Scotiabank double downgrades rating on INmune Bio after Alzheimer's drug failure

Shares of drug developer INmune Bio INMB.O fall 6.49% to $2.16 in premarket trading

Scotiabank downgrades stock to 'sector underperform' from 'sector outperform'

Slashes PT to $0.60 from $23; an 89% downside to the stock's last close at $5.33

Brokerage cites failure of lead drug XPro, which targets a protein linked to inflammation, to show any health improvements in a study on patients with Alzheimer's disease

On Monday, co said the experimental drug failed to improve cognitive function in early-stage patients during a mid-stage trial

Co plans to file for FDA breakthrough therapy designation and schedule an End-of-Phase 2 meeting with the health regulator in Q4 2025

Brokerage also added that INmune has a very low chance of getting FDA approval for its drug CORDStrom to treat recessive dystrophic epidermolysis bullosa (RDEB) a rare skin disease

Average rating of 5 analysts is "buy"; median PT is $20.5 — data compiled by LSEG

As of last close, stock down ~50.53% YTD