AnaptysBio Stock Under Pressure After Scrapping Eczema Drug Program: Retail Is Devastated

Shares of AnaptysBio Inc. remained flat in premarket trading Thursday after plunging over 32% in the prior session, marking the stock’s steepest single-day loss since March 2021. 

The collapse followed the company’s announcement that it would halt further investment in its experimental therapy ANB032 after the drug failed to meet primary and secondary endpoints in a Phase 2b trial for moderate-to-severe atopic dermatitis, commonly known as eczema.

Wednesday’s drop pushed AnaptysBio stock to its lowest closing level since December 2023, intensifying concerns among retail investors.

ANAB sentiment meter and message volume on Dec 12 premarket as of 7:30 am ET | source: Stocktwits

On Stocktwits, retail sentiment for AnaptysBio plunged into ‘extremely bearish’ levels before the bell on Thursday, following a 20% jump in message volume in the previous session.

AnaptysBio stated that it would redirect its resources and capital toward other investigational autoimmune therapies. 

The company plans to report top-line Phase 2b data for rosnilimab in rheumatoid arthritis by February 2025 and Phase 2 data for ulcerative colitis in the first quarter of 2026.

Wall Street analysts quickly adjusted their outlooks. H.C. Wainwright downgraded the stock to ‘Neutral’ from ‘Buy,’ slashing its price target from $52 to $19. 

The brokerage expressed disappointment but not surprise, citing the high-risk nature of the ANB032 program. It also lowered its probability of success estimates for rosnilimab in rheumatoid arthritis from 50% to 40% and for ulcerative colitis from 40% to 30%.

Wells Fargo analyst Derek Archila lowered the firm’s price target for AnaptysBio to $40 from $56 but maintained an ‘Overweight’ rating. 

Archila noted that while the Phase 2b trial’s failure aligns with their bear-case scenario, the shares’ current valuation offers a favorable risk/reward profile ahead of upcoming Phase 2 data releases.

AnaptysBio's stock has lost over 28% year-to-date as of Wednesday’s close, with the latest developments adding further pressure on its stock performance and investor confidence.

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