Ann: HER-Vaxx induced antibodies correlated with tumour reduction, page-21

Her Vaxx has often been viewed as a comparable if not better drug than Roche's Herceptin, given not only its outstanding overall survival rates (OSR) but it's strong safety parameters. With peak sales of approximately $6 billion USD Herceptin may well have been worth close to $25 billion USD to the Roche pharmaceutical company. That's a value equivalent in excess of $5 per IMU share when taking Imugene's current market cap and shares on offer into consideration. Yes the HER 2 market is a more competitive space than when Herceptin first arrived and reached peak sales, but it shows how completely ridiculous the IMU share price is at these levels.

To think a Big Pharma, hedge fund or large Asian investor is not going to pay north of $5bn USD for a piece of the her Vaxx and B Cell pie is fanciful. It is no doubt looking like Merck, as they are in combination with Her Vaxx via the Keytruda route, but I wouldn't be ruling out Roche (in combination with PD1 Vaxx) or Pfizer either. Like PD1 Vaxx, which in my mind is an awesome drug trialling in one of the world's largest cancer markets (i.e., lung cancer), Her Vaxx is going to have significant interest as the medical world awakes to its huge combination potential. Low costs of manufacturing, little or no toxicity and the potential to treat a vast array of cancer indications in are all upside for the acquirer.

This time last year when the Her Vaxx overall survival rates were announced IMU was three times the price it is today. OSR results are even better now and Imugene's clinical trials are far more advanced than they were back then. This stock is due for serious rerate in July.


DYOR Seek investment advice as and when required Opinions only