ImmunoGen's Turnaround Is 'In Full-Swing' Following ASCO Presentations

RBC's Matthew Eckler, Ph.D., upgrades ImmunoGen's stock from Sector Perform to Outperform with a price target boosted from $5 to $12 due to an increased conviction in a Phase 3 trial exploring mirvetuximab coupled with management's ongoing turnaround effort.

More Constructive On Mirvetuximab

ImmunoGen's presentation at ASCO 2017 included an update on mirvetuximab single-agent results and pooled data from three separate Phase 1 cohorts, the analyst continued. Perhaps most notably, 36 platinum-resistant patients met the Phase III FORWARD I enrollment criteria.

Turnaround Initiatives

"Among these patients the ORR was 47%, with a median PFS of 6.7 months," Eckler explained. "This compares favorably to results with paclitaxel, PLD, or topotecan, as well as from Avastin (bevacizumab) in the AURELIA trial (27% ORR; 6.7 month mPFS), which enrolled patients who received fewer prior therapies."

Now that mirvetuximab has demonstrated comparable efficacy in three separate Phase 1 cohorts as supportive of the company's move to advance the agent into Phase 3 trials, the analyst continued. This also provides "assurances around its probability of success."

ImmunoGen has been busy in monetizing non-core assets and this provides "concrete evidence" of management's commitment to its turnaround efforts, Eckler also stated. The company's ultimate objective is to focus squarely on advancing mirvetuximab, which is a bullish sign for the stock.

"So while acknowledging that we may be somewhat late to the party, we think there remains significant room for upside at current levels," the analyst wrote.

At time of publication, shares of ImmunoGen were up 9.25 percent at $7.97.