Markets

Why ImmunoGen Stock Is Crushing It Today

What happened

Shares of ImmunoGen (NASDAQ: IMGN) were soaring 14.8% higher as of 11:20 a.m. EST on Tuesday. The biotech provided its third-quarter update last Friday. While its financial results were nothing to get excited about, investors cheered its progress with a late-stage clinical study evaluating mirvetuximab soravtansine in treating platinum-resistant ovarian cancer patients whose tumors express high levels of folate receptor alpha. ImmunoGen stock rallied after its Q3 update, with the momentum continuing through today.

So what

There can be a "follow the herd" mentality with investing in stocks. That can especially be the case for small-cap biotechs like ImmunoGen.

Man holding hand with image of a arrow pointing up and bar chart trending up appearing over his palm

Image source: Getty Images.

It has endured a rough stretch since announcing in March that mirvetuximab failed to meet the primary endpoint in its Forward I phase 3 study in treating ovarian cancer. But the company's update on Friday that it expects to soon enroll the first patient in another late-stage study for the drug -- one that CEO Mark Enyedy said could increase the chances of a positive outcome -- is certainly good news for the beleaguered biotech.

Investors responded to Enyedy's optimistic outlook with a spark of hope that mirvetuximab still has a shot at success. And it seems that this spark has become a flame with even more investors scooping up shares, with renewed optimism about the biotech's prospects.

Now what

It's still way too early to know how mirvetuximab will actually fare in the current late-stage study targeting ovarian cancer. Buying ImmunoGen stock at this point is very risky and something that only aggressive investors will even want to consider.

10 stocks we like better than ImmunoGen
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ImmunoGen wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 1, 2019

 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

IMGN

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More