TotalcommitmentonIBRX

It is time to take a clear, evidence-based view. IBRX has the potential to become a truly transformative biotechnology company, and the accumulating data support that conclusion. Each clinical study released to date has demonstrated strong efficacy signals alongside a favorable safety profile. While the stock has improved rapidly and is now consolidating, the long-term upside remains, in my view, significantly underestimated.

Some market commentators, including Jim Cramer, whose perspective we respect, have suggested the stock has moved too far, too fast. However, a closer look at the fundamentals tells a different story. IBRX currently carries a market capitalization of approximately $6 billion. Insiders control nearly 60% of the outstanding shares, while institutional ownership stood at roughly 10% at year-end. Importantly, the company’s debt is held entirely by affiliates of Dr. Patrick Soon-Shiong and is widely expected to convert to equity, effectively rendering the company debt-free with a solid cash position. This structure creates unusually strong alignment between management and shareholders.

Recent regulatory approval in Saudi Arabia for a lung cancer indication further underscores the credibility of the platform. This decision reflects three key realities: first, the therapy demonstrates clinical efficacy; second, it maintains an acceptable safety profile; and third, Saudi Arabia has strategic ambitions to lead in advanced medical technologies. It would not be surprising if this approval were accompanied by incentives to establish regional manufacturing capacity, nor if sovereign or institutional Saudi capital were to take meaningful positions in the company.

Skepticism toward Dr. Soon-Shiong’s work has often stemmed from intellectual inertia rather than data. As a surgeon who crossed disciplinary boundaries to deeply engage with immunology, he challenged entrenched thinking around cancer treatment, and that inevitably attracted resistance. Yet regulatory decisions are not driven by groupthink; they are driven by evidence.

While the stock may appear expensive on a near-term basis, valuation must be viewed in the context of potential. A biotech company generating $1 billion in annual revenue typically trades at 8–10× sales, often higher during periods of rapid growth. IBRX has already demonstrated safety and tolerability and holds potential for incorporation into treatment regimens across multiple malignancies. The revenue opportunity here is measured not in millions, but in billions of dollars.

In that context, a move toward a $10–15 share price over a relatively short timeframe is not an unreasonable outcome. Short-term volatility and skepticism are to be expected. We are choosing to focus on the data, the company's structure, and the alignment of incentives. Accordingly, we have established a 10% position in my portfolio.