ImmuPharma (Immu) is cash rich because in 2008 and 2009 US biotech major Cephalon paid it $45m to obtain exclusive worldwide licensing rights for its drug Lupuzor. It treats lupus, a type of self-allergy where a person’s immune system creates antibodies that, instead of protecting its host, attack a patient’s body tissues instead: the usual result is kidney failure and death. It’s a more common disease than either leukaemia or multiple sclerosis and some 90 per cent of sufferers are women. Cephalon has started recruiting lupus patients for a phase IIb trial in the US and Europe and, in time, the drug could earn Immu significant money in terms of milestone payments and royalties. Celhalon has also found a partner to test Lupuzor in Japan.
Immu is using the Cephalon money to start phase IIa trials of its leading cancer compound. This compound aims to prevent proliferation of new blood cells around a tumour. It covers a range of cancers including prostate, brain and breast cancer and trials to date have shown no toxicity concerns - the main problem with cancer treatments. The target competitor is Roche’s blockbuster drug Avastin. Broker Matrix expects data from both trials in the next few months - as Immu starts to look for a big pharma partner for its anti-cancer compound.
IMMUPHARMA (IMM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 81p | MARKET VALUE: | £65.7m | |
| TOUCH: | 80-82.5p | 12-MONTH HIGH: | 136p | LOW: 64.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 21p | NET DEBT: | £19.3m | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 21.60 | 13.70 | 15.05 | nil |
| 2010 | * | -0.08 | -0.10 | nil |
| % change | - | - | - | - |
Sector: Pharmaceuticals *£117 | ||||
