Many long-time investors post on the IV board. Like me, they are becoming increasingly discouraged by the poor relative performance of their investment in IMGN and the greed of IMGN's business execs that had nothing to do with the development of IMGN's platform/TAP technology, nothing to do with IMGN's success in drug discovery and yet take large option grants while not performing in their business roles. Investors need to take action now to avoid another fleecing in July when IMGN has typically awarded new options to execs. John Lambert and his drug discovery team are driving the value at IMGN and I would give him and key members of his team the rewards. I would award no options for Junius, and whoever dropped the ball on the 901 dosing (guessing O'Leary the serial insider seller was the person responsible) needs to be fired. People need to be held accountable, no more rubber stamping large, free, dilutive, option packages for execs that are failing to deliver. This practice needs to be stopped NOW. Personally, I don't find the company to be friendly to shareholders and would make changes in that area. Also, since IMGN is no longer doing Bus Dev, why do they employ sverals BD pros including a Director also named Perry (any relation to the CFO).
Who will join me in taking action in making IMGN execs more accountable and friendly to the shareholder/owners???
I am with you, Bioimmo, but what are we small shareholders to do? I am not saying its hopeless, but the greed of these IMGN execs is very powerful. If you have a plan, let us hear it please.
Investors can send emails and letters to IR, let them know you own the stock and desire for the information to be forwarded to the independent directors, or the Chairman of the BOD. Provide facts like YTD relative performance, IMGN execs were not involved with the development of TAP, or Kad, 901 trial dosing errors and delays, failure to move pipeline forward past phase I, no more large, rubber-stamped options dilution, Junius has been getting 180,000 shares per year, for underperforming. They employ 3-4 bus dev pros and are not doing bus dev. I would like to tell them the company is not shareholder friendly, or shareholder oriented, but then IR will have a reason to not forward. Investors that use Linked-in can find many directors listed there and try to connect directly.
These IMGN execs, like Smilin' Dan Junius and his crony "CFO" remind me of the creepy lady CEO of Komen for the Cure, in the news lately for paying herself an insane amount of money on the backs of well-meaning donors, and treats herself to endless facelifts and travel perks. Makes me want to throw up, especially when there are so many generous, hard-working people who give so much for cancer research, the scientists, donors, not to mention those suffering from this horrible disease. Took my wonderful grandmother, the brave and kind lady.
Options are fine; they sink with our investments in the company. But Junius got close to 50% cash (?) bonus for 2012. It's the rotten system. Executives get paid a lot of money to do their job. Yet, when they do their job, they are still rewarded with outrageous bonuses (plus a disproportionate number of options). Meanwhile, the other employees, including the scientists responsible for discovering the drugs, probably get 5% bonus on the high end. ARNA's Jack Lief is even worse with his 100% cash bonus. AVEO's CEO, his bonus for 2012, and AVEO's failed drug. Pretty much he got his fat bonus for getting a drug submitted, then rejected by the FDA.
The situation with IMGN (Junius and Perry) and ARNA's (Jack and the bean counter) is a little different in that IMGN's execs were not around when Tap was developed and they have done nothing, or very little to drive value since taking over the leadership. Jack is a terrible communicator and I agree his option grants and those granted to the bean counter they call a CFO are too large, but he has been with ARNA for a long time and is/was more involved in the company's development IMO. So far this year, both are underperforming for the shareholders this year.
Its a given that they will again reward themselves with the annual allotment of stock options, executives and board members alike. It is this way at virtually every company that uses long term incentives for compensation. That in itself should not be to bothersome for anyone that has invested in publicly traded companies. I think what really is bugging you is that there have been a couple of secondary offerings to raise cash, which in turn has diluted our share holder value. I don't see any further need for that, as long as Immunogen can manage its costs against the royalty stream that Kadcyla will generate. If they do things to the contrary of these expectations then vote with your feet and put your money else where.
The 901 dosing error is not that uncommon. They had a good clinical response at that dosage, it is just repeated dosages at that level led to some serious adverse events for some of the patients. That is part of the reason why they do those types of studies. The problem IMGN had with this particular subject was that it was communicated in a spectacularly bad way to analysts and they were not the least bit prepared to answer what you expect to be a number of quite obvious follow up questions.
There are a few things that you said that I have been watching as well. No new deals for a while now, so what are these biz development guys up to then? And why does O'Leary show zero shares of stock in his control? Is he still at the company? That just does not make any sense.
As a shareholder, I agree with everything you've said. This stock has been a disappointment even though it seems like it's sitting on some of the best technology out there. The frequent insider selling, even if scheduled, completely destroys my confidence in it and destroys any faith that the directors would try to maximize shareholder value.