A Look at AnaptysBio's Valuation as Litigation With GSK Over Jemperli Royalties Draws Investor Focus

AnaptysBio, Inc. finds itself in the spotlight after launching a legal action against GSK’s subsidiary Tesaro regarding the collaboration agreement for Jemperli, their oncology drug. The ongoing dispute raises questions about future royalty streams and the company’s strategic direction.

See our latest analysis for AnaptysBio.

AnaptysBio’s share price has surged 215.6% year-to-date, with recent legal sparring over Jemperli bringing extra scrutiny and a sense of renewed momentum. After trading sideways in previous years, the stock’s current run has sharply outpaced its three-year total shareholder return of 54.4%. This indicates that market sentiment is shifting in a positive direction.

If you’re interested in what else is gaining ground in the healthcare space, you’ll want to explore See the full list for free.

With shares rapidly climbing and major legal news dominating the headlines, investors are left debating the real value at play. Is AnaptysBio’s valuation already reflecting expected future growth, or is there still a compelling buying opportunity?

Price-to-Sales of 6.9x: Is it justified?

AnaptysBio trades at a price-to-sales (P/S) ratio of 6.9x, which positions it as a better value option than both its direct biotech peers and the broader US biotech industry. With its last close at $42.16, this suggests the market is pricing AnaptysBio at a significant discount to sector norms.

The price-to-sales ratio is an important benchmark for biotech companies like AnaptysBio, especially given its unprofitable status and revenue-driven business model. It signals how much investors are willing to pay for each dollar of revenue, which is a critical measure in a sector where earnings may remain negative for extended periods.

At 6.9x, AnaptysBio’s P/S is well below the peer average of 13.9x and also undercuts the industry average of 13.1x. This highlights the market’s more cautious outlook or the potential for mispricing of future sales growth. However, compared to an estimated fair P/S of 2.4x, the current multiple does appear stretched and signals that, if re-rated, the market could move much lower.

Explore the SWS fair ratio for AnaptysBio

Result: Price-to-Sales of 6.9x (UNDERVALUED compared to peers, OVERVALUED compared to fair ratio)

However, risks such as the ongoing legal battle with Tesaro and uncertainties around clinical trial outcomes could quickly change investor sentiment and valuation dynamics.

Find out about the key risks to this AnaptysBio narrative.

Build Your Own AnaptysBio Narrative

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A great starting point for your AnaptysBio research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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