ImmunoGen Shares Surge 30% Following Earnings

ImmunoGen, Inc. IMGN reported fiscal second quarter earnings on Friday morning. Shares surged more than 30 percent, trading recently at $8.10.

The company announced net income of $13.6 million, or $0.16 per share, substantially -$0.21- above Capital IQ’s Consensus Estimate of a $0.05 per share loss, and also up from the same quarter last year, which saw net income of $3.8 million, or $0.04 per share.

Revenue rose 60.5 percent year-over-year, to $48.3 million, comfortably surpassing the $33.45 million consensus estimate, and up from $30.1 million last year.

The company had, as of December 31, 2014, $106.6 million in cash and cash equivalents, and no debt outstanding.

For the first six months of fiscal 2015, Capital expenditures were $2.6 million, up from $2.3 million last year.

David Johnston, Executive Vice President and CFO, commented on the results: “our financial results this quarter reflect our business model of investing in the development of our own product candidates designed to make a meaningful difference for patients with cancer, and utilizing partnerships to help fund these programs,”

Management also reiterated its guidance for fiscal 2015. The company expects revenue of $100 million - $105 million; net loss of  $60 million - $65 million; operating expenses between $160 million and $165 million; and capital expenditures to be in the $7 million - $9 million range.

Daniel Junius, ImmunoGen’s President and CEO, said they believe “the potential of ImmunoGen as a product company will become more clearly established in 2015, driven by achievements with our [the company’s] most advanced compounds, IMGN853 and IMGN529 (…) We are preparing to expand the IMGN853 clinical program markedly this year based on the encouraging clinical findings to date, which are being submitted for presentation at the ASCO annual meeting. We expect to initiate assessment of IMGN529 specifically in the treatment of diffuse large B-cell lymphoma – building on the promising data reported at ASH last month – and in chronic lymphocytic leukemia, and to present more mature clinical findings later in the year.”