RBC Capital's Rating Upgrade Propels IGM Biosciences Into Immunology Limelight

RBC Capital upgraded IGM Biosciences Inc IGMS, a biotechnology focused on antibody medicines for cancer.

RBC analysts upgraded the stock to Outperform from Sector Perform rating with a price target of $21, up $9.

The mechanistic understanding behind B-cell depletion leading to remission of autoimmune diseases has generated significant interest. In recent years, RBC Capital writes that IGM Biosciences has adeptly positioned itself as a potential contributor in this field.

There is evidence for the curative potential of CAR-T in lupus, and a thorough examination of preclinical and clinical data for imvotamab and similar agents indicates that IGM Biosciences focusing on the CD20xCD3 bispecific for inflammation and immunology is a wise move. 

RBC suggests that IGM’s shift of imvotamab from non-Hodgkin’s lymphoma to immunology is a strategic move. It leverages the drug’s exceptional safety record and potent CD20xCD3 IgM-based bispecific properties. 

This transition positions imvotamab as a promising candidate for a convenient off-the-shelf treatment method for autoimmune diseases, thanks to its high efficacy in inducing a short-course response.

Expect data in the second half of 2024 to validate this approach further. 

IGM Biosciences sees this as a long-term opportunity exceeding $1 billion. 

Their other clinical-stage bispecific, aplitabart, maintains flexibility with crucial randomized colorectal cancer data also expected in the second half of 2024. 

Despite recent market recognition, the company’s approximate $500 million enterprise value is seen as leaving ample room for potential upside.

Price Action: IGMS shares are up 12.3% at $14.54 on the last check Friday.

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