Leerink Partners analyst Daina Graybosch downgraded the rating on Innate Pharma to a Hold today, setting a price target of $2.00.
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Daina Graybosch’s rating is based on several critical factors impacting Innate Pharma’s outlook. The company’s decision to focus heavily on an antibody-drug conjugate (ADC) strategy, while sidelining their NK cell engager therapeutic platform, raises concerns due to the uncertain timeline for achieving clinical proof-of-concept results. This strategic shift, coupled with the inability to secure a partner for the co-development of lacutamab, adds to the uncertainty surrounding the company’s future prospects.
Additionally, financial challenges loom as Innate Pharma struggles with financing options for a Phase 3 study of lacutamab, which is crucial for accelerated approval. The company’s recent announcement of a 30% workforce reduction and changes in key leadership positions further contribute to the cautious outlook. Although there is potential in their lead ADC candidate, Nectin-4 targeting IPH4502, the anticipated updates may not be sufficient to generate significant market interest, leading to a Hold rating for the stock.
According to TipRanks, Graybosch is an analyst with an average return of -13.4% and a 35.66% success rate. Graybosch covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Merck & Company, and Summit Therapeutics.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $2.00 price target.