AnaptysBio quickly drops amid hearing on GSK/Tesaro contract breach

AnaptysBio ANAB fell 8% amid a hearing in Delaware over contract breach litigation with GSK and its Tesaro unit. GSK ADRs rose 2.4%.

The hearing in Delaware Chancery Court started at 1:30pm

San Diego, California-based AnaptysBio (ANAB) filed a lawsuit in Delaware Chancery Court last November, alleging that Tesaro, influenced by GSK (GSK), has violated their exclusive agreement signed in 2014.

At stake are hundreds of millions of dollars in payments that AnaptysBio ANAB is entitled to receive from GSK GSK as part of the collaboration under which the U.K. drugmaker is developing Jemperli as a monotherapy and in combination with other drugs for various tumors.

GSK GSK also announced in November that Tesaro has taken legal action in the same court, accusing AnaptysBio ANAB of breaching the agreement after the immunology drugmaker threatened to revoke Tesaro’s license for Jemperli due to alleged violations of the deal.

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