On Thursday, Mizuho (NYSE:MFG) Securities adjusted its outlook on IN8bio Inc. (NASDAQ: INAB), a biotechnology company focused on developing treatments for cancer. The firm lowered its price target for IN8bio shares to $2.00 from the previous $8.00, while still maintaining an Outperform rating on the stock.
The adjustment follows IN8bio's third-quarter results for 2024 and a strategic shift in the company's development focus. IN8bio has decided to prioritize its INB-100 program for Acute Myeloid Leukemia (AML) and to suspend its Glioblastoma (GBM) programs, which include INB-200 and INB-400.
This decision comes after IN8bio successfully raised $12.4 million, with a net of $11.6 million, from a private placement in October. This fundraising effort has extended the company's cash runway into the first quarter of 2026. The change in price target reflects the removal of GBM forecasts from Mizuho's model and accounts for the dilution resulting from the recent financing.
Despite the reduced price target, Mizuho continues to see value in IN8bio, particularly in the INB-100 program for AML. The firm believes that the potential of INB-100 is not fully recognized by the market and anticipates growing interest as IN8bio is set to present more extended follow-up data. The next update is expected in December at the American Society of Hematology (ASH) meeting. Moreover, IN8bio plans to add a control cohort to its studies, with data anticipated in the first half of 2025.
In addition to the focus on AML, IN8bio will present Phase 1 data for INB-200 in GBM at the Society for Neuro-Oncology (SNO) in November. This presentation will be part of a highly sought-after oral plenary session, which could highlight the significance of IN8bio's gamma-delta T cell approach in treating the challenging GBM condition. Mizuho suggests that this could attract potential partnerships, offering a chance for non-dilutive capital that is not currently factored into their financial model.
In other recent news, IN8bio Inc. reported a Q4 loss, leading H.C. Wainwright to adjust its price target for the company's shares from $12.50 to $8.00 while maintaining a Buy rating. The company reported no revenue for the third quarter of 2024, in line with market expectations. H.C. Wainwright projects a continued lack of revenue for the year and a net loss of $0.59 per share. Additionally, IN8bio has secured approximately $12.4 million through a private placement expected to support the company's operations and clinical development programs through 2026.
The company also announced the departure of its Chief Medical (TASE:PMCN) Officer, Trishna Goswami, under a mutual agreement, and reduced its workforce by approximately 49% to align with strategic shifts in its clinical trials. IN8bio also amended the employment agreements of five key executives.
Furthermore, the company reported encouraging results from its INB-100 program, with a 100% progression-free survival rate among patients. Analyst firms Laidlaw & Company and Jones Trading have maintained their Buy ratings on IN8bio, following positive Phase I study results for INB-100. These are the most recent developments for IN8bio.
InvestingPro Insights
Recent InvestingPro data provides additional context to IN8bio's current financial situation and market performance. The company's market capitalization stands at a modest $14.82 million, reflecting its early-stage status in the biotechnology sector. IN8bio's stock has shown significant volatility, with a strong 39.52% return over the last month, contrasting sharply with a 69.55% decline over the past six months.
Two key InvestingPro Tips are particularly relevant to the article's content. Firstly, IN8bio is "quickly burning through cash," which aligns with the company's recent $12.4 million fundraising effort to extend its cash runway. Secondly, analysts "do not anticipate the company will be profitable this year," underscoring the importance of the strategic shift towards the INB-100 program for AML and the potential for future partnerships.
These insights complement Mizuho's analysis, highlighting the financial challenges and market dynamics IN8bio faces as it pursues its revised development strategy. For investors seeking a more comprehensive understanding of IN8bio's prospects, InvestingPro offers 8 additional tips that could provide valuable insights into the company's financial health and market position.
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