Immutep (ASX:IMM) share price jumps 5% on Chinese patent grant

Immutep shares make their walk northwards after a patent was granted on Friday.

The Immutep Ltd (ASX: IMM) share price has stepped into the green from the opening of trade on Friday.

Immutep shares are on the move as the company announced it had been granted a Chinese patent on one of its antibody molecules.

Let's investigate further.

man jumping along increasing bar graph signifying jump in alumina share price

Image source: Getty Images

A bit of background to set the scene

Immutep advised that Chinese health authorities had granted the company a new patent on Friday. The company was awarded the approval to develop its "LAG-3 immunotherapeutic products".

In humans, the "lymphocyte activation gene-3", also known as LAG-3, acts like an "immune checkpoint" in the internal highways of our body. That means it is important to regulate our immune system so that it only destroys the foreign and nasty cells inside of us. And not our own.

Immutep has developed a "therapeutic antagonist antibody" called IMP701 to target this LAG-3 molecule. It claims that IMP701 "removes the brakes" that prevent our immune system from "responding to and killing cancer cells".

To achieve this result in humans, Immutep has teamed up with global healthcare giant Novartis AG to further develop the IMP701 antibody.

Together, the pair have created a compound called LAG525, a "humanised form" of IMP701 which is currently being investigated in three separate clinical trials.

What did Immutep announce?

From today's announcement, the patent is particularly "directed to" LAG525. This covers how the antibody is made, and its application in treating illnesses.

In fact, the patent was granted under the specific heading of "Antibody molecules to LAG-3 and uses thereof" from the Chinese Patent Office, to demonstrate this point.

As such, the approval follows the "corresponding" Australian, US, European and Japanese patents that have been previously granted on this molecule from 2018 to 2020.

Obtaining patent approval effectively protects the company's compound, and prevents others from making similar copies. Therefore, it stands to reason that Immutep has gained some competitive advantage with the grant of this patent.

Investors seem to think so too, driving the Immutep share price around 5% higher from the market open on Friday.

Immutep shares are now exchanging hands at 52 cents apiece, down from their intraday high of 54 cents each.

Immutep share price snapshot

The Immutep share price has posted a year to date gain of 27%. This extends the previous 12 month's gain of 171%.

Immutep shares have also climbed around 9% in the green over the last month. Moreover, in the last week, the Immutep share price is up 16%.

These results have outpaced the S&P/ASX 200 index (ASX: XJO)'s return of about 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Share Gainers

Girl with painted hands.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy Tuesday session on the markets today.

Read more »

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week for investors this Friday.

Read more »

A woman looks shocked as she drinks a coffee while reading the paper.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a brutal day on the markets this Thursday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Which were the best-performing ASX 200 shares in September?

These shares didn't let a falling market stop them from racing higher last month.

Read more »

Multi-ethnic people looking at a camera in a public place and screaming, shouting, and feeling overjoyed.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a strong hump day on the ASX today.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wild, but ultimately positive, Tuesday for investors.

Read more »

Rocket going up above mountains, symbolising a record high.
Share Gainers

Invested $5,000 in Dateline shares a week ago? Here's how much you'd have now

It's been a huge week for Dateline shares.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy start to the week's trading today.

Read more »