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Innate Pharma (IPHA)
NASDAQ:IPHA
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Innate Pharma
(NASDAQ:IPHA)
Rating:45Neutral
Price Target:
$2.00
▲(9.89%Upside)
Positive Factors
Financial Investment
Sanofi has agreed to invest up to €15M in equity investment in the company, which signals Sanofi’s conviction in the ANKET platform.
Product Development
Management is bullish on IPH4502’s potential in Padcev-resistant patients, which, if proven successfully in clinical studies, could allow the drug to receive accelerated regulatory approval.
Negative Factors
Clinical Uncertainty
IPH6101 now faces an uncertain future as Innate management did not confirm whether they plan on continuing the Sanofi-initiated Ph 2 study with the ANKET in combination with venetoclax in front-line AML.
Product Launch
The U.S. launch of IPH6101 is postponed to 2029 from previously estimated 2027 and EU launch to 2030 from 2028.
Innate Pharma (IPHA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$164.72M
Dividend YieldN/A
Average Volume (3M)10.28K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth-75.67%
EPS Growth-552.37%
CountryUS
Employees181
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.35
Shares Outstanding92,176,380
10 Day Avg. Volume10,871
30 Day Avg. Volume10,283
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)5.07
Price to Sales (P/S)0.00
P/FCF Ratio-8.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside504.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Innate Pharma Business Overview & Revenue Model
Company DescriptionInnate Pharma S.A. is a clinical-stage biotechnology company based in France, specializing in the discovery and development of therapeutic antibodies that harness the innate immune system to improve cancer treatment. The company's portfolio primarily focuses on immuno-oncology, targeting a variety of cancers through innovative therapies designed to enhance the body's natural immune response.
How the Company Makes MoneyInnate Pharma generates revenue through a combination of strategic collaborations, licensing agreements, and the development of its proprietary drug candidates. The company partners with major pharmaceutical companies to co-develop and commercialize its drug candidates, often receiving upfront payments, milestone payments, and potential royalties on future sales. Additionally, Innate Pharma may earn revenue from grants and research funding to support its drug discovery and development initiatives. These partnerships not only provide financial resources but also access to broader development capabilities and market reach.
Innate Pharma Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q4-2024)
| % Change Since: 0.55%|
Next Earnings Date:Sep 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with significant achievements in clinical trial progress, regulatory milestones, and financial stability. However, strategic shifts and decreased R&D expenses indicate some challenges in specific areas.Q4-2024 Updates
Positive Updates
IPH65 Phase 1 Trial Progress
The first patients were recruited into the Phase 1 dose finding trial for IPH65, a key focus for Innate, marking a critical step in the product's clinical development.
FDA Breakthrough Therapy Designation for Lacutamab
Lacutamab received breakthrough therapy designation from the FDA, bringing it closer to potential accelerated approval based on strong data.
Strong Pipeline and Strategic Focus
Innate Pharma continues to advance a robust pipeline with eight innovative assets currently in the clinic, emphasizing NK cell engagers, antibody-drug conjugates, and late-stage assets.
Financial Stability
Cash, cash equivalents, short-term investments, and financial assets amounted to EUR91.1 million as of December 31, 2024, with sufficient cash to fund operations through mid-2026.
Negative Updates
Strategic Refocus of IPH6401
IPH6401 development is refocused from multiple myeloma to autoimmune diseases, indicating a shift due to strategic decisions rather than positive developments in the initial target.
Decreased R&D Expenses
R&D expenses decreased by EUR4 million compared to the previous year, partly due to a reduction in direct research and development expenses, reflecting potential slowdowns or shifts in program priorities.
Company Guidance
During the call, Innate Pharma provided various metrics reflecting its progress and future guidance. The company highlighted the advancement of their clinical programs, including IPH6501, with the first patients recruited into the Phase 1 trial in the first half of 2024. IPH4502, their Nectin-4 targeted ADC, dosed its first patients in January 2025 following IND clearance in September 2024. Lacutamab received FDA breakthrough therapy designation, with regulatory discussions for a confirmatory Phase 3 ongoing. Financially, Innate reported revenue of €20.1 million for 2024, with €12.6 million from collaboration agreements and a research tax credit of €7.5 million. Operating expenses were €71.7 million, with 73% allocated to R&D, and the company maintained cash and equivalents of €91.1 million as of December 31, 2024, sufficient to fund operations through mid-2026.Innate Pharma Financial Statement Overview
Summary
Innate Pharma faces significant financial hurdles. The company struggles with profitability and cash flow generation, as evidenced by negative margins and free cash flow. The balance sheet reveals increased leverage and declining equity, posing risks to financial stability. While there are signs of improvement in net income, the company must address its cost structure and cash flow management to enhance financial health and sustainability.Income Statement
Innate Pharma's income statement reflects significant challenges. The gross profit margin is negative, indicating costs exceed revenues. Net profit margin remains in negative territory, although there is a notable improvement in net income from -€99.1 million in 2022 to -€7.57 million in 2023. Revenue growth is modest at 4.56%, suggesting some recovery but still below pre-2020 levels. Negative EBIT and EBITDA margins highlight ongoing profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 0.77, reflecting significant leverage. The equity ratio stands at 28.17%, indicating a decline in equity relative to assets. However, the return on equity has improved due to a reduction in net loss, which is a positive sign, yet still negative. The company's financial stability is a concern due to declining stockholders' equity and increased liabilities.50
Neutral
Cash Flow
Cash flow statements reveal persistent issues. Free cash flow remains negative, increasing from -€20.28 million in 2022 to -€34.91 million in 2023, indicating deteriorating cash generation. The operating cash flow to net income ratio is negative, showing inefficiency in converting income to cash. Despite this, free cash flow growth rate is not calculable due to negative values, highlighting liquidity challenges.40
Negative
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.79M | 51.90M | 49.64M | 12.11M | 69.77M | 68.97M |
| Gross Profit | -19.86M | -4.12M | -2.02M | -34.89M | 20.07M | 23.82M |
| EBITDA | -35.96M | -1.84M | -61.30M | -43.23M | 13.30M | -20.86M |
| Net Income | -34.05M | -7.57M | -99.10M | -59.14M | -63.98M | -20.96M |
Balance Sheet | ||||||
| Total Assets | 48.01M | 184.19M | 207.86M | 267.50M | 307.42M | 401.36M |
| Cash, Cash Equivalents and Short-Term Investments | 34.58M | 92.46M | 101.48M | 119.84M | 151.64M | 218.87M |
| Total Debt | 6.79M | 39.89M | 42.25M | 44.25M | 19.09M | 18.72M |
| Total Liabilities | 14.49M | 132.29M | 153.71M | 160.06M | 151.45M | 183.94M |
| Stockholders Equity | 33.52M | 51.90M | 54.15M | 107.44M | 155.97M | 217.42M |
Cash Flow | ||||||
| Free Cash Flow | -18.38M | -34.91M | -20.28M | -59.79M | -63.09M | -30.48M |
| Operating Cash Flow | -18.06M | -32.56M | -19.15M | -58.46M | -51.81M | 34.92M |
| Investing Cash Flow | 21.81M | 20.63M | 1.88M | -917.00K | -13.37M | -62.12M |
| Financing Cash Flow | -5.05M | -1.97M | -1.83M | 26.82M | -1.14M | 77.77M |
Innate Pharma Technical Analysis
Negative
1.82
Price Trends
2.07
Negative
2.03
Negative
1.96
Negative
Market Momentum
-0.07
Negative
40.86
Neutral
58.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPHA, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 2.07, and below the 200-day MA of 1.96, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPHA.
Innate Pharma Risk Analysis
Innate Pharma disclosed 89 risk factors in its most recent earnings report. Innate Pharma reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Innate Pharma Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
49 Neutral | $244.59M | ― | -19.94% | ― | ― | -14.76% | |
49 Neutral | AU$2.47B | 4.40 | -64.25% | 2.83% | 36.51% | 13.14% | |
47 Neutral | $131.29M | ― | -262.12% | ― | 239.92% | 79.41% | |
47 Neutral | $208.91M | ― | -22.59% | ― | ― | 26.63% | |
45 Neutral | $164.72M | ― | -160.99% | ― | -75.67% | -552.37% | |
38 Underperform | $308.30M | ― | -66.13% | ― | ― | 43.21% | |
34 Underperform | $281.68M | ― | -34.97% | ― | ― | -140.77% |
* Healthcare Sector Average
Performance Comparison
IPHA
Innate Pharma
1.84
-0.15
-7.54%
SGMO
Sangamo Biosciences
0.53
0.21
65.63%
NGNE
Neurogene
20.09
-14.04
-41.14%
ANNX
Annexon Biosciences
2.89
-1.60
-35.63%
DSGN
Design Therapeutics
3.77
0.35
10.23%
THRD
Third Harmonic Bio, Inc.
5.43
-6.28
-53.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.