The Imugene Limited (ASX: IMU) share price is soaring ahead today.
At the time of writing, Imugene shares are swapping hands for 22.8 cents, a 13.75% gain. In contrast, the S&P/ASX 200 Health Care Index (ASX: XHJ) is 0.87% in the red today. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is falling 0.1%.
Let's take a look at the letter from the company to shareholders released today.
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Imugene share price lifts
Imugene has written to shareholders to discuss the company's share price in the last few months. For perspective, Imugene shares have dived 43% year to date.
Company leaders said Imugene is "as strong as it has ever been in its history". Imugene highlighted it has $100 million in cash and three unique platform technologies supporting six unique assets.
Imugene informed shareholders it expects to have 10 clinical studies supported by five to six United States Food and Drug Administration (FDA) investigational new drug applications. The drugs are targeting greater than 10 disease areas. The company also has two supply agreements with major pharmaceutical companies and two industry collaborations.
Imugene advised the market that multiple shareholders have reached out to the company about the recent cancelling of a supply agreement with MSD. On 2 May, the company's share price plunged nearly 14% on the back of this news. In a letter dated today, executive chair Paul Hopper and CEO and managing director Leslie Chong said:
The reaction to this has been out of all proportion to the news, and is really a storm in a teacup.
We recently announced that this trial is open ahead of schedule and can be expedited by obtaining the drug elsewhere, the cost of which is not material.
Turbulent times
Imugene noted "we are living in turbulent times" and biotech share prices have dropped dramatically since December last year. The company highlighted the sector has plunged about 65% from its peak in February 2021. Furthermore, April was the worst month on record for US biotech shares since 1997. Hopper and Chong added:
In addition, investors around the world have been spooked by the Ukraine Russia tensions, hawkish comments from the US Federal reserve, stubborn inflation and a worsening COVID situation in China.
Hopper and Chong said they remain and will continue to be large shareholders of the company and emphasised the "exciting times" ahead.
Share price snapshot
The Imugene share price has descended nearly 44% in the past year, but it is up 1.1% in a month.
In comparison, the benchmark ASX index has returned 2% over the past year.
In the past week alone, Imugene shares have surged 30%.
Imugene has a market capitalisation of $1.16 billion based on the current share price.
