ImmunoGen leaps on deal with Millennium

ImmunoGen has entered into an agreement with Millennium Pharmaceuticalsunder which the latter will license rights to ImmunoGen's Tumor-Activated Prodrug technology for a period of five years. Investors reacted positively to the news, and ImmunoGen's share price rose 15% on the day (March 5) to $17.38.

The alliance is focusing on the use of TAP, in concert with proprietary antibodies developed by Millennium, to find novel treatments for various tumors. The TAP technology is designed to deliver cytotoxic agents directly to tumor cells with minimal harm to healthy tissue, according to ImmunoGen, which adds that each TAP product is comprised of a small molecule effector drug conjugated to a tumor-targeting monoclonal antibody. The TAPs are designed to act as prodrugs and remain nontoxic while circulating in the body, only activated once they are inside the target cell.

The terms of the agreement include an undisclosed up-front fee to ImmunoGen, potential milestone payments based on development of drugs and royalties on any eventual sales. Financial terms have not been disclosed, but analyst Jay Silverman of Robertson Stephens has raised his rating on ImmunoGen to strong buy on the strength of the deal.