Bullish view reiterated

The analyst behind that note, Guggenheim's Yatin Suneja, reiterated his buy rating on AnaptysBio. He also maintained his $75-per-share price target, which is slightly more than double the stock's latest closing price.

Suneja's latest note on the biotech follows Guggenheim's hosting of a set of investor meetings with company management. In these, the pundit found several reasons to keep his positive take intact. He said a phase 2 clinical trial of AnaptysBio's investigational atopic dermatitis drug should produce a readout in December, with company officials apparently confident in the outcome.

Another factor giving Suneja cause for hope is global pharmaceutical company Sanofi's financial involvement in AnaptysBio. Last week, the biotech announced a $100 million stock offering, which it said "included participation" from its globe-spanning peer. In the analyst's view, this "signals high confidence from a pharma company in ANAB's pipeline."

(Potential) buyer, beware

Investors should always exercise care with biotech stocks, particularly those still in the clinical stage. Drug development is a long, arduous, and frequently expensive process that carries no guarantee of success; even products that test very well in early clinical studies have flopped when approaching the finish line.

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