Here's a story about a biotech company that's suddenly become very popular at the pharmaceutical industry's cocktail party. Inhibrx Biosciences Inc. (INBX), a cancer-focused biotech, is reportedly drawing serious interest from major drugmakers for its experimental therapy INBRX-106. We're talking potential valuations north of $8 billion here—the kind of numbers that make even Big Pharma executives do a double-take.
The company is evaluating a potential joint spin-off of INBRX-106 alongside another early-stage oncology asset. According to Reuters, if clinical trials go well, the combined value of these two therapies could exceed $9 billion. That's not pocket change, even for an industry accustomed to billion-dollar deals.
Why Everyone Wants to Dance With INBRX-106
The interest has centered on INBRX-106, which is being tested both as a standalone therapy and—here's the interesting part—in combination with Merck & Co. Inc.'s (MRK) blockbuster immunotherapy, Keytruda (pembrolizumab).
The company plans to announce interim objective response rate data from the randomized Phase 2/3 trial in head and neck squamous cell carcinoma in combination with Keytruda in the second quarter of 2026, and progression-free survival data in the fourth quarter of 2026. So we're talking about data that's coming relatively soon, which makes the current buzz particularly timely.
Speaking of Merck, the company has been on something of a shopping spree lately. In March, Merck agreed to acquire Terns Pharmaceuticals Inc. (TERN) for $53 per share in cash, an approximate equity value of $6.7 billion. The U.S. drugmaker is accelerating efforts to offset looming revenue risks tied to Keytruda, which brings us to the next point...
The Suitors Are Lining Up
Alongside Merck, other pharmaceutical companies are seen as potential suitors for the asset. We're talking about a who's who of Big Pharma: Merck KGaA (MKGAF), Merck KGaA (MKKGY), Ono Pharmaceutical Co. Ltd., Eli Lilly and Co (LLY), AstraZeneca Plc (AZN), Pfizer Inc. (PFE), and Johnson & Johnson (JNJ).
Reuters reports that the discussions remain in early stages, and any deal is likely months away. Sources noted that valuation will depend heavily on upcoming clinical trial data and patient response outcomes. In other words, everyone's interested, but they're waiting to see how the data looks before they start writing checks.
Meanwhile, Inhibrx isn't just sitting around waiting for the phone to ring. On Tuesday, the company shared updated interim data from its Phase 1/2 study of ozekibart (INBRX-109) in combination with FOLFIRI in locally advanced or metastatic, unresectable colorectal cancer. The data showed an objective response rate of 20% and a progression-free survival of 5.5 months.
The Keytruda Clock Is Ticking
Here's where things get strategically interesting. INBRX-106 may hold particular value for Merck as it prepares for the loss of Keytruda's patent protection in 2028. Think of it as pharmaceutical succession planning—when your cash cow is about to retire, you need to find the next generation of revenue generators.
However, citing sources, Reuters reported this positioning does not necessarily give Merck an edge over competing bidders. The therapy is unlikely to reach the market before biosimilar competition begins to impact Keytruda sales. So while it might be strategically appealing for Merck, it's not necessarily a must-have-at-any-price situation.
How This Could All Play Out
Inhibrx is considering a structure similar to its 2024 agreement with Sanofi SA (SNY), in which the French drugmaker acquired INBRX-101 for $30 per share in cash, along with a $5 contingent value right tied to regulatory milestones. So they have a playbook for this kind of deal, which probably makes the current negotiations a bit smoother.
As for the market reaction? Inhibrx shares were up 39.86% at $116.76 at the time of publication on Wednesday. When a stock jumps nearly 40% on news of potential interest (not even a firm offer), you know investors are excited about the possibilities.
The bottom line: Inhibrx has something that multiple big pharmaceutical companies want, and they're all circling while waiting to see how the clinical data shakes out. With valuations potentially reaching into the billions and key data coming in 2026, this is one to watch in the biotech space.
