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On Tuesday, Piper Sandler analyst Ed Tenthoff upgraded ImmunityBio Inc (NASDAQ:IBRX) stock from Neutral to Overweight and increased the price target from $4.25 to $5.00. Tenthoff highlighted ImmunityBio’s development of ANKTIVA, t-haNK & M-ceNK cell therapies, and DNA vaccines aimed at enhancing the immune system’s ability to combat cancer.
ImmunityBio has seen a robust start with its ANKTIVA treatment for BCG unresponsive CIS non-muscle invasive bladder cancer (NMIBC), projecting sales of $83.5 million in 2025. Despite facing a setback when the FDA issued a Refusal to File (RTF) letter for ANKTIVA in BCG unresponsive papillary NMIBC, the company is moving forward with a Phase III QUILT-2.005 trial in BCG naive NMIBC, expecting to release data next year. InvestingPro analysis indicates the company is projecting 5.2% revenue growth for fiscal year 2025, though it’s currently burning through cash rapidly.
The company also anticipates filing a supplemental Biologics License Application (sBLA) for ANKTIVA in second-line non-small cell lung cancer (NSCLC) within the current year. Further bolstering its prospects, ImmunityBio was recently awarded the Regenerative Medicine Advanced Therapy (RMAT) designation for ANKTIVA and PD-L1 t-haNK cell therapy for metastatic pancreatic cancer, which Tenthoff notes could lead to label expansion by 2027.
Financially, ImmunityBio is reported to have pro forma cash reserves of $136.5 million and carries a debt load of $782 million. The company maintains a healthy current ratio of 2.22, indicating sufficient liquidity to meet short-term obligations. Tenthoff’s upgrade to an Overweight rating reflects a positive outlook on the company’s growth trajectory and potential market expansions. The new price target of $5 represents Piper Sandler’s revised valuation of ImmunityBio’s stock based on these developments. For deeper insights into ImmunityBio’s financial health and access to over 10 additional ProTips, consider subscribing to InvestingPro.
In other recent news, ImmunityBio, Inc. reported a significant increase in its first-quarter sales for 2025, with net product revenue estimated at approximately $16.5 million, marking a 129% rise from the previous quarter. This surge is partly attributed to a 150% growth in ANKTIVA’s unit sales volume, following the award of a permanent J-code. The company has also submitted a supplemental Biologics License Application (sBLA) to the FDA for ANKTIVA combined with Bacillus Calmette-Guérin (BCG) to treat non-muscle invasive bladder cancer (NMIBC) with papillary disease. However, ImmunityBio received a Refusal to File letter from the FDA regarding this application, prompting the company to seek a meeting to address the inconsistencies.
Additionally, ImmunityBio secured approximately $75 million through a registered direct offering, with the potential to raise an additional $90 million if warrants are fully exercised. Analyst firms BTIG and H.C. Wainwright have maintained their Buy ratings on the company’s stock, with price targets of $6 and $8, respectively, reflecting confidence in the company’s market position and future prospects. ImmunityBio’s ongoing efforts include advancing its clinical programs and addressing the FDA’s feedback to enhance its treatment options for bladder cancer.
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