Imugene Progressing Rapidly With Its Strong Product Pipeline; Glimpse At Stock’s Technical Analysis

  • Sep 11, 2019 AEST
  • Team Kalkine
Imugene Progressing Rapidly With Its Strong Product Pipeline; Glimpse At Stock’s Technical Analysis

Clinical stage immuno-oncology player headquartered in Australia, Imugene Limited (ASX: IMU) is engaged in the development of several new and unique immunotherapies that work to trigger the cancer patients’ immune system to treat and remove tumours. The company’s novel platform technology aims to control and foster the immune system of cancer patients against cancerous tumours, possibly attaining a resembling or better effect than the artificially developed monoclonal antibody therapies.

Market Opportunity

With the use of immunotherapies becoming an essential addition to the standard of care in oncology space, the immunotherapy market is witnessing a substantial growth. The use of immunotherapies, in conjunction with an ordinary chemotherapy treatment, has resulted in an improvement in response rates for cancer treatment. As per BIS Research, the global immunotherapy market valuing at USD 40 billion in 2017, is likely to surpass USD 170 billion over the next decade. Also, immunotherapy is driving the growth in oncology transactions, offering IMU with a huge opportunity to find a partner/s for their products.

Glance at Imugene’s Product Pipeline

Imugene holds a robust product pipeline that includes an oncolytic virotherapy (CF33) and numerous immunotherapy B-cell vaccine candidates, targeted at the treatment of a wide range of cancers in conjunction with evolving immunotherapies and standard of care drugs. Let us take a look at the company’s developing pipeline in the below figure:

Oncolytic Virus CF33

In July this year, the company notified about its intention to acquire an exclusive licence to CF33 from the COH (City of Hope) Cancer Centre in Los Angeles, subject to shareholder approval. The company informed that CF33 licensing deal is likely to expand its portfolio of immuno-oncology products, which is currently focused on B cell vaccines. Imugene is planning to begin with Phase I trials of CF33 in the first half of 2020, which is presently in the pre-clinical development stage.

HER-Vaxx (anti-HER-2)

HER-Vaxx, the most clinically advanced therapy in the company’s portfolio, is a vaccine that focuses on cancers having an over-expression of HER-2. The Phase Ib clinical trial of HER-Vaxx was completed in 2018, and the company has already commenced the Phase II clinical trial in March 2019. The Phase II study, that involves testing of patients with HER2+ metastatic gastric cancer, is expected to be completed in mid-2020.

PD1-Vaxx (anti-PD-1)

Acquired as a part of the licensing agreement from OSU (The Ohio State University Wexner Medical Centre and Mayo Clinic ) in 2018, PD1-Vaxx seeks to induce the patients’ body to develop polyclonal antibodies that obstruct PD-1 signalling, generating a similar anti-cancer effect as produced by other immune checkpoint inhibitor monoclonal antibodies, like Keytruda and Opdivo. The pre-clinical studies of PD1-Vaxx have been completed by OSU previously, and Imugene is looking to progress to its Phase I trial in 2020.

B-Vaxx (anti-HER-2)

Developed by Professor Pravin Kaumaya at the OSU in Columbus OH, B-Vaxx is also targeted at the treatment of tumours that over-express the HER-2/neu receptor. The vaccine had shown promising Phase I results and is presently undergoing Phase II clinical development stage.

Combination of B-Vaxx and PD1-Vaxx

Imugene had also tested a combination of B-Vaxx and PD1-Vaxx previously, that had shown to inhibit better cancer growth (90 per cent) in the colorectal cancer model relative to PD-1 Vaxx or monoclonal antibody.

Imugene has so far progressed rapidly with significant development in its product pipeline. The company holds an ability to generate considerable value for its shareholders, subject to the success of clinical trials of its vaccines and oncolytic virotherapies.

Technical Analysis for ASX: IMU

IMU Weekly Chart (Source: Thomson Reuters)

On following the weekly chart, we can observe that IMU, which rallied a massive 471 per cent from the level of approx. A$0.007 to the level of approx. A$0.040, has now corrected over 78.6 per cent, which as per the academics is a bullish price action as the rally was followed by a deep correction.

On the weekly chart, the share price of the company is forming a Golden Crossover (bullish signal) of 21- and 200-days exponential moving average, which are presently at A$0.020 and A$0.019, respectively. The short-term support for the stock remains at the 21- and 200-weeks EMAs.

IMU Weekly Chart (Source: Thomson Reuters)

On further analysis of the weekly chart, one can notice that the stock broke out of the downward sloping trendline; and post a healthy pull-back rally, the stock surged again. However, the 14-day Relative Strength Index is currently in the overbought zone and is at 65.690, which in turn, could indicate a possible short-term price correction.

IMU Weekly Chart (Source: Thomson Reuters)

On extending the Fibonacci projections on the weekly chart, it can be noticed that the stock is currently taking the hurdle of 38.2 per cent projected level, which is at A$0.025. Investors should monitor this level, as a break and sustain above A$0.025 could take the share price to the 100.0 per cent of the projected level.

However, the projected hurdles only remain intact until the stock price does not breach the low of the candle marked 2 on the chart above. The level of A$0.02 could act as the major support for the share price and sustaining above the same could originate bulls’ interest.

IMU is trading at A$0.025 on 11 September 2019 (1:31 PM AEST). The stock has provided a YTD return of 38.89%.


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