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John P. Gavin, CFA, is the founder and CEO of Disclosure Insight®, an independent publisher of investment research. Mr. Gavin has spent his entire career of over 25 years in the financial services industry. Prior to starting “DI” in 2000, he worked as an equity analyst and portfolio manager with... More
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  • IMGN Diversifies Revenue Sources with Addition of New Collaborative Partner - Favorable Given IMGN Has No Approved Products 0 comments
    Dec 21, 2011 9:42 AM | about stocks: IMGN, LLY, AMGN

    ImmunoGen (NASDAQ: IMGN) announced this morning that it had entered into a collaboration agreement with Eli Lilly (NYSE: LLY). The agreement is good news for IMGN as it represents another potential revenue source for a company that has yet to generate any product sales.

    Under the agreement, LLY will pay a $20 million upfront fee to obtain a “limited number” of licenses to use IMGN’s maytansinoid Targeted Antibody Payload technology to develop anticancer therapeutics. In addition to the upfront fee, IMGN is eligible to receive up to $200 million in milestone payments for each license as well as royalties on the sales of any resulting products.

    LLY joins a list of other major drug manufacturers as a significant collaborative partner. Agreements with Amgen, sanofi-aventis, Bayer HealthCare, and Biotest accounted for 41%, 23%, 17%, and 9%, respectively, of IMGN’s $19.3 million in FY11 revenue. That $19.3 million represented just 24% of operating expenses. The $20 million upfront payment received from LLY adds to the company’s $180 million in cash and equivalents held as of 30-Sep-11.

    This is the press release announcing the agreement.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: IMGN, LLY, AMGN
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