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ImmunoGen (IMGN) Up on Licensing Deal With Lilly Worth $1.7 B

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ImmunoGen, Inc. IMGN announced that it has entered into a global, multi-target, definitive licensing agreement with pharma giant Eli Lilly and Company LLY.

ImmunoGen granted Lilly exclusive rights to research, develop and commercialize antibody-drug conjugates or ADCs combining targets selected by the latter based on the former’s novel camptothecin technology.

ImmunoGen will retain full rights to the camptothecin platform for all targets that are not covered in the licensing deal, while Lilly will bear all costs related to the research and development of candidates chosen for the program.

Per the latest deal, ImmunoGen will receive an upfront payment of $13 million from Lilly for the initial targets. The company is also eligible to receive an additional $32.5 million for any additional targets selected by Lilly.

ImmunoGen is entitled to receive up to $1.7 billion in potential target program exercise fees as well as potential development, regulatory, and commercial milestone payments. ImmunoGen is also eligible for tiered royalties on net sales if a product is approved from the above collaboration.

Shares of ImmunoGen were up 4.7% on Tuesday following the collaboration deal with the pharma giant. The stock has plunged 35.5% in the past year compared with industry’s decrease of 33.6%.

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Like the recent deal with Lilly, ImmunoGen has agreements with several big healthcare companies, which allow the latter to use ImmunoGen’s ADC technology. This provides ImmunoGen with funds in the form of license and milestone fees, royalties, clinical materials’ revenues and support fees for research and development.

The company also has a few other agreements granting rights to its ADC technology or developing candidates in partnership with other companies.

In the absence of a marketed product, these agreements remain a constant source of funds from royalty revenues, license and milestone fees – which eventually drives ImmunoGen’s top line. The agreements also validate ImmunoGen’s ADC technology, which the company is developing to improve the lives of cancer patients.

Zacks Rank & Stock to Consider

ImmunoGen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include United Therapeutics Corporation UTHR and Vaxart, Inc. VXRT, both sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Therapeutics’ earnings estimates have been revised 0.3% upward for 2022 over the past 60 days. The stock has rallied 18.3% in the past year.

Earnings of United Therapeutics have surpassed estimates in two of the trailing four quarters and missed the same on the other two occasions.

Vaxart’s loss per share estimates have narrowed 3.1% for 2022 over the past 60 days.

Earnings of Vaxart have surpassed estimates in two of the trailing four quarters and missed the same on the other two occasions.


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Eli Lilly and Company (LLY) : Free Stock Analysis Report

United Therapeutics Corporation (UTHR) : Free Stock Analysis Report

ImmunoGen, Inc. (IMGN) : Free Stock Analysis Report

VAXART, INC. (VXRT) : Free Stock Analysis Report

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