IMGN - ImmunoGen gains as J.P. Morgan upgrades to overweight on favorable outlook for Elahere

2023-09-13 12:18:15 ET

ImmunoGen's ( NASDAQ: IMGN ) shares rose +4.82% to $16.20 on Wednesday after J.P. Morgan upgraded the company to 'overweight' from 'neutral' citing the ongoing U.S. launch of Elahere in platinum-resistant ovarian cancer, which the brokerage believes "is on a solid growth trajectory."

According to JPM, the current valuation of IMGN is not fully reflective of the potential from its commercial product. "Beyond sales, expansion opportunities for mirve and other clinical-stage assets are also attractive levers for upside," JPM said in a note.

JPM has set a Dec 2024 PT of $22, and analysts Brian Cheng and Sungin Yun say the current U.S. prescribers see continued demand for Elahere.

"While the question remains on the actual duration of treatment in the real world... observations suggest that the real-world duration of Elahere use could potentially be much higher than anticipated."

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