ImmunoGen, Inc. IMGN reported a loss of 20 cents per share in the first quarter of 2017, narrower than both the Zacks Consensus Estimate of 36 cents and the year-ago loss of 37 cents. We note that effective from Jan 1, 2017, ImmunoGen has transitioned to a fiscal year ending Dec 31.
ImmunoGen’s shares gained 1.46% on May 5, 2017 following the earnings release. The company’s stock significantly outperformed the Zacks classified Medical-Drugs industry year to date. The company’s shares gained 104.4% compared with the industry’s increase of 5.4%.
Since ImmunoGen does not have any approved product in its portfolio yet, the company earns revenues through royalties, license and milestone payments, as well as research and development (R&D) support fees paid by its partners.
Revenues increased 45.7% year over year to $28.7 million and beat the Zacks Consensus Estimate of $18 million in the reported quarter. The increase in revenues was mainly driven by substantially higher license and milestone fees of $18.7 million, up 87% year over year. This included $6 million in partner milestone fees and $12.7 million license fees from the collaboration agreement with CytomX.
R&D expenses decreased 8.3% from the year-ago level to $33.1 million. This was primarily due workforce reduction as well as decreased costs associated with manufacturing clinical materials on behalf of the company’s partners. Selling, general and administrative (SG&A) expenses declined 27.7% to $8.1 million due decreased personnel expenses in the first quarter of 2017.
ImmunoGen’s cash and cash equivalents at the end of Mar 2017 were $126.6 million compared with $160.0 million as of Dec 2016. The company expects to use its current cash and expected cash to fund operations in the second quarter of 2018.
Pipeline Update
ImmunoGen is progressing well with its product pipeline. In Jan 2017, the first patient was dosed in a phase III study (FORWARD I) of its lead candidate mirvetuximab soravtansine for the treatment of platinum-resistant ovarian cancer. Since enrolling the first patient, the study was initiated in more than 40 sites in North America and Europe during the quarter.
Meanwhile, combination regimens with mirvetuximab soravtansine in ovarian cancer are being evaluated in the phase Ib/II FORWARD II study. The company expects to report initial data from FORWARD II study in the second quarter of 2017.
Furthermore, a phase I study on IMGN779 for the treatment of acute myeloid leukemia is currently underway. Initial data from the study should be out in mid-2017. Additionally, the company is planning to file an investigational new drug (IND) application for IMGN632, a CD123-targeting antibody-drug conjugate (ADC), in the third quarter of 2017.
The company also plans to file an IND application for another pipeline candidate, IMGN632, for treatment of multiple hematologic malignancies in the third quarter of 2017.