ImmunoGen Completes Strategic Review to Strengthen the Organization and Drive Long-Term Growth
30 September 2016 - 6:01AM
Business Wire
ImmunoGen, Inc. (Nasdaq: IMGN), a leader in the expanding field
of antibody-drug conjugates (ADCs) for the treatment of cancer,
today announced the completion of a strategic review of its
operations. As a result of this initiative, the Company will reduce
its workforce by 17% and seek to partner its non-core B-cell
lymphoma programs, creating a stronger organization focused on
delivering innovative ADC therapies that meaningfully improve the
lives of cancer patients.
“I am grateful for the contributions that the employees affected
by this plan have made to ImmunoGen, and we will be supporting them
through this transition,” stated Mark Enyedy, President and CEO of
ImmunoGen. “We have taken this necessary step to build a leaner and
more agile organization, better positioned to execute on our
strategic objectives. As part of this effort, we restructured our
Technical Operations, substantially reduced G&A, and revised
our approach to managing clinical trials. By adapting how we work
and aligning our portfolio priorities, we will improve operating
performance, extend our cash position, and enable the Company to
create value on a sustainable basis. I am confident this plan will
allow ImmunoGen to achieve its tremendous potential.”
Through this plan, ImmunoGen will realize significant cost
savings over the next two years in headcount, program, and support
activities. These savings will include approximately $11 million
per year relating to the elimination of 65 positions, primarily in
Technical Operations and G&A functions. Going forward, the
Company expects to focus investment principally on strategic growth
initiatives, including conducting the mirvetuximab soravtansine
Phase 3 pivotal trial and accelerating the development of its IGN
programs, IMGN779 and IMGN632.
Based on its strong cash position and the savings generated from
this strategic review, ImmunoGen expects to achieve its
previously-stated goal of funding operations through the interim
analysis of the mirvetuximab soravtansine pivotal trial and into
mid-2018. This cash runway excludes any revenue generated from
potential new product partnering deals. As a result of the
workforce reduction, ImmunoGen will record a one-time charge
totaling approximately $3.5 million related to termination benefits
and other related expenses. The majority of this charge is expected
to be recorded in the quarter ending September 30, 2016.
In addition, the Company has prioritized its portfolio and
aligned its resources to deliver on key development milestones and
drive innovation in oncology, including:
- Executing a speed-to-market strategy to
obtain full marketing approval for lead program mirvetuximab
soravtansine, which will enter Phase 3 development next
quarter;
- Accelerating its earlier-stage
portfolio of highly innovative IGN programs – IMGN779, IMGN632;
and
- Maintaining critical scale in Research
to support continued innovation in ADCs as well as existing and new
partnerships.
As part of this effort and the prioritization of its IGN
programs, ImmunoGen will seek to monetize its non-core B-cell
assets – IMGN529 and coltuximab ravtansine – through partnering
with interested parties.
Conference Call Information
ImmunoGen is holding a conference call Thursday, September 29,
2016 at 4:30 pm ET to discuss this announcement. To access the live
call by phone, dial 913-312-1463; the conference ID is 5883178. The
call also may be accessed through the Investors section of the
Company's website, www.immunogen.com. Following the live webcast, a
replay of the call will be available at the same location through
October 13, 2016.
This press release includes forward-looking statements. For
these statements, ImmunoGen claims the protection of the safe
harbor for forward-looking statements provided by the Private
Securities Litigation Reform Act of 1995. It should be noted that
there are risks and uncertainties related to the development of
novel anticancer products, including risks and uncertainties
related to the execution of the realignment of the Company’s
operations, including, without limitation, unanticipated delays and
costs in implementing the workforce reduction, the Company’s
ability to identify potential licensees of its B-cell assets and
successfully negotiate such a transaction, as well as the risks and
uncertainties related to the advancement of the Company’s internal
development programs, including clinical studies and regulatory
processes, their timings and results. A review of these risks can
be found in ImmunoGen's Annual Report on Form 10-K for the fiscal
year ended June 30, 2016 and other reports filed with the
Securities and Exchange Commission.
About ImmunoGen, Inc.
ImmunoGen is a clinical-stage biotechnology company that
develops targeted cancer therapeutics using its proprietary ADC
technology. ImmunoGen's lead product candidate, mirvetuximab
soravtansine, is being advanced to a Phase 3 trial for FRα-positive
platinum-resistant ovarian cancer, and is in Phase 1b/2
testing in combination regimens for earlier-stage disease.
ImmunoGen's ADC technology is used in Roche's marketed product,
Kadcyla®, in three other clinical-stage ImmunoGen product
candidates, and in programs in development by partners Amgen,
Bayer, Biotest, CytomX, Lilly, Novartis, Sanofi and Takeda. More
information about the Company can be found at
www.immunogen.com.
Kadcyla® is a registered trademark of Genentech, a member of the
Roche Group.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160929006306/en/
For InvestorsImmunoGen, Inc.Sarah Kiely,
781-895-0600sarah.kiely@immunogen.comorFor MediaImmunoGen, Inc.Amy
Reilly, 781-895-0138Amy.Reilly@immunogen.comorFTI Consulting
Inc.Robert Stanislaro,
212-850-5657Robert.Stanislaro@fticonsulting.com
ImmunoGen (NASDAQ:IMGN)
Historical Stock Chart
From Apr 2024 to May 2024
ImmunoGen (NASDAQ:IMGN)
Historical Stock Chart
From May 2023 to May 2024