Stifel downgraded AnaptysBio (NASDAQ:ANAB) to “hold” from “buy” and cut its price target to $74 from $124 after disappointing clinical results from a competing asthma drug.
On June 21, shares of AnaptysBio fell $7.78, or 12%, to $59.24 in heavier than normal turnover.
Sanofi and Regeneron Pharmaceuticals said on June 21 that a monoclonal antibody drug, REGN3500, targeting a protein called IL-33, provided no additional benefit to asthma patients when added to the already approved drug, Dupixent.
AnaptysBio’s drug candidate, etokimab, is also an anti-IL-33 antibody and is being developed in similar indications as Dupixent and REGN3500.
“We are less confident etokimab will be meaningfully differentiated from Sanofi/Regeneron’s Dupixent, which we think is required for the stock to work,” writes analyst Derek Archila. “Therefore, we lower our probability of success to 50% from 55% as well as our etokimab market share assumptions.”
Mr. Archila said there was not much data in the Sanofi/Regeneron press release, “but we think this signals that etokimab could be more like a ‘me too’ type therapy that, realistically, is years behind Dupixent.”
