ImmunoGen, Inc. (IMGN)
Goldman Sachs 34th Annual Global Healthcare Conference Call
June 13, 2013 12:20 p.m. ET
Gregory Perry - Executive Vice President and Chief Financial Officer
Navdeep Singh - Goldman Sachs
Navdeep Singh - Goldman Sachs
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So with that, it's my pleasure to introduce Greg from ImmunoGen.
Thank you, Navdeep. I would like to just start by thanking Navdeep and Goldman Sachs for giving this opportunity to talk to you about ImmunoGen. Just as a quick reminder, there are certainly risks associated with investing in ImmunoGen. I will be making a series of forward-looking statements, and I would encourage each of you to read more about the risks associated with investing in ImmunoGen as we have disclosed more fully in our Form 10-K.
This is a very exciting time for ImmunoGen. If you think about what's happened in this past calendar year with the approval of Kadcyla, it is now commercial and selling in the U.S. This is an incredibly important event for patients, but also certainly for ImmunoGen employees and ImmunoGen shareholders. Tremendous validation of our TAP technology and ADC approach, and certainly a potential for significant economics in the form of royalties going forward.
In addition to that, what management has been spending most of its time on for the past three years is aggressively developing a proprietary pipeline. We have three programs in the clinic, soon to be four. They are all wholly-owned, and we think this represents a significant opportunity for value creation. In terms of the company itself, we are in a good financial position. Most recent financial disclosures were, we had cash of $206 million, we have no debt, and we are partnered with some of the leaders in the field of oncology, and I will talk about that in a bit.
First, I will talk about Kadcyla. Kadcyla employs ImmunoGen's proprietary TAP technology, and it's an ADC, which means it's an antibody that is linked to a highly potent cytotoxic agent. In this case here, the antibody is Genetech's Herceptin or trastuzumab antibody. It accomplished a number of firsts with its approval in the U.S. in February first, it's a first ADC approved for such a prevalent indication. In addition to that, it is a solid tumor and it's the only ADC to gain full approval in a large, randomized study.
As I mentioned, this is really a tremendous event for patients. We will talk a little bit about the efficacy and safety profile of it in a moment, but certainly for ImmunoGen's shareholders, this represents a great validation of our approach and our TAP technology and also a potential for a cash stream going forward with this royalty. And for Roche, this has turned out to be a tremendous product for them, and we believe they have positioned it to replace Herceptin, and it really epitomizes the concept of personalized medicine as we are targeting cancer cells that express a specific antigen.
So, commercialization has begun for Kadcyla. The label was pretty much as expected. Patients no longer responsive to Herceptin plus chemo, on the right hand side in the table you can see a recent publication from Roche that talked about the number of patients in the U.S., second line and later with some 14,250 and some first line about 8,000 patients. So, a very significant market. Again, Kadcyla really demonstrated the promise of Immunogen's TAP technology and that is to be more efficacious than standard of care, but with an improved side effect profile, so more tolerable, and I think that that’s really been one of the dramatic outcomes from the study and then in the approval.
Looking at the registration program and development program for Kadcyla, certainly we expect to see approvals expanding rapidly geographically. We are anticipating an approval in Europe later this year and Japan next year, and there is certainly even potential for more indication approvals. We see it being used longer in the metastatic setting given its performance, and I think really the price speaks to the value that’s perceived in Kadcyla. It was priced at some $9800 per months as compared to Herceptin at $4500 per month.