A 90% plus price implosion attests to Immune Pharmaceuticals Inc (OTCMKTS:IMNP) underperformance over the past year. The stock is currently languishing at all-time lows, investor confidence has hit all-time lows at the back of waning growth metrics.
Immune Pharmaceuticals Price Analysis
Immune Pharmaceuticals underperformance does not come as a surprise. The management has failed to underline the company’s growth metrics, something that continues to hurt the stock sentiments. The last piece of information about the company’s operations came late last year.
The stock is currently languishing at the $0.01 mark and in dire need of new catalysts if it is to bounce back from all-time lows. Price action activity indicates the stock faces immediate resistance at the $0.04 level, on any bounce back from current lows.
For the stock to turn bullish, after the underperformance of last year, it will have to surge and stabilize above the $0.08 mark. Above the critical resistance level, buyers could come in and continue pushing the stock up the charts ahead of the $0.16 next resistance level.
Below the $0.04 mark, the stock remains susceptible to further drops given that short sellers remain in firm control. However, the downward pressure appears to have lost momentum awaiting further pullbacks.
What Does Immune Pharmaceuticals Do?
Immune Pharmaceuticals is a clinical stage biopharmaceutical company that develops therapeutic agents for the treatment of various immunologic and inflammatory diseases. Its lead candidate drug is bertilimumab an antibody that is in Phase II trials for the treatment of bullous pemphigoid and Ulcerative colitis.
Immune Pharmaceuticals has sought to reaffirm its long-term prospects by reiterating achievements on the development of Bertilimumab, its lead candidate drug. The company inked a deal with Extera Partners in late 2018 as it continues to seek a strategic partnership that will accelerate its development.
“The Extera team has broad transactional experience in the orphan disease space and a global network of business development executives and decision-makers at biopharmaceutical companies, so they are very well positioned to drive an efficient and rapid process,” said Tony Fiorino, MD, Ph.D., Immune’s interim Chief Executive Officer.
In October of last year, the company did announce positive pre-clinical results in an Asthma trial as part of eotaxin-1 trials. The results did suggest that Bertilimumab could have a broader anti-inflammatory effect in human asthma. The company has since confirmed that additional trials will have to come into play to affirm the use of eotaxin-1 blockade as a novel treatment for Asthma.
Ceplene Rights Sell
In November of last year, the company embarked in what appears to be a capital raising drive. The company consequently signed an agreement with Vector Therapeutics for the sale of the world rights of Ceplene, a candidate treatment for Acute Myeloid Leukemia.
Under the terms of the deal, Immune Therapeutics received $500,000 in front. The biopharmaceutical is entitled to an additional $14.5 million that will be split into $2.5 million at the closing of the deal and $4.5 million in 2019. The remaining amount is to be paid in tranches of $2.5 million starting 2020 to 2022.
In addition, Vector Therapeutics is to assume all liabilities related to Ceplene development to a tune of $3.5 million going forward. The two companies have also agreed to coordinate various activities jointly for the maintenance of Ceplene’s Market Authorization in Europe.
“We are so pleased to have signed this option agreement with Vector Therapeutics. Given Vector’s knowledge of Ceplene, we believe they are the right party to capitalize on this asset. We look forward to working with them to close this transaction and complete the transfer of Ceplene into their capable hands,” said Mr. Fiorino.
What Next For Immune Pharmaceuticals
Immune Pharmaceuticals faces an uphill task to bounce back after shedding more than 90% in market value over the past year. Investor sentiments in the stock are at an all-time low. For the stock to bounce back, the company will have to deliver a string of groundbreaking catalysts to reinvigorate investor interest.
For starters, the company needs to come out clear on what investors should expect of its lead candidate drug Bertilimumab, which it is betting on for long-term value. Until then the stock looks set to remain under pressure taking into consideration the strength of the downward pressure.
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Disclosure: We have no position in IMNP and have not been compensated for this article.