The Immuron Ltd (ASX: IMC) share price soared again today, trading up 16.67% at 14 cents near the market close.
This follows a massive trading day as the company cemented its place as one of the best performers on the ASX yesterday with its share price seeing a whopping 31% increase.
So what happened with this Melbourne-based biotech company to make it reach such impressive prices?
Let's take a look…
Diarrhoea drug to hit Europe
At its core, Immuron focuses on creating and commercialising oral immunotherapies that both prevent and treat gut-related ailments.
It has two main products — Travelan, an over-the-counter oral medicine used to treat traveller's diarrhoea — and Protectyn, an immune supplement (sold by practitioners) supporting both digestive and liver function.
Today, the biotech company announced it had received a European patent for its treatment of traveller's diarrhoea.
Immuron advised that European Patent 3159357 — the "composition and method for the treatment and prevention of enteric bacterial infections — would give it the exclusive rights in several European countries.
The company already holds an existing patent position in Australia, India, Canada and the United States.
Once the patent is validated, Immuron will be able to sell its drug composition in France, Spain, Sweden, Austria, Germany, Denmark, Finland, Greece and the United Kingdom.
US military focus on Travelan
According to Immuron, traveller's diarrhoea not only is the most common form of illness for visitors to developing countries but also afflicts US troops that are deployed overseas.
In fact, prevention of the illness is a high priority for the US Military.
"The morbidity and associated discomfort stemming from diarrhea decreases daily performance, affects judgement, decreases morale and declines operational readiness," Immuron said in today's announcement.
And its not just only the short term effects Immuron considers worrisome — the medical community is now recognising that the illness can have serious post-infectious after-effects, inducing irritable bowel syndrome and other autoimmune diseases.
As such, the biotech company was awarded a $6.2 million Travelan clinical trial agreement by the United States Department of Defence yesterday — the first of several trials expected to undertaken with the military this year.
After releasing the news, the Immuron share price jumped just over 30% before lunchtime trade.
Immuron share price snapshot
Despite its recent positive moves, the Immuron share price has dropped 36% over the past 12 months. In fact, it saw its 52-week-low on Tuesday, when it hit 9 cents.
Since then, shares in the company have rebounded an impressive 55%.
The biotech company has a market capitalisation of $31 million and more than 277 million shares issued.
