The Immuron Ltd (ASX: IMC) share price is shooting out the lights on Wednesday following a positive update from the company.
At the time of writing, the biopharma company's shares are swapping hands for 12.2 cents, up 31.18%.
A clinical-stage medical company, Immuron is focused on the development and commercialisation of a novel class of specifically targeted polyclonal antibodies. The company researches and develops hyperimmune products for markets in Australia, the United States, and Canada.
Product sales comprise Travelan and Protectyn, used for the prevention of travellers' diarrhoea.
Let's take a look at the company's latest news…
Image source: Getty Images
What did Immuron announce?
Investors are buying up Immuron shares after the company announced funding on a new research agreement.
According to its release, Immuron advised it has been awarded funding from the United States Department of Defence for Travelan. This will be aimed at examining a dosing regimen of the oral immunotherapeutic for use by the military.
In total, US$4.45 million (A$6.2 million) will be allocated to conduct a controlled human infection model (CHIM) clinical trial.
Up to 60 volunteers will be enrolled in the study. They will be randomly selected to receive either a once-daily dose of 1200 mg of Travelan or placebo.
The results of the trial will also provide information on dosing in the future Phase 3 registration trials.
Immuron noted that a project meeting has been scheduled for the end of January with the US government sponsors.
Infectious diarrhea is the most common illness reported by travellers visiting developing countries and among US troops deployed overseas. The morbidity and associated discomfort stemming from diarrhea decreases daily performance, affects judgment, decreases morale, and declines operational readiness.
While the first line of treatment for infectious diarrhea is the prescription of antibiotics, this has waned over the last decade. Several enteric pathogens have evolved to become increasingly resistant to commonly prescribed antibiotics.
Immuron CEO Dr Jerry Kanellos commented:
This new project expands our clinical development program and represents the first of several significant clinical trials which the company expects to undertake with the US Military in 2022.
…The new funding is testament to the value proposition our hyperimmune bovine polyclonal colostrum technology offers to benefit the U.S. Military as well as the civilian international travelling population.
Immuron share price snapshot
A disappointing 12 months has led Investors to recorded losses of almost 60% on the Immuron share price. In the past month alone, the company's shares have declined around 20%, highlighting a strong downward trend since July 2020.
Based on today's boosted share price, Immuron has a market capitalisation of roughly $28 million, with approximately 227 million shares on issue.
