Oppenheimer Maintains Outperform on Immunomedics After Partnership Restructuring
Oppenheimer has published a research report on Immunomedics (NASDAQ: IMMU) after the company announced a revamping of its partnership with UCB.
In the report, Oppenheimer writes, "Earlier today Immunomedics reported a restructuring of its partnership agreement for epratuzumab with UCB (Euronext: UCB, Not Rated). As a reminder, epratuzumab is being developed for oncology and autoimmune indications, and UCB had worldwide rights to autoimmune indications only and buy-in rights for oncology. The new agreement allows UCB to sub-license certain geographies to other pharmaceutical companies. Additionally, UCB gave up its buy-in rights for the oncology indication and paid Immunomedics a $30M non-refundable fee. We believe that this restructuring is very favorable for Immunomedics by providing non-dilutive capital as well as a possibility of faster worldwide development for epratuzumab."
Oppenheimer maintains its Outperform rating and $6 price target on Immunomedics, which is currently trading up $0.01 from yesterday's $3.37 closing price.
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