INmune Bio, Inc. Announces Second Quarter 2021 Results and Provides Business Update

INmune Bio, Inc. Announces Second Quarter

2021 Results and Provides Business Update

BOCA RATON, Fla., Aug. 04, 2021 (GLOBE NEWSWIRE)

-- INmune Bio, Inc. (NASDAQ: INMB) (the "Company"), a clinical-stage immunology company focused on developing treatments

that harness the patient's innate immune system to fight disease, today reported its financial results for the second quarter ended

June 30, 2021 and provided a business update.

"We continue our planning and setup

for a Phase 2 clinical trial of our lead candidate, XPRO (Xpro1595 ), in patients with mild Alzheimer's disease, which

we plan to initiate by year-end," stated RJ Tesi, M.D. "We have already demonstrated that XPRO can reduce neuroinflammation

and decreases biomarkers of neurodegeneration and improve synaptic function. If successful in Phase 2, we believe XPRO has the

potential to be among the most significant advancements in the treatment of Alzheimer's Disease (AD) and other neurodegenerative

diseases in many years."

Dr. Tesi continued, "At the Alzheimer's

Association International Conference last week, we introduced a new biomarker - Apparent Fiber Density (AFD), a measure of axonal integrity

measured by MRI. XPRO increases AFD in patients receiving 1mg/kg/week. We believe the novel non-invasive white matter analytics

of white matter free water and apparent fiber density will be very useful in the development of XPRO in AD, Treatment Resistant

Depression (TRD) and the many other CNS indications we hope to attack in the future."

"With the completion of a registered

direct offering during July 2021 in which the Company raised $36.9 million of net proceeds combined with the Company raising $15.0 million

of net proceeds from the sale of common stock through the ATM, also in July 2021, we are well financed to Phase 2 Alzheimer's data

and other milestones such as clinical data from INKmune and other developments with our DN-TNF franchise assuming no material delays caused

by the pandemic," said David Moss, CFO.

"Last month, we treated the first patient

in the first Phase 1 clinical trial of our NK cell priming platform, INKmune, in high-risk myelodysplastic syndrome (MDS)," stated

RJ Tesi, M.D. "We are calling INKmune a pseudokine because, in vitro, it converts the resting NK cells into memory-like NK cells

that can kill cancer cells as well or better than NK cells treated cytokines such as IL-12, IL-15 and IL-18 alone or in combination."

"Our preliminary data from the first

patient treated with INKmune support the safety of this approach and give the first confirmation that the in vitro effects of INKmune

on NK cells does translate to patients," said Professor Mark Lowdell, PhD. "I am particularly excited to see NK cells expanding

in our first patient, treated at the lowest dose, which are activated and express cytotoxicity receptors for tumor cells. We are planning

to open a second site for the MDS trial in the UK shortly and to open a second Phase 1 trial, in ovarian cancer in the coming months;

although both are subject to ongoing COVID-related restrictions."

Q2 2021 and Recent Corporate Highlights INKmune Platform Highlights:

DN-TNF Platform Highlights:

Financial Highlights:

Upcoming Milestones:

Financial Results for the Second Quarter Ended June

Net loss attributable to common stockholders

for the quarter ended June 30, 2021 was approximately $6.7 million, compared to approximately $2.1 million for the quarter ended June

Research and development expense totaled approximately

$4.5 million for the quarter ended June 30, 2021, compared to approximately $0.9 million during the quarter ended June 30, 2020.

General and administrative expense was approximately

$2.1 million for the quarter ended June 30, 2021, compared to approximately $1.2 million during the quarter ended June 30, 2020.

As of June 30, 2021, the Company had cash

and cash equivalents of approximately $39.5 million.

As of August 4, 2021, the Company had approximately

17.7 million common shares outstanding.

Earnings Call Information

To participate in this event, dial approximately

5 to 10 minutes before the beginning of the call.

Date: Wednesday, August 4, 2021

Time: 4:30 PM Eastern Time

Participant Dial-in: 877-407-0784

Participant Dial-in (international): 201-689-8560

A transcript will follow approximately 24

hours from the scheduled call. A replay will also be available through August 11, 2021 by dialing 11-844-512-2921 or 1-412-317-6671 (international)

and entering PIN no. 13721921.

XPro1595 is a next-generation inhibitor of

tumor necrosis factor (TNF) that is currently in clinical trial and acts differently than currently existing TNF inhibitors in that it

neutralizes soluble TNF (sTNF), without affecting trans-membrane TNF (tmTNF) or TNF receptors. XPro1595 could have substantial beneficial

effects in patients with neurologic disease by decreasing neuroinflammation. For more information about the importance of targeting neuroinflammation

in the brain to improve cognitive function and restore neuronal communication visit this section of the INmune Bio's website.

INKmune is a pharmaceutical-grade,

replication-incompetent human tumor cell line which conjugates to resting NK cells and delivers multiple, essential priming signals akin

to treatment with at least three cytokines in combination. INKmune is stable at -80oC and is delivered by a simple IV infusion. The INKmune:NK

interaction ligates multiple activating and co-stimulatory molecules on the NK cell and enhances its avidity of binding to tumor cells;

notably those resistant to normal NK-mediated lysis. Tumor-primed NK (TpNK) cells can lyse a wide variety of NK-resistant tumors including

leukemias, lymphomas, myeloma, ovarian cancer, breast cancer.

About INmune Bio, Inc.

is a publicly traded (NASDAQ: INMB), clinical-stage biotechnology company focused on developing treatments that target the innate immune

system to fight disease. INmune Bio has two product platforms that are both in clinical trials. The DN-TNF product platform utilizes dominant-negative

technology to selectively neutralize soluble TNF, a key driver of innate immune dysfunction and mechanistic target of many diseases. DN-TNF

is in clinical trial to determine if it can treat for COVID-19 complications (Quellor ), cancer (INB03 ), Alzheimer's

and treatment resistant depression (XPro595), and NASH (LIVNate ). The Natural Killer Cell Priming Platform includes INKmune

aimed at priming the patient's NK cells to eliminate minimal residual disease in patients with cancer. INmune Bio's product

platforms utilize a precision medicine approach for the treatment of a wide variety of hematologic malignancies, solid tumors and chronic

inflammation. To learn more, please visit www.inmunebio.com.

Forward Looking Statements

Clinical trials are in early stages and there

is no assurance that any specific outcome will be achieved. Any statements contained in this press release that do not describe historical

facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking

statements contained herein are based on current expectations but are subject to a number of risks and uncertainties. Actual results and

the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result

of these risks and uncertainties. INB03 , XPro1595, LIVNate, Quellor and INKmune are still in clinical trials or preparing

to start clinical trials and have not been approved and there cannot be any assurance that they will be approved or that any specific

results will be achieved. Our two platforms are beginning clinical trials and there cannot be any assurance of the success of these trials.

The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks

and uncertainties relating to the Company's ability to produce more drug for clinical trials; the availability of substantial additional

funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization;

and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies.

These and other factors are identified and described in more detail in the Company's filings with the Securities and Exchange Commission,

including the Company's Annual Report on Form 10-K, the Company's Quarterly Reports on Form 10-Q and the Company's Current

Reports on Form 8-K. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance

that may arise after the date of this release.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(In thousands, except share and per share amounts)