-- New strategic partnership with Sobi to advance lacutamab is effective,
with a $75 million upfront payment; TELLOMAK-3 phase 3 initiated with FPI
expected in Q1 2027
-- EUR30 million equity financing completed to primarily support IPH4502
and preclinical ADC portfolio
-- IPH4502 Phase 1 dose escalation and cohort enrichment enrollment
completed, with initial data to be presented at ENA 2026
-- PACIFIC-9 Phase 3 readout for monalizumab, led by AstraZeneca, expected
in H2 2026
-- Cash position of EUR21.4 million1 as of June 30, 2026
-- Anticipated cash horizon until the end of Q1 2028, taking into account
the initial payment of $75 million expected from the completion of the
transaction with Sobi and the proceeds from the EUR30 million capital
increase
-- Conference call to be held today at 2:00 p.m. CEST / 8:00 a.m. ET
MARSEILLE, France--(BUSINESS WIRE)--September 17, 2026--
Regulatory News:
Innate Pharma SA (Euronext Paris: IPH; Nasdaq: IPHA) ("Innate" or the "Company") today reported its consolidated financial results for the six months ended June 30, 2026. The consolidated financial statements are attached to this press release.
"2026 continues to be an important year of execution for Innate, marked by our strategic partnership with Sobi and the strengthening of our financial position," said Jonathan Dickinson, CEO of Innate Pharma. "With the TELLOMAK-3 Phase 3 study initiated, we are targeting the first patient in the study in Q1 2027 as we work toward a filing for accelerated approval in Sézary syndrome. Looking ahead, we will present Phase 1 data from IPH4502 at ENA 2026 and expect the PACIFIC-9 Phase 3 readout for monalizumab by year-end, as we remain focused on delivering value for patients and shareholders."
_________________
(1) Including short term investments (EUR4.4 million) and non-current
financial instruments (EUR10.5 million)
Webcast and conference call will be held today at 2:00pm CEST (8:00am ET)
Access to live webcast: Click here to access the live webcast Participants may
also join via telephone using the registration link below: Click here to
register This information can also be found on the Investors section of the
Innate Pharma website, www.innate-pharma.com. A replay of the webcast will be
available on the Company website for 90 days following the event.
------------------------------------------------------------------------------
Pipeline highlights:
Lacutamab (anti-KIR3DL2 antibody), partnered with Sobi:
Cutaneous T-Cell Lymphoma
-- In August 2026, Innate Pharma entered into a strategic partnership with
Sobi to license lacutamab in T-cell lymphoma (Link PR). The partnership
is intended to enable initiation of the TELLOMAK-3 confirmatory Phase 3
study in cutaneous T-cell lymphoma (CTCL), a key step toward filing for
accelerated approval of lacutamab in Sézary syndrome, a subtype of
CTCL.
-- On September 16, Innate Pharma announced closing of the transaction
under the partnership agreement, following expiration of the anti-trust
waiting periods and completion of other conditions (Link PR). This
triggers a USD 75 million upfront payment and marks the initiation of the
TELLOMAK-3 confirmatory Phase 3 study, with first patient expected in Q1
2027.
-- Under the agreement, Innate is conducting the TELLOMAK-3 Phase 3
confirmatory trial in cutaneous T-cell lymphoma. The TELLOMAK-3 study
will subsequently support applications for full approvals in key
jurisdictions in Sézary syndrome and mycosis fungoides, the most
common subtype. Sobi will receive exclusive global rights to
commercialize lacutamab upon potential accelerated approval and will be
eligible to assume full global development rights following positive
Phase 3 results.
-- Under the terms of the agreement, Sobi will pay Innate Pharma USD 75
million, payable on closing. Innate will be eligible to receive up to a
further USD 40 million in respect of near-term development milestones
connected to Sézary syndrome. Additionally, Innate will be eligible
to receive up to USD 465 million related to the option for Sobi to get
full development rights and to future regulatory and commercial
milestones. Innate will be eligible to receive tiered double-digit
royalties on net sales.
-- In February 2025, the FDA granted Breakthrough Therapy Designation to
lacutamab for relapsed or refractory Sézary syndrome based on
TELLOMAK Phase 2 results demonstrating encouraging efficacy and a
favorable safety profile in patients with Sézary syndrome, heavily
pretreated, post-mogamulizumab. Breakthrough Therapy Designation is
intended to accelerate the development and regulatory review in the U.S.
of drugs that are intended to treat a serious condition and that have
shown encouraging early clinical results, which may demonstrate
substantial improvement on a clinically significant endpoint over
available medicines. Lacutamab has also received Fast Track designation
from the FDA, PRIME designation from the EMA and orphan drug status in
both the United States and Europe.
Peripheral T-Cell Lymphoma (PTCL)
-- The investigator-sponsored Phase 2 KILT (anti-KIR in T-Cell Lymphoma)
trial, led by the Lymphoma Study Association (LYSA), evaluating lacutamab
in combination with GEMOX (gemcitabine and oxaliplatin) versus GEMOX
alone in patients with KIR3DL2-expressing relapsed/refractory PTCL has
ended recruitment.
IPH4502 (Nectin-4 exatecan ADC):
-- In July 2026, Innate announced completion of dose-escalation and
backfill enrollment in the ongoing Phase 1 study of IPH4502, with 76
patients enrolled across multiple tumor types known to express Nectin-4.
-- Preliminary anti-tumor activity has been observed in heavily
pre-treated patients, including objective responses in urothelial cancer
following prior enfortumab vedotin, as well as in NSCLC and HNSCC. A
favorable safety profile has been observed to date, with limited
hematological toxicity.
-- Initial Phase 1 dose-escalation data will be presented at the 38th
EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics
(ENA 2026) on November 18, 2026.
Monalizumab (anti-NKG2A antibody), developed in collaboration with AstraZeneca:
-- PACIFIC-9 is an AstraZeneca-sponsored Phase 3 study evaluating
durvalumab in combination with monalizumab or oleclumab in patients with
unresectable Stage III NSCLC who have not progressed following
platinum-based chemoradiation therapy $(CRT)$. Enrollment in the trial is
complete, and data readout is expected in H2 2026.
-- The Phase 3 program is supported by clinical findings from the Phase 2
COAST study, in which the combination of durvalumab and monalizumab
suggested prolonged progression-free survival compared with durvalumab
alone.
IPH5201 (anti-CD39 antibody, developed in collaboration with AstraZeneca):
-- The Phase 2 MATISSE study evaluating IPH5201 in combination with
durvalumab and platinum-based chemotherapy in resectable NSCLC is
ongoing. Encouraging results from a pre-planned interim analysis
presented at AACR 2026 showed an overall pathological complete response
rate of 27.5%, with higher response rates observed in patients with
PD-L1-positive tumors.
-- Following the interim analysis, MATISSE continues enrollment in the
PD-L1 >=1% patient population.
Preclinical ADC pipeline
-- For its preclinical ADC portfolio, Innate is leveraging its proprietary
linker technology, in clinical development through IPH4502. Innate's
next-generation ADC approaches include bispecific ADCs designed to
address tumor antigen heterogeneity, approaches aimed at enhancing
internalization to unlock activity in tumors with low target expression,
and dual-payload approaches intended to overcome payload resistance.
Post period events and Corporate Update:
-- In August 2026, Innate Pharma announced the appointment of Markus
Jensen, 57, as Chief Medical Officer and member of the Executive
Leadership Team, effective September 1, 2026. He succeeds Sonia Quaratino
and oversees the Company's clinical development activities as Innate
prepares to advance lacutamab into Phase 3 and continues development of
IPH4502. Markus Jensen joined Innate Pharma in 2024 as head of clinical
pharmacology and has served as global clinical lead for Company key
programs, including IPH4502. He brings more than 25 years of experience
spanning clinical medicine, academic research and the pharmaceutical
industry. Prior to joining Innate, he held leadership positions at Bayer
for more than 16 years, with a particular focus on oncology and clinical
development. He holds a medical degree from the University of Cologne and
is double board certified by Ärztekammer Nordrhein in Internal
Medicine and Clinical Pharmacology.
-- On August 18, 2026, Innate completed a capital increase without
preferential subscription consisting of a private placement of 17,647,059
new ordinary shares of the Company for aggregate gross proceeds to the
Company of an approximately EUR30 million. Together with the $75 million
upfront payment, the proceeds of the private placement are expected to
extend the Company's projected cash runway through end of Q1 2028.
-- As of June 30, 2026, the balance available under our April 2023 sales
agreement under the At-The-Market program remains at $75 million.
Financials highlights for the first half of 2026:
The key elements of Innate's financial position and financial results as of and for the six-month period ended June 30, 2026 are as follows:
-- Cash, cash equivalents, short-term investments and financial assets
amounting to EUR21.4 million (EURm) as of June 30, 2026 (EUR44.8m as of
December 31, 2025).
-- As of June 30, 2026, financial liabilities amount to EUR20.2m (EUR22.6m
as of December 31, 2025). This change is mainly due to loan repayments.
-- Revenue and other income amounted to EUR5.7m in the first half of 2026
(EUR4.9m in the first half of 2025) and mainly comprised of:
-- Revenue from collaboration and licensing agreements, which
mainly resulted from the partial or entire recognition of the
proceeds received pursuant to the agreements with AstraZeneca and
Sanofi. They are recognized when the entity's performance
obligation is met. They are recognized at a point in time or
spread over time according to the percentage of completion of the
work that the Company is committed to carry out under these
agreements:
-- (i) Since December 31, 2025, the revenue from
collaboration and licensing agreements for monalizumab has
been fully recognized. Therefore, no revenue is recognized
for the six months ended June 30, 2026, as compared to
EUR0.1 million for the six months ended June 30, 2025.
-- (ii) No revenue related to IPH5201 were generated during
the six months ended June 30, 2026 as during the six months
ended June 30, 2025. As a reminder, the revenue is related
to the milestone payment received from AstraZeneca
following the signature on June 1, 2022 of an amendment to
the initial contract signed in October 2018. This amendment
sets the terms of the collaboration following AstraZeneca's
decision to advance IPH5201 to a Phase 2 study. The
Company will conduct the study. Both parties will share the
external cost related to the study and incurred by the
Company and AstraZeneca will provide products necessary to
conduct the clinical trial. Revenue from invoicing of
research and development costs for the six months ended
June 30, 2026 was 0.4 million compared to 0.9 million for
the six months ended June 30, 2025, or a decrease of (0.5)
million.
-- (iii) No revenue were generated for the license and
collaboration agreement signed with Sanofi in 2016 for the
six months ended June 30, 2026, as well as for the six
months ended June 30, 2025. On April 23, 2025, the Company
announced that, in alignment with both company's current
strategic priorities, Sanofi and Innate agreed to terminate
the 2016 Agreement as it relates to SAR'579/IPH6101 (CD123
ANKET(R)). Innate regained the rights to SAR'579/IPH6101 in
July 2025. Data from the Sanofi-led Phase 1/2 study and
Phase 2 preliminary dose expansion of the trial have been
transferred to Innate. In a recent corporate update, Sanofi
announced deprioritization of SAR'514, a trifunctional
anti-BCMA NK-cell engager. Sanofi retains exclusive
development and commercialization rights, and the license
terms remain unchanged. It has not triggered any milestone
payments as of June 30, 2026.
-- (iiii) Revenue related to the research collaboration and
licensing agreement signed with Sanofi in 2022 remained
constant over the period, with revenue amounting to EUR0.2
million for the first half of 2026, as for the first half
of 2025. As previously disclosed, in December 2022, the
Company entered into a research collaboration and license
agreement with Genzyme Corporation, a wholly owned
subsidiary of Sanofi ("Sanofi"), under which the Company
granted Sanofi an exclusive license to Innate's B7-H3
ANKET(R) program and options for two additional targets. In
March 2023, Innate Pharma received an upfront payment of
EUR25 million under its research, collaboration and license
agreement with Sanofi. This amount consisted of EUR18.5
million relating to the exclusive license to the B7-H3
technology, which was recognized in profit or loss in June
2023; EUR1.5 million relating to research activities to be
performed over a three-year period, recognized as revenue
on a straight-line basis through November 2026; and EUR5
million relating to the two additional license options,
recognized as contract liabilities until their expiration
or until the options are exercised. In December 2023,
Sanofi exercised one of its license options for an ANKET(R)
program, resulting in the recognition of EUR2.5 million in
revenue and the payment of a EUR15 million milestone, of
which EUR13.3 million related to the license was recognized
immediately in revenue and EUR1.7 million related to
research activities. These research activities were
discontinued following the termination of the agreement in
October 2024, which led to the full recognition of the
EUR1.7 million in revenue in 2024. As a result, Innate
regained the rights to the IPH67 program, while Sanofi
retains a right to compensation on any potential future
revenues. On January 24, 2026, following the expiration of
the deadline to exercise the license option on an
identified target, the revenue of EUR2.5 million has been
fully recognized. Sanofi still has a right on a
non-exclusive license option for an additional target,
exercisable up to January 24, 2028. This option is not
linked with any other revenue.
-- Government funding for research expenditures of EUR2.5m in the
first half of 2026 (EUR3.2m in the first half of 2025), decreasing
by EUR0.6 million, or 20.1% in connection with decrease in
personnel expenses following the restructuring of the organization
to concentrate preclinical and clinical research and development
efforts on higher value assets.
-- Operating expenses are EUR24.7m in the first half of 2026 (EUR30.3m in
the first half of 2025), of which 68.4% (EUR16.9m) are related to R&D.
-- R&D expenses decreased by EUR3.6m to EUR16.9m in the first half
of 2026 (EUR20.5m in the first half of 2025). This change is
explained by direct R&D expenses, which slightly decreased by
EUR1.5 million or 15% to reach EUR8.2 million for the first half
of 2026. This decrease is related to the phasing of studies
(maturity of clinical studies on lacutamab, and IPH5201,
discontinuation of preclinical studies, partially offset by the
ramp-up of IPH4502, our antibody-drug conjugate (ADC). In addition,
Personnel and other R&D expenses decreased by EUR2.2 million, or
20.0%, to EUR8.6 million for the six months ended June 30, 2026,
compared to EUR10.8 million for the six months ended June 30,
2025. This decrease is primarily due to a reduction in personnel
expenses of EUR2.7 million, resulting from a reduction in the R&D
workforce (from 133 to 92 employees), partially offset by a EUR0.7
million increase in other expenses, corresponding to a provision
for risks and charges.
-- General and administrative (G&A) expenses decreased by EUR2.0m
to EUR7.8m in the first half of 2026 (EUR9.8m in the first half of
2025) mainly resulting from an decrease in personnel expenses for
EUR1.5 million due to employees reduction (29 employees for the
six months ended June 30, 2026 vs. 42 for the six months ended
June 30, 2025), a decrease in non-scientific and consulting fees
for EUR0.2 million due to the suspension of the "At the Market"
program on the Nasdaq , a decrease in Other expense for EUR0.2
million in connection with the Director & Officer (D&O) insurance
policy.
-- A net financial loss of EUR0.6m in the first half of 2026 (profit for
EUR4.1m in the first half of 2025). This change is mainly due to an
unfavorable variation in net foreign exchange gain with its unfavorable
impact on the collaboration liabilities recorded during the first half of
2026 in connection with the change in the dollar exchange rate and an
unfavorable variation in income resulting from financial assets and fair
value revaluation due to an unfavorable effect of investment rates
recorded on the financial markets.
-- A net loss of EUR19.6m for the first half of 2026 (net loss of EUR21.3m
for the first half of 2025).
The table below summarizes the IFRS consolidated financial statements as of and for the six months ended June 30, 2026, including 2025 comparative information.
In thousands of euros, except for data per share June 30, 2026 June 30, 2025
Revenue and other income 5,663 4,860
Research and development expenses (16,877) (20,520)
General and administrative expenses (7,797) (9,767)
Operating expenses (24,674) (30,287)
------------------------------------------------ ------------- -------------
Operating income (loss) (19,011) (25,427)
------------------------------------------------ ------------- -------------
Net financial income (loss) (612) 4,083
Income tax expense -- --
------------- -------------
Net income (loss) (19,623) (21,344)
------------- -------------
Weighted average number of shares ( in
thousands) : 93,827 86,937
- Basic income (loss) per share (0.21) (0.25)
- Diluted income (loss) per share (0.21) (0.25)
June 30, 2026 December 31, 2025
Cash, cash equivalents and financial assets 21,376 44,765
Total assets 34,726 62,719
Total shareholders' equity -40,508 -21,704
Total financial debt 20,206 22,571
About Innate Pharma
Innate Pharma S.A. is a global, clinical-stage biotechnology company developing immunotherapies for cancer patients. Leveraging its expertise in antibody engineering and innovative target identification, Innate Pharma is developing innovative and differentiated next-generation antibody therapeutics.
Innate Pharma is advancing a portfolio of differentiated potential first- and/or best-in-class assets, focused on areas of high unmet medical need. Its proprietary pipeline is centered on antibody-drug conjugates (ADCs), led by IPH4502, a differentiated Nectin-4 ADC in clinical development for solid tumors, and supported by a preclinical portfolio of next-generation ADC candidates. In parallel, Innate is advancing two partnered late-stage assets: lacutamab, developed with Sobi for T-cell lymphomas, and monalizumab, developed with AstraZeneca for non-small cell lung cancer.
Innate Pharma has established collaborations with leading biopharmaceutical companies, including Sobi, Sanofi and AstraZeneca, as well as renowned academic and research institutions, to advance innovation in immuno-oncology.
Headquartered in Marseille, France, Innate Pharma is listed on Euronext Paris and Nasdaq in the US.
Learn more about Innate Pharma at www.innate-pharma.com and follow us on LinkedIn and X.
Information about Innate Pharma shares
ISIN code: FR0010331421
Ticker code: Euronext Paris: IPH | Nasdaq: IPHA
LEI: 9695002Y8420ZB8HJE29
Disclaimer on forward-looking information and risk factors
This press release contains certain forward-looking statements, including those within the meaning of applicable securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than present and historical facts and conditions contained in this press release, including statements regarding the future results of operations and financial position, business strategy, plans and the Company's objectives for future operations, are forward-looking statements. These are based on the management's current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to the management. When used in this press release, certain words, including "anticipate," "plan," "believe," "can," "could," "estimate," "project," "expect," "may," "might," "potential," "should," "will," or the negative of these and similar expressions, identify forward-looking statements. Although the Company believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include, among other things, the uncertainties inherent in research and development, including related to safety, progression of and results from its ongoing and planned clinical trials and preclinical studies, review and approvals by regulatory authorities of its product candidates, enrolment, results and other milestones of its preclinical trials, the Company's reliance on third parties to manufacture its product candidates, the Company's commercialization efforts and the Company's continued ability to raise capital to fund its development and product trials.
For additional discussion of risks and uncertainties, which could cause the Company's actual results, financial condition, performance or achievements to differ materially from those contained in the forward-looking statements, please refer to the Risk Factors ("Facteurs de Risque") section of the Universal Registration Document filed with the French Financial Markets Authority ("AMF"), which is available on the AMF website http://www.amf-france.org or on Innate Pharma's website, and public filings and reports filed with the U.S. Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 20-F for the year ended December 31, 2025, and subsequent filings and reports filed with the AMF or SEC, or otherwise made public by the Company. References to the Company's website and the AMF website are included for information only and the content contained therein, or that can be accessed through them, are not incorporated by reference into, and do not constitute a part of, this press release.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company or any other person that the Company will achieve its objectives and plans in any specified time frame or at all. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This press release and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy or subscribe to shares in Innate Pharma in any country.
Summary of Interim Condensed Consolidated Financial Statements and Notes as of JUNE 30, 2026
Interim Condensed Consolidated Statements of Financial Position (in thousand
euros)
June 30, 2026 December 31, 2025
-------------------------------------------- ------------- -----------------
Assets
Current assets
Cash and cash equivalents 6,461 28,092
Short-term investments 4,435 6,218
Trade receivables and others 8,704 12,400
Total current assets 19,600 46,710
Non-current assets
Property and equipment 3,643 4,356
Non-current financial assets 10,480 10,455
Other non-current assets 877 947
Trade receivables and others - non-current 126 251
Deferred tax asset
Total non-current assets 15,126 16,009
Total assets 34,726 62,719
-------------------------------------------- ------------- -----------------
Liabilities
Current liabilities
Trade payables and others 11,269 15,042
Collaboration liabilities -- current portion 8,995 6,501
Financial liabilities -- current portion 10,790 8,802
Deferred revenue -- current portion 127 2,825
Provisions - current portion 1,675 3,479
Total current liabilities 32,856 36,649
Non-current liabilities
Collaboration liabilities -- non-current
portion 30,616 31,748
Financial liabilities -- non-current portion 9,416 13,771
Defined benefit obligations 1,951 1,923
Deferred revenue -- non-current portion -- --
Provisions - non-current portion 395 332
Total non-current liabilities 42,378 47,775
Shareholders' equity
Share capital 4,697 4,687
Share premium 409,094 408,033
Retained earnings (435,541) (386,365)
Other reserves 865 1,118
Net income (loss) (19,623) (49,177)
Total shareholders' equity (40,508) (21,704)
Total liabilities and shareholders' equity 34,726 62,719
-------------------------------------------- ------------- -----------------
Interim Condensed Consolidated Statements of Income (loss) (in thousand euros)
June 30, 2026 June 30, 2025
------------------------------------------------ ------------- -------------
Revenue from collaboration and licensing
agreements 3,115 1,671
Government financing for research expenditures 2,548 3,189
Revenue and other income 5,663 4,860
------------------------------------------------ ------------- -------------
Research and development expenses (16,877) (20,520)
General and administrative expenses (7,797) (9,767)
Operating expenses (24,674) (30,287)
------------------------------------------------ ------------- -------------
Operating income (loss) (19,011) (25,427)
------------------------------------------------ ------------- -------------
Financial income 783 6,886
Financial expenses (1,395) (2,803)
Net financial income (loss) (612) 4,083
------------------------------------------------ ------------- -------------
Net income (loss) before tax (19,623) (21,344)
------------------------------------------------ ------------- -------------
Income tax expense -- --
Net income (loss) (19,623) (21,344)
------------------------------------------------ ------------- -------------
Weighted average number of shares : (in
thousands) 93,827 86,937
- Basic income (loss) per share (0.21) (0.25)
- Diluted income (loss) per share (0.21) (0.25)
Interim Condensed Consolidated Statements of Cash Flow
(in thousand euros)
June 30, 2026 June 30, 2025
------------------------------------------------ ------------- -------------
Net income (loss) (19,623) (21,344)
------------------------------------------------ ------------- -------------
Depreciation and amortization, net 611 707
Employee benefits costs 28 79
Change in provision for charges (1,741) 1,085
Share-based compensation expense 1,071 1,554
Change in fair value of financial assets (90) (249)
Foreign exchange (gains) losses on financial
assets (134) 1,347
Change in accrued interests on financial assets (137) (191)
Disposal of property and equipment (scrapping) 193 20
Other profit or loss items with no cash effect (4) 3
Operating cash flow before change in working
capital (1) (19,826) (16,989)
------------------------------------------------ ------------- -------------
Change in working capital (1,218) (14,175)
Net cash generated from / (used in) operating
activities: (21,044) (31,164)
------------------------------------------------ ------------- -------------
Acquisition of property and equipment, net (90) (58)
Purchase of other assets (3)
Disposal of current financial instruments and
paid interests 2,120 7,143
Interest received on financial assets (108)
Net cash generated from / (used in) investing
activities: 2,030 6,974
------------------------------------------------ ------------- -------------
Proceeds from the exercise / subscription of
equity instruments 14,932
Repayment of borrowings (2,364) (4,456)
Net cash generated / (used in) from financing
activities: (2,364) 10,476
------------------------------------------------ ------------- -------------
Effect of the exchange rate changes (253) 1,022
Net increase / (decrease) in cash and cash
equivalents: (21,631) (12,692)
------------------------------------------------ ------------- -------------
Cash and cash equivalents at the beginning of
the year: 28,092 66,396
Cash and cash equivalents at the end of the
six-months period: 6,461 53,704
------------------------------------------------ ------------- -------------
(1) Cash flows from operating activities include an amount of EUR0.2m of
interests paid for the first half of 2026 (EUR0,2m for the first half of 2025)
and interests received for EUR0,1m for the first half of 2026 (EUR0,5 m for
the first half of 2025).
Revenue and other income
The following table summarizes operating revenue for the periods under review:
In thousands of euros June 30, 2026 June 30, 2025 ------------------------------------------------ ------------- ------------- Revenue from collaboration and licensing agreements 3,115 1,671 Government funding for research expenditures 2,548 3,189 Revenue and other income 5,663 4,860 ------------------------------------------------ ------------- -------------
Revenue from collaboration and licensing agreements
Revenue from collaboration and licensing agreements increased by EUR1.4 million, to EUR3.1 million for the six months ended June 30, 2026, as compared to revenues from collaboration and licensing agreements of EUR1.7 million for the six months ended June 30, 2025. These revenues mainly result from the partial or entire recognition of the proceeds received pursuant to the agreements with AstraZeneca and Sanofi. They are recognized when the entity's performance obligation is met. They are recognized at a point in time or spread over time according to the percentage of completion of the work that the Company is committed to carry out under these agreements.
The evolution for the first half of 2026 is mainly due to:
-- (i) Since December 31, 2025, the revenue from collaboration and
licensing agreements for monalizumab has been fully recognized. Therefore,
no revenue is recognized for the six months ended June 30, 2026, as
compared to EUR0.1 million for the six months ended June 30, 2025.
-- (ii) No revenue related to IPH5201 were generated during the six months
ended June 30, 2026 as during the six months ended June 30, 2025. As a
reminder, the revenue is related to the milestone payment received from
AstraZeneca following the signature on June 1, 2022 of an amendment to
the initial contract signed in October 2018. This amendment sets the
terms of the collaboration following AstraZeneca's decision to advance
IPH5201 to a Phase 2 study. The Company will conduct the study. Both
parties will share the external cost related to the study and incurred by
the Company and AstraZeneca will provide products necessary to conduct
the clinical trial. Revenue from invoicing of research and development
costs for the six months ended June 30, 2026 was 0.4 million compared to
0.9 million for the six months ended June 30, 2025, or a decrease of
(0.5) million.
-- (iii) No revenue were generated for the license and collaboration
agreement signed with Sanofi in 2016 for the six months ended June 30,
2026, as well as for the six months ended June 30, 2025. On April 23,
2025, the Company announced that, in alignment with both company's
current strategic priorities, Sanofi and Innate agreed to terminate the
2016 Agreement as it relates to SAR'579/IPH6101 (CD123 ANKET(R)). Innate
regained the rights to SAR'579/IPH6101 in July 2025. Data from the
Sanofi-led Phase 1/2 study and Phase 2 preliminary dose expansion of the
trial have been transferred to Innate. Otherwise, Sanofi announced
deprioritization of SAR'514, a trifunctional anti-BCMA NK-cell engager
and retains exclusive development and commercialization rights, and the
license terms remain unchanged. It has not triggered any milestone
payments as of June 30, 2026.
-- (iiii) Revenue related to the research collaboration and licensing
agreement signed with Sanofi in 2022 remained constant over the period,
with revenue amounting to EUR0.2 million for the first half of 2026, as
for the first half of 2025. As previously disclosed, In December 2022,
the Company entered into a research collaboration and license agreement
with Genzyme Corporation, a wholly owned subsidiary of Sanofi ("Sanofi"),
under which the Company granted Sanofi an exclusive license to Innate's
B7-H3 ANKET(R) program and options for two additional targets. In March
2023, Innate Pharma received an upfront payment of EUR25 million under
its research, collaboration and license agreement with Sanofi. This
amount consisted of EUR18.5 million relating to the exclusive license to
the B7-H3 technology, which was recognized in profit or loss in June
2023; EUR1.5 million relating to research activities to be performed over
a three-year period, recognized as revenue on a straight-line basis
through November 2026; and EUR5 million relating to the two additional
license options, recognized as contract liabilities until their
expiration or until the options are exercised. In December 2023, Sanofi
exercised one of its license options for an ANKET(R) program, resulting
in the recognition of EUR2.5 million in revenue and the payment of a
EUR15 million milestone, of which EUR13.3 million related to the license
was recognized immediately in revenue and EUR1.7 million related to
research activities. These research activities were discontinued
following the termination of the agreement in October 2024, which led to
the full recognition of the EUR1.7 million in revenue in 2024. As a
result, Innate regained the rights to the IPH67 program, while Sanofi
retains a right to compensation on any potential future revenues. On
January 24, 2026, following the expiration of the deadline to exercise
the license option on an identified target, the revenue of EUR2.5 million
has been fully recognized. Sanofi still has a right on a non-exclusive
license option for an additional target, exercisable up to January 24,
2028. This option is not linked with any other revenue.
Government financing for research expenditures
Government financing for research expenditures decreased by EUR0.6 million, or 20.1%, to EUR2.5 million for the six months ended June 30, 2026 as compared to EUR3.2 million for the six months ended June 30, 2025. This change is mainly due to a EUR0.8 million decrease in the research tax credit due to a decrease in eligible subcontracting expenses.
Operating expenses
The table below presents our operating expenses for the six months periods ended June 30, 2026 and June 30, 2025:
In thousands of euros June 30, 2026 June 30, 2025 ------------------------------------ ------------- ------------- Research and development expenses (16,877) (20,520) General and administrative expenses (7,797) (9,767) ------------------------------------ ------------- ------------- Operating expenses (24,674) (30,287) ------------------------------------ ------------- -------------
Research and development expenses
Research and development ("R&D") expenses decreased by EUR3.6 million, or 17.8%, to EUR16.9 million for the six months ended June 30, 2026, as compared to EUR20.5 million for the six months ended June 30, 2025, representing a total of 68.4% and 67.8% of the total operating expenses, respectively. R&D expenses include direct R&D expenses (subcontracting costs and consumables), depreciation and amortization, personnel expenses and other expenses.
Direct R&D expenses decreased by EUR1.5 million, or 15.3%, to EUR8.2 million for the six months ended June 30, 2026, as compared to EUR9.7 million for the six months ended June 30, 2025. This variation is mainly explained by a EUR1.0 million decrease in expenses related to the phasing of studies (maturity of clinical studies on lacutamab and IPH5201, discontinuation of preclinical studies partially offset by the ramp-up of IPH4502, our antibody-drug conjugate (ADC)).
The change in expenses related to clinical programs is attributable to: (i) an increase of EUR0.5 million for IPH4502, related to the completion of patient enrollment in the dose-escalation phase of the Phase 1 study; (ii) a decrease of EUR0.5 million for the lacutamab program, as clinical studies are reaching completion; (iii) a decrease of EUR1.0 million in the IPH5201 program, as recruitment for Cohort 2 was less advanced than that for Cohort 1 whose recruitment was finalized in the first half of 2025.
Additionally, as of June 30, 2026, collaboration liabilities related to monalizumab and the agreements signed with AstraZeneca in April 2015, October 2018, and September 2020 amounted to EUR39.6 million, as compared to collaborations liabilities to EUR38.2 million as of December 31, 2025. This EUR1.4 million increase mainly results from due to exchange rate fluctuations observed during the period for the euro-dollar exchange rate.
Personnel and other expenses allocated to R&D decreased by EUR2.2 million, or 20.0%, to EUR8.6 million for the six months ended June 30, 2026, as compared to an amount of EUR10.8 million for the six months ended June 30, 2025 due to a reduction in personnel expenses of EUR2.7 million, resulting from a reduction in the R&D workforce (from 133 to 92 employees), partially offset by a EUR0.7 million increase in other expenses, corresponding to a provision for risks and charges..
General and administrative expenses
General and administrative expenses decreased by EUR2.0 million, or 20.2%, to EUR7.8 million for the six months ended June 30, 2026, as compared to general and administrative expenses of EUR9.8 million for the six months ended June 30, 2025. General and administrative expenses represented a total of 31.6% and 32.2% of the total operating expenses for the six months ended June 30, 2026 and June 30, 2025, respectively.
Personnel expenses includes the compensation paid to our employees. They amounted EUR3.2 million for the six months ended June 30, 2026, as compared to EUR4.8 million for the six months ended June 30, 2025. The decrease of EUR1.5 million is primarily due to employees reduction (29 employees for the six months ended June 30, 2026 vs. 42 for the six months ended June 30, 2025).
Non-scientific and consulting fees mainly consist of fees for statutory auditors, accountants, legal advisors, and recruitment. This item decreased by EUR0.2 million, or 15.2%, to EUR1.2 million for the first half of 2025, compared to EUR1.4 million for the first half of 2024. The decrease is mainly due to the suspension of the "At the Market" program on the Nasdaq.
Other expenses decreased by EUR0.2 million, primarily in connection with the Director & Officer (D&O) insurance policy.
Financial income (loss), net
We recognized a net financial loss of EUR0.6 million in the six months ended June 30, 2026 as compared to EUR4.1 million in the six months ended June 30, 2025. This variance of EUR2.5 million mainly results from (i) a favorable variation in net foreign exchange gain increasing by EUR(3.9) million for the first half of 2026 with its favorable impact on the collaboration liabilities recorded during the first half of 2026 in connection with the change in the dollar exchange rate and (ii) an unfavorable variation of EUR0.9 million in income resulting from financial assets and fair value revaluation due to an unfavorable effect of investment rates recorded on the financial markets.
Balance sheet items
Cash, cash equivalents, short-term investments and non-current financial assets amounted to EUR21.4 million as of June 30, 2026, as compared to EUR44.8 million as of December 31, 2025. Net cash as of June 30, 2026 amounted to EUR0.1 million (EUR25.5 million as of December 31, 2025). Net cash is equal to cash, cash equivalents and short-term investments less current financial liabilities.
The Company also has bank borrowings of EUR20.1m, including EUR12.8m of State Guaranteed Loans ("Prêts Garantis par l'Etat") as of June 30, 2026 and EUR7.3m loans subscribed with Société Générale for the construction of its head office as well as EUR0.1m of lease liabilities.
The other key balance sheet items as of June 30, 2026 are:
-- A receivable of EUR4.1 million from the French State, including EUR2.5
million for the research tax credit for the first half of 2026 and EUR1.6
million for VAT credits for the first half of 2026.
-- Advances granted to suppliers to primarily finance ongoing clinical
activities, amounting to EUR2.3 million.
-- Collaboration debt of EUR39.6 million (of which EUR30.6 million is
recorded as "Collaboration Debt -- Non-Current Part"), corresponding to
the Company's commitment to co-financing the monalizumab program with
AstraZeneca.
-- Shareholders' equity amounting to (40.5) million euros, including the
net loss for the first half of 2026 of 19.6 million euros.
Cash-flow items
As of June 30, 2026, cash and cash equivalents amounted to EUR6.5 million, compared to EUR28.1 million as of December 31, 2025, corresponding in a decrease of EUR21.6 million.
The net cash flow used during the period under review mainly results from the following:
-- Net cash flow generated from operating activities of EUR21.0 million
for the six months ended June 30, 2026 as compared to net cash flows used
by operating activities of EUR31.2 million for the six months ended June
30, 2025. Net cash flow from operating activities for the first half of
2026 includes the receipt of the Research Tax Credit $(CIR)$ due for fiscal
year 2025, amounting to EUR6.2 million. Excluding this receipt, cash flow
from operating activities for the first half of 2026 is down by EUR3.9
million compared to the first half of 2025. This is primarily due to
lower net payments to suppliers related to reduced operating expenses and
changes in collaboration debt.
-- Net cash flow from investing activities of EUR2.0 million for the six
months ended June 30, 2026 mainly composed of a disposal of current
financial instruments to meet cash requirements. Net cash flow used in
investing activities of EUR7.0 million for the first half of 2025 was
mainly comprised of a disposal of a current financial instrument and
reinvested up to 4.0 million euros in term deposits in order to secure
and diversify investments.
-- Net cash flow in financing activities for the six months ended June 30,
2026 was EUR2.4 million as compared to net cash flow used in financing
activities of EUR10.5 million for the six months ended June 30, 2025,
consumptions mainly related to repayments of financial liabilities for
EUR2,4 million (EUR4,4 million for the six month ended June 30, 2025) as
the company benefited from a deferral of loan repayments related to the
second quarter of 2026 for an amount of EUR2.1 million. As a reminder,
the first 2025 semester cash flow included the investment for a net
amount of EUR14,9 million received from Sanofi.
Post period events
-- On August 10, 2026, Innate Pharma S.A. and Swedish Orphan Biovitrum AB (publ) (Sobi(R)) announced that they have entered a strategic partnership. Under the terms of the agreement, Sobi will pay Innate Pharma USD 75 million, payable on closing. Innate will be eligible to receive up to a further USD 40 million in respect of near-term development milestones connected to Sézary syndrome. Additionally, Innate will be eligible to receive up to USD 465 million related to the option for Sobi to get full development rights and to future regulatory and commercial milestones. Innate will be eligible to receive tiered double-digit royalties on net sales. This partnership will enable initiation of the TELLOMAK-3 confirmatory Phase 3 study in cutaneous T-cell lymphoma (CTCL), a key step toward filing for accelerated approval of lacutamab in Sézary syndrome, a subtype of CTCL. Under the agreement, Innate will conduct the TELLOMAK-3 Phase 3 confirmatory trial in cutaneous T-cell lymphoma, supporting a planned accelerated approval filing in Sézary syndrome. The planned TELLOMAK-3 study will subsequently support applications for full approvals in key jurisdictions in Sézary syndrome and mycosis fungoides, the most common subtype. Sobi will receive exclusive global rights to commercialize lacutamab upon potential accelerated approval and will be eligible to assume full global development rights following positive Phase 3 results. Closing of the transaction is subject to closing conditions that have be fulfilled on September 16, 2026. -- On August 18, 2026, the company carried out a capital increase of EUR30 million though the issuance of 17,647,059 new Company ordinary shares at a price of EUR1.70 per new Ordinary Share.
Nota
The interim condensed consolidated financial statements for the six-month period ended June 30, 2026 were established in accordance with IAS 34 standard adopted by European Union and as issued by the International Accounting Standards Board (IASB). They have been subject to a limited review by our Statutory Auditors and were approved by the Board of Directors of the Company on September 16, 2026. They will not be submitted for approval to the general meeting of shareholders.
Risk factors
Risk factors identified by the Company are presented in the item 3.D of the annual report filed with the SEC (20-F), on April 1, 2026 (SEC Accession No. 0001598599-26-000005). The main risks and uncertainties the Company may face in the six remaining months of the year are the same as the ones presented in the annual report available on the internet website of the Company.
Of note, the risks that are likely to arise during the remaining six months of the current financial year could also occur during subsequent years.
Related party transactions:
Transactions with related parties during the periods under review are disclosed in Note 18 to the interim condensed consolidated financial statements for the period ended June 30, 2026 prepared in accordance with IAS 34.
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CONTACT: Stéphanie Cornen
VP, Investor Relations & Corporate Communications
stephanie.cornen@innate-pharma.fr
Investor Relations
investors@innate-pharma.fr
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communication@innate-pharma.fr