IMMUNE THERAPEUTICS INC FLA (OTCMKTS:IMUN) Drops Once More

After gaining approximately 260% in the span of just seven sessions and hitting a high of $0.315 on August 4 it seems that the stock of IMMUNE THERAPEUTICS INC FLA (OTCMKTS:IMUN) is now reversing its direction. On August 5 the ticker crashed by over 16% while on Friday it wiped another 9.8% to close the week at $0.23. If the downtrend continues the stock could slash even more of its recent gains.

And this could indeed be the case as the excitement generated by the recent announcement made by IMUN seems to have diminished significantly. On August 3 the company in partnership with GB Pharma Holdings Inc and American Hospitals & Resort [AHAR] signed a Letter of Intent with Fidson Healthcare Plc, a Nigerian public company that is traded on the National Stock Exchange of India. Under the terms of the LOI Fidson will promote and distribute IMUN’s Lodonal drug in Nigeria.

The announcement is indeed encouraging and if everything goes according to plan IMUN could start seeing more substantial revenues but investors should still use caution when approaching the stock. In the past IMUN has made several similarly optimistic announcements that ultimately led to absolutely nothing – back in 2013 the company entered into a distribution agreement for Lodonal with the Nigerian company AHAR Pharma while in August 2014 they announced that the first shipment of the drug has been made to Panama and Malawi. If you open the annual reports for 2013 and 2014, however, you will see that for both years IMUN reported ZERO revenues.

Although the company did register some revenues during the first quarter of this year the balance sheet did not improve by much, if at all. At the end of March IMUN had:

• $30 thousand cash
• $63 thousand total current assets
• $3.6 million total current liabilities
• $2070 net revenues
• $2.9 million net loss

With a massive working capital deficit and an accumulated deficit since inception of over $336 million the financials of the company are indeed quite grim.

The red flags around IMUN are far too serious to be underestimated. Still, the stock could lure investors once more if the company announces the results of its 90-Day bridging clinical trial. The dosing of the first patient was announced on May 4 so by now the 90 day period should have ended.