Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

ImmunoGen, Inc. (IMGN - Snapshot Report), a biotechnology company, has entered into several agreements with bigger companies like Novartis (NVS - Snapshot Report) and Eli Lilly and Company (LLY - Analyst Report). ImmunoGen focuses on the development of novel anticancer therapeutics using its antibody-drug conjugate (ADC) technology.

Earlier in the month, ImmunoGen entered into a second licensing deal with Novartis under a 2010 agreement. As per the terms of the deal, Novartis will gain the exclusive right to use ImmunoGen’s ADC technology to develop anticancer candidates to an undisclosed target.

As per the 2010 agreement, Novartis is responsible for the development, manufacturing and marketing of any products successful from the license agreement. For each licensing deal under the agreement, ImmunoGen receives an upfront payment along with milestone payments of up to $200 million plus royalties on the sales of any resulting products. ImmunoGen has already received $45 million as upfront payment under the agreement.

We note that Novartis has the right to terminate any development and commercialization license with prior notice. Moreover, both the companies may terminate each license for a material breach by the other company.

ImmunoGen’s revenues primarily consist of research and development support fees, license and milestone fees. For fiscal year 2013 (ending Mar 31), ImmunoGen received an $11 million amortization of upfront license fees from Novartis. ImmunoGen expects revenues for fiscal year 2014 in the range of $66–$70 million.

We are encouraged by ImmunoGen’s association with companies of the likes of Novartis and Eli Lilly. The company is expected to ink more deals in the future.

ImmunoGen presently carries a Zacks Rank #3 (Hold). Stocks such as Actelion Ltd. (ALIOF) look better positioned with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 33.49 +8.84%
VALEO SA SPO VLEEY 68.09 +4.22%
DIXIE GROUP DXYN 14.64 +4.13%
INTERNATIONA ICAGY 32.67 +3.39%
CANADIAN SOL CSIQ 26.01 +3.34%