Biotech ImmunityBio (IBRX) has grabbed investors’ attention. Its stock has shot up over 77% in the past few days on news of the first patients being dosed in its Phase 1 QUILT 106 clinical trial of the company’s CAR-NK cell therapy targeting non-Hodgkin lymphoma (NHL). The trial aims to enroll up to 100 patients by early 2025, testing the therapy independently and in conjunction with rituximab. The company’s strategy is to utilize CAR-NK technology to bridge gaps in existing cancer treatments, specifically for liquid tumors.
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It aims to gather essential data by the second half of 2025 that could revolutionize cancer treatment approaches. The trial is particularly unique in its focus on addressing unmet medical needs in Sub-Saharan Africa, potentially influencing future research in similar underserved areas.
This latest news accentuates market enthusiasm for a company already making strides in cancer and infectious disease therapies. Its leading product candidate, Anktiva, has demonstrated immense potential in combating non-muscle invasive bladder cancer and non-small cell lung cancer (NSCLC) by extending survival rates. It is currently in a Phase 3 trial for NSCLC treatment. These potential breakthrough treatments make the stock a compelling option for investors interested in a high-risk, high-reward biotech.
ImmunityBio’s Promising Treatment Pipeline
ImmunityBio is a clinical-stage biotechnology company focused on developing therapies and vaccines to beat cancers and infectious diseases by strengthening the natural immune system. The company leverages various development platforms, such as antibody-cytokine fusion proteins, DNA, RNA, recombinant protein vaccines, and cell therapies.
The company’s platforms have created therapeutic agents currently under study or intending to be studied in clinical trials for various liquid and solid tumors. Its key biologic product candidate is Anktiva, an FDA-approved immunotherapy for treating adult patients with specific types of bladder cancer.
Additionally, ImmunityBio has made a significant breakthrough in treating advanced non-small cell lung cancer (NSCLC) with Anktiva. The company’s QUILT 3.055 trial has shown long-term survival of up to five years in NSCLC patients using combination therapy with checkpoint inhibitors (CPI).
Most recently, the company announced the dosing of the first patients in a groundbreaking study evaluating the efficacy of its CAR-NK cell therapy for treating non-Hodgkin’s lymphoma (NHL). This pioneering trial, named QUILT 106, is the first of its kind in South Africa. It will explore the potential benefits of targeted natural killer (NK) cell therapy in an area where NHL is one of the most common cancers. The treatment will initially be tested as a single agent and, upon proving its safety, will be combined with the standard NHL treatment, rituximab.
ImmunityBio’s Recent Financial Results
The company has released its Q2 2024 results, reporting $1.05 million in revenue, a significant decrease of 58.45% compared to the anticipated revenue estimate of $2.52 million. Earnings per share (EPS) of -$0.32 fell short of analysts’ expectations of -$0.23.
As of the quarter’s end, the company had an accumulated deficit of $3.2 billion. This, coupled with the negative cash flows from operations of $207.3 million during the prior six months, indicates a high likelihood that the company will need additional capital, which could dilute shareholders.
The company has stated that the combination of existing cash, cash equivalents, investments in marketable securities, and capital to be raised through equity offerings under the ATM, of which it has $296.5 million available for future issuance, will be sufficient to fund operations for at least the next 12 months.
What Is the Price Target for IBRX Stock?
The stock has been volatile (beta of 1.98), climbing over 100% in the past year. It trades near the middle of its 52-week price range of $2.56 – $10.53, with the recent jump bullishly lifting the share price above all major moving averages.
Analysts covering IRBX stock have been mostly bullish. For instance, EF Hutton recently initiated coverage with a Buy rating and $30 price target, noting ImmunityBio is “poised to revolutionize” cancer immunotherapy and the company’s lead candidate, Anktiva, has strong therapeutic potential that extends to other solid tumors that benefit from checkpoint inhibitors.
Based on the most recent recommendations of three analysts, ImmunityBio is rated a moderate buy overall. The average price target for IBRX stock is $14.25, representing a potential upside of 130.96% from current levels.
Bottom Line on IBRX
Riding the wave of an exciting Phase 1 QUILT 106 clinical trial and bolstered by the successful dosing of its first patients, ImmunityBio has captivated investors’ interest. Concurrently, its lead candidate, Anktiva, has shown considerable potential in extending survival rates in patients with bladder and non-small cell lung cancer, making this firm a compelling investment for those looking to embrace a high-risk, high-reward scenario in Biotech.
