Zacks SCR, the small-cap division of highly regarded Zacks Investment Research, has announced that it is initiating coverage of INmune Bio, Inc. (NASDAQ: INMB), an immunology company focused on developing therapies that harness the body’s innate immune system to fight disease and valuing the company’s stock at $19.00/share.
Zack SCR is the latest research group to initiate coverage of the La Jolla, California-based biotech.
“Based on our probability adjusted DCF model that takes into account potential future revenues of INB03, XPro1595, and INKmune, INMB is valued at $19/share. This model is highly dependent upon continued clinical success of those compounds and will be adjusted accordingly based upon future clinical results.”
Source: Zacks Small Cap Research (Download)
The growing interest in INmune Bio (NASDAQ:INMB) is primarily due to its 3 promising therapies now in clinical trial.
2 of these, INBO3 and INKmune, target cancer;
the other, XPro1595, Alzheimer’s.
In addition, one of the world’s leading immunologists says the company’s Alzheimer’s therapy could lead to a breakthrough in the treatment of multiple sclerosis.
Readouts of Phase 1 clinical trial data for INB03 are expected by summer 2019. Enrollment in Phase 2 of INKmune clinical trials also starts this summer. Plans are to begin enrolling Alzheimer’s patients for Phase I clinical trial of XPro1595 by early to mid-summer.
A different path…
Unlike therapies pursued with little success by other researchers, those developed by INmune Bio (NASDAQ:INMB) focus on the innate “arm” of the immune system rather than the adaptive.
On June 4, 2019, the Washington Post published a story describing how scientists at Pfizer discovered that the use of the tumor necrosis factor (TNF) was associated with a 64% decreased risk of developing Alzheimer’s disease. Pfizer opted not to follow up this discovery because it deemed the chance for a successful clinical trial to be low..
INmune Bio, Inc. (INMB) is developing an inhibitor of soluble TNF for which it has received a $1 million grant from the Alzheimer’s Association to conduct a Phase 1 clinical trial in Alzheimer’s patients with mild to moderate disease. Targeting amyloid beta to treat AD has been a complete failure, and the results seen by Pfizer add additional evidence to support the idea that targeting inflammation may be important in treating and preventing the disease.
Source: Washington Post
Top Zacks analyst David Butz, Ph.D. calls INmune Bio (NASDAQ:INMB) one of the few companies developing therapies that work with the innate immune system.
David Butz, Ph.D. says his firm’s analysts are “excited by the company’s early clinical data” and believes that “the innate immune system is a currently untapped resource for extending the lives of cancer patients.”
One of the company’s two lead development products in the fight against cancer is INB03 – a protein biologic that works by inhibiting the activities of Myeloid-Derived Suppressor Cells (MDSC). These cells create a shield around the patient’s tumor; INB03 strips away this shield so that the body’s Natural Killer cells can attack it.
INBO3 is part of a class of drugs known as checkpoint inhibitors – the market for which is said to be $1 billion in the US alone. At present, existing drugs in this class work in only 25% of patients. If INBO3, proves effective, INmune Bio (NASDAQ:INMB) will likely dominate this market.
The other promising anti-cancer therapy is a product called INKmune™. It primes the body’s Natural Killer (NK) cells to attack cancer cells that might otherwise evade them – because of the uncanny ability of cancer cells to make themselves virtually invisible.
INKmune™ is expected to be especially important in destroying cancer cells left in the body after treatment by surgery or chemotherapy.
INmune Bio’s arsenal isn’t only for combatting cancer, however. It also contains a potential weapon against Alzheimer’s disease.
The company plans to use the grant to advance XPro1595 in a Phase 1 trial expected to start mid-year.
Through The Roof?
Should INmune Bio (NASDAQ:INMB) succeed in just one of its therapies, that’s where its stock would likely go. In biotech, it’s similar to when an oil company makes a discovery. The stocks go BIG.
But because stock in biotech companies can move on data alone, major movement could occur on the outcome of one of INmune Bio’s clinical trials for its therapies. And those are right around the corner.
How other micro-cap biotechs are faring
An Acquisition Magnet?
INmune Bio (NASDAQ:INMB) would also become a prime target for a buy out. Small, agile biotech companies that are developing disruptive technologies like INmune Bio are always targets for big pharma.
Big pharmaceutical companies don’t innovate – they acquire.
Xencor (XNCR), a pioneer in antibody drugs and INmune Bio’s largest shareholder, has an option to buy another 10% of the company could likely opt for the rest of it. Unless, of course, another deep-pocketed, big pharma company gets there first.
Billion Dollar Buyouts
There’ve been a lot of those in the immune-oncology space lately.
All of the companies bought were developing therapies and were acquired Pre-FDA approval. And every one was working along adaptive immune-oncology lines. Which, so far, haven’t worked.
Just imagine what big pharma would pay for a biotech with a therapy that did?
All of which in our opinion, makes INmune Bio (INMB) an immediate and unequivocal “buy.” But you might want to act fast. Before big pharma gets there.
More Than Making Money
This is one of those rare cases where there’s something even more important than that…
For if even one of the company’s new products proves safe and effective, the treatment of cancer or Alzheimer’s and the lives of millions of people would be forever changed. And the world would be changed … for the better.
If you’d like to be a part of that, while making a lot of money, we’d suggest you start researching INmune Bio now!
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