INmune Bio stock downgraded by Raymond James after Alzheimer’s trial miss

Published 30/06/2025, 19:36
INmune Bio stock downgraded by Raymond James after Alzheimer’s trial miss

Investing.com - Raymond (NSE:RYMD) James downgraded INmune Bio Inc. (NASDAQ:INMB) from Outperform to Market Perform following disappointing Phase 2 trial results for the company’s XPro therapy in early Alzheimer’s disease. The stock has fallen over 14% in the past week, according to InvestingPro data, bringing the company’s market capitalization to approximately $49 million.

The Phase 2 study failed to meet its primary endpoint measuring cognitive function (EMACC) at 24 weeks in the overall modified intent-to-treat population of early Alzheimer’s patients screened for at least one biomarker of neuroinflammation. Despite the setback, InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 2.64 and more cash than debt on its balance sheet.

A subset analysis of patients with at least two biomarkers who were amyloid positive showed an effect size of 0.27 on the EMACC measure, approaching statistical significance, though the CDR secondary endpoint showed no meaningful effect in either the overall population or the subgroup.

Some secondary measures, including the Neuropsychiatry Inventory and pTau217 biomarker, demonstrated consistent but small effect sizes in the patient subgroup with greater neuroinflammation.

The drug demonstrated a favorable safety profile with injection site reactions being the only adverse event of note, but Raymond James cited "greater risk" to the XPro program moving forward, noting that the smaller trial size and shorter duration presented key challenges for demonstrating efficacy. Despite the downgrade, analyst targets remain optimistic, ranging from $20 to $30 per share. Get deeper insights and access to comprehensive financial analysis with a InvestingPro subscription, which includes exclusive ProTips and detailed research reports.

In other recent news, INmune Bio Inc. announced mixed results from its Phase 2 MINDFuL trial of XPro in early Alzheimer’s disease patients. While the primary cognitive endpoint was not met in the overall study population, positive outcomes were observed in a subgroup of patients with inflammation biomarkers. The company plans to present further analyses at an upcoming conference and seek Breakthrough Therapy designation from the FDA. Additionally, INmune Bio secured $19 million through a registered direct offering, with proceeds intended for general corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) acted as the sole placement agent for this transaction. In a separate study, XPro showed promise in reducing Alzheimer’s-like pathology in mice following traumatic brain injury. This research suggests targeting inflammation could mitigate Alzheimer’s risk. INmune Bio will host a conference call to discuss these developments, including the Phase 2 trial data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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