ImmunoGen, Inc. (NASDAQ: IMGN) stock has been upgraded by RBC Capital from Sector Perform to Outperform with a price target of $12.00 (from $5.00). As a result, the stock surged over 7.8% on July 6th, 2017 (As of 12:07PM EDT; Source: Google finance)
The analyst Matt Eckler had first upgraded since launching the coverage back on August 4, 2016 at Sector Perform with a $7.00 price target. Eckler had said after last month’s ASCO presentations and time on the road with management, they enter 2H17 with increased conviction in both Phase III asset mirvetuximab, and ongoing turnaround efforts at the company. The analyst think there are still significant room for upside at current levels, based on our risk-adjusted estimates of the commercial prospects for Phase III asset mirvetuximab, as well as multiple readouts/catalysts that the analyst want to be in front of.
The analyst view the fact that mirvetuximab has now demonstrated comparable efficacy in three separate Phase I cohorts as supportive of the decision to advance this agent into Phase III, and as providing assurances around its probability of success. Separately, the analyst are encouraged by initial results from the Phase I/II FORWARD II trial which is testing mirvetuximab in combination with other approved agents.
Meanwhile, the stock has started rising after presenting phase 1 data for its anti-CD33 antibody-drug conjugate IMGN779 at the European Hematology Association. Like ImmunoGen’s other antibody-drug conjugates, IMGN779 delivers a toxic drug payload using an antibody to tumor cells, to acute myeloid leukemia cells that express CD33. IMGN779 uses IMGN’s novel indolino-benzodiazepine payload DGN462 that damages DNA by alkylating it without cross-linking, that helps to kill tumor cells while causing less damage to the normal progenitor cells that give rise to healthy blood cells. The main purpose of the phase 1 trials study was to measure safety at increasing doses of the drug. As of the data cutoff, IMGN had gotten through seven increasing doses, with no dose limiting toxicities. At dose levels 6 and 7, the drug appears to be staying in the bloodstream, with CD33 becoming saturated. For IMGN779’s potential, IMGN has observed initial anti-leukemia activity at dose levels 6 and 7 in patients who had failed intensive front-line therapy. Further, IMGN continues to try higher doses of IMGN779 to determine the best dose to take into phase 2 development.
ImmunoGen stock has risen 143% in the last three months (source: Google Finance).