ImmunoGen, AbbVie's $10B Deal Comes At 'Right Time' Analyst Says In Downgrade Note

AbbVie Inc ABBV is acquiring ImmunoGen, Inc. IMGN for around $10 billion.

The deal, which is expected to close in mid-2024, represents a “great price” for ImmunoGen, at $31.26 per share, according to Piper Sandler.

The ImmunoGen Analyst: Joseph Catanzaro downgraded the rating for ImmunoGen from Overweight to Neutral, while raising the price target from $24 to $31.

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The ImmunoGen Thesis: The AbbVie deal has come at the right time, as ImmunoGen enters 2024 “with questions around when the Elahere launch might hit a ceiling given its robust uptake,” Catanzaro said in the downgrade note.

A competing bid is unlikely to appear, “as we think something north of the ABBV offer would be difficult for any interested party to justify,” the analyst wrote.

“IMGN's ADC platform/pipeline complement ABBV's oncology franchise, specifically filling a gap in ovarian cancer and augmenting its presence in solid tumors, along with complementary ADC technologies,” he added.

“We downgrade to Neutral and raise our price target to $31 to reflect the deal terms,” Catanzaro stated.

IMGN Price Action: Shares of ImmunoGen had declined by 0.53% to $29.16 at the time of publication on Monday.

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