ImmunoGen, Inc. (IMGN) is seeing a big move Monday, as the company’s shares surged by over 16% on the day on news of a licensing agreement with Japanese company Takeda Pharmaceutical.
Under the terms of the agreement, ImmunoGen will get $20 million up front from Takeda and is eligible for milestone payments potentially totaling up to $210 million, plus royalties on sales.
“Takeda shares our commitment to developing novel anticancer therapies that meaningfully improve the lives of patients, and we look forward to collaborating with them to create important new ADC product candidates,” said Daniel Junius, ImmunoGen President and CEO.
“ADC technology is a critically important tool in addressing unmet needs in oncology. By partnering with ImmunoGen, we are able to leverage this important technology in Takeda’s R&D program and bring novel agents through the clinic,” added Christopher Claiborne, Ph.D., Head of the Oncology Drug Discovery Unit at Takeda.
IMGN shares recently gained $1.25 to $8.69. The stock is trading on heavy volume with nearly 8 million shares changing hands as of 12:23 p.m. EDT, well ahead of its three month daily average of 1.56 million shares. In the past 52 weeks, shares of Waltham, Massachusetts-based biotechnology firm have traded between a low of $5.34 and a high of $16.09. Shares are down 54.38% year-over-year, while the Standard & Poor’s 500 index has risen nearly 13.50%.