Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

ImmunoGen, Inc. (IMGN), Seattle Genetics, Inc. (SGEN), Celldex Therapeutics, Inc. (CLDX): A Trio of Cancer Immunotherapy Innovators

Page 1 of 2

The cancer world has been abuzz after an exciting ASCO conference. Bristol Myers Squibb Co. (NYSE:BMY) presented really promising updates for its PD-1 inhibitor nivolumab in late-stage melanoma, leading one Citigroup Inc. (NYSE:C) analyst to declare “the beginning of the end of cancer.”  With Merck & Co., Inc. (NYSE:MRK) and Roche also boasting PD-1 inhibitors we can only hope someone has a magic bullet.  But is there space in this massive market for the smaller biotechs with other innovative immunotherapies?

Seattle Genetics, Inc. (NASDAQ:SGEN)

A brief science spiel

Antibodies are proteins produced by the immune system to recognize pathogens.  Their structure allows them to recognize specific chemical signatures, or antigens, and bind to them tightly.  Normally, this allows the immune system to recognize potentially dangerous pathogens or cancer cells.  The following companies have engineered antibodies for a different purpose: to bind to specific targets and deliver drugs that might treat cancer.

ImmunoGen, Inc. (NASDAQ:IMGN)

ImmunoGen, Inc. (NASDAQ:IMGN)‘s proprietary technology is a chemical linker that tethers an antibody to a cytotoxic drug.  The antibody binds to targets that only appear, or appear in much higher levels, on the surface of cancer cells, and delivers the drug as a ‘targeted antibody payload’, or TAP.   The utility of TAPs is theoretically only limited by the ability to engineer antibodies against specific molecular targets – targets which are being identified at a faster rate thanks to improving genomics technologies.

ImmunoGen, Inc. (NASDAQ:IMGN) currently has three wholly owned TAP treatments for small-cell lung cancer (IMGN901), non-Hodgkin lymphoma (IMGN529), and various solid tumor cancers (IMGN853).  IMGN901 has progressed the farthest in clinical trials, and is currently being compared with standard-of-care in Phase II.

The majority of Immunogen’s pipeline, and all of its revenue, comes from licensing agreements with other firms for use of the TAP design.  ImmunoGen, Inc. (NASDAQ:IMGN) has partnerships with Roche, Bayer, Sanofi SA (ADR) (NYSE:SNY), Biotest, Amgen, Inc. (NASDAQ:AMGN), and most recently Novartis AG (ADR) (NYSE:NVS), each yielding milestone payments and royalties upon commercialization.  Roche funded R&D and commercialization for Immunogen’s only marketed drug, Kadcyla, which was approved for Her-2-positive breast cancer in February.

Despite a $1.4 million loss in the most recent quarter, Immunogen’s milestone revenues increased partly due to the approval of Kadcyla.  Unfortunately Roche will only pay ImmunoGen, Inc. (NASDAQ:IMGN) 3% royalties on Kadcyla sales – after less than one quarter on the market it remains to be seen how much cash that amounts to.  Instead Immunogen will continue to license its TAP technology to add to the $206 million in cash (and no debt) it is using to fund IMGN901 development.

Seattle Genetics, Inc. (NASDAQ:SGEN)

Seattle Genetics, Inc. (NASDAQ:SGEN)’s platform is similar to Immunogen’s.  ‘Antibody-drug conjugates’, or ADCs, are analogous to TAPs in their ability to deliver cytotoxic drug elements directly to cancerous tissues using engineered antibodies.  Like Immunogen, most of these antibodies are developed externally, and Seattle Genetics licenses its ADC technology for drug development.  Seattle has a more robust pipeline than Immunogen, with many collaborating partners and 21 drugs in 31 clinical trials, plus more in preclinical development.  In Q1, licensing agreements accounted for ~36% of revenue.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!