The business separation, expected to be completed by the end of 2026, will result in two new companies, one focused on biopharma operations and the other on royalty management.
AnaptysBio will split its current business into two publicly traded entities: one focused on biopharma operations, including advancing the original company’s clinical pipeline, and the other on royalty management.
The business separation, according to analysts at Leerink Partners, will help AnaptysBio crystallize the value of its royalties and highlight the worth of its other assets. “We believe this separation will sharpen investor focus on the company’s asset values by distinguishing between a royalty-backed cash flow vehicle and a clinical-stage pipeline company,” the analysts wrote in an investor note on Tuesday.
After the split, much of the work of the royalty-focused company will revolve around Jemperli, GSK’s PD-1 blocker indicated for endometrial cancer and solid tumors. Jemperli was discovered by AnaptysBio, which licensed it out to TESARO in March 2014 under a worldwide immuno-oncology antibody partnership. GSK acquired TESARO in December 2018 for $5.1 billion.
According to AnaptysBio’s Tuesday release, GSK has maintained a guidance of around $2.7 billion in peak Jemperli sales and has continued to assess the drug in other indications, including rectal cancer, colon cancer and head-and-neck squamous cell carcinoma. The royalty arrangement over Jemperli will extend “at least through expiration” of related patents, according to AnaptysBio’s statement.
The royalty entity will also manage payments from Vanda Pharmaceuticals for the IL-36 receptor inhibitor imsidolimab, being developed for generalized pustular psoriasis under a February 2025 contract. This new royalty spinout will be eligible for $35 million in milestone payments plus a 10% royalty on net sales, according to AnaptysBio.
Meanwhile, the resulting biopharma company will be dedicated to the development of its CD122 antagonist ANB033, being tested in a Phase Ib trial for celiac disease, and the BDCA2 modulator ANB101, which is currently being studied in healthy volunteers in a Phase Ia trial. At its launch, this new biopharma spinout will have enough money to keep it running for “at least two years,” the release stated.
Leading this new entity’s pipeline is the T cell depleter rosnilimab, which in May this year cleared the Phase IIb RENOIR study in rheumatoid arthritis. The asset is currently in a Phase IIb trial of ulcerative colitis, with data expected by the end of the year. AnaptysBio is currently reviewing its strategic options for rosnilimab, the company said on Tuesday, the results of which will determine how the value of the asset will be allocated between the two companies.
AnaptysBio has yet to disclose names for these two new entities, though current CEO Daniel Faga will lead the biopharma spinout. The company expects to complete this business split by the end of 2026.
