The Imugene Ltd [ASX:IMU] share price is floundering today on the back of an announcement regarding its HER-Vaxx immunotherapy in HER-2 positive gastric cancer trial.
In early morning trade, IMU’s share price fell as low as 7%.
Since then, it has rebounded slightly and is now down 4% at time of writing.
Source: TradingView.com
Although the company’s announcement was largely positive, it’s possible investors could be seeing red flags.
Today, we’ll go through today’s announcement to get an outlook on Imugene shares.
What are these clinical trials all about?
Imugene is a unique biotech company that specialises in cancer immunotherapy.
Its lead product is HER-Vaxx, a cancer vaccine designed to target gastric cancer and breast cancer where the cancer is HER-2 positive.
Today’s release revealed the company’s phase 2 gastric cancer trial data.
A further three new trials were also announced.
But first, let’s take a look at the phase 2 trial.
This trial is designed to assess the efficacy, safety and immune response in metastatic gastric cancer overexpressing the HER-2 protein.
The main goal is overall survival (OS), with progression free survival (PFS) being a key secondary endpoint.
So far, 36 patients have been enrolled. Of those, 24 have achieved a PFS event in the study.
Although Imugene’s PFS hazard ratio was higher than the initial interim data from last year, it wasn’t too different from the landmark Genentech/Roche registrational ToGa study.
This study looked at similar phenomena.
In terms of getting an OS result, Imugene is still anticipating the events needed for an OS appraisal.
Based on the existing results, Imugene is now planning three new trials.
So why did the IMU share price drop?
It’s possible that the higher hazard ratio may have troubled some investors.
And if the company is investing in further trials, then high costs could also be a concern.
Clinical trials are lengthy, expensive exercises and new ones in the works could make a big dent in Imugene’s capital.
However, if the trials yield great results, then arguably the cost will be worth it.
Biotech is a fast-growing industry, and it has the power to change the face of healthcare as we know it.
But in terms of buying stocks, I’m not sure I’d jump headfirst into Imugene just yet.
Although the stock is up almost 300% in 2021, I’m still curious to see how the results from its future clinical trials pan out.
In any case, it’s an exciting play to consider.
That said, there are plenty of unique, high-potential opportunities to consider right now, particularly for those interested in getting into smaller ambitious companies.
These sorts of companies might be high-risk but if they achieve the level of success they’re shooting for, large gains could be for the taking.
Our leading small-cap stock market analyst Murray Dawes has found seven stocks on the ASX today he believes fit this description.
I recommend checking out Murray’s thoughts on these stocks.
There are some compelling ideas in there.
Regards,
Kiryll Prakapenka,
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here
