Antibody startup Immuron’s IPO Prospects

By : Taylor Stuart

Several types of companies will never go out of business. Tech firms for one, because people have an insatiable need for living easy lives and technology, makes that happen. Food industries and real estate companies because people must have access to their basic needs. And biopharmaceutical companies because well, health gets better and worse every day.

Immuron of one of Australia’s most promising biopharma startups. Promising is not precisely the right word for it. Immuron is more of unique than promising. Most biopharma companies operating now go for high target markets such as cancer markets to operate in. Cancer has a high mortality rate, and it affects more of the world’s population. Immuron, on the other hand, develops what it claims will be best in class drugs to fight immune-related diseases.

Immuron has been on the public radar for quite some time now. Back in Australia, the biopharma company trades on the ASX under the stock symbol IMC. The bad news is that the company’s stock is tanking on the ASX. Ahead of Immuron’s IPO, the company’s poor performance on the ASX is not something investors want to see. As it stands now, Immuron’s shares trade at -16.36% of their initial trading price.

Immuron wants to make its debut on the US NASDAQ Capital Market. Immuron intends to sell off each of its units within the price spectrum of $10 to $12.50. If you are looking to buy into the IPO, you’ll get a share and a warrant to buy more of Immuron’s shares for each unit that you buy. Immuron plans to sell off 800,000 American Depositary Shares and about 390,000 warrants. Joseph Gunnar & Co., Rodman & Renshaw, and WallachBeth Capital will be advising Immuron through the whole deal.

Immuron might not be a go-ahead because of the poor trading position on the ASX, but it still has a few things going for it. First, Immuron may be a biopharmaceutical startup, but it has been raking in cash on its own. Most clinical stage biopharmas typically rely on venture capitalists and institutional investments to keep them running. However, Immuron has had a few more breaks. The company has no venture backing to start with, but it has received several milestone payments because of successful clinical trials. Immuron also has one of its products called travelan on the market. Travelan is an OTC that helps travelers deal with diarrhea.

Biopharma companies usually stake the fates of their IPOs on the performance of their drugs. If your drugs are not doing well, then there is no need to buy into that firm is a general sentiment. Lucky for Immuron that its principal products are well on their way to production. The firm’s leading drug, the IMM-124E, is in its last stages of testing. Other drugs have just finished recruiting for most of their Phase 2 trials. That, at least, is a good sign for a company that has made losses of up to $5.8 million since it began its drug tests back in 1994.