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HER-Vaxx Phase II underway

Imugene 15 April 2019 Update
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Imugene

HER-Vaxx Phase II underway

AACR clinical update

Pharma & biotech

15 April 2019

Price

A$0.017

Market cap

A$61m

US$0.76/A$

Net cash (A$m) at 31 December 2018

24.1

Shares in issue

3,609.8m

Free float

69%

Code

IMU

Primary exchange

ASX

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(15.0)

(15.0)

(43.0)

Rel (local)

(16.2)

(21.9)

(46.9)

52-week high/low

A$0.04

A$0.02

Business description

Imugene is developing B-cell vaccines that aim to induce polyclonal antibody responses against important cancer targets, as an alternative to monoclonal antibodies. HER-Vaxx, a proprietary HER2 +ve cancer vaccine, is in a Phase Ib dose-finding study ahead of a gastric cancer Phase II.

Next events

Updates on HER-Vaxx Phase II

2019

Submit KEY-Vaxx IND

Q319

Initiate KEY-Vaxx Phase I

Q419

Analysts

Dennis Hulme PhD

+61 (0)2 8249 8345

John Savin PhD

+44 (0)20 3077 5735

Imugene is a research client of Edison Investment Research Limited

Imugene presented positive clinical Phase Ib data for its HER-Vaxx B-cell vaccine at American Association for Cancer Research (AACR) conference earlier this month. Vaccination successfully broke immune tolerance and stimulated production of HER2-specific antibodies in a dose-dependent fashion; the antibodies inhibited a key component of HER2 signalling. Imugene has initiated a randomised Phase II study of HER-Vaxx in gastric cancer with interim results expected in 2020. It is on track to initiate a Phase I study of KEY-Vaxx, a B-cell vaccine that aims to induce production of antibodies that block PD-1 signalling, in Q419. We increase our valuation to A$159m or 4.4 cents per share.

Year end

Revenue (A$m)

PBT*
(A$m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

06/17

1.2

(2.5)

(0.1)

0.0

N/A

N/A

06/18

1.8

(3.9)

(0.1)

0.0

N/A

N/A

06/19e

2.4

(6.1)

(0.2)

0.0

N/A

N/A

06/20e

3.3

(8.2)

(0.2)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding exceptional items.

HER-Vaxx Phase Ib clinical data

Imugene’s presentation at the AACR conference showed that its HER-Vaxx B-cell vaccine broke immune tolerance and stimulated production of polyclonal antibodies specific for the self-HER2 molecule in a dose-dependent fashion. The antibodies were shown to be biologically active, inhibiting HER2 phosphorylation, a key step in HER2 signalling. Even though the subjects in the study received standard chemotherapy treatment in addition to HER-Vaxx, in our view it is very encouraging that there was a strong positive correlation between HER2-specific antibody levels and tumour responses in the highest dose cohort.

HER-Vaxx gastric cancer Phase II underway

Imugene initiated a randomised Phase II study of HER-Vaxx in March. Patients with HER2-positive metastatic gastric cancer will be randomised into two arms of either HER-Vaxx plus standard chemotherapy or standard chemotherapy alone. Interim study data are expected in 2020.

KEY-Vaxx Phase I to commence in Q419

The company had a productive pre-IND meeting with the FDA in February and aims to initiate a Phase I study of its KEY-Vaxx PD-1 B-cell vaccine in Q419. KEY-Vaxx aims to produce an anticancer effect similar to immune checkpoint inhibitor such as Keytruda and Opdivo. A successful clinical study of KEY-Vaxx with evidence of efficacy would likely attract considerable interest from potential partners.

Valuation: A$159m or 4.4 cents per share

We value Imugene at A$159m (vs A$147m) or 4.4 cents/share (vs 4.1 cents/share), including milestones and royalties for HER-Vaxx plus an indicative valuation of KEY-Vaxx. With cash of A$24m at 31 December 2018, it is funded beyond our FY20 forecast horizon.

HER-Vaxx Phase Ib results at AACR

New data on the Phase Ib study of Imugene’s HER-Vaxx B cell cancer vaccine were presented at the AACR 2019 Annual Meeting in Atlanta, Georgia on 2 April by Professor Ursula Wiedermann from the Medical University Vienna, the lead-inventor of HER-Vaxx and member of Imugene’s Scientific Advisory Board.

HER-Vaxx aims to replicate the efficacy of approved monoclonal antibodies that target HER2, such as Herceptin (trastuzumab, Roche), Perjeta (pertuzumab, Roche) and Kadcyla (trastuzumab emtansine, Roche). Herceptin is used in breast and gastric cancers. Herceptin in combination with chemotherapy adds 2.7 months to median survival in gastric cancer.

In the HER-Vaxx Phase Ib study, doses of 10, 30 and 50µg were tested in three cohorts of three to five patients with HER2-positive gastric cancer. Each patient received three injections of the selected dose of HER-Vaxx. Patients were treated with standard chemotherapy in combination with HER-Vaxx; the first HER-Vaxx injection was administered two weeks before the start of chemotherapy and the second and third were administered during the first two cycles of chemotherapy, as shown in Exhibit 1.

Exhibit 1: Timeline for HER-Vaxx Phase 1b dose-escalation study

Source: Imugene. Notes: DP: dose period; CC: chemotherapy cycle; Vac: Imu-131 (HER-Vaxx) administration; EOTV: end of treatment visit; SLTM: start of long-term maintenance.

Exhibit 2 shows the HER-Vaxx vaccinations stimulated increased production of HER2-specific antibodies in all but one subject; that subject received the lowest dose of HER-Vaxx. There was a clear dose response, in that higher HER2-specific antibody levels were observed in the 30µg and 50µg cohorts than were seen in the 10µg cohort. In the 50µg cohort, two of the three subjects recorded approximately 50-fold increases in HER2-specfic antibody levels.

Exhibit 2: Higher HER2-specific antibody levels in the higher HER-Vaxx dose cohorts

Source: Imugene. Notes: HER2-specific IgG antibodies measured in sera obtained at day 0, 56 and 98; concentrations in ng/ml calculated from a Herceptin Standard Curve Dilution.

Tumour shrinkage and an apparent dose response

Exhibit 3 shows that 11 subjects were evaluable for tumour responses. One had no evaluable target lesions, one subject showed a complete response, five showed partial responses and four showed stable disease.

It is not possible to draw any definitive conclusions about the efficacy of HER-Vaxx from the study, because patients also received concurrent chemotherapy. However, looking across the three cohorts there appears to be a dose response, with greater tumour growth in the low-dose cohorts and greater tumour shrinkage in the high-dose cohort.

Exhibit 3: Change in tumour size in three HER-Vaxx cohorts

mm

Source: Imugene. Notes: d56: day 56; d98: day 98; d182: day 182; the y-axis shows change in tumour size (sum of diameters) in mm.

Patient HER2-specific antibodies inhibited HER2 phosphorylation

In an important finding, the HER2-specific antibodies from one of the subjects in the high-dose cohort were effective at inhibiting HER2 phosphorylation. Exhibit 4 shows that when HER2-expressing gastric cancer cells were incubated with serum samples from subject TW02 004, serum from day 56 post vaccination inhibited phosphorylation by 18% compared to pre-vaccination serum. While the degree of inhibition was less than the 64% observed with Herceptin, it is evidence that the HER2-specific antibodies induced by the HER-Vaxx vaccinations are having the desired biological effect. HER2 phosphorylation is a key step in the HER2 signalling pathway, and an ability to block HER2 phosphorylation implies an ability to block HER2 signalling.

Tumour responses correlated with antibodies in high dose cohort

Exhibit 5 shows that among the three evaluable subjects in cohort three (50µg dose), the reduction of tumour size in millimetres was very strongly correlated with serum HER2 antibody levels (r2=1.00). This analysis is based on the change in tumour size in millimetres, but tumour responses are more commonly assessed based on the percentage change in tumour size from baseline. Using this criterion, the two subjects in cohort three with partial responses both had similar percentage changes in tumour size (reductions of 45% and 41% respectively).

We have independently performed a similar correlation analysis of the standard tumour response criterion of percentage change in tumour size from baseline, using antibody concentrations read off the graph shown in Exhibit 5. While we estimated the correlation using this response criterion to be somewhat lower (r2=0.79 vs r2=1.00), this would still be considered to be a strong positive correlation between tumour shrinkage and HER2 antibody levels.

The authors of the poster presentation commented that there was only a moderate correlation between antibody levels and tumour responses in cohort two.

Exhibit 4: Serum from a cohort three subject inhibited HER2 phosphorylation

Exhibit 5: Change in tumour size in cohort three was correlated with HER2 antibody levels

Source: Imugene

Source: Imugene. Notes: HER2 antibody titres and tumour size measured at day 56.

Exhibit 4: Serum from a cohort three subject inhibited HER2 phosphorylation

Source: Imugene

Exhibit 5: Change in tumour size in cohort three was correlated with HER2 antibody levels

Source: Imugene. Notes: HER2 antibody titres and tumour size measured at day 56.

Lower levels of anti-HER2 antibodies may be offset by higher potency of antibodies induced by HER-Vaxx

We can see from Exhibit 2 on page 2 that the subjects with the highest HER2-specific antibody production reported levels in the range of about 1,000–5,000 ng/ml (or 1–5 µg/ml). If we compare these levels to the steady-state levels in the bloodstream reported from the Phase III study of the marketed monoclonal antibody Herceptin in gastric cancer patients1 (average minimum concentration 33ug/ml and average maximum of 131ug/ml) we can see that the HER2-specific antibody concentrations in the HER-Vaxx high responders were around one to two orders of magnitude lower than those reported in the Herceptin Phase III study.

However, evidence from previous preclinical studies suggests that these lower HER2 specific antibody levels in patients following HER-Vaxx vaccination may be offset, at least in part, by higher potency.

Data from a previous preclinical study showed that polyclonal antibodies produced following vaccination with HER-Vaxx were more potent than Herceptin at inhibiting the growth of breast cancer cells. Exhibit 6 shows that less than half the dose of HER-Vaxx-stimulated antibodies was required to inhibit cancer cell growth to the same degree as Herceptin; 18.75µg of polyclonal antibodies isolated from the serum of rabbits that had been immunised with HER-Vaxx inhibited the growth of breast cancer cells to the same degree (39%) as 50µg of the Herceptin monoclonal antibody.

Exhibit 6: HER-Vaxx antibodies are more potent than Herceptin at inhibiting breast cancer cell growth in vitro

50 µg 18.75 µg 37.5 µg 75 µg
Herceptin dose HER-Vaxx dose

% cell growth inhibition

Source: Company announcement. Note: Chart reproduced by Imugene from patent EP 1 844 788 A1, fig 7&8. Data previously published in Wagner et al, Breast Cancer Res Treat (2007) 106:29–38.

Open label Phase II HER-Vaxx study underway

The first patient was dosed in Imugene’s open-label Phase II study of HER-Vaxx in gastric cancer in March. The Phase II study will measure the efficacy, safety and immune response in 68 patients with metastatic gastric cancer overexpressing the HER2 protein (clinical trials.gov ID: NCT02795988). Patients will be randomised into two arms of either HER-Vaxx plus standard chemotherapy or standard chemotherapy alone. The primary endpoint is overall survival, with progression-free survival as a secondary endpoint.

The study will enrol subjects at multiple centres across Asia, Eastern Europe and India. In these countries there is a higher incidence of gastric cancer and patients have difficulty accessing approved anti-HER2 antibody treatment such as Herceptin and Perjeta. The company aims to complete the study in 2020.

Guidance for KEY-Vaxx clinical development from FDA

KEY-Vaxx is a PD-1 B-cell vaccine that Imugene in-licensed from Ohio State University (OSU) in 2018. It aims to induce the body to produce polyclonal antibodies that block PD-1 signalling and thus produce an anticancer effect similar to Keytruda, Opdivo and the other immune checkpoint inhibitor monoclonal antibodies that are transforming treatment of a range of cancers.

Imugene had a productive pre-IND meeting with the FDA in February, which provided a clear roadmap for a successful IND submission and subsequent clinical development of KEY-Vaxx.

The meeting was aimed at obtaining guidance as to the preclinical, chemistry, manufacturing and controls and the Phase I clinical development plan to be included in the IND submission for KEY-Vaxx.

The researchers from the KEY-Vaxx programme at OSU presented a poster (Abstract 1453) summarising the preclinical development of KEY-Vaxx at AACR earlier this month. We previously summarised the key features of the KEY-Vaxx preclinical studies, including impressive efficacy in an industry-recognized colon cancer mouse model, in our report published in August 2018. In that study, KEY-Vaxx inhibited cancer growth to a greater extent that the gold-standard mouse anti-PD-1 antibody that was used in preclinical testing of Keytruda and Opdivo. The inhibition reached 90% when KEY-Vaxx was combined with a HER2 B-cell vaccine.

Imugene plans to commence a Phase I study of KEY-Vaxx in Q419. The company has mentioned non-small cell lung cancer as one of the clinical indications under consideration for KEY-Vaxx.

In-house PD-1 mimotope validates KEY-Vaxx approach

Imugene had already commenced an in-house programme to develop a PD-1 B cell mimotope vaccine before it in-licensed KEY-Vaxx from OSU. The programme was led by Professor Wiedermann at the Medical University Vienna. Imugene, together with the Medical University Vienna, presented findings that provide proof of concept and validation for KEY-Vaxx in a poster at AACR on 3 April.

As part of a proof of concept study, the researchers designed a B-cell vaccine (mimotope) that was specific for the mouse PD-1 molecule (vs KEY-Vaxx, which is specific for the human PD-1 molecule).

Firstly, they demonstrated that antibodies produced when rabbits were vaccinated with the mouse PD1 mimotope were as effective as an industry standard mouse anti-PD1 monoclonal antibody at inhibiting tumour growth in mice (Exhibit 7).

Exhibit 7: Antibodies against mouse PD1 mimotope strongly inhibit tumour growth

Tumour weight (mg)

Source: Imugene. Notes: JT-mPD1 rabbit IgG: antibodies produced when rabbits were vaccinated with the mouse PD1 mimotope; Anti-mPD1 mAb: mouse anti-PD1 monoclonal antibody; PBS: saline control.

Secondly, they showed that active immunisation of mice with the mouse PD1 mimotope inhibited breast cancer tumour growth compared to injection with a saline control (Exhibit 8). The immunised mice also had higher levels of PD1-expressing immune cells in the tumours.

Exhibit 8: Vaccination with mouse PD1 mimotope inhibited tumour growth

Tumour weight (mg)

Source: Imugene. Note: JT-mPD1: mouse PD1 mimotope; PBS: saline control.

Taken together, these two studies provide proof of concept and validation for the strategy underpinning the KEY-Vaxx human PD-1 B-cell cancer vaccine.

US$7bn HER2 deal for Daiichi Sankyo

In March 2019 AstraZeneca signed a US$6.85bn co-development deal with Daiichi Sankyo for trastuzumab deruxtecan (DS-8201). The terms include US$1.35bn upfront and US$5.5bn of potential milestone payments.

DS-8201 is an antibody-drug conjugate of Herceptin linked to a topoisomerase I inhibitor payload. It reported impressive results in a Phase I study in patients with a range of HER2 positive tumours that had failed treatment with Herceptin or Kadcyla. In the Phase I study in HER2, positive solid tumours including breast and gastric cancer the overall response rate (ORR) was 51% (81/160), with the highest ORR of 64% achieved in HER2-positive breast cancer.

The deal highlights the ongoing interest from big pharma in drugs that can successfully target HER2

B-cell vaccine clinical development timeline

Imugene’s ongoing clinical development programme is focused on HER-Vaxx and KEY-Vaxx (Exhibit 9). It commenced the Phase II study of HER-Vaxx in gastric cancer in March and aims to complete the study in 2020. It aims to submit an FDA IND for KEY-Vaxx in Q319 and commence a Phase I study in Q419.

These two programmes will provide initial clinical proof of concept for its B-cell vaccine platform, as well as being promising potential therapeutics in their own right.

Imugene has also in-licensed the B-Vaxx HER-2 B cell vaccine from OSU. B-Vaxx has completed a Phase I study and is currently enrolling patients into a Phase II study. This is fully funded by OSU.

Imugene is planning to conduct several preclinical studies to investigate combinations between its existing pipeline products and between its pipeline and other marketed therapies. However, we do not expect any decision to be made regarding clinical development of a combination until after initial clinical data from KEY-Vaxx monotherapy studies are available.

Exhibit 9: Clinical development and milestones

Source: Imugene

Valuation

Our valuation of Imugene has increased to A$159m (from A$147m). We last published on Imugene in August 2018. We have rolled our model forward in time and included the FY19e net cash balance in our valuation (we previously used FY18e cash). Our other valuation assumptions remain unchanged. We have incorporated the FY18 financial results, but our financial forecasts are broadly unchanged.

Our valuation is based on a risk-adjusted discounted cash flow model, which includes net cash plus our estimates of the future milestone payments and royalty streams for HER-Vaxx and KEY-Vaxx. We have extended our cash flow forecasts out to 2039 (supported by 12 years of biological market exclusivity in the US and 10 years in Europe) but have not included any terminal valuation. We assume that HER-Vaxx sales decline at 20% per year after market exclusivity expires in 2037. We assume a long-term exchange rate of US$0.76/A$ and apply a 12.5% discount rate.

Our valuation is equal to 4.4 cents per share (vs 4.1 cents per share) on an undiluted basis and 4.2 cents per share (vs 4.0 cents per share) after diluting for the 624m options on issue (exercise prices range from 1.25 to 4.5 cents).

Our valuation of the HER2 B-cell vaccine programmes is based on HER-Vaxx in the gastric cancer indication, which is the subject of the randomised Phase II trial that commenced in Q119. The detailed assumptions for individual gastric cancer markets are shown in Exhibit 11.

For our valuation of KEY-Vaxx we assume an indicative present-day sales potential of US$1,000m as the lead indication is not yet known. Given that the two leading anti-PD-1 drugs, Keytruda and Opdivo, both achieved sales of over US$6.5bn in 2018, we believe this is a conservative estimate of the sales that KEY-Vaxx could potentially achieve if it is shown to be safe and effective.

Exhibits 10 and 11 show our market assumptions for HER-Vaxx and KEY-Vaxx and the rNPV for each product. We have offset the risk-adjusted trial cost against revenue for each indication.

Exhibit 10: Imugene sum-of-the-parts DCF

 

Base case likelihood (%)

rNPV (A$m)

rNPV/sh (A$)

Assumptions

HER-Vaxx in gastric cancer

20%

74.5

$0.021

Present-day sales potential in gastric cancer US$649m, growing to global peak sales of US$930m in 2030, assuming 3% market growth rate. Detailed market assumptions shown in Exhibit 9, which assumes 20% of gastric cancers are HER2+, 75% of which are eligible for HER-Vaxx therapy; market launch 2025; assume receives 15% gross royalty, pays 18% of royalty and milestone income to Biolife until 2026.
R&D cost: A$8m for Phase II, then out-license.

KEY-Vaxx indicative valuation

10%

73.2

$0.020

Present-day indicative sales potential US$1,000m, growing to global peak sales of US$1,510m in 2032, assuming 3% market growth rate; market launch 2027; assume net 12% royalty after pay-aways to OSU.
R&D cost: A$10m to FY21, then out-license.

SG&A

-9.2

-$0.003

Portfolio total

 

138.4

$0.038

FY19e cash (30 June 2019)

20.1

$0.006

Enterprise total

 

158.6

$0.044

Source: Edison Investment Research. Note: NPV adjusted for tax at an effective tax rate of 25%. We assume the addressable markets grow at 3% per year.

Exhibit 11: Present-day market opportunity for HER-Vaxx in gastric cancer (in 2018 dollars)

Market (US$ unless otherwise stated)

Cases

Eligible

Uptake (%)

Number treated

Price (US$000s)

Sales potential in 2018 (US$m)

US

21,200

3,180

30%

954

50.0

48

Japan

107,900

16,185

30%

4,856

65.0

316

Western EU

62,240

9,336

40%

3,734

40.0

149

Eastern EU

18,360

2,754

25%

689

25.0

17

Eastern Europe and Russia

59,000

8,850

25%

2,213

25.0

55

China

405,000

60,750

5%

3,038

12.5

38

Other E Asia

40,000

6,000

5%

300

12.5

4

Other

238,300

35,745

5%

1,787

12.5

22

Total

952,000

142,800

17,570

649

Source: Market data references2,3 and Edison Investment Research

  Jemal, A. et al. Global cancer statistics. CA. Cancer J. Clin. 61, 69–90.

  Ferlay, J. et al. Cancer incidence and mortality patterns in Europe. Eur. J. Cancer 49, 1374–403 (2013).

We assume upfront/milestones of US$84m/US$520m for a licence deal for Imugene’s product pipeline. We assume half of the milestone payments in the benchmark licence deals (ie US$260m) are for clinical and regulatory milestones and half are sales-based milestones. We do not include the potential sales-based milestones in our forecasts, and instead model a 15% gross royalty rate on net sales.

We split the US$84m upfront and US$260m clinical and regulatory milestones between the HER-Vaxx and KEY-Vaxx programmes, weighted according to peak sales. We assume a 50% probability of entering a licence deal, with the probability of subsequent milestones declining gradually to 20% for approval milestones.

Exhibit 12: Financial summary

 

A$'000s

2016

2017

2018

2019e

2020e

Year end 30 June

AASB

AASB

AASB

AASB

AASB

PROFIT & LOSS

Sales, royalties, milestones

0

0

0

0

0

Other (includes R&D tax rebate)

1,525

1,164

1,841

2,400

3,280

Revenue

 

 

1,525

1,164

1,841

2,400

3,280

R&D expenses

(2,698)

(2,472)

(4,148)

(6,000)

(9,000)

SG&A expenses

(1,596)

(1,232)

(1,718)

(2,326)

(2,396)

Other

0

0

0

0

0

EBITDA

 

 

(2,769)

(2,540)

(4,025)

(5,926)

(8,116)

Operating Profit (before GW and except.)

 

(2,770)

(2,542)

(4,028)

(5,927)

(8,136)

Intangible Amortisation

0

0

0

(282)

(271)

Exceptionals

0

0

0

0

0

Operating Profit

(2,770)

(2,542)

(4,028)

(6,209)

(8,407)

Net Interest

39

35

94

78

201

Profit Before Tax (norm)

 

 

(2,731)

(2,507)

(3,934)

(6,131)

(8,206)

Profit Before Tax (reported)

 

 

(2,731)

(2,507)

(3,934)

(6,131)

(8,206)

Tax benefit

0

0

0

0

0

Profit After Tax (norm)

(2,731)

(2,507)

(3,934)

(6,131)

(8,206)

Profit After Tax (reported)

(2,731)

(2,507)

(3,934)

(6,131)

(8,206)

Average Number of Shares Outstanding (m)

1,449.0

2,069.0

2,637.9

3,232.4

3,609.8

EPS - normalised (c)

 

 

(0.19)

(0.12)

(0.15)

(0.19)

(0.23)

EPS - diluted

 

 

(0.19)

(0.12)

(0.15)

(0.19)

(0.23)

Dividend per share (A$)

0.0

0.0

0.0

0.0

0.0

BALANCE SHEET

Fixed Assets

 

 

6,623

6,623

7,081

6,898

6,707

Intangible Assets

6,600

6,600

7,057

6,775

6,504

Tangible Assets

3

3

4

103

182

Investments

20

20

20

20

20

Current Assets

 

 

2,913

6,054

9,833

22,696

14,682

Stocks

0

0

0

0

0

Debtors

1,313

1,220

1,915

2,474

3,354

Cash

1,583

4,814

7,822

20,126

11,232

Other

18

20

96

96

96

Current Liabilities

 

 

(694)

(297)

(438)

(438)

(438)

Creditors

(657)

(232)

(343)

(343)

(343)

Short term borrowings

0

0

0

0

0

Other

(36)

(65)

(96)

(96)

(96)

Long Term Liabilities

 

 

(985)

(985)

(1,001)

(1,001)

(1,001)

Long term borrowings

0

0

0

0

0

Other long term liabilities

(985)

(985)

(1,001)

(1,001)

(1,001)

Net Assets

 

 

7,857

11,395

15,475

28,156

19,950

CASH FLOW

Operating Cash Flow

 

 

(3,089)

(2,708)

(4,508)

(6,475)

(8,996)

Net Interest

39

35

46

78

201

Tax

0

0

0

0

0

Capex

(71)

(2)

(461)

(100)

(100)

Acquisitions/disposals

0

0

0

0

0

Equity Financing

2,735

5,928

7,930

19,095

0

Dividends

0

0

0

0

0

Other

(20)

(0)

0

(294)

0

Net Cash Flow

(385)

3,253

3,008

12,598

(8,894)

Opening net debt/(cash)

 

 

(1,957)

(1,583)

(4,814)

(7,822)

(20,126)

HP finance leases initiated

0

0

0

0

0

Other

11

(21)

0

0

0

Closing net debt/(cash)

 

 

(1,583)

(4,814)

(7,822)

(20,126)

(11,232)

Source: Edison Investment Research, Imugene accounts

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Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Imugene and prepared and issued by Edison, in consideration of a fee payable by Imugene. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the Edison analyst at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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