ImageneBio's IMG-007: A Promising Blockbuster in Atopic Dermatitis with Strategic Leadership and Competitive EdgeWe are initiating coverage of Imagene (IMA) with an OP rating and a PT of $30, based on a discounted cash flow (DCF) analysis. IMA’s fully-diluted market cap is ~ $86M (closing price of $7.39 and 11.7M FD shares outstanding, incl. PIPE shares), and we calculate EV of -$52M using estimated net cash of ~$138M as of Sept 30. We view shares as dramatically undervalued, particularly following a selloff in the wake of disappointing competitor SAN FP (OP) amlitelimab results on Sept 4 – see Exhibit 4. IMA was formed through the merger of Inmagene and IKNA (not rated), which closed on July 25, 2025. The company raised $75M, and mgmt anticipates cash runway through 2027. IMA’s lead asset IMG-007, a non-depleting anti-OX40 monoclonal antibody, is a potential blockbuster atopic dermatitis (AD).