Inhibrx Biosciences (INBX) is back in focus after the FDA accepted its Biologics License Application for ozekibart in unresectable or metastatic conventional chondrosarcoma, a key regulatory step supported by positive ChonDRAgon trial data.

The FDA filing has put Inhibrx Biosciences back on traders’ radar, with the share price at US$93.05 after a sharp 90 day share price return of 52.74% and a very large 1 year total shareholder return. However, the 30 day share price return is down 15.42%, which hints that near term momentum has cooled following the initial reaction to the ozekibart news and mixed technical signals.

If this kind of biotech catalyst has your attention, it could also be a good moment to scan a wider set of healthcare focused opportunities using our screener for 40 healthcare AI stocks

With Inhibrx Biosciences now trading at US$93.05 after a very large 1 year total shareholder return and sitting at a discount of about 2% to the latest analyst price target, 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?

For Inhibrx Biosciences, the valuation picture is complicated by a P/B ratio of roughly 64.9x on negative equity, which already signals that the usual balance sheet based checks are stretched.

Price to book is meant to compare a company’s market value to its net assets, which can be a useful sense check for asset heavy sectors. In a clinical stage biotech with limited revenue of about $1.3m and a reported net loss of $130.19m, this metric is harder to lean on because liabilities exceed assets and shareholders’ equity is negative.

Simply Wall St is unable to calculate a fair P/B ratio for Inhibrx Biosciences, and there is also insufficient data to run the SWS DCF model on its future cash flows. That leaves traders and longer term holders weighing the current $1.37b market cap mainly against the pipeline story, the ChonDRAgon data and the accepted filing for ozekibart, rather than a firm valuation anchor.

Result: Preferred multiple of price to book (ABOUT RIGHT) relative to the limited data available.

However, Inhibrx Biosciences still faces key risks, including potential clinical or regulatory setbacks for ozekibart and ongoing losses, with revenue of only US$1.3m against a reported net loss.

Next Steps

When considering the risks and potential rewards associated with Inhibrx Biosciences, you may wish to act promptly and evaluate the information independently by reviewing the 1 key reward and 4 important warning signs

Looking for more investment ideas beyond Inhibrx Biosciences?

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• Target potential mispricing by scanning companies that appear attractively valued on quality metrics through the 45 high quality undervalued stocks.
• Prioritise resilience by reviewing stocks highlighted in the 66 resilient stocks with low risk scores that score well on risk related factors.
• Hunt for underfollowed opportunities by checking the screener containing 19 high quality undiscovered gems before they draw wider market attention.

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.