Ann: Appendix 4E and Annual Report, page-32

and what do you think how bio sector works especially during initial phases of clinical trials.. Cheap Loan is Almost Non-existent" and Its Impact Rising Interest Rates and Cost of Capital: rising interest rates have made cheap loans less accessible. This is significant for the biotech sector, as many companies rely heavily on external funding to finance their expensive research and development activities. With higher interest rates, the cost of borrowing increases, making it more difficult for companies to secure financing without incurring substantial costs. When cheap debt is unavailable, companies will be forced to raise capital through equity issuance (stock sales), leading to dilution of existing shares. This potential dilution often results in declining stock prices, as the value of each share decreases.

These risks exists.. but what pips and makes these type companies exciting is the potential upside is significant and Imugene looks, just tried one of the models applied for emerging biotech's during clinical trials

Risk-Adjusted Net Present Value (rNPV) Model

• Probability of Success (PoS): For Azer-cel, based on historical data, the average probabilities of success are approximately:
  • Phase 1 to Phase 2: ~63%
  • Phase 2 to Phase 3: ~30%
  • Phase 3 to Approval: ~58%
• Adjusting for Azer-cel Data: Given the promising Phase 1b results (high ORR and CR rates, no severe side effects), the probabilities might be adjusted upwards slightly. For example, PoS for Phase 2 could be estimated around 35-40% based on favorable early outcomes.
• rNPV Calculation: The rNPV model will discount future potential cash flows from Azer-cel by these adjusted probabilities, along with the costs associated with further trials and time to market. This helps determine a more realistic valuation of Imugene’s pipeline, accounting for the high risk of failure inherent in drug development

Clinical Trial Success Rate Benchmarks

• Historical Benchmarks: Using historical benchmarks, Imugene can compare Azer-cel’s performance against industry averages for CAR T therapies. If Azer-cel’s early data continues to outperform these averages (e.g., higher ORR and CR rates, lower side effects), this could be a positive indicator for future success.
• Adjusting Expectations: Based on current data, Azer-cel seems to perform better than average, suggesting a potentially higher-than-average success rate. This would adjust investor expectations and potentially increase the share price