ImmunityBio, Inc. (IBRX) is a biotechnology company focused on developing and selling treatments that use the body's own immune system to fight diseases like cancer. They are considered a "commercial-stage" company, meaning they have a product approved and available for sale.

The Business Model (How They Make Money)

ImmunityBio's core business revolves around creating and selling innovative therapies that activate a patient's immune system to combat cancer. Their main product, and currently their primary source of income, is called ANKTIVA (nogapendekin alfa inbakicept-pmln).

ANKTIVA is approved for use in combination with another treatment (BCG) for adults who have a specific type of bladder cancer that hasn't responded to standard therapy. This means they primarily sell to urologists and cancer specialists who treat this condition.

While ANKTIVA for bladder cancer is their commercial anchor, ImmunityBio is also working to expand its use for other types of cancer and in more countries. For example, ANKTIVA has received conditional approval in Saudi Arabia for a type of lung cancer. The company also manages its own manufacturing and supply chain, which helps them control the quality and availability of their products.

In terms of revenue, ImmunityBio reported approximately $113.0 million in net product revenue for the full year 2025. This revenue comes almost entirely from the sales of ANKTIVA. For the first quarter of 2026, their net product revenue was approximately $44.2 million.

The Metrics That Matter Most

For ImmunityBio, a company transitioning from pure research to selling a product, these metrics are key to understanding its financial health and future potential:

1. Revenue: This number tells you the total amount of money the company brings in from selling its products and services. For ImmunityBio, it primarily reflects the sales of ANKTIVA. It's the most critical pulse because it shows how well their approved drug is being adopted by doctors and patients. Since they are a commercial-stage biotech, growing revenue from ANKTIVA is essential to eventually becoming profitable and funding their ongoing research. In 2025, ImmunityBio's net product revenue was approximately $113.0 million. For the first quarter of 2026, it was approximately $44.2 million.

2. R&D Expenses (Research & Development Expenses): This represents the money the company spends on discovering new treatments and improving existing ones. For a biotech company like ImmunityBio, R&D is their lifeblood. It shows their commitment to innovation and building a pipeline of future drugs. High R&D expenses are common in this industry, as developing new therapies is a long, expensive, and uncertain process. For the full year 2025, ImmunityBio's R&D expenses were $218.6 million. In the first quarter of 2026, these expenses were $68.0 million.

3. Net Income (or Net Loss): This is the company's total profit or loss after all expenses, including taxes, have been paid. For many biotech companies, especially those in earlier commercial stages, this number is often negative (a net loss) because they are investing heavily in R&D and building their sales infrastructure. It's important because it shows the overall financial outcome of their operations. ImmunityBio reported a net loss of $(351.4) million for the full year 2025. For the first quarter of 2026, their net loss was $(632.8) million.

4. Cash, cash equivalents and marketable securities: This metric shows how much ready money the company has on hand. For a biotech company that is often operating at a loss, having a healthy cash balance is crucial. It ensures they can continue funding their research, clinical trials, and commercial operations without immediately needing to borrow more money or sell new shares, which can be costly. As of March 31, 2026, ImmunityBio had approximately $380.9 million in cash, cash equivalents and marketable securities. This was up from $242.8 million as of December 31, 2025.

How to Value This Company

The most relevant valuation metric for ImmunityBio at this stage is the P/Sales (Price-to-Sales) ratio.

Here's why:

ImmunityBio is currently reporting a net loss, which means they aren't consistently profitable yet. Because of this, traditional valuation measures like the Price-to-Earnings (P/E) ratio, which relies on positive earnings, wouldn't be useful.

The P/Sales ratio helps you figure out if the stock is cheap or expensive by comparing the company's total stock market value (its "market capitalization") to its total sales over the past year. You calculate it by dividing the company's market capitalization by its total revenue.

For ImmunityBio, P/Sales is a good choice because it focuses on their ability to generate revenue from ANKTIVA, which is a key indicator of their commercial success and future potential. Even if they aren't making a profit yet, growing sales show that their product is gaining traction. A lower P/Sales ratio might suggest the stock is undervalued compared to its sales, while a higher ratio might suggest it's overvalued. However, it's important to compare ImmunityBio's P/Sales ratio to similar biotech companies at a similar stage of commercialization to get a meaningful comparison.