Despite incredible advancements in modern medicine, cancer continues to impose a dark cloud over our healthcare system and our social networks. According to the American Cancer Society, medical professionals will diagnose approximately 1.9 million new cases by the end of 2021, with 608,570 succumbing to various forms of the disease.
While the search for a cure has been a difficult one, IN8bio, a clinical-stage biotechnology firm, may provide a groundbreaking solution. Through its research and development of genetically modified gamma-delta T cells, IN8bio may deliver superior patient outcomes, thus drawing significant interest for its stock offering.
When Did IN8bio IPO?
IN8bio IPO’d on July 29, 2021 at $10 per share, with the Phase 1 oncology firm trading on the Nasdaq under the ticker symbol “INAB.”
IN8bio Financial History
At the heart of IN8bio’s cellular therapy model are gamma-delta T cells. According to the company’s website, gamma-delta T cells are “naturally occurring immune cells that embody properties of both the innate and adaptive immune systems, and can intrinsically differentiate between healthy and diseased tissue.” Critically, as Labiotech.eu points out, this differentiation ability “has the potential to treat cancer with stronger responses and fewer side effects.”
Currently, IN8bio is conducting two Phase 1 clinical trials for its gamma-delta T cell therapy candidates: INB-200, which aims to treat newly diagnosed glioblastoma (an aggressive cancer that begins within the brain) and INB-100, which focuses on leukemia patients undergoing hematopoietic stem cell transplantation.
In both cases, the gamma-delta T cell’s distinct property of targeted therapeutic delivery is vital for potential success. As you know, traditional cancer treatment approaches such as chemotherapy or radiation treatment essentially represent brute force attacks. They can kill cancer cells but also healthy cells, thereby striking concern among patients. With smart, directed methodologies, medical professionals can impart net holistic therapies.
Therefore, aspirational biotech firms like IN8bio do not typically have strong financial track records in the conventional sense. In many if not most cases, the main directive is to attract enough capital for research and development initiatives. From there, encouraging clinical progress could inspire a buyout deal from a larger organization, thereby making original shareholders potentially wealthy.
Of course, if such clinical trials go awry, you’re left with a substandard business. In IN8bio’s case, the company generated a net loss of nearly $8.6 million in 2020, a noticeable expansion of red ink from the loss of $5.1 million in the prior year. On the plus side, IN8bio had $15 million in cash and $4.1 million in total liabilities as of March 31, 2021.
Under the original and subsequently canceled prospectus with the Securities and Exchange Commission, N8bio planned to offer 4.7 million shares at a price range between $15 and $17 per share. At the midway point, the company would have raised a little over $75 million. On the card to be joint bookrunners for the deal were Barclays (NYSE: BCS), Cantor Fitzgerald and Mizuho Financial Group (NYSE: MFG).
In this go-around, the biotech firm will offer 4 million shares, with the IPO pricing between $10 and $12 per share. In the middle of this range, IN8bio will raise $44 million, noticeably less than the original plan. Assuming this tally, the public offering will allow IN8bio to command an enterprise value of roughly $153 million, excluding underwriter options. B. Riley Financial (NASDAQ: RILY) will act as the sole bookrunner for the proceedings.
Before jumping on this IPO, investors should note two outside facts. First, INAB stock will make its debut in a very crowded field, with 25 companies across global exchanges — including IN8bio — listing on Friday.
Second, public offerings under the leading bookrunning services of B. Riley have generated an average return of 4.9% over the trailing 12 months since their launch date. This performance level runs in the middle of the pack for lead underwriters.
Biotech companies are incredibly risky and that sentiment especially applies for oncology firms. Obviously, if addressing cancer was easy, the pharmaceutical industry would have this treatment space locked down. Unfortunately, as the American Cancer Society states, the namesake disease “can develop anywhere in the body and is named for the part of the body where it started.” Simultaneously, though, this dynamic allows smaller entities like IN8bio to focus on specific treatment methodologies.
Because of the underlying gamma-delta T-cell’s ability to distinguish between healthy, native cells versus sick or cancerous ones, IN8bio could effectively open the full spectrum of modern treatment options for previously difficult or even impossible to treat cancers. For example, chemotherapy might not be appropriate for treating tumors on sensitive organs. Also, gamma-delta T-cells may prevent issues regarding stem cell transplantation patients suffering from unintended immune responses, known as graft-versus-host disease (GVHD).
That’s not to say that gamma-delta T-cells are an automatic panacea for cancer treatments. As a report published in the Journal of Translational Medicine points out, specific gamma-delta T-cell subsets may promote cancer progression directly. Further, some instances show that gamma-delta T-cells “impair the function of other antitumor immunocytes.” As another article published in Frontiers in Immunology noted, “the exact mechanisms responsible for [delta-gamma T-cell] proinflammatory functions remain poorly understood.”
Certainly, IN8bio’s “smart bomb” approach to cell therapy carries the potential to directly execute cancerous cells while greatly limiting collateral damage to nearby healthy cells. Nevertheless, the company does not have a guarantee to progress into late clinical stages due to the underlying therapeutic’s myriad cellular vagaries.
How to Buy IN8bio (INAB) Stock
It’s easy if you know how to buy stocks. If not, follow the steps below.
Step 1: Pick a brokerage.
With the advent of mobile trading apps forcing favorable competition for consumers, virtually all online brokerages offer identical incentives, such as commission-free trading. Therefore, you should focus your attention on features.
Below is a list of best brokers to consider.
Step 2: Decide how many shares you want.
The easiest way to mitigate damage to your portfolio is through your share count. A higher tally increases your reward potential but also exposes you to greater downside volatility. Therefore, pick a number that you’ll be comfortable with.
Step 3: Choose your order type.
Before placing your first wager, review the below market concepts.
- Bid: The highest price a buyer will offer, the bid is always lower than the ask.
- Ask: The lowest price a seller will take, the ask is always higher than the bid.
- Spread: Representing the difference in the bid and ask price, spreads also reveal market liquidity and risk. Tighter spreads imply strong negotiations between bulls and bears, resulting in higher liquidity and lower risk. The opposite is true for wider spreads.
- Limit order: Limit orders fulfill at a specified price only. While giving you maximum control, they offer no execution guarantees.
- Market order: In contrast, market orders guarantee fulfillment but at the going rate, which can fluctuate by the time you place your order.
- Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower than said price.
- Stop-limit order: To eliminate all ambiguities in your exit pricing, stop-limit orders only fulfill at a predetermined rate. However, such orders carry the same non-fulfillment risk as limit orders.
Step 4: Execute your trade.
To execute a market order, follow these steps:
- Select your action type (buy or sell).
- Enter the shares you want to acquire (or sell).
- Hit the Buy (or Sell) button.
Follow the same sequence for limit orders but remember to include your desired execution price.
A Smart Way to Approach Cancer
In many cancer cases, the treatment can be worse than the disease. Thankfully, IN8bio provides a new approach, leveraging targeted cell therapy for eradicating cancer while leaving healthy cells alone.
True, much research remains to be done. Nevertheless, if you can stomach the risk, INAB stock could be a lucrative opportunity for the speculative side of your portfolio.