Why ImmunoGen Inc. Shares Roared Higher

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ImmunoGen (NASDAQ: IMGN  )  -- an anticancer therapeutics company that develops in-house and partnered compounds utilizing its targeted antibody payload technology -- soared by as much as 14% after announcing a collaborative licensing agreement with Novartis (NYSE: NVS  ) .

So what: According to ImmunoGen's press release today, ImmunoGen's granted Novartis a license to use its proprietary TAP technology for the study of an unspecified cancer target. This would mark the third such collaborative agreement between Novartis and ImmunoGen and the fifth large licensing deal ImmunoGen has struck just this year with big pharmaceutical companies. ImmunoGen also notes that the terms for this licensing agreement were consistent with the agreement announced exactly one month ago today with Novartis whereby it receives an upfront payment and has the ability to earn up to another $200 million in royalties.

Now what: This is precisely the sort of pick-me-up that shareholders needed after ImmunoGen shelved its most advanced in-house therapy, IMGN901, last week. One thing to remember about ImmunoGen and its proprietary TAP technology is that it does have an approved drug already on the market in Kadcyla. Therefore, the efficacy of its technology isn't so much in question anymore, which lends itself to multiple collaborative and licensing opportunities. It's for this reason -- as well as its more than one dozen combined in-house and partnered trials that are ongoing -- that I feel ImmunoGen needs to remain a biotech you watch very closely!

A high growth stock to rival ImmunoGen
ImmunoGen's expansive pipeline offers plenty of potential -- but so does this incredible tech stock -- which is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this company will be a huge winner in 2013 and beyond. Just click here to watch!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2721920, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:41:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement