Thursday, January 6, 2011

Immunogen (NASDAQ:IMGN) Hampered by Low Royalty Structure

Immunogen's (NASDAQ:IMGN) low royalties will continue to hinder the company in spite of some of the postive expectations surrounding late-stage T-DM1.

Needham noted, "We maintain our UnderPerform rating for ImmunoGen, as we believe the current valuation is built on high expectations for the late-stage T-DM1 along with the brand-name Roche (N/R) partnership, but the value creation for ImmunoGen is modest, due to the mid-single digit royalty. Accelerated progress in the early-stage internal pipeline or sizeable collaborations around the unpartnered pipeline products may provide upside to our current valuation."

Needham & Company reiterates an "Underperform" on Immunogen Inc., which closed at $9.63, gaining $0.18, or 1.90 percent.

No comments: