Immunic, Inc. (NASDAQ:IMUX), a $93 million market cap pharmaceutical company specializing in the development of treatments for autoimmune and inflammatory diseases, announced a significant update to the employment agreement of its CEO, Dr. Daniel Vitt. The announcement made on Wednesday follows Dr. Vitt's decision to temporarily relocate to the United States. According to InvestingPro data, the company is currently trading near its 52-week low of $0.97, with shares down nearly 28% year-to-date.
As per the new agreement effective December 13, 2024, Dr. Vitt will maintain his role as CEO with his current annual salary of $610,000 and an annual target bonus of 55% of his salary. He will also be eligible for equity incentive awards under the company's 2019 Omnibus Equity Incentive Plan. His compensation, as stipulated by the agreement or otherwise, is subject to the company's clawback policy. The company maintains a strong liquidity position with a current ratio of 2.71, though InvestingPro analysis indicates rapid cash burn remains a concern.
The company will also provide Dr. Vitt with benefits consistent with other employees and may reimburse up to $100,000 of his housing expenses monthly in the United States, subject to certain conditions.
Concurrent with Dr. Vitt's move, his service on the management board of Immunic AG, the company's wholly owned subsidiary, will be paused. This suspension is governed by a separate agreement with Immunic AG, also dated December 18, 2024, ensuring Dr. Vitt will not receive remuneration related to his service on the management board during his relocation. He is, however, expected to be reappointed to the board following his temporary stay in the U.S.
In other recent news, Immunic Inc. reported significant developments in its ongoing drug trials and financial results. The company's lead drug candidate, vidofludimus calcium, is making progress in two Phase 3 ENSURE trials for relapsing multiple sclerosis (MS) and a Phase 2 CALLIPER trial for progressive MS. According to H.C. Wainwright, the positive interim analysis from the ENSURE trial supports the potential of vidofludimus calcium as a novel neuroprotective and anti-inflammatory therapy.
The firm also noted that Immunic's comprehensive approach to treating both relapsing and progressive MS with vidofludimus calcium is a major factor in their optimistic outlook. Looking ahead, Immunic anticipates the results from the CALLIPER trial in April 2025, which could demonstrate the drug's neuroprotective effects and its impact on disease progression.
In terms of financials, Immunic ended the third quarter with $59.1 million in cash and projects sufficient funds through the third quarter of 2025. However, the company reported a net loss of approximately $24.4 million for Q3 2024. Despite this, Immunic remains confident in the potential of vidofludimus calcium, with anticipated peak sales of $2 billion to $6 billion if approved.
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