Innate Immunotherapeutics Ltd Falls on Capital Raising

Innate Immunotherapeutics Ltd [ASX:IIL] is a relatively small biotech company. Months ago, IIL found itself splashed all over newsfeeds because of its ownership structure.

US Congressman Christopher Collins, the company’s largest stockholder, is also pretty chummy with President Trump. He was the first lawmaker to endorse Trump’s presidential bid. Trump even designated Collins to be the White House transition team’s congressional liaison.

Today, IIL fell 4.4%, to a low of 75.5 cents. The stock is down more than 29% year-to-date.

What happened to Innate Immunotherapeutics?

This morning, IIL announced that they had raised $2 million in capital from private investors. The fund will contribute to working capital as the company is about to release Phase 2B trial results in Q3 this year.

What now for IIL?

The results for trials of IIL’s MIS416 drug, if positive, could boost the stock price. The company is currently lossmaking. If they can’t get their lead drug off the ground, it will likely continue to struggle.


Härje Ronngard,

Junior Analyst, Money Morning


PS: It’s not always easy to find growth among billion-dollar stocks. Unless they can significantly increase earnings, you’d be lucky to get double-digit returns. That’s why some investors prefer the smaller end of the market.

Small-cap stocks are a riskier investment. There is no running away from it. But they can potentially grow earnings 10-fold in a short space of time.

Small-cap specialist Sam Volkering has been on the other end of small-caps running up 1,000% or more.

To find out more, click here.

Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Fat Tail Investment Research, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.

Money Morning Australia