Please ensure Javascript is enabled for purposes of website accessibility

Why ImmunoGen, Inc. Stock Jumped Higher Today

By Brian Orelli, PhD - Apr 13, 2017 at 3:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Momentum takes over the biotech's shares.

What happened

ImmunoGen (IMGN -1.37%) is up 10.1% at 3:27 p.m. EDT, having been up as much as 13.5% today with no obvious news to justify a double-digit move.

So what

The biotech's shares haven't been this high since last Thursday, when ImmunoGen closed at $3.24.

In other words, while this is a big one-day move, it's not necessarily a reset of the company's valuation. The move is more likely just day-traders piling on perceived momentum after shares fell earlier in the week -- again for no apparent reason. Where it'll stop on Monday is anyone's guess.

Electronic stock chart with map of world in the background

Image source: Getty Images.

Investors interested in focusing on fundamentals should be paying attention to ImmunoGen's lead drug mirvetuximab soravtansine -- specifically a phase 1b/2 trial called FORWARD II testing the drug in combination with Avastin, carboplatin, Doxil, or Keytruda. Management has previously disclosed that the data would be released during the second quarter, which started 12 days ago.

Management also said to expect pooled data from phase 1 trials testing mirvetuximab soravtansine in patients with ovarian cancer, including some data for patients taking steroid eye drops to manage a side effect of the drug.

Ultimately, investors should be focused on ImmunoGen's phase 3 FORWARD I trial in patients with platinum-resistant ovarian cancer that's required to gain marketing approval, but the trial only enrolled its first patient in January, so it'll be a few years until data from that trial is available.

Now what

While investors have a long time to wait for mirvetuximab soravtansine to get approved -- management is shooting for 2020 -- if the data from FORWARD II and the pooled phase 1 data are positive, investors should have more confidence that FORWARD I will ultimately succeed.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ImmunoGen, Inc. Stock Quote
ImmunoGen, Inc.
IMGN
$4.31 (-1.37%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.