Biotech Values

[Double_Bagel]

IMGN sell of on Morgan Stanley's bearish call. Sold off from 13.7 to 11.60 today. Anybody interested in IMGN at these levels?

https://finance.yahoo.com/news/shares-immunogen-down-morgan-stanleys-122612608.html

Citing “no upside driver beyond Kadcyla,” Morgan Stanley initiated coverage on ImmunoGen (NASDAQ: IMGN) with an Underweight rating and $10 price target

In the best case scenario, Morgan Stanley analyst Matthew Harrison sees Kadcyla capturing 50 percent of the market. Further, “We model Kadcyla with $6B in peak sales and $8/share in value (NOLs offset Kadcyla taxes until 2023).
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Harrison is more bearish on ImmunoGen’s pipeline. He puts a $0 value on the proprietary pipeline and $2 per share value on the partnered pipeline.

Hmm! $6B in peak sales and price target of $10?. This doesn't make any sense!

IMGN was one of the six in Ohad's watch list.

http://www.orf-blog.com/6-stocks-on-my-watch-list/

Immunogen’s market cap (~$1B) is predominantly derived from the Kadcyla royalty stake ($600-700M assuming $1.5B peak sales). Immunogen’s pipeline (10 programs in clinical development), partnership deals [Sanofi, Novartis (NVS), Lilly (LLY) and Amgen (AMGN)] and the technology platform are assigned a reasonable valuation of ~$350M. At ASCO, clear efficacy for SAR650984 in multiple myeloma or IMGN853 in ovarian cancer should lead to further price appreciation.

I am guessing that since Ohad only purchased FMI after Asco, he was underwhelmed by IMGN as well.

I was lucky in that I bought some calls in the 11-11.50 range and sold them when it hit $13+.

I was wondering if it made sense to buy shares for the long term here at these levels.