ImmunityBio, Inc. (IBRX): A Bull Case Theory

We came across a bullish thesis on ImmunityBio, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on IBRX. ImmunityBio, Inc.'s share was trading at $2.30 as of December 1st.

ImmunityBio (IBRX) is positioning itself at the forefront of one of the most pressing medical challenges—widespread immune exhaustion and lymphopenia, where reduced lymphocyte counts weaken the body’s defense against infections and tumors. The company’s flagship therapy, Anktiva, is an IL-15 agonist that promotes T-cell and NK-cell activation, helping reverse lymphopenia and restore immune function. Clinical trials such as QUILT-3.055 (NSCLC) and QUILT-88 (pancreatic cancer) demonstrated durable lymphopenia reversal and significant survival benefits, with median overall survival often doubling versus historical standards.

Anktiva’s potential extends beyond oncology, as many chronic diseases, from Lyme and Long COVID to pathogen-driven cancers, are linked to weakened immune systems. ImmunityBio’s platform uniquely engineers NK cells to produce IL-15 autonomously, creating a self-sustaining immune cascade that enhances therapeutic durability. The company operates extensive GMP manufacturing capacity across the U.S., including facilities in El Centro, Dunkirk, and California, supporting large-scale Anktiva and NK therapy production, while partnerships like the Serum Institute of India ensure robust BCG supply.

Collaborations with MiNK Therapeutics further highlight the platform’s adaptability; combining Anktiva with PD-L1 t-haNK cells yielded exceptional outcomes in pancreatic cancer, underscoring Anktiva’s role as the “engine” of next-generation immunotherapy. Despite a weak balance sheet and elevated risk, ImmunityBio’s asymmetric upside is significant given its platform potential, founder Dr. Patrick Soon-Shiong’s proven biotech track record, and growing recognition of immune system exhaustion as a global health crisis. The company could be positioned to redefine immunotherapy, offering a scalable, potentially paradigm-shifting solution to immune dysfunction across disease categories.

Previously we covered a bullish thesis on Pfizer Inc. (PFE) by Akim Guerreiro in September 2024, which highlighted the company’s strong dividend yield, robust pipeline, and growth potential from the Seagen acquisition. The company’s stock price has depreciated approximately by 13.34% since our coverage. This is because the thesis didn’t fully play out amid weaker revenues. The thesis still stands in the long term as Pfizer remains positioned for recovery through pipeline strength, while Antonio Linares shares a similar, he emphasizes ImmunityBio’s innovative biotech approach targeting immune system restoration.

ImmunityBio, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held IBRX at the end of the second quarter which was 10 in the previous quarter. While we acknowledge the potential of IBRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.