ImmunoGen’s new CEO is done assessing the company, and one of his first acts will involve swinging an ax.
The biotech $IMGN is eliminating 65 jobs, or 17% of the workforce Mark Enyedy inherited when he won the job a few months ago. And he wants to license out some “non-core” B-cell lymphoma program, the company’s second-ranked experimental drug IMGN529 and coltuximab ravtansine, as he vows to pursue a “leaner and more agile” company.
Waltham, MA-based ImmunoGen will take a $3.5 million charge on the restructuring – largely focused on technical operations and G&A posts — on the way to saving $11 million a year.
His priorities now: the mirvetuximab soravtansine Phase III pivotal trial and pushing the development of its IGN programs, IMGN779 and IMGN632.
That’s the right move, says RBC’s Simos Simeonidis. “We view this development as a positive and the right decision for IMGN, as the company is 1) focusing its efforts on the most advanced clinical asset and its most promising earlier stage compounds, and 2) is conserving its resources by trimming and rightsizing the company,” he writes today.
Enyedy is no stranger to restructuring. He completed a stint as head of corporate development at Shire under Flemming Ørnskov, who’s been tearing up the old structure he inherited and working on a substantial overhaul of the business.
ImmunoGen is a longtime player in the antibody-drug conjugate game, with a significant role in the development of Roche’s Kadcyla. That drug, approved in 2013, brought in a total of $770 million last year, up 51% year over year. ImmunoGen inked a royalty deal on the drug last year with TSSP, agreeing to turn over the next $235 million-$260 million, depending on timing, in exchange for $200 million in cash.
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