Why ImmunoGen shares jumped 20.3% in December
ImmunoGen Inc. (NASDAQ: IMGN), an oncology biotechnology company that specializes in using antibody-drug conjugates (ADCs) to make chemotherapy treatments more effective, saw its shares rise 20.3% in December, according to data provided by S&P Global Market Intelligence. The stock is up 15% for the year, and on Monday it was halfway between its 52-week low of $ 4.73 and its 52-week high of $ 10.88.
The share’s biggest rise in December occurred on the first day of the month, when it opened at $ 6.19 and hit $ 7.77. The jump came just after the company’s ovarian cancer drug, mirvetuximab soravtansine, was announced to have met its primary endpoint for objective response rate (ORR) in its Phase 3 trial. The company said the drug, when used as monotherapy for patients with platinum-resistant ovarian cancer who had previously been treated with Avastin, showed a confirmed ORR of 32.4%. ImmunoGen said it plans to submit a Biologics License Application (BLA) to the United States Food and Drug Administration by the next quarter and anticipates an expedited approval and launch for the drug during this. year.
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The initial positive results of the trial caught the attention of investors for several reasons. Last year, there were about 21,410 new cases of ovarian cancer in the United States, according to data from the National Cancer Institute, with 13,770 deaths from the disease in the United States A report, by Market Data Forecast, put the compound annual growth rate for ovarian cancer market at 10.1% through 2026.
Another highlight of the trial was the good tolerability of the drug. The company said the rate of adverse events was only 7% among the approximately 700 patients who received the drug. ImmunoGen is looking for more applications for mirvetuximab soravtansine, including as an earlier treatment for various forms of ovarian cancer and potentially endometrial cancer (cancer that starts in the womb).
The rise was exciting for ImmunoGen investors. However, investing in a biotech stock like ImmunoGen comes with risks and should be done with a long-term perspective. In the third quarter, it reported revenue of $ 9.2 million, just over half of the $ 18.2 million made in the same period last year. The company said the reason for the drop was because royalty payments for Kadcyla, a chemotherapy drug for breast cancer that it helped develop with rock, fell.
ImmunoGen lost $ 37.3 million in the quarter and, with $ 245.8 million in cash, will need either an injection of cash or additional income over the next four years at its rate of. current use.
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Jim Halley has no position in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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