Analysts at Baird initiated coverage of the immunology company INmune Bio with a price target more than double its current share price.
The firm issued an Outperform rating and target price of $16. INmune shares traded 1.5% lower Friday afternoon at $7.72.
INmune is in a Phase 2 trial for the treatment of Alzheimer's disease with its agent XPro, and Baird is optimistic.
“We believe INMB's agent XPro has early promising potential for the treatment of Alzheimer's disease due to it decreasing brain inflammation,” analysts wrote. “We see potential for the stock to trade higher upon the potential lifting of the FDA clinical hold on this agent later this year, and then upon phase 2 results in 2024 from the ongoing 200+ patient randomized placebo-controlled trial.”
The analysts also noted that XPro has potential uses for treatment-resistant depression, and another agent INKmune has potential as a cancer treatment.
“XPro is a next-generation TNF inhibitor that appeared to decrease neuroinflammation in its phase 1b trial, as assessed by CSF cytokines, MRI imaging, and other measures,” analysts wrote. “...Analyses of large claims databases show a correlation between treatment with TNF inhibitors and a decreased likelihood of Alzheimer's disease, providing further support that XPro might provide a benefit.”
Importantly, INmune believes it has sufficient cash ($51 million at the end of the first quarter) to fund its operations through 2024, the analysts noted.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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