Rare Disease And Neuroinflammation Platforms Will Unlock Significant Long-Term Upside Potential

Catalysts

About INmune Bio

INmune Bio develops platform immunotherapies that target inflammation and innate immunity to treat serious neurological, oncologic and rare diseases.

What are the underlying business or industry changes driving this perspective?

• Advancing CORDStrom toward a U.K. marketing authorization application in mid 2026 and a U.S. BLA shortly thereafter positions INmune Bio for its first commercial product in a high value rare disease. This could create a potential inflection in revenue and operating leverage once fixed costs are absorbed.
• Growing recognition of inflammation as a central driver of neurodegeneration, combined with XPro’s clean safety profile without ARIA and targeted benefit in highly inflamed Alzheimer’s patients, supports differentiated late stage development that could command premium pricing and expand long term earnings power.
• CORDStrom’s systemic mechanism in RDEB, alongside topical gene therapies that do not address whole body inflammation or itch, creates a compelling add on or alternative treatment role. This can drive durable market share and support robust gross margins due to scalable manufacturing.
• The INKmune program’s demonstration of in vivo memory like NK cell activation and successful completion of a Phase II prostate cancer study ahead of schedule strengthens partnering optionality in oncology. This can bring non dilutive capital and milestone payments that improve net income trajectories.
• Management’s process engineered approach to cell therapy manufacturing, with pooled donor CORDStrom designed for consistent, cost efficient commercial scale production, directly addresses historical cost and variability hurdles in the field. This supports structurally higher net margins as volumes grow.

Assumptions

This narrative explores a more optimistic perspective on INmune Bio compared to the consensus, based on a Fair Value that aligns with the bullish cohort of analysts. How have these above catalysts been quantified?

• The bullish analysts are assuming INmune Bio's revenue will grow by 688.7% annually over the next 3 years.
• The bullish analysts are not forecasting that INmune Bio will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate INmune Bio's profit margin will increase from -99774.0% to the average US Biotechs industry of 16.0% in 3 years.
• If INmune Bio's profit margin were to converge on the industry average, you could expect earnings to reach $3.9 million (and earnings per share of $0.12) by about December 2028, up from $-49.9 million today.
• In order for the above numbers to justify the price target of the more bullish analyst cohort, the company would need to trade at a PE ratio of 81.3x on those 2028 earnings, up from -1.0x today. This future PE is greater than the current PE for the US Biotechs industry at 19.1x.
• The bullish analysts expect the number of shares outstanding to grow by 7.0% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 7.04%, as per the Simply Wall St company report.

Risks

What could happen that would invalidate this narrative?

• CORDStrom’s commercial success depends on favorable regulatory outcomes and pricing in ultra rare RDEB. Any delay in MAA or BLA approvals, challenges in demonstrating robust systemic potency, or reimbursement pushback in cost constrained health systems could materially limit adoption and slow revenue growth.
• The company is pursuing multiple complex cell and neuroinflammation platforms simultaneously at a time when cash only funds operations into Q4 2026. Any setbacks in partnering or capital raising as trial costs increase could force pipeline prioritization or dilution that pressures earnings and net margins.
• Long term Alzheimer’s and oncology markets are highly competitive and capital intensive. If XPro fails to secure an accelerated path or a clear registrational design, or if INKmune’s next trials are constrained by resources, larger competitors could capture the opportunity and reduce INmune Bio’s potential revenue and operating leverage.
• Even if CORDStrom is approved, broader long term shifts toward high priced gene therapies and alternative cell therapies for RDEB and other indications may limit CORDStrom’s share if payers and clinicians favor one time or established options. This would cap peak sales and compress gross margins despite process engineered manufacturing.
• INmune Bio currently generates no commercial revenue and remains loss making. If clinical data updates, regulatory feedback or peer reviewed publications reveal weaker than expected efficacy or durability across its platforms, investor confidence could fall, increasing financing costs and prolonging negative net income.

Valuation

How have all the factors above been brought together to estimate a fair value?

• The assumed bullish price target for INmune Bio is $8.0, which represents up to two standard deviations above the consensus price target of $5.25. This valuation is based on what can be assumed as the expectations of INmune Bio's future earnings growth, profit margins and other risk factors from analysts on the bullish end of the spectrum.
  
• However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $8.0, and the most bearish reporting a price target of just $2.0.
  
• In order for you to agree with the more bullish analyst cohort, you'd need to believe that by 2028, revenues will be $24.5 million, earnings will come to $3.9 million, and it would be trading on a PE ratio of 81.3x, assuming you use a discount rate of 7.0%.
  
• Given the current share price of $1.91, the analyst price target of $8.0 is 76.1% higher.
  
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.