Imugene (IMU: $0.098) is raising $11.1 million in a private placement at $0.095 per share. Directors will be participating, as well as an undisclosed pharmaceutical company.
A series of investment rounds, including convertible notes has placed strong downward pressure on the company's share price, with the last round conducted in March at $0.18 per share.
The company continues to generate impressive data with its azer-cel technology. Most recently the company achieved two complete responses in combination with a BTK inhibitor in patients with different types of lymphoma (Follicular and Mantle Cell) where both patients had failed therapy with the BTK inhibitor. Four patients have now been dosed in this third cohort which is combining azer-cel with a BTK inhibitor.
ASCO Presentation
In May the company was granted an oral presentation given by Dr Supriya Gupta, Associate Professor of Medicine at the University of Minnesota. The trial gained data from 24 patients with difficult-to-treat lymphomas or leukemias who had failed at least two lines of therapy and had not received CAR-T treatment.
Overall, 42% of patients achieved a complete response and 38% achieved a partial response. The safety profile was considered manageable with low grade Cytokine Release Syndrome in 84% of patients (Grade 1 and 2 only).
With respect to durability of therapy, in the four patients with CLL, three patients are having a continued response past six months, with one partial responder moving to progressive disease within six months.
In the six patients with MZL, the three complete responders are showing durability past five months, and the other complete responder continues after 28 days. The two partial responders have reverted to progressive disease.
The azer-cel therapy is clearly having a positive treatment effect with manageable side effects. Whilst the company's cash runway is low, there is a very good likelihood of the company securing a licensing deal based on current data.
In its most recent release, Imugene stated: "…the company considers it is entering a period conducive to advancing partnering and out-licensing discussions for azer-cel."
Imugene is capitalized at $52 million.
Bioshares recommendation: Speculative Buy Class B
Disclaimer:
Information contained in this newsletter is not a complete analysis of every material fact respecting any company, industry or security. The opinions and estimates herein expressed represent the current judgement of the publisher and are subject to change. Blake Industry and Market Analysis Pty Ltd (BIMA) and any of their associates, officers or staff may have interests in securities referred to herein (Corporations Law s.849). Details contained herein have been prepared for general circulation and do not have regard to any person’s or company’s investment objectives, financial situation and particular needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without consulting their investment adviser (Corporations Law s.851). The persons involved in or responsible for the preparation and publication of this report believe the information herein is accurate but no warranty of accuracy is given and persons seeking to rely on information provided herein should make their own independent enquiries. Details contained herein have been issued on the basis they are only for the particular person or company to whom they have been provided by Blake Industry and Market Analysis Pty Ltd. The Directors and/or associates declare interests in the following ASX Healthcare and Biotechnology sector securities: Analyst MP: 1AD, ACR, AVR, CGS, CUV, CYC, DXB, IMM, LBT, MX1, OPT, NEU, PAB, PXS,RNO,SOM. These interests can change at any time and are not additional recommendations. Holdings in stocks valued at less than $100 are not disclosed.
