ImmunoGen, Inc. (NASDAQ:IMGN)

CAPS Rating: 4 out of 5

The Company develops antibody-based anticancer therapeutics.

Recs

2
Player Avatar zzlangerhans (99.73) Submitted: 2/27/2013 1:38:33 AM : Underperform Start Price: $14.74 IMGN Score: +8.58

There's no question that the approval of T-DM1 for metastatic breast cancer is a great accomplishment for ImmunoGen. Where the company has fallen short is in the deal they made with Roche, in which their royalties will be only 3% of revenues up to 700M and then 5% after that. T-DM1 may become a multibillion dollar drug eventually but revenues will have to be 2.3 billion per year before ImmunoGen sees 100M of it. That potential and some phase I candidates don't justify a billion dollar enterprise value in my mind. ImmunoGen seems ripe for a pullback to levels closer to 12 seen at the beginning of 2013.

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Member Avatar Rouleur (40.64) Submitted: 2/28/2013 12:15:25 PM
Recs: 3

You may be right about short term movements, which are unpredictable, but longer term I am not convinced by your argument. You are incorrect in stating that there is TDM1 then only other phase 1 drugs. T-DM1 is in the process of being approved for other stages (larger market opportunity) and IMGN 901 is in phase 2, SAR 3419 is in stage 2, and there is a myriad of other drugs in the pipeline in stage 1. The constant in all of those are better revenue opportunities and potential game changers that are wholly owned by immunogen.

Member Avatar zzlangerhans (99.73) Submitted: 4/15/2013 3:20:26 PM
Recs: 1

Portefeuille has requested that I grab this falling knife and I accordingly bought 400 shares at 14.8 for our collaboration. However, the red thumb remains open until victory.

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