AnaptysBio stock zoomed higher Wednesday after announcing a $100 million offering that includes participation from pharma giant Sanofi.
The biotech company, which is working on treatments for immunological diseases, said it plans to offer more than 2.75 million shares of its common stock at a price of $36.50 a share. This represents a 10% premium to AnaptysBio's closing price on Aug. 13.
Current investor EcoR1 Capital led the offering, AnaptysBio said in a news release. Sanofi is a new investor. Notably, Sanofi's corporate arm — rather than its venture capital business — reached out to invest in AnaptysBio, Leerink Partners analyst David Risinger said in a report.
"This type of strategic investment is uncommon," he said.
AnaptysBio stock initially surged, hitting a five-year high. Shares closed up a smaller gain, however, up 4% at 34.65. Shares are now well above a profit-taking zone after breaking out of a cup-with-handle base with a buy point at 27.02 on July 10, according to MarketSurge.
AnaptysBio: $394 Million In Cash, Investments
AnaptysBio expects to reap $100 million in proceeds before deductions. The company plans to use the cash to fund general corporate purposes.
That could include funding Phase 3 efforts behind eczema drug ANB032 and rosnilimab, which is being tested in rheumatoid arthritis patients, Risinger said.
The company expects midstage study results for those drugs in December and the first quarter, respectively.
As of June 30, AnaptysBio had $394 million in cash and investments. The company expects to have a cash runway through year-end 2026.
Risinger kept his outperform rating on AnaptysBio stock.
Shares have a strong IBD Digital Relative Strength Rating of 97, which puts their 12-month performance in the leading 3% of all stocks.
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