Fubotv earnings beat by $0.10, revenue topped estimates
On Tuesday, Rodman & Renshaw initiated coverage on INmune Bio Inc. (NASDAQ:INMB) with a Buy rating and set a price target of $23.00. The firm's analyst, Elemer Piros, provided insights into the valuation and risks associated with the biotechnology company, which is currently developing its fosgonimeton program.
Piros's valuation is based on a detailed analysis of the potential future cash flows from INmune Bio's fosgonimeton program. He estimates a net present value (NPV) of $750 million for the program, which translates to $23 per share. This figure is derived from a risk-adjusted, after-tax calculation using a 21% tax rate and a 15% discount rate, projecting potential cash flows through the year 2044. InvestingPro data shows the company maintains a healthy current ratio of 2.59, with liquid assets exceeding short-term obligations.
The analyst pointed out several factors that could prevent INmune Bio's shares from reaching the $23 target. One significant risk is the possibility that the company's leading drug candidate, XPro, might not demonstrate a substantial efficacy benefit or may be found unsafe. Such outcomes could lead to the discontinuation of the clinical programs and halt the commercial launch of the drug.
Another concern raised by Piros is the company's need for additional funds to complete the development of its clinical programs. Securing this financing is crucial for INmune Bio's continued progress and success in bringing their treatments to market.
Rodman & Renshaw's coverage initiation and price target announcement could influence investor sentiment towards INmune Bio. The company's stock performance in the near future may reflect market reactions to these insights and the perceived potential of the fosgonimeton program.
"In other recent news, INmune Bio Inc. has made notable strides in its operations. The company has extended its Rights Agreement until December 30, 2025, ensuring the protection of shareholder interests. In addition, the Compensation Committee approved new stock option grants for several company officers and non-employee directors.
The company also reported a net loss of $12.1 million for the recent quarter, with research and development expenses amounting to $10.1 million. Despite this, INmune Bio's cash reserves remain strong at $33.6 million, projected to fund operations until the third quarter of 2025.
Recent developments also include the completion of enrollment for the ADO2 Phase II trial of XPro in Alzheimer's patients and the anticipated start of a Phase II trial for treatment-resistant depression. Furthermore, the company has been actively pursuing mergers and acquisitions, particularly focusing on anti-amyloid programs. These are part of the recent highlights from INmune Bio's ongoing operations."
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