SNY - Why IGM Biosciences Stock Rocketed Higher Today
Shares of IGM Biosciences (NASDAQ: IGMS) , a clinical-stage biotechnology company, were trading an astonishing 130% higher as of 11:30 a.m. ET Tuesday as investors responded to news that it had signed a significant collaboration deal with Sanofi (NASDAQ: SNY) .
IGM Biosciences doesn't have any products generating revenue yet, so some support from a deep-pocketed pharmaceutical like Sanofi could be extremely helpful. The big pharma is interested in IGM Biosciences' IgM antibodies as potential treatments for several types of cancers and a handful of autoimmune disorders.
The biotech will lead the R&D effort to develop half a dozen IgM antibodies candidates that could, if successful and approved, become new blockbuster drugs. In return, Sanofi will hand over $150 million up front to IGM Biosciences, and the two companies will split the profits from any treatments that result from the partnership. Sanofi has ordered the discovery of IgM antibodies aimed at three cancer targets and three inflammation targets. IGM Biosciences will also be eligible to receive up to $1 billion in milestone payments for each discovered candidate that goes on to become a commercial success.
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Why IGM Biosciences Stock Rocketed Higher Today