BST Trade Alert – January 22, 2016
Recommendation:
Buy ImmunoGen (NASDAQ: $IMGN) up to $11.00 per share.
About the Company:
ImmunoGen is a biotechnology company focused on the development of antibody-drug conjugates (ADC) that are designed to fight cancer.
They developed the ADC technology to enable the creation of better therapies for people with cancer.
The concept of an ADC is simple: use an antibody that binds to a target found on cancer cells to deliver an anticancer agent to these cells, killing them with less damage to healthy cells than non-targeted agents.
The company has a robust pipeline of drugs they are working on alone and with partners in various phases of clinical trials. The technology is already being used in Kadcyla that is marketed by Roche.
About the Drug:
Mirvetuximab soravtansine (IMGN853) is ImmunoGen’s main focus in 2016.
The company recently updated the progress on the FORWARD I and FORWARD II clinical trials of mirvetuximab soravtansine.
The drug is the company’s first folate receptor-targeting ADC, for treating ovarian and endometrial cancer. It is currently in a Phase 1, First-in-Human Study to Evaluate the Safety, Tolerability, Pharmacokinetics and Pharmacodynamics of IMGN853 in Adults With Ovarian Cancer and Other FOLR1-Positive Solid Tumors.
They plan to start Phase II trials in early 2016.
About the Market for This Drug:
The market for the ADC technology is huge. The technology can be combined with many other cancer fighting treatments to improve the effects of the treatments and reduce the negative side effects.
About the Potential Catalyst:
ImmunoGen is making plans to fast track the clinical trials. They’re meeting with regulators in the first half of 2016 to get approval for fast track status.
They’ll also report the results from an ovarian cancer study in the second quarter.
About the Shares:
IMGN is currently trading for $9.62. The stock broke out in June and surged to a high of $19.43 following positive clinical trial results.
Since then, the stock has given back those gains. This price action has taken place even though nothing has fundamentally changed about the company or its clinical trials.
In other words, the shares are trading at a huge discount for no good reason. It’s simply the victim of the selloff in biotech stocks.
We should see IMGN find support at the current price where the breakout started. It should rebound as they progress through 2016 with the solid lineup of studies and clinical trials set to take place.
Key Facts:
Company: ImmunoGen
Ticker: IMGN
Recent Price: $9.62
Market Cap: $825 million
Average Daily Volume: 988.26k
Chart:
Category: BST Trade Alert
