Why the latest ozekibart update matters for Inhibrx Biosciences investors

Inhibrx Biosciences (INBX) has drawn fresh attention after releasing updated interim data for ozekibart in colorectal cancer and submitting a Biologics License Application for the drug in conventional chondrosarcoma.

The latest ozekibart updates arrive against a backdrop of intense trading interest, with the share price at US$129.21 and a 30 day share price return of 92.19%. Across the past year, total shareholder return is very large, and momentum appears to have been building as clinical and regulatory milestones accumulate.

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With INBX up 92.19% in 30 days and total shareholder return over the past year described as very large, you have to ask: is there still mispricing here, or is the market already baking in future growth?

Preferred Price to Book of 236.1x: Is it justified?

INBX is trading on a P/B ratio of 236.1x, which is described as expensive relative to both its peers and the broader US Biotechs industry, even after a very strong 1 year total return.

The P/B ratio compares the company’s market value to its book value. A higher figure can indicate that investors are placing a large premium on future prospects relative to the current net assets on the balance sheet.

For Inhibrx Biosciences, this very high P/B sits alongside limited current revenue of about $1.3m, ongoing losses of $140.055m, and a value score of 0. This combination suggests the market is attaching a rich valuation despite the company being unprofitable and forecast to remain so over the next 3 years.

Compared to the peer group average P/B of 3.5x and the US Biotechs industry average of 2.2x, INBX is described as expensive by a very wide margin. This indicates that its valuation is far above what is typical for the sector based on book value alone.

Result: Price-to-book of 236.1x (OVERVALUED).

However, the story can shift quickly if ozekibart data disappoints regulators or if the current US$1.8b valuation proves hard to support on US$1.3m revenue.

Next Steps

Given how stretched the valuation already looks, this is a good time to review the numbers yourself, weigh the trade off, and see the 2 important warning signs

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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.