Please ensure Javascript is enabled for purposes of website accessibility

Why ImmunoGen Jumped Almost 14% Today

By Brian Orelli, PhD – Updated Apr 19, 2019 at 10:25AM

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

Data is coming for the biotech's lead program.

What happened

Shares of ImmunoGen (IMGN 5.60%) jumped 13.7% today on no apparent news. The biotech is scheduled to release earnings on Friday morning, but without any revenue-generating drugs, there isn't likely to be anything on the profit-loss statement that would drive its valuation higher.

So what

Instead, investors are likely jumping in ahead of expected data from the phase 3 Forward I study that's testing mirvetuximab in patients with ovarian cancer.

Management has previously guided for data to be available in the first half of this year. Six months is a fairly wide range for a data release, but the primary endpoint of the study is progression-free survival, so ImmunoGen has to wait for patients to progress before the measurement -- time to progression or death, whichever comes first -- can be taken. The time frame for data release is just an estimate based on the progression of the previous patients with some time added on to process the data.

It's possible that ImmunoGen might have the data processed and ready for release during its earnings report on Friday, but it's just as likely to come on a random day sometime between now and the end of June. Or perhaps later. It's just an estimate, after all.

Check out the latest ImmunoGen earnings call transcript.

Woman holding hands with a woman in a head scarf

Image source: Getty Images.

Now what

Long-term investors can ignore today's move. While the double-digit jump is nice, ImmunoGen's long-term valuation will be determined by the results of the Forward I study. If positive, the data should be enough to gain FDA approval for mirvetuximab in late-stage patients while also increasing the potential for the drug to work in combination with other cancer drugs in earlier-stage patients.

Brian Orelli has no position in any of the stocks mentioned. The Motley Fool recommends ImmunoGen. The Motley Fool has a disclosure policy.

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 Stock Quote
$5.66 (5.60%) $0.30

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

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.