IMGN - ImmunoGen Beats Expectations and Fuels Optimism for Its Lead Drug Candidate
Shares of biotech ImmunoGen (NASDAQ: IMGN) soared by 27% after the company beat financial expectations for its fiscal first quarter and reassured investors about the prospects for its lead drug candidate as a treatment for ovarian cancer. Its revenues, which currently come from licensing, milestone, and non-cash royalty fees from partnerships, were $44.9 million, compared with analysts' average expectation of $29.3 million. The company also had a profit of $4.8 million, or $0.03 per share, when the market was expecting a loss of $0.05.
ImmunoGen suffered a major setback in early 2019 when it announced a failed trial of its lead drug, mirvetuximab soravtansine. That prompted management to restructure the company to reduce costs, which contributed to Friday's surprising profit news. Operating expenses for the year fell 19% to $174 million, and the company expects operating expenses to decline further in 2020 to between $165 million and $170 million.
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