If you liked the gains generated by ImmunoGen (IMGN) in 2020, you're loving the stock in 2021. So far this year, the biotech's shares have soared 32%. And that momentum is now likely to build even more.

ImmunoGen announced its fourth-quarter results before the market opened on Friday. Investors liked what they saw. Here are the highlights of ImmunoGen's Q4 update.

Scientist holding two test tubes

Image source: Getty Images.

By the numbers

ImmunoGen reported revenue in the fourth quarter of $85.8 million. This reflected a 91% jump from revenue of $44.9 million in the prior-year period. This result blew past the Wall Street consensus estimate of $40.8 million.

The drugmaker reported net income in the fourth quarter of $31.4 million, or $0.16 per share, based on generally accepted accounting principles (GAAP). This was a massive improvement over GAAP earnings of $4.8 million, or $0.03 per share, posted in the same quarter of 2019. It was also much better than the average analyst estimate of a Q4 net loss of $0.08 per share.

ImmunoGen ended the fourth quarter with cash, cash equivalents, and short-term investments of $239.9 million. This was an increase from the $176.2 million on hand as of Dec. 30, 2019.

Behind the numbers

Most of ImmunoGen's revenue in the fourth quarter came from license and milestone fees of $62.4 million. This amount was more than double the total from the prior-year period. The big jump stemmed from the recognition of $60.5 million in up-front fees already received from the biotech's collaboration with Jazz Pharmaceuticals, which recently announced plans to acquire GW Pharmaceuticals

ImmunoGen also reported noncash royalty revenue of $23.4 million in the fourth quarter. In the prior-year period, the company's noncash royalty revenue totaled $15.3 million. This growth was driven by increasing sales of breast cancer drug Kadcyla, which is marketed by Roche

The company's total operating expenses in Q4 jumped 35% year over year to $49.3 million. However, the added revenue from the big up-front fee from Jazz more than offset this increase, resulting in a significantly improved bottom line.

Looking ahead

ImmunoGen expects that revenue for full-year 2021 will be between $65 million and $75 million. The company anticipates operating expenses of $200 million to $210 million. It also projects cash and cash equivalents of between $140 million and $150 million at the end of this year, which should be enough to carry the company into the second half of 2022.

The biotech stock could have a major catalyst on the way later this year. ImmunoGen expects to report top-line results from its late-stage study of mirvetuximab soravtansine in ovarian cancer in the third quarter. If those results are positive, the company plans to file for U.S. regulatory approval by the end of 2021.