Immunic, Inc. Announces FDA Clearance to Begin IMU-838 Phase 3 ENSURE Studies in Relapsing-Remitting Multiple Sclerosis and Phase 2 CALLIPER Study in Progressive Multiple Sclerosis - Phase 3 ENSURE Program in Relapsing-R

Inc. Announces FDA Clearance to Begin IMU-838 Phase 3 ENSURE Studies in Relapsing-Remitting Multiple Sclerosis and Phase 2 CALLIPER Study

in Progressive Multiple Sclerosis

Phase 3 ENSURE Program in Relapsing-Remitting Multiple Sclerosis (RRMS) Comprises Twin Studies Evaluating Efficacy, Safety, and Tolerability

of IMU-838 Versus Placebo, Intended to Provide Straightforward Path to Regulatory Approval -

Supportive Phase 2 CALLIPER Trial in Progressive Multiple Sclerosis (PMS), Designed to Corroborate IMU-838's Neuroprotective Potential

and Support Differentiated Profile -

Company Expects Initiation of Both ENSURE and CALLIPER in the Second Half of

Conference Call and Webcast to be Held July 1, 2021 at 8:00 am ET -

July 1, 2021 - Immunic, Inc. (Nasdaq: IMUX), a clinical-stage biopharmaceutical company focused on developing

best-in-class, oral therapies for the treatment of chronic inflammatory and autoimmune diseases, today announced U.S. Food and Drug Administration

(FDA) clearance of its Investigational New Drug (IND) application for the phase 3 ENSURE program of lead asset IMU-838, the company's

selective oral DHODH inhibitor, in patients with relapsing-remitting multiple sclerosis (RRMS). In addition, the FDA also cleared the

company's separate IND application for the supportive phase 2 CALLIPER trial of IMU-838

in patients with progressive multiple sclerosis (PMS).

The ENSURE program comprises two multicenter,

randomized, double-blind phase 3 trials designed to evaluate the efficacy, safety, and tolerability of IMU-838 versus placebo in RRMS

patients. Based on IMU-838's robust activity in preventing lesion formation in the company's phase 2 EMPhASIS trial in RRMS,

the strong and consistent correlation observed between lesion formation and clinical relapse in third-party clinical trials, and the drug's

robust safety profile to date, Immunic believes that this phase 3 program provides a simple and straightforward path towards potential

regulatory approval of IMU-838 in RRMS.

randomized, double-blind, placebo-controlled phase 2 CALLIPER trial is intended to run concurrently with and to complement the

phase 3 program in RRMS. In particular, CALLIPER is focused on progressive forms of multiple sclerosis (MS) and designed to corroborate

IMU-838's neuroprotective potential, as exemplified by slowing of brain atrophy and delay in disability worsening. Neurodegeneration

is a key concern in both PMS and RRMS, since axonal and neural damage is responsible for the increasing and often severe disability experienced

by patients. Immunic believes that, if the CALLIPER trial is successful in showing a beneficial effect of IMU-838, this data, along with

the ENSURE program and IMU-838's strong safety and tolerability profile, may allow for a meaningful clinical differentiation of

IMU-838 from other oral MS medications and an attractive commercial positioning. Although a supportive trial, Immunic does not believe

that data from the CALLIPER trial are a pre-condition for filing a New Drug Application in RRMS.

"IMU-838's phase 2 results in relapsing-remitting

multiple sclerosis showed an encouraging balance between efficacy, safety, and tolerability and I look forward to the phase 3 program

in this indication," commented Robert J. Fox, M.D., Staff Neurologist, Mellen Center for Multiple Sclerosis, Vice-Chair for Research,

Neurologic Institute, Cleveland Clinic, Cleveland, Ohio, and Coordinating Investigator of the ENSURE and CALLIPER programs. "Disability

progression is a principal concern for clinicians and patients of both PMS and RRMS. The ongoing disability worsening, even in periods

without relapse, not only diminishes quality-of-life but can also ultimately lead to profound impairments in patient mobility. There is

a clear unmet need for new therapeutic options which can help delay or arrest this process and I look forward to seeing data on IMU-838's

neuroprotective potential." Dr. Fox receives compensation as a chair of the steering committees for the ENSURE and CALLIPER programs.

"IND clearance for our phase 3 program in

RRMS is yet another seminal moment for Immunic as it progresses our lead asset, IMU-838, into a pivotal program and heralds the final

phase of clinical development in MS. We believe that the phase 3 ENSURE program meaningfully simplifies IMU-838's regulatory approval

path in MS as it applies a very clean and straightforward study design," stated Daniel Vitt, Ph.D., Chief Executive Officer and

President of Immunic. "In addition, together with our MS expert panel, we designed the CALLIPER trial to study patients who

currently are not typically treated with relapse preventing therapies. Our goal is to highlight IMU-838 as a therapy that combines truly

differentiated safety and tolerability with neuroprotective activity such as slowing of brain atrophy and disability worsening. In our

view, success in the CALLIPER trial could provide an important differentiator for IMU-838 in the MS market. We look forward to hopefully

providing IMU-838 as an important new therapeutic option to MS patients within the next few years."

Each of the identical twin phase 3 trials, titled

ENSURE-1 and ENSURE-2, is expected to enroll approximately 1,050 adult patients with active RMS

at more than 100 sites in 14 countries, including the United States, Latin America, Central and Eastern Europe, and India. Patients will

be randomized in a double-blinded fashion to either 30 mg daily doses of IMU-838 or placebo and the primary endpoint for both trials is

time to first relapse up to 72 weeks. Key secondary endpoints include volume of new T2-lesions, time to confirmed disability progression,

time to sustained clinically relevant changes in cognition, and percentage of whole brain volume change, grey matter volume, and white

matter volume. With regard to the disability progression endpoint, the ENSURE program applies a pooled analysis of disability worsening

across both trials, which may be further supported by data from the CALLIPER trial.

The ENSURE trials will be run concurrently, with

dosing of the first patient expected in the second half of 2021. An interim

analysis to assess event rates is planned to occur after a certain number of relapses have occurred in the double-blind treatment periods.

This analysis is intended to inform potential sample size adjustment and help ensure that final study readout is not planned to occur

before sufficient events have been achieved. This interim analysis is not intended as a futility analysis.

2 CALLIPER trial is expected to enroll approximately 450 patients at more than 70 sites in North America, Western, Central and Eastern

Europe with patients randomized to either 45 mg daily doses of IMU-838 or placebo in a double-blinded fashion. The trial's primary

endpoint is the annualized rate of percent brain volume change up to 120 weeks. Key secondary endpoints include the annualized rate of

change in whole brain atrophy and time to 24-week confirmed disability progression based on the expanded disability status scale (EDSS).

Dosing of the first patient is expected in the third quarter of 2021.

analysis comprising an unblinded analysis of serum neurofilament light chain (NfL) is planned to occur once approximately half of the

enrolled patients have completed 24 weeks of treatment. NfL has been shown consistently to correlate with disease activity in neurological

disorders and has become one of the most important serum biomarkers for axonal damage over the past few years. As

previously reported, results of the phase 2 EMPhASIS trial of IMU-838 in RRMS showed a robust decrease in serum NfL at 24 weeks

(-17.0% for 30 mg and -20.5% for 45 mg), as compared to baseline values, while the patients on placebo experienced a 6.5% increase in

serum NfL over the same period.

"The Immunic team is very excited to see

IMU-838 progressing into a pivotal program in RRMS. Based on its very strong safety and tolerability profile along with its robust efficacy,

which we are planning to further highlight with neuroprotective data from the CALLIPER trial, we believe that IMU-838 has the potential

to become a well-differentiated new treatment option for MS patients," added Andreas Muehler,

M.D., Chief Medical Officer of Immunic. "In our discussions with regulatory authorities, including the FDA and the European

Medicines Agency, testing IMU-838 against placebo was viewed as a reasonable approach for our phase 3 program, from both a regulatory

and scientific perspective, as placebo provides the cleanest comparator to show proof-of-efficacy and to underline IMU-838's existing

safety and tolerability profile."

Conference Call and Webcast Information

management team will host a public conference call and webcast on July 1, 2021 at 8:00 a.m. Eastern Time to discuss the company's

overall MS development strategy, the phase 3 ENSURE program in RRMS, and the phase 2 CALLIPER trial in PMS.

in the conference call, dial 1-877-870-4263 (USA) or 1-412-317-0790 (International) and ask to be joined into the Immunic, Inc. call.

A live, listen-only webcast of the conference call can be accessed at https://www.webcaster4.com/Webcast/Page/2301/39951

or on the "Events and Presentations" section of Immunic's website at ir.imux.com/events-and-presentations.

replay of conference call and webcast will be available approximately one hour after the completion for one year on Immunic's website

About Multiple Sclerosis

sclerosis (MS) is an autoimmune disease that affects the brain, spinal cord and optic nerve. In MS, myelin, the coating that protects

the nerves, is attacked and damaged by the immune system. Thus, MS is considered an immune-mediated demyelinating disease of the central

nervous system. MS affects approximately one million people in the United States, and more than 2.8 million people worldwide. The

disease mainly affects young adults of prime working age, although MS can occur at any age. MS is at least two to three times more common

in women than in men.

MS (RRMS) is the most common form of the disease. Approximately 85% of patients with MS are expected to develop RRMS, with some of these

patients later developing more progressive forms of the disease. RRMS is characterized by clearly defined attacks of new or increasing

neurologic symptoms. These relapses are followed by periods of remission, or partial or complete recovery. During remissions, all symptoms

may disappear, or some symptoms may continue and become permanent. MS is a progressive disease which, without effective treatment, leads

to severe disability.

MS (PMS) includes both primary progressive MS (PPMS) and secondary progressive MS (SPMS). PPMS is characterized by steadily worsening

neurologic function from the onset of symptoms without initial relapse or remissions. SPMS is identified following an initial relapsing

remitting course, after which the disease becomes more steadily progressive, with or without other disease activity present.

IMU-838 is an orally

available, next-generation selective immune modulator that inhibits the intracellular metabolism of activated immune cells by blocking