Australian immuno-oncology company Imugene (ASX:IMU) has moved to accelerate development of its lead cancer therapy after reporting encouraging clinical results, while launching a capital raising to fund the next phase of trials.
The company announced early signals of strong efficacy from its ongoing Phase 1b trial of Azer Cel, an off-the-shelf CAR T cell therapy targeting CD19 for the treatment of blood cancers. Early data from the CAR T-naïve cohort revealed a 100 per cent overall response rate in patients with chronic lymphocytic leukemia and small lymphocytic lymphoma, with all four treated patients achieving partial responses despite having received at least 3 prior lines of therapy.
In another subset of the study, the therapy achieved an 80 per cent overall response rate in marginal zone lymphoma, with three patients achieving complete responses and one partial response. The results are particularly notable given the limited treatment options available to patients whose disease has progressed after earlier therapies.
To support continued development of the therapy, Imugene has launched a capital raising targeting approximately $20 million. The funding includes a $12 million institutional placement and a share purchase plan that could raise up to eight million dollars from existing shareholders.
The placement will issue about 66.7 million new shares at eighteen cents each, representing a discount of about 21.7 per cent to the previous closing price. Investors participating in the offer will also receive free attaching options exercisable at eighteen cents until April 2027, which could provide additional funding if exercised.
Eligible shareholders will be able to participate in the share purchase plan on similar terms, applying for up to $30,000 in new shares without brokerage fees. Institutional investors have also agreed to backstop part of the offer to ensure at least $16 million is raised.
The funds will primarily be used to expand the Phase 1b trial of Azer Cel, including expanding cohort 2 and introducing a new cohort evaluating the therapy in combination with a BTK inhibitor. The capital raising is also expected to extend the company’s funding runway into the fourth quarter of 2026.
Imugene chief executive Leslie Chong said the funding will allow the company to build on the momentum generated by the early clinical data. She said the capital raise positions the company to advance the clinical development of Azer Cel while continuing to generate additional clinical evidence from its expanding trial program.
Alongside the fundraising, the company is restructuring existing convertible notes held by CVI Investments by replacing them with new senior convertible notes and warrants. The revised arrangement is intended to improve the company’s cash flow position while maintaining financial flexibility as the clinical program advances.