Why is Immuron Limited’s shares rocketing? Pharma stock IMRN spikes 89%

Highlights

  • The IMRN stock rallied over 89% in pre-market trading Wednesday
  • The company has been awarded funding of A$6.2 million (US$4.45 million) by the US Department of Defense
  • Under the agreement, the firm will examine the dosing regimen for Travelan suited for military use

The stocks of Immuron Limited (NASDAQ: IMRN) were trending on Wall Street Wednesday after the company announced funding of a new research agreement with the US Department of Defense. The shares of the company were up over 89% in pre-market trading January 12.

Immuron is a biopharmaceutical firm based in Australia. It primarily focuses on the development and commercialization of orally delivered targeted polyclonal antibodies that are used to treat infectious diseases.

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The new agreement is entitled "Biologics License Application (BLA) of a therapeutic Bovine Immunoglobulin supplement targeting Travelers’ Diarrhea caused by Enterotoxigenic Escherichia Coli (ETEC)".

The focus of the agreement will be on testing and confirming the efficiency of a single large dose regimen of Travelan in a controlled human infection model (CHIM) clinical study by using the enterotoxigenic Escherichia coli (ETEC) strain H10407.

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Immuron Limited (IMRN) rallied after receiving a funding from the US Department of Defense

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Stock performance and earnings highlights of Immuron Limited (NASDAQ: IMRN):

The stocks of IMRN were priced at US$4.961 at 7:05 am ET on January 12, up 89.35% from its previous closing price when it closed at US$2.62. However, its stock value tumbled 45.98% over the past six months.

The IMRN stock saw the highest price of US$9.23 and lowest price of US$2.32 in the last 52-weeks. Its trading volume on January 11 was 57,743.

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For the year ended on June 30, 2021, the company's gross profit was A$94,705 (US$68,303), as compared to A$1.82 million (US$1.31 million) in the same period of the previous year. For the period, it reported a loss of A$8.38 million (US$6.04 million), against a loss of A$2.92 million (US$2.11 million) in the year ended on June 30, 2020.

As of June 30, 2021, it had cash and cash equivalents of A$25.04 million (US$18.06 million), versus A$3.25 million (US$2.34 million) in the comparable period of the prior year.

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Bottom line:

The total valuation of the award that Immuron has received from the US Department of Defense is A$6.2 million (US$4.45 million). The award was given to the firm to examine the dosing regimen for Travelan suited for military use.

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