Unfortunately IMU has attracted in many people who aren’t suited to Biotech. They need their hands held.
To the contrary I think initially Imugene (IMU-ASX) attracted a significant number of players who were extremely experienced in Biotech investing, having experienced successful in stem cell research investments and other biotech plays prior to investing in Imugene. These investors comprise a strong contingent of top holders on the share register today. From what I am hearing and understand it’s not them that need their hands holding, it's them who are of the belief senior company management need their hands holding. There is significant disquiet among these leading shareholders who are of the opinion the market is no longer listening to the message being conveyed by company management. Undoubtedly the share price reflects the fact. Like it or not the existing management has presided over what is close to 90 percent eradication of shareholder wealth in recent years, and ultimately someone has to pay the price for such a cataclysmic erosion of capital values.
Imugene management need to have a serious rethink on their communication strategy and commercial direction if they are to regain the trust of leading shareholders and salvage some creditability from what is now a collapse in investor confidence. I would suggest an open and transparent dialogue between product founders, financial personnel and shareholders may resurrect some of the respect lost in recent times. Perhaps resurrect is to strong a word. I can hardly imagine investor confidence and trust in leading Imugene management rising again, irrespective of clinical trial results. Maybe “restore confidence” would be an apt phrase.
A solution - WMHB
In short I believe what is called for is an investor conference, webinar or science series, call it what you may, wherein Professors Yuman Fong, Pravin Kaumaya and Saul Priceman MD outline where Imugene are up to in the clinical trials for each of their immunotherapy products i.e., CF33/Vaxinia, PD1 Vaxx and Oncarlytics, followed by a discussion as to where they see their drugs going in the near and long term, taking into consideration what they hope to achieve in the current and ongoing clinical trials for their respective products. Then without a Q&A session having filmed their presentation(s) the Imugene video could cut to a corporate figure i.e., Monil Shah, or a financial director, who outlines the market size of the products aforementioned, the company's plans to commercialise or monetise these assets, and the types of industry participants they are approaching, talking with and indeed working on partnering with on their commercial journey.
The message simlpy isn’t cutting through
Unfortunately the message just isn’t cutting through from company management. There is no point in ignoring the fact that although the science acquired and being developed is both novel and potentially robust in nature, the market is no longer buying it. As a consequence the company owners are dissatisfied with their representatives and seeking answers or more importantly solutions to what is now a crisis in investor confidence. There has been no major US investment on the bourse in recent months appearing within the register, and it must be noted appointments by the Board of IMU do not appear to have attracted leading US Healthcare and Biotech funds to the register. Volumes are dwindling in dollar terms and heaven forbid if another capital raise was required at such meagre price levels. Sugar coating the situation does nothing for financial progress of the company moving forward, nor for the tenure of existing personnel, who it must be said are dancing on a knife’s edge as it is.
Leading shareholders rusted on, but for how much longer?
The one thing Imugene still has going for it is that their long term and initially supportive leading shareholders (i.e., those whom you suggest (somewhat erroneously know little about biotech), are in fact still present on the IMU register. Hopefully Imugene’s personnel listen to the message these company owners are delivering to them, for the betterement of performance in months to come. Having disgruntled shareholders who are of the opinion they are not being listened to or communicated honestly with is hardly the recipe for success at board level in any company, let alone one that already appears disconnected from the market.
DYOR Seek investment advice as and when required Opinions only
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