AIM-listed specialist drug discovery and development company ImmuPharma has been out of favour with investors recently and the shares are languishing at close to all-time lows. It may be that investors have found better short-term opportunities elsewhere in recent months given market conditions as, contrary to what the charts may suggest, the company has done nothing to disappoint. There was a placing in September at 11p per share and the chance to buy in now at a discount to that level looks very tempting.
ImmuPharma is a specialty biopharmaceutical company focused on the discovery and development of peptide-based therapeutics. It has operations in the UK, France and Switzerland, with a formal research collaboration with the Centre National de la Recherche Scientifique in France. A partnership-based business model means that there is a small core of full time staff and a low cost base.
The company has a portfolio which includes novel peptide therapeutics for autoimmune diseases, metabolic diseases, anti-infectives and cancer. The lead program, Lupuzor, is a first-in-class autophagy immunomodulator which is in Phase 3 for the treatment of lupus. Preclinical analysis suggest therapeutic activity for many other autoimmune diseases that share the same autophagy mechanism of action. In November 2019 ImmuPharma and Avion Pharmaceuticals signed an exclusive licence and development agreement and trademark agreement for Lupuzor, to fund a new international Phase 3 trial for Lupuzor and commercialise in the US.
The last piece of meaningful news from the company was on 9 February when an update on the new optimised international Phase 3 trial of Lupuzor in systemic lupus erythematosus, which is a potentially life-threatening auto-immune disease, was released. Lupuzor continues to progress towards the commencement of the international Phase 3 trial with Avion Pharmaceuticals. The Phase 3 study remains on schedule for the second half of 2021.
It is surprising that the shares are at such a low level by historical standards and the company will surely attract some interest in the coming months. Final results are due out in the near future although, given the company’s stage of development, these are likely to be fairly pedestrian. Nevertheless, some attention may be drawn to the shares at what looks to be a bargain price. We rate ImmuPharma as a SPECULATIVE BUY.
RECENT TIPS – The highs and the lows
For a flavour of our performance recently, we list below some of our recommendations that we have made in the last week or so:
HSS Hire – 19.6p at close on 6 April (tipped at 16.85p on 31 March) – gain of 16%.
*Investors realise the stock is too cheap
Gfinity – 4.59p at close on 6 April (tipped at 3.8p on 29 March) – gain of 21%.
*Further consideration of interim results
Logistics Development Group – 13.35p at close on 6 April (tipped at 14.875p on 30 March) – a loss of 10%.
*Share price fall due to lack of positive news on company’s future plans
To read about some of our other recent top performing share tips, head to https://www.cityconfidential.co.uk/recent-top-share-tips
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