'Pharma Bro' Martin Shkreli Says 'Good Chance' Inmune Bio Stock Will Slip 90% On Monday

Former hedge fund manager Martin Shkreli predicts a 90% decline for Inmune Bio Inc. (INMB) shares to $0.50, following a recent 44% surge in the biotech's stock. Shkreli's bearish call, which has seen INMB shares already drop over 15% on Friday and further after hours, cites significant concerns regarding the company's science, lack of robust Phase 1 data, and flawed trial design, specifically the absence of a placebo arm. This outlook is reinforced by activist short-seller BMF Reports, which has echoed similar criticisms including allegations of accounting improprieties, raising fundamental questions about the clinical-stage biotech's valuation and prospects.

Analysis

Inmune Bio Inc. (INMB) is facing a significant, public challenge to its fundamental valuation and clinical prospects, initiated by a highly bearish forecast from Martin Shkreli. Shkreli's prediction of a 90% price decline to $0.50 per share is not based on general sentiment but on specific, critical flaws he identifies in the company's clinical development, including a lack of robust Phase 1 data, no peer-reviewed publications, and a trial design for its XPro1595 candidate that notably omits a placebo control arm. This critique undermines the recent 44% surge in the stock, which was fueled by investor enthusiasm for that same drug candidate. The bearish thesis is materially strengthened by a corroborating short report from activist firm BMF Reports, which echoes the scientific concerns and introduces severe allegations of accounting improprieties and payments to "ghost consultants." The market has reacted swiftly to these combined pressures, with the stock falling 15.13% during Friday's session and an additional 16.32% in after-hours trading, indicating that investors are taking these fundamental and governance-related red flags seriously.

Key Decisions for Investors

• Investors should recognize the extreme downside risk and price volatility in INMB, as the public short-seller campaign directly attacks the scientific validity and management integrity underpinning the company's valuation.
• Monitor any forthcoming response from Inmune Bio addressing the specific critiques, particularly the absence of a placebo-controlled trial and the allegations of accounting irregularities, as the credibility of its rebuttal will be a key determinant of the stock's trajectory.
• Given the severity of the allegations and the stock's negative momentum, existing long holders should re-evaluate their positions, while potential investors should exercise extreme caution until there is independent, peer-reviewed data to validate the efficacy of XPro1595.