Canaccord Boosts ImmunoGen Target To $20/Share

In a report published Monday, Canaccord Genuity analyst John Newman maintained a Buy rating on

, while raising the price target from $15 to $20, after the company reported strong IMGN853 ovarian data. Immunogen presented data for IMGN853 at ASCO demonstrating a 53 percent response rate vs. 40 percent in the initial ASCO abstract, including a Complete Response (CR). "This is a clear positive in our view," analyst John Newman mentioned. "IMGN853 showed 9/17 patients responding, with n=1 Compete Response (6%), n=8 partial Responses (47%), 5 patients with Stable Disease (29%), and three patients with progressive disease (18%). Twenty patients were enrolled as of 4/30/2015, with data presented for n=17, and n=5 still awaiting initial assessment at 6 weeks," the report stated. The study enrolled Folate Receptor 2+ or higher Epithelial Ovarian Cancer patients who had failed prior platinum therapy, but were not platinum refractory. The data also revealed that IMGN853 showed durable responses despite dose modifications and that eye toxicity was moderate and even reversible. "We are raising our price target to $20 based on higher probability of ultimate clinical success. We now estimate 70% probability of approval vs. 50% prior for IMGN853 in Folate Receptor positive Epithelial Ovarian Cancer," Newman said.