Is ANAB a good stock to buy? We came across a bullish thesis on AnaptysBio, Inc. on TripleS Special Situations’s Substack. Since the thesis was published on June 15th, ANAB shares have pulled back as uncertainty over its GSK dispute and scrutiny of earnings boosted by a one-time tax benefit weighed on sentiment, creating a
Is ANAB a good stock to buy? We came across a bullish thesis on AnaptysBio, Inc. on TripleS Special Situations’s Substack. Since the thesis was published on June 15th, ANAB shares have pulled back as uncertainty over its GSK dispute and scrutiny of earnings boosted by a one-time tax benefit weighed on sentiment, creating a near-term hurdle after its standout run. In this article, we will summarize the bulls’ thesis on ANAB. AnaptysBio, Inc.’s share was trading at $48.64 as of October 29th 2026. ANAB’s forward P/E was 20.08 according to Yahoo Finance.
This isn’t the first time we see a biopharmaceutical company pitched as a great investment. ANAB shares gained 99.48% over the last 12 months. Comparable stocks like Mirum Pharmaceuticals and BioMarin Pharmaceutical gained 18.91% and 7.32%, respectively, during the same period. ANAB’s stronger rally may partly reflect growing royalty income from licensed medicines and efforts to separate those assets from its drug development business, making their value easier for investors to assess. Why are biopharmaceutical stocks rising and does ANAB’s pullback since May offer a second chance to buy after its standout run?
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In May, we published an article about the 10 Best Performing Healthcare Stocks So Far in 2026 and ANAB ranked 6th in that article. Btw, the #1 stock in that list returned 35.52% since then. So, hedge funds were right about their #1 pick but ANAB, which lost ground since then, was a disappointment. This article explains why hedge funds were bullish on ANAB. Before getting into our analysis, let’s take a look at the business and why some investors like the stock so much.
AnaptysBio, Inc. (NASDAQ:ANAB) is no longer a traditional biotech company built around expensive drug development. After moving its drug pipeline into a separate company called First Tracks Bio, ANAB has essentially turned into a small royalty business. Its main source of income is Jemperli, a cancer drug owned by GlaxoSmithKline (NYSE:GSK) that keeps growing in sales, along with a possible second royalty from a drug called imsidolimab.
The company now holds about $140 million in net cash, runs with fewer than 10 full-time staff, spends less than $10 million a year on operations, and already collects a royalty stream worth nine figures. The optimistic view on the stock depends on Jemperli continuing to grow, imsidolimab starting to contribute, a financial obligation to a firm called Sagard coming to an end, and an ongoing lawsuit against GlaxoSmithKline potentially adding extra value. In short, investors get a steadily growing royalty business as their safety net, with the lawsuit offering a chance at a much bigger payoff.
The optimistic case begins with Jemperli’s sales growth: $174 million in 2023, $598 million in 2024, $1.128 billion in 2025, and $313 million in just the first quarter of 2026. ANAB earns a percentage of these sales as royalties, and that percentage actually increases as sales climb higher, meaning the faster Jemperli grows, the more profitable each additional dollar of sales becomes for ANAB. GlaxoSmithKline expects Jemperli’s sales to eventually peak at $2.7 billion a year, and with patent protection lasting into the mid-2030s and more clinical trials underway that could expand its use, this royalty stream may have a long runway ahead.
This arrangement dates back to 2014, when ANAB licensed the drug (now called Jemperli) to a company named Tesaro, with terms that blocked Tesaro from developing competing drugs and required it to make a genuine effort to maximize Jemperli’s success. GlaxoSmithKline later bought Tesaro for $5.1 billion in 2019. In 2020, a dispute over a competing trial led to a lawsuit that was settled quickly, with ANAB receiving $60 million in cash, additional royalty rights, more than double its original Jemperli royalty rate, and a requirement that Tesaro disclose all current and future Jemperli trials. These same terms are now central to ANAB’s new lawsuit, which claims Tesaro broke the agreement again. In April 2026, a Delaware court dismissed a countersuit from Tesaro, preserving ANAB’s higher royalty rates after GlaxoSmithKline had argued for a reduction.
Perhaps the biggest near-term catalyst is the end of a financial obligation to Sagard, a firm that paid ANAB $250 million upfront in 2021 in exchange for a share of Jemperli’s royalties. Under this deal, a portion of ANAB’s Jemperli income goes to Sagard until Sagard collects $600 million in total; about half of that has already been paid, and the rest could be finished as early as mid-2027. Once that happens, nearly all future Jemperli royalties will flow directly to ANAB instead of being shared. Based on how similar royalty-focused companies are typically valued, this improved cash flow could support a share price of at least $80 by the end of 2027. Separately, ANAB also stands to earn a 10% royalty on global sales of imsidolimab, a psoriasis treatment licensed to Vanda Pharmaceuticals, whose regulatory approval application was recently accepted by the FDA; its patent protection extends into the 2040s (see when AnaptysBio’s royalties could fund shareholder returns).
The lawsuit against Tesaro and GlaxoSmithKline remains the most uncertain part of this story. ANAB claims Tesaro hid a competing clinical trial involving another cancer drug for roughly four years. It also argues that Tesaro exists only on paper, with no employees, office, or bank account, essentially functioning as an extension of GlaxoSmithKline itself. Because the original agreement prevents Jemperli’s rights from being handed over to GlaxoSmithKline, ANAB is also suing GlaxoSmithKline directly. In the most extreme outcome, ANAB could win back full control of Jemperli. A more likely result would be a cash settlement or damages, similar to what happened in 2020. Even if ANAB loses the case entirely, its growing royalty income and the upcoming Sagard payoff would remain unaffected.
Another risk for the stock is that Jemperli’s commercial growth falls short, weakening the royalty income presented as a safety net. ANAB has a lean cost structure, but it does not control the drug’s development, pricing, or marketing. Its latest filing warns that competing treatments and weaker insurance coverage could reduce Jemperli sales and royalties. If sales disappoint, ANAB would collect less income and could reach its higher royalty tiers more slowly. Lower receipts could also delay the Sagard payoff, pushing back the expected increase in cash available to shareholders. This would weaken the standalone valuation even without an adverse lawsuit outcome. In our opinion, the $80 target becomes harder to justify if Jemperli’s growth proves less dependable than the bullish case assumes.
Hedge fund positioning shows a mixed but fairly stable signal. As per our database, 34 hedge fund portfolios held AnaptysBio, Inc. at the end of the second quarter, up slightly from 33 in the previous quarter. This small increase suggests institutional investors remain broadly supportive of its royalty growth and lean cost structure, even as uncertainty remains around the Sagard payoff and legal outcome. By comparison, BioMarin Pharmaceutical (NASDAQ:BMRN) was held by 54 hedge funds, down from 62, PTC Therapeutics (NASDAQ:PTCT) was held by 44 hedge funds, up from 33, and Mirum Pharmaceuticals (NASDAQ:MIRM) was held by 52 hedge funds, down from 54. PTC Therapeutics stood out with the strongest increase in hedge fund interest, while AnaptysBio saw a modest gain and the other two companies faced pullbacks, suggesting institutional enthusiasm remained uneven across the group.
Short interest data also paints a fairly concerning picture for AnaptysBio, Inc. relative to its peers. About 39.67% of AnaptysBio, Inc.’s float is sold short, well above BioMarin Pharmaceutical Inc. at 6.24%, PTC Therapeutics, Inc. at 13.49%, and Mirum Pharmaceuticals, Inc. at 13.21%. This suggests AnaptysBio, Inc. is drawing considerably more skepticism than all three peers over its royalty growth and lawsuit, though favorable legal developments or faster Jemperli royalty growth could prompt short sellers to buy back shares and help push the price higher.
Valuation Analysis
ANAB’s EV/Revenue is 5.60x. PTC Therapeutics, Inc., BioMarin Pharmaceutical Inc., and Mirum Pharmaceuticals, Inc. trade at EV/Revenue multiples of 3.81x, 4.16x, and 9.54x, respectively. ANAB’s own EV/Revenue was 6.54x on December 31, 2025, making its current multiple approximately 14% lower, although its subsequent pipeline separation limits historical comparability. We believe the current valuation reflects expectations for growing Jemperli royalties alongside investor concerns about dependence on one drug, the remaining Sagard obligation, and uncertainty surrounding the GSK lawsuit. However, ANAB’s low operating costs support a premium to businesses with substantial drug-development expenses, provided its royalty income translates into stronger cash generation. ANAB’s Jemperli royalty revenue increased approximately 44% to $24.7 million in the first quarter of 2026, although payments directed to Sagard limit the cash currently retained by the company. We believe ANAB can justify its current valuation if continued royalty growth and the completion of Sagard payments increase cash available to shareholders without requiring a favorable lawsuit outcome. If Jemperli sales keep growing and the Sagard obligation ends as expected, the current valuation could offer an attractive entry point despite the risks surrounding its concentrated royalty business.
Previously, we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted Casgevy’s blockbuster potential, strong cash position, and gene-editing pipeline. CRSP’s stock price has appreciated by approximately 32.43% since our coverage. We believe ANAB’s current valuation could offer an attractive entry point if Jemperli royalties keep growing and the Sagard obligation ends as expected, increasing cash available to shareholders without relying on a favorable lawsuit outcome.
AnaptysBio is not on our list of the 40 Most Popular Stocks Among Hedge Funds. While ANAB could offer long-term upside if Jemperli royalties keep growing and the Sagard obligation ends as expected, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than ANAB that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.
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