==ImmunoGen (IMGN) to be acquired by AbbVie (ABBV) for $10.1 billion

 

AbbVie (ABBV) has agreed to buy ImmunoGen (IMGN) for $10.1 billion in cash, offering a rich premium for the maker of ovarian cancer treatment drug Elahere, the company said Thursday. AbbVie will pay $31.26 per share for IMGN stock. That's a roughly 95% premium to the biotech firm's closing price on Wednesday.

AbbVie, based in North Chicago, Ill., said it expects to complete the acquisition in the middle of 2024.

"The acquisition of ImmunoGen demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies," AbbVie Chief Executive Richard Gonzalez said in a statement.

IMGN Stock: Daiichi Competition

On today's stock market, IMGN stock popped 82.8% to close at 29.35. ABBV stock rose 2.8% to 142.39.

Waltham, Mass.-based ImmunoGen is a leader in the field of antibody-drug conjugates (ADCs) for the treatment of cancer.

Elahere is a treatment for patients with a specific form of ovarian cancer. It targets a receptor called folate receptor alpha.

In a note to clients, Truist Securities analyst Asthika Goonewardene said Elahere faces growing competition from Daiichi. "However with a partner like AbbVie, who has much deeper pocket and marketing prowess, we anticipate Elahere will be able to compete better against Daiichi's R-DXd, and leverage its early mover advantage," Goonewardene said.

AbbVie reported third quarter earnings that topped estimates, but sales of its Humira arthritis therapy drug continued to plummet.

During the September quarter, AbbVie earned an adjusted $2.95 per share on $13.93 billion in revenue. Earnings for AbbVie came in better than expectations for $2.87 a share, but skidded 19.4% year over year.

AbbVie's Humira Sales Tumble

Meanwhile, Humira sales tumbled 36% to $3.55 billion following the launch of biosimilar rivals this year in the U.S.

Also, sales of aesthetic treatments, which includes AbbVie's Botox, fell 4.7% on a reported basis to $1.24 billion.

On Nov. 2, ImmunoGen reported better-than-expected earnings and sales, lifting IMGN stock. The company earned 10 cents a share on sales of $113.4 million. In the year-ago period, ImmunoGen lost 31 cents a share. Sales surged 638% year over year.

Unusual Options Activity, Fri 5/19/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• RRC May 30 calls (volume: 1540, open int: 170, implied vol: ~85%, prev day implied vol: 60%). Stock was upgraded to Buy from Neutral at Mizuho; tgt raised to $35. Co is expected to report earnings late July.
• IMGN Jun 15 calls (volume: 3630, open int: 560, implied vol: ~75%, prev day implied vol: 53%).  1050 contracts traded in a single transaction. Co is scheduled to present at a ASCO on June 2. Co is expected to report earnings late July.
• NIO May 7.5 calls (volume: 18.8K, open int: 18.5K, implied vol: ~105%, prev day implied vol: 96%). 3K traded in a single transaction. Co and Autoliv to develop safety technology for future electric vehicles. Co is confirmed to report earnings June 9 before the open.
  

Bearish Put Activity:

• MDB May 290 puts are seeing interest with the underlying stock down 5% (volume: 1800, open int: 40, implied vol: ~87%, prev day implied vol: 56%). Co is confirmed to report earnings June 1 after the close.
• PCG May 16.5 puts (volume: 1650, open int: 0, implied vol: ~26%, prev day implied vol: 23%).  Co is expected to report earnings early August.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.82, VIX: (16.80, +0.75, +4.7%).
June 16 is options expiration -- the last day to trade June equity options.

ImmunoGen (IMGN) : Ovarian cancer study results

• ImmunoGen Inc. announced positive results from its trial of mirvetuximab soravtansine in ovarian cancer.
• Notably, the SORAYA trial met its primary endpoint with a confirmed objective response rate of 32.4%.

The company said it aims to complete the Biologics License Application for mirvetuximab, its potential treatment for patients with platinum-resistant ovarian cancer, by submitting an application to the Food and Drug Administration for accelerated approval in the first quarter of 2022.

Mark Enyedy, ImmunoGen's president and CEO, said it is an "exciting moment, both for the field of ovarian cancer and for ImmunoGen," with the outcomes from the SORAYA trial "further validate our longstanding history of innovation in ADCs."

"Commercial preparations are well underway to support the potential launch of mirvetuximab next year," he added.

This week's biggest % winners & losers : Dec 16 - 20,19 (wk 51)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: IMGN (5.33 +48.88%), KZR (3.49 +29.26%), PRTA (15.85 +23.35%), CTMX (8.79 +22.77%), TRHC (46.56 +21.88%), INO (3.3 +21.32%)
• Consumer Discretionary: LOVE (13.37 +24.49%)
• Information Technology: GSKY (9.12 +26.67%)
• Energy: REGI (24.95 +40.17%), MDR (1.11 +34.48%), NE (1.2 +28.67%), HPR (1.73 +21.83%), SDRL (1.69 +21.58%), NBR (2.98 +20.65%)
• Consumer Staples: RAD (14.03 +85.34%), CAG (35.07 +23.57%)

This week's top % losers

• Healthcare: AKRX (1.71 -51.63%), TRXC (1.43 -25.52%), GRTS (7.75 -16.13%), ABEO (3.12 -14.66%), CLVS (10.98 -14.62%), ACB (2.25 -14.45%), RUBY (11.32 -13.65%), CYH (2.95 -13.24%), DRNA (23.28 -13.1%), UBX (7.27 -13.04%), AMRN (20.99 -12.98%)
• Industrials: APOG (31.8 -19.37%), TPC (13.13 -16.53%), BOOM (45 -14.63%)
• Consumer Discretionary: GRPN (2.23 -14.56%)
• Information Technology: CAMP (9.67 -14.2%), GTT (10.11 -13.37%)
• Financials: JT (1.44 -13.25%)

Long trade : IMGN +37% (12/19)

• Dec. 16:  #5, 9, 15, 22, 37, 44, 58, 72, 97; vol. 4.7M

This week's biggest % winners & losers : Feb. 25 - March 1, 19 (wk 9)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: ONCE (113.28 +119.71%), TGTX (7.21 +51.15%), PBYI (38.93 +45.91%), TNDM (69.24 +43.29%), QURE (57.31 +37.76%), HZNP (28.18 +32.92%), GH (70.59 +30.41%), BOLD (34.16 +30.03%), APLS (18.31 +28.76%), SLDB (11.35 +26.67%), CRSP (39.97 +26.21%), NTLA (16.92 +24.96%), LXRX (6.81 +23.59%), XRAY (49.13  +18.02%)
• Industrials: HSII (43.27 +27.98%), SNHY (49.53 +27.85%)
• Information Technology: ZS  (60.57  +21.68%)
• Consumer Discretionary: FTCH (28.82 +42.67%), ETSY (72.77 +28.41%), JCP (1.54 +25.2%), GPS (29.51  +19.18%)

This week's top 20 % losers

• Healthcare: NVAX (0.7 -63.41%), IMGN (2.51 -56.2%), CTMX (10.98 -38.97%), CRBP (6.3 -26.57%), INGN (106.97 -25.37%), SYNH (43.41 -22.06%), MEDP (54.74 -21.78%)
• Industrials: NCI (20.06 -25.62%), DY (46.87 -25.43%)
• Information Technology: NTNX (33.7 -36.51%), BNFT (46.04 -23.27%)
• Financials: UVE (32.8 -18.99%), HIIQ (37.21 -18.56%)
• Energy: ALTM (5.57 -31.74%), CDEV (9.27 -26.14%), SMLP (10.41 -18.93%)
• Consumer Staples: ELF (7.95 -19.29%)

Immunogen (IMGN) : ovarian cancer drug fails in a late-stage study

 

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March 1 (Reuters) - U.S. drug developer ImmunoGen Inc said on Friday its experimental ovarian cancer drug failed to meet the main goal of a late-stage study. When compared with chemotherapy, the drug, mirvetuximab soravtansine, did not significantly prolong the duration that ovarian cancer patients survived without the disease progressing.

The company said that based on the efficacy signals, overall response rate and survival, it will conduct additional analysis to evaluation the potential benefit of mirvetuximab soravtansine for FRα-positive platinum-resistant ovarian cancer. "ImmunoGen is in a strong financial position with approximately $295 million in cash on our balance sheet, and we will continue to advance our portfolio of next-generation ADCs, which includes three additional development candidates targeting a range of tumor types in both hematologic malignancies and solid tumors," said Chief Executive Mark Enyedy. The stock has tumbled 57% over the past 12 months through Thursday.

IMGN — is it a buy?

• Nov. 3, right after earnings.  Is IMGN a buy?

• Yes, it went about about 100% in the following couple of months.

Immunogen (IMGN) reported earnings on Fri 3 Nov 2017 (b/o)

** charts before earnings **

 

** charts after earnings **

Immunogen reports Q3 (Sep) results, misses on revs; updates guidance 

• Reports Q3 (Sep) loss of $0.61 per share ($57 mln), including a $22 mln charge from a debt conversion, may not be comparable to the Capital IQ Consensus of ($0.21); revenues rose 10.4% year/year to $8.5 mln vs the $26.09 mln Capital IQ Consensus. 
• ImmunoGen has updated its guidance for 2017. Cash and cash equivalents at Dec 31, 2017 are expected to be between $260 million and $265 million, compared to previous guidance of $90 million to $95 million. These changes are a result of the Jazz agreement executed in the third quarter of 2017 and the proceeds provided by the public stock offering in October 2017. Revenue guidance remains unchanged and is expected to be between $115 million and $120 million. Operating expenses are now expected to be between $170 and $175 million, compared to previous guidance of $175 to $180 million. ImmunoGen expects that its current cash combined with the expected cash revenues from partners and collaborators will enable the Company to fund its operations into the fourth quarter of 2019.
• Report updated Phase 1 clinical data for IMGN779 in adult patients with relapsed or refractory AML, IMGN779 preclinical combination data, and IMGN632 preclinical data at ASH annual meeting; Open a Phase 1 study for IMGN632 before year-end; Activate more than 100 sites globally for the FORWARD I trial by year-end; Initiate a cohort in the FORWARD II study to evaluate the triplet combination of mirvetuximab soravtansine/Avastin (bevacizumab)/carboplatin in patients with platinum sensitive folate receptor alpha (FRa)-positive epithelial ovarian cancer in 1Q 2018; and Report updated dose escalation findings from the Phase 1b/2 FORWARD II Keytruda (pembrolizumab) cohort, along with updated data from the Avastin expansion cohort in the first half of 2018. 

IMGN — is it a buy?

• Is IMGN a buy?

• A month later:

ImmunoGen (IMGN) and Jazz Pharma (JAZZ) enter Into global collaboration

 

Immunogen and Jazz Pharmaceuticals (JAZZ) have entered into a collaboration granting Jazz rights to opt into development and commercialization of two early-stage, hematology-related antibody-drug conjugate (ADC) programs, as well as an additional program to be designated during the term of the agreement(6.46 )

ImmunoGen to receive a $75 million upfront payment, up to $100 million, over seven years, in research support, a co-commercialization option, and potential future opt-in fees, milestones and royalties.

• The programs covered under the agreement include IMGN779, a CD33-targeted ADC for the treatment of acute myeloid leukemia (AML) in Phase 1 testing, and IMGN632, a CD123-targeted ADC for hematological malignancies expected to enter clinical testing before the end of the year.
• Under the terms of the agreement, ImmunoGen will be responsible for the development of the three ADC programs prior to any potential opt-in by Jazz.
  • Following any opt-in, Jazz would be responsible for any further development as well as for potential regulatory submissions and commercialization.
• IMGN779 is a novel ADC that combines a high-affinity, humanized anti-CD33 antibody, a cleavable disulfide linker, and one of ImmunoGen's novel indolino-benzodiazepine payloads, called IGNs, which alkylate DNA without crosslinking, resulting in potent preclinical anti-leukemia activity with relative sparing of normal hematopoietic progenitor cells1,2. IMGN779 is in Phase 1 clinical testing for the treatment of AML.
• IMGN632 is a preclinical stage humanized anti-CD123 antibody-based ADC that is a potential treatment for AML, blastic plasmacytoid dendritic cell neoplasm (BPDCN), myelodysplastic syndrome, B-cell acute lymphocytic leukemia, and other CD123-positive malignancies. IMGN632 uses a novel payload, linker, and antibody technology and in AML xenograft models has demonstrated a large therapeutic index3.
• ImmunoGen expects to file an investigational new drug application (IND) for IMGN632 this quarter and enroll the first patient in a Phase 1 study before the end of the year.

IMGN — is it a buy?

• Apr. 13:   #15;  Is IMGN a buy?   $3.12

• One week later:   $4.13  (+30%)

• 5 days later