J.P. Morgan Neutral on ImmunoGen

J.P. Morgan Chase & Co. is out with a research report on ImmunoGen (NASDAQ: IMGN) and it has a Neutral rating and a $8 price target on shares.

In a note to clients, J.P. Morgan Chase & Co. writes, "This weekend at ESMO (European Society of Medical Oncology conf), IMGN's partner, Roche, presented front-line mBC data for T-DM1 that showed an impressive progression-free survival (PFS) benefit over Herceptin + chemo. Roche previously announced positive top-line results, but Sunday's data showed the significant magnitude of improvement with few safety concerns. We assume significant use of T- DM1 in metastatic breast cancer (mBC) as the drug continues to impress in the 1L, 2L, and 3L settings. However, the key question, in our view, is whether Roche will pursue development in the adjuvant setting, which we believe is necessary to justify a higher valuation for IMGN. Without further visibility on this issue, we remain Neutral."

Shares of IMGN closed at $10.26 on Friday.