ImmunoGen Inc. (IMGN, Financial) filed Quarterly Report for the period ended 2010-12-31.
Immunogen Inc. has a market cap of $566 million; its shares were traded at around $8.54 with and P/S ratio of 40.6. Immunogen Inc. had an annual average earning growth of 6.9% over the past 10 years.Hedge Fund Gurus that owns IMGN: Stanley Druckenmiller of Duquesne Capital Management, LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns IMGN: PRIMECAP Management.
AmgenIn September 2000, we entered into a ten-year broad option agreement with Abgenix, Inc. which was later acquired by Amgen. Under this agreement, in September 2009 and November 2009, we entered into two development and license agreements with Amgen Inc. granting Amgen the exclusive right to use our maytansinoid TAP technology to develop anticancer therapeutics to specific antigen targets. Under the terms of the licenses, we received a $1 million upfront payment with each license taken. We have deferred the $1 million upfront payments and are recognizing these amounts as revenue ratably over the estimated period of our substantial involvement. Also under the September 2000 agreement, in September 2010, we granted Amgen a combination of exclusive and non-exclusive options to test our TAP technology with antibodies to specific antigen targets. For each option taken, Amgen paid us a nominal fee. The option fees have been deferred and are being recognized ratably over the option periods. These options provide Amgen with the right to take a license for each of these targets, during the time period allowed, on the license terms established in the September 2000 agreement. Under that agreement, for each license, we are entitled to receive milestone payments potentially totaling $34 million plus royalties on the sales of any resulting products. Amgen no longer has the right to designate new targets under this agreement, although the option periods with respect to the designated targets for the options granted will remain in effect for the remainder of the respective option periods.
Our total revenues for the three months ended December 31, 2010 and 2009 were $4.2 million and $3.1 million, respectively. The $1.1 million increase in revenues in the three months ended December 31, 2010 from the same period in the prior year is attributable to an increase in research and development support revenue, clinical materials reimbursement revenue and to a lesser extent, license and milestone fees, all of which are discussed below.
Revenues from license and milestone fees for the three months ended December 31, 2010 increased $39,000 to $866,000 from $827,000 in the same period ended December 31, 2009. During the current three-month period, Biogen Idec announced its intent to spin-off or out-license its oncology unit, which includes its BIIB015 TAP compound. Upon notification, we stopped amortization of the upfront payment received upon execution of the development and license agreement with Biogen Idec and reclassified the remaining balance of $270,000 to long-term deferred revenue. We will re-evaluate this accounting as the disposition of this program becomes more evident and we can determine the extent of our future involvement. Total revenue from license and milestone fees recognized from each of our collaborative partners in the three-month periods ended December 31, 2010 and 2009 is included in the following table (in thousands):
Clinical materials reimbursement increased by approximately $309,000 in the three months ended December 31, 2010, to $1.3 million from $998,000 in the three months ended December 31, 2009. We are reimbursed for certain of our direct and overhead costs to produce clinical materials plus, for certain programs, a profit margin. The amount of clinical materials reimbursement we earn, and the related cost of clinical materials charged to research and development expense, is directly related to the number of clinical trials our collaborators are preparing or have underway, the speed of enrollment in those trials, the dosage schedule of each clinical trial and the time period, if any, during which patients in the trial receive clinical benefit from the clinical materials, and the supply of clinical-grade material to our collaborators for process development and analytical purposes. As such, the amount of clinical materials reimbursement revenue and the related cost of clinical materials charged to research and development expense may vary significantly from quarter to quarter and year to year.
Research and development expense for the three months ended December 31, 2010 increased $3.8 million to $16.0 million from $12.2 million for the three months ended December 31, 2009. The increase was primarily due to (i) increased antibody development and supply expense due to timing of supply requirements and increased development work; (ii) increased clinical trial costs due primarily to higher patient enrollment and increased site management costs driven from expanded sites; (iii) increased contract service expense; and (iv) increased salaries and related expenses due primarily to additional headcount. The number of our research and development personnel increased to 198 as of December 31, 2010 compared to 179 at December 31, 2009.
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Immunogen Inc. has a market cap of $566 million; its shares were traded at around $8.54 with and P/S ratio of 40.6. Immunogen Inc. had an annual average earning growth of 6.9% over the past 10 years.Hedge Fund Gurus that owns IMGN: Stanley Druckenmiller of Duquesne Capital Management, LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns IMGN: PRIMECAP Management.
Highlight of Business Operations:
Bayer Schering PharmaIn October 2008, we entered into a development and license agreement with Bayer Schering Pharma. The agreement grants Bayer Schering Pharma exclusive rights to use our maytansinoid TAP technology to develop and commercialize therapeutic compounds to a specific target. We received a $4 million upfront payment upon execution of the agreement, andfor each compound developed and marketed by Bayer Schering Pharma under this collaborationwe could potentially receive up to $170.5 million in milestone payments; additionally, we are entitled to receive royalties on the sales of any resulting products. We have deferred the $4 million upfront payment and are recognizing this amount as revenue over the estimated period of substantial involvement. In September 2009, Bayer Schering Pharma reached a preclinical milestone which triggered a $1 million payment to us.AmgenIn September 2000, we entered into a ten-year broad option agreement with Abgenix, Inc. which was later acquired by Amgen. Under this agreement, in September 2009 and November 2009, we entered into two development and license agreements with Amgen Inc. granting Amgen the exclusive right to use our maytansinoid TAP technology to develop anticancer therapeutics to specific antigen targets. Under the terms of the licenses, we received a $1 million upfront payment with each license taken. We have deferred the $1 million upfront payments and are recognizing these amounts as revenue ratably over the estimated period of our substantial involvement. Also under the September 2000 agreement, in September 2010, we granted Amgen a combination of exclusive and non-exclusive options to test our TAP technology with antibodies to specific antigen targets. For each option taken, Amgen paid us a nominal fee. The option fees have been deferred and are being recognized ratably over the option periods. These options provide Amgen with the right to take a license for each of these targets, during the time period allowed, on the license terms established in the September 2000 agreement. Under that agreement, for each license, we are entitled to receive milestone payments potentially totaling $34 million plus royalties on the sales of any resulting products. Amgen no longer has the right to designate new targets under this agreement, although the option periods with respect to the designated targets for the options granted will remain in effect for the remainder of the respective option periods.
Our total revenues for the three months ended December 31, 2010 and 2009 were $4.2 million and $3.1 million, respectively. The $1.1 million increase in revenues in the three months ended December 31, 2010 from the same period in the prior year is attributable to an increase in research and development support revenue, clinical materials reimbursement revenue and to a lesser extent, license and milestone fees, all of which are discussed below.
Revenues from license and milestone fees for the three months ended December 31, 2010 increased $39,000 to $866,000 from $827,000 in the same period ended December 31, 2009. During the current three-month period, Biogen Idec announced its intent to spin-off or out-license its oncology unit, which includes its BIIB015 TAP compound. Upon notification, we stopped amortization of the upfront payment received upon execution of the development and license agreement with Biogen Idec and reclassified the remaining balance of $270,000 to long-term deferred revenue. We will re-evaluate this accounting as the disposition of this program becomes more evident and we can determine the extent of our future involvement. Total revenue from license and milestone fees recognized from each of our collaborative partners in the three-month periods ended December 31, 2010 and 2009 is included in the following table (in thousands):
Clinical materials reimbursement increased by approximately $309,000 in the three months ended December 31, 2010, to $1.3 million from $998,000 in the three months ended December 31, 2009. We are reimbursed for certain of our direct and overhead costs to produce clinical materials plus, for certain programs, a profit margin. The amount of clinical materials reimbursement we earn, and the related cost of clinical materials charged to research and development expense, is directly related to the number of clinical trials our collaborators are preparing or have underway, the speed of enrollment in those trials, the dosage schedule of each clinical trial and the time period, if any, during which patients in the trial receive clinical benefit from the clinical materials, and the supply of clinical-grade material to our collaborators for process development and analytical purposes. As such, the amount of clinical materials reimbursement revenue and the related cost of clinical materials charged to research and development expense may vary significantly from quarter to quarter and year to year.
Research and development expense for the three months ended December 31, 2010 increased $3.8 million to $16.0 million from $12.2 million for the three months ended December 31, 2009. The increase was primarily due to (i) increased antibody development and supply expense due to timing of supply requirements and increased development work; (ii) increased clinical trial costs due primarily to higher patient enrollment and increased site management costs driven from expanded sites; (iii) increased contract service expense; and (iv) increased salaries and related expenses due primarily to additional headcount. The number of our research and development personnel increased to 198 as of December 31, 2010 compared to 179 at December 31, 2009.
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