Press Release: Innate Pharma Reports Full Year 2025 Financial Results and Business Update

Dow Jones
03/26
   --  Lacutamab TELLOMAK-3 confirmatory Phase 3 trial in cutaneous T-cell 
      lymphoma (CTCL) is planned for initiation in H2 2026, subject to 
      non-dilutive financing options currently under negotiation, including 
      pharma partnering and royalty structures 
   --  IPH4502 (Nectin-4 ADC) shows preliminary anti-tumor activity with 
      favorable safety profile to date; Phase 1 cohort enrichment ongoing at 
      active dose levels 
   --  Monalizumab PACIFIC-9 Phase 3 trial, partnered with AstraZeneca, 
      continues to advance toward a planned H2 2026 data readout 
   --  IPH5201 (anti-CD39 antibody), partnered with AstraZeneca - Interim 
      results of MATISSE Phase 2 trial in non-small cell lung cancer (NSCLC) 
      have been selected for an oral presentation in one of the Clinical Trials 
      Plenary Session Sessions at the AACR Annual Meeting 2026, on April 21 
   --  Cash position of EUR44.8 million1 as of December 31, 2025 with an 
      anticipated cash runway until the end of Q3 2026 
   --  Conference call to be held today at 2:00 p.m. CET / 9:00 a.m. EDT 
MARSEILLE, France--(BUSINESS WIRE)--March 26, 2026-- 

Regulatory News:

Innate Pharma SA (Euronext Paris: IPH; Nasdaq: IPHA) ("Innate" or the "Company") today reported its business update and consolidated financial results for the year ending December 31, 2025. The consolidated financial statements are attached to this press release.

"2025 has been a year of strong execution across our portfolio. With the TELLOMAK-3 design finalized and FDA clearance in hand, lacutamab is planned for confirmatory Phase 3 initiation in H2 2026, dependent on current negotiations with pharma partners and royalty structures. IPH4502, our Nectin-4 exatecan ADC, is progressing rapidly, with early signs of anti-tumor activity in heavily pre-treated patients, including in urothelial cancer post-enfortumab vedotin, where we aim to validate our preclinical hypothesis supporting a differentiated profile versus MMAE-based approaches. We continue to enrich cohorts at pharmacologically active dose levels, and explore activity in tumors with low to moderate Nectin-4 expression, where we believe IPH4502 has best-in-class potential among Topo I-based Nectin-4 ADCs. We look forward to the PACIFIC-9 readout in H2 2026, which remains a key catalyst for Innate Pharma," said Jonathan Dickinson, Chief Executive Officer of Innate Pharma.

 
_________________________ 
(1) Including short term investments (EUR6.2m) and non-current financial 
instruments (EUR10.5m). 
 
 
  Webcast and conference call will be held today at 2:00pm CET (9:00am EDT) 
 Click here to access to live webcast. Analysts may also join via telephone, 
 click here to register. This information can also be found on the Investors 
 section of the Innate Pharma website, www.innate-pharma.com. A replay of the 
  webcast will be available on the Company website for 90 days following the 
                                    event. 
------------------------------------------------------------------------------ 
 

Pipeline highlights:

Lacutamab (anti-KIR3DL2 antibody):

Cutaneous T Cell Lymphoma

   --  The planned confirmatory Phase 3 TELLOMAK-3 trial is an open-label, 
      multi-center, randomized, comparative study evaluating lacutamab in 
      patients with Sézary syndrome and mycosis fungoides, who have failed 
      at least one prior systemic therapy. 
   --  TELLOMAK-3 includes two cohorts: a confirmatory cohort in Sézary 
      syndrome, intended to support a potential Accelerated Approval based on 
      existing TELLOMAK Phase 2 data, and a registrational cohort in mycosis 
      fungoides, intended to support full approval. The primary endpoint of the 
      study for both cohorts is progression-free survival $(PFS)$ evaluated by 
      blinded central review. 
   --  Following the U.S. Food and Drug Administration (FDA) review of the 
      Phase 3 protocol, with no further comments in November 2025, the trial is 
      planned for initiation in H2 2026. 
   --  The FDA provided encouraging feedback on the TELLOMAK Phase 2 results 
      and the proposed regulatory pathway, which may support an Accelerated 
      Approval in Sézary syndrome once the Phase 3 trial is underway. In 
      February 2025, the FDA granted Breakthrough Therapy Designation to 
      lacutamab for relapsed or refractory Sézary syndrome. 
   --  The TELLOMAK Phase 2 trial is completed, and patients who were 
      receiving treatment will continue to receive lacutamab through a Post 
      Trial Access program. 

Peripheral T Cell Lymphoma (PTCL)

   --  KILT (anti-KIR in T-Cell Lymphoma) Phase 2 trial, an 
      investigator-sponsored, randomized study led by the Lymphoma Study 
      Association (LYSA) evaluating lacutamab in combination with GEMOX 
      (gemcitabine and oxaliplatin) versus GEMOX alone in patients with 
      KIR3DL2-expressing relapsed/refractory PTCL, is ongoing. 

IPH4502 (Nectin-4 exatecan ADC):

   --  The IPH4502-101 Phase 1 study (NCT06781983), recruiting in France and 
      in the United States, is evaluating the safety, tolerability, and 
      preliminary anti-tumor activity of IPH4502 in advanced solid tumors known 
      to express Nectin-4, including but not limited to urothelial carcinoma, 
      non-small cell lung, breast, ovarian, gastric, esophageal, and colorectal 
      cancers. 
   --  The first patient was dosed in January 2025. The maximum tolerated dose 
      $(MTD)$ is currently being explored, with cohort enrichment ongoing at 
      pharmacologically active dose levels, including in patients with 
      urothelial cancer relapsed or refractory to enfortumab vedotin, as well 
      as selected additional tumor types. Preliminary anti-tumor activity was 
      observed in heavily pre-treated patients with advanced solid tumors with 
      a favorable safety profile to date. 

Monalizumab (anti-NKG2A antibody), partnered with AstraZeneca:

   --  The PACIFIC-9 Phase 3 trial run by AstraZeneca evaluating durvalumab 
      (anti-PD--L1) in combination with monalizumab or AstraZeneca's oleclumab 
      (anti-CD73) in patients with unresectable, Stage III non-small cell lung 
      cancer (NSCLC) who have not progressed following definitive 
      platinum-based concurrent chemoradiation therapy $(CRT)$ is ongoing. 
      Enrollment in the trial is complete, and data readout is expected in H2 
      2026. 

Other Clinical stage assets

IPH5201 (anti-CD39 antibody, partnered with AstraZeneca): The MATISSE Phase 2 trial, evaluating IPH5201 in combination with durvalumab and platinum-based chemotherapy in the neoadjuvant lung cancer setting, is ongoing and continues recruitment, following a pre-planned interim analysis performed for efficacy on 40 patients. These interim results have been selected for an oral presentation in a Clinical Trials Plenary Session at the AACR Annual Meeting 2026 (April 17--22, 2026, San Diego).

IPH5301 (anti-CD73, proprietary): The investigator-sponsored CHANCES Phase 1 trial of IPH5301 with Institut Paoli-Calmettes is ongoing.

IPH6101 (ANKET$(R)$ anti-CD123, proprietary): Innate regained the rights to SAR'579/IPH6101 in July 2025. Innate has initiated a research collaboration to further assess next steps of development.

IPH6501 (ANKET(R) anti-CD20 with IL-2V, proprietary): The Phase 1/2 study has evaluated IPH6501 in patients with B-cell non-Hodgkin's lymphoma (B-NHL). Following completion of dose escalation, the study has been discontinued as part of the Company's strategic prioritization of its pipeline. Clinical data are expected to be presented in 2026.

IPH6401/SAR'514 (ANKET(R) anti-BCMA, partnered with Sanofi): In a recent corporate update, Sanofi announced deprioritization of SAR'514, a trifunctional anti-BCMA NK-cell engager. Sanofi retains exclusive development and commercialization rights, and the license terms remain unchanged.

Corporate Update:

   --  As previously announced, in line with its strategic focus, the Company 
      has streamlined its organization. Planned layoffs are being implemented 
      through a redundancy plan and should be completed in H1 2026. A 
      collective majority agreement supporting the redundancy plan was endorsed 
      by the French authorities (Dreets) in December 2025. 
 
   --  The ATM program, pursuant to which Innate may, from time to time, offer 
      and sell to eligible investors a total gross amount of up to $75 million 
      of American Depositary Shares ("ADS") is still in place. As of December 
      31, 2025, no sales have been made under the program. As of December 31, 
      2025, the balance available under our April 2023 sales agreement under 
      the At-The-Market program remains at $75 million. 

Financial highlights for 2025:

The key elements of Innate's financial position and financial results as of and for the year ended December 31, 2025 are as follows:

   --  Cash, cash equivalents, short-term investments and financial assets 
      amounting to EUR44.8 million as of December 31, 2025 (EUR91.1m as of 
      December 31, 2024), including EUR10.5m in non-current financial 
      instruments (EUR10.3m as of December 31, 2024). 
   --  As of December 31, 2025, financial liabilities amount to EUR22.6m 
      (EUR31.0m as of December 31, 2024). This change is mainly due to loan 
      repayments. 
   --  Revenue and other income amounted to EUR9.0m in 2025 (2024: EUR20.1m, 
      -55.2%). It mainly comprises revenue from collaboration and licensing 
      agreements (EUR2.8m in 2025 vs EUR12.6m in 2024, -77.9%), and research 
      tax credit (EUR6.2m in 2025 vs EUR7.5m in 2024, -17.1%): 
   --  Revenue from collaboration and licensing agreements mainly resulted 
      from the partial or entire recognition of the proceeds received pursuant 
      to the agreements with AstraZeneca and Sanofi. They are recognized when 
      the entity's performance obligation is met. Their accounting is made at a 
      point in time or spread over time according to the percentage of 
      completion of the work that the Company is committed to carry out under 
      these agreements: 
 
          --  (i) Revenue from collaboration and licensing agreements for 
             monalizumab decreased by EUR4.2m to EUR0.2m in 2025 ( EUR4.4m in 
             2024). As of December 31, 2025, the revenue from this agreement 
             has been fully recognized, and accordingly, no "Current contract 
             liabilities" related to these studies remains. 
 
 
   --  (ii) Revenue related to the research collaboration and licensing 
      agreement signed with Sanofi in 2022 amounted EUR0.4m as of December 31, 
      2025 (EUR2.1m as of December 31, 2024). After Sanofi's announcement in 
      October 2024 that it was returning the rights related to its second 
      option, terminating the research collaboration, the EUR1.7 million in 
      revenue allocated to the research work to be conducted by the company was 
      recognized in full in the income statement as of December 31, 2024. 
      Revenue related to research work on the first license amounted to 
      EUR401,000 during fiscal year 2025, as it did during fiscal year 2024. 
   --  (iii) Revenue related to the license and collaboration agreement signed 
      with Sanofi in 2016 decreased by EUR4.0m and are nil for year ended 
      December 31, 2025. Innate regained the right to SAR'579/IPH6101 in July 
      2025. 
   --  The research tax credit $(CIR)$ of EUR6.2m of as December 31, 2025 
      (EUR7.5m for year ended December 31, 2024). The 17% decrease resulted 
      from the eligible costs decrease. 
   --  Operating expenses amounted to EUR63.0m in 2025 (2024: EUR71.7m, 
      -12.1%): 
   --  General and administrative (G&A) expenses amounted to EUR19.4m in 2025 
      (2024: EUR19.7m, -1.6%). These expenses represented 27% and 31% of net 
      operating expenses for the years ended December 31, 2024 and 2025 
      respectively. G&A expenses mainly comprise personnel costs not allocated 
      to research and development, as well as costs of services relating to the 
      management of the Company. The decrease between 2024 and 2025 results 
      from the combined effect of (i) lower non--scientific consulting fees and 
      (ii) reduced insurance expenses. Personnel expenses remained stable 
      despite EUR0.6 million in restructuring charges resulting from the 
      implementation of the Workforce Restructuring Plan (Plan de Sauvergarde 
      de Sauvegarde de l'Emploi). 
   --  Research and development (R&D) expenses from continuing activities 
      amounted to EUR43.6m in 2025 (2024: EUR52.0m, -16.1%). R&D expenses from 
      continuing operations amounted to EUR43.6 million and EUR52.0 million for 
      the years ended December 31, 2025 and 2024, respectively. These expenses 
      represented 73% and 69% of net operating expenses from continuing 
      operations for the years ended December 31, 2024 and 2025, respectively. 
      The decrease between 2024 and 2025 mainly reflects lower direct research 
      and development costs related to clinical programs. Indirect research and 
      development expenses decreased primarily due to lower personnel costs 
      (excluding restructuring charges of EUR2.3 million), reduced scientific 
      consulting fees, lower depreciation and amortization, and a decrease in 
      intellectual property expenses, partially offset by restructuring charges 
      associated with the implementation of the Workforce Restructuring Plan 
      (Plan de Sauvegarde de l'Emploi). 
   --  A net financial income of EUR4.8m in 2025 (2024: EUR2.1m gain). The 
      financial income has been increased due to favorable foreign exchange 
      impact. 
   --  A net loss of EUR49.2m in 2025 (2024: net loss of EUR49.5m). 

The table below summarizes the IFRS consolidated financial statements as of and for the year ended December 31, 2025, including 2024 comparative information.

 
In thousands of euros, except for data 
per share                                 December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
   Revenue and other income                           9,005             20,121 
----------------------------------------  -----------------  ----------------- 
   Research and development                        (43,620)           (51,980) 
   Selling, general and administrative             (19,394)           (19,716) 
----------------------------------------  -----------------  ----------------- 
   Total operating expenses                        (63,013)           (71,696) 
----------------------------------------  -----------------  ----------------- 
   Operating income (loss) before 
    impairment                                     (54,008)           (51,575) 
----------------------------------------  -----------------  ----------------- 
   Impairment of intangible asset                        --                 -- 
----------------------------------------  -----------------  ----------------- 
   Operating income (loss) after 
    impairment                                     (54,008)           (51,575) 
----------------------------------------  -----------------  ----------------- 
   Net financial income (loss)                        4,831              2,104 
   Income tax expense                                    --                 -- 
----------------------------------------  -----------------  ----------------- 
   Net income (loss) from continuing 
    operations                                     (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
   Net income (loss) from discontinued 
   operations                                            --                 -- 
----------------------------------------  -----------------  ----------------- 
   Net income (loss)                               (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
   Weighted average number of shares 
    outstanding (in thousands)                       89,591             81,052 
   Basic income (loss) per share                     (0.55)             (0.61) 
   Diluted income (loss) per share                   (0.55)             (0.61) 
   Basic income (loss) per share from 
    continuing operations                            (0.55)             (0.61) 
   Diluted income (loss) per share from 
    continuing operations                            (0.55)             (0.61) 
   Basic income (loss) per share from 
   discontinued operations                               --                 -- 
   Diluted income (loss) per share from 
   discontinued operations                               --                 -- 
 
                                          December 31, 2025  December 31, 2024 
                                          -----------------  ----------------- 
   Cash, cash equivalents and financial 
    asset                                            44,765             91,051 
   Total assets                                      62,719            111,059 
   Shareholders' equity                             -21,704              8,834 
   Total financial debt                              22,573             30,995 
 

About Innate Pharma:

Innate Pharma S.A. is a global, clinical-stage biotechnology company developing immunotherapies for cancer patients. Leveraging its expertise on antibody-engineering and innovative target identification, Innate Pharma is developing innovative and differentiated next-generation antibody therapeutics.

Innate Pharma is advancing a portfolio of differentiated potential first- and/or best-in-class assets, focused on areas of high unmet medical need, including IPH4502, a differentiated Nectin-4 ADC developed in solid tumors, lacutamab, an anti-KIR3DL2 antibody developed in cutaneous T cell lymphomas and peripheral T cell lymphomas, and monalizumab, an anti-NKG2A antibody developed in collaboration with AstraZeneca in non-small cell lung cancer.

Innate Pharma has established collaborations with leading biopharmaceutical companies, including Sanofi and AstraZeneca, as well as renowned academic and research institutions, to advance innovation in immuno-oncology.

Headquartered in Marseille, France with a US office in Rockville, MD, Innate Pharma is listed on Euronext Paris and Nasdaq in the US.

Learn more about Innate Pharma at www.innate-pharma.com and follow us on LinkedIn and X.

Information about Innate Pharma shares:

 
ISIN code Ticker code LEI    FR0010331421 
                              Euronext: IPH Nasdaq: IPHA 
                              9695002Y8420ZB8HJE29 
 

Disclaimer on forward-looking information and risk factors:

This press release contains certain forward-looking statements, including those within the meaning of applicable securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than present and historical facts and conditions contained in this press release, including statements regarding the future results of operations and financial position, business strategy, plans and the Company's objectives for future operations, are forward-looking statements. These are based on the management's current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to the management. When used in this press release, certain words, including "anticipate," "plan," "believe," "can," "could," "estimate," "project," "expect," "may," "might," "potential," "expect" "should," "will," or the negative of these and similar expressions, identify forward-looking statements. Although the Company believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially

from those anticipated. These risks and uncertainties include, among other things, the uncertainties inherent in research and development, including related to safety, progression of and results from its ongoing and planned clinical trials and preclinical studies, review and approvals by regulatory authorities of its product candidates, enrolment, results and other milestones of its preclinical trials, the Company's reliance on third parties to manufacture its product candidates, the Company's commercialization efforts and the Company's continued ability to raise capital to fund its development and product trials given its current cash position and the impact an inability to raise further financing would have on the Company's ability to meet its financial or business objectives. For an additional discussion of risks and uncertainties, which could cause the Company's actual results, financial condition, performance or achievements to differ materially from those contained in the forward-looking statements, please refer to the Risk Factors ("Facteurs de Risque") section of the Universal Registration Document filed with the French Financial Markets Authority ("AMF"), which is available on the AMF website http://www.amf-france.org or on Innate Pharma's website, and public filings and reports filed with the U.S. Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 20-F for the year ended December 31, 2024, and subsequent filings and reports filed with the AMF or SEC, or otherwise made public by the Company. References to the Company's website and the AMF website are included for information only and the content contained therein, or that can be accessed through them, are not incorporated by reference into, and do not constitute a part of, this press release.

In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company or any other person that the Company will achieve its objectives and plans in any specified time frame or at all. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy or subscribe to shares in Innate Pharma in any country.

Summary of Consolidated Financial Statements and Notes as of December 31, 2025

 
 
                Consolidated Statements of Financial Position 
                             (in thousand euros) 
 
                                          December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
 
Assets 
 
Cash and cash equivalents                            28,092             66,396 
Short-term investments                                6,218             14,374 
Trade receivables and others - current               12,400              4,972 
----------------------------------------  -----------------  ----------------- 
Total current assets                                 46,710             85,742 
----------------------------------------  -----------------  ----------------- 
 
Intangible assets                                         0                 -- 
Property and equipment                                4,356              5,133 
Non-current financial assets                         10,455             10,281 
Other non-current assets                                947                575 
Trade receivables and others - 
 non-current                                            251              9,328 
----------------------------------------  -----------------  ----------------- 
Total non-current assets                             16,009             25,317 
----------------------------------------  -----------------  ----------------- 
 
Total assets                                         62,719            111,059 
----------------------------------------  -----------------  ----------------- 
 
Liabilities 
Trade payables and others                            15,042             16,007 
Collaboration liabilities -- Current 
 portion                                              6,501              7,443 
Financial liabilities -- Current portion              8,802              8,709 
Deferred revenue -- Current portion                   2,825                616 
Provisions -- Current portion                         3,479                207 
----------------------------------------  -----------------  ----------------- 
Total current liabilities                            36,649             32,982 
----------------------------------------  -----------------  ----------------- 
 
Collaboration liabilities -- Non current 
 portion                                             31,748             41,128 
Financial liabilities -- Non-current 
 portion                                             13,771             22,286 
Defined benefit obligations                           1,923              2,730 
Deferred revenue -- Non-current portion                   0              2,825 
Provisions -- Current portion                           332                274 
----------------------------------------  -----------------  ----------------- 
Total non-current liabilities                        47,774             69,243 
----------------------------------------  -----------------  ----------------- 
 
Share capital                                         4,687              4,192 
Share premium                                       408,033            390,979 
Retained earnings                                 (386,365)          (336,893) 
Other reserves                                        1,118                 27 
Net income (loss)                                  (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
Total shareholders' equity                         (21,704)              8,834 
----------------------------------------  -----------------  ----------------- 
 
Total liabilities and shareholders' 
 equity                                              62,719            111,059 
----------------------------------------  -----------------  ----------------- 
 
 
                   Consolidated Statements of Income (loss) 
                             (in thousand euros) 
 
                                          December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
 
 
Revenue from collaboration and licensing 
 agreements                                           2,787             12,622 
Government financing for research 
 expenditures                                         6,205              7,488 
Sales                                                    13                 11 
 
Revenue and other income                              9,005             20,121 
----------------------------------------  -----------------  ----------------- 
 
Research and development expenses                  (43,620)           (51,980) 
Selling, general and administrative 
 expenses                                          (19,394)           (19,716) 
Operating expenses                                 (63,013)           (71,696) 
----------------------------------------  -----------------  ----------------- 
 
Operating income (loss) before 
 impairment of intangible assets                   (54,008)           (51,575) 
----------------------------------------  -----------------  ----------------- 
 
Impairment of intangible assets                          --                 -- 
 
Operating income (loss) after impairment 
 of intangible assets                              (54,008)           (51,575) 
----------------------------------------  -----------------  ----------------- 
 
Financial income                                      7,951              6,079 
Financial expenses                                  (3,120)            (3,975) 
Net financial income (loss)                           4,831              2,104 
----------------------------------------  -----------------  ----------------- 
 
Net income (loss) before tax                       (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
 
Income tax expense                                       --                 -- 
Net income (loss) from continuing 
 operations                                        (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
 
Net income (loss) from discontinued 
 operations                                               0                  0 
----------------------------------------  -----------------  ----------------- 
 
Net income (loss)                                  (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
 
Net income (loss) per share: 
(in EUR per share) 
- basic income (loss) per share                      (0.55)             (0.61) 
- diluted income (loss) per share                    (0.55)             (0.61) 
- Basic income (loss) per share from 
 continuing operations                               (0.55)             (0.61) 
- Diluted income (loss) per share from 
 continuing operations                               (0.55)             (0.61) 
- Basic income (loss) per share from                     --                 -- 
 discontinued operations 
- Diluted income (loss) per share from                   --                 -- 
 discontinued operations 
----------------------------------------  -----------------  ----------------- 
 
 
                    Consolidated Statements of Cash Flows 
                             (in thousand euros) 
 
                                          December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
Net income (loss)                                  (49,177)           (49,471) 
----------------------------------------  -----------------  ----------------- 
Depreciation and amortization                         1,384              1,994 
Employee benefits costs                               (807)                324 
Provisions for charges                                3,330              (293) 
Share-based compensation expense                      2,567              3,944 
Change in valuation allowance on 
 financial assets                                     (451)            (1,335) 
Gains (losses) on financial assets                    1,362              (885) 
Change in valuation allowance on 
 financial assets                                     (352)              (380) 
Gains (losses) on assets and other 
financial assets                                         --                 -- 
Disposal of property and equipment 
 (scrapping)                                             23                 20 
Other profit or loss items with no cash 
 effect                                                 (2)                 24 
----------------------------------------  -----------------  ----------------- 
Operating cash flow before change in 
 working capital                                   (42,123)           (46,058) 
----------------------------------------  -----------------  ----------------- 
Change in working capital                          (10,632)             39,162 
----------------------------------------  -----------------  ----------------- 
Net cash generated from / (used in) 
 operating activities:                             (52,755)            (6,896) 
----------------------------------------  -----------------  ----------------- 
Acquisition of intangible assets, net                    --                 -- 
Acquisition of property and equipment, 
 net                                                  (140)              (391) 
Disposal of property and equipment                       --                 -- 
Disposal of other assets                                  5                 -- 
Acquisition of other assets                              --                 -- 
Disposal of current financial 
 instruments                                          7,035              9,590 
Disposal of non-current financial 
instruments                                              --                 -- 
----------------------------------------  -----------------  ----------------- 
Net cash generated from / (used in) 
 investing activities:                                7,289              9,200 
----------------------------------------  -----------------  ----------------- 
Proceeds from the exercise / 
 subscription of equity instruments                  14,981              2,928 
Repayment of borrowings                             (8,911)            (8,936) 
----------------------------------------  -----------------  ----------------- 
Net cash generated from financing 
 activities:                                          6,070            (6,008) 
----------------------------------------  -----------------  ----------------- 
Effect of the exchange rate changes                   1,092              (505) 
----------------------------------------  -----------------  ----------------- 
Net increase / (decrease) in cash and 
 cash equivalents:                                 (38,304)            (4,209) 
----------------------------------------  -----------------  ----------------- 
Cash and cash equivalents at the 
 beginning of the year:                              66,396             70,605 
----------------------------------------  -----------------  ----------------- 
Cash and cash equivalents at the end of 
 the year :                                          28,092             66,396 
----------------------------------------  -----------------  ----------------- 
 

Revenue and other income

 
The following table summarizes operating revenue for the periods under review: 
 
In thousands of euro                      December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
Revenue from collaboration and licensing 
 agreements                                           2,787             12,622 
Government financing for research 
 expenditures                                         6,205              7,488 
Other income                                             13                 11 
----------------------------------------  -----------------  ----------------- 
Revenue and other income                              9,005             20,121 
----------------------------------------  -----------------  ----------------- 
 

Revenue from collaboration and licensing agreements

Revenue from collaboration and licensing agreements from continuing operations decreased by EUR9.8 million, to EUR2.8 million for the year ended December 31, 2025, as compared to EUR12.6 million for the year ended December 31, 2024. These revenues mainly result from the partial or entire recognition of the proceeds received pursuant to the agreements with AstraZeneca and Sanofi. They are recognized when the entity's performance obligation is met. Their accounting is made at a point in time or spread over time according to the percentage of completion of the work that the Company is committed to carry out under these agreements. The evolution in 2025 is mainly due to:

   --  A EUR4.2 million decrease in revenue related to monalizumab to EUR0.2 
      million for the year ended December 31, 2025, as compared to EUR4.4 
      million for the year ended December 31, 2024. As of December 31, 2025, 
      the revenue from this agreement has been fully recognized, and 
      accordingly, no "Current contract liabilities" related to these studies 
      remains. 
   --  The recognition of EUR1,7 million in revenue as of December 31, 2024, 
      relating to the research collaboration and licensing agreement signed 
      with Sanofi in 2022 after the exercise of license options for an ANKET(R) 
      program in 2023 and ultimately discontinued in 2024 following the 
      termination of the agreement. However, research work on the first license 
      continued during fiscal year 2025, generating revenue of EUR0,4 million, 
      an amount identical to the revenue recognized during fiscal year 2024. 
   --  A EUR4.0 million decrease in revenue from the collaboration and 
      research license agreement with Sanofi. On April 15, 2024, the Company 
      announced the treatment of the first patient in the dose-expansion phase 
      2 of the study conducted by Sanofi evaluating the NK Cell Engager 
      IPH6101/SAR443579 in various blood cancers. 
   --  A EUR0.4 million decrease in revenue from invoicing of research and 
      development costs to EUR1.7 million for the year ended December 31, 2025, 
      as compared to EUR2.1 million for the year ended December 31, 2024. 

Government funding for research expenditures

Government funding for research expenditures decreased by EUR1.3 million, or 17.1%, to EUR6.2 million for the year ended December 31, 2025, as compared to EUR7.5 million for the year ended December 31, 2024. As of December 31, 2025, government funding is mainly comprised of research tax credit for 2025 fiscal year for an amount of EUR6.2 million as compared to EUR7.4 million euros for year ended December 31, 2024. The decrease in eligible expenses in 2025 mainly results from (i) lower depreciation charges following the full amortization of intangible assets since fiscal year 2024 and the end of the depreciation period for certain laboratory equipment; (ii) a decline in eligible subcontracting expenses due to lower costs related to late--stage clinical studies and the conduct of clinical trials outside the Eurozone; and (iii) a decrease in patent--related expenses following their exclusion under the latest Finance Law applicable since February 2025.

The research tax credit is calculated as 30% of the amount of research and development expenses, net of grants received, eligible for the research tax credit for the fiscal year.

Operating expenses

 
The table below presents our operating expenses from continuing operations for 
the years ended December 31, 2025 and 2024: 
 
In thousands of euros                   December 31, 2025    December 31, 2024 
-----------------------------------  --------------------  ------------------- 
Research and development expenses                (43,620)             (51,980) 
General and administrative expenses              (19,394)             (19,716) 
-----------------------------------  --------------------  ------------------- 
Operating expenses                               (63,013)             (71,696) 
-----------------------------------  --------------------  ------------------- 
 

Research and development expenses

Research and development ("R&D") expenses decreased by EUR8.4 million, or 16.1%, to EUR43.6 million for the year ended December 31, 2025, as compared to EUR52.0 million for the year ended December 31, 2024. This decrease over the period is mainly due to a decrease in direct research and development expenses of EUR7.5 million over the period due mainly to the decrease in expenses related to more mature clinical development programs. Research and development expenses represented a total of 69.2% and 72.5% of operating expenses before impairment for years ended December 31, 2025 and December 31, 2024, respectively. Direct research and development expenses decreased by EUR7.5 million, or 26.5%, to EUR20.8 million for the year ended December 31, 2025, as compared to direct research and development expenses of EUR28.3 million for the year ended December 31, 2024.

This decrease is mainly due to a EUR7.3 million decrease in expenses related to the Company's clinical programs. This decrease in clinical programs expenses mainly results from (i) a EUR6.3 million decrease in expenses related to the IPH4502 program, following the reduction in CMC and toxicology activities, partially offset by higher costs associated with the progressive start--up of clinical activities; as a reminder, this program entered clinical development after the first patient was dosed in January 2025; (ii) a EUR0.7 million decrease in expenses related to the IPH5201 (anti--CD39) program; (iii) a EUR 0.5 million decrease in expenses related to the lacutamab program, whose Phase 2 clinical study is in the process of being closed. The EUR0.4 million increase in expenses related to the IPH6501 program reflects the advancement of clinical activities; as a reminder, this program entered clinical development after the first patient was dosed in June 2024.

As of December 31, 2025, the collaboration liabilities relating to monalizumab and the agreements signed with AstraZeneca in April 2015, October 2018 and September 2020 amounted to EUR38.2 million, as compared to collaborations liabilities of EUR48.6 million as of December 31, 2024. This decrease of EUR10.3 million mainly results from (i) net repayment of EUR4.8 million during year 2025 to AstraZeneca linked to the monalizumab cofinancing program, including Phase 3 trial INTERLINK-1 launched in October 2020 and PACIFIC-9 launched in April 2022, and (ii) the decrease of the collaboration commitment ("collaboration liabilities" in the consolidated statements of financial position) for an amount of EUR5.7 million linked to the Euro-dollar parity exchange rate variation.

Personnel and other expenses allocated to research and development decreased by EUR0.9 million, or 3.7%, to EUR22.8 million for the year ended December 31, 2025, as compared to an amount of EUR23.7 million for the year ended December 31, 2024. As of December 31, 2025, the Company had 125 employees, including Leadership Team members, in research and development functions, compared to 139 as of December 31, 2024.

We note a decrease in (i) other expenses of EUR1.6 million (primarily EUR1.3 million in scientific consulting fees and EUR0.3 million in intellectual property expenses), and (ii) amortization and depreciation expense of EUR0.6 million. As a reminder, this line item mainly consists of the amortization of the monalizumab intangible asset (acquired from Novo Nordisk), the IPH5201 asset (anti--CD39 acquired from Orega Biotech), as well as the amortization of the rights related to monalizumab (see Note 6) for the years ended December 31, 2025 and 2024. Finally, (iii) the EUR1.0 million decrease in personnel expenses (including a EUR0.7 million decrease in share--based payments and a EUR0.3 million decrease in salaries and wages) is offset by (iv) EUR2.3 million in restructuring charges related to the implementation of the Workforce Restructuring Plan (Plan de Sauvegarde de l'Emploi).

General and administrative expenses

General and administrative ("G&A") expenses decreased by EUR0.3 million, or 1.6% to EUR19.4 million for the year ended December 31, 2025 as compared to EUR19.7 million for the year ended December 31, 2024. G&A expenses represented a total of 30.8% and 27.5% of the total operating expenses for the years ended December 31, 2025 and 2024, respectively.

Personnel expenses, which includes the compensation paid to our employees and consultants, decreased by EUR0.6 million, or 7.0%, to EUR8.0 million for the year ended December 31, 2025, as compared to personnel expenses of EUR8.6 million for the year ended December 31, 2024. This decrease mainly results from EUR0.7 million decrease in share-based payment expenses compensated by a increase in salaries and wages of EUR0.1 million. As of December 31, 2025, we had 38 employees, including Leadership Team members, in general and administrative functions compared to 42 as of December 31, 2024.

Non-scientific advisory and consulting expenses mostly consist of auditing, accounting, legal and hiring services. These expenses decreased by EUR0.3 million, or 9.9%, to EUR3.0 million for the year ended December 31, 2025, as compared to an amount of EUR3.4 million for the year ended December 31, 2024. This decrease results from lower recruitment activity and reduced maintenance costs for the "At--The--Market" fundraising facility.

Other general and administrative expenses relate to intellectual property, depreciation and amortization and other general, administrative expenses. These expenses are stable at EUR7.8 million for the year ended December 31, 2025, as compared to an amount of EUR7.8 million for the year ended December 31, 2024.

Financial income (loss), net

We recognized a net financial gain of EUR4.8 million for the year ended December 31, 2025, as compared to EUR2.1 million net financial gain for the year ended December 31, 2024. This change mainly results from the net foreign exchange gain of EUR3.2 million (net foreign exchange loss of EUR1.8 million in 2024), offset by a decrease of interest income on financial investments (net gain of EUR1.3 million in 2025 compared to EUR2.4 million in 2024) and the change in the fair value of certain financial instruments (net gain of EUR0.7 million in 2025 as compared to a net gain of EUR2.0 million in 2024).

Balance sheet items

Cash, cash equivalents, short-term investments and financial assets (current and non-current) amounted to EUR44.8 million as of December 31, 2025, as compared to EUR91.1 million as of December 31, 2024. Net cash as of December 31, 2025 (cash, cash equivalents and current financial assets less current financial liabilities) amounted to EUR25.5 million (EUR72.1 million as of December 31, 2024).

As of the date of the issuance of the financial statements and based on its current operations, plans, and assumptions, the Company estimates that its cash and cash equivalents are sufficient to fund its operations until the end of third quarter of 2026. As such, cash and cash equivalents are not sufficient to fund operations for the next 12 months from the date of issuance of the financial statements. As such, there is substantial doubt regarding its ability to continue as a going concern.

The Company has undertaken several concurrent initiatives to secure the financing of its operations, including non-dilutive ffinancing options, such as pharma partnering and royalty structures which are currently under negotiation.

The other key balance sheet items as of December 31, 2025 are:

   --  Current deferred revenue of EUR2.8 million and collaboration 
      liabilities of EUR38.2 million (including EUR31.7 million booked as 
      'Collaboration liability -- non-current portion') relating to the 
      remainder of the initial payment received from AstraZeneca with respect 
      to monalizumab, not yet recognized as revenue or used to co-fund the 
      research and the development work performed by AstraZeneca including 
      co-funding of the monalizumab program with AstraZeneca, notably the 
      INTERLINK-1 and PACIFIC-9 Phase 3 trials. 
   --  Receivables of EUR12.6 million including current receivables for (i) 
      EUR6.2 million from the French government related to the research tax 
      credit for 2025 after the loss of SME status since December 31, 2023; 
      (ii) EUR2.4 million related to suppliers' prefunded; (iii) EUR2,4 million 
      related to prepaid expenses. 
   --  Shareholders' equity of EUR21.7 million, including the net loss of the 
      period of EUR49.2 million. 
   --  Provision amounting to EUR3.8 million including a provision for 
      restructuring for EUR2.9 million related to the implementation of the 
      restructuring plan. The provision amounted to EUR0.5 million as of 
      December 31, 2024. 
   --  Financial liabilities amounting to EUR22.6 million (EUR31.0 million as 
      of December 31, 2024). 

Cash-flow items

The net cash flow used over the year ended December 31, 2025 amounted to EUR38.3 million, compared to a net cash flow used of EUR4.2 million for the year ended December 31, 2024.

The net cash flow used during the period under review mainly results from the following:

   --  The Company's net cash flow used in operating activities increased by 
      EUR45.9 million to EUR52.8 million for the year ended December 31, 2025 
      as compared to net cash flows used in operating activities of EUR6.9 
      million for the year ended December 31, 2024. In 2025, the net cash flow 
      used in operating activities included the receipt of EUR6.5 million 
      pursuant to a financing agreement with Natixis including the assignment 
      of the Company's receivables with respect to future CIR payments 
      (corresponding to the CIR for the financial year ending December 31, 2024 
      that will be paid in 2028). As a reminder, in 2024, the net cash flow 
      used in operating activities included (i) the receipt of EUR29.5 million 
      related to 2019 and 2020 tax credit refunds, (ii) the receipt of EUR8.6 
      million pursuant to a financing agreement with Natixis including the 
      assignment of the Company's receivables with respect to future CIR 
      payments (corresponding to the CIR for the financial year ending December 
      31, 2023 that will be paid in 2027), (iii) the receipt of EUR15.0 million 
      in January 2024 following Sanofi's decision to exercise one of its two 
      license option for an NK Cell Engager program in solid tumors, derived 
      from the Company's ANKET(R) (Antibody-based NK Cell Engager Therapeutics) 
      platform, pursuant to the terms of the research collaboration and license 
      agreement signed in December 2022, (iv) the collection in May 2024 of 
      EUR4.8 million (including value-added tax) the treatment of the first 
      patient in the Phase 2 dose expansion part of the Sanofi-sponsored 
      clinical trial evaluating NK Cell Engager SAR443579/ IPH6101 in various 
      blood cancer. Excluding these specific effects, net cash flows used by 
      operating activities for the year ended December 31, 2025 decreased by 
      EUR4.7 million. This decrease is mainly explained by the decrease in the 
      operating expenses. 
   --  Net cash generated in investing activities for an amount of EUR7.3 
      million, mainly included various non current financial assets sales for a 
      total of EUR7.0 million to cope with Company dollars cash needs. As a 
      reminder, the Company's net cash flows from investing activities for the 
      year ended December 31, 2024 amounted to EUR9.2 million and included a 
      EUR4.2 million of current financial instrument with a July 2024 fixed 
      term and various non current financial assets sales for a total of EUR5.0 
      million to cope with Company dollars cash needs. These cash in were 
      partially offset by acquisitions of property, plant and equipment and 
      intangible assets for a net amount EUR0.4 million. 
   --  Net cash flows from financing activities for a positive amount of 
      EUR6.1 million for the year ended December 31, 2025 as compared to a 
      negative net cash flows from financing activities of EUR6.0 million for 
      the year ended December 31, 2024. Loan repayments amounted to EUR8.9 
      million for the year ended December 31, 2025 as compared to EUR8.9 
      million for the year ended December 31, 2024. Receipts from capital 
      transactions amount to EUR14.9 million in 2025 received from Sanofi, 
      compared with EUR2.9 million in 2024 received from a new partner. 

Nota

The consolidated financial statements as of December 31, 2025 were approved by the Board of Directors on March 25, 2026.

Risk factors

Risk factors ("Facteurs de Risque") identified by the Company are presented in section 3 of the registration document ("Universal Registration Document") filed with the French Financial Markets Authority ("Autorité des Marchés Financiers" or "AMF"), which is available on the AMF website http://www.amf-france.org or on the Company's website as well as in the Risk Factors section of the Company's Annual Report on Form 20-F for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission, and subsequent filings and reports filed with the AMF or SEC, or otherwise made public, by the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260325193268/en/

 
    CONTACT: 

For additional information, please contact:

Innate Pharma

Stéphanie Cornen

stephanie.cornen@innate-pharma.fr

Investor Relations

investors@innate-pharma.fr

Media

communication@innate-pharma.fr

 
 

(END) Dow Jones Newswires

March 26, 2026 02:00 ET (06:00 GMT)

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