ImmunoGen fiscal 2Q loss shrinks on milestone pay

Drug developer ImmunoGen's fiscal 2nd-quarter loss shrinks as milestone payments increase

Associated Press

WALTHAM, Mass. (AP) -- ImmunoGen Inc. said Friday its fiscal second-quarter loss narrowed, as milestone payments helped boost the cancer treatment developer's revenue.

The Waltham, Mass., company lost $12.8 million, or 17 cents per share, in the three months that ended Dec. 31. That compares to a loss of $14.2 million, or 21 cents per share, in the previous year's quarter.

Revenue jumped 82 percent to $7.6 million.

Analysts surveyed by FactSet expected, on average, a loss of 23 cents per share on $5.7 million in revenue.

ImmunoGen has no products on the market and is helping to fund its development programs by licensing its Targeted Antibody Payload, or TAP, technology. That involves a tumor-targeting manufactured antibody with a cancer-killing agent attached. The antibody delivers the agent specifically to tumor cells, where it is released to kill the cells.

The company said its revenue for the quarter included $6 million in license and milestone fees compared to $866,000 in the 2010 quarter.

Operating expenses climbed to $20.4 million from $19.7 million. Other income sank to $23,000 from $1.3 million in the 2010 quarter, which included a $1.2 million federal grant.

The company reiterated its guidance for a loss of $78 million to $82 million in its fiscal year ending in June.

ImmunoGen said it had about $168.4 million in cash and cash equivalents as of Dec. 31, down from $191.2 million on June 30.

Company shares climbed 87 cents, or nearly 7 percent, to $13.44 in late-morning trading.

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