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ImmunoGen (IMGN) Soars Above 200% This Year: Here's Why

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Shares of ImmunoGen, Inc. have been massively up 227.5% this year so far, outperforming the industry’s 9.8% increase. Let’s analyze the factors that led to this skyrocketing rally.

ImmunoGen’s rapid pipeline progress along with positive readouts and strategic collaborations has driven its share price up consistently.

The company has made a significant progress regarding its lead pipeline candidate, mirvetuximab soravtansine, this year. It is being evaluated in a phase III study (FORWARD I) as a single-agent therapy for treating patients with platinum-resistant ovarian cancer.

ImmunoGenhas activated more than 90 sites for study enrolment in the third quarter this year, aiming to complete it by the middle of 2018. The readout on the primary endpoint is anticipated in the first half of 2019. Also, the candidate is being evaluated in three phase I expansion cohorts on 113 ovarian cancer patients. In May, the company reported positive data from the trial, which demonstrated a promising safety and efficacy profile of the candidate.

Meanwhile, combination regimens with mirvetuximab soravtansine for ovarian cancer are also being examined in phase Ib/II FORWARD II study. The trial consists of cohorts assessing mirvetuximab soravtansine in combination with Roche's (RHHBY - Free Report) Avastin and Merck's (MRK - Free Report) Keytruda.

In May, ImmunoGen had reported initial results from this study, showing mirvetuximab soravtansine with potential to complement the currently available therapies for the indication. Approval of any of these combo therapies will significantly expand the eligible patient population for mirvetuximab soravtansine.

An FDA nod for mirvetuximab soravtansine would be a huge boost to ImmunoGen, given its immense commercial potential in the target market. Ovarian cancer causes maximum annual deaths among the gynecologic cancers with majority of patients diagnosed at an advanced stage.

Per data provided by the American Cancer Society, approximately 22,440 new cases of ovarian cancer are estimated to be diagnosed across the United States alone in 2017, thereby taking the death toll to more than 14,080.

Apart from mirvetuximab soravtansine, ImmunoGen is working to develop a couple of other clinical/pre-clinical candidates including IMGN779 and IMGN632. Notably, IMGN779 is being analysed in a phase I study for treating acute myeloid leukemia (AML) with encouraging data reported earlier this month. On the other hand, the company plans to move IMGN632 into a clinical development soon to address hematological malignancies including AML.

The company has signed agreements with several big healthcare players including Amgen, Bayer, Eli Lilly (LLY - Free Report) , Novartis, Roche, Sanofi and Takeda. By dint of these contracts, other companies are allowed to use ImmunoGen’s ADC technology and provide it with funds in the form of license and milestone fees, royalties, clinical materials revenues plus R&D support fees.  

Notably, in August, ImmunoGen had announced a strategic collaboration and option agreement with Jazz Pharmaceuticals for development and commercialization of the two candidates under its ADC programs namely, IMGN779 and IMGN632. Pursuant to this deal, ImmunoGen would be eligible to receive milestone payments based on certain pre-decided conditions.

Although the platinum-resistant ovarian cancer market offers immense commercial potential, ImmunoGen is notably set to face intense competition upon approval. However, mirvetuximab soravtansine looks promising at this juncture and its approval will be a big boost to the company.

Zacks Rank

ImmunoGen carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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