Jefferies Sees Risks From Lack Of Data Supporting ImmunoGen Drug Trial, Cuts Price Target In Half

Jefferies reiterated its Buy rating on ImmunoGen, Inc.

and lowered the price target to $6 from $13. The company reported $60.0M in revenues for the 2016 fiscal year and GAAP EPS of ($1.65) compared to Jefferies estimate of ($1.56) and consensus of ($1.54). The company disclosed that, after a meeting with FDA, the PIII Forward I trial is proceeding as planned with the first patient expected to be treated in 2H16. The analysts continue to see risks associated with the limited data to support this trial. "IMGN is also initiating a Forward II expansion for the mirve + avastin combo and is on track to open the mirve + Keytruda combo this summer." wrote the analysts, adding that the $6 price target was driven through the increase of the risk-adjusted probability of success for mirve from 40 percent to 60 percent due to the limited amount of clinical data to support the PIII Forward I study.