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IMARA (IMRA) Stock Overview
IMARA Inc., a biopharmaceutical company, focuses on developing and commercializing novel therapeutics to treat patients suffering from serious diseases. More details
| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
IMRA Community Fair Values
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IMARA Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$6.32 |
| 52 Week High | US$6.32 |
| 52 Week Low | US$0.97 |
| Beta | 1.08 |
| 1 Month Change | 50.48% |
| 3 Month Change | 43.64% |
| 1 Year Change | 321.33% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -57.87% |
Recent News & Updates
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.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.Recent updates
Shareholder Returns
| IMRA | US Pharmaceuticals | US Market | |
|---|---|---|---|
| 7D | 20.2% | -2.3% | 0.3% |
| 1Y | 321.3% | 35.9% | 26.2% |
Return vs Industry: IMRA exceeded the US Pharmaceuticals industry which returned 8.5% over the past year.
Return vs Market: IMRA exceeded the US Market which returned -9% over the past year.
Price Volatility
| IMRA volatility | |
|---|---|
| IMRA Average Weekly Movement | 9.4% |
| Pharmaceuticals Industry Average Movement | 9.7% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.0% |
Stable Share Price: IMRA's share price has been volatile over the past 3 months.
Volatility Over Time: IMRA's weekly volatility has decreased from 17% to 9% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2016 | 6 | Rahul Ballal | imaratx.com |
IMARA Inc., a biopharmaceutical company, focuses on developing and commercializing novel therapeutics to treat patients suffering from serious diseases. The company was incorporated in 2016 and is based in Brookline, Massachusetts.
IMARA Inc. Fundamentals Summary
| IMRA fundamental statistics | |
|---|---|
| Market cap | US$165.80m |
| Earnings (TTM) | US$1.49m |
| Revenue (TTM) | n/a |
Is IMRA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| IMRA income statement (TTM) | |
|---|---|
| Revenue | US$0 |
| Cost of Revenue | US$0 |
| Gross Profit | US$0 |
| Other Expenses | -US$1.49m |
| Earnings | US$1.49m |
Last Reported Earnings
Dec 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.057 |
| Gross Margin | 0.00% |
| Net Profit Margin | 0.00% |
| Debt/Equity Ratio | 0% |
How did IMRA perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2023/02/24 03:56 |
| End of Day Share Price | 2023/02/23 00:00 |
| Earnings | 2022/12/31 |
| Annual Earnings | 2022/12/31 |
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.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* 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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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.
| Analyst | Institution |
|---|---|
| Yigal Nochomovitz | Citigroup Inc |
| Edward White | H.C. Wainwright & Co. |
| Joseph Schwartz | Leerink Partners LLC |