Shares of AnaptysBio (ANAB -1.12%) closed up 15% on Monday after the company reported fourth-quarter earnings and updated investors on its pipeline.
Since AnaptysBio doesn't have any drugs on the market, the financial results clearly weren't the thing that drove the stock higher. For the record, the biotech generated $8 million in revenue in 2019 through a milestone payment from GlaxoSmithKline (GSK 0.19%) for the start of a phase 2 clinical trial of TSR-033, a drug AnaptysBio licensed to Tesaro, which was subsequently acquired by GlaxoSmithKline. Anaptys lost $97.3 million for the year.
Instead, investors are likely jumping in ahead of the multiple potential events the biotech is expected to experience this year.
GlaxoSmithKline recently filed a marketing application for another drug in their partnership, dostarlimab, which will trigger a $10 million milestone payment when the Food and Drug Administration accepts the application. AnaptysBio is also eligible for a $20 million payment when the drug is approved by the FDA, which should happen this year. Once the drug is on the market, Anaptys will collect royalties of 4% to 8%.
AnaptysBio also expects data from two phase 2 clinical trials this year for its wholly owned drugs: etokimab for chronic rhinosinusitis (inflammation of the sinuses) and ANB019 for a skin condition called palmoplantar pustulosis. The etokimab data is expected in the first half of this year, while the ANB019 results are expected in the second half of the year. The company is also looking to expand its pipeline with the addition of two new drugs this year.
The cash from GlaxoSmithKline will help fund some of the development costs for AnaptysBio's pipeline. It'll be a few years before the company will be able to start generating revenue from one of its wholly owned drugs, but with $428.5 million in the bank, it has some time to work things out.