Why has ASX 200 healthcare stock Imugene leapt 15% in a month?

Let's check what's been going on with this biotechnology company lately.

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Key points
  • This ASX 200 healthcare stock has soared almost 15% in a month 
  • An update on a clinical trial appeared to give the share price a boost 
  • The company is developing immunotherapies to treat cancer 

The Imugene Ltd (ASX: IMU) share price has been racing ahead in the last month.

Shares in the ASX 200 healthcare stock have risen 14.6% since market close on 17 March and are currently fetching 13.75 cents a share. For perspective, the S&P/ASX 200 Health Care Index (ASX: XHJ) has climbed nearly 5% in this same time frame. Though Imugene shares are sliding 1.79% today.

Let's take a look at what's been impacting this ASX 200 healthcare stock lately.

Two laboratory researchers in white coats and gloves sit side by side with scientific equipment and a computer screen conducting medical related research.

Image source: Getty Images

Why has the Imugene share price been rising?

Imugene is a biotechnology company developing therapies that activate the immune system to target cancer tumours.

A notable highlight during the month was an update on its Vaxinia MAST (metastatic advanced solid tumours) trial.

Imugene shares soared nearly 8% on the day of the announcement and a further 7% the following day.

The first patients in cohort three have been dosed in the monotherapy intratumoral (IT) and intravenous (IV) arms of the trial.

The study, together with the City of Hope in the US, is investigating the safety of novel cancer-killing virus CF33-hNIS.

Commenting on this news, CEO and managing director Leslie Chong said:

Still being less than 12 months since the very first patients were dosed, we're now well advanced on amassing the critical data we require to publish on the outcomes of this study, and we remain very positive on the potential benefit to patients.

Imugene said the trial remains on schedule and is expected to take 24 months overall, having commenced in May.

Meanwhile, in late March, Imugene updated the market with a presentation at the NWR healthcare conference.

Imugene noted its investment highlights including "five unique assets" – HER-Vaxx, CHECKvacc, CF33-CD19, Vaxinia, and PD1-Vaxx – targeting multiple potential platform targets.

The company also has three platform technologies, three scientific collaborations, and two supply agreements with Merck/KGaA/Pfizer and Roche.

Share price snapshot

Despite its recent gains, the Imugene share price remains 36% lower over the past 12 months. It has also dropped 8% in just the last week.

This ASX 200 healthcare stock has a market capitalisation of about $883 million based on the latest 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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