ImmunoGen rises on Novartis licensing move
ImmunoGen shares rise after its partner Novartis licenses potential cancer treatment
NEW YORK (AP) -- Shares of ImmunoGen jumped 13 percent Monday after the Swiss drugmaker Novartis licensed another of its potential drugs.
THE SPARK: Novartis will use ImmunoGen's antibody-drug conjugate technology to develop new treatments for cancer. ImmunoGen said the terms are similar to a licensing deal the companies announced in October. That means ImmunoGen will get an upfront payment and up to $200 million in milestone payments, as well as royalties on sales of any approved drugs.
THE BIG PICTURE: ImmunoGen Inc. said it has reached five licensing agreements in 2013, including two other deals with Novartis.
The Waltham, Mass., company announced a major agreement with Novartis in 2010. As part of that deal, ImmunoGen received a $45 million payment.
ImmunoGen's technology is also used in Roche's breast cancer drug Kadcyla, which was approved early this year. It has partnerships with a spate of other companies.
Last week, ImmunoGen said it stopped a trial of an experimental cancer drug because it was not working. It was evaluating IMGN901 as a treatment for small-cell lung cancer.
SHARE ACTION: Shares of ImmunoGen climbed $1.74 to $15.38 in afternoon trading. The stock is down 17.6 percent since ImmunoGen announced the failure of the IMGN901 study.
