Hi all
Time for an update on the potential
due to a few recent announcements and developments I have made a few changes.
10 reasons why I take a positive long term view of Imugene.
1: Humble, yet highly renowned board of directors, including an extensive world class scientific advisory board, a strategic partnership with Vienna medical university and another with Ohio State university along with a highly experienced competent management team, with original developers and deal makers with significant and increasing stakes.
2: The creation of a method to manufacture what are considered to be the world’s first commercially viable polyclonal “B cell” cancer Vaccines which at this stage include Her-Vaxx, B-Vaxx and Key Vaxx, these are known as B cell Mimotopes which are a new technology platform, as B cells work longer and have vastly less side effects than existing treatments it is possible B cell technology may become the major foundation for cancer treatment
3: B cell mimotopes are peptides that mimic the effects of specific B-cell epitopes in stimulating an immune response. Imugene has demonstrated that Immunization with these mimotopes induces a “safe” (unlike T cell vaccines such as Keytruda, and Herceptan) B cell immune response directed at the target disease related antigen. As such B cell vaccines have great potential as an immunotherapeutic approach for a variety of cancers.
4: Outstanding IP: This is the worlds first vaccine to be designed by artificial intelligence (AI). The Method of producing these B cell Mimotope peptide vaccines has been patented; so competitors would need to find an alternative method to manufacture their B cell peptides. Recently Imugene undertook a $20 million licensing deal from Ohio State University and Mayo Clinic, acquiring a family of 16 patents, a deal which basically ensures Imugenes position is now at the forefront of mimotope B cell development.
5: Compared with Monoclonal T cell vaccines Imugenes B cell Mimotope vaccines are Polyclonal and as such are considered considerably safer yet potentially as potent as theT cell vaccines which they might well replace. Imugenes B cell vaccines invoke your own B cells to make antibodies so way less chance of triggering an autoimmune disease (as is the case with existing synthetically produced monoclonal T cell antigens). To date Imugenes trials, whether done on animals or humans have had no major side effects and have so far shown good signs of efficacy and doctors have been reporting seeing clinical benefits.
6: As recently demonstrated with Key Vaxx ( a B-cell equivalent of Merck’s T-cell Keytruda) Imugenes mimotope IP allows Imugene to continually add to and grow their platform; mimicking many other existing monoclonal antibodies and to make polyclonal equivalents of them (these could include drugs such as other T-cell vaccines such as Opdivo (marketed by BMS). Imugene already has Six patent families, and 22 patents.Sales reported for Opdivo and Keytruda in 2017 were USD4.95b and USD3.81b respectively and have double digit annual growth, for example by year 2022 Opdivo is expected to reach sales of USD10b).
7: This is a Potentially disruptive Technology- Imugenes polyclonal antibody response is expected to be considerably safer than T cell drugs, therefore the T cell drugs which Imugene replicates are likely to have greater restrictions applied to their use, or pulled from market.
8: Potential licensing agreements: Typically in a licensing agreement the developer receives an upfront payment and often at a later date milestone payments, and then more importantly depending upon the initial size of the upfront payment, make yearly royalty payments which are typically levied between 10% and 20% on total sales, (in some cases I have heard of royalty payments as high as 60%).
9: Of that revenue generated a Biotech Company’s management decide how much to keep for administration and R&D the balance remaining usually returned to shareholders. In this sector costs (compared to revenue) are typically low, so shareholder pay-out ratios are typically high, often in the 80 to 90% range.
For example: A big biotech company holding a licence to sell one of our products and selling $1b of that product could earn us the following:$1Bilion of sales and a 20 % royalty = $200m royalty revenue to Imugene (per year!).
Then that $200m might be distributed at follows;
20% of the $200m = or $40m pa to administration & R&D (= sustained growth!)
80% of the $200m = $160m pa for a dividend distributionthat $160m is divided by issued capital (IMU might have by then 4 billion shares) = 4. cents
That’s 4 cents per share dividend for each 1 billion of product sales alone!
additional to that there could also be upfront, and milestone payments down the track, for example (before deducting company running costs) an upfront or milestone payment of $500m equates to an additional 12.5 cents per share.
10: With EACH $1b of royalty sales potentially generating around 4 cents PER YEAR in dividends,
It’s then easy to see how someday when more than 1 product is being sold under licence we could have between a number of products and a number of deals between a number of big Pharma companies generating $10b (or more!) in sales.
$10 Billion of sales would give Imugene a $1 to $2 billion dollar per year ( or more) income stream, potentially generating 20 to 40 cents (or more per year ) per share in dividends, while at the same time making a large and positive difference for a lot of patients.
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