What happened

Shares of ImmunoGen (IMGN) were sinking 11.1% lower as of 11:03 a.m. EST on Tuesday. The decline appears to be the result of profit-taking following the biotech's blowout fourth-quarter results announced on Friday. ImmunoGen handily beat Wall Street's top- and bottom-line estimates for Q4. It also provided full-year 2020 guidance that was above analysts' expectations.

So what

Today's movement is only noise. For that matter, so was ImmunoGen's big jump in share price on Friday. What really matters for ImmunoGen is what matters for most biotech stocks -- achieving pipeline success.

Female scientist holding two test tubes

Image source: Getty Images.

ImmunoGen has enjoyed some successes in the past. For example, the biotech licensed its antibody-drug conjugate (ADC) technology to Roche Holdings for the development of breast cancer drug Kadcyla. Now, though, ImmunoGen's hopes ride on experimental ADC mirvetuximab soravtansine.

The company expects to enroll the first patient in the first quarter of 2020 in its pivotal Soraya clinical study evaluating mirvetuximab as a second-line treatment for ovarian cancer. ImmunoGen is also enrolling patients in its late-stage Mirasol study.

Now what

ImmunoGen anticipates reporting top-line data from the Soraya study in mid-2021. If those results are positive, the company hopes to file for FDA accelerated approval of mirvetuximab in the latter part of 2021. The Mirasol study's results, which are expected in the first half of 2022, would be used as a confirmatory study to support full approval of the drug, assuming the results are positive.