The $30 price target seems aggressive to me by the end of the year. I also think the author is bullish on IMGN for some of the wrong reasons. The pipeline does hold a lot of promise, but lots of early stage molecules look really good. I still believe that every analyst that follows this company is under estimating the sales potential that Kadcyla will eventually have, and what that royalty stream will mean to IMGN. It won't just be some money to pay the bills, but a meaningful catalyst to grow the companies bottom line for the foreseeable future and beyond.
It's pretty straight forward math at this point. Kadcyla is priced at double Herceptin, and Roche has voiced every intent of transitioning their Herceptin franchise over to Kadcyla as label expansion permits, plus they are looking at it in some oncology indications that Herceptin is not currently approved for. Herceptin had world wide sales of $6.4 billion last year. Kadcyla will by 2018 likely be over $10 billion in sales.