Here's Why AnaptysBio, Inc. Stock Surged on Wednesday

MarketsMotley Fool

What happened

Shares of AnaptysBio, Inc. (NASDAQ: ANAB), a clinical-stage biotechnology company, rose 11.1% in midday trading on Wednesday before locking in a 9.4% gain to end the day. Investors appear excited about a recently announced engagement at the annual meeting of the American Academy of Dermatology.

Continue Reading Below

So what

On Saturday, Feb. 17, AnaptysBio will present data from a phase 2a atopic dermatitis (eczema) trial involving the most advanced candidate the company owns outright, ANB020. The novel new drug candidate inhibits interleukin-33 (IL-33), a mediator of skin-related disorders.

Since IL-33 acts upstream of IL-4 and IL-13, two proteins inhibited by Dupixent, there's a chance ANB020 could be far more effective at stopping inflammation than the recently launched drug. Dupixent is expected to generate peak annual sales exceeding $4 billion for partners Sanofi (NYSE: SNY) and Regeneron (NASDAQ: REGN).

Now what

AnaptysBio didn't reveal much in its release, but investors can probably look forward to positive data. The company plans to begin a big multi-center trial with between 200 and 300 eczema patients in the first half of the year. Beyond eczema, ANB020 is also in midstage trials for peanut allergies and eosinophilic asthma, both of which should read out in the first half as well.

While AnaptysBio funds development of ANB020 on its own, Tesaro (NASDAQ: TSRO) will fund a phase 3 ovarian-cancer trial with big implications for AnaptysBio. The study, slated to begin in the first half, will test Zejula in combination with TSR-042, a checkpoint inhibitor candidate Tesaro licensed from AnaptysBio.

10 stocks we like better than AnaptysBioWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and AnaptysBio wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 5, 2018

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends AnaptysBio. The Motley Fool has a disclosure policy.

Continue Reading Below