Dear Habib
The impact of the last capital raising and Share Purchase Plan has left us baffled as to why our share price has been so severely sold off, and I’m sure you must ask yourself the same questions. Some softness in share price is expected after a raise, particularly with options attaching, but this time the impact has surprised us all. The move from the ASX 200 to the ASX 300 has also not helped.
With few exceptions, biotech companies on the ASX have been under pressure for nearly two years and unfortunately Imugene has felt the brunt of the market’s shunning of the sector, which has occurred both within Australia and on a global scale.
The recent feedback around the share price seems to focus on why we raised the money when we already had what appeared to be a deep war chest. The Board took the view that the scale of the azer-cel acquisition demanded a conservative approach to capital management, and therefore felt the most appropriate long-term strategy was to secure additional funding as we endure this tough economic climate.
Our balance sheet is now one of the strongest in the industry with ~$180 million in the bank, we are in good shape with a diversified technology portfolio, five company FDA INDs (the global gold standard for running human clinical trials) and another with City of Hope, and five clinical trials recruiting across the US and Australia. Coming up we have the onCARlytics study that will soon enrol patients, another investigator sponsored trial in combination with onCARlytics at City of Hope, and azer-cel’s Phase 1b expansion will start enrolling patients with the FDA having cleared the batch 1.2 dose. This is all supported by a highly qualified senior management team with very deep expertise in cell therapy, CAR T in solid tumours and in blood cancers. There are few ASX biotechs with such strength and depth.
With that said, it is difficult to understand the negative sentiment reflected in the low share price.
We want to assure you that your investment in Imugene and support of the Company is important to us both, the Board and management.
We are fully aware of the responsibility this brings to us and the management team. We are all deeply committed to achieving a return to a more favourable share price.
We would welcome any thoughts or suggestions from you and will endeavour to respond with a short turnaround.
Thanks and regards,
Paul Hopper and Leslie Chong
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