On Monday, ImmunityBio Inc (NASDAQ:IBRX) saw its price target increased by Piper Sandler from $5.00 to $6.00, while the firm maintained a Neutral rating on the stock. The adjustment follows the recent approval of ImmunityBio's Anktiva for the treatment of BCG-unresponsive non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ (CIS), with or without papillary tumors.
The new pricing strategy for Anktiva has been set at $35,800 per dose, which could lead to gross revenues of approximately $1.1 million for a complete induction and maintenance course. This pricing is notably higher compared to Adstiladrin, which is priced at around $240,000 for a full treatment course before adjustments. The financial viability of this strategy is being questioned, given ImmunityBio's current cash reserves and historical operating expenses.
ImmunityBio's current cash position, inclusive of a recent $100 million milestone, stands at $240 million. This figure is being scrutinized in light of the company's past operating expenses, which have averaged about $90 million per quarter over the last two years. Additionally, ImmunityBio faces approximately $75 million in interest payments for the remainder of the year. The launch and pricing of Anktiva could influence these financial considerations.
The firm's updated financial model takes into account the new pricing strategy for Anktiva, which has led to the revised price target. Despite the potential revenue from Anktiva, Piper Sandler remains cautious with a Neutral stance on ImmunityBio's shares. The firm's analysis suggests a complex financial situation that could be affected by the market's reception to Anktiva's pricing and the company's ability to manage its expenses and cash flow.
InvestingPro Insights
ImmunityBio Inc (NASDAQ:IBRX) has captured the attention of investors and analysts alike with its recent developments. Adding to the narrative, InvestingPro data provides a comprehensive snapshot of the company's financial health and market performance. The market cap of ImmunityBio stands at $4.98 billion, reflecting its substantial presence in the biotech sector. Despite a remarkable revenue growth of 159.17% over the last twelve months as of Q4 2023, the company's P/E ratio remains negative at -6.44, indicating that it is not currently profitable. However, the significant returns over the last week (48.79%), month (36.87%), and three months (101.37%) demonstrate a strong investor optimism, possibly buoyed by the recent product approval and the potential market opportunity it represents.
Two InvestingPro Tips highlight key aspects for potential investors: Analysts anticipate sales growth in the current year, which could be a positive sign for future profitability. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a degree of financial stability in the near term. For those interested in a deeper dive into ImmunityBio's financials and market performance, InvestingPro offers additional tips that could guide investment decisions. Readers can find these tips and more by visiting Investing.com's InvestingPro platform, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 12 more InvestingPro Tips available, investors can gain a more nuanced understanding of ImmunityBio's potential.
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