Street Calls of the Week
Investing.com - Leerink Partners initiated coverage on Imagene Bio (NASDAQ:IMA) with an Outperform rating and a $30.00 price target on Friday. The stock currently trades at $32.37, having gained 43% over the past year according to InvestingPro data.
The research firm cited the company’s lead asset IMG-007, a non-depleting anti-OX40 monoclonal antibody, as a potential blockbuster treatment for atopic dermatitis. Leerink noted that early clinical data for IMG-007 suggests compelling efficacy at Week 16 compared to Dupixent. The company maintains strong financial health with an "GREAT" overall score on InvestingPro’s comprehensive assessment system.
Leerink calculated Imagene Bio’s fully-diluted market cap at approximately $86 million, with an enterprise value of -$52 million using estimated net cash of about $138 million as of September 30. The firm views the shares as "dramatically undervalued," particularly following a selloff after disappointing results from competitor Sanofi’s amlitelimab on September 4. This assessment aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued, with healthy financials including a strong current ratio of 3.83 and manageable debt-to-equity of 0.87.
Imagene Bio was formed through the merger of Inmagene and IKNA, which closed on July 25, 2025. The company raised $75 million and management anticipates its cash runway to extend through 2027.
Leerink models a 2030 launch for IMG-007, with 2040 estimated unadjusted peak sales of $2.1 billion, assigning a 50% probability of success in atopic dermatitis, resulting in risk-adjusted sales of approximately $1.1 billion in that indication.
In other recent news, ImageneBio, Inc. announced significant organizational and structural changes. The company reported the resignation of Chief Financial Officer Jotin Marango, effective October 20, 2025, and stated that his departure was not due to any disagreement with the company. In response, the board appointed CEO Kristin Yarema as interim principal financial officer, though details regarding the duration of this interim role were not disclosed. Additionally, the board approved a 2025 Inducement Plan to offer equity awards to new employees, reserving 589,585 shares for this purpose. This plan aims to attract individuals who have not previously been employed by the company or are rejoining after a break. Furthermore, Ikena Oncology announced a 1-for-12 reverse stock split and a rebranding to ImageneBio, Inc., effective July 28, with trading to continue under the new ticker symbol "IMA." This reverse split will reduce the outstanding shares from approximately 48.2 million to about 4 million, although the number of authorized shares will remain unchanged. These developments represent a strategic shift in ImageneBio’s operational and financial framework.
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