AnaptysBio (ANAB): Evaluating Valuation After Phase 2 Ulcerative Colitis Trial Discontinuation and Cost Savings

AnaptysBio (ANAB) just shared results from its Phase 2 study of rosnilimab in moderate to severe ulcerative colitis. The drug was safe but failed to hit key efficacy goals, prompting the company to discontinue the trial.

See our latest analysis for AnaptysBio.

Over the past year, AnaptysBio’s share price has soared, with a 177% year-to-date rally and an 84% total return for shareholders. Most of the upside has built in recent months as anticipation grew ahead of key trial readouts. While today’s news tempers some momentum, the stock remains firmly in positive territory, demonstrating resilient investor enthusiasm despite mixed clinical outcomes.

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The question now is whether AnaptysBio’s recent decline creates a genuine buying opportunity, or if the market has already factored in both the risks and all future growth potential at the current price.

Price-to-Sales of 6x: Is it justified?

AnaptysBio currently trades at a price-to-sales ratio of 6x, substantially below sector peers and the US Biotechs industry average. With shares closing at $37.01, the market offers a notable discount on this key metric.

The price-to-sales ratio reflects how much investors are willing to pay for every dollar of the company’s revenue. For a biotech name like AnaptysBio, which is not yet profitable and remains in the development phase, this metric is especially important because traditional earnings multiples are often not meaningful.

Compared to the industry average price-to-sales ratio of 11.9x and a peer average of 10x, AnaptysBio appears attractively priced on this criterion. However, when measured against the estimated Fair Price-to-Sales Ratio of 2.3x, the stock looks expensive. This suggests the market may be pricing in continued revenue growth or future clinical successes despite recent setbacks. If the market’s expectations change, the multiple could move toward the fair ratio level.

Explore the SWS fair ratio for AnaptysBio

Result: Price-to-Sales of 6x (UNDERVALUED compared to industry/peers, OVERVALUED compared to fair ratio)

However, clinical setbacks or unexpected negative trial results could quickly reshape sentiment and put further pressure on AnaptysBio’s valuation in the near term.

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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