Leerink Partners downgrades Innate Pharma stock on shift to ADC strategy

Investing.com - Leerink Partners downgraded Innate Pharma S.A. (NASDAQ:IPHA) from Outperform to Market Perform on Thursday, slashing its price target to $2.00 from $10.00. According to InvestingPro data, the company currently trades above its Fair Value, with a concerning financial health score of 2.01 (FAIR).

The research firm cited Innate Pharma’s decision to relegate its proprietary antibody-based NK cell engager therapeutic (ANKET) platform to a secondary position, which overly concentrates the company’s outlook on an antibody-drug conjugate (ADC) strategy.

Leerink expressed concern about uncertain timing for generating clinical proof-of-concept outcomes from the ADC strategy, which creates risk for investors.

The downgrade was further influenced by Innate Pharma’s lack of success in finding a partner to co-develop lacutamab, one of its key drug candidates.

A looming financing overhang also contributed to Leerink’s reduced confidence in potential upside for IPHA shares over the next year, prompting the significant 80% reduction in price target.

In other recent news, Innate Pharma has caught the attention of BTIG, which initiated coverage of the company with a Buy rating. The research firm set a price target of $8.00, indicating confidence in the company’s potential. BTIG emphasized two key factors that could drive Innate Pharma’s progress in the near term. These factors relate to the company’s ongoing development of therapies for cancer and autoimmune diseases. The firm’s analysis suggests optimism for Innate Pharma’s future in these therapeutic areas. This development is part of a broader trend of interest in biotechnology firms advancing novel treatments. Investors may find this analyst coverage noteworthy as it reflects a positive outlook from a reputable source.

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