Stay Cool with Active Stock: ImmunoGen, Inc.’s (NASDAQ:IMGN)

On 29 August 2k19, shares of ImmunoGen, Inc.’s (NASDAQ:IMGN) showed the surged by $4.63% with closing price of $2.71 during the normal trading session on Thursday and reaching a high of $2.7250. IMGN stock had a low trading volume of 0.84 million shares on that day, which is compared to the average daily volume of 2.7 million shares.

ImmunoGen, Inc., (IMGN) recently reviewed recent progress in the business and stated financial results for the quarter ended June 30, 2k19.

FINANCIAL RESULTS

Revenues for the quarter ended June 30, 2k19 were $15.5M, contrast with $9.3M for the quarter ended June 30, 2k18. Revenues in the second quarter of 2k19 included $10.4M in non-cash royalty revenues, contrast with $7.2M for the second quarter of 2k18. License and milestone fees of $5.1M for the second quarter of 2k19 included recognition and receipt of a $5M milestone pursuant to a license contract with Genentech, a member of the Roche Group, contrast to $1.3M of upfront license fees recognized in the second quarter of 2k18. Revenues for the previous year period also included $0.4M of research and development (R&D) support fees and $0.3M of clinical materials revenue, contrast with $0.1M of similar fees earned in the current period.

Operating expenses for the second quarter of 2k19 were $56.6M, contrast with $48.0M for the same quarter in 2k18. The increase was driven by a $19.3M restructuring charge recorded in the current period resulting from the operational changes reported on June 27, 2k19, which includes a one-time severance charge, retention costs, and losses recorded on laboratory equipment, contrast to a $0.7M charge recorded in the second quarter of 2k18 related to the decommissioning of the Company’s Norwood facility. R&D expenses were $28.6M in the second quarter of 2k19, contrast with $38.7M for the second quarter of 2k18. This decrease was primarily Because of lower personnel expenses driven by adjustments made in the current quarter to bonus and stock compensation expense as a result of the restructuring of the business, lower clinical trial costs in the current period driven by patient enrollment in the FORWARD I Phase 3 clinical trial during the previous year period, and lower external manufacturing costs. General and administrative expenses were flat at $8.7M in the second quarter of both 2k19 and 2k18.

ImmunoGen stated a net loss of $43.4M, or $0.29 per basic and diluted share, for the second quarter of 2k19, contrast with a net loss of $41.6M, or $0.31 per basic and diluted share, for the same quarter last year. Weighted average shares outstanding increased to 148.1M from 134.4M in those quarters.

ImmunoGen had $239.8M in cash and cash equivalents as of June 30, 2k19, contrast with $262.3M as of December 31, 2k18, and had $2.1M of convertible debt outstanding in each period. Cash used in operations was $20.8M for the first six months of 2k19, contrast with cash used in operations of $85.3M for the same period in 2k18. The current period benefited from $65.2M of net proceeds generated from the sale of the Company’s residual rights to Kadcyla® (ado-trastuzumab emtasine) royalties in January 2k19. Capital expenditures were $2.4M and $2.1M for the first six months of 2k19 and 2k18, respectively.

FINANCIAL GUIDANCE

Following the completion of its operational review in June 2k19, ImmunoGen has updated its financial guidance for 2k19 as follows:

  • revenues between $40M and $45M;
  • operating expenses between $175M and $180M; and
  • cash and cash equivalents at December 31, 2k19, between $165M and $170M.

Return on assets ratio of the Company was -56.40%. The stock has behind by -73.87% from its 52-week high while it has up by 53.98% from its 52-week low price.

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