Imugene receives core Japanese patent in oncology market

Imugene (ASX: IMU) has received a Japanese patent which will protect the company’s oncolytic virotherapy CF33. This includes both VAXINIA (CF33-hNIS) and CHECKVacc (CF33-hNIS-antiPDL1).

The patent protects the method of composition and method of use of Imugene’s licensed oncolytic virotherapy until 2037.

CF33 is a chimeric vaccinia poxvirus from the lab of inventor Professor Yuman Fong.

According to the company, Fong is a noted expert in the oncolytic virus (OV) field.

Selectively kills tumour cells

Oncolytic viruses are designed to selectively kill tumour cells and activate the immune system against cancer cells. They have the potential to improve clinical response and patient survival rates. 

Managing Director and CEO Leslie Chong commented:

“Imugene receiving this patent grant for the CF33 family of oncolytic viruses from the Japanese patent office is a crucial step forward and is the first of many expected patent grants from multiple countries.”

“The start of our VAXINIA and CHECKVacc OV studies are a significant milestone for clinicians treating patients faced with the challenge of solid tumour cancers.”

How did the news impact Imugene’s stock?

Despite today’s news, the company failed to hold onto Friday’s gains. 

On Friday, the company jumped almost 6% after confirming a clinical trial supply agreement with Roche, a Swiss multinational healthcare company. The trial will test the company’s PD1-Vaxx in combination with atezolizumab, to see if the product could be effective for lung cancer treatment.

At the time of writing, Imugene has fallen -4.76% today.

Since soaring from $0.11 at the start of January 2021 to an all-time high of $0.59 on 5 November 2021, the company’s share price has dropped about 50% over the last few months. 

The decline has likely been weighed by increasing downward pressure on growth stocks, thanks to the US Federal Reserve’s economic tapering measures.

While there is a Strong Buy on Imugene, the rating is based on coverage from only two brokers.

Based on Morningstar's fair value of $0.59, the stock looks undervalued (25/11/21).

Imugene's share price over the last year.