Innate Pharma stock initiated with Buy rating at BTIG on cancer therapy potential

Investing.com - BTIG initiated coverage on Innate Pharma (EPA:IPH) S.A. (NASDAQ:IPHA), currently trading at $2.03 with a market cap of $210 million, with a Buy rating and a price target of $8.00 on Monday. According to InvestingPro data, the stock appears to be slightly overvalued based on its Fair Value analysis.

The research firm highlighted two key near-term drivers for the clinical-stage biotechnology company, which develops therapies for cancer and autoimmune disease. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.6, while analysts expect both revenue and net income growth in the current year.

BTIG identified the novel Nectin-4 ADC IPH4502 as a primary catalyst, noting its potential to address post-Padcev treated bladder cancer patients and other Nectin-4 low tumor types, with initial phase 1 data expected in late 2025 or early 2026.

The second driver is the anti-NKG2A antibody monalizumab, partnered with AstraZeneca (NASDAQ:AZN), where positive data from the phase 3 PACIFIC-9 trial in stage 3 NSCLC could secure meaningful milestones and commercial royalties for Innate.

BTIG also noted additional early to late-stage assets in Innate’s pipeline, including CD20, CD123, and BCMA NK cell engagers plus anti-KIR3DL2, CD39, and CD73 antibodies, which represent potential opportunities beyond the firm’s current valuation model.

In other recent news, Innate Pharma has reported promising preclinical results for its cancer drug candidate, IPH4502. The data was presented at the American Association for Cancer Research Annual Meeting 2025. IPH4502, a topoisomerase I inhibitor Antibody Drug Conjugate targeting Nectin-4, has shown superior anti-tumor activity in preclinical models compared to existing treatments. These findings are significant for cancers such as urothelial carcinoma, triple-negative breast cancer, head and neck squamous cell carcinoma, and esophageal cancer. Notably, IPH4502 demonstrated effectiveness in patient-derived models resistant to enfortumab vedotin, a currently approved treatment for urothelial carcinoma. The drug also outperformed a clinical-stage Nectin-4-exatecan ADC in models with low Nectin-4 expression, indicating its potential broader clinical applicability. These developments suggest that IPH4502 could offer a more effective treatment option for patients with certain resistant cancers.

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