IGM Bio (IGMS) Stock Rallies 142% in 3 Months: Here's Why
IGM Biosciences IGMS, a clinical-stage company, is developing a pipeline of Immunoglobin M (IgM) antibody-based candidates to treat patients with cancer and autoimmune and inflammatory diseases.
The company believes that an IgM has the potential to become a better antibody medicine, given the limitations of the conventionally used IgG antibody.
Over the past three months, shares of IGM Bio skyrocketed 142% compared with the industry’s 10.4% rise. The primary reason behind the massive uptick in the stock price was the company’s strategic pipeline reprioritization efforts announced in December 2023. Investors cheered the company’s decision to streamline its pipeline to ensure efficient utilization of resources.
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As part of its reprioritization efforts, IGM Bio said that it will focus its resources on two strategic areas, such as treating colorectal cancer using IgM death receptor 5 (DR5) agonist antibodies and autoimmune diseases using IgM T cell engager antibodies.
IGMS is halting all hematologic oncology clinical development as well as the clinical development of its targeted cytokine product candidate. The company will also be cutting its workforce by approximately 22%.
Such measures, taken by IGM Bio, are expected to extend its cash runway into the second quarter of 2026.
The company’s oncology pipeline comprises aplitabart, a DR5 agonist. An early-stage study is currently enrolling patients to evaluate aplitabart in combination with Folfiri chemotherapy and bevacizumab, a monoclonal antibody, for the treatment of second-line metastatic colorectal cancer. IGM Bio expects to enroll approximately 110 patients by the end of the first quarter of 2024.
IGMS also continues to enroll later-line colorectal cancer patients in its combination clinical study of 10 mg/kg of aplitabart and Folfiri. Enrollment in this combination study is expected to be completed in the first half of 2024.
IGM Bio is also currently developing imvotamab, an IgM-based antibody, in autoimmune diseases. Two separate phase Ib studies are ongoing and evaluating the candidate in severe systemic lupus erythematosus and severe rheumatoid arthritis.
The company also recently received FDA clearance for its investigation new drug (IND) application for the use of imvotamab in treating idiopathic inflammatory myopathies. IGMS is currently preparing to initiate an early-stage study on imvotamab for this additional indication.
Besides imvotamab, IGM Bio has another IgM-based antibody intended for clinical development in autoimmune diseases, IGM-2644, which is currently in the pre-clinical stage. The company plans to file an INDapplication for IGM-2644 in 2024 to begin clinical development for autoimmune indications.
In the same press release, the company also announced that it will continue to focus on developing oncology, immunology and inflammation product candidates per its collaboration agreement with Sanofi SNY.
Per the 2022 global collaboration agreement with Sanofi, IGM Bio will generate, develop, manufacture and commercialize IgM antibodies directed to six primary targets, three in oncology and three in immunology. The company received an upfront payment of $150 million from Sanofi upon closing the agreement.
The agreement with Sanofi also ensues several milestone-based payments, which are receivable upon the achievement of certain developmental and regulatory milestones. IGM Bio is also eligible to receive tiered royalties from Sanofi on net sales of licensed products, subject to approval.
IGM Biosciences, Inc. Price and Consensus
IGM Biosciences, Inc. price-consensus-chart | IGM Biosciences, Inc. Quote
Zacks Rank and Other Stocks to Consider
IGM Bio currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the same industry worth mentioning are Puma Biotechnology, Inc. PBYI and ADMA Biologics ADMA. While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has increased from 72 cents to 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 64 cents to 69 cents. Over the past three months, shares of PBYI have gained 90.2%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 3 cents to 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past three months, shares of ADMA have gained 45.1%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
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