Wedbush Reports Update on Immunomedics' Restructuring Plan with UCB SA

Wedbush Securities has published a research report on Immunimedics IMMU after the company announced its restructured partnership with UCB SA. In the report, Wedbush writes, "Under the new agreement UCB receives the right to select a partner to sublicense rights for certain territories and, in return, has returned its buy-in right for the cancer indication to IMMU. In addition to receiving a $30-million payment, IMMU will issue UCB a 5-year warrant to for 1 million shares at $8. The drug is currently in two Phase III trials for moderate to severe lupus and the company has received interest from potential partners. Epratuzumab is also in several Phase II trials for NHL. We note that cash from the amended deal may help fund a Phase III trial for IMMU's 90Y-Clivatuzumab." Wedbush Securities maintains its Outperform rating and $6 price target on Immunomedics, which closed yesterday at $3.34.