Inhibrx Surpasses 4Q Revenue Estimates; Street Remains Bullish

Inhibrx Inc posted better-than-expected 4Q revenue and also reported Phase 1 results for its therapeutic candidate, INBRX-105.  The biotechnology company currently has four clinical development programs. Shares were up about 1.5% in Friday’s after-hours trading session.

Inhibrx’s (INBX) revenue, mainly made up of license fees, increased to $2.78 million from $263,000 in the year-ago period and beat analysts’ estimates by $1.78 million.

The company’s research and development expenses increased to $17.67 million from $12.28 million in the year-ago period. Despite this increase, Inhibrx’s net loss per share was $0.47 in 4Q, compared to a net loss per share of $0.90 in the prior-year quarter. This decrease was attributable to an increase in the company’s outstanding shares, which rose from about 18.15 million in 4Q19 to 37.7 million in 4Q.

The company’s CEO Mark Lappe said, “2020 was a transformative year for Inhibrx. We made substantive advances in our four clinical programs across oncology and orphan disease, continued to progress our pre-clinical pipeline, and successfully completed an initial public offering.”  (See Inhibrx stock analysis on TipRanks)

Meanwhile, the Phase 1 study for Inhibrx’s INBRX-105 is being conducted in patients with locally advanced or metastatic solid tumors to evaluate the safety profile and determine the maximum tolerated dose of the drug. The company expects to begin enrollment for the Phase 2 study, a dose escalation study of INBRX-105 in combination with Keytruda, in 2Q and announce initial data in 4Q.

Last month, Credit Suisse analyst Martin Auster raised the stock’s price target to $44 (87% upside potential) from $28 and reiterated a Buy rating. Auster sees “potential for significant program derisking if INBRX-101 can maintain plasma AAT levels within the normal range with evidence the drug effectively accesses the lung.”

Further, “depending on the magnitude of de-risking observed and expectations of product positioning,” the analyst could see NPV upside of up to $20-$40 per share.

The other analyst covering the stock, Jefferies’ Michael Yee, also reiterated a Buy rating. The two ratings add up to a Moderate Buy consensus rating alongside an average analyst price target of $47 (99.9% upside potential). Shares have rallied 37% over the past six months.

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