Why is the Imugene share price under pressure?
Shares in the biotech have been soaring lately, so why is the price struggling today?
Imugene Ltd (ASX:IMU) is among the top traded stocks on the asx on Monday.
Shares in the company are down nearly 5% to 0.538 at the time of writing, compared with market falls of 0.76%.
What is weighing on the Imugene share price?
The healthcare provider is having stellar 2021, especially in the last week, with the company announcing a new partnership with medical giants Merck KGaA and Pfizer.
Under the agreement announced last week, the companies will work together to evaluate the safety and efficacy of Imugene's HER- Vaxx when combined with avelumab in patients with HER-2 postive gastric cancer.
At the time of the announcement Imugene's CEO Leslie Chong noted her excitement to be working with the leading pharmaceuticals.
"HER-Vaxx has shown a tolerable safety profile and encouraging efficacy in patients with metastatic HER-2 positive gastric cancer, and we are looking forward to evaluating HER-Vaxx with avelumab in the perioperative clinical setting," she stated.
"Working together, we're committed to finding ways to address the unmet needs of patients living with cancer."
With the only announcement made to the market being around 'Changes of Director's Interest Notice', it appears much of this morning's sell-off has been investors cashing in on previous good news.
Analyst raise target price
Following the successful announcement of the company's immunotherapy drugs brokers are starting to lift their target price on the stock.
According to Morningstar Quantitative, the share price is undervalued, with a new target price set 8% higher.
Roth Capital has also indicated that the share is a 'strong buy'.
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