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ImmunoGen, Inc. Message Board

  • desert_dweller93 desert_dweller93 Oct 26, 2012 11:47 PM Flag

    Question regarding future revenue

    I could be confusing IMGN with a different company and I am going from memory, but didn't they modify their agreement with Roche a few years ago where they gave up something on royalty rates in exchange for some type of product sales? I can't remember what it was but I thought they would somehow be in the loop with the manufacturing process and get paid for the drug manufacturing? Am I totally off base with this line of thinking? If I am not, the royalty rate will not be the only thing that impacts future revenue and they will get a different cut of the pie, wont they? Like I said, I could be confusing companies. For full disclosure, I bought more today at $11.84, I guess I was a little early :^) Thanks for your input.

    Sentiment: Strong Buy

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    • there was a modification in I believe 08 or 09 to change the royalty rate from 3% to the current structure. I believe the original deal was from 2000 ish when we didn't have anything close. a few misfires, oncylsin B. 242 was supposed to be the future with 901 behind. Mitch did what he could pumped it up got new cash in fall 2000 at 36 ish if I remember. stock traded to 45 i think. Market cap hit 1.3 billion. Then erosion and collapse in May 2002 to $2.00 after 242 blew up. Then slow rebuild through some new deals and clinical successes. The Amgen deals are similar to first Genetech deals. They were with abgenix which amgen bought. Their milestones 30mm and royalty rates of 3%. Bayer, biotest, LLY, Novartis , much higher. Sanofi deal sanwiched in between these deals is also on better terms. Sanofi deal kept us alive. These deals all got better because of success of TDM-1. So terms are not quite what market expected however without this deal we would have been out of business. It laid ground work for LLY and Novartis deals. the company has 2 to 3 bucks in cash and iis funded through late 2015. royalties should be kicking pretty well by then. Stock reaction is pathetic but keep in mind its mutual fund year end next week which i'm sure exaggerated downward move. Can't figure out how Stifil Nick guy lowered his initial revs from 2.4mill to 300 k. Royalty rates have nothing to do with possible uptake. Can understand lowering his peak numbers. Sound like he's using Obama type arithmetic.

      QJ

      Sentiment: Strong Sell

 
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