Not many people contract Lupus; there are only around 1.5m sufferers in the G7 group of industrialised nations. But treatment is expensive - around $20,000 a year - and without treatment, the usual result is kidney failure and death. So ImmuPharma had a hot property with Lupuzor, a treatment for the condition, and major US biotech firm Cephalon has paid ImmuPharma a total of $45m for the worldwide rights.
This cash gives Immu the wherewithal to develop other drugs and top of the tree is the "second jewel". It's an anti-cancer peptide which, it is claimed, can control and stop the growth of a large number of human cancer cells from breast to prostate cancer. Like rivals, it not only blocks blood flowing to tumours but also aims to stop the tumours proliferating.
Immu's other big advantage is its closeness to the main French government's National Centre for Scientific Research, where Lupuzor was developed. Tax concessions on intellectual property in France means that last year Immu's profit (payments for Lupuzor's rights less costs) was only taxed at 11 per cent, albeit up from 2008's four per cent.
IMMUPHARMA (IMM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 83p | MARKET VALUE: | £67.3m | |
| TOUCH: | 82-84p | 12-MONTH HIGH: | 136p | LOW: 75.5p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 8 | |
| NET ASSET VALUE: | 22p* | NET CASH: | £22.1m | |
| Year to 31 Dec | Revenue (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 59.8 | -2.55 | -3.63 | nil |
| 2007 | 63.2 | -3.34 | -4.24 | nil |
| 2008 | 57.1 | 4.86 | 6.23 | nil |
| (£m) | ||||
| 2009 | 22.1† | 9.10 | 10.46 | nil |
| % change | na | +87 | +68 | - |
Aim: Pharmaceuticals. * Including intangible assets of £747,000, or 0.9p a share. † Relates to product licensing | ||||
