Does IMU’s 2020 cancer ‘cure’ clinical trials hold exponential stock growth?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

Is there a cure for cancer? A question that instantly makes the scientific world wonder. However, creating a viable solution to cancer is difficult to prove. Because biotechnological and medical companies need proven data to illustrate how their vaccine/drug eradicates cancer.

Today we are discussing whether Imugene Ltd has investment potential. Imugene is an Australian biotechnological company that specialises in developing a range of Immuno oncology therapies. What is this area of medicine about? Immuno oncology therapy is where your body activities your immune system to target and eradicate cancer cells/tumours.

Imugene’s product pipeline includes CF33, PD1-Vaxx, B-Vaxx, and HER-Vaxxx.

CF33

CF33 is a type of an oncolytic virus. CF33 is genetically modified to replicate throughout the body, search only for and eradicate cancer cells.

PD1-Vaxx

Cancer cells can hide from your immune system through PDL1. PDL1 signals to the immune system not to break down cancer. PD1 Vaxx producers PD1 Vaxx antibodies in your immune system, which disallow cancer cells from telling your body not to attack.

HER2 B-cell Vaccines

Imugene focuses on preventing breast and gastric Cancer through HER-Vaxx and B-Vaxx.

HER-Vaxx produces antibodies in the patient’s immune system that eliminate cancer cells. Part 1 of the process involves the transition of the patient’s B cells into HER-Vaxx antibodies. Part 2 of the process involves the HER-Vaxx antibodies attaching to HER2 receptors. HER2 receptors encourage the spread of cancer. However, once the HER-Vaxx antibody attaches, the cancer cell cannot spread and is eventually broken down.

 

Key Price sensitive movements

IMU surged by 200% from 0.02 cents – 0.06 cents 6th – 18th November. IMU’s stock increased due to an accumulation of key ASX announcements.

 

 

HER-Vaxx

Key stock movement 1: Phase 1b HER-Vaxx trial data produces positive results – 8th July

Imugene announced that their HER-Vaxx vaccine produced gastric Cancer-fighting antibodies and positive response rates in three patients. Moreover, one patient receiving optimal dosage saw an 80% reduction in Tumour size. The HER-Vaxx data was presented at the European Society of Medical Oncology (ESMO) World Congress. In turn, the early data success proved of interest to the international oncology community. Instantly gaining traction from investors.

 

Key Stock movement 2: Imugene presents further comprehensive data on HER-Vaxx Phase 1b Study to ESMO – 1st October

Imugene showed to ESMO that HER-Vaxx resulted in a 100% objective response rate in three patients. Moreover, 5 out of 11 patients experienced tumour reduction because of effective HER2 antibodies. In turn, Imugene created a positive international presence. Which illustrated to the investment community the effectiveness and thus market opportunity of HER-Vaxx.

 

HER/B Vaxx & PD1 Vaxx

Key Stock Movement 1: Imugenes presents data on how PD1-Vaxx combined with HER/B-Vaxx successfully fights cancer growth – 1st October

Imugene presented to ESMO how, when combining the IMU’s HER2 Vaccines with PD1 Vaccines reduced cancer growth. Also, the vaccine combination was safe and did not exhibit toxicity. Thus, demonstrating how a combination of the vaccines is more effective than applying them in isolation. Consequently, the presentation boosted Imugenes profile in the medical community and clinical value to investors.

 

CF33

Key stock movement 1: Imugene acquires promising oncolytic virus CF33 – 15th July

Imugene announced its acquisition of both Vaxina Ltd and exclusive licenses to oncolytic virus technology CF33. The City of Hope, a world-renowned US independent research and treatment centre for cancer, developed CF33.

 

Key stock movement 2: Update of preliminary Clinical Development plan for CF33

CF33 has two different constructs. First is an armed construct, CheckVacc, with an immune checkpoint inhibitor. Whereas Vaxinia is an unarmed construct. Moreover, pre-clinical studies of CF33 conducted by Professor Fong have shown encouraging results in triple-negative breast cancer.

Fundamental financial negatives

Imugene holds significant upside potential in the biotechnological/pharmaceutical market. However, here at YIG, we like to provide young investors with a balanced perspective. So, let us examine the financial risks (negatives) of IMU.

Despite the positive stock movements above, there are areas of financial concern.

First is IMU’s increase in operational expenses from 5.78 million (June 2018) to 12.39 million (June 2019). Consequently, negative cash flow has increased as a result of the climb in operating expenses. Negative Cash flow has increased by 75.3% in the past year, sitting at -7.91 million (June 2019). The sharp increase in negative cash flow has shortened the time frame at which Imugene would run out of money.

Furthermore, despite the 124% increase in revenue (June 2018-2019), IMU is still unprofitable. Moreover, revenue is expected to decline to 3.28 million throughout the first half of 2020. The lack of profitability should instantly send alarm bells inside the smart investor.

 

Where to from now for investors

IMU is spending cash to further the development of all their vaccines. The clinical data for 2019 is promising. Moreover, HER-Vaxx (Phase 2 clinical trials), PD1 Vaxx (Phase 1 trials) and CF33 CheckVaxx (Phase 1 trials) are all set for 2020. Meaning that investors should not be discouraged by the negative cash flow if the 2020 trials produce successful results. Also, insiders are buying more shares than selling. Indicating a positive projection of IMU’s growth.

Furthermore, IMU received a 4.13 million R&D tax refund from the Australian government. In addition to the $564,173 US department defence grant. In turn, allowing IMU to support their clinical and commercial milestones.

Lastly, Imugene’s vaccine range is a result of over 12 years of research from the Medical University of Vienna. Further adding credibility to their vaccines, which could radically eliminate breast and gastric Cancer.

Check out other speculative Medicinal stocks, Novita Healthcare Ltd Paradigm BioPharmaceuticals (PAR), AusCann (AC8), and Cann Group Limited (CAN).

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Patrick McLoughlin, Associate of YIG

 

 

Cann Group losing value as bearish market trend sets in – How much more will investors take?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

Introduction Cann Group (CAN)

Cann Group (CAN) is an Australian medicinal cannabis company. Cann aims to research, cultivate, and manufacture a range for medicinal cannabis products for patients in Australia and Globally. The medicinal cannabis market does not have legal hurdles. The Therapeutic Goods Administration (TGA) allows cannabis for palliative care, chronic pain, nausea, vomiting, multiple sclerosis, and young adult epilepsy. Second, to that, cannabis can be legally prescribed to patients without relying on the black market.

Instead, the challenge is understanding the genetic makeup of cannabis mixtures for different medical conditions. Also, medical cannabis companies must have positive cash flow, healthy revenues, and profits to match their clinically validated products.

Key Stock movements between 2017-2018

During 2017 and most of 2018, Cann was financially and operationally progressive. If you were shareholder, you would have been happy as you watched the share price grow.

 

2017 started with CAN receiving their Research license (February) and Medicinal Cannabis Cultivation license (March). These licenses enabled CAN to cultivate cannabis for research purposes and produce Australian grown cannabis for medicinal purposes. Second to that, Canadian pot Giant Aurora Cannabis Incorporated took a 19.99% investment in CAN. The licenses plus the Aurora investment saw the share price surge from $0.58 (July) to $1.23 (August).

Moreover, in November, the stock price skyrocketed to $2.97. Primarily due to two reasons. Firstly, the Office of Drug Control (ODC) approved CAN’s license variations. In turn, CAN expanded its southern Victorian facility and extended cultivation, production, and research to their northern Victorian facility. Secondly, the ODC granted Cann an import license of cannabis. In turn, Cann can import Canadian cannabis to analyse its genetic makeup.

2018 followed a similar trend of surging stock prices. Cann’s commissioning of its Northern cultivation and R&D facility in Melbourne saw the share price rise to $3.56. Moreover, the federal government permitted medicinal cannabis producers to export to the global market. Consequently, Cann’s cultivation increased, providing shareholders with more confidence in financial return. Leading to Can’s all-time high of $3.70 on May 2018.

 

Overview of 2019 for Cann

Despite the early 2018 success, Cann’s share price has declined from mid-2018, throughout 2019, and continues to as we speak. Investors began to feel the bitter taste of capital losses.

 

Cann’s constructed a new cultivation plant in Mildura, Melbourne in early March. Second, to that, Cann Group established a five-year offtake agreement with Aurora. Within the agreement, Cann will supply dry flower, extracted resin, and medicinal cannabis to Aurora until 2024. Both events sparked a small surge in the share price.

 

Despite the temporary increase following the March events, the share price has declined throughout the rest of 2019. But why?

 

Firstly, Cann is not a profitable company. Profit is usually a must requirement for investors. Thus, making it no surprise when the company reports net profits losses throughout 2019 that its share price also declines.

 

Secondly, Cann reported an operating cash loss of $3.55 million from customer receipts for the Q3 2019. Additionally, Cann has spent 17.66 million into its Mildura facility. The cash loss and lacking profitability has created the excitement for Cann to diminish as the harsh financial reality sets in.

 

The future of Cann: Where to from now?

Despite the lack of profitability, investors should examine Cann’s revenue growth. Cann Group increased revenue by 2842% over the last year (Q2 2018- Q2 2019). Cann’s revenue growth is a positive result.

 

Cann’s operating cash loss might be a disappointment for some investors. However, Cann’s cash on hand ending Q3 2019 was $25.2 million, with an anticipated cash outflow of $20.32 million for operational costs. Thus, providing cash optimism. Moreover, according to Cann Group, once Mildura is finished Cann “is expected to generate annual revenues of approximately $220 million to $280 million based on dry cannabis flower”. Therefore, providing  possibly promising revenue returns.

 

Conclusion

The share price drop is not appealing to many investors and may have disappointed pre-existing investors. However, do not allow the decrease to overshadow the potential of Cann Group. The challenge in the medicinal cannabis industry is financial health and understanding the genetic makeup. The company has proper cash management for the future, indicating short term financial health. Secondly, Cann’s low amounts of debt will allow them to take on more debt in the future. Lastly, Cann’s link with Canadian producers Aurora and Anadia enables the company to understand the genetic makeup to treat different medical illnesses.

 

Watch out for financial results, updates and especially for the completion for the Mildura facility completion in 2020 (Q4). Cann holds huge potential in our opinion from extensive research but this will be determined in 2020.

Check out another medicinal cannabis stock AusCann (AC8) or even a potential Hemp stock Elixinol Global (EXL).

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Author: Written by associate of YIG, Patrick McLoughlin.

AusCann holds major potential in Australian medicinal market?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

Short Intro on medicinal cannabis

Medicinal cannabis, unlike HEMP and recreational, already has the legislative framework for pharmaceutical companies to prescribe to patients. Medicinal cannabis (CBD) is from both the Indica (High THC – narcotic effect) and the Sativa plant (Low to zero THC – no narcotic effect). CBD oil can significantly relieve the pain associated with multiple sclerosis, chronic pain, cancer, and even control epileptic fits.

Despite the legislation giving the green light and the community being on board with the health benefits, the medicinal cannabis market is still slow to take off. Primarily, because doctors need more evidence on the long-term side effects (such as liver inflammation) of CBD oil.

Intro on AusCann (AC8)

AusCann is an Australian pharmaceutical company that delivers high quality, economical, and clinically validated cannabinoid medicines to patients. AusCann aims to use medicinal cannabis to treat neuropathic and chronic pain.

Moreover, AusCann has a strategic business structure.  Primarily, because they cover all aspects of the medicinal cannabis supply chain. From cultivation and production, through to manufacturing and selling clinically validated cannabinoid medicines to patients. Now let’s look at AusCann’s stock price movements and projection for the future.

AusCann Stock movements

AusCann (ASX: AC8) is currently trading at 0.33 cents a share. Throughout January of 2018, AusCann’s share price surged from 0.80 cents to $1.85. The increase was in response to the Federal Government, allowing the exportation of manufactured cannabinoid medicines. AusCann saw the federal government’s decisions as a win.

Primarily, because the company already had the necessary licenses to grow and manufacture cannabis but was waiting for the legal green light. For example, AusCann established a Therapeutic Goods Administration (TGA) licensed manufacturing facility for cannabis via their partnership with Tasmanian Alkaloids. Also, AusCann’s share price spiked to the $1.74 (May 2018), after a falling period between February and April. The share price increased for two reasons. Firstly, the expansion of AusCann’s Canopy Growth partnership. Secondly, AusCann’s establishment of a cannabis scheme in Chile.

AusCann Stock Analysis

AusCann engaged in a strategic partnership with Canopy growth in 2016. Canopy is one of the largest producers of cannabis worldwide. AusCann benefits from Canopy’s expertise in the cultivation, manufacturing and exportation of CBD medicine. On the 24thApril 2018, AusCann received an import permit, allowing the company to import cannabis oils from Canopy Growth. This import permit had the following benefits

  1. AusCann instantly began to supply cannabis to the Australian market
  2. AusCann and Canopy started to develop a medical outreach program for key leading doctors in each pain area to provide them with the necessary training
  3. AusCann began supplying Spectrum cannabis (Canopies international medical brand) which increased market distribution in Australia

In November 2016, AusCann created a joint venture with Fundacion Daya to form DayCann. The purpose was for DayCann to become the leading medical cannabis group in Latin America. Then on 28thof March 2018, Daya, by working with the Chilean National Institute of Public Health (ISP), established a special access scheme (SAS).  SAS allows patients in Chile to access the first locally produced cannabis in the south American country. In turn, doctors could prescribe the medicine, and DayCann began to profit off the Chilean medical market.

Despite the stock price surging in 2018, AusCann has experienced a slight decrease and now consistent opening and closing points between 0.44 and 0.32 cents (February 8Th– October 4th, 2019). AusCann’s wait for clinically proven results on their hard shell capsules is the reason for the stock price levelling off.

AusCann’s future projections

AusCann does have upside potential in the medicinal cannabis market. However, market success will only occur if AusCann can clinically validate their hard shell capsules to market. Firstly, the Chronic pain market represents 3.24 million Australians. In which only 20,000 are currently accessing medicinal cannabis. This market gap provides AusCann with a desirable incentive to clinically validate their Cannabis-chronic pain capsules to capitalise on this profit opportunity.

Moreover, AusCann, through their partnerships, have established an effective business structure to deliver their cannabis medicine to market. Starting with the product development, as the company have access to Canopy Growth’s plant genetics. To the raw materials. Where AusCann has secured shipments of cannabinoid concentrate from MediPharm labs. In addition to the Dayacann venture that produces high-quality cannabis plants in Chile.

To then obtaining both Good Manufacturing Practice (GMP) and Therapeutic Good Administration (TGA) certifications to manufacture in Australia. To then having a distribution agreement with Australian Pharmaceutical Industries (API). Finally, AusCann has excellent educational programs and training for medical practitioners regarding cannabis use.

 

Despite AusCann’s establishment across the medicinal supply chain there are some fundamental negatives preventing market success. First and foremost is their lack of sales revenues. However, this harsh financial reality should come as no surprise. Primarily, because AusCann has no clinically validated products and is relatively speculative now. Second to that AusCann’s managing director Elaine Derby has resigned. Her resignation could raise a red flag, as she constantly campaigned the potential of AusCann to the media, suggesting the potential might not be as big now.

To conclude, AusCann is a penny stock with significant connection across the entire medicinal cannabis supply chain. However, until AusCann can clinically validate their hard-shell capsules to market, then their lack of sales revenue will continue to be a fundamental negative. Investors must watch the results of AusCann phase 1 clinical trial for hard shell capsules in 2020. Primarily, because a positive result would see the share price skyrocket.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support however individual information should be conducted before investing.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Associate, Patrick McLoughlin

Paradigm Bio-Pharmaceutical (ASX) with major stock movement- how long will it hold ?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

Since launching , YIG has published articles relating to commodities (Cobalt) and Tech companies. Now, YIG has a new and exciting list of companies that will be assessed, to give our members an advantage in the market. We are talking about the Pharmaceutical and Biotechnological stock industry . Today we discuss the potential future of Paradigm Bio-Pharmaceutical (PAR).

PAR focuses on repurposing old drugs, such as Pentosan polysulfate sodium (PPS) to improve medical treatment for osteoarthritis (OA). The complexity, financial investment, and timeline behind approving repurposed drugs are substantially shorter than new medicines. Primarily, because of the drugs historical safety, existing manufacturing processes, and market results.

Repurposing drugs involves the following process:

Stage 1: Researchers propose a repurposed drug

Stage 2: Preclinical research

  • Researchers obtain funding to validate that their repurposed drug will satisfy an unmet medical need

Stage 3: Clinical research

  • The drug is tested on humans to measure its safety

Stage 4: FDA Approval

  • FDA approval means the drug is safe and effective in treating the unmet medical need

PAR is currently at $2.52 per share (24/09/2019). Around the same time, last year PAR was trading at 0.88 cents a share (25/09/2019). Instead of just looking at the increase over the year, it is more important to understand why the be stock has spiked at certain points within the year .

Google 25/09/19 Paradigm Share Price

During May 2019 PAR launched a phased 2 clinical trial of their OA drug Zilosul. Of the 205 patients treated, PAR found that Zilosul reduced pain by over 50% for patients with knee OA. Paradigms promising results provided real-world evidence that Zilosul is a safe and effective drug that reduces OA pain. In turn, these clinical results increased investor confidence in PAR, causing the share price to increase.

Furthermore, in August, PAR’s clinical trial demonstrated how Zilosul could also slow cartilage degradation. What is cartilage degradation? Well, it is when the cushiony lubricant between bones (cartilage) wears away, causing inflammation as the bones directly contact. Cartilage degradation is an effect of osteoarthritis. Therefore, these results illustrated how Zilosul not only reduces pain for OA patients but also protects cartilage from progressive deterioration.

Just this month, Zilosul received clearance from the US Food and Drug Administration (FDA). FDA clearance is a critical hurdle to overcome in the process of repurposing a drug. Primarily, because FDA clearance validates both drug safety and that it successfully responds to the unmet medical need. The unmet medical need is the unavailability of registered treatments to reduce osteoarthritis .Therefore, FDA clearance on Zilosul increased investor confidence that Paradigm, will be able to bring the drug to the market. In turn, the FDA clearance increased both the demand for the PAR and the share price.

So, where to from now?

The increase in share price (2018-2019) was a mirrored response to the significant medical progress of Zilosul. However, now that the FDA approval is still in a 30-day review, we can expect some levelling off or slight decrease in the share price. PAR did report a $2.45 million operating cash loss for 2ndquarter of 2019. However, high costs and minimal cash is the nature of this industry as the development of the drug initially requires significant capital outlay.

If Paradigm can bring Zilosul to market, then investors could instantly see some eye watering returns. Primarily because the OA market represents 13% of the world’s population with an American market size of $5 billion US a year.

Furthermore, Paradigms main OA competitor Tanezumab, has experienced mixed results from their clinical trials. Tanezumab’s delay could allow Paradigm to gain the first market foothold.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Patrick McLoughlin, Asscoiate of YIG