IGM Biosciences (IGMS) AI Stock Analysis

• Market Cap: $66.95M
• Dividend Yield: N/A
• Average Volume (3M): 188.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: 25.77%
• EPS Growth: 32.56%
• Country: US
• Employees: 149
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -3.25
• Shares Outstanding: 34,388,420
• 10 Day Avg. Volume: 156,551
• 30 Day Avg. Volume: 188,617
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 26.55
• Price to Cash Flow (P/CF): -0.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.96
• Price Target Upside: 75.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

IGM Biosciences' overall score reflects its financial instability and negative corporate developments. The company's negative financial metrics, weak technical indicators, and strategic setbacks underscore significant risks. While it has a strong cash position, achieving profitability and strategic success remains crucial amid bearish market trends and valuation challenges.

Positive Factors

Business Prioritization

The collaboration with SNY on IgM agonist antibodies against inflammatory and autoimmune targets remains a top business priority and is making progress.

Collaboration Opportunities

The ongoing collaboration with Sanofi on a different IGM molecule is still active and may generate potential future milestones or royalties.

Strategic Evaluation

The company is evaluating internal and external opportunities to maximize value for shareholders and keep strategic options open.

Negative Factors

Program Discontinuation

The company discontinued all clinical development of its autoimmune franchise due to insufficient efficacy in meeting the required benchmarks.

Stock Downgrade

The decision to discontinue all further development of IgM-based T cell engager programs in autoimmune diseases has led to a downgrade of IGMS shares to Hold-rated.

Workforce Reduction

A significant reduction in workforce by 73% was implemented to preserve cash resources.

IGM Biosciences Business Overview & Revenue Model

Company Description

IGM Biosciences, Inc., a biotechnology company, develops Immunoglobulin M (IgM) antibodies for the treatment of cancer, infectious diseases, and autoimmune and inflammatory diseases. The company's lead product candidate is IGM-2323, a bispecific IgM antibody that is in Phase 2 clinical trials to treat patients with relapsed/refractory B cell Non-Hodgkin's lymphoma (NHL). It is also developing IGM-8444, an IgM antibody, which is in Phase 1 clinical trials for the treatment of patients with solid cancers; and IGM-7354, an anti-PD-L1 IgM antibody for the treatment of patients with solid and hematologic malignancies; IGM-2644, a bispecific T cell engaging IgM antibody targeting CD38 and CD3 proteins for the treatment of patients with multiple myeloma; and IGM-2537, a bispecific T cell engaging IgM antibody targeting CD123 and CD3 proteins for the treatment of patients with acute myeloid leukemia, myelodysplastic syndromes, and acute lymphoblastic leukemia. It has a collaboration and license agreement with Genzyme Corporation to generate, develop, manufacture, and commercialize IgM antibodies. The company was formerly known as Palingen, Inc. and changed its name to IGM Biosciences, Inc. in 2010. IGM Biosciences, Inc. was incorporated in 1993 and is headquartered in Mountain View, California.

How the Company Makes Money

IGM Biosciences generates revenue primarily through the development and potential commercialization of its novel IgM antibody therapeutics. The company may earn money from licensing agreements and partnerships with other pharmaceutical or biotechnology companies interested in leveraging its proprietary IgM technology. Additionally, IGM Biosciences could receive milestone payments, royalties, and research funding as part of these collaborations. Revenue generation is also contingent on successful clinical trials and regulatory approval, which would allow the company to market and sell its therapeutic products.

IGM Biosciences Financial Statement Overview

Summary

IGM Biosciences faces significant financial challenges typical for early-stage biotech firms. Persistent negative net income and operating losses, combined with negative equity, highlight financial instability. Despite some revenue growth, profitability is a concern, and the reliance on external funding underscores the financial risk.

Income Statement

IGM Biosciences exhibits a challenging financial situation with persistent negative net income and EBIT margins over the years. The company has shown some revenue growth, with a significant increase from the prior year, but profitability remains an issue as indicated by negative gross and net profit margins. The company is experiencing high operating losses, which is typical in the biotechnology industry where R&D expenses are substantial.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative equity, which poses financial risk. The company's equity ratio is negative, highlighting its dependence on debt financing. However, it maintains a substantial amount of cash and cash equivalents, which provides some liquidity cushion. The continued losses have eroded shareholder equity, which is a significant concern.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, reflecting continued cash burn typical for a biotech firm in development stages. However, there was a slight improvement in free cash flow compared to the previous year. Positive financing cash flow suggests reliance on external funding to sustain operations. The company must reach cash flow breakeven to ensure long-term viability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.68M	2.13M	1.07M	0.00	0.00
	Gross Profit
2.68M	-6.15M	-9.53M	-7.72M	-3.58M
	EBIT
-208.58M	-263.46M	-227.96M	-165.32M	-83.28M
	EBITDA
-208.58M	-253.36M	-221.88M	-157.44M	-77.78M
	Net Income Common Stockholders
-195.79M	-246.42M	-214.25M	-160.68M	-80.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.79M	337.68M	427.16M	229.54M	366.27M
	Total Assets
265.71M	423.41M	513.50M	298.13M	408.63M
	Total Debt
45.19M	40.51M	41.17M	28.76M	12.24M
	Net Debt
18.69M	-72.01M	-80.06M	-104.58M	-228.84M
	Total Liabilities
217.54M	220.18M	226.24M	53.22M	26.82M
	Stockholders Equity
48.17M	203.23M	-574.83M	-353.72M	-188.56M
Cash Flow		Free Cash Flow
-158.85M	-204.61M	-16.06M	-137.58M	-84.81M
	Operating Cash Flow
-153.00M	-192.23M	-5.85M	-124.34M	-67.30M
	Investing Cash Flow
64.16M	68.36M	-225.64M	14.82M	57.71M
	Financing Cash Flow
2.39M	115.07M	219.38M	2.48M	214.78M

IGM Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGMS, the sentiment is Negative. The current price of 1.12 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.33, and below the 200-day MA of 8.11, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 31.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IGMS.

IGM Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VERU	52 Neutral	$83.41M	―	-80.11%	―	-7.43%	69.03%
Sector *	48 Neutral	$6.26B	1.17	-46.80%	2.68%	17.23%	1.28%
TCRX	38 Underperform	$71.30M	―	-65.08%	―	-86.62%	―
ADAG	38 Underperform	$74.46M	―	-55.14%	―	-99.43%	-69.40%
AVTE	36 Underperform	$73.04M	―	-74.91%	―	―	14.71%
IGMS	29 Underperform	$66.95M	―	-155.76%	―	25.77%	32.56%
CABA	28 Underperform	$56.32M	―	-59.64%	―	―	-40.59%

IGM Biosciences Corporate Events

IGM Biosciences Halts Antibody Therapies, Cuts Workforce

IGM Biosciences announced a strategic update to halt the development of two antibody therapies, imvotamab and IGM-2644, for autoimmune diseases due to insufficient results and strategic considerations. As part of the restructuring, the company will reduce its workforce by 73% to preserve cash and is exploring internal and strategic alternatives to maximize shareholder value.