Oppenheimer Maintains Outperform on Immunomedics After Partnership Restructuring

Oppenheimer has published a research report on Immunomedics

after the company announced a revamping of its partnership with UCB. In the report, Oppenheimer writes, "Earlier today Immunomedics reported a restructuring of its partnership agreement for epratuzumab with UCB

Not Rated). As a reminder, epratuzumab is being developed for oncology and autoimmune indications, and UCB had worldwide rights to autoimmune indications only and buy-in rights for oncology. The new agreement allows UCB to sub-license certain geographies to other pharmaceutical companies. Additionally, UCB gave up its buy-in rights for the oncology indication and paid Immunomedics a $30M non-refundable fee. We believe that this restructuring is very favorable for Immunomedics by providing non-dilutive capital as well as a possibility of faster worldwide development for epratuzumab." Oppenheimer maintains its Outperform rating and $6 price target on Immunomedics, which is currently trading up $0.01 from yesterday's $3.37 closing price.