Here’s why the Imugene share price is plunging 15% today

A female scientist sits at her desk looking stressed out while working in an AnteoTech lab.A female scientist sits at her desk looking stressed out while working in an AnteoTech lab.

The Imugene Limited (ASX: IMU) share price is deep in the red today following a shock announcement from the company.

At the time of writing, the immuno-oncology company’s shares are down 15% to 18.7 cents apiece.

It’s worth noting that Imugene shares have extended their losses to around 23% in the past month.

Imugene terminates supply contract

Investors are selling off Imugene shares after the company advised it has cancelled a supply agreement with MSD. The latter is a tradename of pharmaceutical giant Merck & Co.

While no reason was given for the termination, Imugene is continuing with its clinical trial of HER-Vaxx.

The primary objective of the study is to determine the safety and efficacy of HER-Vaxx in combination with anti-PD-1 therapy.

The immunotherapy will be used for treatment of gastric, breast, ovarian, lung, and pancreatic cancers.

HER-Vaxx is a B-cell immunotherapy that has been shown in studies to “stimulate a potent polyclonal antibody response to HER-2/neu, a well-known and validated cancer target”.

PD1-Vaxx has the advantage that it induces a unique polyclonal immune response that may increase response rates for therapy.

Imugene share price snapshot

Despite today’s fall, the Imugene share price has managed to remain 1.32% in the green over the past 12 months.

However, when looking year to date, its shares are down by 52%.

Imugene shares reached an all-time high of 62.5 cents in November, before shifting to a downhill trend.

Based on today’s price, Imugene has a market capitalisation of roughly $1.12 billion with approximately 5.85 billion shares on issue.

The post Here’s why the Imugene share price is plunging 15% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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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