ImmunoGen stock nearly doubled on Thursday: what happened?

November 30, 2023 11:54 AM PST | By Invezz
Follow us on Google News:

Shares of ImmunoGen Inc (NASDAQ: IMGN) close to doubled this morning after AbbVie Inc (NYSE: ABBV) said it will buy the cancer therapies company for $10.1 billion.

ImmunoGen stock priced at a massive premium

The all-cash transaction values each share of ImmunoGen at $31.26 – about a 100% premium on their previous close.

AbbVie is attempting to make up for the loss of exclusivity in Humira by “integrating ImmunoGen’s potentially multi-billion-dollar Elahere”, as per Evan Seigerman. He’s an analyst at BMO Capital Markets. Watch here:

Elahere is an antibody-drug conjugate or ADC that particularly targets cancer cells all the while keeping toxicity at a minimum for other cells. It generated sales worth $212 million in the nine months through September and is expected to be a blockbuster drug by the end of this decade.

ImmunoGen stock has now soared over 500% year-to-date.

Why is AbbVie paying such a huge premium?

Note that Elahere is already approved in the United States for adult patients of ovarian cancer. AbbVie expects the said agreement to complete in the first half of 2024, as per the press release today.

It’s paying such a massive premium for ImmunoGen stock because of “increasing interest from large biopharma companies wanting to increase exposure to ADDCs – an attractive area”, as per Michael Schmidt – a Guggenheim analyst.

Earlier this year, Pfizer also agreed to buy Seagen for a whopping $43 billion to expand its footprint in antibody-drug conjugates (find out more).

ImmunoGen is attractive for AbbVie also because sales of its Imbruvica tanked 20% due to rising competition in its third financial quarter.

The post ImmunoGen stock nearly doubled on Thursday: what happened? appeared first on Invezz


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies