ImmunoGen Inc (IMGN)

[skitahoe]

I think you're right, and I thought we'd be seeing new highs by now, but clearly it's all about the Phase 3 Trial, and we should know about that in the near future, but we don't know how near. Perhaps JPM will answer that question, meanwhile the latest company corporate presentation looks positive, I suspect they know more than they can say.

Over the decades it's been common to compare IMGN with SGEN, I've never been able to justify why SGEN's market cap is so much higher than IMGN's given the successes, and failures both companies have had. I believe that if IMGN gains approval of IMGN853 before SGEN achieves an approval for another drug, IMGN's market cap will exceed that of SGEN, over a ten banger from where we are today. In comparing the company, SGEN has not yet proven effective against a solid cancer, IMGN has. SGEN abandoned it's leukemia drug due to toxicity problems, IMGN's IGN drugs continue to advance in this area, and some degree of efficacy is being seen in escalating trials. Where IMGN falls short is earnings, they monitized Kadcyla, which only was to receive royalties from Roche whereas SGEN still owns the majority of the drug they have approved, but they're yet to be profitable based on earnings from it. In short, IMGN853 should be the first wholly owned drug that IMGN gains approval from, while SGEN has one, but both have examples of other drugs which have failed, or appear to be succeeding that are both in house and partnered with others. SGEN however still has a major investment from Roche, yet Roche's one approved conjugate drug is Kadcyla, Herceptin conjugated with DM1 utilizing IMGN's technology.

I believe that both companies will have future success, but given the marked difference in the market caps, IMGN should be the superior investment at this time.

Gary