USA - ImmunoGen price outlook as shares spike 30% on positive mirvetuximab data

On Tuesday, ImmunoGen Inc. ( NASDAQ:IMGN ) shares surged by nearly 30% after reporting positive mirvetuximab data in ovarian cancer. The company announced positive top-line data from the SORAYA trial, which measured the safety and efficacy of mirvetuximab soravtansine.

However, ImmunoGen shares eased later in the after-hours session, losing more than 4% after the company announced $175 million worth of common stock offering.

immunoGen shares were down more than 54% from the February highs before Tuesday’s spike trimmed the decline to about 41%. The stock is now down 5.08% this year.

Is it time to buy?

From an investment perspective, ImmunoGen shares trade at a reasonable price-sales ratio of 9.93, making it an interesting option for value investors.

In addition, analysts expect its earnings per share to improve by more than 64% this year before edging lower 8.3% next year.

Therefore, the stock could also gain the interest of short-term growth investors.

Technically, ImmunoGen shares seem to have recently rocketed to complete an upward breakout from a sharply descending channel formation. As a result, the stock recovered from oversold conditions to move towards the overbought levels of the 14-day RSI.

However, with the after-hours pullback erasing Tuesday’s gains, investors could still target more upward profits at about $6.56, or higher at $6.95. On the other hand, if the pullback continues on Wednesday, ImmunoGen could find support at about $5.76, or lower at $5.37.

In summary, the stock could be poised for more gains based on developments in clinical trials of mirvetuximab in ovarian cancer.

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