Innate Pharma SA Q2 FY2026 earnings call

• Strategic Partnership with SOBI: The strategic partnership for Lecutamab (also referred to as Lacutamab/Liquidramap) with Sobi has closed. This includes a €75 million upfront payment and potential milestones up to €465 million. Sobi will receive exclusive global rights upon accelerated approval.
• Lecutamab Development: The confirmatory Phase 3 study (TELEMAC 3) for cutaneous T-cell lymphoma (CTCL) has been initiated. The first patient is expected in Q1 2027, with an accelerated approval filing targeted for H2 2027 based on existing Phase 2 data.
• IPH4502 Progress: Phase 1 dose escalation and cohort enrichment are complete. Preliminary anti-tumor activity was observed in post-EV urothelial cancer, non-small cell lung cancer (NSCLC), and head and neck cancer, with a favorable safety profile. Initial data will be presented at the EORTC NCI AACR meeting in November 2026.
• Monalizumab Status: Enrollment in the Pacific Nine Phase 3 study (with AstraZeneca) is complete. Results are expected in H2 2026. The partnership includes up to €825 million in additional milestones and profit sharing.
• Financial Position: Cash, cash equivalents, and financial assets stood at €21.4 million as of June 30, 2026. Combined with the €75 million SOBI payment and a €30 million equity raise, the cash runway extends through Q1 2028.
• Preclinical Pipeline: Innate is developing next-generation ADCs using dual-targeted bispecifics, enhanced internalization strategies, and dual payloads to overcome resistance and heterogeneity.

Innate Pharma operates as a biopharmaceutical company focused on specific drug candidates rather than traditional product segments. Therefore, there are no distinct revenue-generating product segments to report in absolute terms or percentage contribution for the first half of 2026. The company's financial position is characterized by cash reserves and strategic partnerships rather than commercial sales revenue from its core pipeline assets.

• Maintenance of Timeline: Management maintains the guidance for TELEMAC 3 first patient-in in Q1 2027 and the accelerated approval filing for Lecutamab in H2 2027.
• Data Release Schedule: Confirmed presentation of initial Phase 1 dose escalation data for IPH4502 at the EORTC NCI AACR meeting on November 18, 2026.
• Catalyst Expectations: Reiterated expectation for Monalizumab Phase 3 readout in H2 2026.
• No Revenue Guidance: As the company is pre-revenue, no forward-looking revenue guidance was provided; focus remains on clinical catalysts and cash runway extension.

• Clinical Risk: IPH4502 is in early Phase 1; while preliminary activity is encouraging, results may not support further development or optimal dosing.
• Regulatory Risk: Accelerated approval for Lecutamab relies on Phase 2 data; confirmatory Phase 3 results must validate clinical benefit to maintain approval.
• Commercial Execution Risk: Success depends on Sobi’s ability to commercialize Lecutamab globally and AstraZeneca’s performance in NSCLC indications.
• Financial Risk: Although cash runway is extended to Q1 2028, continued development requires significant capital; future funding needs may arise if IPH4502 expansion requires broader trials.
• Operational Risk: Dependence on third-party partners (Sobi, AstraZeneca) for key milestones and commercialization outcomes.

Q: Analyst asked about IPH4502’s stable linker design and confidence it will avoid hematologic toxicity seen with other exatecan-based ADCs. / A: COO Yannis Morel explained that their proprietary linker demonstrates high stability in preclinical models (including non-human primates), translating to limited free payload release in humans. CEO Jonathan Dickinson added that recent Lilly data also cited unstable linkers as a cause for hematologic toxicity, reinforcing Innate’s confidence in their design.

Q: Analyst asked about potential off-label frontline use for Lecutamab in CTCL/MF and pricing strategy compared to Mogulizumab. / A: CEO Dickinson stated that NCCN guideline listing is expected, enabling physician discretion for off-label use. Pricing research by ZS Associates suggests a price range of $500,000–$625,000 per patient annually, supported by clinical data and orphan status, allowing for premium pricing in low-incidence indications like CTCL.

Q: Analyst asked if initial IPH4502 data would be primarily safety-focused or mature enough to guide next steps. / A: CMO Marcus Jensen clarified that with 76 patients across 11 indications, the dataset will provide relevant safety and response data to inform subsequent development decisions, including dose optimization or expansion into new tumor types, which will be disclosed at the upcoming AACR meeting.

Q: Analyst asked how far along IPH4502 could advance on its own given the strengthened balance sheet. / A: CEO Dickinson confirmed that the recent €30 million equity raise positions Innate to seamlessly progress IPH4502 into initial next steps, such as dose optimization. He noted that while current funds cover these immediate steps, expanding the program to multiple tumor types might require additional future funding.

Q: Analyst asked about communication plans for the Monalizumab Pacific 9 Phase 3 results. / A: CEO Dickinson confirmed that AstraZeneca will issue a press release upon result availability. Innate Pharma also plans to issue its own press release and potentially hold analyst calls following the release of primary endpoint data.