Imugene (ASX:IMU) share price leaps 9% on Pfizer, Merck deal

Cooperation between drug developers could speed up the delivery of effective treatments.

| More on:
smiling health care workers in a medical setting

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Imugene Ltd (ASX: IMU) share price is surging in morning trade, up 9% at time of writing.

Below we take a look at the clinical trial supply agreement announced this morning that looks to be driving ASX investor interest.

What agreement was announced?

The Imugene share price is flying higher after the company reported a new clinical trial supply agreement with Merck KGaA (ETR: MRK) and Pfizer Inc. (NYSE: PFE).

The companies will work together to evaluate the safety and efficacy of Imugene's HER-Vaxx when combined with avelumab in patients with HER-2 positive gastric cancer.

According to the release, HER-Vaxx is a "B-cell peptide cancer immunotherapy designed to treat tumours that over-express the HER-2/neu receptor, such as gastric, breast, ovarian, lung and pancreatic cancer".

Avelumab (marketed as Bavencio) is co-developed by Merck and Pfizer. Avelumab is an immune checkpoint inhibitor.

The phase 2 trial will study the effectiveness of HER-Vaxx combined with chemotherapy with or without avelumab compared to chemotherapy alone in patients with HER-2 positive gastric or gastroesophageal junction adenocarcinomas.

Commenting on the agreement, Imugene's CEO Leslie Chong said:

Imugene is excited to announce this collaboration with Merck KGaA, Darmstadt, Germany and Pfizer. HER-Vaxx has shown a tolerable safety profile and encouraging efficacy in patients with metastatic HER-2 positive gastric cancer, and we are looking forward to evaluating HER-Vaxx with avelumab in the perioperative clinical setting.

Working together, we're committed to finding ways to address the unmet needs of patients living with cancer.

Under the agreement, Imugene will sponsor and fund the study from its existing budget. Merck and Pfizer will provide avelumab.

Imugene share price snapshot

The Imugene share price has been on a tear in 2021, up 525% year-to-date. That compares to a 12% gain posted by the All Ordinaries Index (ASX: XAO) during that same period.

Over the past month, Imugene shares are up 48%.

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 Healthcare Shares

Shot of a young scientist using a digital tablet while working in a lab.
Share Gainers

If you'd put $20,000 in this ASX healthcare stock during COVID-19, you'd have $257,000 now

You could have become filthy rich in just 4 years. Just think about that.

Read more »

Shot of a young scientist using a laptop while conducting research in a laboratory.
Healthcare Shares

Sonic Healthcare shares hit 52-week low as analysts take a scalpel to targets

Analysts have sharpened the knives after the latest blood-sucking half year at Sonic Healthcare.

Read more »

Shot of a young scientist using a digital tablet while working in a lab.
52-Week Highs

Medibank share price hits 52-week high on US tech partnership

This private health insurer's shares are scaling new heights today. But why?

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

What is the dividend growth rate of CSL stock?

CSL's dividends are worth more than what meets the eye.

Read more »

Shot of a young scientist looking stressed out while working on a computer in a lab.
Earnings Results

Sonic share price sinks after first-half profit crash

The healthcare company's profits have almost halved.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

The market is placing 'zero value' on this ASX 200 stock's booming pipeline

Up 78% in a year, these experts reckon there’s more outperformance to come from this top ASX 200 stock.

Read more »

Shot of a senior scientist looking stressed out while working in a lab.
Healthcare Shares

This ASX 200 healthcare share is diving 13% as short sellers take aim

A short seller is describing this company's Daybue product as a 'flop'.

Read more »

Happy, tablet or doctor in a laboratory with research results or positive feedback after medical data analysis. Smile, vaccine or healthcare worker reading or working on futuristic science innovation.
Healthcare Shares

Guess which ASX 300 healthcare stock is surging 13% on FDA news

Here's what's getting investors excited today.

Read more »