The Imugene Limited (ASX: IMU) share price is moving in circles during Tuesday afternoon following an update from the company.
At the time of writing, the immuno-oncology company's shares are down 1.58% to 18.7 cents.
It's worth noting that Imugene shares have now lost more than 25% in the past week.
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Imugene provides update on terminated supply contract
Investors are continuing to sell off Imugene shares despite the company's clarification announcement made to the ASX today.
According to its release, Imugene advised that the terminated supply agreement by MSD is not a key factors regarding HER-Vaxx. This relates to the technology, clinical trial design, trial data, and the safety of the immunotherapy.
MSD is a tradename of pharmaceutical giant, Merck & Co.
Furthermore, management noted that the study will run as planned with alternate supply arrangements available to the company. This includes direct reimbursement of hospital pharmacies.
Subsequently, Imugene stated that there is no material difference to the cost of the trial as budgeted, or the agreement.
More on HER-Vaxx
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."
The immunotherapy is being developed for the treatment of gastric, breast, ovarian, lung and pancreatic cancers.
The primary objective of the upcoming clinical trial is to determine the safety and efficacy of HER-Vaxx in combination with anti-PD-1 therapy.
PD1-Vaxx advantage is that it induces a unique polyclonal immune response that may increase response rates for therapy.
Imugene share price snapshot
Adding to today's fall, the Imugene share price is down 8% over the past 12 months.
However, when looking at year to date, its shares have lost half of their value.
Imugene shares reached an all-time high of 62.5 cents in November, before moving on a downhill trend.
Based on valuation metrics, Imugene has a market capitalisation of roughly $1.09 billion.
