The Imugene Limited (ASX: IMU) share price finished the session on Tuesday at 25 cents — down 3.85%.
This is broadly in line with the general market, which also had a poor showing today. The S&P/ASX 200 Health Care Index (ASX: XHJ) fell 1.5% and the S&P/ASX All Ordinaries Index (ASX: XAO) dropped 1.21%.
The last time we heard from Imugene was on 10 August when it gave us an update on a clinical trial. The Imugene share price shot 11.11% higher on the day of the announcement.
Since then, Imugene shares have taken a decidedly downwards trajectory. Let's take a look.
What's happening with the Imugene share price?
Imugene shares are now down 17.67% on their closing price on 10 August. What gives? Well, let's start at the beginning of this mystery.
On 10 August, Imugene shared some exciting news with the ASX. As my colleague Aaron covered, Imugene announced that the first patient from the third cohort of the Checkvacc Phase 1 clinical trial had been dosed.
Checkvacc is an oncolytic virotherapy candidate that aims to activate a patient's immune system to treat and eradicate cancerous tumours.
ASX investors loved the news and bid up the Imugene share price to 30 cents. But the very next day, the shares went into reverse, losing 3.3%. That sometimes happens after a share price surge. Some investors take the short-term gains they've made after big news pushes an ASX share price higher.
But the downhill movement has been continuous — and painful. At 25 cents today, the shares are now lower than they were when the clinical trial announcement was made.
Is Imugene just following the market?
Well, the general market has fallen since 10 August but not as much as Imugene.
Since the closing bell on 10 August, the S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen by 1.44%. The S&P/ASX All Ordinaries Index (ASX: XAO) has dropped 0.55%.
But with no news out of the company since 10 August, we might just have to put this almost 20% dip down to volatility. This isn't uncommon with healthcare companies that are still trialling products and not yet making a profit. Their share price movements tend to hinge on clinical trial progress and results.
Is the Imugene share price a buy?
Arguably, one of the best times to buy any ASX share is on a share price dip that no one can explain. Or at least, a dip that has nothing to do with the fundamentals of the company itself. That's called 'buying the dip'.
It's worth noting that earlier this month, my colleague Zach reported that every broker covering Imugene had a buy rating on it, according to Refinitiv Eikon data.
The consensus price target for Imugene shares at the time was 56 cents per share.
Based on today's closing share price, that means there's a 124% upside available to ASX investors here.
The Imugene share price is down 42% year to date and down 22% over the past 12 months.
