Inhibrx Biosciences (INBX) has become a focus for biotech investors after reporting interim Phase 2 HexAgon data on INBRX-106 combined with pembrolizumab in first-line head and neck cancer, alongside a recent first quarter earnings update.

The interim HexAgon data and first quarter earnings update come after a period of strong market interest, with a 30 day share price return of 24.12% and a year to date share price return of 45.94%. The 1 year total shareholder return is very large at about 7x.

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With the stock up strongly over the past year and analysts' average price target sitting well above the latest close, the key question now is simple: is there still a buying opportunity here, or is the market already pricing in future growth?

Preferred Multiple of Price to Book: Is it justified?

On paper, Inhibrx Biosciences looks unusual against typical valuation yardsticks, with a P/B ratio of around 76.4x compared with a US Biotechs industry average of 2.3x.

P/B compares the company’s market value with its accounting equity. For Inhibrx Biosciences, this ratio is heavily distorted because shareholders’ equity is currently negative, so the calculated multiple does not give a clean read on what investors are paying relative to the underlying balance sheet.

The presence of negative equity means this P/B figure is more a reflection of accounting structure and funding mix than a straightforward signal on whether the stock looks expensive or cheap compared with peers. For that reason, the ratio is difficult to interpret in the usual way and may not be a helpful anchor for your valuation work.

Given these accounting quirks, comparing the 76.4x P/B with the sector average of 2.3x can easily mislead, because the gap is driven by the negative equity position rather than a like for like premium to industry fundamentals.

Result: Price-to-book of 76.4x (ABOUT RIGHT as a comparison tool is limited)

However, the story can change quickly if HexAgon data disappoints or if ongoing losses of about $130.2 million put extra pressure on future funding plans.

Next Steps

The mix of optimism around HexAgon and concern about ongoing losses is clear. Now is a good time to review the data yourself, weigh both sides of the story, and ground your own judgment in the 1 key reward and 4 important warning signs.

Looking for more investment ideas?

You have already done the work on Inhibrx Biosciences, so do not stop short of comparing it with other opportunities that might fit your style and risk tolerance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.