Immunomedics Inc. – Nasdaq: IMMU
Immunomedics, Inc. (Nasdaq: IMMU) is a biopharmaceutical company that specializes in anti-body therapeutics for the treatment of cancer, auto-immune disorders, and other serious diseases. Shares responded favorably to the company’s earnings statement on February 9, 2017 – ending up about 3% to $4.15. However, IMMU gapped up on Friday’s open to $4.64 and hit a high of $5.89 on news that it has entered an exclusive global licensing agreement with Seattle Genetics, Inc. (Nasdaq: SGEN), an innovative global biotechnology company that develops and commercializes novel antibody-drug conjugates (ADCs) for the treatment of cancer. Under the agreement, Seattle Genetics (Nasdaq: SGEN) will develop, fund, manufacture and commercialize IMMU-132, Immunomedics Inc.’s (Nasdaq: IMMU) proprietary solid tumor therapy candidate. IMMU closed Friday trading with over a 20% gain.
Despite the positive reaction from the market, Immunomedics Inc. (Nasdaq:IMMU) largest shareholders, venBio Delect Advisor LLC, released a strongly worded press release criticizing the deal and Immunomedic Inc.’s management:
“Immunomedics’ announcement of a deal with Seattle Genetics is a blatant and shameful maneuver by the current Board and management to manipulate the outcome of the upcoming Annual Meeting and entrench themselves at the expense of stockholders’ best interests, and venBio is exploring all options to hold them accountable. The current Board’s attempt to claim that the timing of this partnership – four business days before the Annual Meeting – is coincidental and was motivated purely by a desire to identify the best deal is preposterous and clearly disingenuous, in our view, especially when they have agreed to an aberrantly short six business day go-shop period.”
The press release from New York, NY-based venBio continued: “The bottom line is that what the current Board says cannot be trusted, and their credibility with stockholders has long ago been squandered. The fact that all three proxy advisory firms – ISS, Glass Lewis, and Egan Jones – recommended for our full slate of four nominees, as well as the market’s unenthusiastic reaction to this deal, further demonstrates that this is the case.”
venBio Select Advisor LLC is the SEC registered investment manager for venBio’s public markets strategy and its main equity investment vehicle – the venBio Select Fund – which primarily invests across the biotechnology and therapeutics sector.
IMMU shareholders may have cause to join with venBio’s statement of concern. Immunomedics Inc.’s (Nasdaq: IMMU) financial performance has not been stellar. Sales in 2012 were a reported $32.7 million and have declined to $3.2 million in 2016. EPS for IMMU has seen a similar trajectory. In 2012 IMMU shares had an EPS of $0.02. Since then the trend has been steadily downward and in 2016 IMMU EPS showed a loss of $0.62. Two firms follow Immunomedics Inc. One rates IMMU shares as a “Strong Buy”, while the other rates the shares as a “Hold”.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
|Last Price a/o 7:58 PM EST||$ 5.22|
|Market Cap (mlns)||$ 557.83|
|Shares Outstanding (mlns)||106.66|
|Share Float (mlns)||99.57|
|Short Interest Ratio||12.34|