ImmunoGen Inc. (IMGN, Financial) filed Quarterly Report for the period ended 2009-12-31.
Immunogen Inc. has a market cap of $405.1 million; its shares were traded at around $7.1 with and P/S ratio of 14.6. Immunogen Inc. had an annual average earning growth of 6.4% over the past 5 years.IMGN is in the portfolios of PRIMECAP Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Bayer HealthCareIn October 2008, we entered into a development and license agreement with Bayer HealthCare AG. The agreement grants Bayer HealthCare 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 HealthCare 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 will be compensated by Bayer HealthCare at a stipulated rate for work performed on behalf of Bayer HealthCare under a mutually agreed-upon research plan and budget which may be amended from time to time during the term of the agreement. We also are entitled to receive payments for manufacturing any preclinical and clinical materials made at the request of Bayer HealthCare as well as for any related process development activities. 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 reached a preclinical milestone which triggered a $1.0 million payment to us. This milestone is included in license and milestone fees for the six-month period ended December 31, 2009.
Amgen, Inc.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 targets. These licenses were taken under an agreement established in 2000 between ImmunoGen and Abgenix, Inc., which later was acquired by Amgen. The agreement grants Amgen certain rights to test our maytansinoid TAP technology with antibodies and to license on agreed-upon terms the right to use the technology with antibodies to individual targets to develop products. 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 periods of substantial involvement. We also are entitled to receive milestone payments potentially totaling $34 million plus royalties on the sales of any resulting products. When milestone fees are specifically tied to a separate earnings process and are deemed to be substantive and at risk, revenue will be recognized when such milestones are achieved. Amgen is responsible for the development, manufacturing, and marketing of any products resulting from this license.
Revenues from license and milestone fees for the three months ended December 31, 2009 decreased $3.9 million to $827,000 from $4.8 million in the same period ended December 31, 2008. Included in license and milestone fees for the three months ended December 31, 2008 was a $4 million milestone related to the initiation of Phase II clinical testing of AVE1642 by sanofi-aventis. Total revenue from license and milestone fees recognized from each of our collaborative partners in the three-month periods ended December 31, 2009 and 2008 is included in the following table (in thousands):
Other expense for the three months ended December 31, 2009 and 2008 was $64,000 and $5,000, respectively. During the three months ended December 31, 2009 we recorded net losses on forward contracts of $49,000 compared to net losses on forward contracts of $79,000 for the three months ended December 31, 2008. We incurred $(9,000) and $67,000 in foreign currency translation (losses) gains related to obligations with non-U.S. dollar-based suppliers during the three months ended December 31, 2009 and 2008, respectively.
Revenues from license and milestone fees for the six months ended December 31, 2009 decreased $4.3 million to $2.7 million from $7.0 million in the same period ended December 31, 2008. Included in license and milestone fees for the six months ended December 31, 2009 was a $1 million preclinical milestone earned pursuant to our development and license
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Immunogen Inc. has a market cap of $405.1 million; its shares were traded at around $7.1 with and P/S ratio of 14.6. Immunogen Inc. had an annual average earning growth of 6.4% over the past 5 years.IMGN is in the portfolios of PRIMECAP Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Highlight of Business Operations:
In August 2008, sanofi-aventis exercised its option under a 2006 agreement for expanded access to our TAP technology. We received $3.5 million with the exercise of this option in August 2008, in addition to the $500,000 we received in December 2006 with the signing of the option agreement. The agreement has a three-year term from the date of the exercise of the option and can be renewed by sanofi-aventis for one additional three-year term by payment of a $2 million fee. We have deferred the $3.5 million exercise fee and are recognizing this amount as revenue over the initial three-year option term.Bayer HealthCareIn October 2008, we entered into a development and license agreement with Bayer HealthCare AG. The agreement grants Bayer HealthCare 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 HealthCare 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 will be compensated by Bayer HealthCare at a stipulated rate for work performed on behalf of Bayer HealthCare under a mutually agreed-upon research plan and budget which may be amended from time to time during the term of the agreement. We also are entitled to receive payments for manufacturing any preclinical and clinical materials made at the request of Bayer HealthCare as well as for any related process development activities. 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 reached a preclinical milestone which triggered a $1.0 million payment to us. This milestone is included in license and milestone fees for the six-month period ended December 31, 2009.
Amgen, Inc.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 targets. These licenses were taken under an agreement established in 2000 between ImmunoGen and Abgenix, Inc., which later was acquired by Amgen. The agreement grants Amgen certain rights to test our maytansinoid TAP technology with antibodies and to license on agreed-upon terms the right to use the technology with antibodies to individual targets to develop products. 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 periods of substantial involvement. We also are entitled to receive milestone payments potentially totaling $34 million plus royalties on the sales of any resulting products. When milestone fees are specifically tied to a separate earnings process and are deemed to be substantive and at risk, revenue will be recognized when such milestones are achieved. Amgen is responsible for the development, manufacturing, and marketing of any products resulting from this license.
Revenues from license and milestone fees for the three months ended December 31, 2009 decreased $3.9 million to $827,000 from $4.8 million in the same period ended December 31, 2008. Included in license and milestone fees for the three months ended December 31, 2008 was a $4 million milestone related to the initiation of Phase II clinical testing of AVE1642 by sanofi-aventis. Total revenue from license and milestone fees recognized from each of our collaborative partners in the three-month periods ended December 31, 2009 and 2008 is included in the following table (in thousands):
Other expense for the three months ended December 31, 2009 and 2008 was $64,000 and $5,000, respectively. During the three months ended December 31, 2009 we recorded net losses on forward contracts of $49,000 compared to net losses on forward contracts of $79,000 for the three months ended December 31, 2008. We incurred $(9,000) and $67,000 in foreign currency translation (losses) gains related to obligations with non-U.S. dollar-based suppliers during the three months ended December 31, 2009 and 2008, respectively.
Revenues from license and milestone fees for the six months ended December 31, 2009 decreased $4.3 million to $2.7 million from $7.0 million in the same period ended December 31, 2008. Included in license and milestone fees for the six months ended December 31, 2009 was a $1 million preclinical milestone earned pursuant to our development and license
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