IMGN - ImmunoGen drops 11% amid plans to launch $6K cancer drug

Oncology-focused biotech ImmunoGen, Inc. ( NASDAQ: IMGN ) shed ~12% on Tuesday after the company said it would launch the newly approved ovarian cancer drug Elahere "in a matter of days" at a list price of $6,220 per vial.

"Most patients receive 3 to 4 vials per cycle, which results in a price of somewhere between $18,500 and just under $25,000 per cycle," Chief Executive Mark Enyedy said during a conference call on Tuesday.

On Monday, ImmunoGen ( IMGN ) announced the FDA approval of its antibody-drug conjugate Elahere for certain adult patients with platinum-resistant ovarian cancer, sending the company shares sharply higher in the post-market trading.

However, BMO Capital Markets analyst Etzer Darout attributed today's selloff to doubts over the market opportunity for Elahere, which will join a group of bestselling antibody-drug conjugates such as AstraZeneca's ( AZN ) Enhertu and Gilead's ( GILD ) Trodelvy.

"When you look at other marketed antibody drug conjugates , Elahere is (priced) relatively in line in terms of the price per month of $18,500 to $25,000 range," Darout noted.

Trodelvy, which has a list price of $2,188 per vial in the U.S., added $380M in revenue for Gilead ( GILD ) in 2021, according to the company's latest 10-K filing.

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