On Tuesday, H.C. Wainwright maintained a positive outlook on IN8bio Inc. (NASDAQ:INAB), reiterating a Buy rating and an $8.00 price target. The endorsement follows IN8bio's presentation of clinical data from its Phase 1 INB-200 study at the Society for Neuro-Oncology's annual meeting on November 25, 2024. The study involves gene-modified autologous chemotherapy-resistant γδ T cell therapy aimed at treating newly diagnosed glioblastoma multiforme (ndGBM).
The data, which had an October 18 cutoff, showed that 13 patients had been treated and five were still in follow-up. The patients were distributed across three dosing cohorts, receiving one, three, or six doses of 1x10^7 γδ T cells per dose, in combination with temozolomide maintenance chemotherapy. The company highlighted that 92% of evaluable patients experienced a median progression-free survival (mPFS) that exceeded the 6.9-month mPFS associated with the standard Stupp regimen of radiotherapy plus TMZ.
The update also revealed that out of the 10 patients who received multiple doses, five were still alive and in remission. This contrasted with the single-dose cohort, where none of the patients survived and remained in remission. Notably, a patient with IDH-mutant glioma has maintained progression-free survival for over 40.5 months, a significant improvement compared to the 27.7-month mPFS reported in the Phase 3 INDIGO study.
Furthermore, the analysis of relapsed tumors from two treated patients confirmed the infiltration of γδ T cells, suggesting the cell therapy's persistence and durability. INB-200 has been well-tolerated, with no dose-limiting toxicities, no treatment-related serious adverse events, and no treatment-related deaths reported.
Although IN8bio has de-prioritized its GBM program due to inadequate funding, the clinical data are seen as encouraging. The firm believes this could attract potential developmental partnerships, reaffirming their confidence in the stock with a Buy rating and an $8 price target.
In other recent news, IN8bio has reported promising results from its Phase 1 trial of INB-200 for glioblastoma, with 50% of patients receiving multiple doses remaining alive and in remission beyond the standard median survival. The company also announced its Q3 2024 financial results, which included no revenue and a net loss. Following these results, Mizuho (NYSE:MFG) Securities and H.C. Wainwright adjusted their price targets for IN8bio.
Moreover, IN8bio has decided to prioritize its INB-100 program for Acute Myeloid Leukemia (AML) and suspend its Glioblastoma programs. This decision was made after the successful private placement in October, which raised $12.4 million, extending the company's cash runway into 2026. The company also reported the departure of its Chief Medical (TASE:PMCN) Officer, Trishna Goswami, and a reduction in its workforce by approximately 49%.
These are recent developments for IN8bio, which also include encouraging results from its INB-100 program, with a 100% progression-free survival rate among patients. Laidlaw & Company and Jones Trading have maintained their Buy ratings on IN8bio, following these positive results. Despite the strategic shift and financial performance, both Mizuho Securities and H.C. Wainwright continue to see potential in IN8bio.
InvestingPro Insights
Despite H.C. Wainwright's optimistic outlook on IN8bio Inc. (NASDAQ:INAB), recent InvestingPro data paints a more challenging picture for the company. The stock's market capitalization stands at a modest $22.02 million, reflecting significant investor caution. This caution is underscored by the stock's dramatic price decline, with a 40.09% drop over the past three months and a staggering 69.92% fall over six months.
InvestingPro Tips highlight that IN8bio is quickly burning through cash and is not profitable over the last twelve months. This aligns with the company's decision to de-prioritize its GBM program due to inadequate funding, as mentioned in the article. Additionally, analysts do not anticipate the company will be profitable this year, which could explain the market's current valuation of the stock.
On a more positive note, one InvestingPro Tip indicates that two analysts have revised their earnings upwards for the upcoming period. This could potentially reflect the encouraging clinical data presented at the Society for Neuro-Oncology's annual meeting, which might improve IN8bio's prospects for attracting developmental partnerships.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into IN8bio's financial health and market position.
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