On Wednesday, H.C. Wainwright adjusted its price target for IN8bio Inc. (NASDAQ:INAB) shares, reducing it to $8.00 from the previous $12.50, while still maintaining a Buy rating on the stock. This change comes after IN8bio disclosed its third-quarter financial results for 2024 on Tuesday, which included a net loss of $0.15 per share, slightly outperforming the anticipated net loss of $0.17 per share by consensus estimates.
The biotechnology company, which specializes in developing cancer therapies, reported that it had not generated any revenue for the third quarter, aligning with market expectations. The firm's financial performance has led to an update in the financial model by H.C. Wainwright, projecting a continued lack of revenue for the entirety of 2024 and a net loss of $0.59 per share for the year.
The revised stock price target reflects a strategic shift in IN8bio's product timeline. H.C. Wainwright has removed projected revenues from glioblastoma multiforme (GBM) treatments in their model and has pushed back the expected launch of INB-100, the company's lead product candidate for the treatment of GBM, to the second half of 2027 instead of the previously anticipated second half of 2026.
Despite the adjusted financial forecasts and the delayed product launch, H.C. Wainwright continues to express confidence in IN8bio, sustaining a Buy rating for the company's stock. The firm's new price target of $8.00 per share takes into account the latest quarterly financials and the updated timeline for INB-100's market entry.
In other recent news, IN8bio has secured approximately $12.4 million through a successful private placement, which is expected to support the company's operations and clinical development programs through 2026. This includes the advancement of its lead candidate, INB-100, for Acute Myeloid Leukemia (AML) patients. The company has also reported encouraging results from its INB-100 program, with a 100% progression-free survival rate among patients.
In other recent developments, IN8bio has seen the departure of its Chief Medical (TASE:PMCN) Officer, Trishna Goswami, under a mutual agreement. The company has also amended the employment agreements of five key executives and reduced its workforce by approximately 49%, aligning with strategic shifts in its clinical trials.
Analyst firms Laidlaw & Company and Jones Trading have maintained their Buy ratings on IN8bio, following positive Phase I study results for INB-100. The company's INB-200 therapy has also shown positive results in Phase 1 studies, with 92% of patients surpassing the median progression-free survival of seven months. These are the latest developments in the company's ongoing efforts to advance its clinical programs.
InvestingPro Insights
Recent InvestingPro data provides additional context to IN8bio's financial situation and market performance. The company's market capitalization stands at $16.37 million, reflecting its current valuation in the biotech sector. Despite the recent price target reduction by H.C. Wainwright, InvestingPro Tips highlight that IN8bio holds more cash than debt on its balance sheet, which could be crucial for sustaining its research and development efforts in cancer therapies.
The company's stock has shown significant volatility, with a strong return of 55.44% over the last month, contrasting sharply with a 65.7% decline over the past six months. This aligns with the InvestingPro Tip indicating that the stock generally trades with high price volatility. Additionally, the tip suggesting that IN8bio is quickly burning through cash corroborates H.C. Wainwright's projection of continued losses and no revenue for 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for IN8bio, providing a deeper understanding of the company's financial health and market position.
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