Guess which ASX small cap stock is jumping on 'significant milestone'

This stock is ending the week in style. Let's see what is giving its shares a boost today.

Imugene Ltd (ASX: IMU) shares are ending the week on a positive note.

In late morning, trade, the ASX small cap stock is up 5% to 4.1 cents.

Six smiling health workers pose for a selfie.

Image source: Getty Images

Why is this ASX small cap stock roaring higher?

Investors have been bidding the immuno-oncology company's shares higher on Friday after it released a clinical trial update.

This update relates to the phase 1b clinical trial of its allogeneic CAR T-cell therapy azer-cel at the Royal Prince Alfred Hospital (RPAH) in Sydney.

This trial is focused on patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL), which is one of the most challenging and aggressive forms of non-Hodgkin's lymphoma.

According to the release, the first Australian patient has been dosed in the Phase 1b clinical trial at the RPAH.

It notes that azer-cel is one of the few allogeneic CAR T-cell therapies currently being evaluated in Australia. It offers an off-the-shelf alternative to traditional autologous CAR Tcell therapies, which require lengthy manufacturing processes involving a patient's own cells.

By utilising pre-manufactured donor T-cells, azer-cel has the potential to significantly shorten treatment timelines and expand accessibility for patients with limited options.

Promising data

The good news is that promising data has been reported recently from other trials.

The small cap ASX stock notes that it recently reported "promising data from its US trial sites, demonstrating the potential of azer-cel to deliver meaningful clinical outcomes."

In the US-based cohorts, three patients achieved complete responses (CR) despite having relapsed following multiple prior treatments, including autologous CAR T therapies.

It also notes that patients treated in Cohort B, which includes lymphodepletion chemotherapy and interleukin-2 (IL-2), have shown particularly robust and durable responses. This includes responses extending beyond 90 and 120 days.

'A significant milestone'

The small cap ASX stock's managing director and CEO, Leslie Chong, was very pleased with the news. Ms Chong said:

Achieving first patient dosed for azer-cel in Australia represents a significant milestone for Imugene and for Australian patients battling this devastating disease. The trial's opening at RPAH in Sydney reflects our commitment to accelerating the development of innovative, off the shelf immunotherapies that have the potential to improve outcomes for patients with relapsed or refractory DLBCL. We are proud to bring this trial to Australia and look forward to expanding recruitment across multiple sites.

Despite today's gain, this small cap remains down by a disappointing 65% over the past 12 months.

Motley Fool contributor James Mickleboro 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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