I've certainly been one to criticize IMGN for being too secretive, but in the case of IMGN 853, they were probably to open. They discussed a plan to do registrational Phase II Trials with little Phase I/II data in. As more data came in they recognized the earlier data was somewhat better than what they were seeing, and the scenario changed.
Now investors would have been thrilled had they been told that as a Phase I/II trial was concluding they'd determined the drug was ready to put into a Phase III, that would have been an exceptional move, something they'd never done before. Instead they announce results are not as good as previously thought, so the registrational Phase II's are out. They also announce missing consensus estimates and that their loss for the year may be slightly higher than previously anticipated.
In short, IMGN couldn't have screwed up what should have been good news any worse than they did, and shareholders were severely punished. Thankfully we're getting a new CEO shortly, and hopefully he's someone who knows how to present things positively, and when not to present things at all.
I believe we'll still be impressed with results to be presented at ASCO. I also think IMGN ought to be at a market cap that's at least a third that of SGEN, right now it's less than an eighth. Compare the companies and tell me I'm wrong, and why.
Gary |
