The Delaware Chancery Court dismissed Tesaro’s (a GSK subsidiary) anticipatory breach claim against AnaptysBio, Inc. (ANAB) on April 24, 2026. The court confirmed that AnaptysBio has never repudiated its Collaboration and Exclusive License Agreement with Tesaro, which governs the development and commercialization of the cancer drug Jemperli. By rejecting Tesaro’s request for any royalty reduction, the ruling preserves the existing royalty structure that generates significant cash flow for AnaptysBio.
AnaptysBio’s Q4 2025 earnings illustrate the financial importance of the Jemperli royalty stream. The company reported a net income of $49.6 million, a dramatic turnaround from the $39.3 million loss in Q1 2025. Earnings per share rose to $1.58, beating the consensus estimate of $0.92 by $0.66, while revenue reached $108.25 million, exceeding the $87.09 million forecast by $21.16 million. The earnings beat was driven by strong royalty sales from Jemperli and disciplined cost management, which offset the company’s prior losses.
Under the 2014 Collaboration Agreement, AnaptysBio receives tiered royalties on Jemperli sales: 8 % on net sales below $1 billion, 15 % on sales between $1 billion and $2.5 billion, and 25 % on sales above $2.5 billion. GSK reported $220 million in Q1 2025 sales for Jemperli and $785 million in sales through the first nine months of 2025, putting the drug on track to reach $1 billion in sales by year‑end. The court’s decision therefore protects a revenue stream that is already a significant contributor to the company’s top line.
AnaptysBio has filed its own complaint against Tesaro/GSK, alleging material breaches of the Collaboration Agreement. A trial on those claims is scheduled for July 14‑17 2026. The court’s ruling on the anticipatory breach claim removes a major legal threat and provides a clearer path for the company’s ongoing litigation strategy.
CEO Dan Faga said, "The Court's decision affirms what we have maintained from the beginning: Tesaro's anticipatory breach claim was baseless, and this ruling is an important validation of our efforts to protect our contractual rights to the Jemperli royalty stream for our shareholders." He added, "We are enforcing Tesaro/GSK's contractual duty to seek Jemperli's optimal commercial return, as well as enforcing our other contractual rights that Tesaro/GSK have materially violated, including by pursuing our right for reversion of Jemperli."
Investors responded positively to the legal developments. AnaptysBio’s shares are trading at $54.68, giving the company a market capitalization of $1.53 billion as of April 24, 2026. The court’s decision, combined with the company’s recent earnings turnaround, reinforces confidence in AnaptysBio’s royalty‑based business model and its strategic focus on managing financial collaborations for Jemperli and imsidolimab.
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