Immuron’s valuation reiterated by Pitt Street Research following progress in clinical trials

Pitt Street Research has reiterated its valuation of Immuron Ltd (NASDAQ:IMRN, ASX:IMC) after the biotechnology company made strong progress in recent months.

The research firm has a valuation of A$0.25 per share for Immuron in a base case scenario and A$0.35 per share in an optimistic (bull) case scenario.

Pitt Street noted several recent highlights achieved by Immuron in its research note.

Advancing two key clinical studies

In October 2023, Immuron announced the second cohort of 34 participants in the clinical trial for evaluation of efficacy of Travelan to prevent moderate to severe diarrhoea, noted Pitt Street.

The Phase 2 clinical study is designed to evaluate the protective efficacy of the new product compared to a placebo in a controlled human infection model (CHIM).

The readouts of this study will likely be reported by the second half of 2024 and favourable outcomes will position the company well for Phase 3.

In addition, in December 2023, the US Naval Medical Research Command (NMRC) completed the in-patient phase of the Campylobacter Challenge clinical study, in collaboration with Immuron.

The NMRC has prioritised the clinical development of this study for the evaluation of efficacy of a new therapeutic product to prevent infectious diarrhoea caused by Campylobacter. The headline results from the study are due to be released by mid-2024.

Top-line growth in H1 FY24

Pitt Street said that it is pleased with Immuron's top-line growth in H1 FY24.

Immuron's sales of Travelan in Australia increased from A$0.3m in H1 FY23 to A$1.9m in H1 FY24. In the US, Travelan’s sales grew from A$0.3m in H1 FY23 to A$0.49m in H1 FY24. This is a testimonial to the strong potential of Immuron’s assets.

Clear plans for four clinical-stage assets

Pitt Street noted that Immuron has clear plans for its four clinical-stage assets and there are milestones for investors to look forward in the coming months.

For IMM-124E, the company is pursuing a regulatory pathway to license Travelan against traveller’s diarrhoea. For IMM-529, the company is planning a pre-IND submission to the FDA during 2024.

For CampETEC, Immuron is planning to start two Phase 2 trials, one in Campylobacter and another in (ETEC).