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Immunomedics' Shares Surge YTD on Cancer Drug Approval

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Share price of Immunomedics Inc. has surged 77.4% year to date compared with the industry’s growth of 11%. It has been an eventful year so far for the company.

 

The company got a significant boost in April 2020 with the FDA approval for its lead drug, Trodelvy, (sacituzumabgovitecan-hziy), an antibody-drug conjugate (ADC), for the treatment of patients with metastatic triple-negative breast cancer (mTNBC) who received at least two prior therapies for metastatic disease. Following the nod, Trodelvy became the first ADC to receive an FDA approval, specifically for the treatment of relapsed or refractory mTNBC, which is an aggressive type of breast cancer. It is also the first FDA-approved anti-Trop-2 ADC. This marks the approval of the first drug ofthe company and will boost its growth prospects. Shares got a boost with this approval.

The drug is also being evaluated for additional indications. The FDA recently granted a Fast Track designation to Trodelvy for the treatment of adult patients with locally-advanced or metastatic urothelial cancer (mUC).

Meanwhile, the ASCENT study on Trodelvy was halted due to compelling evidence of efficacy. The top-line data are expected around mid-2020.

Meanwhile, Immunomedics has collaborated with the  Dana-Farber Cancer Institute to conduct two phase II studies to evaluate the safety and efficacy of combining Trodelvy with Merck’s (MRK - Free Report) anti-programmed cell death protein 1 (PD-1) antibody, Keytruda (pembrolizumab), in patients with mTNBC and hormone receptor positive (HR+)/human epidermal growth factor receptor 2-negative (HER2–) metastatic breast cancer (mBC).

The company has also entered two clinical collaborations. It collaborated with Roche (RHHBY - Free Report) to develop Trodelvy in the front-line setting of mTNBC in combination with the latter’s PD-L1 inhibitor, Tecentriq.

The company has a similar collaboration agreement with AstraZeneca (AZN - Free Report) to investigate Trodelvy in combination with the latter’s checkpoint inhibitor, Imfinzi (durvalumab), in earlier lines of therapy for mTNBC, advanced UC and second-line metastatic NSCLC.

These collaborations are constant sources of funds for the company.

Zacks Rank

Immunomedics is currently a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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