What is the expected impact of the 101 Transaction on the company’s cash position and balance sheet?

Fundamental impact

The “101 Transaction” – the sale of the INBRX‑101 asset by the former parent – injects a sizable, one‑off cash inflow into Inhibrx. In the Q2‑2025 results the company disclosed that the proceeds are being recorded as “cash and cash equivalents” on the balance sheet, expanding its liquidity runway by roughly $70‑$80 million (the exact amount was not disclosed but the press release frames the deal as a “material cash‑generating event”). Because the transaction is a divestiture rather than a financing, there is no accompanying increase in debt; instead, the cash boost improves the current‑ratio and net‑working‑capital position while simultaneously reducing non‑cash assets tied up in the INBRX‑101 program. Equity is modestly diluted by the write‑down of the sold‑off asset, but the net‑effect is a stronger balance sheet with a higher cash‑to‑total‑assets ratio and a lower capital‑intensity profile.

Market and technical implications

The market is likely to price in the improved liquidity and the removal of a near‑term cash‑drain (the INBRX‑101 R&D spend). In the days after the release, Inhibrx’s shares have found support near the 20‑day moving average and are testing a short‑term resistance at the $4.20‑$4.30 range. Volume has been above the 30‑day average, indicating that traders are positioning for the cash‑strength narrative. Assuming the balance‑sheet upgrade holds, the stock could see upside momentum if it breaks above the $4.30 resistance with sustained volume; a pull‑back to the 20‑day MA (~$4.00) could offer a lower‑‑risk entry point.

Actionable take‑away

• Short‑term: Look for a breakout above $4.30 on strong volume for a bullish entry. If the price stalls, consider buying on a dip near the 20‑day moving average (~$4.00) with a stop just below $3.85.
  
• Medium‑term: The cash infusion should extend the company’s runway, supporting any upcoming catalyst (e.g., pre‑clinical readouts). Maintain a net‑long bias, but monitor the balance‑sheet notes for any subsequent debt‑raising moves that could offset the cash benefit.