After FDA Approval For Ovarian Cancer Drug, ImmunoGen Becomes Top Pick For This Analyst

• Tuesday, the FDA granted accelerated approval for ImmunoGen Inc’s (NASDAQ: IMGN) Elahere (mirvetuximab soravtansine-gynx) for folate receptor alpha (FRα)-positive, platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer.

• HC Wainwright says the approved label does not require a prior treatment with bevacizumab, which according to management, could nearly double the eligible patient population.

• The analyst increased the price target from $12 to $20, with a Buy rating.

• Elahere’s broader-than-expected label might result from the FDA’s access to preliminary objective response rate (ORR) and duration of response (DOR) data from both arms of the MIRASOL study.

• Elahere’s label includes a boxed warning for ocular toxicities, but HC Wainwright believes it would have a limited impact on Elahere’s adoption.

• Each 21-day cycle treatment would cost $18,000-$25,000, with an annual cost of $182,400 per patient.

• BMO Capital Markets says ImmunoGen shares were under pressure (-13% vs. -0.26% XBI) following the Elahere approval conference call, which was a surprise.

• BMO analyst raised the price target from $17 to $19 on incrementally more positive on MIRASOL data in early 2023.

• The analyst expects mirvetuximab can only achieve ~$300 million peak sales, undervaluing the ovarian cancer opportunity.

• Price Action: IMGN shares are up 5.09% at $5.27 on the last check Wednesday.

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