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Cantor Maintains Hold On ImmunoGen Following 2Q:FY15 Results


In a research report sent to investors, Cantor analyst Mara Goldstein reiterated a Hold rating on ImmunoGen (NASDAQ:IMGN) with a $9.00 price target, following the company’s fiscal second-quarter results, posting EPS of $0.16, versus Cantor’s estimate of $0.17, on above-expected revenues of $48.3 million versus Cantor’s estimate of $26.1 million.

Goldstein noted, “Despite the beat, guidance was maintained for FY:15, suggesting to us that for revenues to be $100-105 million for the year, 2H:FY15 will be lighter than we currently forecast.”

The analyst continued, “Though ImmunoGen shares was reacted strongly to the earnings beat (+>20%), we think this is a reflexive action after the steep valuation decline following disappointing MARIANNE trial results (Kadcyla) and the mention that partner Roche is exploring the potential for filing for expanded approval (1st line) with the dataset. While this may be the case based on reanalysis/subset analysis, we question whether the data would be able to truly support meaningful first line usage, and thus have not altered our view on the near-term prospects.”

ImmunoGen, Inc., a biotechnology company, develops targeted anticancer therapeutics. It develops its products using its antibody-drug conjugates technology.