Replies to post #179760 on Biotech Values

[ariadndndough]

Innate target upped at GS

COMPANY UPDATE
Innate Pharma SA (IPH.PA)
Buy
Equity raise increases visibility, pipeline optionality – revise up PT
What's changed
Following last week’s announcement, IPH raised €50mn (6.25mn shares at €8) via a secondary equity offering. Proceeds will fund in-house development of its 2nd clinical asset (IPH2201, anti-NKG2A) in three tumor types (head & neck, ovarian, CLL blood cancer) starting in 2H14. We reflect 13.4% equity dilution, an increase in cash, increased R&D spend (estimate incremental €40mn over 3.5 years) and upside from NKG2A economics in our model and revise up our 12-month target price to €19 from €18.
Implications