Biotech Values

[mcbio]

Re: SGEN vs. IMGN

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What are your thoughts on IMGN here?
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Dead money.

I would argue the same for SGEN with its now $1.45B market cap. Where do you see the stock going from here, short of a buyout? Clearly good news for the company with the news today as it does help to validate their ADC technology, but this news in no way guarantees success for the rest of the drugs in their pipeline. And is this initial indication for the lead drug enough by itself to support any meaningful appreciation in the stock from the now $1.45B market cap level?

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Do you see the seeming validation of SGEN's ADC technology having any effect on IMGN?
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No, largely because IMGN's technology has failed to be validated but T-DM1. One can argue, correctly to some extent I think, this is because of bad decision by partner and bad core MAbs but the TAP tech has way more failures than successes.

T-DM1 still appears to remain on track for approval even if it is going to be later rather than sooner. I don't see how you can say IMGN's technology has not been validated given the results for T-DM1 to date and the fact that it still appears to be on track for approval.