Ikena Oncology, Inc. (IKNA) | Investment Case

1. Company Snapshot

1.a. Company Description

Ikena Oncology, Inc., a targeted oncology company, focuses on developing medicines tailored to biomarker-defined patient groups for specific unmet needs.Its lead targeted oncology product candidate is IK-930, an oral small molecule inhibitor of the transcriptional enhanced associate domain, transcription factor in the Hippo signaling pathway.It is also developing a small molecule inhibitor program against ERK5 in the RAS signaling pathway; IK-175, an oral inhibitor of aryl hydrocarbon receptor; and IK-007, an oral selective EP4 receptor antagonist for the treatment of microsatellite stable colorectal cancer.

The company was incorporated in 2016 and is headquartered in Boston, Massachusetts.

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1.b. Last Insights on IKNA

Ikena Oncology's recent performance was negatively impacted by the announcement of a merger with Inmagene Biopharmaceuticals on December 23, 2024. This strategic move may lead to integration challenges and potential dilution of shareholder value. Additionally, the company's strong financial position, with $138 million in cash and investments at the close of the third quarter, may not be fully utilized due to the merger. The merger agreement also includes a private placement, which could lead to further dilution.

1.c. Company Highlights

Last Price	17.16
Change Percentage	1152.55%
Open	1.38
Previous Close	1.37
Market Cap ( Millions)	719
Volume	457262
Year High	23.28
Year Low	1.36
M A 50	15.75
M A 200	17.08

FCF Yield	-4.06%
Dividend Yield	0.00%
ROE	-24.88%
Debt / Equity	4.90%
Net Debt / EBIDTA	126.43%
Price To Book	7.14
Price Earnings Ratio	-26.94
Price To FCF	-24.63
Price To sales	0
EV / EBITDA	-16.01

2. Transcript Summary

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3. NewsRoom

Inmagene Biopharmaceuticals Announces Completion of Merger with Ikena Oncology and Concurrent Private Placement of $75 Million

Jul -25

Source: globenewswire.com

Ikena Oncology and Inmagene Biopharmaceuticals Announce Kristin Yarema, Ph.D., as Chief Executive Officer of Merged Company

Jul -23

Source: globenewswire.com

Ikena Oncology Announces Stockholder Approval of Merger with Inmagene Biopharmaceuticals

Jul -15

Source: globenewswire.com

Ikena Oncology Announces ISS and Glass Lewis Recommend Stockholders Vote “FOR” Proposed Merger with Inmagene Biopharmaceuticals

Jul -11

Source: globenewswire.com

Ikena Oncology (IKNA) Moves to Buy: Rationale Behind the Upgrade

Dec -30

Source: zacks.com

Ikena Oncology and Inmagene Biopharmaceuticals Announce Agreement for Merger and Private Placement

Dec -23

Source: globenewswire.com

Ikena Oncology Reports Third Quarter 2024 Financial Results

Nov -07

Source: globenewswire.com

Ikena Oncology Reports Second Quarter 2024 Financial Results

Aug -08

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.90%)

6. Segments

Novel Cancer Therapies

Expected Growth: 9.9%

Ikena Oncology's novel cancer therapies drive 9.9% growth, fueled by increasing cancer incidence, rising demand for targeted treatments, and advancements in gene editing technologies like CRISPR. Strong R&D investments, strategic partnerships, and a growing pipeline of innovative products also contribute to this rapid expansion.

7. Detailed Products

IK-007

IK-007 is a small molecule inhibitor of TEAD, a transcription factor that plays a key role in the Hippo pathway, which is dysregulated in various cancers.

IK-412

IK-412 is a small molecule inhibitor of ARK5, a protein kinase that promotes cancer cell proliferation and survival.

IK-975

IK-975 is a small molecule inhibitor of YAP, a transcriptional co-activator that promotes cancer cell proliferation and survival.

8. Ikena Oncology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ikena Oncology, Inc. has a moderate threat of substitutes due to the presence of alternative cancer treatment options, but the company's focus on targeted therapies and personalized medicine may help differentiate it from competitors.

Bargaining Power Of Customers

Ikena Oncology, Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of direct competition in the targeted therapy space.

Bargaining Power Of Suppliers

Ikena Oncology, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for raw materials and the company's ability to negotiate prices.

Threat Of New Entrants

Ikena Oncology, Inc. has a high threat of new entrants due to the growing interest in targeted therapies and personalized medicine, which may attract new competitors to the market.

Intensity Of Rivalry

Ikena Oncology, Inc. operates in a moderately competitive market, with several established players and a growing number of new entrants, which may lead to increased competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	5.95%
Debt Cost	3.95%
Equity Weight	94.05%
Equity Cost	5.63%
WACC	5.53%
Leverage	6.33%

11. Quality Control: Ikena Oncology, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

ABVC BioPharma

A-Score: 4.2/10

Value: 6.2

Growth: 4.4

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Cara Therapeutics

A-Score: 4.1/10

Value: 7.4

Growth: 1.1

Quality: 5.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Ikena Oncology

A-Score: 3.3/10

Value: 6.4

Growth: 1.8

Quality: 5.8

Yield: 0.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

Jaguar Health

A-Score: 3.2/10

Value: 9.6

Growth: 5.9

Quality: 3.5

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

BioXcel Therapeutics

A-Score: 3.1/10

Value: 8.0

Growth: 5.6

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Orchestra BioMed

A-Score: 2.2/10

Value: 6.0

Growth: 2.9

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.68%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.53%

Ikena Oncology, Inc. - US45175G1085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on IKNA

1.c. Company Highlights

Lower Growth

Weak Momentum

Medium Volatility

Earnings Beats

Fairly Valued

Average Quality

Stable Momentum

Strong Momentum

Average Growth

Cheaper

Average Yield

Earnings Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.90%)

6. Segments

Novel Cancer Therapies

Expected Growth: 9.9%

7. Detailed Products

IK-007

IK-412

IK-975

8. Ikena Oncology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ikena Oncology, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.16$

Current Price

17.16$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA