Ovarian Cancer Player ImmunoGen Can Potentially Be Attractive M&A Target: JP Morgan

JP Morgan upgraded ImmunoGen Inc IMGN from Neutral to Overweight with a price target of $22, up from $9, based on insights gathered from a recent physician survey, which focused on the ongoing launch of Elahere (mirvetuximab soravtansine-gynx) in platinum-resistant ovarian cancer (PROC), as well as their assessment of IMGN's R&D portfolio. 

The analysts Brian Cheng and Sungin Yun note strong confidence in the growth trajectory of Elahere's launch in the U.S. 

Also Read: ImmunoGen Outperforms Q2 Revenue Expectations Bolstered By Strong Elahere Sales

The feedback received from the survey, which involved 20 U.S. oncologists, has been positive, indicating sustained demand and an increasing adoption rate.

Recently, ImmunoGen announced a pact with Takeda Pharmaceutical Company Limited TAK to develop and commercialize Elahere in Japan.

JP Morgan writes that IMGN's current valuation does not fully capture the potential of its commercial product. 

Furthermore, the expansion possibilities for mirvetuximab soravtansine-gynx and other clinical-stage assets represent attractive avenues for potential upside. 

Notably, the anticipated overall response rate (ORR) results from the Phase 2 single-arm PICCOLO trial in the platinum-sensitive PSOC setting by year-end are a compelling near-term focus that could further strengthen investor confidence in Elahere's market potential.

The analysts note that the company is well-positioned and potentially appealing as a "bolt-on" target for mergers and acquisitions or additional partnerships with pharmaceutical or biotechnology companies.

Price Action: IMGN shares are up 4.01% at $16.07 on the last check Wednesday.