Immunic, Inc. Reports Third Quarter 2019 Financial Results and Highlights Recent Activity

Immunic, Inc. Reports Third Quarter 2019

and Highlights Recent Activity

NEW YORK, November 7, 2019 - 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 financial results for the third quarter ended September

30, 2019 and highlighted recent activity.

"The third quarter was marked by

several key clinical milestones. Chief among them was the early completion of enrollment for our phase 2 EMPhASIS trial for IMU-838

in relapsing-remitting multiple sclerosis, nine months ahead of initial expectation," stated Daniel Vitt, Ph.D., Chief Executive

Officer and President of Immunic. "This achievement demonstrates our ability to execute on the program and highlights patients'

urgent need for a safer oral treatment option for this progressive, debilitating disease. We also reported positive results from

the interim dosing analysis of the CALDOSE-1 trial of IMU-838 in moderate-to-severe ulcerative colitis. Specifically, the data

indicated a potentially broader active dose range than originally thought, and the trial is continuing with all three dosing arms.

Based partially on these interim results, we anticipate beginning the phase 2 CALDOSE-2 trial in Crohn's disease next year.

Additionally, during the third quarter, our Australian subsidiary dosed the first healthy volunteer, on schedule, in the phase

1 clinical program of IMU-935, which we believe holds tremendous promise in multiple indications.

"On the operational side, I am pleased

to announce that during the first week of November, we opened an office in New York City which is planned to serve as our U.S.

corporate headquarters. The office is headed by our Chief Financial Officer, Sanjay S. Patel, who joined the company in July of

this year. Additionally, we announced the appointment of highly regarded industry veteran, Tamar Howson, to our Board of Directors

in October. Tamar has immediately begun contributing her knowledge and expertise and we are delighted to welcome her to Immunic's

growing team," Dr. Vitt added.

Third Quarter 2019 and Subsequent Highlights

Anticipated Clinical Milestones

Financial and Operating Results

For the nine months ended September

30, 2019, R&D expenses were $16.5 million, as compared to $5.4 million for the same period ended September 30, 2018. The increase

is primarily due to (i) higher external development costs for the company's IMU-838 program for the phase 2 clinical trials

in patients with relapsing-remitting multiple sclerosis and ulcerative colitis and preparation costs related to a phase 2 clinical

trial in patients with Crohn's disease totaling $7.4 million, (ii) preclinical and drug supply costs related to the IMU-856

program of $1.2 million, (iii) a contingent payment under the asset purchase agreement with 4SC AG, triggered by the stock-for-stock

exchange transaction completed on April 12, 2019 (Exchange Transaction), settled in stock, valued at $1.5 million and (iv) an increase

in drug supply costs to support clinical development of $0.7 million.

For the nine months ended September

30, 2019, G&A expenses were $12.4 million, as compared to $1.4 million for the same period ended September 30, 2018. The increase

is primarily due to (i) one-time costs related to the completion of the Exchange Transaction, including $6.4 million of stock-based

compensation for executives, key employees and members of the Board and $1.7 million in investment bank and legal fees and (ii)

$1.7 million related to becoming a public company including directors and officers liability insurance and personnel costs for

executives and staff in the U.S. corporate headquarters.

Other income for the nine months

ended September 30, 2019 was $1.6 million, as compared to $32,000 for the same period ended September 30, 2018. The increase is

primarily due to (i) a $1.1 million reimbursement of R&D expenses in connection with the option and license agreement with

Daiichi Sankyo Co., Ltd., and (ii) the $0.4 million difference between the face value and fair value of the promissory note collected

in full in September 2019 in connection with the sale of ELAD Assets, offset by a $0.1 million write-off of the equity interest

in VTL China included in the ELAD Assets sale.

Net loss for the nine months

ended September 30, 2019 was approximately $27.2 million, or $3.96 per basic and diluted share, based on 6,880,057 weighted

average common shares outstanding, compared to a net loss of approximately $6.7 million, or $7.95 per basic and diluted share,

based on 846,953 weighted average common shares outstanding for the same period ended September 30, 2018. Substantially all of

the company's operating losses have resulted from expenses incurred in connection with its R&D programs and from general

and administrative costs associated with operations.

Immunic, Inc. (Nasdaq: IMUX)

is a clinical-stage biopharmaceutical company developing a pipeline of selective oral immunology therapies aimed at treating chronic

inflammatory and autoimmune diseases, including relapsing-remitting multiple sclerosis, ulcerative colitis, Crohn's disease,

and psoriasis. The company is developing three small molecule products: IMU-838 is a selective immune modulator that inhibits the

intracellular metabolism of activated immune cells by blocking the enzyme DHODH; IMU-935 is an inverse agonist of ROR t;

and IMU-856 targets the restoration of the intestinal barrier function. Immunic's lead development program, IMU-838, is in

phase 2 clinical development for relapsing-remitting multiple sclerosis and ulcerative colitis, with an additional phase 2 trial

planned in Crohn's disease. An investigator-sponsored proof-of-concept clinical trial for IMU-838 in primary sclerosing cholangitis

is ongoing at the Mayo Clinic. For further information, please visit: www.immunic-therapeutics.com.

Cautionary Statement Regarding

Forward-Looking Statements

This press 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, 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 IMU-838, IMU-935 and IMU-856 to safely

and effectively target diseases; the timing of future clinical trials and expected results of such trials; the nature, strategy

and focus of the company; and the development and commercial potential of any product candidates of the company. 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 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, 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 resources to meet business objectives and operational requirements, the fact that the results of earlier

studies and 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. 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.

Manager IR and Communications

Rx Communications Group

Condensed Consolidated Statements of

(In thousands, except share and per share amounts)

Condensed Consolidated Balance Sheets

(In thousands, except share and per share