J.P. Morgan Neutral On ImmunoGen After Earnings (IMGN)

J.P. Morgan Chase & Co. has a Neutral rating and a $7 price target on shares of ImmunoGen IMGN. In a note to investors, J.P. Morgan writes, "IMGN reported relatively in-line FY3Q11 results and offered a pipeline update including progress on its early stage drugs. Our underlying thesis is unchanged, and we remain Neutral given valuation and timelines for lead breast cancer asset T-DM1." J.P. Morgan goes on to say, "In the end, our Neutral thesis is generally unchanged given that we already assume 1st line use in our valuation (and adjuvant), the mid-single digit royalty caps profits to IMGN, and the next major catalyst (EMILIA) is likely a little over a year away. That said, we do see T-DM1 as a real drug and remain optimistic for approval in mBC. There also clearly appears to be an investor base that's willing to be patient and let this broad development program play out. Furthermore, we still like the platform and see attractive LT potential for empowered antibodies in cancer therapy." Shares of IMGN are down 24 cents to $13.17, a loss of 1.8%.