H.C. Wainwright downgrades AnaptysBio after atopic dermatitis study disappoints

H.C. Wainwright downgraded AnaptysBio (ANAB) to Neutral from Buy with a price target of $19, down from $52, after the company announced topline results of the Phase 2 study evaluating ANB032 for treatment of moderate-to-severe atopic dermatitis. The primary endpoint at Week 14 was not met and secondary endpoints were not met either, noted the analyst, who is “not particularly surprised by the study failure” as the firm had always viewed this program as high-risk/high-reward. The firm has updated its model to lower its view of the odds of success for AD to 0% given today’s news of the Phase 2b study results and additionally is lowering its view of the odds for rosnilimab in rheumatoid arthritis to 40% from 50% and for ulcerative colitis to 30% from 40%.