Aussie biopharmaceutical company Immuron Limited [ASX:IMC] is thriving in the early hours of today’s trading.
Within the first hour after market open, Immuron shares were up a whopping 26%, to sit at 14.5 cents a share.
The spike seems to be a reaction to the company’s pleasing sales results for FY19. Immuron provides commercially available, orally-delivered products containing antibodies which treat inflammatory mediated and infectious diseases.
Their over-the-counter Travelan® medicine — which reduces the risk of traveller’s diarrhoea and other minor gastro-intestinal disorders — is listed on the Australian Register of Thearapeutic Goods.
Travelan® is a favourite in the US
Highlights from the sales update include a 52% surge in revenue in North America, hitting AU$1.16 million unaudited.
There was also notable growth in Travelan® sales in the US (up 32% year-on-year), causing revenue to break the AU$1 million mark. The month of May alone saw US Travelan® sales worth AU$182,000.
Over a third of this revenue was generated by the product’s sales in the Passport Health Travel Clinic Network, which has over 270 branches across the US.
Immuron was also featured on two podcasts, which led to an 80% surge in Travelan® sales on Amazon in FY19.
These innovative forms of collaboration were intentional in order to ‘increase awareness of Travelan® amongst North American consumers’ and ‘educate and inform the market regarding the virtue of our product,’ says CEO Dr Gary Jacob.
Sales in Australia also continued their uptrend, up 15% year-on-year thanks to TV advertising and stronger in-store merchandising.
Q3 FY19 also saw the launch of Travelan® in Canada, with pharmacy chain Shoppers Drug Mart being the first to shelve the product. AU$100,000 was made in the Canadian market in Q4 FY19.
Is further growth on the cards for Immuron?
Dr Jacob included a forward-looking statement in the sales update:
‘The new 2020 fiscal year will see our efforts ramp up even further in North America as we expand distribution channels and work to further consumer demand in that very important geographic area using pull-though marketing campaigns and other forms of advertising.’
One key initiative is to develop a registration dossier for the company’s clinical candidate, IMM-124E. Once approved, this drug can be sold as a clinically approved treatment for traveler’s diarrhoea rather than as a dietary supplement, which is the current situation for Travelan® in Canada in the US.
Such a step will likely make Immuron products the recommended solution to the hundreds of millions of travellers affected with traveler’s diarrhoea each year. So it’s definitely a step in the right direction.
Of course, rapid share price movements are common in small-cap stocks like Immuron, and any kind of market upset could make the price move in the other direction.
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For Money Morning