Inhibrx Biosciences Q2 2024 Financial Results and Corporate Highlights

Inhibrx Biosciences, Inc. (Nasdaq: INBX), a biopharmaceutical company, announced its financial results for the second quarter of 2024 and shared updates on significant corporate events.

Separation from Former Parent

In January 2024, Inhibrx, Inc. revealed plans to spin off INBRX-101, a refined recombinant alpha-1 antitrypsin (AAT) augmentation therapy for alpha-1 antitrypsin deficiency, which are now in the final stages of clinical trials. This spin-off was approved by the board of directors.

On May 30, 2024, the separation was completed. The assets and liabilities associated with INBRX-101 were transferred to Aventis Inc., a subsidiary of Sanofi S.A. During this reorganization, Inhibrx Biosciences acquired assets and responsibilities linked to its ongoing programs, INBRX-106 and ozekibart (INBRX-109), as well as its research pipeline. Additionally, the company took over final obligations related to the discontinued INBRX-105 program.

Post-transaction, former shareholders received $30.00 per share in cash, a contingent value right promising an additional $5.00 upon hitting a regulatory milestone, and one share of Inhibrx Biosciences stock for every four shares of the original company held. The former parent company retained an 8% equity stake in Inhibrx Biosciences post-distribution.

In connection with the separation, Aventis Inc. paid around $2.2 billion, which included $35.00 per share and assumed the third-party debt of the former parent company. Moreover, Aventis also covered $68.0 million in associated transaction costs.

After the split, Inhibrx Biosciences operates as an independent, publicly traded entity focusing on its clinical programs, INBRX-106 and ozekibart (INBRX-109). The company remains listed under the ticker INBX on the Nasdaq Global Market. The separation and distribution are not expected to impact future operational results directly.

Financial Results

As of June 30, 2024, Inhibrx Biosciences had $226.9 million in cash and equivalents, down from $255.4 million just after the separation. Significant cash outflows included $17.7 million distributed to former parent company option holders, alongside ongoing operational expenses.

Research and Development Expenses

R&D expenses rose significantly in the second quarter of 2024, totaling $67.6 million, up from $34.1 million in the same quarter of 2023. This increase resulted from:

1. Stock option expenses due to the acceleration of options tied to the separation.
2. Higher CMC (Chemistry, Manufacturing, and Controls) expenses related to clinical and preclinical activities.
3. Reduced clinical trial expenses following the termination of the INBRX-105 program and the removal of INBRX-101 post-separation.

General and Administrative Expenses

G&A expenses also saw a sharp rise, hitting $93.4 million in the second quarter of 2024, up from $7.3 million in the previous year. This increase was driven by:

1. Legal, advisory, and consulting fees related to the separation.
2. Stock option expenses linked to the separation.
3. Higher pre-commercialization expenses, including consulting services and market research for ozekibart (INBRX-109) and INBRX-101.
4. Increased professional service expenses for legal and corporate matters.

Other Income (Expense)

Other income for the second quarter of 2024 was $2.0 billion, a stark contrast to an expense of $5.7 million in the same period of 2023. This gain was attributed to the completion of the separation and included payments for outstanding stock, warrants, stock options, and the assumption of debt and transaction costs by Aventis.

Net Income (Loss)

The company reported a net income of $1.9 billion for the second quarter of 2024, translating to earnings per share of $127.10 basic and $125.48 diluted. This is a significant turnaround from a net loss of $47.1 million or $4.31 per share in the second quarter of 2023.

About Inhibrx Biosciences, Inc.

Inhibrx Biosciences is a clinical-stage biopharmaceutical company dedicated to developing novel biologic therapies, especially in oncology. The company uses advanced protein engineering techniques to tackle complex diseases.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!