ImmunoGen Licenses Two Cancer Therapies, Oppenheimer Maintains Outperform


After ImmunoGen, Inc. (NASDAQ:IMGN) announced that Takeda, a Japanese pharmaceutical company, will license their new cancer therapies that use novel antibody drug conjugate (ADC) technology, Oppenheimer analyst Christopher Marai weighed in on the biopharmaceutical company. Marai maintained an Outperform rating on IMGN with a price target of $11.00 on March 24.

Marai believes the ADC technology used in ImmunoGen's new therapies is "overlooked, under-appreciated and misunderstood by the Street." He noted that ImmunoGen will recieve $20 million upfront for liscensing the two drugs, and Marai estimates a potential $210 million from royalties once Takeda commercializes the drugs. "Importantly, the license covers IMGN's novel DNA-acting IGN payload agents (different from current clinical candidates)", Marai noted.

Additionally, Marai noted that the ADC technology used in the drugs has "demonstrated acceptable safety." He added that IMGN's partnership with Takeda should "confer greater confidence in IMGN's ADC-technologies." 

Other than the ADC therapies, Marai views IMGN853 as the main value driver for ImmunoGen as it is wholly owned by the company. He assigns $8 per share in his $11 price target to the drug and estimates potential sales of $600 million. 

According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Christopher Marai has a total average return of 41.7% and a 73.5% success rate. Marai has a 19.2% average return when recommending IMGN, and is ranked #28 out of 3546 analysts.

 

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