IMARA Inc.

NasdaqGS:IMRA Stock Report

Market Cap: US$165.8m

This company is no longer active

The company may no longer be operating, as it may be out of business. Find out why through their latest events.

IMARA Management

Management criteria checks 4/4

Key information

Rahul Ballal

Chief executive officer

US$2.0m

Total compensation

CEO salary percentage26.54%
CEO tenure4.7yrs
CEO ownership0.08%
Management average tenure3.8yrs
Board average tenure4.1yrs

Recent management updates

Recent updates

Seeking Alpha • Oct 13

Cancer drug developer Enliven Therapeutics and Imara to merge in all-stock deal

Pharmaceutical firms Enliven Therapeutics and Imara (NASDAQ:IMRA) have agreed to merge in an all-stock transaction. The combined company will focus on advancing Enliven's pipeline of precision oncology product candidates, IMRA said in a statement on Thursday. Enliven has two cancer drug candidates. The merged entity will be renamed Enliven Therapeutics and is expected to trade on the Nasdaq Global Select Market under the ticker symbol ELVN. To support the merger, Enliven also intends to raise about $165M in a concurrent private financing co-led by new investors Fairmount and Venrock Healthcare Capital Partners. The combined company is expected to have a cash balance of about $300M at close. IMRA stock earlier closed +4.5% at $2.58.
Seeking Alpha • Sep 29

Imara: Potential Liquidation

Summary Imara has announced strategic alternatives and has announced the sale its key asset. It now trades 37% below its Pro Forma net cash levels and a liquidation would be ideal. The main risk here is management pursuing a reverse-merger. Imara (IMRA) is a failed $60m MCAP biotech company trading at a 37% discount to its Pro Forma net cash levels. In April, the company reduced its workforce by around 83% (to a total of 6 employees), discontinued its treatment development pipeline (relating to both IMR-687 and IMR-261), and commenced a strategic review. A couple of positive developments have occurred since then. In July, the company terminated its headquarter lease agreement to reduce operating expenses. Quite strange that their website still shows their office location; On the 7th of September, IMRA surprised the market by signing a deal to divest its IMR-687 treatment assets to Cardurion Pharmaceuticals. A key condition here is shareholder approval (majority of votes cast need to support the sale), which should easily pass as management holds 40% of shares outstanding. Management has recently released a preliminary proxy related to the sale but the shareholders' meeting date is yet to be announced. Overall it seems that this is a done deal that should close swiftly as there are no major conditions that stand in the way. The company will continue to explore strategic alternatives post-transaction. Discount to Pro-Forma Cash Upon closing of the aforementioned IMR-673 sale, IMRA will receive an upfront cash payment of $34.75m plus two contingent payments. The contingent payments are structured as follows: $10m will be received if the buyer (Cardurion) achieves a proof on concept milestone or other specified clinical milestones; $50m will be received if the buyer (Cardurion) achieves specified regulatory and/or commercial milestone events. Cardurion is a private company, specializing in cardiovascular disease. The company is developing new therapeutics for heart failure and cardiovascular diseases. Looking at their existing portfolio it is highly likely that the IMR-687 purchase will be used for similar purposes. As IMRA reported only plans of clinical development for IMR-687 in heart failures, it seems that even if the milestones get achieved, they would be hit a long way from now. Hence I view the contingent payments as more of a free option here. For context, if both milestones are achieved, shareholders stand to receive another $2.3/share on top of the existing $3.6/share Pro Forma net cash. The table below shows a more conservative scenario where IMRA only received the upfront payments. Discount to Net Cash (Company's Filings) Cash burn was still elevated in Q2 at near $12m but this was due to R&D expenses still being present and some one-off layoff compensations. Excluding the $7.4m in R&D expenses and excluding the one-off compensations, we arrive at an $8m/year cash burn or $0.3/share. According to these assumptions, after 1 year the company would still be trading at a 31% discount from its cash levels. I believe this provides a decent margin of safety for IMRA especially as it continues to explore strategic alternatives. As a bonus, the company also has its IMR-261 asset that can add additional value. However, the upside from such a sale would likely be minimal. Imara purchased this asset in 2020 for an upfront $75k payment plus uncertain contingent payments. This is a very small sum and Imara has done little work with this asset to suggest it is worth more than it did two years ago. IMR-261 is barely in phase 1 vs phase 2 for the sold IMR-687 treatment. As a side note, management did not comment on whether these sale proceeds will be taxable or not. IMRA has around $270m worth of NOL’s which can most likely be used to offset taxes. So the upfront cash payment of $34.75m is treated as net proceeds. Possible Scenarios Though the outcome of the strategic review is still uncertain, the ideal scenario would be a full-on liquidation of the company. Post-asset sale Imara is basically a cash shell with no operations and no headquarters. Management owns 40% so it would also benefit from a liquidation. The main risk here is that management pursues a reverse merger. Though management owns 40%, they are also used to receiving high salaries. A similar situation has recently happened with IMRA’s peer Sesen Bio. On the 21st of September SESN announced a reverse merger sending SESN’s shares down by 40%. Note that SESN was also a failed biopharma that traded below net-cash levels and announced a strategic review.
Analysis Article • Jul 23

We're Keeping An Eye On IMARA's (NASDAQ:IMRA) Cash Burn Rate

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...
Analysis Article • Sep 09

We're Keeping An Eye On IMARA's (NASDAQ:IMRA) Cash Burn Rate

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...
Analysis Article • May 03

Is IMARA (NASDAQ:IMRA) In A Good Position To Invest In Growth?

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...
Analysis Article • Jan 11

Companies Like IMARA (NASDAQ:IMRA) Are In A Position To Invest In Growth

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

CEO Compensation Analysis

How has Rahul Ballal's remuneration changed compared to IMARA's earnings?
DateTotal CompensationSalaryCompany Earnings
Dec 31 2022n/an/a

US$1m

Sep 30 2022n/an/a

-US$45m

Jun 30 2022n/an/a

-US$54m

Mar 31 2022n/an/a

-US$56m

Dec 31 2021US$2mUS$518k

-US$51m

Sep 30 2021n/an/a

-US$49m

Jun 30 2021n/an/a

-US$47m

Mar 31 2021n/an/a

-US$44m

Dec 31 2020US$626kUS$437k

-US$49m

Sep 30 2020n/an/a

-US$45m

Jun 30 2020n/an/a

-US$39m

Mar 31 2020n/an/a

-US$34m

Dec 31 2019US$2mUS$422k

-US$23m

Sep 30 2019n/an/a

-US$19m

Jun 30 2019n/an/a

-US$16m

Mar 31 2019n/an/a

-US$13m

Dec 31 2018US$938kUS$242k

-US$11m

Compensation vs Market: Rahul's total compensation ($USD1.95M) is about average for companies of similar size in the US market ($USD1.64M).

Compensation vs Earnings: Rahul's compensation has been consistent with company performance over the past year.

CEO

Rahul Ballal (44 yo)

4.7yrs
Tenure
US$1,951,029
Compensation

Dr. Rahul D. Ballal, Ph D., is the Chief Executive Officer of Imara Inc. June 13, 2018. Dr. Rahul serves as Director of Agios Pharmaceuticals, Inc. since August 2022.Dr. Ballal is President and Director a...

Leadership Team

NamePositionTenureCompensationOwnership
Rahul Ballal
President4.7yrsUS$1.95m0.084%
$ 140.0k
Michael Gray
CFO & COO3.8yrsUS$1.22m0.030%
$ 50.3k
Stephen Migausky
Senior VP of Legal & General Counsel2.8yrsno datano data
3.8yrs
Average Tenure

Experienced Management: IMRA's management team is considered experienced (3.8 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
Rahul Ballal
President4.7yrsUS$1.95m0.084%
$ 140.0k
Barbara Dalton
Independent Director7.1yrsUS$82.17k0%
$ 0
David Mott
Independent Chairman7.1yrsUS$120.59k0.87%
$ 1.4m
Carl Goldfischer
Independent Director7.1yrsUS$90.65k0%
$ 0
Joel Marcus
Board Observerno datano datano data
David Bonita
Independent Director3.9yrsUS$80.65k0%
$ 0
Mark Chin
Independent Director3.9yrsUS$85.68k0%
$ 0
Kim Andersen
Board Observer4.1yrsno datano data
Laura Williams
Independent Director1.7yrsUS$105.62k0%
$ 0
Edward Conner
Independent Director2.8yrsUS$79.65k0%
$ 0
Matthew Hammond
Board Observer4.1yrsno datano data
John Cassidy
Board Observer4.1yrsno datano data
4.1yrs
Average Tenure
53yo
Average Age

Experienced Board: IMRA's board of directors are considered experienced (4.1 years average tenure).

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/02/24 23:44
End of Day Share Price 2023/02/23 00:00
Earnings2022/12/31
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

IMARA Inc. is covered by 4 analysts. of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yigal NochomovitzCitigroup Inc
Edward WhiteH.C. Wainwright & Co.
Joseph SchwartzLeerink Partners LLC