Raymond James analyst Gary Nachman downgraded INmune Bio Inc. (NASDAQ: INMB) from Outperform to Market Perform.

The analyst comments "We’re downgrading INMB to Market Perform from Outperform as the overall XPro Ph2 data in early Alzheimer’s (AD) missed the mark; an effect size was shown in a subset of patients with greater neuroinflammation, but we see greater risk to this key program moving forward. The Ph2 study did not hit the primary endpoint EMACC at 24 weeks in the overall mITT population of early AD patients that were screened for at least one biomarker of neuroinflammation (n=200), but when looking at a subset of patients that had at least 2 biomarkers and were amyloid positive (i.e., greater neuroinflammation, n=100), there was an effect size on EMACC of 0.27 and it was closer to being stat sig at 24 weeks. Notably, the CDR that was a key secondary endpoint (approvable one for FDA in the past) showed no real effect size in the overall mITT or the subgroup (trended just slightly favorably for XPro). There were some consistent effect sizes (≥0.20) seen in the subgroup with the Neuropsychiatry Inventory and pTau217 secondary measures that showed a signal, albeit small. Importantly, the drug was very safe with the only AE of note being injection site reactions. We had previously highlighted the inherent risks of showing a benefit in early AD patients especially at 24 weeks, and it seems that the smaller size and shorter duration of the Ph2 were key challenges for this study"

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Shares of INmune Bio Inc. closed at $5.33 yesterday.