IN8bio refocuses on AML trial, cuts workforce by 49%

NEW YORK - IN8bio, Inc. (NASDAQ:INAB), a biopharmaceutical company specializing in gamma-delta T cell therapies for cancer, has announced significant changes to its clinical programs and corporate structure. The company is prioritizing its INB-100 program for acute myeloid leukemia (AML) following promising trial results, while halting enrollment for its Phase 2 glioblastoma (GBM) trial, INB-400.

As of August 30, 2024, the INB-100 trial has seen a 100% progression-free survival rate among AML patients. The study is actively enrolling additional patients into the expansion cohort to reinforce these outcomes. IN8bio is also planning to add a control cohort for a more comprehensive future analysis.

Concurrently, the company has decided to suspend further enrollment in its INB-400 Phase 2 trial for GBM and will continue monitoring long-term remissions and overall survival for patients in both the INB-400 and the completed INB-200 trials. Efforts to find partnership opportunities for the solid tumor program are underway.

To align with these strategic shifts, IN8bio is implementing a workforce reduction of approximately 49%, affecting all functional areas at its New York City and Birmingham, Alabama locations. This reduction is expected to be completed in the third quarter of 2024, with one-time costs estimated at $0.3 million, primarily due to severance payments.

The company's CEO, William Ho, acknowledged the difficulty of the decision but stressed its necessity to focus on the most promising clinical data and reduce spending. He expressed gratitude to all employees for their contributions, emphasizing the company's commitment to developing novel cellular immunotherapies.

This announcement is based on a press release statement from IN8bio, Inc. and does not include any opinions or recommendations. The information presented is intended to provide an objective overview of the company's strategic realignment and its implications for its clinical programs and workforce.

In other recent news, biopharmaceutical company IN8bio, Inc. reported notable advancements in its cancer therapy trials. The company revealed that all acute myeloid leukemia patients treated with INB-100 in Phase 1 trials remain in complete remission, surpassing typical progression-free survival rates. IN8bio's INB-100 and INB-200 therapies have also moved into Phase 2 clinical development, with no significant cell therapy-related toxicities observed. Furthermore, the company's INB-400 program, a Phase 2 trial for front-line GBM treatment, is currently enrolling and treating patients at multiple U.S. cancer centers.

Laidlaw & Company maintained its Buy rating on IN8bio, following the announcement of positive Phase I study results for INB-100. Jones Trading also raised its price target for IN8bio shares, influenced by the company's announcement that all leukemia patients in their study achieved durable complete remission at the one-year mark post stem cell transplant. IN8bio reported that 92% of patients treated with INB-200 surpassed the median progression-free survival of seven months in their Phase 1 study. These recent developments underline the potential of IN8bio's treatments in improving remission rates for leukemia and glioblastoma patients.

InvestingPro Insights

In light of IN8bio, Inc.'s (NASDAQ:INAB) strategic shift in clinical programs, investors may find the latest financial metrics from InvestingPro particularly relevant. As of the latest update, IN8bio holds a market capitalization of $21.52 million, which reflects the market's current valuation of the company's potential. However, financial data suggests challenges ahead, with a negative price-to-earnings (P/E) ratio of -0.62, indicating that the company is not currently profitable.

The company's stock performance has also faced headwinds, with a 1-month price total return showing a decline of 36.7%, and a 6-month price total return reflecting a significant drop of 58.67%. This trend aligns with the company's recent announcement, as the market reacts to both the promising developments in the AML program and the suspension of the GBM trial enrollment.

InvestingPro Tips highlight several factors that investors should consider. IN8bio's balance sheet presents a mixed picture, with the company holding more cash than debt, which is a positive sign of liquidity. However, two analysts have revised their earnings upwards for the upcoming period, suggesting that there may be optimism about the company's future performance despite current challenges. It's important to note that analysts do not anticipate the company will be profitable this year, and the company has been quickly burning through cash, which could raise concerns about long-term financial sustainability.

For investors seeking a deeper dive into the company's prospects, there are additional InvestingPro Tips available that can provide more nuanced analysis. With the next earnings date set for November 8, 2024, keeping an eye on IN8bio's financial health and market performance will be crucial for stakeholders. For further insights and a comprehensive list of tips, interested readers can visit InvestingPro at https://www.investing.com/pro/INAB.

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