Executive Summary / Key Takeaways

• IMUNON's lead candidate, IMNN-001, a DNA-based IL-12 immunotherapy, demonstrated unprecedented and clinically meaningful overall survival benefits in the Phase 2 OVATION 2 trial for newly diagnosed advanced ovarian cancer, a disease with high unmet need and limited frontline innovation for decades.
• The company's proprietary TheraPlas technology enables localized, durable production of potent anti-cancer cytokines like IL-12 and interferon gamma at the tumor site, avoiding systemic toxicities seen with previous IL-12 approaches and offering a differentiated mechanism compared to existing therapies.
• Positive interactions with the FDA, including alignment on the Phase 3 OVATION 3 pivotal trial protocol and a positive CMC meeting validating in-house manufacturing capabilities, underscore regulatory support and operational readiness for the next stage of development.
• IMUNON possesses a second platform, PlaCCine, for DNA-based vaccines, which has shown proof-of-concept in a Phase 1 COVID-19 trial, demonstrating favorable immunogenicity, durability, and stability advantages, positioning it as a potential non-dilutive partnership opportunity.
• Despite significant clinical and operational progress, IMUNON faces substantial financial hurdles, with limited cash runway necessitating significant capital raises through equity and partnerships to fund the estimated $50 million cost of the Phase 3 trial and address going concern uncertainty.

The Unmet Need and IMUNON's Differentiated Approach

Ovarian cancer remains a devastating diagnosis, particularly for women with advanced Stage III or IV disease, where five-year survival rates are poor, standing at approximately 41% and 20%, respectively. Despite decades of research, the frontline standard of care, primarily surgery and chemotherapy, has seen little change or meaningful improvement in overall survival for over 25 years. Existing second-line options for platinum-resistant disease offer limited overall response rates (10-20%) and modest median overall survival (11-12 months). While PARP inhibitors have improved maintenance therapy for certain patients, a significant need persists for novel treatments that can fundamentally alter the disease course, especially in the frontline setting.

Into this challenging landscape steps Imunon, Inc., a clinical-stage biotechnology company focused on harnessing the body's natural mechanisms through innovative non-viral DNA technology. The company operates primarily as a single research and development segment, channeling its efforts into two core modalities: TheraPlas and PlaCCine.

The TheraPlas modality is designed for the gene-based delivery of therapeutic proteins and cytokines directly to solid tumors. Its lead application is IMNN-001, a DNA-based immunotherapy for advanced ovarian cancer. IMNN-001 utilizes a proprietary delivery system to introduce an IL-12 plasmid into cells at the tumor site, instructing them to produce potent cancer-fighting molecules like interleukin-12 (IL-12) and interferon gamma (IFNγ). This localized approach is a key differentiator, aiming to generate high concentrations of these cytokines within the tumor microenvironment while minimizing systemic exposure and the associated toxicities that have plagued previous attempts at systemic IL-12 delivery. Preclinical and early clinical data suggest this loco-regional production can persist for up to a week, supporting repeated administration and potential use in long-term maintenance therapy. The technology's biocompatibility is intended to reduce the risk of adverse immune responses, further enabling repeat dosing.

The second modality, PlaCCine, extends the same non-viral DNA technology for the delivery of viral antigens, designed to elicit strong immune responses for potential vaccine applications in infectious diseases and potentially cancer. This platform is characterized by a flexible plasmid vector capable of expressing single or multiple antigens delivered via a synthetic system that protects the DNA and facilitates cellular uptake. PlaCCine's stated advantages include exceptional stability (viable for one year at 4°C and one month at 37°C), rapid adaptability to new variants or pathogens, potential for longer-lasting protection compared to some existing vaccine technologies like mRNA, and cost-effective manufacturing.

Compared to large pharmaceutical competitors like Merck (MRK), Bristol-Myers Squibb (BMY), and AstraZeneca (AZN), which dominate the broader oncology and immunotherapy markets with established checkpoint inhibitors (Keytruda, Opdivo) and targeted therapies (Lynparza), Imunon is a significantly smaller, pre-revenue entity. These larger players benefit from vast resources, global distribution networks, and diverse pipelines. However, Imunon's differentiated DNA-based delivery technology offers a unique mechanism of action, particularly the localized cytokine production with IMNN-001, which could provide a competitive edge in specific patient populations or disease settings where systemic approaches face limitations or toxicity challenges. The ability to potentially induce durable, localized immune responses without significant systemic side effects represents a distinct strategic positioning in the competitive landscape.

The OVATION Story: Translating Science into Survival Benefits

The investment narrative for Imunon is currently centered on the compelling clinical data generated by its lead program, IMNN-001. The journey began with the Phase 1 OVATION 1 study, which provided crucial translational evidence that the TheraPlas technology was functioning as designed. Data from OVATION 1 showed dose-dependent increases in IL-12 and IFNγ primarily within the peritoneal fluid, alongside favorable changes in the tumor microenvironment, including decreased immunosuppressive markers (Foxp3, PD-1, PDL-1, IDO-1) and increased CD8+ T cells. This study also demonstrated promising early clinical activity, with a median PFS of 21 months in the per-protocol population, and established the therapy's favorable tolerability profile.

Building on this foundation, Imunon advanced IMNN-001 into the randomized Phase 2 OVATION 2 study, enrolling 112 women with newly diagnosed advanced ovarian cancer. This trial compared IMNN-001 plus standard neoadjuvant and adjuvant chemotherapy (NACT) against NACT alone. The results from OVATION 2 have been transformative for the company. Topline data announced in July 2024 showed a clinically meaningful increase in median overall survival (OS) of 11.1 months in the intent-to-treat (ITT) population treated with IMNN-001 compared to standard of care, representing a 35% improvement in survival (Hazard Ratio [HR] 0.74). Updated data in December 2024, with an additional seven months of follow-up, further strengthened this finding, showing the median OS benefit increasing to 13 months (HR 0.69). In the per-protocol population (approximately 90% of patients receiving at least 20% of planned doses), the OS benefit was even more pronounced, showing a 15.7-month increase in July 2024, which grew to 17 months by the Q3 2024 update.

Perhaps most notably, in the subgroup of patients who also received PARP inhibitors as maintenance therapy (nearly 40% of trial participants), the OS benefit was particularly striking. The HR in this subgroup was 0.41 in July 2024, improving to 0.38 in December 2024. Median OS in the IMNN-001 treatment arm for this subgroup had not yet been reached at the time of data lock, compared to 37.1 months in the control arm. These data suggest a potential synergistic effect with PARP inhibitors, which is a critical consideration given the evolving standard of care. OVATION 2 also showed benefits in secondary endpoints, including an approximately 20% higher R0 tumor resection score and a doubling of the chemotherapy response score (CRS) 3 (approximately 30% vs. 14% in the control arm), both considered prognostic indicators in ovarian cancer. Crucially, IMNN-001 maintained a favorable safety profile in OVATION 2, with no reports of cytokine release syndrome or serious immune-related adverse events, a significant advantage over previous attempts to utilize IL-12 systemically.

The strength and consistency of the OVATION 2 data, particularly the unprecedented OS benefit in a frontline setting, have garnered attention. The results were presented in a late-breaking session at SITC 2024 and accepted for oral presentation at the prestigious ASCO 2025 meeting, with simultaneous publication in the peer-reviewed journal Gynecologic Oncology. New translational data presented in February 2025 further validated the mechanism, showing a 20% increase in IL-12 levels in peritoneal fluid with the 100 mg/m² dose (selected for Phase 3) compared to a lower dose, accompanied by local increases in IFNγ and TNFα, while systemic IL-12 levels remained low.

Based on these compelling results, Imunon has received support from the FDA to advance IMNN-001 into a Phase 3 pivotal trial, OVATION 3. Following positive End-of-Phase 2 and Type C CMC meetings in Q4 2024, the FDA aligned with the proposed protocol in March 2025, and the first trial site was initiated in May 2025. OVATION 3 will evaluate IMNN-001 (100 mg/m² IP weekly) plus NACT versus SoC NACT alone in approximately 500 newly diagnosed Stage III/IV ovarian cancer patients. The primary endpoint is OS. A strategic element of the design is an initial focus on enrolling the HRD-positive subgroup (approximately 250 patients), where the strongest effect was seen in OVATION 2. This approach is intended to be more cost-effective and potentially yield an earlier readout (potentially two years sooner) for this significant patient population (representing half of the neoadjuvant market) before potentially expanding to the full ITT population. The statistical plan includes interim analyses based on HRD events.

Operationally, Imunon has established internal GMP manufacturing capabilities in Huntsville, Alabama, for IMNN-001. A positive CMC meeting with the FDA in December 2024 validated this capability, agreeing on the IFNγ potency assay for clinical and commercial release and the comparability strategy for in-house components. This vertical integration is expected to keep clinical trial costs lower and provide an attractive cost of goods profile for future commercialization.

Beyond OVATION 3, Imunon is also evaluating IMNN-001 in a Phase 2/3 MRD study in collaboration with the Breakthrough Cancer Foundation. This trial combines IMNN-001 with bevacizumab and NACT in newly diagnosed patients, assessing minimal residual disease (MRD) via second look laparoscopy. As of March 31, 2025, fourteen patients were enrolled, and preliminary results are expected later in 2025. This study could provide valuable insights into combination strategies and maintenance therapy.

PlaCCine Platform: A Strategic Asset for Partnership

While IMNN-001 in ovarian cancer is the primary focus, Imunon's PlaCCine platform represents a strategic asset with potential for non-dilutive funding. The company completed a Phase 1 proof-of-concept trial (IMNN-101) evaluating a COVID-19 booster vaccine candidate based on this platform. The Phase 1 study, which completed dosing in Q3 2024, enrolled 24 healthy volunteers previously vaccinated against the Omicron XBB1.5 variant.

Results announced in February 2025 showed IMNN-101 was safe and well-tolerated, inducing a persistent 2- to 4-fold increase in serum neutralizing antibody (NAb) titers from baseline through Week 4, demonstrating cross-reactivity against newer variants. Six-month durability data released in May 2025 showed NAb titers maintained up to a 3-fold median increase from baseline at six months, with a trend towards stronger responses at higher doses.

Management views IMNN-101 as a successful proof-of-concept for the PlaCCine platform's ability to generate immunogenicity in humans using a simple needle injection, highlighting its stated advantages in stability, adaptability, and manufacturing ease compared to existing mRNA vaccines. Given the platform's potential applications beyond COVID-19, including other infectious diseases (over 80 new pathogenic viruses discovered since 1980) and potentially cancer vaccines, Imunon intends to seek partnership or licensing opportunities for the PlaCCine platform to support its core oncology programs. This strategy reflects management's prioritization of IMNN-001 while seeking to leverage the value of its secondary technology platform.

Financial Realities and the Path Ahead

Despite the significant clinical momentum generated by the OVATION 2 data and the clear path forward for the Phase 3 OVATION 3 trial, Imunon faces substantial financial challenges. As a pre-revenue clinical-stage company, it has incurred significant operating losses since inception, with a cumulative net loss of approximately $411 million as of March 31, 2025. For the first quarter of 2025, the company reported a net loss of $4.1 million, an improvement from the $4.9 million net loss in Q1 2024, primarily driven by a decrease in R&D expenses ($2.17 million in Q1 2025 vs. $3.29 million in Q1 2024) due to lower PlaCCine program costs as that trial concluded. However, G&A expenses increased ($1.98 million vs. $1.72 million), mainly due to higher employee-related costs.

Liquidity remains a critical concern. As of March 31, 2025, Imunon had only $2.9 million in cash and cash equivalents and a negative net working capital of $0.7 million. The company used $2.8 million in cash for operating activities in Q1 2025. Management has explicitly stated that its current capital is not expected to be sufficient to fund operations for the next twelve months, leading to substantial doubt regarding the company's ability to continue as a going concern.

Funding the estimated $50 million cost of the pivotal Phase 3 OVATION 3 trial requires significant additional capital. Imunon has utilized its ATM facility, raising $105,693 net proceeds in Q1 2025, and completed a registered direct offering in July 2024 raising approximately $9 million net proceeds. A private placement announced in May 2025 aims to raise up to $9.75 million. While these efforts provide some runway, management's guidance indicates the current cash position, even accounting for costs associated with starting the Phase 3 trial, extends only late into June 2025.

Management's plan to address this funding gap includes further equity financings, seeking corporate partnerships for IMNN-001, and pursuing licensing opportunities for the PlaCCine platform. They aim to fund the Phase 3 trial in full and expect fundraising to be an iterative process, potentially driven by clinical catalysts. However, the ability to raise sufficient capital on acceptable terms is not assured and is subject to volatile financial market conditions and global economic factors. Failure to secure adequate funding could necessitate delaying, reducing the scope of, or terminating development programs, or obtaining funds on unfavorable terms, which would significantly impact the investment thesis.

Compared to larger competitors with robust cash flows and access to diverse financing options, Imunon's limited financial resources represent a significant vulnerability. This disparity in scale could affect the pace of clinical development, manufacturing capabilities, and future commercialization efforts.

Risks and Challenges

Investing in Imunon carries significant risks inherent in the clinical-stage biotechnology sector. The most prominent risks include:

• Clinical Trial Success: The success of IMNN-001 hinges on the outcome of the pivotal Phase 3 OVATION 3 trial. Despite promising Phase 2 data, there is no guarantee that these results will be replicated in a larger, confirmatory study. The inherent uncertainty in drug development means failure is possible at any stage.
• Financing Risk: The company requires substantial capital to complete the Phase 3 trial and pursue regulatory approval and commercialization. Its current cash position is insufficient, and the ability to raise necessary funds through equity or partnerships is uncertain, particularly in challenging market conditions. Dilution from future equity raises is likely.
• Regulatory Approval: While the FDA has aligned on the Phase 3 protocol, there is no guarantee that the trial results will be sufficient to obtain regulatory approval for IMNN-001 in the US or other territories.
• Patient Enrollment: The pace of the Phase 3 trial depends on successful patient enrollment across multiple sites, which can be challenging.
• Competition: The ovarian cancer treatment landscape is competitive, with established players and ongoing research into new therapies. While IMNN-001 offers a differentiated approach, competitive products could emerge or existing therapies could improve, impacting market potential.
• Commercialization: Even if approved, successful commercialization depends on market acceptance, pricing, reimbursement, and the ability to establish sales and distribution capabilities, which is particularly challenging for a small company.
• Intellectual Property: Protecting the company's proprietary technology and drug candidates is critical but subject to the complexities and uncertainties of patent prosecution and enforcement.

Conclusion

Imunon stands at a pivotal juncture, buoyed by the truly unprecedented overall survival data from its Phase 2 OVATION 2 trial for IMNN-001 in newly diagnosed advanced ovarian cancer. The data suggest that the company's differentiated TheraPlas DNA immunotherapy, which enables localized IL-12 production, has the potential to offer a meaningful life-extending benefit in a disease setting that has seen limited progress for decades. Regulatory alignment for the Phase 3 OVATION 3 trial underscores the potential path forward. Furthermore, the PlaCCine platform offers a validated technology with potential for non-dilutive funding through partnership.

However, the significant financial requirements to fund the estimated $50 million Phase 3 trial represent a critical hurdle. The company's limited cash runway necessitates successful and timely capital raises. The investment thesis hinges on the ability to translate the promising Phase 2 results into a successful Phase 3 outcome and secure the necessary funding to bring this potentially transformative therapy to patients. While the clinical data provide a strong foundation, the financial and execution risks are substantial and must be carefully considered by investors. The coming quarters will be crucial in demonstrating the ability to secure the required capital and maintain momentum in the pivotal trial.

Conclusion

Imunon stands at a pivotal juncture, buoyed by the truly unprecedented overall survival data from its Phase 2 OVATION 2 trial for IMNN-001 in newly diagnosed advanced ovarian cancer. The data suggest that the company's differentiated TheraPlas DNA immunotherapy, which enables localized IL-12 production, has the potential to offer a meaningful life-extending benefit in a disease setting that has seen limited progress for decades. Regulatory alignment for the Phase 3 OVATION 3 trial underscores the potential path forward. Furthermore, the PlaCCine platform offers a validated technology with potential for non-dilutive funding through partnership.

However, the significant financial requirements to fund the estimated $50 million Phase 3 trial represent a critical hurdle. The company's limited cash runway necessitates successful and timely capital raises. The investment thesis hinges on the ability to translate the promising Phase 2 results into a successful Phase 3 outcome and secure the necessary funding to bring this potentially transformative therapy to patients. While the clinical data provide a strong foundation, the financial and execution risks are substantial and must be carefully considered by investors. The coming quarters will be crucial in demonstrating the ability to secure the required capital and maintain momentum in the pivotal trial.