ImmunoGen CEO on Potential New Drug
The market flat out ignored some incredibly good news for ImmunoGen, Cramer said Thursday. Despite an announcement that a key drug will go before the Food & Drug Administration for approval, IMGN dropped 2.6%.
The drug in question is T-DM1 for metastatic breast cancer, and it’s presently in Phase II and Phase III clinical trials for different indications. ImmunoGen , a biotech that developes targeted cancer treatments, partnered with Genentech on the project, and Genetech’s parent, Roche, today announced that positive discussion with the FDA have prompted the company to file for approval of T-DM1 this year. The news gives IMGN investors a “two-fer,” as Cramer calls them: 1. The sooner the drug is approved, the sooner ImmunoGen collects royalties on it. And 2. Those positive discussions mean that approval is more likely.
Canaccord Adams’s research note on T-DM1 said that sales could reach $2.7 billion by 2017. Factor in ImmunoGen’s 6% royalty, and the company would collect $162 million from the drug. And this company’s entire market cap is $520 million. So T-DM1 alone could add almost another third to that number.
So why’d Wall Street sleep on today’s big announcement? And was the stock’s decline a buying opportunity? Cramer turned to ImmunoGen CEO Daniel Junius for an answer. Watch the video for the full interview.
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