IMU News: We're Not Very Worried About Imugene's (ASX:IMU) Cash Burn Rate - 1st Mar 2022, 9:26am

[annb0t]

Just because a business does not make any money, does not mean that the stock will go down. Indeed, Imugene (ASX:IMU) stock is up 135% in the last year, providing strong gains for shareholders. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.

Given its strong share price performance, we think it's worthwhile for Imugene shareholders to consider whether its cash burn is concerning. For the purpose of this article...

>>> Read more: We're Not Very Worried About Imugene's (ASX:IMU) Cash Burn Rate

 

[jeff2151]

IMU will be fine. Its cash burn rate is due to the large number of clinical trials, plus its R&D expenditures. The big pharma companies who are assisting with the trials are unlikely to stand back and do nothing to help IMU should the need arise. There'll be lots of news coming from IMU, so they'd have little trouble borrowing or raising cash by issuing equity should the (very unlikely) need arise. This isn't your average start-up. It's a company that has an excellent chance of developing cures for many, if not all, types of cancer. The years of research behind their clinical trials, and the amazing talent of the people involved form a foundation for the future that's second to none, IMO.
Jeff

 

[jeff2151]

IMU have drawn attention to a new report from Roth Capital:
https://imugene.us7.list-manage.com...31936a9627acb6427c&id=7f74517bca&e=7c040abdb5
They have a 12 month price target of 71 cents - that's pretty meaningless because the price will depend entirely on the news from the company, particularly the progress on clinical trials and the interest shown by big pharma.
They note that the company is making good progress and, at the current cash burn rate, have enough money to keep them going for almost four more years.
For those unfamiliar with IMU, this report is well worth a read.
Jeff