Summary of AnaptysBio Conference Call Company Overview - **Company**: AnaptysBio - **Event**: 44th Annual JPMorgan Healthcare Conference - **CEO**: Dan Faga Key Points Company Separation - AnaptysBio plans to separate into two distinct businesses: BiopharmaCo and Royalty Management Co by Q2 2025 [1][2][34] - The separation aims to align different business strategies and investment philosophies, enhancing shareholder value [44][46] BiopharmaCo Developments - **Clinical Assets**: BiopharmaCo will focus on three clinical assets, primarily driven by AMB033, which is currently in phase 1b trials for Celiac disease and Eosinophilic Esophagitis (EoE) [2][12] - **AMB033**: A CD122 antagonist targeting IL-15 and IL-2 signaling, showing potential in treating Celiac disease and EoE [12][26] - **Market Opportunity**: Celiac disease has over 1 million diagnosed patients in the U.S., with a $5 billion market targeting those non-responsive to a gluten-free diet [16][17] Royalty Management Co Developments - The Royalty Management Co will manage royalties from Jemperli and Imsidolimab, with significant revenue potential from these assets [3][4] - **Jemperli**: Generated over $300 million in revenue in Q3 2025, with a tiered royalty structure starting at 8% and potentially reaching 25% at peak sales [4][5] - **Imsidolimab**: Expected approval in the U.S. later this year, with a 10% flat royalty from sales [6][7] Clinical Trials and Data - **Celiac Disease Trials**: The phase 1b trial will enroll 60 patients, focusing on preventing villus atrophy and healing damaged villi [22][50] - **EoE Trials**: A trial for EoE is set to initiate later this quarter, targeting a growing market currently dominated by Dupixent [25][54] - **Rosnilimab**: A phase 2b trial in rheumatoid arthritis showed positive results, with plans for a phase 3 program pending strategic partnerships or financing [28][29] Financial Position - AnaptysBio has $310 million in cash, sufficient to support ongoing trials and operations for the next couple of years [3][34] - The company anticipates paying down $250 million of its $600 million non-recourse debt by the end of 2025 [5][41] Market Competition and Strategy - Jemperli competes with Keytruda, with GSK focusing on differentiated data in women's cancers [11] - AnaptysBio's strategy includes targeting both IL-15 and IL-2 pathways, which may provide advantages over existing therapies [12][54] Litigation with GSK - Ongoing litigation with GSK regarding Jemperli is not expected to impede the separation of the biopharma business [39][40] - AnaptysBio claims GSK has breached contract terms, with a trial date set for July 2025 [41][43] Future Outlook - AnaptysBio is optimistic about the potential of its clinical assets and the upcoming separation, which is expected to create value for shareholders [46][49] - The company is exploring various financing options to support the advancement of its clinical programs [48][49] Additional Insights - The separation is seen as a strategic move to unlock value by allowing each entity to pursue tailored growth strategies [44][46] - The focus on both Celiac disease and EoE highlights AnaptysBio's commitment to addressing unmet medical needs in immunology [12][54]