Intensity stock rating cut to Hold by Brookline Capital

On Monday, Brookline Capital Markets revised its stance on Intensity Therapeutics , Inc. (NASDAQ:INTS), moving from a Buy to a Hold rating. The firm has also chosen to suspend its price target for the company. The stock, currently trading at $0.41, has experienced significant pressure, falling nearly 92% over the past year and showing signs of oversold conditions according to InvestingPro technical indicators. This decision comes as a result of Intensity Therapeutics’ limited financial runway, which is anticipated to last until the end of the second quarter, and the pending clarity on additional funding. With a current ratio of 0.63 and short-term obligations exceeding liquid assets, the company’s financial health score is rated as WEAK by InvestingPro, which offers 12 additional investment tips for this stock.

Intensity Therapeutics is currently engaged in a significant Phase 3 trial for its product INT230-6, which is being evaluated as a monotherapy for advanced soft tissue sarcoma. This global, open label, randomized, superiority trial is pitting INT230-6 against the standard of care for second and third line treatment in various soft tissue sarcoma subtypes, including leiomyosarcoma, liposarcoma, and undifferentiated pleomorphic sarcoma. The primary measure of the trial’s success is overall survival (OS).

The company aims to enroll 333 patients in the trial, with a 2:1 randomization favoring INT230-6 monotherapy over the physician’s choice of standard care. As of now, the INVINCIBLE-3 trial has contracted 32 sites and screened 25 patients across the U.S., Canada, Europe, and Australia. The expected timeline for completing enrollment is the first half of 2026, with data readouts contingent on the number of deaths occurring during the trial.

The downgrade by Brookline Capital Markets reflects concerns over Intensity Therapeutics’ financial position and the need for further funding to continue its clinical programs. As the company navigates these challenges, the investment community will be watching closely for developments regarding its funding and the progress of the ongoing Phase 3 trial. Despite the current market cap of just $6.38 million, analyst price targets range from $4 to $15, suggesting significant potential upside if the company can secure additional funding. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels.

In other recent news, Intensity Therapeutics announced a public offering aiming to raise approximately $2.35 million. The offering consists of over 3 million shares of common stock and accompanying warrants, priced at $0.75 per share and warrant. The proceeds are intended to support patient enrollment in the INVINCIBLE-4 Study and ongoing treatment in the INVINCIBLE-3 Study, among other corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) is the lead placement agent for this offering, with Brookline Capital Markets as co-placement agent.

Additionally, Intensity Therapeutics reported a net loss of $16.3 million for the year, or $1.17 per share, up from a net loss of $11.9 million the previous year. For the fourth quarter, the company experienced a net loss of $3.2 million, or $0.22 per share. The company is advancing its lead pipeline program, INT230-6, with 25 patients screened for the INVINCIBLE-3 Phase 3 study and the activation of eight sites in Europe for the INVINCIBLE-4 Phase 2 trial.

Benchmark has maintained its Speculative Buy rating on Intensity Therapeutics with a price target of $4.00. The company’s continued clinical progress, particularly in its trials for soft tissue sarcoma and triple-negative breast cancer, remains a key focus in its corporate developments.

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