Here’s why the Imugene share price is plunging 15% today

The company’s latest announcement has sent investors fleeing for the hills…

| More on:
A female scientist sits at her desk looking stressed out while working in an AnteoTech lab.

Image source: Getty Images

Key points

  • Imugene shares backtrack 15% to 18.7 cents
  • The company notified investors it has terminated a supply agreement with MSD for its immunotherapy HER-Vaxx
  • No reason was given for the termination

The Imugene Limited (ASX: IMU) share price is deep in the red today following a shock announcement from the company.

At the time of writing, the immuno-oncology company’s shares are down 15% to 18.7 cents apiece.

It’s worth noting that Imugene shares have extended their losses to around 23% in the past month.

Imugene terminates supply contract

Investors are selling off Imugene shares after the company advised it has cancelled a supply agreement with MSD. The latter is a tradename of pharmaceutical giant Merck & Co.

While no reason was given for the termination, Imugene is continuing with its clinical trial of HER-Vaxx.

The primary objective of the study is to determine the safety and efficacy of HER-Vaxx in combination with anti-PD-1 therapy.

The immunotherapy will be used for treatment of gastric, breast, ovarian, lung, and pancreatic cancers.

HER-Vaxx is a B-cell immunotherapy that has been shown in studies to “stimulate a potent polyclonal antibody response to HER-2/neu, a well-known and validated cancer target”.

PD1-Vaxx has the advantage that it induces a unique polyclonal immune response that may increase response rates for therapy.

Imugene share price snapshot

Despite today’s fall, the Imugene share price has managed to remain 1.32% in the green over the past 12 months.

However, when looking year to date, its shares are down by 52%.

Imugene shares reached an all-time high of 62.5 cents in November, before shifting to a downhill trend.

Based on today’s price, Imugene has a market capitalisation of roughly $1.12 billion with approximately 5.85 billion shares on issue.

Motley Fool contributor Aaron Teboneras has no position 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 Scott Phillips.

More on Healthcare Shares

Boy in business suit smiles with arms crossed and rockets attached to his back representing the rocketing BrainChip share price
Healthcare Shares

Why did the Race Oncology share price rocket 10% today?

Investors view Race Oncology's latest release in a positive light.

Read more »

A health professional wearing a stethoscope and scrubs shrugs with uncertainty.
Healthcare Shares

How have Polynovo shares been performing since leaving the ASX 200?

The medical device company's shares can't seem to catch a break this week.

Read more »

Scientists in a laboratory look at a computer screen with anticipation on their faces representing positive results released by ASX biotech Recce Pharmaceuticals which have boosted its share price today
Healthcare Shares

‘The largest unmet medical need in human health’: Why this ASX biotech share is surging 28% today

Recce shares are flying high in Tuesday trade.

Read more »

a woman leans forward with her hand behind her ear, as if trying to hear information.
Healthcare Shares

Down 20% in a year, is the Cochlear share price a bargain buy?

Investors need to hear this: Some brokers think Cochlear is an opportunity.

Read more »

A man wearing a white coat and glasses is wide-mouthed in surprise.
Mergers & Acquisitions

Why is the ResApp share price crashing 29% today?

ResApp shares have been hammered on Tuesday...

Read more »

a medical person in full protective clothing holds a tray of Covid-19 vaccinations amid a haze caused by cold and ice.
Healthcare Shares

ResApp share price frozen as $180m Pfizer takeover bid hangs in the balance

The value of Pfizer's takeover bid may soon come to light.

Read more »

A woman in workout gear flexes her muscles while holding a juice
Healthcare Shares

CSL share price ‘will be significantly bigger from this point’: fundie

This fund manager has tipped growth of 10% to 30% for some ASX share opportunities like CSL.

Read more »

Two happy scientists analysing test results.
Broker Notes

Why this top broker tips 20% upside for the Sonic Healthcare share price

The Sonic Healthcare share price has underperformed its sector peers in 2022. Two brokers say buy.

Read more »