Recs

0

Why ImmunoGen, Inc. Jumped Higher Today

What happened

ImmunoGen (NASDAQ: IMGN  ) is up 15.6% at 3:35 p.m. EDT on no news. The stock price bump might be a carryover from yesterday's upgrade by Leerink Partners. Or maybe it's short-sellers buying to cover their shorts after yesterday's move. Or maybe it's just because it's a biotech and the sun came up today. Who knows?

So what

What is clear is that these short-term moves -- there was another unexplained one just last week -- have more to do with investor sentiment than ImmunoGen's fundamentals.

That said, investors are clearly hoping that the fundamentals will be different in the future, because valuations always revert to a company's ability to generate revenue and eventually profits. Investors wouldn't be willing to buy or hold at these higher prices if that weren't the case.

Doctor and patient having a conversation

Image source: Getty Images.

The next value-creating event will come in the form of data from a phase 1b/2 trial called FORWARD II, testing ImmunoGen's lead drug mirvetuximab soravtansine in combination with Avastin, carboplatin, Doxil, or Keytruda. Investors will also get to see pooled data from phase 1 trials testing mirvetuximab soravtansine in patients with ovarian cancer shortly. Both data sets are expected to be released this quarter.

The results aren't likely to be enough to get mirvetuximab soravtansine approved, but the data will help investors better interpret the likelihood that ImmunoGen's ongoing phase 3 trial will show the drug works better than placebo. That trial, dubbed FORWARD I, which is testing mirvetuximab soravtansine in patients with platinum-resistant ovarian cancer, will be enough to gain marketing approval by the Food and Drug Administration if the trial is successful.

Now what

Long-term investors can ignore these short-term moves -- like the ones that go in the opposite direction -- as they're not important to the overall investment thesis. If mirvetuximab soravtansine helps ovarian cancer patients, today's move will have no influence on the valuation after the FORWARD I data are revealed.

10 stocks we like better than ImmunoGen
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and ImmunoGen wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of April 3, 2017


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 4014612, ~/Articles/ArticleHandler.aspx, 4/27/2017 2:45:57 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
Change up DOW 20988.7 13.6 0.1%
Change up S&P 500 2390.3 2.9 0.1%
Change up NASD 6044.3 19.1 0.3%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/27/2017 2:30 PM
IMGN $4.31 Up +0.01 +0.23%
ImmunoGen CAPS Rating: **

Advertisement