The Immutep Ltd (ASX: IMM) share price is in the red today after the company released its latest quarterly update.
At the time of writing, the Immutep share price is down 2.95% to 42.7 cents.
That short-term dip comes despite a solid year for investors. Immutep shares are still up almost 30% over the past 12 months, as the company continues to make progress across its drug development programs.
So, why is the share price falling today?
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A big partnership deal moves closer to cash
The biggest news from the quarter was Immutep's new partnership with global drug company, Dr Reddy's Laboratories.
Under the deal, Dr Reddy's will develop and sell Immutep's lead cancer drug, eftilagimod alfa (efti), in most global markets. Immutep will retain full rights in the US, Europe, Japan, and Greater China.
In return, Immutep received an upfront payment of about $30 million in January. The company could also receive up to $528 million in future milestone payments if the drug is successfully developed and approved. Immutep would also earn royalties on any future sales.
Cancer trials continue to show progress
Immutep's main focus remains its late-stage lung cancer trial, which is testing efti alongside Keytruda and chemotherapy.
The company said patient enrolment continues at a steady pace, with more than 38% of the required patients now enrolled across sites in 27 countries. Management said the trial remains on track.
Earlier-stage trials have also delivered encouraging results. In one lung cancer study, response rates were higher than typically seen with standard treatments, even in harder-to-treat patients.
Immutep also reported positive data from a soft tissue sarcoma trial, where the drug showed signs of shrinking tumours and activating the immune system.
Outside of cancer, the company shared early positive results from a new autoimmune disease program, which could open the door to future growth.
A strong cash position supports the next phase
Looking at the numbers, Immutep finished the quarter with $99.1 million in cash and term deposits.
After receiving the upfront payment from Dr Reddy's in January, that figure increased to around $129.3 million.
Management said this gives the company enough funding to operate well into the second quarter of FY27, even before factoring in any future milestone payments.
Immutep spent $9.4 million on operations during the quarter, mainly to support its clinical trials.
Why the share price dipped anyway
Expectations were already high following Immutep's recent run.
With no major new trial results released on the day, some investors appear to have taken profits, pushing the share price slightly lower.
Even so, Immutep's update showed steady progress, a major commercial partnership, and a strong cash position.
