Immuron Ltd (NASDAQ:IMRN, ASX:IMC) has received a bull case valuation of A$0.35 and a base case valuation of A$0.25 from Pitt Street Research in a report.
The analysts highlight that the key catalysts for realising this potential shareholder value are the advancement of the company’s clinical-stage assets through the clinic with the end goal of bringing these assets to market.
Immuron’s shares are currently trading on the ASX at A$0.072 with a market cap of A$17.1 million.
Following are excerpts from Immuron’s research report:
Travelan and Protectyn are attractive amid concerns related to antibiotic resistance.
Travelan is Immuron’s flagship oral immunotherapeutic product, commercially available in three international markets – Australia, Canada and the US.
Travelan is an immune supplement that helps reduce the risk of travellers' diarrhoea (TD) and minor gastrointestinal disorders.
It is superior because it is both a proactive and a reactive treatment.
Protectyn is Immuron’s other oral immunotherapeutic product, only available in Australia at present.
It is a dietary supplement for gut health that has been formulated to help maintain a healthy digestive function and support the liver.
Both are likely to remain attractive amid concerns related to antibiotic resistance.
IMM’s sales have increased by 136% in FY23 to reach A$1.8 million (compared to A$0.8 million in FY22).
IMM’s clinical assets offer further upside
IMM-124E is the drug substance and the active pharmaceutical ingredient in Travelan.
In the US, Travelan is marketed as a dietary supplement for digestive tract protection and as such the company cannot make any claims about the therapeutic benefits against travellers' diarrhoea.
But the company is pursuing a regulatory pathway to license Travelan against travellers’ diarrhoea (Travelan Rx), an indication for which there are no FDA approved drugs.
IMM has just initiated a Phase 2 clinical trial in the US with IMM-124E. As for IMM-529 and CampETEC, these are oral formulations intended for patients suffering from recurring Clostridioides Difficile infection and moderate to severe campylobacteriosis respectively.
Shareholders can look forward to continued progress with these assets too.
Valuation range of A$0.25–0.35 per share
Using a Sum of the Parts (STOP) valuation, we have valued IMM at A$0.25 per share under a base case projection and A$0.35 per share in an optimistic (or bull) case scenario.
We see the key catalysts for realising this potential shareholder value as the advancement of the company’s clinical-stage assets through the clinic with the end goal of bringing these assets to market.