AnaptysBio Details Plan to Split Into RoyaltyCo and Biopharma at TD Cowen Healthcare Conference

Core Insights - AnaptysBio is planning to separate its operations into two publicly traded companies: a royalty company focused on Jemperli and imsidolimab royalties, and a biopharma company concentrating on pipeline development [4][6]. Royalty Business - Jemperli is identified as the primary value driver, projected to exceed $1.4 billion in run-rate revenue by the end of 2025, with a growth rate in the mid-teens quarter over quarter [1][6]. - The royalty business operates with fewer than 10 employees and less than $10 million in annualized operating expenses, indicating high EBIT margins in the high 90% range [2]. Separation Plans - The company is on track to complete the separation of its biopharma operations from its royalty business within the next couple of months, retaining royalty rights on Jemperli and future royalties from imsidolimab [3][4]. - The final cash split between the two entities is still under evaluation [11]. Financial Overview - AnaptysBio started the year with approximately $310 million in cash, with the royalty business needing around $20 million for runway, while the biopharma side would require about $100 million to fund ANB033 through phase 2 trials [5][9][10]. - The royalty company is expected to be GAAP positive from the outset and cash-flow positive in the latter half of 2027 [9]. Pipeline Development - The biopharma company will focus on ANB033, ANB101, and rosnilimab, with ANB033 targeting celiac disease and eosinophilic esophagitis [15][18][19]. - Rosnilimab has shown promising results in rheumatoid arthritis, with plans to meet the FDA to discuss phase 3 parameters [14]. Legal Matters - An ongoing dispute with GSK regarding contractual obligations in combination development is noted, but the separation is stated to be unrelated to this litigation [13]. Market Opportunity - There are over 2 million people in the U.S. with celiac disease, with a significant portion being non-responsive to a gluten-free diet, representing a target population for ANB033 [17].