Infinity Pharmaceuticals, Inc. (INFI) is a biopharmaceutical company focused on cancer and related care. The company is collaborating with MedImmune, Inc. to develop Hsp90 inhibitor IPI-504 and Hedgehog inhibitors for various cancer indications.
The company is also cooperating with Novartis AG (NVS) to develop Bcl-2 inhibitors for cancer indications. However, all these programs are in early stage clinical trials or pre-clinical trials. We donât see any huge upside potential for the shares anytime soon.
On May 5, 2008, Infinity Pharmaceuticals financial results for the first quarter of 2008. At March 31, 2008, Infinity had total cash, cash equivalents, and available-for-sale securities of $105 million. Total revenue for the first quarter of 2008 was $11.4 million as compared to $6.1 million for the first quarter of 2007. The increase in revenue was primarily due to the recognition of the remaining $8.1 million in deferred revenue related to the up-front license fee received from Novartis under the companies' Bcl-2 collaboration.
Infinity's net income for the first quarter of 2008 was $0.4 million as compared to a net loss of $2.9 million for the first quarter of 2007. Basic and diluted net income per common share was $0.02 for the first quarter of 2008, compared to a basic and diluted net loss of $0.15 per common share for the first quarter of 2007.
We maintain a Hold rating on Infinity Pharmaceuticals with a price target is $8. We arrive at our price target of $8 by applying the biotech industry average P/S of 10x, multiplied by our estimated revenue of $45 in 2011, divided by weighted average share number of 32 million and discounted at 25% for 2.5 years.
Read the full analyst report on INFI.
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