HC Wainwright analyst initiated coverage on AnaptysBio Inc ( ANAB ) , a clinical-stage biotechnology company focused on delivering immunology therapeutics.

AnaptysBio ( ANAB ) has a pipeline of checkpoint agonists, including rosnilimab, a PD-1 agonist in development for rheumatoid arthritis (RA) and ulcerative colitis (UC), and ANB032, a B and T cell lymphocyte attenuator (BTLA) agonist in development for atopic dermatitis (AD).

In Phase 1, rosnilimab showed a 90% reduction of T cell proliferation, inflammatory cytokine secretion and PD-1(high) T cells and demonstrated favorable safety.

Related: Skin Disease-Focused AnaptysBio Earns Analyst Upgrade On Positive Outlook For Clinical Triggers.

HC Wainwright initiated with a Buy rating and a price target of $55.

Targeting PD-1 high-expressing cells has been clinically derisked as a mechanism of action against rheumatoid arthritis through positive Phase 2 data from Eli Lilly And Co’s peresolimab.

While peresolimab for rheumatoid arthritis has shown encouraging results, there may still be potential for improved agonist potency.

HC Wainwright suggests that rosnilimab might have a better efficacy profile than peresolimab.

They expect that the topline data from the Phase 2b trial of rosnilimab in rheumatoid arthritis, due in mid-2025, could surpass the efficacy results seen in peresolimab’s Phase 2a trial.

If rosnilimab shows JAK-like efficacy without safety concerns, HC Wainwright believes it could see substantial uptake even in the crowded UC market. They anticipate topline data in the first half of 2026, which could be a major catalyst.

ANB032 is a more high-risk/high-reward asset, given that historical studies with BTLA agonists were not positive, although these assets did not have membrane-proximal epitope binding and had weak agonist activity.

Gilead Sciences Inc ( GILD ) has expanded the GS-0272 (BTLA agonist) Phase 1b study in rheumatoid arthritis (RA) from 48 to 87 patients, suggesting potential activity. This development boosts confidence in ANB032.

The analyst writes that expectations for topline Phase 2 data by the end of 2024 for AD are low, which could lead to significant upside potential, if positive.

Price Action: ANAB stock is up 3.26% at $34.80 at the last check on Monday.