Summary
- Due to market unpopularity, turnaround stocks often trade at deep bargains. As such, turnaround equities epitomize fruits in the promised land of mega profits.
- Amid the failure of mirvetuximab in the FORWARD 1 trial, ImmunoGen shares were decimated. Nonetheless, there are more than meets the eyes regarding the trial data.
- In recognizing the subpopulation response, Immunogen launched a bold turnaround strategy. Specifically, the company "doubled down" on mirvetuximab development and implemented extreme cost reduction.
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If you begin with a prayer, you can think more clearly and make fewer mistakes. - Sir John Templeton
I've always enjoyed a comeback story, be it Rocky Balboa or a "beaten down but not out" stock. In bioscience investment, when a depressed stock makes a successful comeback, the profits are phenomenal. As a testament to its profits, Peter Lynch often attributed the power of turnaround equities to his ultra performing portfolio. As such, it makes my research into this wild and fertile field quite rewarding and satisfying. As a highly promising turnaround prospect, Immunogen (IMGN) sparked my interest due to its convoluted yet positive data. For this data analysis, you have to do some digging to get to the golden nugget.
That being said, the latest tale of ImmunoGen commenced with the lead drug (mirvetuximab) that recently failed in its Phase 3 trial for ovarian cancer. Be that as it may, the subpopulation analysis by precision medicine revealed strong efficacy in patients having high folate alpha expression. Armed with intelligence on cancer genetics, Immunogen is diverting nearly all resources toward that front. And, I believe that their bold strategy will pay off handsomely. In this research, I'll present a fundamental analysis of Immunogen and provide my expectation of its turnaround development.
Figure 1: ImmunoGen chart (Source: StockCharts)
