After diving over 17% on January 2, shares in biopharma company Intelligent Bio Solutions (INBS) are back with a rally, surging as high as 76% on Monday afternoon.
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While there appears to be no immediate cause for the rally, investors might be paying attention again to Intelligent Bio’s plan to enter the U.S. market this year.
Intelligent Bio Plans to Enter the U.S. Market
While Intelligent Bio Solutions has been U.S.-listed since late 2020, its business has been historically concentrated in Australia and the United Kingdom. The biopharma company closed out the year with a bang as its shares surged over 132% on December 31.
The massive rally came after the firm announced it was entering a new strategic manufacturing partnership with India-based medical device contract manufacturing firm Syrma Johari MedTech to support and scale the production of its Intelligent Fingerprinting Drug Screening Reader.
The reader is a portable electronic reader that uses sweat on the fingertips to quickly detect the presence of commonly abused drugs. Intelligent Bio has said the technology could help to reduce expenses by cutting the need for external drug screening providers or specialist facilities.
Intelligent Secures Cost-Saving Manufacturing Deal
The New York-based company has previously noted that it expects this partnership to help result in production cost savings of over 40%. It noted that this could help improve its gross margin by about 20 percentage points.
While this deal had spurred a massive surge in the stock, Intelligent Bio’s shares sold off on Friday after it annnounced raising about $10 million through a private issuance of its shares and warrants. The firm said its proceeds were set aside to improve its liquidity and to further pursue its efforts in the non-invasive drug testing market.
What Is the Target Price for INBS?
Intelligent Bio’s shares largely hold a Neutral rating from TipRanks’ AI analysts, with the Gemini-3-pro deeming it an Underperform.
For instance, OpenAI-5.2 rates the stock as Neutral, with a score of 46 out of 100. The AI analyst gives the stock a price target of $7.50, implying more than 45% downside risk.
For the rating, the analyst pointed to the firm’s very large operating losses despite modest revenue growth.
