$INAB Will It Become A Notable Biotech Stock?One of the reasons why cancer is so hard to treat is that the body has a hard time identifying cancerous cells. IN8bio, Inc. (Nasdaq: INAB) seeks to solve this issue through gamma-delta T cell therapy, which assists the body in identifying cancerous cells and targeting them with a thorough immune response. Does that make it unique among biotech stocks? No. There are dozens of biotech companies that develop t cells therapy. The appeal lies in its numerous catalysts. Speaking of catalysts, INAB has quite a few lined up. As more news is released about the results of its treatments, its stock is likely to rise substantially as its treatments get closer to the market.
INAB Fundamentals
INAB is a biotech company that specializes in developing T-cell therapy treatments. These treatments are basically genetically engineered T cells that help identify and eliminate cancerous cells. Recently INAB made a couple of promising announcements. The first is that Dr. Jeremy Graff, a biotech veteran, has been appointed as a member of the board. The second announcement was that during the ASGCT annual meeting, it will announce its preclinical trial results of INB-400’s effects on ovarian cancer, which is probably going to be a significant catalyst for the stock. That being said, INAB does not generate revenue, however, if INAB’s treatments get approved by the FDA then they are likely to generate substantial profits.
Cancer is sadly a market of inevitable demand. According to the American Cancer Society, the market size for cancer in the US was worth $265.1 billion in 2020 and is expected to grow by 8.2% from 2022, by 2030. More than a million people get diagnosed with cancer annually. Cancer patients are subjected to chemo, and radiation in an attempt to combat tumors or manage their growth. Instead of painful cancer treatments imagine a form of cancer treatment where a patient only needs to be injected with genetically modified cells, that allows the body to do all the heavy lifting. Furthermore, gamma-delta T-cell therapy is demonstrating substantial promise as an effective cancer treatment. As more data comes out its efficacy becomes more apparent.
On the 24th of April, INAB stock ran 263% after INAB revealed its INB-100 phase 1 trial results for leukemia treatment. INB-100 achieved a 100% complete remission rate, which is an extremely impressive medical achievement. The patients in the study had multiple forms of Leukemia like high-risk acute myeloid leukemia (AML), and acute lymphoblastic leukemia (ALL). Additionally, data from the study showed that gamma-delta T-cell expansion lasted 180 days after the treatment was administered. These results are unprecedented due to its high remission rate, and the fact that retention of gamma-delta T cell expansion for 180 days after treatment was not recorded in any study before this one.
On the heels of the INB-100 phase 1 results, the FDA gave INB-400, and INB-410 orphan status, which would accelerate the FDA approval process for these drugs. Their progression through the first, second, and third phases will probably catalyze the stock.
INAB announced that it will reveal its preclinical results for INB-400’s effects on ovarian cancer during the ASGCT. INB-400 is a treatment designed to tackle a wide array of solid tumors. Initially, it has shown substantial promise in treating Glioblastoma Multiforme (GBM), which is a type of brain tumor. The revelations presented during ASGCT will probably emphasize INB-400’s versatility. This would probably mean more research would be done concerning INB-400’s effect on a wider array of tumors. This announcement also means that INAB is currently seeking FDA approval for INB-400 as an ovarian cancer treatment.
While INAB has experienced a string of successes, it is by no means a domineering figure in the field of T-cell therapy. The market is extremely competitive. Currently, there are around 37 companies that research and treat patients with different forms of t cell therapy. Other biotech stocks that produce T cell therapy include Bellicum Pharmaceuticals, Inc, (Nasdaq: BLCM), Autolus Therapeutics plc (Nasdaq: AUTL), Arcellx, Inc. (Nasdaq: ACLX), Adaptimmune Therapeutics plc (Nasdaq: ADAP) Legend Biotech Corporation (Nasdaq: LEGN), and many other biotech stocks. Furthermore, INAB is already behind the eightball in the FDA approval race, because the FDA has already approved six T-cell therapy treatments for leukemia, lymphomas, and multiple myelomas. ADAP’s T cell therapy treatment ADP-A2M4CD8 is in phase 3 for treating ovarian cancer, which puts it ahead of INAB’s INB-400 which is still in the preclinical phase for ovarian cancer.
That being said, INAB’s saving grace is INB-400 for GBM. There have been no T-cell therapies approved by the FDA for any form of brain cancer as of this writing. That fact along with its phase 1 results for leukemia treatment, elevated INAB’s notoriety among biotech stocks. Given the fact that INB-400 was given orphan status, it’s possible that INB-400 will be the first t-cell therapy approved for GBM treatment in the market. Furthermore, off-label use may allow oncologists to prescribe INB-400 to ovarian cancer patients once it’s approved for GBM.
Given the competition ahead, INAB appointed a new board member with a wealth of experience in the biotech market. Dr. Jeremy Graff is a hardened veteran in the Biotech industry. He has spent 20 years traversing the field and has worked in notable corporations such as Eli Lilly, and Biothera Pharmaceuticals where he served as president for a time. His business experience allows him to traverse the world of biotech stocks effortlessly. Dr.Graff also specializes in immuno-oncology, which puts him in a unique position to advise INAB from both a business and medical standpoint.
There are many catalysts moving forward that may elevate the stock’s value including the ASGCT announcement in May regarding INB-400 and ovarian cancer, INB-400’s accelerated progression due to orphan status, INB-410’s accelerated progression due to orphan status, trial results, and INAB’s treatments entering the market. INAB stock is stacked with potential catalysts.
INAB Financials
According to its 2022 annual report, INAB has not realized any revenues yet since its drugs are still under development. At the end of 2022, INAB had $33 million in total assets. Of which $22 million were current, and $10 million were non-current. Additionally, it has $18 million in cash. Its total expenses for 2022 were 28.5 million, which was a stark increase from 14 million in 2021. As a result of its increasing burn rate, and lack of revenue, INAB’s net loss at the end of 2022 was $7.3 million.
If INAB liquidates its current assets, then it may not resort to dilution. That being said, its increasing burn rate is concerning. It’s highly plausible that INAB may resort to dilution as it did last August.
Technical Analysis
INAB is in a neutral trend, and in a sideways channel above the 200 MA. It’s also above the 21 MA and the 50 MA. The MACD is bullish, and the RSI is overbought.
The stock is jampacked with upcoming catalysts. The FDA has given two of its treatments orphan drug status. That is an advantage for biotech stocks generally because it accelerates the FDA approval process, which in turn means that results will come out sooner catalyzing the stock further. That being said upcoming catalysts include, INB-400’s, and INB-410’s progression through phases, trial results, as well as the ASGC announcement regarding INB-400’s effects on ovarian cancer.
A possible INAB play could be to go long at the 50 MA retest and take profits after the ASGCT announcement. A stop loss could be set at around $1.38 which would indicate a break of the lower trend line. It’s worth noting that this play is risky, because given INAB’s burn rate dilution may occur.
INAB Forecast
Moving forward there are a lot of possible catalysts for INAB stock, transitions from phase to phase in the FDA approval process are primary examples. Its trial results just recently caused the stock to spike 263%, and there is a litany of similar catalysts moving forward. Additionally, INAB just added a seasoned biotech veteran to its board. Things are looking up for INAB, but what about its shareholders?
Going long may seem like a no-brainer. After all, INAB has two treatments with orphan drug status and is about to make a major announcement. That being said INAB’s increasing burn rate may lead to dilution.
