Inhibikase Therapeutics (IKT) AI Stock Analysis

• Market Cap: $167.27M
• Dividend Yield: N/A
• Average Volume (3M): 133.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -100.00%
• EPS Growth: 38.72%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 56
• Industry: Biotechnology
• EPS (TTM): -2.22
• Shares Outstanding: 74,341,540
• 10 Day Avg. Volume: 106,837
• 30 Day Avg. Volume: 133,611
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.00
• Price Target Upside: 255.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Inhibikase Therapeutics' stock score is primarily impacted by its poor financial performance, marked by declining revenues and persistent losses. Technical analysis paints a mixed picture, with short-term indicators slightly positive but overshadowed by longer-term negative trends. Valuation metrics indicate caution due to a negative P/E ratio. The recent leadership change provides a potential positive catalyst for future performance, but its impact remains to be seen.

Positive Factors

Financial Performance

The company raised $110M in gross proceeds, which is expected to provide sufficient financial support into 2027, enhancing the company's stability and growth potential.

Regulatory Approval

Inhibikase received IND-clearance from the FDA for the Phase 2b 702 trial of IkT-001Pro in pulmonary arterial hypertension, marking a significant milestone for the company's drug development.

Negative Factors

Earnings

Inhibikase reported 4Q24 EPS of ($0.17), which was worse than the estimated ($0.10), indicating financial underperformance.

Product Development

The company halted further development of risvodetinib and there is no clinical data yet for IkT-001Pro in PAH, leading to a Neutral rating on the stock.

Inhibikase Therapeutics Business Overview & Revenue Model

Company Description

Inhibikase Therapeutics, Inc., a clinical stage pharmaceutical company, develops therapeutics for Parkinson's Disease (PD) and related disorders that arise inside and outside of the brain. The company's product candidates include IkT-148009, a small molecule Abelson tyrosine kinase inhibitor for use in the treatment of PD, as well as gastrointestinal complications that arise as early symptoms of PD, such as swallowing, dysphagia, neurogenic constipation, and multiple system atrophy; and IkT-001Pro, a prodrug of the anti-cancer agent Imatinib that is in preclinical development to minimize gastrointestinal side effects and for the treatment of blood and stomach cancers. It is also involved in developing various research programs for other neurological diseases. The company has research and development collaborations with The Johns Hopkins University, Arizona State University, and Michigan State University, as well as Louisiana State University. Inhibikase Therapeutics, Inc. was founded in 2008 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Inhibikase Therapeutics makes money through the development and commercialization of its pharmaceutical products. The company's revenue model is primarily based on advancing its drug candidates through clinical trials and achieving successful regulatory approvals. Key revenue streams include potential partnerships with larger pharmaceutical companies for the co-development or licensing of its therapies, as well as possible future revenues from product sales once the drugs reach the market. Additionally, the company may receive funding through research grants, collaborations, and milestone payments from strategic alliances, which help support its research and development efforts.

Inhibikase Therapeutics Financial Statement Overview

Summary

Inhibikase Therapeutics is facing significant financial challenges with diminishing total revenue, consistent net losses, and negative operating cash flow. The balance sheet is strong in terms of equity due to financing activities, but the company's reliance on external financing is concerning.

Income Statement

Inhibikase Therapeutics shows diminishing total revenue over the years, with a sharp drop to zero in the latest year. The company consistently reports negative net income, indicating ongoing losses. Margins such as EBIT and EBITDA are negative due to high expenses relative to the revenue. Revenue growth is negative when comparing to previous periods, highlighting challenges in revenue generation.

Balance Sheet

The company's balance sheet reflects a strong equity position relative to debt, as seen in the low debt-to-equity ratio. However, the high level of equity is primarily due to financing activities rather than retained earnings. The equity ratio is high, reflecting the company's reliance on equity financing. There is minimal debt, reducing leverage risks, but the persistent losses affect return on equity negatively.

Cash Flow

Operating cash flow remains negative, indicating the company is not generating positive cash from its core operations. While free cash flow is negative, indicating the company is spending more than it earns, there is considerable financing inflow, which supports liquidity. The ratios of cash flow to net income are unfavorable due to consistent net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	260.50K	123.44K	3.10M	698.47K
	Gross Profit
0.00	-13.36M	116.72K	-8.26M	-195.33K
	EBIT
-28.59M	-20.09M	-18.13M	-14.77M	-2.82M
	EBITDA
-28.59M	-19.91M	-18.12M	-14.77M	-2.82M
	Net Income Common Stockholders
-27.52M	-19.03M	-17.91M	-14.81M	-2.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.54M	13.25M	23.05M	40.75M	13.95M
	Total Assets
98.60M	14.51M	24.94M	42.47M	14.78M
	Total Debt
110.52K	622.00K	351.29K	248.91K	319.00K
	Net Debt
-56.38M	-8.54M	-6.84M	-40.50M	-13.63M
	Total Liabilities
3.73M	3.53M	3.90M	4.05M	5.00M
	Stockholders Equity
94.87M	10.98M	21.04M	38.42M	9.78M
Cash Flow		Free Cash Flow
-19.15M	-18.10M	-17.59M	-14.30M	-1.13M
	Operating Cash Flow
-19.15M	-18.09M	-17.35M	-14.30M	-1.13M
	Investing Cash Flow
-37.00M	11.66M	-16.01M	0.00	0.00
	Financing Cash Flow
103.48M	8.41M	-204.77K	41.09M	15.06M

Inhibikase Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IKT, the sentiment is Positive. The current price of 2.25 is above the 20-day moving average (MA) of 2.02, above the 50-day MA of 2.18, and above the 200-day MA of 2.14, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 86.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IKT.

Inhibikase Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RZLT	53 Neutral	$325.29M	―	-74.36%	―	―	-10.43%
Sector *	52 Neutral	$5.35B	3.81	-42.57%	2.86%	17.10%	1.33%
IKT	46 Neutral	$167.27M	―	-52.00%	―	-100.00%	38.72%
NBTX	46 Neutral	$162.63M	―	2152.93%	―	―	54.68%
ACIU	45 Neutral	$170.18M	―	-43.31%	―	95.23%	15.47%
DMAC	42 Neutral	$181.28M	―	-53.27%	―	―	2.53%
TNGX	38 Underperform	$163.24M	―	-57.58%	―	15.18%	-9.47%

Inhibikase Therapeutics Corporate Events

Inhibikase Therapeutics Appoints New Chief Financial Officer

Inhibikase Therapeutics has announced the resignation of Garth Lees-Rolfe as Chief Financial Officer, effective April 11, 2025. His departure was amicable, and he will continue to provide consulting services to the company until August 15, 2025. David McIntyre has been appointed as the new Chief Financial Officer effective April 14, 2025. McIntyre brings over two decades of experience in the life sciences sector, having held various executive roles in biotech and medical device companies. His appointment is expected to strengthen the company’s financial leadership and strategic direction.

Spark’s Take on IKT Stock

According to Spark, TipRanks’ AI Analyst, IKT is a Underperform.

Inhibikase Therapeutics is struggling financially, with consistent net losses and negative cash flow. The stock’s technical indicators are bearish, and the valuation is not compelling due to the negative P/E ratio. However, recent leadership changes provide a glimmer of hope for strategic improvement. The stock’s overall score reflects these concerns, with financial performance being the most significant drag on the score, mitigated slightly by positive corporate events.

To see Spark’s full report on IKT stock, click here.

Inhibikase Therapeutics Completes Merger with CorHepta Pharmaceuticals

On February 21, 2025, Inhibikase Therapeutics completed a merger with CorHepta Pharmaceuticals, making CorHepta a wholly-owned subsidiary. The transaction involved a $15 million payment in the form of company shares, with some shares contingent on future milestones. The company also announced leadership changes, appointing Chris Cabell as President and Head of Research and Development, and Vincent Aurentz to the Board of Directors, aiming to enhance its strategic positioning in the biopharmaceutical industry.

Inhibikase Therapeutics Appoints Mark Iwicki as New CEO

Inhibikase Therapeutics announced the resignation of Milton H. Werner as CEO and the appointment of Mark Iwicki, effective February 14, 2025. Werner’s departure was amicable, with a consulting agreement extending his service. Iwicki, a seasoned biopharmaceutical executive, brings extensive experience and is expected to advance the company’s lead product, IkT-001Pro, enhancing Inhibikase’s positioning in the cardiopulmonary therapeutic market. Additionally, Amit Munshi has been appointed as the new Chair of the Board, reflecting a strategic leadership shift aimed at driving growth and fulfilling unmet needs in PAH treatment.