Innate Pharma (IPHA) AI Stock Analysis

• Market Cap: $184.03M
• Dividend Yield: N/A
• Average Volume (3M): 9.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -75.67%
• EPS Growth: -552.37%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.35
• Shares Outstanding: 92,183,525
• 10 Day Avg. Volume: 5,163
• 30 Day Avg. Volume: 9,535
• PEG Ratio: 0.06
• Price to Book (P/B): 14.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.00
• Price Target Upside: 521.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $2.00 ▲(12.99%Upside)

Innate Pharma's overall score is primarily influenced by financial challenges, including declining revenues and high leverage. While the earnings call provided a positive outlook with clinical progress and financial stability, technical indicators and valuation concerns, such as a negative P/E ratio, weigh heavily on the stock's score.

Positive Factors

Clinical Developments

The company's NKG2A-targeting immune checkpoint inhibitor, monalizumab, continues to be evaluated in a Phase 3 trial for non-small cell lung cancer, indicating ongoing development and potential future success.

Financial Stability

Innate Pharma has sufficient cash and cash equivalents to support operations into mid-2026, providing financial stability.

Strategic Investment

Sanofi has agreed to invest up to €15M in equity investment in the company, which signals Sanofi’s conviction in the ANKET platform.

Negative Factors

Drug Development Challenges

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.

Launch Delays

The U.S. launch of IPH6101 is postponed to 2029 from previously estimated 2027 and EU launch to 2030 from 2028.

Partnership Uncertainty

The development path for lacutamab is still undecided, and initiating a trial might require additional funds.

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 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 Financial Statement Overview

Summary

Innate Pharma is facing significant financial challenges. Revenue and profitability have decreased sharply, with high leverage and ongoing operational inefficiencies. While there are slight improvements in cash flow, the overall financial position 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	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: 1.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.77 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 2.00, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 48.30 is Neutral, 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
Sector *	52 Neutral	$7.34B	-0.07	-63.86%	2.34%	16.17%	0.23%
THRD	49 Neutral	$246.85M	―	-19.94%	―	―	-14.76%
DSGN	47 Neutral	$225.94M	―	-22.59%	―	―	26.63%
IPHA	45 Neutral	$184.03M	―	-160.99%	―	-75.67%	-552.37%
SGMO	43 Neutral	$118.11M	―	-262.12%	―	239.92%	79.41%
ANNX	38 Underperform	$263.31M	―	-66.13%	―	―	43.21%
NGNE	34 Underperform	$321.47M	―	-34.97%	―	―	-140.77%