Why did the Imugene share price implode 31% in September?

We take a look at how Imugene performed in September.

Key points
  • Imugene shares have fallen nearly 30% in a month 
  • The company's share price has descended more than 60% in a year 
  • During September, Imugene conducted an $80 million capital raise 

The Imugene Limited (ASX: IMU) share price had a rough month despite multiple clinical trial updates.

Imugene shares have fallen 30.77% from 26 cents at market close on 31 August to 18 cents at market close on 30 September.

Let's take a look at how the Imugene share price performed in September.

A disappointed lab researcher sits in her lab looking at her clipboard with her hand to her face as she worries about the Imugene share price today

Image source: Getty Images

Imugene shares fall

Imugene shares have fallen in the past month even with multiple clinical trial updates from the company. However, the company has also conducted a major capital raise.

Imugene is not the only pharmaceutical industry share on the ASX to have fall in September. The Telix Pharmaceuticals Ltd (ASX: TLX) share price has descended 24% since market close on 31 August. Immutep Ltd (ASX: IMM) shares fell 13% in the same time frame. Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) has dropped 5% in the month.

On 13 September, Imugene shares dropped amid an $80 million capital raise. The placement involved the issue of 400 million new ordinary shares at 20 cents per share. Imugene also offered a total of 200 million new options to placement subscribers at an exercise price of 33 cents per share. The share allotment date and issue of new options was 19 September.

On 21 September, Imugene advised the first patient had been dosed in intravenous cohort 1 in the VAXINIA phase one clinical trial. Imugene CEO Leslie Chong said she was "very proud" of team and partners on the Vaxinia study.

Then on 26 September, news emerged that Imugene had formed a partnership with Arovella Therapeutics Ltd (ASX: ALA). Arovella's CAR19-iNKT cell therapy will be tested with Imugene's onCARlytics platform with the aim of destroying solid cancer tumours.

On a positive note, the Imugene share price increased 9% on 8 September. The company advised it has dosed the first patient in the nextHERIZON phase two clinical trial. The trial is investigating the use of Imugene's HER-Vaxx in patients with HER-2+ gastric cancer.

Imugene share price snapshot

The Imugene share price has lost 63% in the past year, while it has fallen 58% year to date.

For perspective, the ASX 200 health care index has shed 11% in the year to date.

Imugene has a market capitalisation of about $1.13 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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.

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