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Innate Pharma (IPHA)
NASDAQ:IPHA
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Innate Pharma
(NASDAQ:IPHA)
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Rating:49Neutral
Price Target:
$2.00
▲(10.50% Upside)
Innate Pharma's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. However, the strategic refocus on key clinical assets and financial stability highlighted in the earnings call provide some optimism. The valuation remains a concern due to ongoing losses and lack of dividend yield.
Positive Factors
Strategic Focus on Clinical Assets
Focusing on high-value clinical assets can enhance long-term growth potential by concentrating resources on promising treatments, potentially leading to successful trials and commercialization.
Lacutamab FDA Breakthrough Therapy Designation
The FDA breakthrough designation can accelerate the development and review process, potentially bringing lacutamab to market faster, enhancing revenue prospects and competitive positioning.
Financial Stability
Having sufficient cash reserves ensures operational stability and supports strategic initiatives, allowing the company to focus on long-term growth without immediate financial pressures.
Negative Factors
Declining Revenue
Significant revenue decline indicates challenges in monetizing products and services, which can impact long-term financial health and ability to invest in R&D and growth initiatives.
High Leverage
High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.
Uncertainty in ANKET Program
Deprioritizing the ANKET program introduces uncertainty and may delay potential revenue streams, impacting the company's strategic positioning and growth prospects in the immunotherapy market.
Innate Pharma (IPHA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$169.26M
Dividend YieldN/A
Average Volume (3M)386.19K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-75.77%
EPS Growth-31.24%
CountryUS
Employees181
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.30
Shares Outstanding93,719,320
10 Day Avg. Volume29,239
30 Day Avg. Volume386,189
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)16.30
Price to Sales (P/S)11.41
P/FCF Ratio-19.76
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue23.18
Enterprise Value/Gross Profit8.70
Enterprise Value/Ebitda-2.57
Forecast
1Y Price Target
$6.50Price Target Upside259.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Innate Pharma Business Overview & Revenue Model
Company DescriptionInnate 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 MoneyInnate 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 Earnings Call Summary
Earnings Call Date:Sep 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a strategic refocus on key assets with promising clinical progress and financial stability. However, there are challenges such as the departure of the CSO and uncertainty around the ANKET program. Despite these lowlights, the highlights significantly outweigh them, suggesting a positive outlook.Q2-2025 Updates
Positive Updates
Strong Clinical Pipeline Focus
Innate Pharma has strategically decided to focus on three high-value clinical assets: IPH4502, lacutamab, and monalizumab. This decision is aimed at maximizing impact for patients and shareholders.
Progress in IPH4502 Development
IPH4502 is currently in Phase I development with promising preclinical data indicating potential efficacy beyond urothelial cancer. Enrollment is progressing well, with completion expected by Q1 2026. Preliminary safety and activity data are anticipated in the first half of 2026.
Lacutamab FDA Breakthrough Therapy Designation
Lacutamab received FDA breakthrough therapy designation for relapsed or refractory Sézary syndrome, highlighting its potential to accelerate development and regulatory review.
Monalizumab Phase III Progress
The Phase III PACIFIC-9 trial by AstraZeneca is fully recruited, with primary completion expected in the first half of 2026 and data anticipated in the second half of 2026.
Financial Stability
Innate Pharma reported EUR 70.4 million in cash, providing a runway until the end of Q3 2026. Operating expenses decreased by 29% compared to the prior year.
Negative Updates
CSO Departure
Chief Scientific Officer Eric Vivier has decided to return to full-time academic research, although he will continue to support the company as an advisor.
Strategic Refocus and Streamlining
The company is streamlining its organization to focus on key assets, which may imply reductions in other areas, including the NK cell programs.
Uncertainty in ANKET Program Future
The ANKET assets have been deprioritized, with future decisions dependent on clinical data, indicating potential delays or strategic shifts.
Company Guidance
During the Innate Pharma First Half 2025 Business Update and Financial Results Conference Call, the company provided comprehensive guidance on its strategic focus and financial projections. The key takeaway from the call was Innate's decision to concentrate its investment on three high-value clinical assets: IPH4502, lacutamab, and monalizumab. The company plans to complete enrollment for IPH4502's Phase I study by Q1 2026 and anticipates reporting preliminary data in the first half of 2026. Lacutamab is preparing for a Phase III trial with potential accelerated approval by 2027, while monalizumab's Phase III PACIFIC-9 trial, in collaboration with AstraZeneca, is expected to yield data in the second half of 2026. Financially, Innate reported EUR 70.4 million in cash, sufficient to fund operations until the end of Q3 2026, which includes the impact of a planned organizational restructuring. This strategic focus aims to align the company's science, organization, and investments to drive forward programs with the greatest potential impact for patients and shareholders.Innate Pharma Financial Statement Overview
Summary
Innate Pharma is facing significant financial challenges, with declining revenue and profitability, high leverage, and ongoing cash flow issues. Despite some improvements in cash flow, the overall financial health remains weak, necessitating strategic adjustments.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.14M | 12.62M | 51.90M | 57.67M | 12.11M | 69.77M |
| Gross Profit | 13.69M | 12.62M | 5.62M | 6.01M | -22.30M | 20.07M |
| EBITDA | -46.41M | -46.91M | -1.84M | -12.28M | -43.23M | 13.30M |
| Net Income | -46.05M | -49.47M | -7.57M | -58.10M | -52.81M | -63.98M |
Balance Sheet | ||||||
| Total Assets | 92.94M | 111.06M | 175.19M | 207.86M | 267.50M | 307.42M |
| Cash, Cash Equivalents and Short-Term Investments | 60.03M | 80.77M | 92.46M | 101.48M | 119.84M | 151.64M |
| Total Debt | 27.03M | 31.00M | 39.89M | 42.25M | 44.25M | 19.09M |
| Total Liabilities | 87.79M | 102.22M | 132.29M | 153.71M | 160.06M | 151.45M |
| Stockholders Equity | 5.14M | 8.83M | 51.90M | 54.15M | 107.44M | 155.97M |
Cash Flow | ||||||
| Free Cash Flow | -41.26M | -7.29M | -34.91M | -20.28M | -59.79M | -63.09M |
| Operating Cash Flow | -41.10M | -6.90M | -32.56M | -19.15M | -58.46M | -51.81M |
| Investing Cash Flow | 15.24M | 9.20M | 20.63M | 1.88M | -917.00K | -13.37M |
| Financing Cash Flow | 8.79M | -6.01M | -1.97M | -1.83M | 26.82M | -1.14M |
Innate Pharma Technical Analysis
Neutral
1.81
Price Trends
1.84
Negative
1.94
Negative
1.98
Negative
Market Momentum
-0.02
Negative
50.89
Neutral
61.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPHA, the sentiment is Neutral. The current price of 1.81 is above the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.84, and below the 200-day MA of 1.98, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 61.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $585.44M | -14.46 | -84.33% | ― | ― | 59.04% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $169.26M | -3.03 | -271.32% | ― | -75.77% | -31.24% | |
49 Neutral | $151.09M | -1.01 | -480.02% | ― | -37.13% | 40.47% | |
47 Neutral | $310.04M | -0.03 | ― | ― | ― | -1072.48% | |
43 Neutral | $135.37M | -2.29 | ― | ― | ― | 17.36% |
* Healthcare Sector Average
IPHA
Innate Pharma
1.81
0.11
6.47%
SLS
SELLAS Life Sciences Group
4.15
3.18
327.84%
SGMO
Sangamo Biosciences
0.45
-0.65
-59.27%
ELTX
Elicio Therapeutics
7.77
1.38
21.60%
VOR
Vor Biopharma
13.49
-13.91
-50.77%
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.