Stocks’ Details
Imugene Limited
Phase 1 Clinical Trials pf PD1-Vaxx: Imugene Limited (ASX: IMU) is engaged in the development of numerous new and novel immunotherapies which seek to activate the immune system of cancer patients to treat and eradicate tumours. The market capitalisation of the company stood at ~$551.73 million as on 1st December 2020. Recently, the company notified the market that it has dosed the first patient in Phase I clinical trial of its checkpoint immunotherapy candidate, PD1-Vaxx. The company added that the start of the study happens to be a significant milestone for the company and clinicians treating Australians suffering from lung cancer.
September 2020 Quarter Highlights: For the quarter ended 30th September 2020, the company reported research and development expenditure of $4.2 million. In addition, the company also received three ethics approvals from Chris O’Brien Lifehouse, Macquarie University and Cabrini Hospital to commence the phase I clinical trial of new cancer immunotherapy PD1-Vaxx in Australia. The net cash outflow for operating activities stood at $4.94 million. During FY20, the company reported loss amounting to $10,507,999, up from the loss of $7,775,360 in FY19, mainly because of a significant rise in the clinical trial and research activities undertaken by the group.
Cash Flow (Source: Company Reports)
Outlook: Going forward, the company is likely to witness a rise in expenditures as the business continues to progress four clinical programs.
Stock Recommendation: The company ended the September 2020 quarter with a cash balance of $26.6 million. In the last one and three months, the stock of IMU has moved up by 132.14% and 140.74%, respectively. As a result, the stock is trading towards its 52-week high of $0.140, demonstrating that most of the positive factors have been discounted at current trading levels. In addition, the stock is trading at a price to book value multiple of 9.0x as compared to the industry median (Biotechnology & Medical Research) of 6.8x on TTM basis. On a technical front, the stock of IMU has a support level of ~$0.098 and a resistance level of ~$0.139. Considering the significant rise in the stock price over last one and three months period, current trading levels, and TTM Valuation, we give an “Expensive” rating on the stock at the current market price of $0.130 per share, up by 8.333% on 1st December 2020, owing to the release in relation to phase 1 clinical trial of PD1-Vaxx.
Imagion Biosystems Limited
Completion of Placement: Imagion Biosystems Limited (ASX: IBX) is engaged in the development of a new non-radioactive and safe diagnostic imaging technology. The market capitalisation of the company stood at $129.09 million as on 1st December 2020. On 23rd November 2020, the company wrapped an oversubscribed placement and raised $6 million. The placement experienced strong support from institutional investors. The company would use the funds to ramp up its development plans as well as for the beginning of the investigation in manufacturing scale up of its nanoparticle technology.
Financial Highlights: During the September quarter (Q3 FY20), the company raised $4.7 million through placement, which was supported by existing domestic and overseas institutional and sophisticated shareholders. The company recorded cash outflow from operating activities of $1.8 million. For the half-year ended 30th June 2020, IBX recorded revenue and other income of $117,093 as compared to $300,674 in 1H FY19. In addition, loss for the half-year amounted to $1,705,332 against $1,035,084 in 1H FY19.
Key Financials (Source: Company Reports)
Outlook: The company has attained significant progress in commencing the first-in-human study for HER2, and it is on track to track to commence the study in Q4 FY20.
Stock Recommendation: As on 30th September 2020, the cash balance of the company increased to $8.3 million. The stock of IBX has moved up by 104.54% and 39.17% in the last one and three months, respectively. The 52-week low-high range for the stock stands at $0.009 - $0.170, respectively. On a technical front, the stock of IBX has a support level of ~$0.11 and a resistance level of ~$0.141. Thus, considering the losses in business, fall in revenue and steep price movement in the past few months, we advise the investors to avoid the stock at the current market price of $0.130 per share on 1st December 2020.
MyFiziq Limited
Signing of Binding Term Sheet: MyFiziq Limited (ASX: MYQ) is involved in the development and marketing of a mobile application for use in the fitness industry. The market capitalisation of the company stood at ~$114.32 million as on 1st December 2020. Recently, the company inked a binding term sheet with The Original Fit Factory Ltd for the integration of its body tracking application into The Original Fit Factory’s B2C and white label B2B offerings. As per the terms of the binding terms sheet, both the parties would work together to deliver a market ready integration into The Original Fit Factory platform by the 31 January 2021. During September 2020 quarter, the company reported cash receipts from customers of $659k, reflecting a rise of 1,634% against September 2019 quarter. In addition, the net cash outflow from the operating activities stood at $310k against $1,145k in September 2019 quarter.
Cash Receipts and Cash Payments Trendline (Source: Company Reports)
Outlook: The company is expecting to launch several apps by the end of the calendar year 2020. These include Biomorphik, McGregor FAST and Boditrax UK.
Stock Details: On 1st December 2020, the securities of the company went into a trading halt as the company is seeking to release an announcement in relation to a material commercial agreement with a global technology partner in a new field of on device diagnostics. The securities of the company will be in a trading halt until the earlier of the commencement of normal trading on 3rd December 2020 or when the announcement is released to the market. The stock last traded at $0.950.
Comparative Price Chart (Source: Refinitiv, Thomson Reuters)
Disclosure: Imugene Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.
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