Immuron progressing product pipeline

Immuron (ASX:IMC) has moved to reassure investors that OTC diarrhoea preventative Travelan is not the only card in its deck in response the company’s flagging share price despite the progress commercialising the product.

In a presentation to shareholders at a meeting today to approve a $2 million capital raising, chairman Professor Colin Chapman acknowledged that “there has been some pressure on the share price in recent months.”

But he said that the board does not believe its recent share price performance “is reflective of the progress Immuron has made today. In fact the directors are of the view that the current price represents good buying value.”

Immuron (ASX:IMC) shares have steadily declined from $0.063 at the start of the financial year, to an opening price of $0.018 on Thursday.

In this time, the company has made significant progress commercialising its Travelan product, an OTC preventative treatment for travellers' diarrhoea.

In November, for example, the company signed an up to C$115 Million ($111.7 million) distribution deal for the product with Canada's Paladin Labs. Immuron has also secured deals in Asia with IntegraMed Asia and Ziwell Medical.

In light of the market's lukewarm reaction to its progress with Travelan, today's presentations by Chapman and CEO Joe Baini emphasised recent progress made with the two most advanced products in Immuron's development pipeline.

Baini detailed advancements made with the development of IMM-124E, a potential treatment for nonalcoholic steatopatitis (NASH) and fatty liver disease. These include the granting of an Investigational New Drug application with the US FDA.

Baini said the company is already in negotiations with multi-national pharmaceutical companies about the drug candidate, and strategic investors are showing strong interest. The product could be on the market in 3-4 years.

There are no approved treatments for NASH or Fatty Liver Disease and the company expects the product to be worth several billion annually in the US alone.

Immuron is also at the phase I clinical trial stage for IMM 255, which is being designed to be the first dual-acting orally administered OTC influenza therapy.

IMM 255 will consist of an oral antibody inhibiting influenza infection, as well as colostrum derived adjuvants designed to boost the immune system to fight the disease.

Colostrum is the first milk an animal produces after giving birth, which is naturally rich in antibodies. Immuron produces Travelan using bovine colostrum, derived from cows which have first been vaccinated with proprietary vaccines.