Diamond Equity Research Releases Update Note on Imugene Limited (ASX: IMU)

New York, May 20, 2026 (GLOBE NEWSWIRE) -- Diamond Equity Research, an equity research firm with a focus on small capitalization public companies has released an update note on Imugene Ltd. (ASX: IMU) resuming coverage. The research summary below is from a report commissioned by Imugene Ltd. and produced by Diamond Equity Research. The in-depth 24-page update note includes detailed information on the Imugene’s business model, industry, financial results, and risks.

The full research report is available below.

Imugene Ltd. Resumption of Coverage

 Highlights from the report include:

• Azer-cel Drives the Central Investment Case through a Differentiated off-the-shelf CAR-T Approach - Imugene’s investment case is increasingly anchored around azer-cel, an allogeneic CD19 CAR-T therapy that addresses several structural limitations of autologous CAR-T, including long manufacturing timelines, patient-specific production complexity, and constrained real-world access. By enabling pre-manufactured, donor-derived treatment with a materially shorter vein-to-vein time (3-5 days vs 2-4 weeks for autologous), azer-cel is positioned with certain catalysts to improve treatment accessibility in aggressive B-cell malignancies where speed of deployment is clinically important. Beyond speed, the allogeneic approach enables batch-based manufacturing, improving scalability and product consistency while leveraging healthy donor-derived cells. Additionally, inventory-based distribution allows immediate treatment availability, eliminating logistical bottlenecks associated with autologous therapies. Economically, autologous CAR-T therapies are priced at $400,000-$500,000 per patient, while allogeneic approaches are structurally more cost-efficient. Collectively, these factors position azer-cel as potentially a more accessible and scalable alternative within the CAR-T paradigm.
• Clinical Data Provide Early Validation in High-Risk, Heavily Pre-Treated Populations - Azer-cel’s current clinical evidence base is now best framed around Imugene’s ongoing Phase1b expansion program. Following prior dose-escalation and regimen-optimization work, the Phase 1b study is evaluating the selected go-forward regimen of 500 million azer-cel cells, Aug/Cy lymphodepletion, and adjunctive low-dose IL-2 to support CAR-T expansion and persistence. In Cohort 1 of the ongoing Phase 1b expansion, azer-cel has shown encouraging early clinical activity in heavily pre-treated B-cell malignancies, particularly in post-autologous CAR-T relapsed DLBCL. Azer-cel achieved an 82% ORR in 17 evaluable patients, with 14 responses, including 7 complete responses and 7 partial responses. The durability profile also continues to mature, with the best observed response extending to approximately 24 months and ongoing. Importantly, azer-cel has demonstrated a favorable and manageable safety profile, broadly consistent with autologous CAR-T therapies, with no Grade 3 or higher CRS, supporting continued evaluation in a heavily pre-treated patient population. Beyond DLBCL, early Cohort 2 data in CAR-T-naïve niche indications showed 100% ORR in CLL/SLL and 80% ORR in MZL, supporting the potential for azer-cel to address multiple CD19-positive B-cell malignancies with high unmet need. 
  
• Financial Profile and Valuation Reflect a Concentrated, Asset-Driven Investment Case - Imugene is a pre-revenue, clinical-stage biotechnology company with sustained operating losses driven by ongoing R&D investment. In FY 2025, the company reported R&D expenses of A$46.7 million and G&A of A$27.8 million, resulting in a net loss of A$69.0 million and operating cash burn of A$75.6 million. The financial profile remains consistent with a pipeline-driven model, where near-term performance is not anchored to revenues but to the progression and value realization of its lead asset, azer-cel. Following recent capital raising initiatives and cost rationalization efforts, including pipeline prioritization and reduced operating intensity, the company is increasingly positioned to allocate resources toward its core value driver. For valuing Imugene, we adopt a probability-adjusted discounted cash flow (DCF) framework, with azer-cel as the primary contributor to future cash flows. Our model incorporates key assumptions around pricing of approximately $350,000 in the U.S. and $262,500 in ex-U.S. markets, peak market penetration of 25% in the U.S. and 20% internationally, and a probability of success of 30%, reflecting its Phase 1b stage and encouraging early clinical signals. We apply a discount rate of 12.0% and assume no terminal value, given the finite visibility of pipeline cash flows, while assigning a 90% weighting to DCF and 10% to comparable company analysis. Based on this blended methodology, we derive a valuation of A$0.43 per share, contingent upon successful execution by the company.

About Imugene Ltd.

Imugene Limited is a clinical-stage biotechnology company developing immuno-oncology therapies with its pipeline centered around azer-cel, an allogeneic CD19 CAR-T therapy. Azer-cel is designed to enable scalable, off-the-shelf treatment for B-cell malignancies with improved access, reduced vein-to-vein times, and simplified manufacturing complexity. 

For more information, visit https://www.imugene.com/

About Diamond Equity Research

Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.

For more information, visit https://www.diamondequityresearch.com.

Disclosures:

Diamond Equity Research LLC is being compensated by Imugene Limited for producing research materials regarding Imugene Limited and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual research engagement. As of 05/20/25, Imugene Limited has paid us $137,000 in cash compensation for our research services, which commenced 08/19/22 and is billed annually consisting of $33,000 in first year, $34,000 ($33,980 post bank charges) in the second year, and $35,000 ($34,980 post bank charges) in the third year ending 08/19/25. The fourth year of coverage started 03/17/26 with Imugene Limited paying $35,000. Additional compensation may be received in future years if the engagement is renewed.  Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. Imugene Limited has not paid us for non-research related services as of 05/20/25. Issuers are not required to engage us for these additional services. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. This report does not explicitly or implicitly affirm that the information contained in this document is accurate and/or comprehensive, and as such should not be relied on in such capacity. All information contained within this report is subject to change without any formal or other notice provided. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the update report and in the respective financial filings for Imugene Ltd., which may not be comprehensive. 

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• Imugene Ltd. Resumption of Coverage

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