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Topline Abstract
Immunome, Inc. (NASDAQ:IMNM) is a developmental biopharma growing brokers to use novel targets in most cancers drugs. Their rise since early 2023 has been meteoric, pushed by partnerships and merger information. Immediately, they sit at a near-half-billion in market capitalization with no single pipeline drug having reached scientific trials, and even having filed an IND to start one. To me, the lengthy wait time to human research, not to mention outcomes, make this a transparent candidate for “overvalued” standing, and presently, I might strongly encourage taking some revenue off the desk and holding off on growing positions till they’ve one thing extra tangible.
Pipeline Overview
To be clear, IMNM can’t be mentioned to have a lot of a pipeline presently, contemplating the corporate has not but entered scientific trials, and the steering from their firm presentation means that they’ll file INDs for 3 medicine within the first quarter of 2025. Let’s focus on these:
IM-1021
The primary named mission we learn about is an antibody-drug conjugate concentrating on ROR1 referred to as IM-1021. This agent was just acquired by a licensing settlement with Zentalis Prescribed drugs (ZNTL) in January 2024. ROR1 is a distinguished receptor within the Wnt signaling pathway that’s identified to be overexpressed in varied cancers. No medicine have been developed to this point that may exploit this goal.
We have now not but seen publications highlighting the potential advantage of IM-1021. Not even ZNTL has printed or offered findings. So we’ll have to attend a short time longer earlier than the march begins.
IM-4320
The second preclinical pipeline candidate they spotlight is IM-4320 (IMM20320), a monoclonal antibody that targets IL-38. This molecule is a cytokine that’s thought to cut back the immune response to cancer cells, so inhibiting it with an antibody ought to yield some sort of antitumor exercise.
IMNM has beforehand offered preclinical findings for this agent, highlighting myeloid cell activation in mouse fashions of most cancers. A more recent publication highlighted the excessive frequency of IL-38 overexpression in sufferers with lung, head, neck, and cervical cancers, in addition to exercise in opposition to mouse tumor fashions of breast most cancers and melanoma.
Undisclosed radioligand remedy
The ultimate pipeline candidate at present billed as “in IND-enabling studies” doesn’t but have a reputation, and it’s a radioligand-doped molecule concentrating on fibroblast activating protein (FAP), which is overexpressed in quite a lot of stable tumor varieties. Apart from the radioligand (Lutetium-177, much like authorized therapies like Lutathera and Pluvicto), we do not know anything about this agent presently.
Monetary Overview
Per their first quarterly submitting after finishing their merger with Morphimmune, IMNM held $91.4 million in whole present belongings, together with $90.6 million in money and equivalents. Their working bills have been $8.2 million whereas recognizing $3.6 million in collaboration income. This collaboration income comes from an ongoing settlement with AbbVie (ABBV) to find novel therapies for most cancers remedy.
After curiosity revenue, the web loss for the quarter was $4.3 million, giving IMNM a money runway of roughly 5 years at these ranges. In fact, this assumes that collaboration income and working prices stay the identical, the latter being a close to sure unlikelihood.
It’s price noting that the submitting didn’t have in mind the $125 million personal placement carried out as a part of the merger with Morphimmune, offering additional money to assist the continued growth of their brokers.
Strengths and Dangers
If you already know me by now, you already know that I view lengthy lead instances to market as a large threat. And IMNM’s pipeline is totally full of drug candidates that I might principally depart as irrelevant for different corporations because the probabilities of shifting from pre-IND into profitable scientific trials are so low.
IMNM is definitely assured, and so they definitely have the funds to maneuver one thing into the clinic, and so they’ve received the backing and pedigree of pharma to push back ramping prices.
So, answering this text’s title: Why has IMNM risen a lot over the previous 12 months? Completely, the market derives a number of confidence from administration with a observe document of success, and with the Morphimmune merger, they now have the co-Founder and former CEO of Seagen, themselves one of many pioneers of antibody-drug conjugate remedy.
To not low cost the significance of fine administration, however my expertise has taught me that you would be able to’t belief the backing of a single particular person, irrespective of how certified. He isn’t capable of make or break these trials, though he would most definitely be capable to drive a winner into the market…if and once they have a candidate make it by scientific trials.
So, right here, we’ve an organization buying and selling at greater than double its present money holdings (bearing in mind the additional $125 million from the personal placement) and with no clear indication as to what is going on to maneuver into the clinic (frankly, no assure that any of them will).
Backside Line Abstract
The hyped valuation that IMNM is build up is unreal for a corporation not even in scientific trials but. In fact, antibody-drug conjugates are all the craze as we make new positive factors seemingly each month, and that justifies a number of pleasure for brand spanking new targets and new, hopefully higher approaches. With true catalysts such a great distance off, the draw back threat from this $600+ million firm is huge, for my part. I do not suppose the near-term prospects justify a purchase at these ranges, and if I have been a fortunate holder at any time in 2023, I might positively be seeking to take some or all of these positive factors off the desk earlier than the fact of bringing a drug into trials, not to mention to market, units in.
