Innate Pharma (IPHA) AI Stock Analysis

• Market Cap: $174.43M
• Dividend Yield: N/A
• Average Volume (3M): 15.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -75.77%
• EPS Growth: -31.24%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.30
• Shares Outstanding: 92,183,525
• 10 Day Avg. Volume: 28,129
• 30 Day Avg. Volume: 15,685
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 9.43
• Enterprise Value/Gross Profit: 9.43
• Enterprise Value/Ebitda: -2.54
• 1Y Price Target: $5.00
• Price Target Upside: 174.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $2.00 ▲(9.89% Upside)

Innate Pharma's overall stock score reflects significant financial challenges and valuation concerns, offset by a positive strategic refocus and promising clinical developments. The technical analysis suggests a stable but uncertain trend, while the earnings call provides a more optimistic outlook for the future.

Positive Factors

Strategic Focus on Key Assets

Focusing on high-value clinical assets can enhance long-term growth prospects by concentrating resources on the most promising treatments, potentially leading to successful product launches and partnerships.

Lacutamab FDA Breakthrough Designation

Receiving FDA breakthrough designation can expedite the development and review process, potentially bringing innovative treatments to market faster and enhancing competitive positioning.

Financial Stability

Having sufficient cash reserves to fund operations until Q3 2026 provides financial stability, allowing the company to focus on strategic initiatives without immediate funding concerns.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining sales momentum, which could impact funding for R&D and delay product development timelines.

High Leverage

High leverage can strain financial flexibility and increase risk, potentially limiting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Cash Flow

Negative cash flow highlights operational inefficiencies and challenges in converting revenue into cash, which may hinder the company's ability to sustain long-term operations without additional financing.

Innate Pharma Business Overview & Revenue Model

Company Description

Innate Pharma S.A., a biotechnology company, discovers, develops, and commercializes therapeutic antibodies for the treatment of oncology indications in France and internationally. The company's products include Lacutamab (IPH4102), an anti-KIR3DL2 antibody, which is in Phase II clinical trials for the treatment of cutaneous T-cell and peripheral T-cell lymphoma, as well as in Phase II clinical trials to treat refractory sézary syndrome; Monalizumab, an immune checkpoint inhibitor that is in Phase III clinical trial to treat advanced solid tumors comprising colorectal and lung cancer, as well as head and neck cancer; Avdoralimab (IPH5401), a monoclonal antibody blocking C5a binding to C5aR1 that is in Phase II clinicals trials for the treatment of COVID-19, bullous pemphigoid, chronic spontaneous urticaria, and other inflammatory diseases; IPH5201, a blocking antibody that is in Phase 1 clinical trials targeting the CD39 immunosuppressive pathway; IPH5301, an anti-CD73 antibody targeting the immunosuppressive adenosine pathway to promote antitumor immunity; and IPH6101, a NKp46-based NK cell engager for the generation and evaluation of up to two bispecific NK cell engagers. Its products in preclinical trials are IPH43, an anti-MICA/B antibody drug conjugate; Anti-Siglec-9, an antibody program; IPH65, a tetraspecific proprietary antibody; IPH25, a checkpoint inhibitor; and IPH62 and IPH64 programs. Innate Pharma S.A. has licensing and collaboration agreements with AstraZeneca, Novo Nordisk A/S, Sanofi, and Orega Biotech; and co-development and license agreement with MedImmune Limited. The company was incorporated in 1999 and is headquartered in Marseille, France.

How the Company Makes Money

Innate Pharma generates revenue primarily through a combination of product development collaborations, licensing agreements, and potential royalties from its proprietary therapies. The company often partners with larger pharmaceutical firms to co-develop its drug candidates, which provides upfront payments and milestone payments as products progress through clinical trials. Additionally, if these therapies are commercialized, Innate Pharma stands to earn royalties on sales. The company may also generate revenue from grants and other funding mechanisms aimed at supporting its research and development efforts.

Innate Pharma Financial Statement Overview

Summary

Innate Pharma is facing significant financial challenges. Revenue and profitability have sharply decreased, and high leverage poses risks. Despite improvements in cash flow, the overall financial position remains weak, necessitating strategic adjustments to improve financial health and sustainability.

Income Statement

The company's revenue has been declining significantly, with a revenue decrease from $51.9M in 2023 to $12.6M in 2024, representing a revenue growth rate of -75.7%. The gross profit margin for 2024 is 100%, indicating that all revenue translates to gross profit, but the company is still operating at a loss with an EBIT margin of -408.7% and a net profit margin of -391.9%. This suggests significant operational inefficiencies and ongoing financial challenges.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 3.51 in 2024, which is concerning. However, the equity ratio is a low 7.95%, indicating limited equity backing for total assets. Return on equity is negative at -560.5%, reflecting continued struggles in generating returns on shareholder investments.

Cash Flow

The company reported negative free cash flow growth, from -$34.9M in 2023 to -$7.3M in 2024, improving by 79.1%. However, operating cash flow remains negative, and the free cash flow to net income ratio is 0.15, suggesting weak cash conversion. The operating cash flow to net income ratio is -0.14, highlighting cash flow challenges relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.62M	51.90M	57.67M	12.11M	69.77M
Gross Profit	12.62M	-4.12M	-2.02M	-34.89M	20.07M
EBITDA	-46.91M	-1.84M	-12.28M	-43.23M	13.30M
Net Income	-49.47M	-7.57M	-58.10M	-59.14M	-63.98M
Balance Sheet
Total Assets	111.06M	184.19M	207.86M	267.50M	307.42M
Cash, Cash Equivalents and Short-Term Investments	80.77M	92.46M	101.48M	119.84M	151.64M
Total Debt	31.00M	39.89M	42.25M	44.25M	19.09M
Total Liabilities	102.22M	132.29M	153.71M	160.06M	151.45M
Stockholders Equity	8.83M	51.90M	54.15M	107.44M	155.97M
Cash Flow
Free Cash Flow	-7.29M	-34.91M	-20.28M	-59.79M	-63.09M
Operating Cash Flow	-6.90M	-32.56M	-19.15M	-58.46M	-51.81M
Investing Cash Flow	9.20M	20.63M	1.88M	-917.00K	-13.37M
Financing Cash Flow	-6.01M	-1.97M	-1.83M	26.82M	-1.14M

Innate Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.82
• 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 IPHA, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.07, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 34.16 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPHA.

Innate Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPHA	51 Neutral	$174.43M	―	-271.32%	―	-75.77%	-31.24%
SGMO	51 Neutral	200.34M	-2.34	-430.13%	―	565.52%	79.44%
DSGN	47 Neutral	374.15M	-5.87	―	―	―	-24.60%
ANNX	38 Underperform	370.32M	-2.62	―	―	―	-5.57%
NGNE	34 Underperform	254.33M	-3.85	―	―	-100.00%	-24.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%