) amended its multi-target agreement with
Eli Lilly and Company
) initially signed in Dec 2011. As per the amendment, Lilly will
have the right to extend the three-year right-to-test period of
the agreement by up to two six-month periods. For this, Lilly
will make additional payments to ImmunoGen.
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Moreover, ImmunoGen will receive an additional exercise fee of $2
million for the license agreement retroactively. Lilly will also
have the right to elect one of the additional development and
commercialization licenses taken under the multi-target agreement
without any exercise fee.
As per the initial agreement, Lilly had the rights to take
exclusive options to individual targets selected by Lilly for
specified option periods under certain restrictions. Lilly can
also test ImmunoGen's maytansinoid TAP technology with Lilly's
antibodies directed to the optioned targets under a right-to-test
Moreover, Lilly can utilize ImmunoGen's maytansinoid TAP
technology for the development and commercialization of a certain
number of individual targets. As per the initial agreement, Lilly
did not have the right to extend the right-to-test period and
ImmunoGen was not eligible to receive any exercise fee for the
first development and commercialization license taken thereunder.
ImmunoGen has already received a $20 million upfront payment from
Lilly for the execution of the right-to-test agreement. We note
that the first development and commercialization license was
taken on Aug 2013, when Lilly took its first exclusive license to
a single target from ImmunoGen.
We note that ImmunoGen has several licensing agreements with big
companies. Last month, the company entered into the third
licensing deal with
) under their 2010 agreement. As per the terms of the deal,
Novartis will gain the exclusive right to use ImmunoGen's
antibody-drug conjugate (ADC) technology to develop anticancer
candidates to an undisclosed target. We are encouraged by the
company's association with big companies.
ImmunoGen presently carries a Zacks Rank #2 (Buy). Some other
stocks worth considering include Zacks Rank #1 (Strong Buy)