Why IMU is a multi multi bagger, page-12397

Another article on Australian Biotechs - this time it reports on IMUGENE.

Australia moves to future in biotech and medical technologies (thenewdaily.com.au)

Australia moves to future in biotech and medical technologies withbillions in new investment

Australiahas for a long time had a reputation for living well thanks to our fortuitoussupplies of mineral wealth, which are in demand around the globe.

Butin recent years a new breed of entrepreneur has moved the country into thefuture with developments in the fields of medical and information technology,green technology and biotech.

Thecompanies range from those in the venture capital and development stage tooperators listed on the stock market that make profits for shareholders.

Justhow big the startup sector has become in recent years is highlighted by PaulNaphtali, co-founder and partner of venture fund Rampersand.

“Backin 2013 the industry might have been investing $300 million a year,” he said.

“In2021 that had jumped to $10 billion in Australia.”

Editorof industry newsletter Biotech Daily, David Langsam, said thesector is moving to a more commercial footing.

“Now15 of the top 20 biotech companies have sales and revenue. They aren’tnecessarily revenue positive but they do have commercial revenue. That wasn’tthe case 15 years ago,” Mr Langsam said.

Imugene

Onegroup in the medical field is Imugene, an ASX-listed company, which isdeveloping a range of immunotherapy technologies that allow the body to trackdown and fight off cancer cells.

Thecompany’s most recent breakthrough is a treatment known as oncolytic virustherapy.

Thisinvolves a natural virus being genetically modified to enter cancer cells andreplicate itself.

Thevirus kills cancer cells while avoiding damage to healthy cells. It means thatthe cancer is treated with very limited side-effects for the patient undergoingtreatment.

Thistreatment, along with some earlier developments, the company believes, can alsohelp prime people’s immune systems against cancer, which will in turn make itmore difficult for cancers to get to first base in the body.

Cancersbeing tested with the company’s treatments include lung, pancreatic, colon andcolorectal.

Testingis progressing, but the company is a long way from seeing cashflows.

Imugene treatments turn the body against cancer.

Investorsare still putting up cash to keep the wheels turning. It raised $95 million thefinancial year before last and another $80 million in September 2022.

CEOLeslie Chong said the latest funding round will “give ourselves an unimpededrunway to progress the numerous clinical trials that we have ongoing”.

Eventuallythat will “translate into shareholder value and improved patient outcomes”, shesaid.

Althoughthere are still people prepared to put up cash to fund the group, a shakeout inthe biotech sector has hit it hard.

Imugeneis currently valued at $1.5 billion on the stock market, but it was worth $2.5billion a year ago.

Eugene Labs

Anothernew operator is Eugene Labs, which brings genetic testing into the home for arange of conditions and uses.

CEOKunal Kalro, who co-founded the group with medical scientist Zoe Milgrom, saidthey are inspired by the belief “that great health starts with your genetics”.

Tothat end they provide people with “seamless and actionable genomic healthcare”.

EugeneLabs provides people with the means to do a range of genetic testing in thehome so they avoid the difficulty and time cost of going to hospitalunnecessarily.

Onetest they offer is called carrier screening.

“It’sa test that is either done pre-pregnancy or in early pregnancy that helpspeople understand their risk of having a child with a serious geneticcondition,” Mr Kalro said.

Oncepeople are tested they can make decisions with the backing of their genetic andhealth professionals on how to prevent the passing on of genetic disorders, ifthat is possible.

Ifthat is not possible then management of health and genetic issues can beplanned.

Thereare also cancer and heart health tests available with everything done athome.

Ifpeople want to use Eugene Labs services they register on the internet for asaliva collection kit, fill in a detailed health survey online and send intheir specimen for processing.

EugeneLabs sends these specimens to the appropriate labs for testing.

“Weare not a laboratory,” Mr Kalro said.

However,it interprets lab results into understandable language for its users.

EugeneLabs’ automated processes mean that instead of a clinic seeing 3000 people ayear “we can see 300,000 a year”. That is because people do the testing athome.

Thebusiness began in 2019 and is still being funded by investors who want tosupport its fast, early stage growth.

“Wecould reach profitability in 24 months, but we want to grow harder so we go outand raise more money to fund that,” Mr Kalro said.