Massachusetts-based cancer treatment company ImmunoGen (NASDAQ: IMGN) reported first quarter 2020 financial results before the market open on May 1st. Revenues increased 55% to $13.3 million and operating costs decreased 26% to $37.1 million resulting in a narrower net loss compared to the same period a year ago. The company recorded a net quarterly loss of $29.1 million, or $0.17 per share, after posting a $43.8 million, or $0.30 per share, loss in the first quarter of 2019.
Management noted that Immunogen’s operational plans “remain on track” despite the challenges surrounding the current COVID-19 pandemic. President and CEO Mark Enyedy stated, “During the last quarter, we moved forward with our registration studies for mirvetuximab and advanced our portfolio of earlier-stage candidates, while adapting to meet the evolving challenges of the COVID-19 pandemic.”
Restructuring Drives Lower Operating Expenses
The decline in operating expenses was largely due to lower R&D expenses which fell 30% to $27.4 million. This was primarily related to the company’s late second quarter 2019 business restructuring that led to decreases in personnel, facility, and third-party research costs. Higher clinical trial expenses partially offset this cost reduction.
ImmunoGen exited the quarter with $247.3 million of cash and cash equivalents on its books compared to $176.2 million at the same time last year. In January, it raised $97.7 million in a secondary stock offering that extended its cash runway into the second half of 2022 and bolstered its overall financial position.
Progress Seen in Multiple Studies
The company also provided updates on some recent clinical trial activity. It has kicked off its key trial of SORAYA involving the use of mirvetuximab soravtansine in patients with platinum-resistant ovarian cancer. The new single-arm study includes women who were previously treated with Avastin and is designed to accelerate the SORAYA’s approval process.
It also announced that data for its FORWARD II Avastin trial for platinum-agnostic ovarian cancer will be presented at the virtual American Society of Clinical Oncology (ASCO) annual meeting later this month. Pre-clinical data on its next generation IMGN151 antibody-drug conjugate (ADC) for ovarian and other cancer types will also be presented at the virtual American Association for Cancer Research (AACR) annual meeting next month.
Immunogen is a leader in the growing field of ADCs as a cancer treatment. It has a diverse portfolio of early stage product candidates and a strong cash position. The company’s main focus is ovarian cancer, the leading cause of death from gynecological cancers in the U.S.
Despite the uncertainty surrounding the current economic environment, Immunogen left its 2020 financial guidance unchanged. It expects revenues of $60 million to $65 million and operating expenses to be between $165 million to $170 million. The cash balance is forecast to decrease to $170 million to $175 million by the end of the year.
After trading higher in the pre-market shares of Immunogen were lower by more than 10% in mid-afternoon trading amid a down day in the U.S. equity markets. Although the results marked an improvement over the first quarter of last year, both revenue and earnings per share fell short of analysts’ expectations. Immunogen SEC Filings