Imugene Ltd (ASX:IMU, OTC:IUGNF, FRA:ILA) could be significantly undervalued as its focused push into allogeneic CAR-T therapy gathers momentum, according to a new initiation report from RaaS Research, which has assigned the company a risk-adjusted valuation of $0.24 per share — representing 129% upside to the current share price of $0.105.
The broker believes the market is yet to fully appreciate Imugene’s strategic transformation into a streamlined CAR-T-focused biotech centred on its lead asset azer-cel, an “off-the-shelf” allogeneic CAR-T therapy targeting blood cancers.
RaaS said Imugene had undergone a major pivot away from its previously broad and capital-intensive oncology pipeline, with management now concentrating resources on advancing azer-cel through late-stage development and toward commercialisation.
The report highlighted what it described as “compelling” Phase 1b efficacy data to date, including an 82% overall response rate in relapsed or refractory diffuse large B-cell lymphoma patients who had failed prior autologous CAR-T therapy, alongside strong results in niche CAR-T naïve lymphoma indications.
Broker sees re-rating potential as milestones approach
RaaS said several near-term catalysts could drive a significant re-rating in Imugene shares over the next 12 months, including further Phase 1b data, commencement of pivotal trials and potential licensing discussions with major pharmaceutical companies.
Central to the valuation thesis is the commercial potential of azer-cel as an allogeneic CAR-T therapy, which differs from currently approved autologous CAR-T products that rely on harvesting and modifying a patient’s own cells.
The broker said allogeneic therapies offered major advantages, including lower manufacturing costs, immediate availability and improved scalability, describing the approach as a potential “commercial breakthrough” for the sector.
RaaS used a probability-weighted discounted cash flow model to derive its valuation, assigning an unrisked net present value of $0.97 per share before applying a 25% probability-of-success weighting to arrive at the final $0.24 valuation.
The broker also noted Imugene’s market capitalisation of less than $50 million compared favourably with global allogeneic CAR-T peers including Allogene Therapeutics, Caribou Biosciences and Cellectis, which trade at materially higher valuations despite many still being pre-commercial.
RaaS believes Cohort 2 and Cohort 3 of the azer-cel program could provide a faster and more capital-efficient pathway to market, particularly in niche lymphoma indications where no approved CAR-T therapies currently exist.
The report also pointed to the possibility of accelerated FDA approval pathways and future licensing deals as major value drivers, especially as Imugene explores combination therapy opportunities with BTK inhibitors — a market segment generating more than US$10 billion in annual sales globally.
Despite acknowledging funding and regulatory risks typical of clinical-stage biotech companies, RaaS said Imugene’s sharpened strategy, improving capital discipline and strong clinical data positioned the company for a potentially substantial valuation uplift if upcoming milestones are achieved.