Ikena Oncology (IKNA) AI Stock Analysis

• Market Cap: $59.84M
• Dividend Yield: N/A
• Average Volume (3M): 224.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -100.00%
• EPS Growth: 37.59%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 48,258,110
• 10 Day Avg. Volume: 569,913
• 30 Day Avg. Volume: 224,994
• PEG Ratio: -0.11
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.78
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 15.33
• Enterprise Value/Gross Profit: -417.10
• Enterprise Value/Ebitda: -0.16
• 1Y Price Target: $4.00
• Price Target Upside: 222.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ―

Ikena Oncology's overall stock score of 41.2 reflects significant challenges in financial performance, including declining revenues and negative cash flow, which weigh heavily on the score. Technical analysis shows lackluster momentum, while the valuation is unattractive due to negative earnings. Improvements in revenue generation and profitability are crucial for a better financial outlook.

Positive Factors

Merger and Acquisition

The merger with Inmagene Biopharmaceuticals is expected to provide the combined company with an estimated $175 million in cash to support development of the anti-OX40 antibody, IMG-007.

Product Development

IMG-007 has shown comparable efficacy to other OX40 therapies in development in atopic dermatitis, with a more favorable safety profile due to its non–T-cell-depleting design.

Negative Factors

Shareholder Value

Following the merger, current Ikena shareholders will own approximately 34.8% of the combined company, suggesting a combined company value of less than $300 million and enterprise value of below $120 million.

Ikena Oncology Business Overview & Revenue Model

Company Description

Ikena Oncology, Inc., a targeted oncology company, focuses on developing medicines tailored to biomarker-defined patient groups for specific unmet needs. Its lead targeted oncology product candidate is IK-930, an oral small molecule inhibitor of the transcriptional enhanced associate domain, transcription factor in the Hippo signaling pathway. It is also developing a small molecule inhibitor program against ERK5 in the RAS signaling pathway; IK-175, an oral inhibitor of aryl hydrocarbon receptor; and IK-007, an oral selective EP4 receptor antagonist for the treatment of microsatellite stable colorectal cancer. The company was incorporated in 2016 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Ikena Oncology makes money primarily through the development and commercialization of its proprietary drug candidates. The company generates revenue through partnerships and collaborations with other pharmaceutical companies, which may include milestone payments, research funding, and potential royalties on successfully developed and marketed drugs. Additionally, Ikena may earn income by out-licensing its drug candidates or technology platforms to other firms within the pharmaceutical industry. The company's revenue is also influenced by its ability to advance its drug candidates through clinical trials, obtain regulatory approvals, and successfully launch products into the market.

Ikena Oncology Financial Statement Overview

Summary

Ikena Oncology is struggling with profitability and revenue generation, impacting its income and cash flow statements negatively. The balance sheet shows some stability due to strong cash reserves and low debt, but historical negative equity highlights underlying financial challenges. The company needs to improve revenue generation and profitability to enhance financial health.

Income Statement

Ikena Oncology has faced declining revenues over recent years, with a revenue drop to zero in the latest period. The company consistently reports negative EBIT and net income, indicating profitability challenges. The lack of revenue growth and negative margins reflect financial instability.

Balance Sheet

The company maintains a strong cash position relative to its debt, with a low debt-to-equity ratio indicating manageable leverage. However, persistent negative equity in past years points to potential financial distress. The equity ratio has improved, yet the overall balance sheet strength remains modest.

Cash Flow

Ikena Oncology has improved its free cash flow from prior periods, but it remains negative, indicating continued cash burn. The operating cash flow is negative but has shown improvement, suggesting better cash management. Despite these improvements, reliance on external financing persists.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	9.16M	15.62M	30.98M	9.19M
Gross Profit	0.00	8.14M	13.58M	-16.12M	-35.65M
EBITDA	-48.59M	-74.40M	-70.15M	-33.59M	-44.22M
Net Income	-49.23M	-68.17M	-66.63M	-34.12M	-44.26M
Balance Sheet
Total Assets	141.51M	192.09M	172.26M	247.88M	168.40M
Cash, Cash Equivalents and Short-Term Investments	124.39M	175.47M	156.95M	232.22M	162.49M
Total Debt	7.52M	10.74M	5.69M	6.99M	186.00K
Total Liabilities	15.58M	22.34M	25.29M	40.00M	269.45M
Stockholders Equity	125.93M	169.76M	146.97M	207.88M	-101.05M
Cash Flow
Free Cash Flow	-46.00M	-80.16M	-75.54M	-62.01M	-38.59M
Operating Cash Flow	-46.00M	-79.74M	-74.11M	-60.25M	-37.83M
Investing Cash Flow	-34.90M	64.14M	-99.28M	-1.76M	2.92M
Financing Cash Flow	0.00	75.98M	1.09M	131.74M	116.18M

Ikena Oncology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IKNA, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.29, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 13.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IKNA.

Ikena Oncology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	AU$2.61B	3.12	-57.47%	2.45%	36.73%	13.67%
DTIL	50 Neutral	$51.12M	2.40	-50.81%	―	-11.11%	79.74%
BYSI	44 Neutral	$87.89M	―	78.44%	―	―	―
MAIA	44 Neutral	$51.22M	―	-1131.02%	―	―	23.55%
IKNA	41 Neutral	$59.84M	―	-30.49%	―	-100.00%	37.59%
ACRV	36 Underperform	$43.58M	―	-62.41%	―	―	10.84%
ACET	27 Underperform	$62.82M	―	-55.83%	―	―	59.75%

Ikena Oncology Corporate Events

Ikena Oncology and Inmagene Announce Merger and Fundraising

Ikena Oncology and Inmagene Biopharmaceuticals have announced a definitive merger agreement, under which the combined company will focus on developing IMG-007, a monoclonal antibody aimed at treating atopic dermatitis and other inflammatory conditions. The transaction involves a private placement raising approximately $175 million, including $75 million from new and existing investors, and is expected to close in mid-2025. Following the merger, Ikena stockholders will own about 34.8% of the combined company, Inmagene equity holders will own 43.5%, and investors from the private placement will own 21.7%. The merger positions the combined company, to be named ImageneBio, to advance the development of IMG-007 and potentially extend its applications.