Investment Thesis
I think Immunomedics (IMMU) is an interesting investment opportunity. The company had become known for its inability to commercialise new drug candidates (35 years of trying, no successes). But current management apparently fought hard to take control of the company and prevent the sale of its flagship drug sacituzumab govitecan to Seattle Genetics (SGEN). There is a wealth of positive data surrounding this antibody drug conjugate that can deliver moderately toxic drug SN-38 to where its needed by combining it with a humanised antibody that targets the TROP 2 receptor.
Sacituzumab govitecan can potentially be used to treat third-line and first-line breast cancers, most notably triple negative breast cancers and also urothelial cancer. Despite a BLA being rejected by the FDA in January '19, the company says its ready to resubmit the application, and if successful, commercialisation would be imminent. Hence, I believe a good strategy would be to buy and hold IMMU stock in anticipation of successful commercialisation.
Company History: The Battle For A Long-Awaited Prized Asset
Can Immunomedics put 35+ years of failure behind them and finally commercialise a drug candidate?
Yes, there is certainly a bear case to be made about this company, and in fact, there have been some notable ones written on these pages. But that was then, and this is now.
Immunomedics today is practically unrecognisable from the husband and wife team of David and Susan Goldenberg that were unable to capitalise on as many as 23 orphan drug designations up to 2017, failing to obtain FDA approval to bring any of them to market.
The Goldenbergs were ousted in a boardroom coup back in 2017 by activist investors VenBio (now known as Avoro Capital Advisors), who had built up a 10% stake in the company and were determined to prevent IMMU from
