Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Can the Imugene (ASX:IMU) share price fly higher?

The Imugene Limited (ASX: IMU) share price has taken a large hit today. Shares were down over 30% earlier today, but have since recovered slightly. Here's my take.

The Imugene Limited (ASX: IMU) share price has taken a large hit today. Shares were down over 30% earlier today, but have since recovered and are now trading 12% lower from yesterday’s close.

Still, today’s dip isn’t too bad considering how hard Imugene’s shares have rallied over the past 12 months.

Long-term investors have been handsomely rewarded for their patience as shares have returned over 1200% over the past year.

IMU share price

Source: Rask Media IMU 1-year share price chart

What does Imugene do?

Imugene is an Australian clinical-stage biotech company that’s developing a range of treatments that seek to activate the immune system of cancer patients to identify and eradicate tumours.

Being a pre-revenue company, a lot of the excitement over the past year has been the result of various announcements that have caused some serious momentum to build.

Just last week, Imugene told the market it had entered into a licencing agreement for the patents covering a novel combination immunotherapy. The therapy works by unleashing a CD19 virus to enable a particular receptor to target solid tumours, which are otherwise very difficult to treat using different measures.

Managing director and CEO, Leslie Chong said that the technology has the ability to open up a whole new market as more types of cancers can be targeted.

Insider activity

On Tuesday, investors reacted positively to the news that insiders were increasing their holdings of the company.

Leslie Chong exercised 36.2 million options for the sum of $1.5 million, with a remaining 13.8 million options likely to be exercised shortly.

Executive chairman, Paul Hopper also exercised 25 million options for just over $1 million.

Imugene told the market that the additional funds will be used for further research and development activities.

Time to buy Imugene shares?

Like most clinical-stage biotechs, Imugene is yet to generate any revenue for its products and has been a consistent loss-making company for years.

Shareholders have been the primary source of fresh capital to fund its research. Shares outstanding have ballooned to just shy of 5 billion and the company now has a market capitalisation of around $2.3 billion.

The complexity around its product offering is enough to warrant not being a shareholder for me. I can happily say it’s out of my circle of competence, which is what we often look for as part of the Rask investment philosophy.

For more share ideas, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content