Sunday, March 15, 2015

Biotech Investing: Upcoming trade catalyst Immunomedics (IMMU)

Immunomedics (IMMU) is a good stock to consider going into the 2nd quarter.  Results from a Phase 3 trial of Epratuzumab in Lupus with partner UCB is expected during the quarter.  Lupus is a very hard condition to treat highlighted by only one recently approved drug in that last 58 years, Benlysta. Benlysta is marketed by Glaxo and is considered only marginal in the treatment of lupus which opens the door for another new, effective treatment.

Terms of the agreement with UCB provide over $400 million in regulatory and specified product sales milestones as well as product royalties ranging from mid-teen to mid-twenty percentage of aggregate annual net sales during the product royalty term.  If the trial results are positive, it's going to be very lucrative for Immunomedics.

The company also has a product in phase 3 trials for pancreatic cancer which is another difficult to treat condition.  They expect the trial to fully enroll in this year with results in 2016.

I'm going to hold Immunomedics through the lupus results and continue to hold if the results are positive with the additional pancreatic readout in 2016.

Hope everyone has a great trading week and best of luck!

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