Inhibrx Biosciences (INBX) stock is reacting to a major regulatory milestone after the FDA accepted the Biologics License Application for ozekibart in unresectable or metastatic conventional chondrosarcoma, supported by positive ChonDRAgon phase III data.

At a share price of $94.81, Inhibrx Biosciences has seen strong momentum over the past quarter, with a 90 day share price return of 62.37%, while the 1 year total shareholder return is very large. This points to a stock where sentiment has shifted sharply as the ozekibart filing has progressed, even though the 30 day share price return is down 8.82%.

If this kind of biotech driven move has your attention, it can be useful to see what else is gaining traction in healthcare related AI by checking the 39 healthcare AI stocks

With Inhibrx Biosciences now trading at US$94.81 against an analyst price target of US$277.50 and very large 1 year returns already on the board, is there still an opportunity here, or has the market already priced in future growth?

Inhibrx Biosciences: What the balance sheet and funding mix are telling investors

For anyone tracking Inhibrx Biosciences after the FDA update, it is worth stepping back and looking at the underlying financial footing that sits behind the share price moves.

The company currently reports revenue of about $1.3m and a net loss of $130.19m, so this remains very much a clinical stage story rather than a business funded by product sales. There is also negative shareholders' equity, which means liabilities exceed assets on the balance sheet.

On top of that, 100% of Inhibrx Biosciences' liabilities are described as higher risk funding, with no customer deposits and a reliance on external borrowing. Debt is not well covered by operating cash flow, which adds another layer of funding risk if conditions tighten or timelines extend.

On the positive side, management has reduced losses over the past 5 years at a rate of 31.9% per year, although the company is still unprofitable and there is no profit margin to assess yet. The stock also carries a value score of 0, which suggests that, based on Simply Wall St's framework, traditional valuation checks are not currently lining up in its favor.

Investors should also be aware that Inhibrx Biosciences has a Price to Book Ratio of around 66x in absolute terms, driven by that negative equity position, compared with about 2.5x for the broader US biotech industry and 3.8x for peers. This kind of gap is often more a reflection of accounting and funding structure than of any conventional "cheap or expensive" signal.

With so many moving parts, it can help to view Inhibrx Biosciences alongside other healthcare and biotech stocks that share similar traits, such as high forecast revenue growth and earlier stage earnings profiles, using tools like the solid balance sheet and fundamentals stocks screener (48 results)

However, Inhibrx Biosciences still faces key risks, including its reliance on higher risk funding and ongoing clinical development, which could shift sentiment quickly if expectations change.

Next Steps

If this mixed picture around Inhibrx Biosciences has you weighing risk against reward, it makes sense to move quickly, review the underlying data, and decide where you stand using the 1 key reward and 4 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.