Immunic, Inc. Reports Second Quarter 2022 Financial Results and Provides Corporate Update - Initial Clinical Activity Results of IMU-935 in Psoriasis Expected in the Fourth Quarter - - Unblinded Safety Data from the Sing

Immunic, Inc. Reports Second Quarter

2022 Financial Results

and Provides Corporate Update

Initial Clinical Activity Results of IMU-935 in Psoriasis Expected in the Fourth Quarter -

Unblinded Safety Data from the Single and Multiple Ascending Dose Parts of

Phase 1 Clinical Trial of IMU-856 in Healthy Human Subjects Expected in the Third Quarter -

$88.1 Million in Cash and Cash Equivalents Expected to Fund Immunic

Into the Fourth Quarter of 2023 -

Webcast to be Held Today, August 4, 2022, at 8:00 am ET -

August 4, 2022 - Immunic, Inc. (Nasdaq: IMUX), a clinical-stage

biopharmaceutical company developing a pipeline of selective oral immunology therapies focused on treating chronic inflammatory and autoimmune

diseases, today announced financial results for the second quarter ended June 30, 2022 and provided a corporate update.

"The second quarter was a period of continued

progress in each of our key clinical programs, setting the stage for important data readouts during the second half of this year, including

for IMU-935, a highly potent and selective oral IL-17 inhibitor, and IMU-856, an orally available and systemically acting small molecule

shown preclinically to regulate intestinal barrier function and regenerate bowel epithelium," stated Daniel Vitt, Ph.D., Chief Executive

Officer and President of Immunic. "Most notably, we look forward to reporting initial clinical activity data from part C of our

phase 1 clinical trial of IMU-935 in moderate-to-severe psoriasis patients in the fourth quarter of this year. Additionally, during the

third quarter, we expect to report unblinded safety data from both the single (SAD) and multiple ascending dose (MAD) parts of our phase

1 clinical trial of IMU-856 in healthy human subjects."

Dr. Vitt continued, "As we reported in June,

the top-line data from our phase 2 CALDOSE-1 trial of our selective oral DHODH inhibitor, vidofludimus calcium (IMU-838), in patients

with moderate-to-severe ulcerative colitis (UC), did not meet its primary endpoint due to a previously unknown interaction

with chronic concurrent steroid use. Based on a post-hoc analysis of our phase 2 EMPhASIS trial in relapsing-remitting multiple sclerosis

(RRMS) patients, we do not believe this will be an issue for our ongoing program in multiple sclerosis (MS) as chronic administration

of corticosteroids is not generally used in this patient population or permitted in our ongoing MS trials. Based on the totality

of data generated thus far, demonstrating an impressive suppression of MRI lesions, evidence for neuroprotective effects and an unrivaled

safety and tolerability profile, we remain highly optimistic about the potential for vidofludimus

calcium to become a highly differentiated and uniquely valuable treatment option in relapsing multiple sclerosis (RMS)."

Second Quarter 2022 and Subsequent Highlights

Anticipated Clinical Milestones

Financial and Operating Results

For the six months ended June 30,

2022, R&D expenses were $34.0 million, as compared to $27.3 million for the same period ended June 30, 2021. The $6.7 million increase

reflects (i) a $12.1 million increase in external development costs related to the ongoing clinical trials of vidofludimus calcium for

the phase 3 program in RMS and the phase 2 trial in PMS, IMU-935 and IMU-856, and (ii) a $1.8 million increase in personnel expense in

research and development, $0.7 million of which is related to non-cash stock compensation expense and the remainder of which is related

to an increase in headcount. The increases were partially offset by (i) a $6.3 million decrease in external development costs related

to clinical trials of vidofludimus calcium related to COVID-19 and UC, and (ii) a decrease of $0.9 million in external development costs

across numerous categories.

For the six months ended June 30 ,2022,

G&A expenses were $8.1 million, as compared to $7.1 million for the same period ended June 30, 2021. The $1.0 million increase was

primarily due to personnel expenses, $0.3 million of which is related to non-cash stock compensation expense and the remainder of which

is related to an increase in headcount.

For the six months ended June 30,

2022, other expense was ($0.7 million), as compared to ($0.9 million) for the same period ended June 30, 2021. The $0.2 million decrease

was primarily attributable to an increase in research and development tax incentives for clinical trials in Australia as a result of increased

spending on clinical trials in Australia as well as the impact of foreign exchange rates on loans between Immunic AG and Immunic Australia

Pty Ltd, partially offset by an increase in the loss on an intercompany loan between Immunic, Inc. and Immunic AG.

Net loss for the six months ended

June 30, 2022, was approximately $42.7 million, or $1.49 per basic and diluted share, based on 28,686,910 weighted average common shares

outstanding, compared to a net loss of approximately $52.5 million, or $2.44 per basic and diluted share, based on 21,463,656 weighted

average common shares outstanding for the same period ended June 30, 2021.

will host a webcast today at 8:00 am ET. To participate in the webcast, please register in advance at: https://imux.zoom.us/webinar/register/WN_alOspcfoRBWZpGzVMIbfFg

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

Registrants will receive a confirmation email containing a link for online participation or a telephone number for dial in access.

An archived replay of the webcast will be available

approximately one hour after completion on Immunic's website at: ir.imux.com/events-and-presentations.

Immunic, Inc. (Nasdaq: IMUX) is a clinical-stage

biopharmaceutical company with a pipeline of selective oral immunology therapies focused on treating chronic inflammatory and autoimmune

diseases. The company is developing three small molecule products: its lead development program, vidofludimus calcium (IMU-838), a selective

immune modulator that inhibits the intracellular metabolism of activated immune cells by blocking the enzyme DHODH and exhibits a host-based

antiviral effect, is currently being developed as a treatment option for multiple sclerosis, and primary sclerosing cholangitis. IMU-935,

a selective inverse agonist of the transcription factor ROR /ROR t, is targeted for development in psoriasis, and castration-resistant

prostate cancer. IMU-856, which targets the restoration of the intestinal barrier function, is targeted for development in diseases involving

bowel barrier dysfunction. For further information, please visit: www.imux.com.

Statement Regarding Forward-Looking Statements

release contains "forward-looking statements" that involve substantial risks and uncertainties for purposes of the safe harbor

provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included

in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, sufficiency

of cash, expected timing and results of clinical trials, prospects, plans and objectives of management are forward-looking statements.

Examples of such statements include, but are not limited to, statements relating to Immunic's three development programs and the

targeted diseases; the potential for Immunic's development programs to safely and effectively target diseases; preclinical and clinical

data for Immunic's development programs; the timing of current and future clinical trials and anticipated clinical milestones; the

nature, strategy and focus of the company and further updates with respect thereto; the development and commercial potential of any product

candidates of the company; and the company's expected cash runway. Immunic may not actually achieve the plans, carry out the intentions

or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking

statements. Such statements are based on management's current expectations and involve substantial risks and uncertainties. Actual

results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including,

without limitation, the COVID-19 pandemic, impacts of the Ukraine - Russia conflict on planned and ongoing clinical trials, risks

and uncertainties associated with the ability to project future cash utilization and reserves needed for contingent future liabilities

and business operations, the availability of sufficient financial and other resources to meet business objectives and operational requirements,

the fact that the results of earlier preclinical studies and clinical trials may not be predictive of future clinical trial results, the

protection and market exclusivity provided by Immunic's intellectual property, risks related to the drug development and the regulatory

approval process and the impact of competitive products and technological changes. A further list and descriptions of these risks, uncertainties

and other factors can be found in the section captioned "Risk Factors," in the company's Annual Report on Form 10-K

for the fiscal year ended December 31, 2021, filed with the SEC on February 24, 2022, and in the company's subsequent filings with

the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov or ir.imux.com/sec-filings. Any forward-looking

statement made in this release speaks only as of the date of this release. Immunic disclaims any intent or obligation to update these

forward-looking statements to reflect events or circumstances that exist after the date on which they were made. Immunic expressly disclaims

all liability in respect to actions taken or not taken based on any or all the contents of this press release.

Head of Investor Relations and Communications

Rx Communications Group

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)