)[133] Components of Operating Results - Collaboration revenue is derived from upfront license payments, R&D funding, and milestone and royalty payments under collaboration and license agreements[135] - Research and development expenses include external costs (CROs, CMOs, consultants), employee-related expenses, facilities, and license fees, expensed as incurred[136][137][138] - Non-cash interest expense for the sale of future royalties is imputed using the effective interest method, based on forecasted royalty and milestone payments[141] Critical Accounting Policies and Use of Estimates - The financial statements are prepared in accordance with U.S. GAAP, requiring management judgments and estimates[143] - No significant changes in critical accounting policies have occurred since the Annual Report on Form 10-K filed on February 27, 2025[143] Results of Operations – Comparison of the Three and Six Months Ended June 30, 2025 and 2024 Collaboration Revenue Collaboration Revenue (in thousands): | Period | 2025 | 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $22,263 | $11,000 | +102.4% | | Six Months Ended June 30 | $50,034 | $18,200 | +174.9% | - All royalty revenue recognized for both periods is non-cash, pursuant to the Royalty Monetization Agreements[145] - For the six months ended June 30, 2025, the company recognized $9.6 million in license revenue and $0.1 million in transition services revenue under the Vanda License Agreement, along with $5.4 million in other income from drug supply[146] Research and Development Expenses Total Research and Development Expenses (in thousands): | Period | 2025 | 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $37,824 | $41,997 | -10.0% | | Six Months Ended June 30 | $79,004 | $79,039 | -0.04% | - The decrease in R&D expenses for the three months ended June 30, 2025, was primarily due to a $2.5 million decrease in clinical expenses and a $3.4 million decrease in manufacturing expenses, partially offset by a $0.9 million increase in stock-based compensation[147] External R&D Costs by Program (in thousands) for Six Months Ended June 30: | Program | 2025 | 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Rosnilimab | $30,639 | $22,965 | +$7,674 | | ANB033 | $7,729 | $5,645 | +$2,084 | | ANB101 | $3,521 | $944 | +$2,577 | | ANB032 | $3,644 | $12,451 | -$(8,807) | | Imsidolimab | $(1,156) | $6,363 | -$(7,519) | General and Administrative Expenses Total General and Administrative Expenses (in thousands): | Period | 2025 | 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $10,609 | $9,295 | +14.1% | | Six Months Ended June 30 | $24,739 | $21,633 | +14.4% | - The increase in G&A expenses for the six months ended June 30, 2025, was primarily driven by a $2.5 million increase in transaction costs related to the Vanda License Agreement and a $0.9 million increase in personnel costs[151] Non-Cash Interest Expense for the Sale of Future Royalties Non-Cash Interest Expense for Sale of Future Royalties (in thousands): | Period | 2025 | 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $19,606 | $10,953 | +79.0% | | Six Months Ended June 30 | $37,667 | $17,270 | +118.1% | - The significant increase in non-cash interest expense was primarily due to the Jemperli Amendment, which increased the threshold amounts of aggregate Jemperli royalties and milestones to be received by Sagard[153][154] Interest Income Interest Income (in thousands): | Period | 2025 | 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $3,654 | $4,623 | -21.0% | | Six Months Ended June 30 | $8,067 | $9,207 | -12.3% | - The decrease in interest income was primarily due to lower investment balances and the timing of sales, maturities, and purchases of investments[155][156] Other Income (Expense), Net Other Income (Expense), Net (in thousands): | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $3,531 (income) | $0 (expense) | | Six Months Ended June 30 | $5,433 (income) | $(2) (expense) | - The increase in other income was primarily related to $3.5 million (Q2 2025) and $5.4 million (YTD 2025) recognized from existing drug supply transferred to Vanda under the Vanda License Agreement[157][158] Liquidity and Capital Resources - From inception through June 30, 2025, the company received $1.3 billion to fund operations, including $739.9 million from equity sales, $335.0 million from royalty sales, and $249.2 million from collaboration agreements[159] Cash, Cash Equivalents and Investments (in millions): | Date | Amount | | :--- | :--- | | June 30, 2025 | $293.7 | | December 31, 2024 | $420.8 | - The company believes its existing cash, cash equivalents, and investments will fund its current operating plan for at least the next 12 months[165] Funding Requirements - Primary uses of capital include third-party clinical and preclinical R&D services, manufacturing, laboratory supplies, compensation, legal, patent, regulatory, and general overhead costs[164] - The company may seek additional financing through equity or debt financings or through collaborations or partnerships[163] Cash Flows Summary of Cash Flows (in thousands) for Six Months Ended June 30: | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(50,944) | $(58,575) | | Net cash provided by investing activities | $51,250 | $66,174 | | Net cash (used in) provided by financing activities | $(79,088) | $28,257 | | Net (decrease) increase in cash and cash equivalents | $(78,782) | $35,856 | - Net cash used in financing activities for the six months ended June 30, 2025, was primarily due to $55.5 million for common stock repurchases and retirements, and $23.8 million for repayments of future royalties liability[170] Contractual Obligations - The company has agreements with vendors for goods and services, including manufacturing and development, which may include purchase obligations and termination obligations[172] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section confirms no material changes in market risk exposures, including interest rate, inflation, and foreign currency risks - No material changes in market risk, including interest rate risk, inflation risk, and foreign currency exchange risk, have occurred since the Annual Report on Form 10-K filed on February 27, 2025[174] Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The company's disclosure controls and procedures were concluded to be effective at a reasonable assurance level as of June 30, 2025[175] - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[177] PART II. OTHER INFORMATION Item 1. Legal Proceedings The company may face legal proceedings, accruing for probable losses, with litigation potentially impacting business - The company may be involved in legal proceedings arising in the ordinary course of business[179] - Estimates for resolution of legal and other contingencies are accrued when losses are probable and estimable[179] - Litigation can have an adverse impact due to defense and settlement costs, diversion of management resources, negative publicity, and reputational harm[179] Item 1A. Risk Factors This section outlines significant investment risks, covering product development, financial, third-party, regulatory, IP, and operational factors Summary of Risk Factors - Investing in the company's common stock involves a high degree of risk[180] - Key risks include product candidate development failures or delays, adverse events in clinical trials, difficulties in obtaining regulatory approvals, significant competition, and challenges in achieving market acceptance[181] - Other risks involve manufacturing complexities, macroeconomic impacts, limited operating revenue, the need for additional capital, dependence on collaborations, intellectual property protection issues, and stock price volatility[181][188] Risks Related to Discovery and Development of Our Product Candidates - Product candidates may fail or suffer delays at any stage of preclinical and clinical development due to scientific feasibility, safety, efficacy, or changing standards of medical care[183][185] - Results from preclinical testing or early clinical trials may not predict results in later phase trials, and unexpected adverse events or side effects could inhibit regulatory approval or market acceptance[185][191] - Inability to obtain or delays in obtaining required regulatory approvals in the U.S. or foreign jurisdictions would materially impair the ability to commercialize and generate revenue from product candidates[197] Risks Related to Our Financial Position and Capital Needs - The company has a limited operating history, no products approved for commercial sale, and has incurred significant operating losses, with an accumulated deficit of $837.3 million as of June 30, 2025[236][237] - Significant additional capital will be required to finance operations, including increased R&D expenses and commercialization costs, which may not be available on acceptable terms or at all[241][242] - Failure to raise additional capital could lead to delays, scaling back, or discontinuing development and commercialization efforts, and future equity sales could result in dilution for existing stockholders[246][248] Risks Related to Our Dependence on Third Parties - The company's business is highly dependent on existing collaborations with GSK and Vanda, and the success of these collaborations is uncertain, with potential for termination or de-prioritization of programs[249][250] - Reliance on third-party clinical investigators, CROs, CMOs, and consultants for discovery, manufacturing, preclinical studies, and clinical trials means less control over timing and quality, and potential for delays or unsuccessful outcomes[252] - Complete reliance on third parties for manufacturing drug supplies entails risks such as production difficulties, supply chain disruptions (including from macroeconomic conditions or foreign trade policies), and potential breaches or terminations of manufacturing agreements[227][231][254][257][258] Risks Related to Regulatory Approval of Our Product Candidates and Other Legal Compliance Matters - Failure to obtain regulatory approval in international jurisdictions would prevent marketing product candidates outside the U.S., reducing target market and commercial potential[259][260] - Approved drugs may face unfavorable third-party reimbursement practices and pricing regulations, which are essential for market acceptance and profitability, and are subject to significant uncertainty and cost containment initiatives[261][262][265] - Healthcare legislative reforms, such as the ACA and IRA, could increase the difficulty and cost of obtaining marketing approval, affect pricing, and impose rebates or other restrictions on drug products[270][272] - The company's relationships with customers and third-party payors are subject to anti-kickback, fraud and abuse, transparency, and other healthcare laws and regulations, with potential for criminal sanctions, civil penalties, and reputational harm for non-compliance[276][277] - Failure to comply with evolving privacy and data security laws (e.g., GDPR, CCPA) could result in significant fines, lawsuits, regulatory investigations, and damage to reputation[279][280][283] Risks Related to Intellectual Property - The company's success depends significantly on its ability to establish, maintain, and protect patents and other intellectual property rights, which is an expensive, time-consuming, and uncertain process[285][286][287] - The issuance, scope, validity, enforceability, and commercial value of patent rights are highly uncertain, and patents may be challenged, narrowed, or invalidated by third parties or changes in patent law[287][288][298] - Reliance on third parties requires sharing trade secrets, increasing the risk of misappropriation or unauthorized disclosure, which could impair the company's competitive position[300][302] - Involvement in lawsuits to protect or enforce intellectual property, or defending against infringement claims, could be expensive, time-consuming, and unsuccessful, potentially leading to loss of rights or significant damages[303][311][314] Risks Related to Managing Growth, Operations and Macroeconomic Conditions - The company must attract and retain highly skilled employees, particularly at the management level, facing significant competition for experienced personnel[319] - Expected growth in employees and operations, especially in product candidate development and clinical trials, may be difficult to manage effectively with limited financial resources and management experience[321] - The company is vulnerable to security breaches and cyber-attacks on its internal computer systems or those of third-party collaborators, potentially disrupting development programs, causing data loss, and incurring liability[322][324] - Operations are vulnerable to interruptions from natural disasters, power loss, terrorist activity, health epidemics, and other events beyond control, especially given geographically concentrated supply chains[325][326] Risks Related to Ownership of Our Common Stock - The market price of the company's common stock has been and may continue to be highly volatile, influenced by factors such as clinical trial results, regulatory actions, competitive products, and macroeconomic conditions[327][328][331] - Future sales and issuances of common stock or rights to purchase common stock, including under equity incentive plans, could result in additional dilution of stockholders' percentage ownership and cause the stock price to fall[334] - Provisions in the company's organizational documents and Delaware law might discourage, delay, or prevent a change in control or changes in management, potentially depressing the market price of common stock[340][341] - The company plans to use federal and state net operating loss (NOL) carryforwards to offset taxable income, but their ability to be utilized in future years could be limited by ownership changes under Section 382 of the Code or state-level suspensions[348][349] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities This section details the company's stock repurchase activity under the 2025 Repurchase Program - The company's board of directors approved a stock repurchase program on March 24, 2025, authorizing repurchases of up to $75.0 million of outstanding common stock[353] Stock Repurchase Activity (Three Months Ended June 30, 2025): | Period | Total Shares Repurchased | Average Price Paid per Share | Maximum Approximate Dollar Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | April 1, 2025 - April 30, 2025 | 1,007,397 | $18.19 | $51,303 | | May 1, 2025 - May 31, 2025 | 1,456,709 | $20.42 | $21,555 | | June 1, 2025 - June 30, 2025 | 96,832 | $21.45 | $19,478 | | Total | 2,560,938 | | | Item 3. Defaults Upon Senior Securities This item is not applicable to the company for the reporting period - This item is not applicable[355] Item 4. Mine Safety Disclosures This item is not applicable to the company for the reporting period - This item is not applicable[356] Item 5. Other Information This section discloses Rule 10b5-1 trading arrangements entered into by key executives, with the CEO's plan terminated - Daniel Faga (CEO) entered a Rule 10b5-1 trading plan on April 11, 2025, which was terminated on July 15, 2025, with no shares sold[357] - Dennis Mulroy (CFO) entered a Rule 10b5-1 plan on April 11, 2025, for up to 25,725 shares, scheduled to terminate by December 31, 2025[358] - Eric Loumeau (Chief Legal Officer) and Paul Lizzul (Chief Medical Officer) also entered Rule 10b5-1 plans in April 2025 for potential sales of common stock[359][360] Item 6. Exhibits This section provides an index of exhibits filed as part of the Quarterly Report, including certifications and XBRL documents - The exhibit index includes certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[364] - Inline XBRL documents (Instance Document, Schema, Calculation Linkbase, Label Linkbase, Presentation Linkbase, Definition Linkbase) are also included as exhibits[364] Signatures The report is officially signed by the President and CEO, and the CFO, on behalf of AnaptysBio, Inc - The report was signed by Daniel Faga, President and Chief Executive Officer, and Dennis Mulroy, Chief Financial Officer[369] - The signing date for the report was August 6, 2025[369]