Back to top

Analyst Blog

ImmunoGen, Inc. (IMGN - Snapshot Report) amended its multi-target agreement with Eli Lilly and Company (LLY - Analyst Report) initially signed in Dec 2011. As per the amendment, Lilly will have the right to extend the three-year right-to-test period of the agreement by up to two six-month periods. For this, Lilly will make additional payments to ImmunoGen.

Moreover, ImmunoGen will receive an additional exercise fee of $2 million for the license agreement retroactively. Lilly will also have the right to elect one of the additional development and commercialization licenses taken under the multi-target agreement without any exercise fee.

As per the initial agreement, Lilly had the rights to take exclusive options to individual targets selected by Lilly for specified option periods under certain restrictions. Lilly can also test ImmunoGen’s maytansinoid TAP technology with Lilly’s antibodies directed to the optioned targets under a right-to-test license.

Moreover, Lilly can utilize ImmunoGen’s maytansinoid TAP technology for the development and commercialization of a certain number of individual targets. As per the initial agreement, Lilly did not have the right to extend the right-to-test period and ImmunoGen was not eligible to receive any exercise fee for the first development and commercialization license taken thereunder.

ImmunoGen has already received a $20 million upfront payment from Lilly for the execution of the right-to-test agreement. We note that the first development and commercialization license was taken on Aug 2013, when Lilly took its first exclusive license to a single target from ImmunoGen.

We note that ImmunoGen has several licensing agreements with big companies. Last month, the company entered into the third licensing deal with Novartis (NVS - Analyst Report) under their 2010 agreement. As per the terms of the deal, Novartis will gain the exclusive right to use ImmunoGen’s antibody-drug conjugate (ADC) technology to develop anticancer candidates to an undisclosed target. We are encouraged by the company’s association with big companies.

ImmunoGen presently carries a Zacks Rank #2 (Buy). Some other stocks worth considering include Zacks Rank #1 (Strong Buy) Jazz Pharmaceuticals (JAZZ - Analyst Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%