Why the Immuron (ASX:IMC) share price is surging 8% higher

The Immuron Ltd (ASX: IMC) share price is surging 8% today after providing an update on its drug candidate, IMM124E. We take a closer look at the details.

The Immuron Ltd (ASX: IMC) share price is a strong performer on the ASX today. This follows the biotechnology company's update on the anti-viral activity of its drug candidate, IMM124E.

At the time of writing, Immuron shares are swapping hands for 18.5 cents, up 8.8%

A woman kicks a giant COVID-19 molecule, indicating positive share price movement for biotech companies

Image source: Getty Images

What did Immuron announce?

Investors are buying up Immuron shares after the company provided a positive result on its SARS-CoV-2 (COVID-19) program.

According to its release, Immuron advised that Monash University scientists have conducted two tests using IMM124E against SARS-CoV-2. The immunologically-based assays were developed with two recombinant reagents, the SARS-CoV-2 spike protein and a receptor protein. The latter was obtained from Melbourne's Peter Doherty Institute for Infection and Immunity.

Initial findings indicate that IMM124E neutralises activity in which the SARS-CoV-2 virus does not bind with the spike protein or receptor. Essentially, this means that when the virus comes into contact with IMM124E, it cannot latch and infect cells.

Pleasingly, the research team will now look into identifying the inhibitory molecule in IMM124E which causes the reaction.

Deputy director of the Monash Biomedicine Discovery Institute, Professor Lyras commented:

Our initial results suggest the inhibitory substance/s in the products are binding to other antigens present on the SARS-CoV-2 virus which interfere with the mechanism the virus uses to gain entry and infect human cells. We do not yet know which compound/s in the products are responsible for this interference. However, we are excited to try and identify them.

He went on to say, "it does not matter whether antagonists to the SARS-CoV-2 virus block the binding of the spike protein directly or indirectly as long as they can prevent or reduce infection"

In addition to the encouraging announcement, Immuron will appoint Dr Dan Peres as its chief medical officer. Dr Peres will oversee the company's clinical development programs, predominately focusing on COVID-19.

Immuron share price snapshot

Since the beginning of the year, Immuron shares have recorded a loss of almost 20%, despite clinical progress. Over the last 12 months, however, the company's shares have soared to register a gain of more than 110%.

Immuron has a market capitalisation of roughly $42 million, with approximately 227 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Male and female scientists analysing data on a computer.
Healthcare Shares

Why I'd buy this ASX biotechnology company over CSL

The potential for research-driven growth could be large.

Read more »

Scientists working in the laboratory and examining results.
Healthcare Shares

Neuren Pharmaceuticals shares just hit a 12-month high. There could be more good news to come

This week's sales figures were impressive.

Read more »

Woman holding her glasses and looking at her laptop.
Healthcare Shares

Do I still rate CSL shares as a buy after rising 120% in four months?

Let's see if it is too late to buy this biotech giant's shares.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Healthcare Shares

CSL shares push past $200: Is $250 next?

How much further can the CSL share price rally go?

Read more »

Woman holding her glasses and looking at her laptop.
Healthcare Shares

ResMed or Cochlear: Which ASX healthcare share would I buy today?

I like both businesses for the long term, but their recent financial performances have given me something to think about.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Healthcare Shares

Could Telix Pharmaceuticals shares double in value over the next 12 months?

Find out if the ASX biotech stock is a buy, sell, or hold now.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

3 compelling reasons to consider buying Mesoblast shares

This company has a lot going on, plus strong revenues.

Read more »

Doctor with stethoscope typing on her computer.
Healthcare Shares

Are CSL shares a buy, hold, or sell at their 52-week high?

Investors have become much more optimistic about its future. But has the share price recovery gone too far?

Read more »