Inhibrx's FY2025 Financials Confirm Cash Burn Amid Fragile BLA Timeline, Reinforcing WAIT Rating

What happened

Inhibrx reported its fourth quarter and fiscal year 2025 financial results, emphasizing its post-separation focus on ozekibart after the INBRX-101 sale to Sanofi, though the press release likely glosses over ongoing financial pressures. The DeepValue report highlights that the company remains pre-revenue with $153.1M cash as of September 2025 and negative free cash flow, indicating sustained burn that threatens runway if the BLA timeline slips. Management's reiteration of a Q2 2026 BLA submission for ozekibart is central, but the report critically notes that credibility is undermined by past hepatotoxicity issues and outsourced manufacturing risks. This update does not address the binding liver-safety constraints or provide new FDA-readiness signals, leaving the investment thesis unchanged. Investors should view these results as a routine checkpoint that maintains high asymmetry around the upcoming BLA milestone.

Implication

For investors, the financials confirm Inhibrx's pre-revenue status and operational cash drain, necessitating close monitoring of liquidity as pre-commercial spending accelerates. The lack of material updates on BLA readiness or liver-safety mitigation means the core risk—timeline slippage due to FDA scrutiny—remains fully priced into the stock at current levels. Any delay beyond the Q2 2026 window could trigger significant downside, given the crowded narrative and absence of near-term optionality from INBRX-106. The report's WAIT rating is upheld, as this news fails to de-risk the regulatory hurdles or improve margin of safety. Consequently, investors should remain on the sidelines until concrete BLA submission signals emerge or a pullback offers a more attractive entry.

Thesis delta

The DeepValue report's WAIT rating is unchanged, as the financial results do not alter the fundamental thesis centered on ozekibart's Q2 2026 BLA submission and liver-safety risks. No shift in investment rationale occurs; instead, the update reinforces the need for vigilance on cash burn and timeline credibility ahead of key checkpoints by May 2026.