Summary of AnaptysBio FY Conference Call (December 03, 2025) Company Overview - **Company**: AnaptysBio (NasdaqGS:ANAB) - **Industry**: Biopharmaceuticals Key Points Business Segments and Developments - **Biopharma Operations**: - **ANB033**: A CD122 antagonist, initiated a trial for celiac disease in 2025, with data expected in Q4 2026. A second trial for eosinophilic esophagitis (EOE) is planned for 2026 [4][19]. - **Rosnilimab**: Advanced program for rheumatoid arthritis (RA) with positive phase 2b data from a study involving 424 patients. Plans to move into phase 3 development in 2026 with external funding [4][12]. - **Royalty Management**: - **Jemperli**: Expected to generate $1.4 billion in sales at GSK, with significant royalty rights. The company plans to separate the royalty management business from biopharma assets in 2026 [5][31]. Clinical Trials and Efficacy - **Rosnilimab**: - Phase 2 trial in ulcerative colitis (UC) showed good safety but insufficient efficacy to continue. The focus will be on RA with a phase 3 design that includes placebo-controlled trials [6][8]. - 69% of patients achieved low disease activity (CDAI) by week 14, with a placebo-adjusted delta over 20% [11]. - Safety profile was unremarkable, with no malignancies or serious infections reported [15]. - **ANB033**: - Targeting celiac disease with a focus on mucosal healing, measuring villus height to crypt depth ratio. The phase 1B trial will assess both gluten challenge and patients with severe mucosal injury [20][22]. - The market for celiac disease treatment is estimated to be multi-billion dollars, with over 250,000 patients in the U.S. not well controlled on a gluten-free diet [26]. Financial and Strategic Considerations - The company anticipates ending 2025 with $300 million in cash, including $75 million milestone from GSK upon Jemperli exceeding $1 billion in sales [36]. - Plans to separate the biopharma and royalty management businesses in 2026, ensuring each can operate independently and maintain value [29][35]. - The royalty management business is projected to become cash flow positive by Q2 2027 [31][37]. Legal and Regulatory Issues - Ongoing litigation with GSK regarding Jemperli, with AnaptysBio contending that GSK is in breach of obligations related to the asset's development [33][34]. - The separation plans are independent of the litigation, ensuring that the biopharma operations can execute their strategy regardless of the trial outcome [35]. Market Outlook - The biopharma segment is expected to capture significant value post-separation, with potential for growth in both ANB033 and Rosnilimab [40]. - The company believes there is substantial upside in the biopharma business that is currently undervalued by the market [40]. Additional Insights - The company is exploring strategic partnerships for RA development while protecting its royalty stream [9][16]. - There is a focus on broadening the ANB033 program with potential for multiple indications, including EOE [39]. This summary encapsulates the critical developments and strategic outlook for AnaptysBio as discussed in the conference call, highlighting both opportunities and challenges within the biopharmaceutical landscape.

Summary of AnaptysBio Conference Call Company Overview - **Company**: AnaptysBio (NasdaqGS:ANAB) - **Focus**: Development of biologics or antibodies for autoimmune diseases - **Clinical Programs**: Three clinical stage programs including Rosnilimab, AMV033, and AMV101 [1][2] Key Clinical Programs Rosnilimab - **Type**: Selective and potent depleter of pathogenic T cells - **Recent Development**: Positive phase 2b trial readout in arthritis with plans to advance into phase 3 trials for rheumatoid arthritis (RA) [1][24] - **Trial Details**: Robust study with 424 patients, showing high tolerability and sustained responses off-drug [24][30] AMV033 - **Type**: CD122 antagonist blocking IL-15 and IL-2 signaling - **Current Status**: Phase 1b trial initiated for celiac disease, with plans for a second indication in 2026 [1][2][7] - **Mechanism**: Designed to target autoimmune cells, particularly CD8 T cells in diseases like celiac disease and eosinophilic esophagitis (EOE) [8][20] AMV101 - **Current Status**: In phase 1a trials with results expected next year [1][32] Royalty Management Business - **Separation Announcement**: Company plans to separate into two businesses: biopharma operations and royalty management [2] - **Key Products**: - **Jemperli**: PD-1 antagonist with expected run rate of $1.4 billion to $1.5 billion; AnaptysBio anticipates substantial royalties based on sales tiers [3][4] - **Imsidolimab**: IL-36 receptor antagonist partnered with Vanda Pharmaceuticals, expected approval next year [6] Financial Overview - **Cash Position**: Expected $300 million cash at the end of the year [2] - **Royalty Structure**: Royalties range from 8% to 25% based on sales thresholds, with potential for significant revenue [4][6] Market Opportunity - **Celiac Disease**: Estimated 2 million patients in the US, with 250,000 potentially eligible for biologics by the 2030s [19] - **EOE Market**: Dupilumab, the only approved therapy, has generated $2 billion in sales, indicating a growing market for new therapies [20][23] Competitive Landscape - **Competitors**: Other companies like Novartis and Teva are also developing therapies targeting similar pathways in autoimmune diseases [9][10] - **Differentiation**: AnaptysBio's approach targets both inflammation and the underlying autoimmune response, which may provide advantages over existing therapies [15][22] Conclusion - **Future Plans**: AnaptysBio aims to advance AMV033 into further trials and move Rosnilimab into phase 3 next year, with a focus on addressing significant unmet needs in autoimmune diseases [31][32]

Summary of AnaptysBio Conference Call Company Overview - **Company**: AnaptysBio - **Industry**: Biotechnology Key Points and Arguments 1. Business Split Announcement - AnaptysBio plans to split into two entities: a royalty-focused company and a biopharma company, aimed at enhancing shareholder value and focusing on distinct investor interests [6][9][10] 2. Rosnilimab Development - Rosnilimab, a selective T cell depleter, completed a phase 2b trial in arthritis with 424 patients, showing significant efficacy and safety, with statistically significant results at week 12 [2][3] - The drug demonstrated low disease activity and remission rates that improved over six months and persisted for nine months post-treatment [2][3][18] 3. ANB033 Development - ANB033, a CD122 receptor antagonist, is currently in a phase 1b trial for celiac disease, with plans to announce a second indication in 2026 [4][30] - The trial design includes two cohorts: one undergoing a gluten challenge and another with significant mucosal damage not receiving gluten [28][29] 4. Jemperli Royalty Stream - AnaptysBio has a significant royalty stream from Jemperli, projected to reach a $1.5 billion run rate by year-end, with potential royalties of $390 million when GSK achieves peak sales of over $2.7 billion [4][5][11] - Jemperli is positioned as a market leader in frontline endometrial cancer, with expectations for substantial growth [7][12] 5. Market Expectations and Consensus - There is a notable discrepancy between GSK's sales guidance for Jemperli and Wall Street consensus, with GSK projecting far greater sales than the consensus estimate of $1.9 billion [10][11] - AnaptysBio believes the royalty from Jemperli alone is worth significantly more than its current market cap [12] 6. Future Plans and Funding - AnaptysBio plans to meet with the FDA to discuss the phase 3 program for Rosnilimab and explore various funding options for the RA program [19][20] - The company is considering strategic collaborations to support the development of its pipeline [20] 7. Safety and Efficacy in Trials - The safety profile of Rosnilimab is favorable, with less than 2% of patients discontinuing due to adverse events [18][23] - The company remains confident in the RA program despite a recent setback in ulcerative colitis trials, citing strong translational data supporting the drug's mechanism of action [21][22][24] 8. Market Opportunity in Arthritis - There is a significant market opportunity in the arthritis space, with over 500,000 patients in the U.S. on biologics and many progressing beyond TNFs [15][16] - Rosnilimab is expected to perform well in patients who have previously undergone multiple therapies [16][17] 9. Upcoming Data and Milestones - Data from the ANB033 trial is expected next year, which will provide insights into its efficacy and potential for future development [30] Additional Important Information - The company is well-capitalized, anticipating over $300 million in cash by year-end, including milestone payments from GSK [5]

Core Viewpoint - The market continues to focus on technology trends post-National Day holiday, with the pharmaceutical sector experiencing some capital outflow and relatively volatile performance, but the main logic of innovation remains intact [1] Group 1: Market Performance - After the National Day holiday, the overall market remains dominated by technology trends, while the pharmaceutical sector has seen a phase of capital outflow and is performing relatively weakly [1] - The Shanghai and Shenzhen 300 index fell by 0.51%, with the pharmaceutical and biological sector down by 1.20%, ranking 25th among 31 primary sub-industries [1] - The pharmaceutical sub-sectors showed mixed performance, with traditional Chinese medicine and pharmaceutical commerce rising by 1.51% and 0.64% respectively, while other sectors like medical devices and chemical pharmaceuticals saw declines [1] Group 2: Investment Recommendations - It is suggested to increase allocation to high-quality targets with key data readout catalysts, potential significant BD transaction expectations, and global potential during market dips [1] - In light of the long-term complexities of Sino-US relations, it is recommended to actively select low-valuation, well-structured, and fundamentally sound domestic demand sectors based on Q3 performance [1] Group 3: Q3 Performance Expectations - The pharmaceutical sector is expected to see continued performance differentiation in Q3 2025, with some leading innovative drug companies maintaining rapid growth due to optimized product pipelines and international progress [2] - The CRO/CDMO industry is anticipated to stabilize gradually, benefiting from global order recovery and improved operational efficiency [2] - The overall performance of the medical device sector is stable, with certain segments like imaging equipment showing signs of recovery, while some traditional Chinese medicine and medical service companies face short-term growth pressures [2] Group 4: Market Dynamics - Since the beginning of 2025, the pharmaceutical sector has achieved a return of 21.87%, outperforming the Shanghai and Shenzhen 300 index by 4.54 percentage points [4] - The current valuation of the pharmaceutical sector is 27.0 times PE, with a premium of 16.0% compared to the overall A-share market (excluding financials) [4] - The TTM valuation for the pharmaceutical sector stands at 30.9 times PE, which is below the historical average of 34.9 times PE, indicating a premium of 24.4% relative to the overall A-share market (excluding financials) [4]

Strategic Separation to Maximize Shareholder Value Sept. 29, 2025 Safe harbor statement This presentation and any accompanying oral presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to: the timing of the release of data from the Company's clinical trials, including initial data for rosnilimab's Phase 2 clinical trial in ulcerative colitis; expectations regarding the structure ...

Rosnilimab (PD-1 depleter and agonist) in Rheumatoid Arthritis (RA) - Rosnilimab is well-positioned for the ~$20 billion U S RA market, which hasn't had a new mechanism approved since 2012[14] - In b/tsDMARD-naïve patients, Rosnilimab shows JAK-like efficacy, with 64% achieving CDAI LDA, 48% achieving ACR50, and 23% achieving ACR70[28] - In b/tsDMARD-experienced patients, Rosnilimab surpassed the 6-month Target Product Profile (TPP) and is comparable at mid/high dose to JAKs in all-active H2H study[30] - 83% of Week 28 CDAI LDA responders were still in response at Week 34, demonstrating durable responses for at least 2-months off-drug[33] - Synovial biopsies show ~90% reduction of PD-1+ T cells in the target issue with 400mg/600mg doses[39, 40] Rosnilimab in Ulcerative Colitis (UC) - Initial Phase 2 data for Rosnilimab in Ulcerative Colitis is expected in Q4 2025[2, 78] - Enrollment is ongoing in the Phase 2 trial for moderate-to-severe UC, with interim 6-month data expected in Q4 2025[60] - The primary endpoint of the UC trial is the change in modified Mayo score (mMS) vs placebo at Week 12[62] ANB033 (CD122 antagonist) - Phase 1 trial of ANB033 in healthy volunteers has been initiated, with an R&D event planned for H2 2025[63, 78] - ANB033 is designed to reduce pathogenic T cells and NK Cells by potently inhibiting IL-15 and IL-2 biology[63, 65, 66] Financial Position - The company has a strong capital position with ~$383 million in cash as of Q1 2025, expected to provide a cash runway through YE 2027[7, 69, 76]

Core Viewpoint - The recent incident involving the articles published by "Meisi Oncology New Frontier" highlights the intensifying competition in the PD-1 monoclonal antibody market, indicating a shift towards a saturated market where established players dominate future growth opportunities [4][5][8]. Market Dynamics - The PD-1 monoclonal antibody market has transitioned from a "golden track" to a "red ocean" due to increased product launches leading to homogenization of competition [5][8]. - Major players like Merck's "K drug" (pembrolizumab) and Bristol-Myers Squibb's "O drug" (nivolumab) continue to show strong sales, with projected global revenues of approximately $29.5 billion and $10.1 billion respectively for 2024 [5][6]. - In China, BeiGene's tislelizumab leads with sales of 4.467 billion yuan, a 17.4% increase year-on-year, while Innovent's sintilimab and Junshi Biosciences' toripalimab also report significant growth [6][7]. Competitive Landscape - The market is characterized by a clear division between leading companies with established products and newer entrants struggling to gain market share [8][9]. - Companies that fail to differentiate their products or adapt to the competitive landscape are increasingly exiting the PD-1 market, with at least six companies having withdrawn in the past four years [9][12]. Future Trends - The emergence of PD-1 bispecific antibodies is seen as a potential game-changer, with products like Ivosidenib showing superior efficacy in clinical trials compared to traditional PD-1 monoclonal antibodies [14][15]. - The potential for PD-1 bispecifics to address "hard-to-treat" patient populations and improve outcomes in various cancer types is being recognized as a significant opportunity for innovation [16]. Broader Applications - Beyond oncology, PD-1 inhibitors are being explored for autoimmune diseases, with ongoing clinical trials for conditions like rheumatoid arthritis [19][20]. - The distinction between PD-1 inhibitors and PD-1 agonists is crucial, as the latter has not yet seen any products approved for market, indicating a potential area for future development [20].