Market Disapproves of ImmunoGen, Inc. (NASDAQ:IMGN) Q2 Financials

ImmunoGen, Inc. (NASDAQ:IMGN)

Shareholders of ImmunoGen, Inc. (NASDAQ:IMGN) were underwhelmed by the biotech firm’s Q2 2017 financial results as the stock dropped nearly 15% today. The loss comes despite ImmunoGen reporting a narrower Q2 2017 (-$0.10) cent per share loss than the expected street estimate loss of (-$0.14).

ImmunoGen, Inc. (NASDAQ:IMGN)
One month daily candlebar graph for $IMGN

ImmunoGen, Inc. (NASDAQ:IMGN) revenues increased by 427% YoY to $39 million which beat the consensus estimate by $5 million. The revenue increase was driven by higher license and milestone fees totalling $31.1 million compared with the $0.08 million a year ago. This  figure includes a $30 million paid-up license fee related to a licensing agreement with Sanofi SNY and $1 millionphase I milestone payment from the collaboration agreement with CytomX Therapeutics. ImmunoGen’s agreement with CytomX allows each company to develop candidates to a specified number of cancer targets using CytomX’s Probody antibody-masking technology. ImmunoGen’s cash and cash equivalents at the end of Jun 2017 were $150.3 million compared with $126.6 million as of Dec 2016. The company expects to use its current cash and expected cash to fund operations through the second quarter of 2018.

ImmunoGen, Inc. (NASDAQ:IMGN) developed their proprietary ADC technology to enable the development of cancer therapies. The concept of an ADC is to deploy an antibody that will attach itself to a target (its antigen) found on tumor cells to deliver a cancer-killing agent specifically to these cells.

ImmunoGen has built a large portfolio of ADC technologies. Their technology is used in Roche’s Kadcyla® (ado-trastuzumab emtansine) – the only ADC approved to treat a type of solid tumor – and in two other ADCs now in advanced testing for different types of solid tumors.

Prior to today’s financial release, shares of ImmunoGen, Inc. (NASDAQ:IMGN) had risen over 191% YTD and over 110% for the year. In 2014, reported sales hit their high mark of $86.5 million but in 2015 the figure was $60 million and for 2016 the number came in at just $21.5 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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