AnaptysBio — Fiscal First Quarter 2027 Earnings Summary

Financial Performance:

• Collaboration revenue was $30.3 million for the three months ended September 30, 2026, a decrease from $76.3 million in the same period of 2025, primarily due to $50 million in milestone revenue recognized in Q3 2025, partially offset by an 11% quarter-over-quarter increase in Jemperli royalties.
• Net income from continuing operations was $3.9 million ($0.13 per share) for the three months ended September 30, 2026, compared to $56.3 million ($2.02 per share) in the same period of 2025.
• General and administrative expenses from continuing operations were $11.6 million for the three months ended September 30, 2026, compared to $1.1 million in the same period of 2025, driven by $4.8 million in legal costs for the GSK and Tesaro litigation, audit and tax costs, and cost allocations.
• Research and development expenses from continuing operations were a negative $1.3 million for the three months ended September 30, 2026, compared to a negative $2.0 million in the same period of 2025, due to adjustments related to the closeout of clinical contracts.
• Cash, cash equivalents, and investments totaled $153.0 million as of September 30, 2026, a decrease of $11.1 million from $164.1 million as of June 30, 2026, primarily due to $15.5 million used for operating activities offset by $4.4 million from stock option exercises.
• Total liabilities related to the sale of future royalties were $249.8 million as of September 30, 2026, compared to $256.5 million as of June 30, 2026.
• Non-cash interest expense for the sale of future royalties was $18.7 million for the three months ended September 30, 2026, compared to $22.5 million in the same period of 2025.

Guidance and Future Outlook:

• Anaptys expects to achieve over $390 million in annualized Jemperli royalties payable to the company as early as 2029, based on GSK's peak monotherapy sales guidance of over $2.7 billion.
• The company anticipates the paydown of the remaining approximately $270 million non-recourse debt monetization to Sagard in the second half of 2027.
• FDA target action date (PDUFA) for Quimilza in generalized pustular psoriasis is December 12, 2026.
• Regulatory submission for Jemperli in Japan is expected in the first half of 2027, with decisions expected in Europe and China in the second half of 2027.
• A judgment in the litigation with GSK and Tesaro is anticipated in calendar Q4 2026 or Q1 2027.

Business Segments and Product Lines:

• Jemperli global net sales reached $1.0 billion (£753 million) for the nine months ended September 30, 2026, representing 29% year-over-year growth.
• Jemperli global net sales were $365 million (£273 million) for the three months ended September 30, 2026, representing 20% year-over-year growth.
• Anaptys receives royalties equal to 12% of Jemperli net sales between $1.0 billion and $1.5 billion in a given calendar year.
• Jemperli was approved in the U.S. as the first and only immunotherapy for adults with stage II and III MSI-H/dMMR locally advanced rectal cancer.
• GSK received FDA approval for Jemperli (dostarlimab) monotherapy in adults with stage II and III MSI-H/dMMR locally advanced rectal cancer in October 2026.
• AZUR-4 (Phase 2) for Jemperli plus chemotherapy in untreated stage III MMRp/MSS resectable colon cancer has a primary completion date in Q4 2026.
• AZUR-2 (Phase 3) and JADE (Phase 3) data for Jemperli are expected in 2028.
• Sagard is estimated to have accrued approximately $330 million in royalties and sales milestones through September 30, 2026.

Market and Competitive Landscape:

• No specific market share data or direct competitor comparisons were provided in the press release.

Risks and Challenges:

• The outcome of the litigation with GSK and Tesaro remains uncertain, with a judgment anticipated in Q4 2026 or Q1 2027.
• Forward-looking statements involve risks regarding the commercial success of licensed products, the ability to protect financial collaborations, and the ability to operate efficiently with limited staff.
• Actual results may differ materially from forward-looking statements due to risks and uncertainties described in the company's SEC filings.

Management Commentary and Tone:

• CEO Daniel Faga expressed confidence in Jemperli's long-term potential in monotherapy indications following its commercial growth and recent U.S. approval.
• Management stated a continued focus on protecting and returning the value of financial collaborations to shareholders while approaching the GSK/Tesaro judgment and the FDA target action date for Quimilza.

Other Key Points:

• The separation of AnaptysBio and First Tracks Biotherapeutics was completed on April 20, 2026; historical First Tracks assets, liabilities, and expenses were reclassified as discontinued operations beginning in Q2 2026.
• GSK announced that Anaptys estimates Sagard will have accrued ~$330 million in royalties and sales milestones through September 30, 2026.
• The company recognized $4.8 million in legal costs specifically for the GSK and Tesaro litigation within the three months ended September 30, 2026.
• Stock-based compensation expense for general and administrative purposes was $3.2 million for the three months ended September 30, 2026, compared to $0.5 million in the same period of 2025.