ImmunoGen Inc. (NASDAQ: IMGN) watched its stock make a handy gain after it announced that had amended its license agreements with Sanofi. Also as part of the deal, ImmunoGen will receive a nice chunk of change for its consideration. This continues an already amazing year for ImmunoGen.
Excluding Tuesday’s move, ImmunoGen had vastly outperformed the broad markets, with the stock up 131% year to date. However, over the past 52 weeks the stock is actually down 16%.
Under the terms of the amended 2003 collaboration and license agreement, ImmunoGen will grant Sanofi a fully paid, exclusive license to develop, manufacture and commercialize: isatuximab (SAR650984), an unconjugated anti-CD38 antibody in Phase 3 development for relapsed and refractory multiple myeloma; SAR566658, an ADC targeting CA6 in Phase 2 development for triple negative breast cancer (TNBC); SAR408701, an anti-CEACAM5 ADC being studied for the treatment of solid tumors; and an additional ADC directed to an undisclosed target.
The companies also have amended a 2013 exclusive license to grant Sanofi a fully paid, exclusive license to develop, manufacture and commercialize the experimental compound SAR428926, an anti-LAMP1 ADC being studied for the treatment of solid tumors.
As consideration for these amendments, ImmunoGen will receive a $30 million payment and has agreed to forego a limited co-promotion option in the United States with respect to the compounds covered by the 2003 agreement, as well as future milestones or royalties under both license agreements.
Mark Enyedy, president and CEO of ImmunoGen, commented:
Amending these agreements allows us to continue to focus on the development of our lead program, mirvetuximab soravtansine, while advancing our earlier-stage portfolio and further strengthening ImmunoGen’s cash position. We believe Sanofi possesses the right resources to complete the development of these innovative candidates and potentially bring them to patients around the globe.
Shares of ImmunoGen were last seen up 3% to $4.86 on Tuesday, with a consensus analyst price target of $5.23 and a 52-week range of $1.51 to $6.21.