On Friday, Jones Trading increased its price target for IN8bio Inc. (NASDAQ:INAB) shares to $6.50, up from the previous $5.00, while keeping a Buy rating on the stock. The revision follows IN8bio's announcement that all leukemia patients in their study achieved durable complete remission at the one-year mark post stem cell transplant. This result surpasses the standard of care relapse-free survival (RFS) rates of 50-80%.
The company's press release and presentation, referenced as Exhibit 1, highlight the significant clinical outcomes observed in the trial. Dr. Tania Jain from Johns Hopkins stated during the call that the 100% remission rate at one year is a strong indicator of the drug's clinical benefits. Notably, patients receiving a reduced dose of flu/cy typically see an RFS rate between 50-80%, but those with difficult-to-treat cytogenetic factors often have much lower RFS at the one-year threshold.
In response to these findings, Jones Trading has adjusted its model, increasing the probability of success (POS) in acute myeloid leukemia (AML) to 50% from the prior estimate of 30%. The firm's analyst cited these changes as the basis for the raised price target and reiterated the Buy rating for IN8bio Inc.
The announcement and the subsequent upgrade by Jones Trading underscore the potential of IN8bio's treatment in improving remission rates for leukemia patients, particularly when compared to existing therapies. The company's recent clinical success appears to have strengthened the confidence of analysts in its prospects.
In other recent news, IN8bio Inc. has maintained its Buy rating and a share target of $7.50 from Laidlaw, following the presentation of clinical study results. The company's Phase I study of INB-200 in treating glioblastoma (GBM) showed a consistent treatment effect over an extended period. This consistency is seen as a positive indicator for the future of the INB-400 study, an ongoing autologous trial. Further details are expected to be released at the Society for Neuro-Oncology (SNO) meeting in the fourth quarter of 2024.
The Phase 1 study of INB-200 demonstrated that 92% of patients treated surpassed the median progression-free survival (PFS) of seven months. The novel approach using INB-200, in combination with Temozolomide (TMZ), has shown a median PFS of over seven months in a cohort of patients, with follow-up data indicating a median of 11.7 months. IN8bio is currently advancing to a Phase 2 trial with INB-400, a related therapy, and continues to monitor long-term outcomes from the Phase 1 study.
Laidlaw has assigned IN8bio's stock a Buy rating, reflecting a positive trajectory for the company's stock based on current clinical developments.
InvestingPro Insights
IN8bio Inc. (NASDAQ:INAB) has captured the attention of investors and analysts alike with its recent clinical success, and the market has responded accordingly. The company's stock has experienced a strong return over the last month of 61.54%, signaling heightened investor optimism. This is supported by a significant return over the last week as well, with a 25.37% price total return. These metrics are particularly relevant following the positive clinical trial results and the subsequent upgrade by Jones Trading.
However, InvestingPro Tips suggest a cautious approach. The company is not profitable over the last twelve months, with a negative P/E Ratio of -1.89, and analysts have revised their earnings downwards for the upcoming period, indicating potential concerns about the company's short-term financial performance. With these insights in mind, investors may want to consider the broader financial context when assessing IN8bio's long-term potential.
For those seeking to delve deeper into IN8bio's financials and future prospects, additional InvestingPro Tips can be found at https://www.investing.com/pro/INAB. There are 6 additional tips available, which can provide further guidance on whether IN8bio's current momentum can be sustained. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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