INmune Bio’s Xpro misses primary goal in Alzheimer’s trial, shares plunge

INmune Bio Inc., a company that develops treatments for brain diseases, is set to share important results from its Alzheimer's drug trial today, according to Nasdaq reports. The biotech company held a conference call at 8:00 a.m. Eastern Time to present data from its Phase II trial, called MINDFuL. This study tested a drug called XPro in 208 patients who had mild memory problems or early Alzheimer's disease with brain swelling.

The trial compared XPro to a fake treatment to see if it helps with memory, daily tasks, and behavior. XPro works by blocking a protein called tumor necrosis factor that causes inflammation in the brain. Patients received the drug as a weekly shot under the skin. The study included 92 people with mild cognitive impairment and 116 with mild Alzheimer's disease. Researchers measured changes in thinking skills using a test called the Early and Mild Alzheimer's Cognitive Composite. Nasdaq noted that the company's stock price jumped to a yearly high of $11.64 on Friday before dropping to close at $5.33, representing a 15.13 percent decline.

The stock's wild price swings continued as investors reacted to news about the upcoming trial results and a new stock offering, as reported by Seeking Alpha. The company's shares initially rose sharply in morning trading as Wall Street prepared for the announcement of Monday's data. However, the excitement quickly faded when INmune Bio announced it would sell new shares to raise money.

The Florida-based company has nearly 44 percent of its available shares being bet against by short sellers, which makes the stock more volatile. Seeking Alpha explained that the stock fell about 11 percent during afternoon trading after the company revealed plans to sell 3 million shares at $6.30 each to two healthcare investment firms. This registered direct offering is expected to close today and is anticipated to raise approximately $19 million, net of fees and expenses. The company plans to use this money for daily operations and general business needs. The dramatic price changes show how uncertain investors feel about the upcoming trial results.

Yahoo Finance provided details about the stock sale agreement that caused Friday's price drop. The company signed deals with two healthcare-focused institutional investors to purchase the shares at $6.30 each, which follows Nasdaq pricing rules for at-the-market offerings. The deal is expected to close today, meeting the standard closing requirements. A.G.P./Alliance Global Partners is helping arrange the sale as the placement agent.

The offering utilizes an existing shelf registration statement that has already been approved by the Securities and Exchange Commission. Yahoo Finance noted that a detailed document describing the offering terms will be filed with the SEC and made available on their website. Investors can also get copies from the placement agent's New York office. The company operates three leading treatment platforms, including the XPro program for brain diseases, a cancer treatment that enhances immune cell function, and stem cell therapy for rare skin conditions. All of these treatments are still being tested and have not received approval from the Food and Drug Administration, making them experimental at this stage.