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On Thursday, H.C. Wainwright reaffirmed its Buy rating on Innate Pharma (EPA:IPH) S.A. (NASDAQ: IPHA) with a steady price target of $11.00, despite Sanofi (NASDAQ:SNY)’s decision to end their collaboration on a key drug candidate. The company, currently valued at $167 million, maintains a strong financial position with more cash than debt and a healthy current ratio of 2.6x, according to InvestingPro data. Innate Pharma disclosed on April 23 that Sanofi (SNY; not rated) has opted to discontinue the partnership on SAR579/IPH6101, a CD123-targeting ANKET (Antibody-based NK cell Engager Therapeutics) in a Phase 2 study for the treatment of Acute Myeloid Leukemia (AML).
As a consequence of Sanofi’s withdrawal, Innate is set to reclaim the rights and the clinical data for IPH6101 by July 1. The decision, while unexpected due to the drug’s promising profile for relapsed/refractory AML, does not impact the valuation of the ongoing collaboration or the other ANKET-derived NK cell engagers in the partnership, such as IPH6401 (BCMA) and IPH62 (B7-H3), which continue to hold a combined value of $1 billion. With analysts projecting sales growth and profitability this year, investors can access detailed financial analysis and 8 additional key insights through InvestingPro’s comprehensive research reports.
In parallel with the reacquisition of IPH6101 rights, Sanofi has agreed to a €15 million equity investment in Innate Pharma. This move is interpreted as a strong endorsement of the ANKET platform’s potential by Sanofi. H.C. Wainwright analysts suggest that with the complete clinical data on IPH6101, Innate’s management will be well-positioned to make informed decisions about the drug’s future development. However, the firm has adjusted the expected development timeline for the program, projecting a two-year delay. Investors should note that the company’s next earnings report is scheduled for May 13, which could provide additional clarity on the development pipeline and financial outlook.
In other recent news, Innate Pharma has caught the attention of investors with the reaffirmation of a Buy rating from H.C. Wainwright, which also set a price target of $11.50. This endorsement comes as the company embarks on a new Phase 1 study evaluating IPH4502, an Antibody-Drug Conjugate targeting Nectin-4, for treating various solid tumors. The study aims to address common resistance issues faced by patients with locally advanced or metastatic urothelial carcinoma. H.C. Wainwright’s analyst, Swayampakula Ramakanth, highlighted that IPH4502 could potentially overcome resistance seen with other treatments, offering hope for patients with cancers such as breast, lung, and ovarian. The analyst noted the uniqueness of Nectin-4 as a target, suggesting it is underrecognized for its potential in treating multiple cancer types. Innate Pharma plans to release new preclinical data at a major cancer research meeting in 2024 and expects preliminary safety data from the ongoing study by the end of 2025. The confidence expressed by H.C. Wainwright underscores the potential impact of IPH4502 in the oncology field.
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